New-York tribune., 1908-02-13
BANKS and LOAN LIMIT.
Controller Ridgely ControUerts
Statement That Lazo Is Violated.

Washington Feb NV. B. Ridgely. Controller
Of the Currency to-day made public his reply to
the criticism of his bureau made by John NJ comm,
formerly DeplIty Controller of the Currency. as
published in New York newspaper last sunday
morning Mr.. Coffin charges says Mr. RidSeiy'
that Sections 500 and sos of the Revised statutes
of the United States daily violated by every
large national bana and makes the statement that
stock gambling could be suppressed, or at least
50 per of it obliterated, by strict enforcement
of the above named sections Mr.. RidSely re-
views Mr. Coffins connection with the Beaver Ma
tiona1 Bank. of New York. as its first president
and states that result of violations OF the law
the bank is in voluntary liquidation MI
Rdgey goes to say: Not only the charges
but the statements made by Mr.. Coffin In the art1-
Gle referred to really made without any kno"i-
edge of the facts, and intentionally false and
untrue Section $500 is the section of the bank act
which prohibits any national bank from loaning
an amount equal to than one-tenth of the
capital stock of such association actuay paiu anu
untmpaired and one-te1th of its unimpaired sur
plus fund provided. however that the total OF suc
liabilities shall in event exceed 80 per cent OF
the capital of the association 10 any person.
associa ton, company. corporation or nTnl- WHAT
ever NAV have been the fact in regard to the en-
forcement of this provision at the time when Mr.
Coffin was Deputy Controller of the Currency and
in a large degree responsible for its enforcement
or non-enforcement, since the passage OF the
amendment to this act June 23 1906 a most
vigorous and determined effort has been made by
me- as Controller of the Currency. TO enforce this
section of the bank 1t is true that in former
wears it was a very common practice for sonne New
York banks and other banks in the country TO
make loans in excess of the 10 per cent limit but
owing TO the steps taken by the Controllers Office
in the last years enforce this section such
violations of the law nov very infreQuent-
The Controller quotes from the reports of
tonal bank examiners in New York. tending
show that violations of Section $500 in regard to
excessive loans have been practically eliminated
from New York banking. and then says; In
gard to the violation of Section sos prohibiting
the over-certication of checks. Mr.. Cofhn's state
ments are equally false or based wrong infor-
nation. 1 am convinced from the examina tions
have made and the explanations and assurances
given me by many bankers of the highest charac-
ter and standing that Illegal CONGRATULATIONS of
checks are extremely When they are dis
covered, as in Il case. the facts reported
to the Department of Justice, and the offenders
are indicted and brought trial. The sections OF
the law Mr.. Coffin complains daily violated
are, as a matter of fact strictly enforced the
same as all the rest of the law is enforced-quietly
and matter of duty. without any fuss pa
rade and regardless of the letters of Mr.. Coffin
any other sensation monger. The proposition that
the officers of the leading banks of New York City
are foolhardy daily to violate the law and
render themselves liable to imprisonment GRIM
inals, would be the if the law vio-
lated is too absurd for serious belief