The Washington times., 1911-12-17

interest has become factor with
washington depositors
Comparisons between December
and September are not o fair test, as
the dates represent entirely different
seasons OF the year. The national
banks have lost much Government
money, and both the trust companies
and national banks have lost deposits
through the heavy drafts of merchants
In caring for their holiday purchases.
Savings banks had not felt the holiday
withdrawais as they have since Decem-
For once the trust companies have
passed the national banks In indt-
vidual deposits; also in capital, surplus,
and undivided profits. With two new
trust companies coming with S3,0Q0,QOoi
capital, 1t looks as II the national trlrt
situations would have to be satisfied
with second place. Va
On December national banks had,
panies s si ana SAVINGS tuaSt bsnRs
I'll, S22, ITO. Total, $63067,2 ~
Capital and surplus figures follower
savings banks. ................ $1.gS. 80
National banks. 10, 799. 5I3 IS
Trust companies. II, 80 Az
Total ....................... 27,9Zl
Undivided profits of the institutions
shows large percentage In favor Of
the trust companies. ~
Trust companies. ..............$ 81, 81, SAG "a
savings banks. ................ 318, $40 e
National banks. ................ 737,6l2 y
Total ......................... 2,os7,7so
Loans show the national banks slight
ly In the lead: 9di
Trust companies. SO, 1851, 10 :
National banks. 22.Sg0, 565 81
Savings banks................ 10, 1G3, AZ
Total ......................... 56,o75, 1863 .,
Matters are unusually quiet in bank
ing circles. They may break out again
January 9, when many bank elections
are in order.
The Bank of Coney Island has intro
duced a novelty in bank statements
that may we'll be tried by other insti-
buttons. 1t is nothing more nor less
| English that the layman may read and
understand. ...f.
we have so many millions Of
obligations when called upon we have
| so much cash in vault, call loans for
| such an amount amply secured that
are payable immesdiant eIs, ~, certain
readily convertible into cash; time loans
average Of not more than thirty to
eheek ia othep bank o and rsa estate
loans aggregating SO much, MATURING
in such and such a time. or these
loans on time, commercial paper hold
good that rediscounting. or borrowing
the money loaned thereon from other
| banks, would not be hard matter,
! rediscount arise. Back Of the assets
OF the bank stands the credit Of the
bank. its. officers, and directors-n
D TsTa p msps Who sHs s Rsnfr Sf ss
! Of loans, overdrafts, checks for clear
| ing house, due to State banks, bonds
borrowed. bills PAYABLE, etc. They have
! right to know just how you stand
| II would he wise To tell them.
Plenty Of white space around your
| bank advertising and generous use
Of space on the page makes the adver-
| A recent decision Of the appellate d.
I vision Of the supreme court of New
York State, indicates that directors OF
| financial Institutions cannot be held TO
| the strict accountability that has been
| accredited as one of the duties OF the
| position.
| Directors generally are not supposed
| to have knowledge of the details Of
| business management Of the corpora
| ton which are not submitted to them.
| 1t is not the custom for directors TO
search the individual transactions in a
hank that they may learn the respon-
sibility of debtors or the nature or value
of the collateral. This they ertrLst,
bank. who are carefully chosen and paid
for their services; then to executive COM
mittee or finance committee, chosen for
special work OF this character and to
| which committee must be reported all
| transactions once week.
But directors are not relieved of all
responsibility. They must make diligent
| efforts to attend meetings. stated ami
! special. II at these meetings Informal
| :ior should ccme to them of irresIr-
laity in the proceedings of tha bank
| they are bound to correct them. They
! are bound to use every effort that a
| prudent busine SIS man would n the con-
duct of his business. with the right to
rely on the vigilance Of the exc 'utk"
committee t. ascertain and repors ir-
Irregularities. And this custom Is the
outgrowth of the necessities of the ut
| uation.
| "Business men of New York haze
large business enterprises in which their
interest lies and to which their first
| duty belongs. If they were compelled
| to watch the detail Of each corporal
OF which they are directors, 1t would be
| impossible for them 10 ACCEPT such
trust. One of the best assets .c n cor
| poratjon Is the advice and assistance OF
| men OF large business experience and
| connections on its board"