GOVERNMENT CONTROL OF BANKS 445 



larly twice each year. The reports made by the examiners 

 have grown from a short statement of liabilities and resources 

 until they now cover all vital points of interest in regard to 

 the condition and solvency of the bank examined. These 

 reports when received from Washington, are gone over very 

 carefully by a corps of trained men, and letters are written to 

 the banks, calling attention to and criticising the various items 

 in the reports and asking for an explanation or additional 

 information in regard to them. This is probably the most 

 important work of the bureau, especially in cases where a 

 bank is in a critical condition. Probably the greatest utility 

 which is done by the currency bureau is to be seen in those 

 cases where it is discovered through the reports, that a bank 

 has made such losses as to involve an impairment of cap- 

 ital or possible insolvency. In more cases than are generally 

 known the comptroller of the currency, with the aid of the 

 bank examiner, is able to save a bank which, without interven- 

 tion and assistance, would have failed. Of course it is essen- 

 tial to success in this matter that secrecy be observed, and it 

 rarely becomes known to any one outside of the bank and the 

 comptroller's office what has been the condition of a bank or 

 what steps are necessary to save it. It is the experience of 

 the office that, where the officers of the bank are honest, truth- 

 ful and make complete statements of their difficulties, in most 

 cases additional security can be obtained for doubtful paper, 

 or such a contribution made by the directors or other stock- 

 holders that the impairment of capital or insolvency can be en- 

 tirely removed, and there are many banks in the United States 

 to-day which have been saved in this way and are now not 

 only thoroughly solvent, but highly prosperous institutions. 

 This system of examinations, of course, is far from perfect. 

 The examiner cannot, in the time at his disposal, make such 

 an inspection as will always result in the detection of fraud and 

 violations of law. If the officers of a bank, or any of them, are 

 dishonest, being in the bank every day, they have every advan- 

 tage over an examiner, and are very frequently able to deceive 

 him. No system of examination can supply ability or insure 

 honesty in bank management. This must be supplied by the 

 officers and directors, and upon them the responsibility must 



