Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1909-07-01
BANKS AND BANKING.

ISOLATION has been in session at the
Blue Mountain House for several days
in the past week, and, as usual, at
these conventions much was said pro
and con on the subject of banks and
banking methods in general.
There seems to be well defined
sentiment in some quarters for some
revision of the banking laws OF the
State, also better method OF bank
tax than that which now obtains.
Judging from the reports in the pa
pers, there will, at the coming session
Of the Legislature, be another attempt
made to revise the banking laws and
to bring in and require all banks OF
every character, and trust compan-
les as well, under the provision that
will require examinations and re-
ports similar to that required by the
Government for National Banks.
Mr.. J. Duke Downs, State Bank
Examiner, spoke at some length on
the question of the supervision OF
banks in general, and particularly
directed his remarks with reference
to savings banks without stock as not
being subjects of examination and re-
port such as State Banks and Nation
al Banks are. There was quite de-
cided lineup" in the last two SEES
sions of the Legislature on this very
subject, the bill resulting in defeat
each time because of the arbitrary
methods that the bill would require
in the general scheme.
1t is reported that Mr.. Downs stat
ed that on December 3lst, that twen-
ty-eight out of the thirty-four savings
banks without stock had on hand
funds amounting to $780, SOB 90,
and stated that this sum, with the
funds of the other institutions, is
twice as great as the individual de-
posts in all the National Banks of
the State
He further said, 'They should be
required to make public sworn
statement of condition along the lines
that the public can comprehend and
thus inspire confidence and remove
any question or criticism which the
lack of information brings about.
Some of our banking institutions are
criticised for not affording their pa
irons sufficient and proper security
for the amount of deposits they hold,
Others are criticised for accommodating
too large surplus and undivided pro-
fits, but fail to see where either OF
them are placed in amy better position
to refute these charges by withhold
ing "A frank statement of their actual
resources and liabilities
This seems to be aqucer statement
for reasons for supervision as indicat-
ed and pointed out by Mr.. Downs.
The Savings Bank to which Mr..
Downs refers as being criticised for
accommodating too much surplus and
undivided profits is no doubt the
Savings Bank of Baltimore, as it has
been noted in the papers recently that
several large depositors have filed
bill in equity attempting to show that
it had large amount of accumulate
ed surplus which ought to be divided.
Just how Mr.. Downs would pro-
pose to remedy this il he, as the Bank
examiner, made an examination of
this Bank, it would be little hard
to tell. In our mind the question of
bank examiner means but little or
nothing so far as the general banking
business is concerned, for there is no
bank examiner on earth that could
go into large institution and, of his
own personal knowledge, discern any
discrepancies or wrong-doings with
reference to the volumn of bushes
done, it would be aphysical impossi-
blity; he is compelled to take the
word of the officers of the Bank as to
the correctness and truthfulncss of
statements made.
And again, most Of the bank cx-
aminers hold their positions by virtue
of politics and politicians. This
alone sometimes prevents them from
doing their duty as they no doubt
sometimes see it. Their position is
at stake and this necessarily deters
their taking stringent steps in many
cases. We read of instances where
large institutions have been mulctcd
out of enormous sum of money through
defalcations and petty populations of
officers and employees. 1t is the old