The Daytona daily news. [volume] (Daytona, Fla.) 1903-1926, 1913-02-11
CHANGE IS
NEEDED IN
EXAMINATION
POOR SYSTEM OF LEARNING
CONDITIONS OF THE BANKS
STRONG EFFORT BEING MADE
BY COMPTROLLER OF THE
CURRENCY TO INACCURATE
SOME CHANGES.

WASHINGTON, Feb. 11-Follow-
ing the movement among national
legislators for currency reform,
there has been tremendous efforts
made by the comptroller of curren-
cy in this administration to bring
about reforms in the manner of do
ing the country's banking business,
asl far as the limited powers of his /
office allow. During the past two /
secured by Lawrence o. Murray, /
comptroller of the currency, often /
termed the watch dog of the nation !
al banks, through a system lately |
ers to report upon conditions of ma
tional banks, from time to time. The |
idea has spread generally through |
out the country and all bank examin- !
ers have at times recommended to
Mr. Murray certain matters that have
helped to put on a higher plane the
method of examining national banks.
1t has also been of benefit to the
state bank examiners and at pres
emit, Mr.. Murray says, state bank
examining boards are reaching the
high state of efficiency already at
tanned by the national government.
This cooperation between the state
and the federal government has been
termed government control of banks
1t has resulted in better conditions
1t is stated that there is not too
much supervision, as claimed by GER
tain New York interests while tes-
tifying before the Pujo money trust
committee, but on the other hand,
not enough. 1t is pointed out that
through a well regulated and hon
est bank examination, public conf
dence in national as well as state in
stitutions has been fully restored.
In this connection National Bank
Examiner Giles NJ. Wilson, having
jurisdiction in South Carolina and
Georgia, says that the national bank
act need1 revision in several re-
spects, but in none more than to
provide for really effective examin-
alton He states that fully one
fourth of all examinations as now
conducted have weak spots in them.
perhaps even a greater percentage.
Under existing conditions, however,
he says, a national bank examiner
can accomplish many good things
and make his regular visitations OF
great value
At present national bank examin-
ers are instructed to cover the fol
lowing points in making examination
Verify the cash by actual count
making careful note of irregular
checks and cash items; list the
bills receivable to prove that the
amount called for by the general
ledger is in hand; so over these
bills again in the presence Of an of
ficer and preferably with one OF
more outside directors, to secure the
proper data on large or excessive
lines and to obtain the liability OF
officers and directors, their firms
and their companies or corporations
in which they are financially inter
ested. and to inspect and value sucE
p collateral as may be pledged on
same, as well as to ascertain if al
signatures and endorsements are gen
'uine and that no borrower has Sc
sured a larger loan than his business
and general financial standing vii
warrant: copy a statement of the
condition Of the bank at the close O
S business on the previous day; anC
in every way ascertain a full and
complete examination of the bank
condition.
Ia a country bank Of 100000 cap
italization, this can be accomplfshel
in days grind of - hours. but il
banks Of upwards of this amount,
is almost an impossibility for the e1
aminer to accomplish his work sat
isfactorily in a short space OF time
For this work the examiner is pal.
"A fee of $500 for a bank OF 500,
600 capitalization. to 5000 for
bank which has a capitalization O
5000 600 and more. The examine
must pay his own expenses
About Umbrellas.
Eyeglass -vparprs have long since