The Washington times., 1910-09-10
BONDS
MURRAY TO REFORM
HIS BANK EXAMINERS
Continued from First Fage5

faT-reaCninT reform ever Instituted IN
the COTDtrOller's office It is expected
that VIXEN 4ir- Murray has finished his
inveSti cations IN the field. he will
have III his possession an immense
amount OF valuable information ABOUT
the condition of national banks which
heretofore he has been unable to eX
tract from his bank examine $
Mr. Murray's plan, as Out,iI ed today,
IS 10 so into a bank examiner s district
on the day the examiner IS expected to
make an INVESTIGATION Of the condition
OF particular bank de viii accom-
pany the examiner u the bank and
watch his methods Of procedure En-
making an examination OF the books.
he VIII Join the examiner when that
official goes before the board OF direc-
tors
In neither instance viii he make any
suggestions or supplement- the work Of
his subordinate. His idea is firss 10 de-
termine the competency OF tie eX-
amlner 70 learn the condition of the
bank and, second, to find cut why
bank director does not hOh himself
quite as fully responsible for the con
ditiOn Of the bank Of which he is an
official as ne does in his own business
affairs
In view Of the fact that the excuses
offered IN practically every case Of
failure UT the examiner we're that he
was unable TO exactly determine the
true cOnCitiOn OF the bank" said AIr.
Murray today. that che officers and
directors would not correct the con
EitiOJ1S brought TO their attention by
sons, the Comptroller proposes to 20
into each Of the various districts for
the purpose Of asceTtaiuing at first
hand w an examiner is unable 70
discOve-- I'D report the true condition
OF a baJl- In this work I viii be ac-
cOmpaEied and assisted by Oscar L
Telling, formerly a natiOnaI bank ex-
amlner, and now chief Of ne division
of reports, in the Comptroller's Office
THE comptroller desires to ascertain -
says statement sent 10 every bank
examiner from Mr.. Murray's office to-
C&yr why some examiners are capable
Of correcting, while they are in the
bank, all the conditions subject to criti-
clSm- when other examiners are either
unable or unwilling to accomplish ike
results and only report their criticisms
to the cOmptrOller's office. notwithstaud-
ing the fact that now their specific in
StTuct5OnS are TO call 70 the attention
tory or hazardous conditions with a
view TO having proper corrections made
by the board during the progress of
the examination.
Many OF the examiners state in their
reports Of examinations forwarded to
the comp trOller's office that il is a hard
ship. not only on the examiner but UPON
many Of the members Of the directory
o. county banks, to ask the various
boards to meet with the examiner dur
ing the progress or at the close Of the
examination
''The Comptroller Is of the opinion
that d board of directors. which VIII
not or cannot meet with a representa-
tive of the Government for a short
time twice each year TO go over in de-
tail the conditions which he finds and
reports TO il. is composed of members
who are not doing their duty IN any
sense OF the word, and il Is now pro-
posed 10 and out whether or not the
hardship complained of by the examf-
uers really exists or if the various
directors Of national banks do not
adequately supervise theil trust
This investigation by the Comp
troller and his chief Of the division of
reports is also an Investigation into the
methods employed by every national
hank examiner, and upon seeing them
make an examination Of several
banks and afterWard holding a meet
inS Of the directors he viii be able 10
deter rhine whom of his examining
force. If any. are inefficient.
'sThe Comptroller believes that IN
executive officer should know the diff
fcuIties encountered by the men in
the field and knows Of no more au-
theutiC way Of finding this out than
going Into the field himself for the
purpose of encOuntering in person
some Of these so-called difficulties.