Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-11-20
COST MORE TO scRUTlNlZE GOV.
ERNMENr CONTROLLED
INSTITUTIONS.
TAXPAYERS COMPELLED TO
PAY FOR STATE SUPERVISION
National Banks Reimburse Government
by Fixed Fses-Finaneiai Institutions
Cooperating in Several Proposed
Reforms-Fee System May Be Re-
v;eoS
Especial Correspondence

Washington, Nov. 20.-The relative
cost of national and state bank exam
nations and administration has been
made a subject of study by Comptroller
OF the Currency Lawrence Q. Murray
who presents some interesting results
of investigations made in forty-ene
states, all of which have banking de-
partn,ents. The comparison is doubly
interesting, aside from the actual ts-
ures Of cost, because the expense OF
examination of state banks is borne
wholly by the taxpayers while national
banks cost the government nothing for
examination, the most being betrayed
by the banks.
The cost of state bank supervision
in the forty-one states aggregated
S1,00S,o00. Reimbursement by the
banks by means Of fees for examina-
ton and other special assessments to
the extent of $4,000 leaves de-
fciency Of S2s6,0OO to be met ns- the
taxpayers of the states for administer
ing their banking laws. Oddly enough,
the assets OF the 12,6iS state banks.
savings banks and loan and trust COM
panies, s10,427 100000. are almost ex-
7.277 national banks in those states
s1o.ss3. o0o, 900. The cost of examina-
ton alone for the states was s.061 Tor
each $1,000 OF assets and fo- the ma
tional banks s.O47 for the same.
National job Eomunerative.
The average salary or compensation
raid examiners in the states will APP
proximate $1,000. to which travelling
expenses for each Of about $500 per
annum must be aided. National bank
examiners receive an average corn
Iensation, paid IL fees, o. S4.SoS. oil
Of which all expenses must be pa:d.
These expenses average about si,3oo
each, thus leaving the net compensa-
ton Of the national examiner about
$500 greater than that OF his brother
in the state field. State banks we're ex
amined at an average cost of S31.Gs
and national banks at an average COST
Of s41.10: but the average amount OF
assets handled by national bank eX-
aminer is about double the average
for each state bank exc miner.
May Rsviss Fec Scale.
AS the national banking act prob
ably will be revised before long. these
figures may prove useful. National
hank examiners are now paid wholly
hy fees and the treas-ry department
is DESTROYS. that the compensation
should be fixed by lax. The fees are
scaled on basis Of capitalization
which Is very unfair as many banks
with small capital do large business.
recurring the time OF the examiner Tor
several days, while banks with large:
capital do much less business.
Comptroller Murray aireody has
heard from twenty'-tfree state suse--
visors OF banking volunteering tae'r
cooperation Ia his recent request 20
assist in eliminating the bad habit OF
some banks. in failing 10 send along
promptly money collected by them for
other banks The replies Invariably IN
.i.ate approval OF the idea and many
suggest an Interchange Of lists Wnere-
BY account can be kept Of national ana
st1te delinquerts. Banli Commissioner
Arthur p. Chaplin Of Massachusetts IN
forms the compt-olled that there are
no state banks in Massachusetts pul
that he has called the attention OF the
examiners to the matter. altho ne
dcuhts I. the trust com pantos nave
been renl:ss b, means of this p'ai'
the government will learn OF any Ge-
reelection On the Part of national banks
thru The courtesy OF the state ex-
eminerS.