The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1911-06-19

CHICAGO, June l9.-Whcu the banks
OF Chicago adopted a plan of clear.
/ ing house examinations as it has
proved, they took a step which has
become momeutous to banking in the
/ United States. The three central re.
serve cities have now followed the eX-
ample Of Chicago, st, Louis doing so
promptly. New York recently, with
the endorsement of Comptroller of the
Currency O. Murray Eleven other
cities reserve centers, have done so
and Comptroller Murray has recon-
mendcd that the other 30 reserve
cities take the plan under considera-
ton
1t now seems assured that banking
in the United States has made a
great step forward. one taken yolun-
tanly without any public discussion
or political turmoil and without need
tor any coercion. No banker now
doubts that the plan viii rapidly be
adopted the country over as safe
guard to the banks, their depositors,
the public and the industries and com
merce dependent upon them. The
banking power of the central reserve
cities, according to the latest com
pletc figures for all banks, is % per
cent of the total banking power or
near Sj,G 100000, while the reserve
city banks and central reserve banks
represent banking power of 80 per
cent of the total or $1,000, 100000. I'm
other words more than one half of
the total banking power Of the coun.
try would be subjected to this addi-
tional safeguard if the efforts Of Mr.,
Murray for the general adoption OF
the plan prove successful. The eleven
reserve cities which already have
slipped into line are Kansas City. Min
neapolis, St Paul, St Joseph. Los An
eeles, San Francisco, Milwaukee, Phi
adelpha. Oklahoma City. Nashville
and Cleveland.
The beginnings Of this step run back
several years. but the Walsh crash
caused the plan TO he adopted. Con
s.rvative bankers who felt their re-
sponsibilities to the public as well as
to their shareholders had discussed
the possibilities Of various plans by
which they could forsee and prevent
impending disaster 10 competitive
banks. In Chicago the clearing house
association held many discussions. for
in the west particularly theorists We're
proposing various ways to make banks
and their patrons secure. One of the
members had quietly insisted that the
most direct path to safety and public
confidence lay in a system OF eXami-
nations of each bank by an examiner
who represented all of the clearing
house banks. w r. Fenton, vice pres
ident of the National Bank Of the Re
public. without much announcement,
argued for this plan consistently and
persistently.
When the Walsh crash came, with
its attendant stress it became neces-
sary to take some action TO improve
days of discussion
abruptly were ended. At the annual
meeting of the clearing house in Jan /
uary. 1906, Mr.. Fenton stated that he
had come to the meeting prepared to
offer a resolution for the appointment
OF a clearing house examiner and in |
his remarks gave as one of the rea- ,
sons why there should be such an eX- /
aminer the fact that within ten years /
two of the largest national banks III |
Chicago had been closed between Sat |
urday and Monday The members Of
the association he said had right (
to know whether any bank was in !
such a condition as to peopardize the
financial interests 70 Chicago.
The resolution passed and on May
II, 1906. a clearing house examiner
was appointed. During the panic Of
1907 the office a The clearing house
examiner was made available. the ma
chnery was already in o'eration 10
carry out the issuance of clearing
house emergency currency and IN
December, 1907. in a letter TO the
referring TO the clearing
house currency issued during the pan
c and the discussion that followed on
the question Of legalizing this cur
rency. Mr.. Fenton said:
"One of the chief advantages of this