The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-10-04
AMERICAN BANKERS BEGIN
MEETING At Los ANGELES

Judgment or competent authorities,
another step toward the solution of
this yaxatious and important problem.
1T has been my privilege to closely
observe the energetic work of your
committee upon this perplexing ques-
ton, and l feel it but proper to ex-
press an appreciation of their services
particularly those of the able chair
man, Mr.. Clay H. Hollister, and the
sub-chairman, Mr. Walter E. Frew,
as we'll as Mr.. Jos. T. Talbert and Mr..
Fred l. Kent, for their active and un-
selfish work.
I'm other countries bank supervision
rests largely with directors and share
holders through the employment of
public accountants as examiners and
the maintenance of a permanent audit
ing staff.
In our country the national and
most Of the state governments main
tain strict supervision over banking
institutions under their jurisdiction,
and as our association has been con-
sistent advocate for better service in
this respect, it is with much gratifica-
tion that we note the satisfactory re-
suits attending the efforts of recent
yearssto bring about highly develop
ed system Of supervision of banking
Institutions throughout the country
"In, this respect the administration
of the present comptroller of the cur
rency,i Hon. Lawrence o. Murray is
a cosspicuous and commendable ex-
ample, of what can be accomplished
in his office, and ! feel that he is de-
serving of the thanks of the members
Of this association for the high state
of efficiency to which he has brought
the present system of national bank
supervision.
THE clearing house section of our
association has also successfully urged
the employment of examiners by clear
ing houses to make regular examina-
tions Of the banks in some of the large
cities, and we find an increasing num-
ber of banks each year employing out
side auditors to make Independent ex-
aminations for the benefit of their di-
|rectors.
"All this work, ! believe, would be
greatly aided by the development of a
uniform system Of bank accounting,
as advocated in his quiet way by the
Hon. Pierre Jay, formerly commits
sioner of banking for the state of Mas
sachusetts, and now vice president of
the Bank of the Manhattan company,
New York Such a system would be
Invaluable to the smaller banks and
could be utilized to advantage by the
larger institutions and would provide
a ready and sure means of verification
by the bank examiners
'1 also believe that out of such a
system there should be developed a
proper method of ascertaining the cost
basis for handling various items and
transactions in the banks
Manufacturers reduce to the small
est fractions the cost of each opera
tion in producing goods, while bank
ers have too long been prone to lump
expenses and income and take chances
on coming out with a profit
"The expense end of any other mod
ern business is under careful super
vision, and in my judgment If bankers
were to work on a proper cost basis
as well as transit costs, they would
not only find their analysis depart
ments would reveal opportunities tc
insure amazing savings, but would bs
less eager to offer unusual induce
ments to secure new business"