The Washington times., 1911-12-03

has come to be a more important factor
In the banking business than he was in
the closing days of the last century.
There are banks In existence today
where the personal element dominates
Just as much as In the years gone by,
where the president is practically the
bank. and Its officers as well. and where
directors have such confidence In the
head OF their institution that they do
but little directing.
directors ought to have the most COM
piete confidence in their choice for presi-
| dent OF bank. but at the same time
they have duties to perform, matters to
oversee. Investigations to make, and
records to approve. No man is infalii-
Ole. and an honest president will well
come the cooperation ana assistance of
MS directors. 1t has come to the time
In this. the Capital City, wnere directors
must direct or bear the burden of any
onus arising from failure. The bank ex-
aminer OF today demands the presence
OF directors in session when he tells
them or the things that he has found
IN their banks, sometimes opening their
eyes 70 errors Of judgment or lax meth
oos' or Questionable loans they wot not
OF. And they must stand the gan and
agree TO remedy the defects or the
comptroller OF the Currency may take a
hand In the game.
Then. too. there are directors who
when called together to listen tn Mr.
Hann's story have the satisfaction OF
hearing enough. to make them pat their
officers and give them that ever desir-
able praise. Wen done, good and faith
full servant
Directors Of financial institutions
should be broad and liberal minded men
OF nigh character and standing, who
| command the respect OF the community
In which they live.. ,-.. .. ..-..--....-...
An ideal board of directors would be
one whore the members are actively
engaged in commercial or manufactur-
Ing enterprises. and familiar therefore
with credit conditions, 90 that when a
request Tor loans comes from any par
ticulsr line Of trade or commerce.. some
one OF the directors would be in posi-
on the matter. board Of directors Of
this stamp Of men would be more than
likely to enjoy large line Of deposits
as the eonadence Of the various com
they knew and respected would be a
great drawing card for the bank.
There is growing feeling In some
be borrowers from their own banks.
But II mans fellow directors lack
confidence in their associates ability to
meet obligations. II they expect him to
season for the bank. to carry his own
deposit with the bank. why should he
not be accorded the same privileges as
the other depositors. no more, no less
requirements as to security. indorsers.
ETC.. and confines himself to the limita-
tions which usually obtain in such mat
ters and does not try to make terms for
hot hn a tpav 1lrovs A,,lA ,nf
give to others, there is no good reason
vhy he should not use the banks funds
at the prevailing rate Of interest.
hsnks esn ss,1 dire stots ARE are not to be
cies to be filled on that board the
Each director in a bank should feel
on the board and equally entitled to
the fullest Information as to conditions, |
irrespective of the extent Of his hold |
lngs. He has qualified. and his vote
He should exercise his right to vote,
even though he be one alone. on any
proposition that does not meet with
his approval The directors are the
they may advise or direct concerning
the general policy. but they should not |
assume the duties Of officers, leaving
the details to their appointed agents, |
the executive force.
The United States Trust Company will |
occupy It's elegant new banking rooms |
In the Southern Commercial building ]
within another ten days.
In answer to a correspondent who !
asks information in connection with the |
peculiar bids that have appeared in the |
quotation list Of the Washington Stock
Exchange on Georgetown Gas and en- |
other matters in connection with that |
corIoration. !
1t Is generally admitted that there is |
very little stock OF the Georgetown Gas |
Company that has not been gathered
In by the Washington Gas Company |
perhaps against q time when the lesser |
institution shall absorb or be absorbed |
by the greater. Two brokers have
played ducks and brakes with the bid |
price on change; shifting their bids and |
hoping that some day they might be |
able to influence some holder to sell. |
But al. the time the asking price hug
been around 125. Sales count on the |!
exchange, and they count more than /
quotations. Frequently on inactive |
stocks quotations will be very wide |
apart, so much so as to give no indi- !,
cation OF value whatever. And yet bid |
and asked prices are necessary in all
markets.
The company Is about to issue a num-
ber Of bonds to take up debt obliga-
tions with banks.
AS announced in The Times en- Fri