The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-12-19
CURIOUS BANKING QUESTIONS

COhlOUS BANKING QUESTIONS 3
/ \ special meeting Of The Nationa
| Bank Cashiers association Of Massa
chusctis was held in Worcester, in that
state, last month II was noteworthy
for the statement of subjects to b,
discussed, viz:
The best method Of collecting checks
| throughout the country. on which Bos
ton and New York correspondents OK
| change.
2 Newspaper adycrtisus-docs it pay
for banks?
9. II checks deposited by customers arc
lost by correspondents before collection
should the customer suffer tho loss?
4 Payment OF interest by Comme rcial
banks on active and inactive accounts.
=. j Ioosc-lcaf ledger system safe?
6. Tho Giro system in Germany.
!. Bank examinations by public &C.
$. Which is the better pass book OF
envelope system?
2. Is it proper to balance cash before
closing time?
10. Legislative bills to punish The MAX
Ing of false statements 10 obtain credit
and the giving OF checks or drafts
against insufficient funds.
SO far as We have observed, no def
mite action was taken on any OF
these subjects. and further meeting
us To be held on the 18th Of next
month for continued consideration of
them.
Some Of these subjects arc mere
routine, but some Of them relate vitallv
TO the business relations Of the banks
with their customers, As to newspaper
advertising, Of course the banks that
10 do business with tho public will use
II, when il pays; and none VIII use
it when 1T does not pay. The banks
that want 20 be foremost in the public
eye, and which think that it pays to
be there, will advertise their induce.
mcnts: those that do not care for a
prominent standing before the public
will act accordingly, and viii not ad.
vertisc.
As TO the question. who shall stand
the loss when the banks lose a check
that is in their custody. whether the
loss is in the mails or otherwise
there surely can be no real dispute; the
check being taken by the bank, and no
longer in the custody Of the customer
h' lHb h'lAihE " NdF dN " iu'
manner in which the hank deals with
it or secures its safety, there should
be no doubt that the bank is re.
sponsible.
The payment of interest by banks on
deposits, active or inactive, is lust
as logical. and ought to be lust as
automatically certain rs the charging
Of interest on overdrafts Indeed, the
banks themselves practically confess
the same when they bar ovcrdrafts
as such; but the principle is not in
tho least changed by requiring paper
in place of the former overdraft
charge on the books. But it is a
largo question. and probably will not
be left 10 tho ultimate decision Of the
cashiers. But the principle being a
Just one, that interest. on deposits
should draw interest. especially whore
interest is charged on oyerdrafts, the
bank that will meet this logical con.
ccssion fairly will be the bank that.
other thing; being equal, will win.
As TO bank examinations being made
by experts. whether public account
ants or not there should be no
question. for non-eXpcrt examination
amounts to no examination at all. And
as TO false statements to obtain
credits, or drawing checks where the
funds are not ready 10 meet them, If
the law does not provide punishment
for these offeDses now, appropriate
penalties ought TO he enacted
Everybody has more or less business
with the banks; and banks are the
arteries that carry the life blood OF
commerce. Consequently, every one is
interested in them, and anxious that
fair dealing and safety shall attach to
all their methods and transactions.