The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-09-11
Examiners Think that National
Banks Should Supply a Daily
Statement to the U. S.
Comptroller.
NATIONAL BANK ACT
SHOULD BE AMENDED
It Is Probable that the Secre-
tary of the Treasury Will
Ask for Legislation at Next
Congress.

ASK TOR Legislation at Next
Congress.
eY JONATHAN WINFIELD.
Washington. Sept. 10.-Although q
uniform system Of bookkeeping in the
national banks in the United States
would be ideal. according to the fede-
raj bank examiners, q uniform daily
statement or general balance book,
the form to be prescribed by the comp
troller Of the currency. would be more
desirable and practicable at the
present time. However. it is consid-
cred likely that q uniform system of
bookkeeping 10 sure to come some
time In the future.
Many of the bank examiners are Of
the opinion that II the comptroller
would call the attention Of the banks
to the necessity for q uniform daily
statement or Q general balance book,
that nearly all banks would adopt It.
These men contend that the national
bank act should be amended 20 as to
provide that every national bank asso-
citation shall keep . book of such form
as shall be prescribed by the comp
troller and which shall show the
statement Of the resources and Mabil-
tiles Of the bank at the close Of each
days business. This book would then
become an authentic record of re-
sources and liabilities Of the bank It
10 explained that suitable penalties
should be provided for any falsifca-
ton Of this record in order that there
may be no doubt a. to its authenticity.
Z le important. >
In this connection II 10 considered
important that the report Of the con-
ditions Of banks to the comptroller be
correctly made and that the examin-
ers verify the correctness of such re-
ports. It is considered likely that
the secretary Of the treasury, to whom
the matter has been referred. will
ask congress next year for such legis.
lation.
At present, to determine the condi.
tions Of banks, examiners are requir.
ed to compare the banks copy of its
last report Of conditions to the comp.
troller with its books at the same
date. The examiners have no hest.
fancy in admitting that their work in
this particular is very superficial. In
many cases the copies are incomplete
made with pencil and are otherwise
unsatisfactory.
It has been brought to the secre.
tary's attention that the banks should
be required to make their reports in
duplicate, and that when duplicates
are received by the comptroller they
should be carefully compared and the
duplicate forwarded to the examiner
in whose district the bank is located
The examiner should not only com
pare the last report of the banks
condition but all reports sent to him
After he has made his comparisons
he should turn 1t over to the bank fol
its fle. This the examiners say, would
cause little extra work for the bank
the comptroller's once and also fol
the examiners, but 1t soon would dem
onstrate its value and necessity.
Their Tasks Are Hard.
The work Of a United States banl
examiner. of whom there are about
TWENTY-FIVE. is not only laborious but
tedious because of its exactions and
confinement. It - Of first importance
that the examiner obtain q correct
statement Of the resources and liabil
tiles Of the bank under examination
At present this ID more or less dim
cult. and will remain 20 unless the
remedies suggested by the examiner
are offered.
In examining . banks accounts, the
examiners differ ~ to the best time
to do such work. A majority Of them
argue that the most satisfactory time
for the examination 10 at the close oi
the banks day. while others contend
the opening hour or the middle of the
day are more suitable. Those who
favor the closing hour for their exam
Iination declare that this time 10 idea
for their work. It 10 pointed out tina,
the examiner who steps into q banl
at the close Of the day 10 on hand t(
Iobserve its cash settlement.
When . bank 10 In . weak and de
lclining condition the examiners con
tend that 1t should have frequent and
Thorough examinations: that all mat
ters subject to criticism and sugges
|tions looking to Improvement Of thu
institution should be discussed Will
the onlcers. and that they BE- admon
lished to all work together for an i'm