The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-09-11
Is Suggested for the National
Banks of the Country
GENERAL BALANCE BOOK
Or Uniform Daily Statement IL Sug-
gested by Bank Examfners-WOuld
Facilitate the Periodical Ex-
animation of Institutions
BY JONATHAN WINFIELD

ing in the national banks in the United
States would be IDEAL according to the
federal bank examiners, a uniform daily
statement or general balance book, the
form to be prescribed by the Comptroller
of the currency, would be more desira-
BILE and practicable at the present How
ever, it is considered likely that un-
form system of bookkeeping is sure to
come sometime in the future.
Many of the bank examiners are of
the opinion that If the comptroller would
call attention of the banks to the neces-
sity for uniform statement of a gen.
eral balance book, that nearly all banks
would adopt 1t. These men contend that
the national bank act should be amended
SO as to provide that every national
banking association shall keep book Of
such form as shall be prescribed by the
comptroller and which shall show the
statement of the resources and liabilities
of the bank at the close of each days
business. This book would then become
an authentic record of resources and
liabilities of the bank 1t is explained
that suitable penalties should be provided
for any Justification of this record in
order that there may be no doubt as to
its authenticity.
In this connectino 1t is considered i'm
portant that the reports of conditions of
banks to the comptroller be correctly
made, and that the examiners verify
the correctness of such reports. 1t is
considered likely that the secretary and
treasurer, to whom the matter has been
referred, will ask Congress next year
for such legislation.
At present, to determine the condition
of banks, examiners are required to COM
pare the banks copy of its last report of
conditions to the comptroller with its
books at the same date. The examiners
have no hesitancy in admitting that their
work in this particular is very superb
cial. In many cases the copies are in
complete, made with pencil and are
otherwise unsatisfactory.
1t has been brought to the secretary's
attention that the banks should be requir-
ed to make their reports in duplicate,
and that when these duplicates are re-
ceived by the comptroller they should
be carefully compared and the dupi-
cate forwarded to the examiner in whose
district the bank is located The exam
liner should not only compare the last
report of the banks condition but all
reports sent him. After he has made his
comparisons he should turn 1t over. to
the bank for It's file. This, the examiners
say, would cause a little extra work for
the bank. the comptrolers office and
also for the examiners, but 1t would
demonstrate its worth and necessity.
NH y-t4 -.
aminer, of whom there are about 25,
is not only laborious but tedious because
of its exactions and confinement. 1t Is
of first Importance that the examiner OBJ
tain correct statement of the resources
and liabilities of the bank under exam
nation. At present this is more or less
difficult. and will remain so unless the
remedies suggested by the examiners
are offered.
In examining a banks accounts, the
examiners differ to the best time to
do such work. A majority of them argue
that the most satisfactory time for the
examination Is at the close of the banks
day, while others contend that the open
ing hour or the middle of the day are
more suitable. Those who favor the
closing hour for their examination de-
clare that this time is ideal for their
work 1t is pointed out that the exam
of day is on hand to observe its cash
settlements.
When a bank is In a weak and de-
clining condition the examiners contend
that It should have frequent and thorough
examinations: that all matters subject to
criticism and suggestions looking to I'M
provement of the institution should be
discussed with officers. and that they
be admonised to all work together for
an Improvement in their bank and sug-
gestions be offered to the best way in
which to put their institution on sound
er and safer basis.
The examiners agree that the fault of
banks hazardous condition usually
dies in the fact that its OFFICERS are in
competent and that as soon as possible
a new element of strength should be
brought into the bank, In other words
that it should be placed under entirely
new management
No one will doubt that as long as we
have banks like all other commercial in
stitutions. some will fail to be managed
successfully and we'll One great evil
which prevails in the management of
many of our banks today, according to
the examiners. is the eagerness or dis
position of the officers to pay large and
regular dividends. Dividends in numer-
GUS cases have a tendency to satisfy the
stakeholder, even of mismanagement and
unsuccessful books. The so-called div-
dend covers up multitude of sins on
defects. OF course, everyone believes in
dividends, but they also believe in safety
and stability first.
Examiners assert that when bank Is
first discovered to be weakening or to be
sailing alone on thin ice, its dividends
should cease at once and should not be
renewed until the condition of the nsti-
tuition has been improved. 1t is contend
ed that the management should strive In
every way to strengthen, instead of
taking away in the form of dividends.
every drop of their Institutions life
blood.
At the close of the civil war. General
John Spinner of New York. who was
treasurer of the United States, succeeded
in inducing the President to permit him
to appoint three women to positions in
his department 1t is true the women
were most deserving cases. as was ex-
plained at the time. and were assigned
to inferior duties, but the appointment
of those women served as an entering
wedge in government work and now more
than 5000 are on the government payrolls
in Washington.
Women are holding positions of various
kinds, from laborers and messengers up
to division chiefs and places of conf
dence and great responsibility However,
there Is one department of the govern
x~,oxt ,ybfcb on, nloyc buf ono Woman ord