[Volume XXVII
THE CHICAGO BANKER
22
liTe Girard National Bank
Of Philadelphia
Capital,	$ 2,000,000.00
Surplus and Profits, .	. 4,015,000.00
Deposits,	41,250,000.00
FRANCIS B. REEVES,	President
RICHARD L. AUSTIN	JOSEPH WAYNE, Jr.
Vice-President	Cashier
THEO. E. WIEDERSHEIM	CHARLES M. ASHTON
Second Vice-President	Asst. Cashier
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sible to secure joint action or co-operation of any kind with the state authorities. This seems to be particularly the case in the West, where there is a considerable amount of state jealousy, especially toward any efforts at national oversight or control. In some states it is reported that there are no examinations and that the banks do about as they please. In such cases there is occasional connivance between such state institutions and such national institutions as choose to avoid making a correct or full showing and there is little or no possibility of obtaining joint action in such instances.
What Comptroller Murray wants is so far as possible to get a uniform plan of joint supervision in which the state authorities will cooperate with the national so that there can be some assurance as to the exactness of a report of the condition of a national bank. The notice sent to the several districts requesting a list of banks that are evidently in close relations with state banks is expected to afford the data for regulations which will constitute the first steps toward such uniformity of action.
Pennsylvania
Harrisburg, Aug. 17.—Governor Stuart has appointed W. H. Smith of Philadelphia state banking commissioner, to succeed John A. Berkey of Somerset, whose term expired July 27th. Mr. Berkey has been banking commissioner since July 27, 1905, when he was appointed by Governor Pennypacker to succeed Robert McAfee, who had been elevated to secretary of the commonwealth.
The new banking commissioner is the ranking member of the staff of state bank examiners. He has been a personal friend of Governor Stuart for 30 years, which, in part, accounts for his selection.
V*
Chicago Bankers Favor Murray’s Plan
Chicago bankers have approved the action of Comptroller of the Currency Murray in seeking to discover just how much interest is being taken by the directors of the country’s national banks in the business transactions of the banks with which they are connected. They expressed conviction that their institutions would benefit by the plan of introducing greater caution in the making of loans and the scrutinizing of bank paper all over the country.
ment of general banking conditions. The replies of the examiners have been very generally favorable to the idea of co-operation. It is apparent from the letters that in most of the large cities the idea of joint co-operation is considered entirely feasible.
With reference to New York City the view entertained here as a result of the inquiry is that it is highly desirable that the state and national examiners should join in examining any banking institution in their districts in which the ownership is joint in whole or in part; that they should freely discuss the affairs of the allied banks and that it would be especially advantageous for the examiners to mutually exchange their records of extended lines of credit in order that each may have a complete record of such liabilities instead of a partial record as at the present. This view applies to practically all of the cities and represents what the office will undoubtedly endeavor to bring about.
With special reference to the institutions where national banks occupy the same room or building, or have close affiliations with state institutions it is the evident belief of the examiners that special precautions are called for. There are a few states like Massachusetts, which by statute have prohibited officers of banks from becoming officers of savings banks and has also prohibited the joint occupancy of banking rooms, but this statute in Massachusetts does not extend to joint occupancy by trust companies nor does it do so in any state so far as known. This makes joint examinations carried on by national bank examiners and state examiners authorized to go through the trust companies necessary.
In some states the simultaneous examinations have already been arranged for by the examiners, acting on their own authority in general harmony with the known wishes of the comptroller’s office. Some of the examiners have an agreement with the state banking board which permits them to list and report to the board all certificates of deposit issued by national banks to state banks, while the certificates issued by state banks to national banks are likewise reported to him by the state banking boards. By this method the common practice of evading a showing of bills payable in reports of condition is detected.
While in a very considerable number of states intimate and cordial relationship exist between the national and state bank examiners there are a few in which it has not been pos-
Drawbacks in Proposed Joint Bank Examinations
(Continued from page 19) purpose in maintaining sound banking in communities where both operate in close alliance. It seems that in some states the national examiners encounter opposition, or at least reluctance to co-operate, on the part of the state officials. There seems to be some jealousy at what is construed as meddling. This is said to be particularly the case in some Western states. But that indicates a rather narrow and short-sighted view of authority, for whatever advantage there may be in the plan is mutual, and state authorities who are desirous of doing their full duty and keeping up the standard of banking in their communities ought to welcome any helpful co-operation. Where there is no relation in business between national and state institutions there is no occasion for this, and it should not be pressed; but in cases where there is known to be such relations there ought to be no objection to it.
Bank directors and officers themselves, if they are intent upon conducting their business on sound principles and by safe methods, can have no objection to inquiry into the transactions which they have with, or through institutions that are not in the same system with themselves, and it will be to their advantage to have it known how far their customers have dealings with those institutions. The safety of credit cannot be fully assured without knowing how far it is extended, and that cannot be known through examination of one set of institutions where the same customers are making use of both. A certain degree of cooperation is necessary to have supervision of either set of institutions complete where their operations interlace. This plan of Comptroller Murray, kept within judicious limits, is commendable, and ought to be made to work successfully. The chief weakness of our banking system lies in the great number of institutions under a divided authority, and as in the case of laws affecting business there ought to be uniformity and co-operation so far as practicable.
Some time ago Mr. Murray sent to the examiners letters in which he inquired to what extent it is in their opinion practicable for national bank examiners to co-operate with clearing house examiners and along what lines and to what extent can the comptroller and the superintendents of the banking departments of the various states work together for a better-