The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-15
Aspects Of the Riggs Bank Case.

There is just one tribunal for the
present determination OF the issues
raised by the injunction suit which
the Riggs National Bank OF Washing
ton has brought against the Comp
troller of the Currency. This is pre-
cisely the courts To which resort has
been made.
The politico-finan past in the
United States contains ample warn
ing Of the dangers of n controversy
involving on the one hand the Treas
ury Department, backed by the Fed
eral Administration. and the country's
banking community on the other. Both
sides to the pending controversy
should have and can have no other
intelligent wish or purpose than to
let the law take It's course. now that
the law has been invoked. and with
out public agitation.
Great and essential rights. privi-
leges and duties are AT stake, and
public clamor about them cannot fail
to be detrimental in more ways than
one. Surely the Wilson AdminiStra-
ton, which has been so Solicitous for
restoration of prosperous business
activity, does not want To interfere
with the maintenance Of such rec
onciliation of business. financial and
political interests as the events of
recent months have compelled. For
the same reason the Riggs National
Bank and its sympathlzers cannot de-
sire anything else than an orderly
settlement of the questions which It
has asked the courts So pass upon.
1t Is proper, however, to point out
how essential 1t Is to the general well
fare that the proprietors of captal
invested in the banking business IN
der national charter know the extent
to which they are subject 70 inquisi-
tortal visitation by Government Off.
GERS. There must he some definition
Of the degree within which super
visory authority can he exercised.
Heretofore there has been an as
sumption that the most which law
can do is to fix certain standards and
requirements for national banks, and
all that an officer of the law can do
is 10 hold them To II. Accordingly II
Is well to have court test made,
even II an unprecedented action was
necessary, 10 ascertain how far. II nj
all. the Judgment of a political ap.
pointee can he substituted for the
Judgment of private responsibility in
banking management
II will not be forgotten that Comp
troller WILLIAMS in his annual re-
port last December made tho aston
ishing proposal that national banks
and hank officers should he liable to
punishment for falling to comply with
the regulations of the Comptroller.
- matter how whimsical or arbitrary,
Tins placing his rules on a par with
legislative enactment. This proposal
was contained in the following recon-
mendation, the italics being ours:
That the law bc 50 amended rs TO
place It within the power Of the Comp
troller's ofice TO pcnalize. by imposi-
ton OF appropriate fines dN attractions
and violations Of the lar and rcguld-
tons NJ the ONCE, and It il suggested
thaS these fines should be imposed upon
tho offending officials as well as upon the
bank. Certain violations NJ The law
and regulations should be punishable
with imprisonment as well az a fine.
suits To enforce such penalties OF course
to be instituted nv the Department Of
Justice In the United states courts"
One immediate effect which the