The times., 1899-09-07
THE BANKERS IN SESSION.
President Hill to BE Re-eIected-A
Uniform Credit system.

4
Uniform Credit system.
CLEVELAND, Ohio, Sept. s-Walker
Hill. President of the American Exchange
Bank OF ST. Louis. will be re- elected Presi-
Gent OF the American Bankers Association.
Ine nominating committee decided at its
/ meeting previous to the opening of the
convention today to recommend his name
/ 10 the convention tomorrow when the an
nual election takes place. Alyah Trow-
bridge, President OF the North American
Trust Company of New York. will be rec
/ commended by the committee for first vice
/ president. He has acted as chairman OF
! the executive committee during the last
! year. The name of Col Myron T. Herrick
President of the Society of Savings of
/ Cleveland, will be presented as a member
/ OF the executive committee OF which he
viii probably be made chairman
When the second session of the conyen-
j tion was called to order today by President
Russell. there were fully 200 more dele
gates present than there were at the ses-
sion of yesterday.
James G.. Cannon, Vice President of the
Fourth National Bank of New York, read
paper on THE Possibilities of Banking
Cooperation Under a Uniform System of
Credit Departments and Standardized Prop
erty Statements" Mr. Cannon advocated
the general adoption by banks of property
statements. saying that it was time banks
realized the necessity of receiving at stated
intervals proper information from custom
ers seeking accommodation. He added:
The making of property statements also
has the effect of educating the borrower TO
higher standards of business methods, as
many applicants for credit fail TO realize
their own precarious condition until their
cases are carefully diagnosed by pains
taking, conscientious bank officer from facts
revealed by a detailed statement. By
means OF these statements and their careful
analysis, unbuSineSsiike practices are
brought to light, and the borrower, II prop
erly advised, is diverted from a dangerous
course to one of safety, conservatism. and
prosperity When an applicant for credit
makes showing of his affairs, and un-
reservedly discloses his financial condition
to his banker, he should then be afforded
credit facilities commensurate with his re-
sponsibility and the average bank balance
maintained. This places the whole matter
of borrowing upon business basis and fa-
voritism is eliminated. Banks are not pri-
vate enterprises, but public institutions.
whose doors should be wide open, and
whose legitimate facilities should be placed
at the disposal of worthy depositors. Thu
obtaining of accommodation should not be.
as it often is, matter of partiality, but
right 10 which every customer is entitled
warrants his borrowing"
AS to the necessity of banks having
proper credit departments Mr.. Cannon
said
There is not a large mercantile house of
any consequence today in the United States
that has not a thoroughly equipped credit
department, in charge of competent man;
and yet strange TO say, the number OF
credit departments in banks througho ut ths
ITnifpd States ran ba counted almost nDOO
the fingers of two hands. The time has
come for the introduction of this feature
into the banking business. The aecumula-
tion of wealth in this country, and the rap
idly lowering rates for money, make il in
cumbent upon US all to scrutiniZe with thu
greatest care our loans and discounts, for
we cannot afford to take the chances Of loss
as in the past, because of the diminishing
returns for the use of our funds.
In the month of August there was fled
In New York city a voluntary petition in
bankruptcy and the liabilities OF the debtor
were $740, 900, with assets of $500. Among
the unsecured creditors were seventeen
banks, who were interested to the extent of
S230,000 Eleven of these banks were in
New York city and six outside the city.
Sixty three judgments had been obtained
by these banks against the insolvent debt
or. This exhibit speaks for itself. There
is no question in my mind that if any of
these banks had asked for a detailed state
ment, and made the proper investigation Of
the same, they would have saved them
selves from these fearful losses. The time
has come for radical reform in the mat
ter of making loans by banks and share
holders in banks should insist that the in
stitutions in which they interested
should have properly equipped credit de-
partments.
Mr. Cannon here exhibited from the
platform, on large charts, eight OF the prin-
cipal blanks used in the credit departments,
beginning with the opening of an account
and showing the various stages OF its
progress during the application Tor dis
count until the loan is finally placed to
the borrowers credit. At the conclusion
of the exhibit Mr. Cannon offered the fol-
lowing resolutions:
Resolved That the secretary Of this
association be and hereby is requested to
confer with the vice presidents from the
various States and prepare uniform pep
erty statement blank, which can be used
in each State of the Union by the members
of this association, the same TO be desig
mated as the standard form of the Ameri-
can Bankers Association the statement
blanks to be supplied to members for their
use at cost price, upon application at the
secretary's Office.
Resolved, That the American Bankers
Association, in convention assembled, ap-
proves the system of credit departments
for banks, and that the secretary of this
association be and hereby is authorized to
prepare and set up in his Office model
credit department and to furnish such in
formation as he may be called upon from
time to time to give. to ths members of
the association. regarding the workings
of the same; and, also, TO prepare and
furnish TO the members of the association
at cost price, any and all blanks which are
need ul in connection Herewith"