The Washington times., 1911-07-23

A special meeting OF the D1strict
Bankers Association held July IL, has
heretofore received no publicity In
the local press. 1t was an important
session, one of free and generous ex-
preston of sentiment on the matter
of a local bank examiner; where
! every phase of a possible situation
was considered, and from which, after
much consultation, certain well
grounded rules and regulations were
! evolved and the fact developed that
every member favored the appoint
ment of an examiner.
a committee of six, with the presi-
dent an ex-officio member, will look
after the direction of the examiners
| work. This committee can not fill
vacancies nor can any member there
| of be elected Immediately at the end
| of a two-year period of service.
A splendid rule and one which pre-
vents maintenance of a clique in Of
| fee.
1t was further provided chat the
| examiner would be obligated to refrain
from entering the banking business in
the city of Washington within five years
from the termination of Lis contract
with the association. Especially COM
, mendable as the services of one know
ing as much about credits and condI-
tionS, about deposits and loans as the
examiner will know when his term of
service is ended, would be a very yalu-
able man for any fiscal institution. This
rule practically makes ii impossible for
the examiner to capitalize his local
knowledge.
When selected the examiner will be in
| the sole employ OF the association. II
was originally planned, in the cause of
economy, to employ the services of the
national bank examiner of the District,
| but sentiment was rather against this,
as the association desires 20 actually
control, and 1t could not do tl.Is with
Government examiner.
Several applications have been re-
ceived, some from minor employees of
the Treasury Department, but 1t would
not be surprising If the examiner should
be taken from some of the younger
banking officials of whom there are a
number especially competent-'f the sal
ary Is sufficient-and the position might
become practically permanent, with an
opening with a bank or the Comp
troller's office in case of retirement
Some of the more important sugges-
tinns that were adopted came from the
younger generation Of bankers, who eau
cused on the examiner proposition, not
| to question sentiment on the appoint
ment of an examiner, but 10 aid their
elders and superiOrs in hedging the eX-
aminatiOns with equity and fair dealing.
Washington has reason to be especially
proud of the young men in the banking
| business-thoughtful students, conserva-
| tives, and unquestionably among the
best in any banking fraternity.
But a bank examiner will not prevent
losses to banks II the men charged with
| the loaning of the funds become care
less and too sure Of the credit of men
OF means. The poor mans credit takes
the best kind of care of itself-the loan
sharks ALWAYS Tha 9tPh and
| make few mistakes. They never let UP.
Chicago has boasted of its excellent
bank examiner: but he was powerlesS to
check the losses that may develop as
a result of the speculative operations of
James Petit, the local manager of
great Minneapolis grain hOuse-a man
of uDimpeachable record. considered
good for any amount-bankers standing
with open-handed generosity, only too
anxious to initial notes, secured and
otherwise, as fast as presented.
|! But for the willingness of the Min
neapolis firm to aid the banks. their
losses would run into the millions, but
they will probably stand in the gap
for less than $500O00. The borrowers
resentatives of the First National and
the COntinental-Commer two of the
greatest banks in America. wisely ad-
ninistered, head the committee having
charge of the settlement.
Walter Hieston, formerly a we'll
known Washington operator and
member of the local exchange is now
in Chicago, personal representative of
the senior member of the New York
firm of Hartman & Co. He is building
up a fine business, is fast forming val
liable friendships and falling into the
Chicago quickstep of business without
losing a stride.
The activity in the securities of the
Washington Railway and Electric Com
panv Is a boon to the local market,
coming at this season of the year when
business is always depressingly slow.
Mr. King, the new president, Is to give
all his time to the property, a practical
the PROPOSITIONS that will confront him,
and capable of cutting extra expenses
with a sharp pruning knife-without
slashing in a tender spot.
The trouble with the Washington Rail-
way and Electric Company has been q
multiplicity of outlying lines. Presi-
dent King Is distinctly posted on subuT-
ban matters, and will Know how to
make them pay or at least be only mild
losers. Former president, Mr.. Norment.
Is distnctively a banker, and his real
estate and other interests require every
moment of time that he can give to
business. Capable as he is he could
not give the time necessary to the rail-
way and others were charged with ad-
rninistered duties that will now de-
volve on Mr.. King.
Brokers are talking of 30 for Gas III
the near future. 1t started that way on
FRIDAY. That 1t is worth 90 as a divi-