Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-20
UPTOWN OFFICE. ~ EAST BROAD
WEDNESDAY. FEBRUARY 20, 1895.
Ranking Problems.

Banking ProbIems.
The wrecking OF the Bank OF licking
yon by Cashier Figgatt emphasizes the
public demand for some method Of Sc
curing depcsitors and other creditors Of
the banks 1t also shows how easily a
trusted oficer can line his pockets or
lQnste = hanks assets without being
lied to account by the officials upon
whom the people dealing with the bank
rely for protection. We do not pretend
10 say that these Lexington officials are
winners above all other men; but simply
that they followed the bed example set
Them by Thousands Of other bank offciais'
and let the bank run itself. There was In
This case nothing to differentiate 1t from
thousands of others. In other cases
neither the banks nor the general public
suffered from careless administration. In
This case the bank. as well as the pubic
generally. was the victim OF bad admins
tration.
In this connection We may state that
lhe recently-formed New York state
Bankers Association has had under con-
sideration subjects kindred TO the one OF
which we are now speaking. At the regu-
lar quarterly meeting Of the Council OF
Administration. held last Saturday, seve-
raj reports were made. and committee
On frauds and crime reported progress
and was allowed more time.
The most important resolution adopted
by the council. according to Bradstreets
which we credit with the facts we are
repeating IN this connection, was In the
form OF q recommendation 10 the men,
hers Of the association that they request
borrowers Of money from their respective
Institutions to give them written state
fnents under their signatures OF their as
sets and liabilities. in such shape as the
Committee on Uniform Statements OF the
Various groups recommends
This seems to be a meritorious recon-
anendation. OF course. we cannot foreteh
how II will operate when put into prac-
Nee. But. accepting what the advocates
NJ the new rule say as likely to prove
true. we should be inclined to expect
rood results from It. We quote Brad
streets as follows:
I'm recommending to banks. members
Of the association, the procuring OF
statements, the council declared that "
aid so for the reason that IL believed
n would strengthen the institutions VINO
are members OF this association, ana al
che same time tend 10 keep their assets
more free from doubtful and bad depts.
srd that IL would also have the ehect OF
eliminating from the mercantile COM
srunity borrowers whose standing ana
credit are now a menace to reputapie
merchants, and that depositors having the
yuii confidence of their banks would as
fesuIt be accorded better facilities TOT
transacting their business"
That seems to be reasonable forecast.
But there is something TO be said on the
,,hsr SIDE Of the question. Therefore We
puote from what Bradstreet's says on
his particular point. Here it is:
This suggestion OF the council OF ad-
,ninistration is deserving Of consideration.
toming as II does from such BODY. IL
h without doubt well and, even under the
,ondit,ons Of modern business. necessary
that such information as that referred 10
,hould be available to the banks ana
their officers. 1t is another question
whether the banks themselves ere tne
hest people to procure the statements Oh
condition referred to and TO assume I"
rate the credits Of would-be borrowers.
In other words. this information ought
10 come through Bradstreets and otner
puch agencies. However. We like the reso-
tuition as recommended to the New iorA
State Bankers Association.