The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-14

tnat the Riggs National bank has sent
broadcast "A copy of Its statement OF the
case and it's letter to the Comptroller.
II II understood that this literature
has been sent TO ever, national bank in
the country and many State institutions.
The keynote OF the court struggle is
sounded by the Rigs National Bank in
the following paragraphs Of the letter.
signed by President Glover. sent TO the
banks.
The Rigs National Bank in making
this fight Is making a hight for every
national bank in the country. II is an
attempt TO defeat a gross usurpation OF
authority by the Comptroller and. II
successful. will establish a precedent
and barrier that will serve as a perma-
nent protection TO the banks in the
future.
III. on the other hand the bank IL
defeated in the courts, which IL does not
anticipate, or. II by means OF the pres
tice and power OF the Comptroller's
Office, its business can he materially
diminished, the occupant OF that position
will be able to exercise despotic power
In the future.
In this connection il is worthy OF
note that In his first and only official
report, the presen, Comptroller OF the
Currency prayed Congress to confer on
him authority 10 remove At his discre-
ton any director OF a national bank and
without trial or judicial procedure to
fine personally any officer of a national
bank who disobeyed any regulation OF
the office OF the Comptroller of the Cur
| rency.
Under the circumstances this bank
feels that 1t has "A fair claim upon all
bankers, and particularly members of the
national system. for their confidence, in
dorsement and moral support"
Full support Given.
1 Zig men in the American banking
| world said yesterday that the Riggs Ma
| tional had all Of this II ls not expected
| in New York that any big bank will
bring any action of its own against tho
officials OF the Treasury Department or
take an active part In the pushing Of
the Riggs National suit or any new suit
II was said definitely. however. that II
number OF banks in New York chose
10 do so, they had grievances that were
| suffcient to warrant protective action
| by them and that many banks outside
OF New York have likewise.
Another effect OF the incident, which
In the opinion OF national bankers will
prove embarrassing 10 the Administra-
ton and tho Federal Reserve Board
Will be tho tendency OF state banks ana
! Federal reserv" system while existing
conditions continue. The reserve boa I'd
and the directors Of the reserve
banks. have been trying to make the
! reserve system a drawing card for the
state institutions II is recognized that
without the state institutions. the re-
serve system will fall short OF the pow
ertul position in the country that II was
! hoped to attain.
Wall Street pointed out Yesterday a
misstep mad" by tho Comptroller in his
reply Ia tho Riggs bank statement, in
which he inadvertently reflected on the
financial standing ~ "A man generally
credited with representing tho McAdoo-
Williams influence in tho directorate ~
the Federal Reserve Bank Of New York.
Among the securities mentioned by
Mr.. Williams as undesira bile collateral
for bank loans and which were ac-
c"pted by the Riggs National he named
lnsniration Consolidated Copper. The
president Of this company, which s
held in high esteem, is ", Il, Thompson
Of New York, director ~ the Fed
Icral Reserve Bank ~ this district Mr..
Thompson was elected To the board oi
the reserve bank AZ q representative" ol
tho smaller banks, and his selection
wag made at time when the McAdOo.
williams fonces were trying 10 gel rap.
r"sentatiNes on the board who would h.
in accord with their policies.