The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-07
MAY LIMIT POWER
OF COMP TR0LLER
Inquiry Into Affairs OF Office
likely to Be Ordered by
Congress.
AUTHORITY IS ARBITRARY
Right of Appointment and Re
inoval in His Bureau
Absolute.

Washington, November 6.-It is not
unlikely that at the next session OF
Congress All inquiry Will DC directed
into the affairs OF The Office of Comp
troiler Of the Currency and into tnt
necessity for Legislation amending the
national banking act and overhaulng
the entire plan uf administering failed
banks and examining going financial
institutions that have u charter from
the Federal government.
The office OF the Comptroller of tho
Currency was organized by ar Indiana
man, Hugh McCuilucn, one time Sccre
tary of the treasury, and the first
Comptroller Of the Currency. He was
banker Of experience. and the mem
Ders OF his family are stll in the
banking business at Fort Wayne. The
Office is peculiar one. The tenure
O; the Comptroller of the Currency is
INc Years. while the usual term OF
Il public officer in the Federal service
Is four years. lie is not subject TO
removal except on charges or By i'm
parchment. Appointed nominally by
the Secretary OF The Treasury. and i'll
theory accountable 10 that Cabinet
officer the Comptroller OF the Cur
rency is really appointed directly b.
the President Ion the recommendation
vi the secretary OF the Treasury" and
lie exercises an authority and power
eSat Is arbitrary.
Until the second election OF Presi-
dent Cleveland the office of the Comp
troller OF the Currency had been nlled
without exception by experienced
bankers James II Eckels, OF Illi-
nois. was the tirst Comptroller of the
Currency who came 10 that office with
out experience g., a banker, He vas a
lawyer, and when appointed admitted
that lie had never read the national
banking act, which he was expected 10
administer. ana uhat he had never
even had e bank account" and yet
1t IS generally conceded that Mr.. Eek
els made one OF the best comptrollers
in the history of the office. He was u
good lawyer whose legal attachments
were not unknown TO President Cleve-
land. who. as Governor of New York,
had met Mr.. Eckels as student at
the Albany Law school.
Beginning of Panic.
In the first three months of MIR. Eek
els's administration more national
banks failed than had become insol-
Vent in all the previous History of the
Office. 1t was the beginning OF the
panic OF 1898. Ii was serious trial
7or the new admins ira tor. but he came
through IL with a good record. Presi-
dent Cleveland explained that he had
selected lawyer for the office because
the questions arising in the Office were
mainly of a legal character. and not
questions relating TO national banking.
The President felt that a good law
yer was needed in the office. Since
Mr.. Eckels retired two OF his success
sors have been lawyers and ono Il
banker without any legal experience.
The present comptroller, Lawrence ..
Murray. is a lawyer and has had q
banking experience.
The Comptroller OF the Currency is
the head OF one government bureau
who may make hisNanpoiutments and
removals from office regardless OF the
civil service law. National bank ex.
aminers are not within the classified
service. Receivers of failed banks and
their assistants and the legal counsel
are all appointed by the comptrolle.
OF the Currency without any limitation
as TO his discretion in the matter The
law fixes the compensation of bank