The Washington herald., 1915-11-21
DATA ON BANKS
CAUSES FRICTION
Reserve Board Wants Infor-
nation Secured and Held by
Comptroller Williams.
OPEN BREACH IS FEARED
Controversy Will Be Aired at Coming
Session of Congress and May
Hurt Administration.
OPEN BREACH Is FEARED
BY JOSEPH p. AMIN.

Whether the confidential reports of
national bank examiners to the Comp
troller of the Currency shall be available
to the Federal Reserve Board, of which
the Comptroller Is a voting member. Ia
a question causing no little friction be-
tween Comptroller John SHELTON Williams
and his associates.
According to Information obtained yes
terday. this has been for some time the
subject of a correspondence campaign
between Paul warburg and Mr.. Williams.
with no other apparent result than a
widening of the breach that has existed
for some time between the Comptroller
and his colleagues on the board.
II Is declared that as the result OF
the controversy. relations between Mr.
Williams and another member of the
board (Adolph C. Miller). have become
strained almost TO the breaking point.
and that Mr.. warburg and Mr.. Miller
represent a majority Of the board in
their contention.
That the controversy will be aired
in the banking and currency commit
tees of the House and Senate and on
the floors of the two houses this win
ter is a foregone conclusion, and an
attempt no doubt will be made to leg
islate the Office Of the Comptroller out
of existence. or at least to make IT
entirely subservient to the Federal
Reserve Board. This attempt, how
ever. although entirely in accord with
the early views of those who framed
the Glass Owen act, promises TO meet
with determined opposition from the
chairmen of both committees. There
is room for grave doubt II the pro-
posed bill ever will reach the calen-
dar of the House or Senate, in view
of the opposition of Senator Owen
and Representative Glass.
Open Breach Feared.
The position taken by Messrs. War
burg and Miller is on all fours with
the recomme ndation of the advisory
council of the board. which on Tues
day urged that IL the office of the
Comptroller be not abolished COM
pletely. at least the supervision and
examination of national banks BE
placed under the direction and control
of the board.
Members of the board take the po-
sition that under the banking and cur
rency act the board is made the su-
preme Federal authority over national
banks. and that the office of the
is merely an adjunct OF
the board. This position, they claim.
gives them access to all the records
Of the Comptroller's office.
Mr.. Williams, IL Is understood, mas IN
formed Mr.. Warburg that the Comp
trolIer is ready to give the board the
benefit Of his oponion as to the condition
of any or ali national banks. but he will
not permit the board to have access to
the informatton obtained by national bank
examiners upon which the Comptroller
bases his opinions. He takes the posi-
ton that under the law creating the
office of the Comptroller reports OF ma
tional bank examiners are strictly con-
fidentiaI and available TO no person or
body outside except the Comptroller him
self. Mr.. Williams takes the position that
the banking and currency act in no way
altered the confidential nature of re-
ports made by national bank examiners.
That the controversy will develop Into
a public breach between the Comptroller
and a majority of the Federal Reserve
Board is a possibility being considered
seriously In financial and political cir
cIes The administration realizes that
an open breach between an officer of the
and the Federal Reserve
Board will reflect seriously upon the
banking and currency Legislation which
the Democrats expect to use as one OF
their trump cards In playing for a re-
turn to power next November.