The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-09-03

Comptroller Lawrence D. Murray re-
Gently issued another order to his exam
liners, in line with previous efforts for the
betterment Of the service and the trend
toward making bank directors realize
that they are responsible factors IN the
conduct of a fiscal institution and not
mere igureheads to hold honorary posi-
lions, draw down the banks casi on
loans, and neglect to care for the safety
OF funds intrusted to their keeping.
The bank examiners are now conf
PEELED to go on record as thinking. studi-
Gus individuals. who, having made an
examination. counted the cash, looked
over the collateral, and otherwise salts
fled themselves as to conditions, are
willing 20 back their opinions with plain
statements to the effect that a bank Is
solvent; that its bylaws are satisfac-
tory and enforce that the management
fs safe; that the work of examination
was speedy, unincumbered, and satis-
factory-or the reverse
IL he cannot give a clean, satisfactory
bill Of health, without mental reserve
ton, then he LIS authorized to advise the
directors Of the institution in question
that certain things are so-and-so, that
until such-and-such things are reDledied
he will not issue the certificate Of good
condition.
In a linotype. Mr.. Murray is making
the examiners do the work.
Moreover, the Comptroller has moth
ing but satisfaction as a reward for the
effort to place the burden-to make real
examiners of the force that has hereto
fore been satisfied to delve deeply, per-
haps, but to put the cDus. when there
was an onus, on the broad shoulders Of
Mr.. Murray himself.
The Comptroller may or may not have
the right under the national banking
act to do some things that he has done,
is doing, and probably will do, but so
long as his efforts are in the direction of
making bankers realize that they are the
guardians of a sacred trust and ex-
aminers that II is their duty to be
real monitors he will have the support
of the people and the Department.
What Is more, he will make the ma
tional banks of the country safe In
times of stress II the examiners will
bat stand by him and see that moth
ing in the way of law violations &C.
cur in times Of prosperity or steadi-
ness.
Some authority has stated that prac-
tically no banks have failed where they
have obeyed the law of not lending
more than 10 per cent of their capital to
any one borrower This is one law
that ought to be enforced to the let
ter. A blue law, perchance, but a
safety brake, a steel coach. for the
banks that obey II.
The Citizens Savings Bank will Join
the ranks of the dividend payers with
the first of January. Thereafter II VIII
be a semi-annual payer.
~, can.arnhar Ok the District Rankers'
Association will meet to select an ex-
aminer for the various banks of the
CITY represented IN the association 1t
is probable that the few banks outside
Of the organization will find 1t to their
advantage at this time to come into
the fold.
Such progress has been made In ere
ating harmony and the advancement OF
the interests OF the members of the
association, that 1t is within the pos
question Of discounting notes, of han
cling accounts that do not pay Tor
clerical help, etc, may be taken up:
Washington is the only city where dis
counts are misnomers, where they 90
not exist. Here it is loans, the amount
of a note in full. the interest being
added In final payment. In other cities
the interest Is deducted when the note
is discounted" and thereby large
fund accrues to the prong OF the paEks
eacn year, pIoul VI whhSn 80 -
ingtor banks know not of. An EFFORT
will be made to have q uniform form
Of note prepared, arranging for remedy
ing this matter.
with the next dividend the CONNER
cial National Bank will in all prob
ability go on an per cent easls' pos
sibly per cent quarterly.
II should be no satisfaction to
banker to know that some borrower
who had neglected the payment OF his
had been success1ui IN ne
bank. and had also hung up an ac-
count. that might never De hquidated on
a Competitor. II the latter has resorted
TO suallness or roundabout methods TO