The Washington times., 1911-10-01

Bankers Association and the Clearing
House Association find common
ground upon which they can agree In
aid of the installation Of a private bank
examiner In the Capital. In these latter
days the bank examiner as a separate
officer from the expert OF the Comp
troller of the Currency's office, has
come to be considered a necessity. Any
thing that hurts one bank in COM
munity makes 1t unpleasant to all fiscal
institutions therein.
The special bank examiner Is the evo-
luton of necessity. No matter how
strong one bank may be, let the voice
of suspicion be raised against any of
it's associates, and some nervous deposit
tors in the strong institution will with
draw funds.
This Is more likely to result today
than ever before. In times past it was
necessary to put money in the banks
for safekeeping. in to safety vaults, else
into the holes In the ground or other
hiding places. In all these save in the
safety deposit boxes, thieves could break
through and steal.
Today the nervous ones will find the
United States ready and willing to ac-
cept their cash, and pay interest on it,
/ with the assurance and guarantee of
the Government itself back of the de-
posits in the postal savings system.
Every bank failure will cause in
creasing deposits in this system, and
decreasing deposits in the banks of the
country
For this reason, as well as the gen.
eral interest of safe and sound bank
ing the double examination system is
worth all lis costs to every bank thus
protected in the protection 1t enjoys
against possible disaster or loss as the
result of failure of a neighbor.
1t Is true that examiners have been
named by clearing house associations in
other cities. but 10 all rules, but the
Sherman antitrust law. there are ex-
ceptlOnS.
There are thirty-one banks in Wash
ington and soon there will be thirty
two. OF the existing banks but eleven
are members of the Clearing House As
sociation. Naturally these have to car
~ the surplus Of the city-to a large
extent.
Institutions outside Of the clearing
house are strong in capital and re-
sources, even though there are a num-
ber of small savings institutions, yet
the i've trust companies with their
S. ,0O0,0vJ of capital and handsome re-
serves make up in the aggregate suf-
ficient strength to balance the equation.
Between the CLEARING House Associa-
tion and its associations-the other fis-
cal institutions for which its members
clear-there should be the closest con-
nection. cooperation and understand
ing.
1t was :he Bankers Association that
took up the matter of a private bank
examiner. They have brought ii thus
far, and The Clearing House Association
ought to Meet il more than half way.
The matter has been DELAYED tool long.
1t has gone too far to be dropped. The
comptroller desires the aid Of the pri-
the people nave the right TO all pro-
lection.
Get together.
One Sherman law has been repealed
from the statutes of the United States
the free coinage of silver was a dam
geToUs measure and the crime in its
repeal has long since been forgiven, to
the satisfaction of the world. Some day
the other Sherman Law may go-when
business reaches the pit OF depression.
Dire disaster was predicted as a result
Of the downing of free silver"
Have you any idea of the amount of
gold in the United States Treasury?
Probably not Everyone has so much
confidence in the ability of the Gov
ernment to keep up specie payments
that they have not followed the story
OF the wonderful accumulation in the
treasury Of the yellow metal. Today
there is an unheard Of hoard of gold in
the vault, 81, 200. 100000. a supply never
before equaled in the treasury of any
nation.
In February, 1895, just before the re-
pudiation of free silver once and for
all, rhe stock was but S93,91s.O 600 and but
81, BAG, ,1lS Of this was back of the $780,
100 600 redemption of United States
notes fund. Russia owns but $40, co.,,
OO0 the Bank of France $685., ,000, 900, and
the Banks of England and of Germany
together have but a little over s4oo,-
OO0, 200.
Commenting on this rapid increase in
yellow boys and bullion in the Treasury
the National City Bank of New York,