The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-05-18
FORGED PAPER HUNT.
IN NATIONAL BANKS
Evidences Of Declarations Also
to Re Sought After by
the Authorities.
CHECK on EXAMINATIONS
Comptroller of the Currency
Begins Move for Closer
Supervision.

WASHINGTON. MAY i;--By direction
are about to be taken with view TO de-
termining whether forged paper or evi-
dence Of defalcation il existent in the files
Of any Of the national banks of tho United
States. Announcement TO this effect
was made day at the Office of the Comp
troller in the Treasury Department. II
was further announced that it IL tho
purpose of the Comptroller in the future
to enforce closer supervision Of nationa
banks by the banks themselves and by
tn" examiners who operate under the di-
rection Of Government authority. In
his endea vors to ascert ain whether forged
paper or evidence Of defalcation il present
in any national bank the Comptroller
will depend in the first instance on in
speetion to he made nv examining com
mittees named Ivy the banks
The Comptroller suggested that Con-
gress should grant more power to his
Office in the matter Of regulating the con-
duct of national banks He declared
present examinations To he founded on
an illogical and unsatisfactory basis
and insisted that Congress should make
bank examinations what the people Of
the country expect them TO be"
In explaining the reason for issuing
the order providing for more effective
regulation Of the conduct Of national
banks tho Comptroller explained that
national bank examiners are frequently
finding defalcations and occasionally
forged parer. The Comptr oller expressed
the opinion that If the examining COM
mittee in every national bank is active
add makes a ready searching investi-
CATION within six months every de!al-
cation in national banks will be detected
and all forged papers found"
II was said al the Office Of the Comptrol-
Ter that investigation made in the last
year disclosed that about one-third Of
the national banks did not have by laws
The banks that we're dereliCt in this
respect were asked To adopt bylaws
suitable to the Comptroller's Office. and
they have done SO. The by la ws provide.
among other thin gs. for an examining
committee. and the examining COM
mittee in every bank is now active and
making examinations at least twice a year.
II is made plain in the announcement
OF Comptroller Murray that the reports
made by the examining comittee to
the banks will be scrutinized with grea I
care. The Comptroller said;
The Comptroller will compare the
report of the examining committee with
the report of the national bank examiner
and such information as the examiner
has not discovered will he valuable for
the Comptroller and his examiners on
the other hand IL the examining COM
mittee has made a superficial examination
and has not discovered matters which
the examiners found and called to the
attention of the Comptroller the board
of directors will be promptly notified
of such facts and the directors will he
asked to either verify or disprove the
examiners findings"
Comptroller Murray pointed out that
in States like New York, where banking
legislation has received careful attention
the board Of directors of every bank
and trust company ara required To make
a careful INSPECTION of their affairs twice
a year ana submit sworn reports Ia ia.
proper authorities
When the pafuna bann ac, is taken
up for revision lay Congress. said tn.
Comptroller. i shall urge that a pro-
vision on the lines Of the New York law
be Incorporated in the national hank law.
Until there H. law on the subject | fee
that the same good result can be cached
10y the directors voluntarily cooperating
with tt" Comptroller"
According to the Comptroller many
national bank examining commit tees
do not perform their work efficiently
On this subject the Comptroller state.
Inent said IN part
On" OF the examiners states tha' III hl-