The Washington times., 1911-06-18
WILL HAVE SPECIAL EXAMINER
By /. A. FLEMING. '


Washington will have a special bank
examiner in the near future, operating
under the direction of the District
Bankers Association, placing Washing-
ton in the class with other reserve cities
that have adopted this additional safe
guard, thereby removing from the Fed
eral city the probability Of bank tali-
ures, even in times of financial stress,
and assuring safety to depositors ana
shareholders in banking institutions.
incidentally the Comptroller OF the
Currency will be satisfied with the ad-'
ditional safeguard, and The Times also,
as 1t was one of the first to urge the
closer relationship Between the various
fiscal institutions and the bankers Of
the city, and the appointment OF an ex-
aminer.
| The subcommittee to whom was as
signed the task of finding the way has
practically accomplished its work. Rep
resenting trust companies, savings, and
national banks, they went about 1t IN
earnest, determined to do something.
An amendment to the constitution ot
the District Bankers Association has
been agreed upon and upon adoption
will become part thereof, and the adop-
ton, possibly with few changes, is as
| sured.
1t is provided in the amendment that
bank examiner will be chosen, whose
duties It shall be to examine the banks
of Washington, to make a complete and
extended report on the condition OF the
institution examined. with recommenda-
tions, criticisms, and other notations
that he may see fit to make.
- orb he mo lo1
to the president of the bank examined,
and also a copy under seal to each of
the directors thereof, who are pledged
to read and digest the contents.
1t will therefore be possible for the
directors OF a bank to know everything
that Is going On, even though some of
them have been remiss in attendance oa
called meetings and they will be in a
position where it will be impossible tC
claim that they are ignorant of exist
ing conditions.
should the examiner find cause fol
complaint over collateral or other loans
his objections will be stated in writing
and the officials to a man given notice
thereof, with whatever facts as to ex-
tension of credit beyond legitimate
bounds, etc, that he may have in his
possession.
A COPY of all communications, reports
| ETC. will be filed away in the archives
| of the association, sealed and bic
to none. In the event OF an Institute
| needing assistance at any time, records
in relation to its affairs will then bt
| open to committee, and the records
and condition at the time OF asking aid
will be important factors in deciding IN,
| policy to be pursued. go
The report OF the committee will be
| made 20 the Bankers Association on
the night of the 2lst instant, and vii
| then be up for discussion. or course, II
is rather early to be specializing on the
probable incumbent OF the newly ere
ated position. but it is not improbable
that the present District bank examiner
| owen T Reeves, may secure the ap
| nointment He probably knows mon-
! about the banks in the District than
| any other member of the Comptroller
| force and will be a formidable candi-
| date.
| The matter of selecting the District
| Bankers Association as the medium foI
the establishment of the reform instead
of the Clearing House Association, as
customary in other cities, Is easily ex-
plained. There are in the Distrirt f1Ve
, | trust companies and fifteen savings
banks that are not members OF the
clearing house; there are eleven nation
al banks that are. Many of the saw
ings banks have charters from states.
1
represented in the bankers association
and those that are not are more than
likely to join at once and to fall IN
| with the plan. The bankers association
is affiliated with the American Bank ers
| Association. and the latter will hold
J up the hands of the local organization
in the present creditable movement.
Now that the promises are for the
! accomplishment of so much, it is not
too much to hope for a further beneh-
cent effect from the District Bankers
northumberland strong body
; uniformed as to its strength, anC
accustomed rather to enjoy socia
gatherings than to engage in ousl'
, ness meetings.
The adoption of a uniform sche dule
Of statements to be made BY appll'
sarts for commercial credit and the
awakening of the association to the
5 enforcement of the laws against Grim
2 inals who prey on the banks or tht
District are true reforms and ShCulc
at once bring applications from every
banker in the District for member
ship, -
There is hope for the enactment q
q schedule of uniform prices for serV
ices. for which no charge is made.
There IL food for thought in the sta
tistics oi the banks and trust comIpa