Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-07
TREASURY SHAKE-UP
National Examiners Are
Transferred to New Fields.
CLOSER CHECK ON BANKS
Able to Give Tips, Is Theory
of Treasury Officials.
FRESH FIELDS ARE DESIRED
Personal Acquaintance Not Regarded
as an Asset by Heads of Bank
ing Department.
resi- FIELDS ARE DESIRED

Twenty national bank examiners. about
one-fifth of the force employed by the
government. were transferred to new
fields today by an order from Lawrence
Q. Murray. controller OF the currency.
Following closely on the sudden call for
condition of national banks, which was
made September 2. and the announce
ment of the controller that he would In
the future personally pass upon the ap-
plications OF banks which wished to hold
reserves. the shake-up among the exam
iners is taken another indication of
the determination to enforce to the letter
the provisions OF the national bank act.
The call for condition. II is now learned.
was specially issued to meet the aser
ton that the calls had been made at such
regular intervals that bankers knew
about when TO expect them and managed
TO arrange their affairs accordingly.
The transfer of the twenty examiners
today may be the forerunner of others.
The object OF the changes. It was said at
the Treasury Department Is to throw the
examiners into fresh fields where personal
acquaintance or possibility of influence is
lacking
Done as Experiment.
In some respects Ii is an experiment.
Some bankers maintain that an examiner
on regular district acquires valuable in
formation as to the quality OF the .ba nks
assets. credit of borrowers and local con-
ditions which a strange man would lack
Others have said that the practice of
leaving an examiner in one district i'm
pairs his efficiency, because OF the per-
sonal relations he is bound to establish.
Another OF the objects OF the change Is to
test both theories.
These examiners will exchange dis
tricts. In districts where there are two
examiners they are transferred:
Frank W. Alderman. western New
York and western Pennsylvania, changes
with Edward j. Graham. northern New
York.
J. Van vranken. northern New York.
with w. j. Robinson, western Pennsyl-
yania.
John +. Zerbey. central Pennsylvania,
with VI. A. Kendall, southern Pennsy3-
vania and northern West Virginia. s<
Henry +. Brightwell. southern West
Virginia. with w. l.. Yerkes. eastern
Kentucky IL
). X Mcdonald. southern Georgia and
Florida. with J. r. Stevens. northern
Alabama: Mississippi and louisiana
j. A. II. Kerr southern California and
Nevada. with Claud Catch. Idaho and
Oregon.
Charles II. Filson northeastern Texas.
with IL. G. Reed. southeastern Oklahoma
and Arkansas.
William F. Hutt. northern Texas. with
John ID. Mossman, northern Kansas
Fred A. Hull, western Virginia and
North Carolina. with John A. Armstrong,
northern Georgia and South Carolina.
c. ID. Sample. southern Kansas with
George w. Goodell. western Nebraska
and southern Colorado.
Oppose Wholesale Changes.
Although a large percentage OF the pres
idents of the local banks are at present
out of town. the general opinion expressed
by those who were seen this afternoon By
a reporter for The Star is that II is not
advisable to make any wholesale change
in the districts of the bank examiners. 1t
was pointed out that the District has, as
rule. had excellent men to do this work,
and that personal knowledge of local
conditions was I'm some respects indis-
pensabe TO those who examine into the
affairs of banks.
One banker who did not care to be
quoted said that IL there was any desire
on the part Of a bank 10 deceive an ex-
one who was not familiar with local
conditions.
w. A. Fl. Church. president Of the Com
mercial National Bank. said: Although
thought, ! connot see at the present time
any reason for changing the bank ex-
aminers. We I'm the District have always
had good men to do this work. OF course
IL Is an easy thing 10 examine a bank, and
II an intelligent man was not familiar
with local conditions, II would probably
not take him a long time to familiarize
himself with them SUFFICIENT to do his
work we'll.
Gradual Change Beneficial.
Il believe that gradual change In
some cases would be beneficial" said
George w. White. president OF the Ma
tional Metropolitan Bank but / am op-
posed to any wholesale change. In case
there is any suspicion or other special
reason the controller has now the right
TO order a special examination, and in
that case the examiners can take all the
time they require. I believe the class Of
examiners we have had are men enough
not to let their personal acquaintance
influence their judgment in passing upon
the financial condition of a bank.
a bank examiner should be familiar
with local conditions to do his work we'll
Here and there in special cases IL might
be advisable TO change the examiners but
as a sweeping proposition l fail to see
any good reason for It."