The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-10-24
TO KEEP TABS ON BORROWERS
SYSTEM or CREDIT CHECKING
FOR NATIONAL BANkS.

COmptrOIler OG the Currency Believes q
VIII Result In FOrestaIlinG dishonest
Borrower From National Banks
ana From Many OI the state Banks.
WAsHISOroN. Oct. %. Lawrence q.
Murray, Comptroller 81 the Currency,
has devised a system Of credit checking
for the national bank examiners which
he believes will result in forestalling
dishonest borrowers from national banks
and also from many State banks and trust
companies. The chief purpose OF the
system - to check up manufacturers OF
notes who have practically no assets
behind them and the dishonest brokers
who foat these notes. When the system
IL IN full operation the Comptroller Of
the Currency expects TO have a card
index record Of all of the heavy borrowers
in the country which will tell him almost
at a glance the extent To which any
individual or corporations paper - b.,ng
carried by the national banks of the
country.
The system was devised at recent
meeting in Washington Of a COMMITTEES
Of national bank examiners. composed
Of Frank l.. Norris. Charles A. Hanna.
Under the new system every examiner
will he instructed 10 compile and check
up the commitment OF large local and
extended borrowers in his district sum
maries Of which ars TO bs sent 10 the ONCE
Of the Comptroller Of the Currency.
IL IL recommended further that in
addition to the usual annual district
meetings Of the examiners now held IN
each Of tho eleven districts m July. the
Comptroller also requires regular annual
meetings Of the district Chairmsn. The
latter meetings will bs for the purpose
Of exchanging Information as to the
credit rating and responsibility Of bor-
rowers whose names may be- found on
paper IN more than one of the general
districts. The comptroller of the Cur
rsnCy expects when the system ~ ,sStab-
lished that II will he extremely hazardous
Tor any dishonest individual or firm TO
sock 20 borrow from nat ional banks. A
hundred or more trained men will be
keeping tabs on their borrowings and
checking the results bet w,ssn districts
The Comptroller ~ the Currency does |
not Relieve that a comprehensive plan |
which will guarantee. the assembling of |
complete credit information covering l
IN all hanks II the United |
states u practical al thus time. III" docs ,
believe that the machinery available |
ought to he put 10 work to gather such 1
credit information a. can 10 obtained
from national hanks and from Stat.
hanks and trust companies located IN
states where Their" ~ already cooperation
bet w.--n the Federal and State banking
officials. This means II course that the.
State hanks and trust companies IN New
\ ork State will he included IN the nitIonal
fank examiner, credit Information re-
turns
In collatlng the credit Information
n" personal and intimate relationship
.tween hanks and borrowers. u N an
nounC'-d. IL not to h- Interfer-d with
Ia" name II the hank where linz. Of
credit j. found u ala extended borrower
Is not 10 - disclosed hy m. examiners
IN their sJ..cial r"pnrtz the total only
u the loans being listed The C1nptroiler
emphasizes IN" tact that thes. lists will
b. h"ld hy htm m the sam" confidential
apaclty that ne holds the reports IT eN-
To carry IN the new work the committa
y hank examiners has recommended a
radical rearrangrnsnt Of the examiners
districts into which IN" country has been
tividst The oh iart - the rearrangs-
nsnt - 10 s'~i thlI-h district. which will
'rv"r vel defined commercial areas or
p1nking ,ons- In" haadpuart"-, at !
zach district ar" ~ be- loca',-t m = r"-arv.,
NV Each ~ thsAs DISTRICTS - 10 ba IA
'harg. e an examiner appoIn'@i hv th..
dated that m compiling credit informa-
in ~. examiner IA the Nsld shall re- !
port no. only - Washington. hut 80 ..lch
iist1"t headquarters. whore th..re - IN |
., GRAFTON q credit 10. accessible. 20 az
lmIners m that district
A. = result - 'hs rearranRement the
,iza II the Second district which includes
Now York CIV has been cut down by fhe ,
ran-f"- ~ scout hern NeW Jersey and beta
ware - N" Third district the headqua--
srs ~ which ar" AZ Philadelphia The
second district will now comprtS.. New
YORK CITY and STAT" and northern New ,
l.rssy II will be m charge ~ Charles \
Hanna From m" Third district Nir-
,iniI and North carolina ar" dropped
md the" two states are add"d 20 = new
ii-t-iCi which will nav" headquarters
~ Richmond and will COmprIs. besides
Virginia and North carolina south caro-
ina Georgia and Florida Southeastern
ohio and southern Indiana have been 2,
,dded 20 the sixth district 4 nsv DIS
-l'' has been rrratHi with headquarters
- New Orleans consisting 81 louisiana.
Mississippi and Alabama There are
many Other change m m" makeup of
~. Jtsfrtrts