Arizona republican., 1908-12-07

ary proceeding; would have been re
 garded as inimical to the interests of
 the members of the association-and
 particularly would have been denounc-
 ed as unduly "inquisitorial' and as an
 unnecessary invasion of the private
 business of the members. But it is
 different now.
 And why should the members of a
 bankers association approve such a
 plan as has been adopted by the Cal
 ifornia association?
 The very fact that you gentlemen
 are meeting here todOy as the mem
 bers of a bankers association proves
 your belief in the advantages of asso-
 citation and cooperatiOn-fOr you are
 too busy to give your earnest attend
 ance upon this convention for it's
 merely social features. Publicity is
 one of the most valuable agents of
 progress. A greater measure of pub
 licity of theft business, as between
 banks-in other words a fuller eX
 change of information among bankers would work generally to their mu-
 tual benefit, and invariably would be conducive to better protection of bank
 ing interests generally. When money
 is close" and pretty generally loaned
 out. it is nothing uncommon for one bank, in order to accommodate it's customers. to borrow money of anoth- CT bank. The borrowing bank puts up as collateral some of the notes which represent it's own loans. But what. as a rule, does the lending bank know of the value of these notes beyond what is said Of them by the bank that bOr- rowed? It would at least throw light on the value of notes if the total in debtedness of the individuals who signed them could be known. There seems to be nothing impracticable in the idea that your association could es- tablish a clearing house of informa- tion." to which bureau there would be transmitted by each bank in the assO- citation confidential memoranda as to each loan of a certain figure and of all loans in amounts above that figure.
 Especially valuable would it be to the banks of each community if they could abate their riValries sufficiently to join in a system of exchanging in formation along certain lines. In the few months that I have been a bank examiner I have encountered, in note files, notes which never would have been discounted if the banks holding these notes had exchanged information with other banks concerning the bor- rover. When q borrower is able to obtain from one bank. in loans, accom- modations to the full limit of his abil ity to pay. and having exhausted his borrowing ability at that bank is able to step across the street and repeat the process. it proves a regrettable lack of that spirit of cooperation which should prevail among bankers. And I am not dealing with a hp- pothetical easel could cite striking examples.
 The banking business in Arizona presents so many gratifying features, from the viewpoint of the examiner, l that I am tempted to go into detail as to some of the undesirable features. l but a regard for your patience forbids ! One of these features is the size of !. loans in some cases. Some banks place | too many eggs in one basket. I will say something, however, of the over draft evil. l suppose you know that | Arizona banks make a most undesira- ble showing in the matter of over drafts. Texas alone. I believe, of all l the states in the union. makes a worse | showing. Full statements of state 1 banks are not available. and except as | to Arizona. have taken as the basis | lf calculation the statements rendered | by the national banks for September . g, 1908. In this territory the state nents of all the banks are used. Talk | ing as the basis of calculation the item . If loans and discounts in each state . and territory and in each group of | states. it is found that of the loans | and discounts the overdrafts on Sep -ember 23. 1908. were:
 In Texas. =. ...... 7.64 per cent . In Arizona.... .... 3.39 per cent