The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-11-15
rnc responsibility Of Bank DiFsetOF',

rnppipg over with good advice to th'
nnbic in regard to the qualifications ant
'hdes Of bank directors 1t is rathel
amusing to read some OF these suggestions
In grad.reet, financial and business
journal, we lind the following recommen
dations;
Flrst-some would have the directors o.
the bank responsible to an unlimited extenl
personally for all the acts Of the bank
while the ordinary stockholders enjoy but
n limited liability.
srconl-Others insist that the qualiiica'
lions OF directors should be increased 50
,bot they would always be men possessed
Sithe most detailed knowledge OF the busl-
ne.. who would at the same time have the
highest stakes in the bank, =,
Third Others propose that the penalties,
criminal and peCuniary, Of the bank direc-
tors should be very greatly increased
1t is suggested that the National Banking
law might with advantage to stockholders
and dcpositors be amended in these par
tculars
First-By the abolition Of the "happy
hmily system," the motto OF which is
"onca Il director, always director" Two
ar more OF the directors, or certain per-
centage of the directors, might he required
by law to be retired every two OF. three
year, and be rendered ineligible for rc-
election for two or three years more. The
Hoard. meanwhile, would remain Contin.
mons. while new blood infused into would
moi be without beneficial effects.
Seconl-'lhc vacancies made by this 70.
ation in the board Of directors should not
be filed by the vote Of the directors them
selves, but by the vote Of the stockholders,
who should select the most competent ot
their own number for these places [
Third-No person should be permitted
10 he director in more than one bank!
Fourth-DireCtos should be required to
be present ut all examinations by Govern.
ment examiners, and, II it should be found
Thai fraud exist at the time Of that examin.
alton, the directors should, by law, be held
to rs strict an accountability Tor them Us
the cashiers,
With all Difference to 80 good an authors
tyas Braislreet, we beg to say that we see
very little that is practical in these sug-
gesliona As We have heretofore taken oc-
cason to remark, bank directors are chosen
for the sake OF their accounts, This Is the
mlO-oi course there are rare exceptions
Asa rule they have very dim ideas on the
subject Of banking. The weekly state
ments that arc submitted to them are not
generally as clear as crystal, and unless a
director is Of IN inQuiring and persevering
turn Of mind his knowledge OF details Is
aptto be very limited. II he is inquisitive
and critical he is apt to become offensive
to the cashier, and once he attains this
status he is pretty sure to go out at an carly
day. The custom Of the country Is
for cashiers to practically run the
banks. They are supposed 10
know more than the directors, and OF
course they do generally. know great deal
moretlan the average director. Deficiency
Of knowledge Is not their shortcoming,
Besides their other knowledge they know
that the directors do not carry the business
in their heads to any considerable extent,
and in time they learn to lean very heavily
on themselves. BY cultvating the larger
stockholders they make themselves solid
in their positions, and once u cashier
feels himself solid he Is not inclined to
brook much fault finding from director.
Some one has said that "the sense ot
power grows by what IT feeds on and 1t Is
an nlirmity OF the flesh to absorb this
sense OF power from the pliability Of our
surroundings. A King Of France once ut
tered the boast, u am the State" Many
bank presidents and cashiers have said to
themselves, ~ am tho bank II they
didn't say it, they felt 1t. This arises from
the fact that their directors are not, as q
rule, capable OF exercising keen incisive
oversight Of the affairs OF the bank The
most Of them know just what they are
told on "bank day" and nine out Of ten
directors derive their entire stock OF knowl'
elgc about the affairs OF the bank in this
way.
In tho nature Of things banks are bound
to bC run this way. These are days ol
active competition for accounts. The
Hockholder who Is large depositor Is apt
to be director. In one sense this Is tho
stockholders proper guaranty. Tho man
who has much at stake Is naturally the
best custodian Of the general interests Of
the bank. But, unfortunately, men who
are actively in business have their hands
full, and inasmuCh rs they arc not paid
for their services at the bank they are
not prone 10 devote much time either "a
acquiring a thorough understanding oI
banking as II should be carried on, or as
to the way Il is actually carried on. Their
reliance Is on the man behind the coun.
Ter, and iithey are satisfied In this respect
they dismiss all anxiety from their minds
ks for loading down directors with
Unusual responsibilities aud penalties, that
Is out Of the question. II will simply ope'
rate to make men Of responsibility inwil.
ling to become directors. The care that q
man is willing 10 take Of his own property
is generally the Just measure Of his respon.
sibility for the property Of other people In
the same venture. As rule this Is also
the measure OF his legal responsibility
The safeguard over and above his rcspon.
sibility ought to be in the system Of bank.
ing itself, and in tho scruptilous care with
which bank officers are chosen. The bond
Of the disbursing officer Ought 10 be heavy
and every appointee In bank Ought to he
under heavy bond No honest man will
object to giving suCh a bond, and as rule
all men Of established good character car
give such bond. Any hardship wrought
In any exceptional case ought not 10 counI
Against the large interests involved.
Next, the system ought TO be AZ conser
yAtiye as possible. The National system
with It's double liability and its govern
ment examinations is the very best evei
known in this country. The security fol
ihe hotc.holder is absolutely perfect tindei