The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-08-04
BANK EXAMINERS
MEET At BRIGHTON
Samuel II. Ham, National Bank
Examiner, Makes the Prin-
cipal Address.

The Comptroller Of the Currency yes
terday published for distribution an ad-
dress made by Samuel n. Ham. Ma.
tional Bank Examiner for Washington
and Baltimore. before the National. State
and Clearing House Examiners 1t their
annual meeting at Brighton Beach.
Mr.. Hams address bears the title,
Working to q system In the Examine
ton OF National Banks." and a. q sort
of preface to his address,. he says: II
believe II can be stated without fear
OF contradiction that while examinations
of national banks are now conducted
upon higher plane. and with greater
thoroughness than ever before. yet there
is still room for Improvement
This being the case every examiner
should adapt himself to the system AZ
II exists, and wherever possible vary the
methods OF his examination to meet ac-
tusl conditions as found. All examiners
realize that so far as defaications are
concerned. the present system OF bank
examination does not offer an ABSOLUTE
protection against loss. Every examiner
should at least follow the rules and reg
ulations provided by the Comptroller's
ONCE: II a defalcation does occur he has
the consciousness OF having done all that
ne was instructed to do.
Matter OF Conscience.
When an examiner fails to follow his
instructions. he 10 to be held responsible
not only 10 the department. but to his
own conscience, which. after ALL is the
supreme test. The sensibility Of an ex-
am!ner's conscience and his own judy
ment Ia the final bar before which he
must stand or fall The ability and sue
cess Of every man depends largely upon
himself; many men cannot adapt them
selves to any system. while other men.
by application and originality. can make
vital and alive systems devised for times
and conditions which have passed.
Every examiner who desires to rise
about mediocrity should be guided by
certain rules of conduct. and no exam
liner can be success without system.
His examinations should proceed along
logical and systematic lines; the desider-
alum being a maximum of efficiency at
a minimum of time and labor. At each
examination every department should be
examined rigidly, and nothing ever omit
ted. In many Instances varying the
method Of examination means nothing
more or less than the omission TO do
some essential thing in order to save
time.
During the inspection of the minute
book. the frequency Of board meetings
shouu pe Hottus anu "'-ct.iCE nut the
board. has enacted proper by-laN-s pro-
viding for an active discount and cxam-
ming committee" rIr Ham advises.
Information relating to salaries, en-
ployes' bonds rate OF interest obtained
on loans, approval Of money borrowed.
verification Of bank balances, rotation
of ledgers, frequency OF trial balances.
balancing of pass books. and all other
matters of a general nature should be
obtained.
Extreme courtesy should always mark
the attitude OF the bank examiner toward
the directors Of the institution he is in
vestigating," Mr.. Ham declared. Here
II Is that tact can be employed to best
advantage
should Demand Correction.
BY impressing the directors with the
fact that they are more vitality interest
ed in the bank than he possibly could be.
and that bis recommendations, IL any.
are reasonable and only for the best in
teTests OF depositors and stockholders.
he can usually lead them to see things
from his point of view. and secure with
out friction or trouble. in the form Of a
letter, their promise TO meet his views
and recommendations. II the situation Is
such, however. that an impairment of
capital is imminent, or II the total
amount OF questionable assets jeopardzes
the solvency Of the bank. he should.
with a resolution of iron. insist upon the
of these conditions at once.
II the management Is not conservative.
or II lax and careless methods of &C.
counting prevail. he should not temporize,
but place the responsibility where II be-
longs and demand immediate correction
by the directors.
In order that an examiner may ap-
preach his work with strong body and
a clear mind, rest and recreation are
essential. No body of men to-day are
under such stress and strain as the ma
tional bank examiners. Upon no class
of men are such responsibilities placed.
and of no class is SO much expected by
the public. 1t Is. therefore, incumbent
upon every examiner to take needed rest
and recreation. He should give the gov
eminent the best that is in him: he
should have high ideals, knowing that
in doing his full duty he has his own
reward. He should be encouraged by the
that in some measure he
is protecting the weak and the innocent;
that in an age dominated largely by
conceptions OF life, he often
brings to naught the Vaccinations Of
designing men. and that by absolute 10y
atty to his chief he is helping the ad-
vancement and Improvement Of the ma
tional banking system, which has done
more 10 encourage industry and COM
merce than any other system since the
republic was founded.