Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-09-28
BOARDS TO GIVE AID
Murray Makes Known Plan for
Rural Bank Examinations.
DIRECTORS TO BE PRESENT
Controller of Currency Makes Ad.
dress to Bank Examiners.

~ an important conference of bank ex-
arntners of the eastern part Of the coun-
try. held today in the office of the con-
troller OF the currency, Controller Muir
ray made short address. outlining his
plans for the presence of directors of
country banks at examinations of those
banks by examiners after October 1.
The controller directed that at all ex-
amirations Of these banks in the future
the directors be convened and the exami-
nation of the assets made in their pres
ence and with their help and co-opera-
ton. Mr.. Murray said this plan was tried
a year ago, but could not he carried out
because SO many of the directors of the
banks lived away from the communities.
To change this, Mr.. Murray requested
that majority of the board of di-
rectorS of each country bank be chosen
from local stockholders, so that a
quorum of the hoard might be available
to meet with examiners at every eX-
animation. This request has been COM
piled with. and directors of country
banks are now prepared 10 meet prompt
ly with examiners. In talking to the
examiners today Mr.. Murray said
The fullest cooperation should at all
times exist between the officers and di-
rectors. the examiner and the controller S
office. and only by that full and generou
tanned. If the examiner finds any ma t.
ters subject to criticism the directors are
entitled to know Of 1t promptly SO that
they may at the time the eXamina.
ton either correct the matters then and
there or enter into an agreement with
the controller through the examiner FOL
correction of them soon as possible
This plan can only be carried out by a
meeting of the board of directors with
the examiner at the time of the exanlina.
aSE nd .IcE
every other country examiner to have
the boards Of directors meet at the time
of each examination and carry out no,
only the letter but the spirit of this plan
Other Reasons, He Says.
Another and as equally important a
reason for converting the board of direc-
tors Of country banks DIT each examination
is that l have asked the examining com
mittees of the board OF directors of each
national bank outside of the reserve cities
to make comprehensive examination of
the bank, and to file copy of their re-
port in my office at least once a year.
Many banks have boards of director.
who are not sufficiently we'll informed il
| the methods to be pursued in making
such an examination and / ask that whel
| YOU meet the directors to go over tn,
! plan of examination with them and ex
I plain TO the board how this examination
| should be made
| This will be an additional burden OF
! the examiners but the good resultin,
| from it Will far outweigh any argument:
/ against the extra work which will b,
/ caused the examiners.
/ Another point which | will ask YOU I,
/ inquire into very carefully hereafter vii
! be the undue concentration of the loan.
| of a bank in companies controlled by tn,
| banks officers or directors. l speak nov
| of any bank where such a concentration
! would ruin il if the loans are bad