The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-04
I'm LOCAL FINANCIAL CIRCLES
By I. A. FLEMING.

of cities with special investigators, CALI
ing the Chicago examiner at a salary
of 1900 a year. The Chicago salary "
$1,000 with expenses, etc, and there
are several applicants among the Comp
troller's examiners for the fat position.
New York, Chicago, ST. Louis, Kan
sas City, Minneapolis, st. Paul, ST.
Joseph. Los Angeles, San Francisco.
City, Nashville. and Cleveland have In
stalled clearing house examiners
A year ago, the latest date available,
the banking interests in the United
States, State and national was ac-
credited with a banking power of So
1854, 1863. l46. Something more than 50 per
cent OF this vast aggregation was held
In central reserve and reserve city
banks; % per cent was held in the CEN
trail reserve cities, New York, Chicago,
and st. Louis. The total Individual de-
posits subject to call were placed at
VISIT 100000. Loans and discounts In
round figures were practically $l0,000,-
000,0O0 half of which was loaned by
banks in reserve cities.
Because of the fact that such a large
percentage OF the cash of the nation
Is under the control of reserve city in
situations, Mr.. Murray Is anxious that
this money should have the double pro-
lection of the local clearing house ex-
aminer, national examiners, and State
examiners TO the end that the banking
IulcTcSlS may ne Tree from COMMISSIONS
or disreputable practices, favoritism,
etc.
He further holds that in cities where
the expense of a special examiner would
be too great the clearing house COM
mittee should receive a copy of the re-
ports Of the national bank examiner
for their ediication and information. An
examiner might also, for a compensa-
ton in reason, examine State banks and
trust companies and report to the
clearing house committee.
Special examinations are not obi
gatory, but are officially suggested and
ought to be arguments in favor of their
own existence, in the assurance that
can not continue; that the hidden things
will be made plain and safety of de-
posits and investments assured.
The Comptroller has assumed that re-
tections of application of State charters
to applicants are for reason. When the
rejected promoters turn for the national
charter, as they generally do, they find
the office we'll posted on the causes Of
local rejection and, If well founded, the
national charter is also refused.
In every examination of a bank the
officers and directors of a bank are re-
that to the best of their belief and
knowledge every bit of paper in the
bank bears genuine signatures and in
dOrsements; that notes and bills are
SOOu ana COIltttdulC, WIFI GACSpAlOusy
etc.
Since the Comptroller has reconsid-
cred his decision to retire from the serv-
ice he has shown very plainly that he
is going to be Comptroller, the head OF
his department, and more exacting IN
his enforcement of restrictions than ever
before. Banking crooks would better
beware.
When a bank is found to be in haz-
ardous condition, three alternatives are
available for immediate consideration
and action. Rehabilitation with the
same official staff; new blood and
changed management: and as denier
resort, voluntary liquidation. It's sim
pie enough.
Exit the professional promoter. He is
barred. Also the let out for cause; tney
also are not to be forgotten
In a word, If you want to get by the
Comptroller of the Currency you must
have a record that will stand the Tight
of reason"
And yet il is possible that some in
teresting cases may develop under the
enforcement of the Murray code OF
banking ethics.