Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-09-01
DIRECTORS REspoNsisLE
CONDUCT OF DUsihEss
Required = Prstset pspesitsrs and
stockholders Great Efficiency Re.
suir.s Am.rs Ex.m'".r'-e'''t'e'
E.ehswsd in Selection sf Federal
Fsres.
4 rsneeial correspondence.l

have been set forth IN an illuminating
wav BY Samuel NJ. Ham, national bank
examiner Tor the cities OF Washington
and Baltimore Mr.. Ham prepared
with much care a paper dealing with
this snbjec. and read It at recent
district meeting Of bank examiners IN
Philadelphia The paper has since
been published in pamphlet form.
The central feature OF the creed OF
the comptroller. as set forth by MT.
Ham, II that the directors Of a national
bank must be heidi responsible for Its
condition.
a. oissetors RsspensibIs.
The comptroller feels says Mr.
Ham, Chat the directors OF the BANK
know, or ought to know, the anai1s
Of their bank much better than the
examiners can: ana that the directors
ought to bessheld responsible where me-
siect N, tho duties required by law mas
resulted in a loss TO depositors ana
stockholders.
AZ flrst step, Mr.. Murray set about
the promotion OF greater efficiency
among the bank examiners. he pup
licly declared that he stood read! IN.
.4.nt,,- IA dism,ss any examiner NOT
doing his fiIIl duty. Bank examiners
are no longer allowed to have any anti
iations WHICH will in any manner m
t4rfere witt, their duties as examiners.
White In the service OF the government
they can not borrow either Directly
or ind.rect,y from, any national BANK
nor can they acquire stock IN any
national bank. directly or indirectly.
nor accept ,pnblic office OF any KIND, nor
become an officer OF any corporation.
These rule have led to Independents
.,rene thesexaminers and have given
the public more confidence IN them.
Politics Esehe~sd.
Another slap has been to estanhsh
r,,les governing the manner in which
=. taonal bank examiners shall be se.
,ected in the future. Politics Is said
n be eschewed. All applicants must
INV. undergo an examina ton and then
are appoinfed only for a probationary
neriod OF SIX months. Newly appointed
Examiners are being advised that II
AZ the end OF tina, time they do not
,how ada ptability for the work. or q
certainty OF reaching the
standard required, their resignation WIZ
be requested. It Is the aim OF. the
to make selections OF oank
examiners from the officers and ems
ployes Of progressive. well-manaseo'
banks. 1t is hoped that
force made, up Of young bank OFFICERS
who are good accountants. with tact
and good Judgment, may be selected.
one important fact in reference to APP
plicants isi that applications for APP
pointment are being referred to ex-
aminers In. the field for investigation
and report. And in such reports. the
examiners are cautioned not to allow
prejudice or political con-
to enter
ce.oosration With States.
Z Another progressive reform relates
TO the sco-operation Of national bank
examiners with state bank examiners.
II has lonSsb realized that without
such cooperation many examinations
are incomplete. The fullest co-opera-
lion IL enJoined. Steps have been
taken for effective cooperation OF nat
ionill bank examiners with clearing
house examiners The conptroller has
AFFECTED such CO. operation to the full
ct extent, being in hearty accord with
the plan of the clearing houses In large
cttiea to have their own examiners.
) Instructions have been completed by
the comptfotler for the examiners-at-
large, These officers have been select
"a for appointment from among the
bAst men oS-the force and because OF
sl,eir$ known tact, judgment and ex-
perIence. Hheir principal duty IS to
make examinations Of such banks as