New-York tribune., 1918-10-26
j. S. Williams Would
Discredit New York
Bankers, Sabin Says
President Of Guaranty
Trust Co. Replies to
Controllers Criticism

Charles Fl. Sabin, president Of the
Guaranty Trust Company, in a letter
to John Shelton Williams, Controller
Of the Currency, made public last night,
charged him with attempting to "dis-
credit New York bankers by publishing
onc-sided extracts from corrcspon-
dencc.'
Mr. Sabin's letter was written rs a
reply to letter Of October 3, from the
Controller Of the Currency to Mr..
Sabin. which, together with another let
ter to the local banker, was published
yesterday morning. In his letters Mr..
Williams criticised the president of the
Guaranty Trust Company, saying that
in All address before the state bank
section of the American Bankers AS
sociation, Mr.. Sabin "quoted and criti-
cised an official announcement of the
Controller Of the Currency that the
first seven months of the current year
had passed without the failure of
single national bank in any one of our
forty-eight states, while in the same
period there had been state, bank and
trust company failures in fourteen of
the forty-eight states"
Refers to Peace Interview
Mr.. Williams further faycd Mr.. Sabin
for alleged delay in correcting a typo
graphical error in a printed copy of
the same speech. and also asserted that
Mr. Sabin proceeded to induce the
false impression that department of
the administration was attempting to
weaken and injure the state banking
system" when the canvass of the fourth
Liberty Loan was but fairly started.
The Controller Of the Currency also
referred critically to an interview on
peace given out by Mr.. Sabin in 1916.
follows:
Mr.. John Shelton Williams.
Controller of the Currency.
Treasury Department.,
Washington, D. C.
Dear Sir: In reply to your letter
OF the 23d, which you saw fit to give
to the press before it had reached
me. | desire simply to state that the
manner in which you have handled
tins matter shows a disregard of
the rules of fair play and attempts
to raise false issues in which the
real facts in the case are obscured.
Ihls is not the first attempt you
nave made to discredit New York
bankers by publishing one-sided ex-
tracts IRON correspondence, to the
end that, Intentionally or other
wise, you create a misleading and
false impression.
The vital fact is that in a circular
sent out from your office over your
name you saw fit to go out of your
way to cast reflections upon the
credit and standing of the state
banks of the country, which aroused
the resentment of the state bankers
generally. This resentment has, to
my knowledge, been voiced many
times both in letters to you, in pub
lie addresses by responsible bank
crs, and in formal resolutions adopt-
Cd cd at the A. B. A. convention. Ny
brief comment on your circular had
no purpose hut to call attention to
this general feeling. in the hope
that 81 better attitude and a more
harmonious relation might follow.
As fair expression Of the atti-
tudc Of the state banks in regard to
this matter I call your attention to
the following resolution, in which 7
had no hand and no knowledge,
passed unanimously by the state
bank section at its rectnt conven-
ticn:
The Stat, Bank Section regards
as unfortunate and greatly depre-
Gates the recent statement given
ont officially b. the Comptroller
OF the Currency in which the ab
sence Of failures of national banks
fer stated period was contrasted
with the number Of failures of
banks chartered under state laws.
Such statements, either directly or
by inference. tend to shake public
confidence in state banks and
create false impression as to the
condition and stability of state
banks. In times of war it is of
vital Importance that cooperation
be encouraged and confidence be
stimulated. 1t is important that
state. banks and trust companies
be given credit for their achieve
ments. in supporting the war to the
end that they maintain their ef-
forts and be not discouraged bv
either intentional OF unintentional
statements which might be inter
preted as reducing public COM
tidence in them or their work.
1t is, therefore,
"Resolved, That the state bank
eertioD depracatac Ig,oco ,ooo.,4 -