The Washington herald., 1911-11-18
Bank Supervision Analysed.

sis of the reports received from the State
bank supervisors, showing the cost o.
/ administration of the banking depart
ments Of the various States, and hal
compared II with the cost Of nationa
bank examination and administration.
The cost to the taxpayers OF the va,
rious States for supervising the bank.
operated under State charters amounts
in the aggregate to nearly $2s6, 900 an,
nually, while the supervision OF banks
! in the national system is without direct
/ cost to the taxpayers OF the country
Every expense connected with the super
vision Of national banks is paid by the
banks.
The cost OF State bank supervision IN
forty-one States of the Union, aggregates
81, ,O0S, 900. Reimbursements by the banks
| by means of fees for examination, and
other special assessments to the extent
OF $722, 200, leaves a deficiency of $2S6, 600
to be met by the taxpayers Of the States
for administering their banking laws.
In the forty-one States reporting there
were l2,64S State banks, savings banks
and loan and trust companies, with as
sets of Sl0.427, 100000, under State super
vision. For the same period there were
! 7,2T national banking associations, with
aggregate assets OF SO. .3S3, 10000.
The Comptroller recently requested the
superintendents OF the banking depart.
ments Of the different States to furnish
information showing the cost OF admin
istration Of their departments. including
the examination of State banks. A reply
was received from every State having
a banking department or an officer
charged with the supervision Of banks.
Statements received from forty-one
States show the aggregate cost Of bank
supervision for these States to be
81, ,0OS, ,374 for the last fiscal year. The
number OF banks under State supervision.
excluding all private banks, was 12,64S
mately S1O.4 900 900. The number of ex-
aminations of State banks made during
the fiscal year numbered 22,O01. The cost
OF examinations alone, for the States in
question, was S697, 800, or 81 cents for
each $1,000 Of assets. For the same pc
Rod there were 7,27 national banks in op-
Grafton, with assets aggregating S10SSS,
10000, the cost Of examination of which
was $492, ,269, or AZ cents per 5000 of as
sets Examiners in the States from which
reports have been received, number 224.
The average salary or compensation paid
examiners in these States will approx
mate s., 300 exclusive of expenses. Trav-
cling expenses for each examiner aver
ages about $500 per annum. The average
compensation for each national bank ex-
aminer, paid in fees, is $4,356 per annum,
out of which all his expenses such as
travelling, hotels, clerical hire, &C., must
be paid.
From the data obtained, 1t appears that
during the fiscal year, 22,001 examinations
Of State banks were made at a cost OF
$31.69 for each examination. The aver
cost of examination of each nation
al hnking association is $l.I0, but
tn eamount of assets handled by a ma
tional bank examiner. is about double the
average for each State bank examiner.
National Bank Fails.
The Comptroller of the Currency re-
ceived word yesterday of the failure of
the Washington National Bank of Wash
ington, N. ]. Examiner Richard Good
hart was in charge of the institution tenn
porarily until the arrival of Milton c.
Elliott who has been appointed receiver.
The bank had a capitalization of $4,000
Its resources on September l were ap-
proximately 100000. Comptroller Murray
refuses to divulge the reason for the in
snlvency, preferring to await the report
OF the receiver.
Plan Bank Clerks Banquet.
At meeting of the committee on ar
rangements for the annual dinner of
the Washington Chapter, American In
stitute of Banking, in the chapter rooms
1914 F street, last night, February 10
was selected as the date for the af-
fair, (which will be given at the Raj
eigh Hotel.
The following chairmen of subcomnit-
tees were appointed: Seating, c. C..
Ecklofr; music w. H. Childs, and print
ing, A. S. Carter.
Refuses Merchants Request.
The Capital Traction Company yester-
day refused the request Of committee
OF the Retail Merchants Association of
the Chamber of Commerce that the COM
pany permit the placarding OF their cars
with "early shopping" signs between now
and Christmas. The refusal came after
the Washington Railway and Electric
Company had granted the request of the
subcommittee, composed of A. d. Prince
and NJ. A. Leese. Mr.. CARL, general
manager OF the company, stated that his
company desired to limit the advertising
on the fronts of its cars to baseball and
football games.
VIII Redeem Bonds.
Postmaster General Hitchcock. as
chairman OF the board of trustees OF the
postal savings system, yesterday authoE-
lied the statement that postal savings
bonds offered for sale by persons COM
PEELED to relinquish their investment will
be purchased by the government at par.
The Postmaster General stated that no
depositor would endanger his principal
by exchanging certificates Of deposit for
postal savings bonds. Under the postal
savings act theE board OF trustees is
authorized to Withdraw at any time
30 per cent Of all postal savings funds
on deposit in banks and post-offices for
investment In bonds or other securities
Of the United States It is under this
authority that postal savings bonds win
be purchased from the holders.
New .Provident omeers.
New officers and directors were elected
at a special meeting Of the stockholders
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