New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-01
CLEARING HOUSE EXAMINERS
Controller of Currency Would
Let Them SunerYise Banks.

The Controller OF the Currency. IT is an
nounced in the June circular oil the Ma
tional City Bank has decided to make an
effort to induce clearing house ASSOCIATIONS
in all reserve cities TO undertake the eN-
animation Of banks under clearing house
authority. and will offer the cooperation
of his olsce in making the plan effective
The circular says:
The central reserve cities. New YORK,
Chicago. and ST Louis, are fuzzy equlppeh
for such examinations. and in addition
number of reserve cities, including Kansas
City. Minneapolis and ST. Paul 81 joseph
Los Angeles. San FRANCISCO, Mliws sh,,na
and Cleveland, have adopted the plan with
marked success.
On April IS. 1909. the latest date for which
power Of the United States call banks was
figured by the controllers office To he
So. ss4. Ss914 OF this vast total 50 per cent.
or something more than Sn,0pOnVN. was
in the central reserve anG reserve CITY
banks. More than one-fourth Of the bank
ing poNer OF the country as a whole, or
S6l5 Ooo COO was lodged in the central re
serve cities alone. New York. Chicago ana
fourth. or S,i590o.00o. was represented by
the banking strength OF the fortN-seNen
reserve cities. The total of individual de
posts subject 10 call (all banks IN 1879
was 1887 10000 OF these deposits % per
cent was held in the central reserve ana
reserve cities. some 29i.C00c00. or y per
cent Of the whole, being lodged in the
banks of the three central reserve cities
and q per cent or N.6S1 10000. in the
hanks Of the reserve cities Loans and dis
counts of all banks at that time agsre-
gated 1924 000 900. of which the central re-
serve city banks held s2.5Si ooe0l0. or .. a
50 97. o0tcJo. or 2415. per cent. making
nearly - rer cent of all loans and dis
counts in the United States held by the
central reserve and reserve c,ly naa fSS,roe
showing that one-fourth Of total resources
individual deposits and loans in the Ohited
states is centralized in forty-Seven reserve
cities there Is a strong argument Tor the
abortion Of the best method Of eXamlna-
ton and supervision which has yet been
6eveloped in the history of banking. me
plan he intends 10 suggest is as follows;
First-In cities where the charge would
not he a great burden on the banks they
should have their own examiner. selected
and paid BY the banks OF the clearing
house association
Second-Where this would he too great
burden on the banks the national bank
examiner can send to the clearing hoase
committee a carbon copy OF ms report I,
the Controller. and in case there happeneu
TO be--as is likely-state oanhs ana tru si
companies, the bank examiner SHOULD
make an independent examination or thern
and report directly TO the clearing house
For this service he would be entitled 10 a
req sonable compensation. but the expense
~ The hanks would be so light as not TO
make it a burden. OF course, it Is realized
that the Controller is without power ON
cially 10 compel banks to ADOPT eXamina-
tions under clearing house authority: but
racornizing the very excellent results
which have been obtained wherever the
nIan has been put into practice he earn
estly hopes that 1t will be seneraIy eK
tended TO all the reserve cities. where the
necessitv for pure commercial banking
the Nquidity OF assets and high reserves Is
greatest.