The Washington herald., 1913-09-13
new ROLES FOR
M'ADOO and AID
Secretary and Assistant Con-
ducting Office Of Comp
roaer Of Currency.
SITUATION IS UNUSUAL
Plan, Says Report, Is to Have MIR.
Williams Step Into Place After
Currency Bill Passes.
SITUATION IS UNUSUAL

Secretary of the Treasury McAdoos s
recent statement in regard to the investi-
cation which the national bank examiner
has been making into the legality of the
National City Banks $44.0oo,0O0 loan to
the Chicago Street Railways Syndicate
has directed attention here TO an extra
ordinary situation.
Secretary McAdoo and his assistant,
John Skelton Williams, are, and have
been for several months, virtually con-
Quoting the affairs or the office of the
Comptroller of the Currency. This is in
dicated by the statement issued by Sec
retary McAdoo in regard to the National
City Bank. in which he comments on
the report OF the examiner.
This state of affairs is absolutely at
variance with the practice that hitherto
has prevailed in the administration of
the great banking interests of the coun-
try. Furthermore, the question is be-
ing seriously raised here whether the
Secretary OF the Treasury is not ex--
ceeding his power under the law when
he assumes to direct the affairs OF the
Comptroller's office or turn them over
to his first assistant in the Treasury
Department.
Explanation May Be Asked.
There has been talk recently among
members Of Congress in regard to this
extraordinary condition. and Mr.. McAdoo
is likely TO be confronted with a demand
for an explanation.
The assertion is made that the present
investigation. for instance, into the Ma
tional City Bank loan is a matter for
supervision exclusively by the Comptrol-
Ter of the Currency, and that his de-
cision should be final and in no sense
subject to review by the Secretary of
the Treasur or his assistant
Not, only, however, has John Shelton
Williams assumed charge OF this inquiry.
but recently he appeared more publicly
as directing the affairs of the COmptrol-
Ier's office. When the First-Second Ma
tiOnaI Bank Of Pittsburgh closed its
doors. Mr.. McAdOo's assistant wen' per
sonally to that city, assumed charge Of
the investigation into the banks af-
fairs, and issued statements in regard
to the conditions that had been found
there What in former days had been
considered the sole province Of the
Comptroller of the Currency was pre-
empted by Mr.. Williams, and many |
bankers in Pittsburgh resented his inter |
ference as unauthorized and without |
and law.
Powers of Comptroller.
The national banking act. creating the |
office of Comptroller of the Currency, |
that he shall perform his duties |
under the general direction of the Sec |
retary of the Treasury" When it comes |
to the enumeration of his duties, how |
ever specific power is lodged in each in |
stance with him and when that power |
is to be shared by the Secretary OF the |
Treasury a special provision Is made. !
There are but three matters in which !
the Secretary of the Treasury is given |
concurrent power with the Comptroller |
Of the Currency. They are % the is
suing Of charters to national banks haT-
ing a capital Cf less than 10000: (2) |
the appointment Of bank examiners; 80 |
the appointment of receivers for banks
which have failed on account of a short
age in reserve In each of these cases
the approval of the Secretary of the
Treasury is required. but I'm other mat
Iers the decision of the Comptroller of
the Currency heretofore has been su-
Dreme.
The Comptroller of the Currency has.
in fact. been regarded in the past as an
officer, and many Comptrol
lers have taken pride in asserting that
The law requires that the
shall make his annual report
to Congress. and not to the Secretary of
the Treasury, and that he shall submit
recommendations for legislation. Fur
I
President for a term of five years, there [
by introducing another element Of in
dependence.
When Opinions Differed.
There have been notable instances in
former days when radical differences of
opinion have existed between this high
officer and the Secretary of the Treasury. /
For instance, when Lyman J. Gage was
Secretary Of the Treasury he advocated
asset currency. Charles G. Dawes, who
was then Comptroller OF the Currency, /
not only opposed it in conference be-
tween the two men, but submitted a re- !
port to Congress condemning it
Also when Leslie NJ. Shaw was Sec
rotary Of the Treasury, certain bankers
to him Of the practices of
another banker. and Secretary Shaw or
Tered that banker to discontinue his OBJ
ectionabIe acts. From the banker came
he reply that he would not discontinue
hem until Secretary Shaw could show
lim any authority in law by Which the 3
l.,