Pine Bluff daily graphic., 1915-03-12

The address on "Ove, drafts" a sub let considered by all the bankers
 ow in, session here as the one of
 eatest importance discussed at the
 eeting of Group z, was delivered at
 e forenoon session, yesterday, and
 as heard with concentrated interest.
 was delivered by R. H. Thompson, hshier of the Exchange National bank Little Rock, and was in full as fol- bWs
 The attention that the state banking apartment and the comptroller of
 e currency are giving to the matter
 overdrafts is ot more than passing
 terest. The national bank exami- ers have always been critical in ref
 ence to overdra1ts, but not to the ktent that they were positively for idden. Likewise, bank officials have ersstently discountenanced the hab-
 of overdrawing but seemingly with lt obtaining the end desired.
 It must be borne, in mind that there Ee times when it becomes necessary 5 grant an accommodation in the brm of an overdraft, but aside from De depositor who makes a practice
 overdrawing, each case must be Feated separately Before the state Rnking department became a reality bere were no restrictions placed up- state banks in regard to overdrafts hd almost every bank in the state ad it's balance book literally smeared ith red ink.
 With the advent of the state bank pg department have come many hanges, gradual it is true, but of lsting effect. Periodical examina- ons by corps of efficient examiners re responsible for these changes, one
 the most important of which is le endeavor of the department to iminate the ovedraft evil or at least lrtail the practice as far as possible. Gith this in view the commissioner st summer conferred with the comp ollcr of the currency resulting in ttive cooperation by both depart ents to obtain this end. In line with Ris policy the Mtter part of January e comptroller of the currency sent Ut circular letter to every nation
 bank in the United States to the feet that the granting of accommo- etions in the form of overdrafts is bjectionable and should cease en- rely.
 To accomplish this result the sub get had been taken up with the Rnklng departments of the various ates and they had generally agreed
 take the necessary action to secure p-operation in attaining the end de- red. The letter also requests the oard of directors of each bank to lopt resolution directing that no llcer or employee be permitted to ay or charge to the account of any eposltor any check of such deposit
 when there are not sufficient funds 1 nls credit to meet the same. This tter brought forth considerable pro Fst from banks throughout the coun- y which resulted in the comptroller pvlng to the press under date of Eeoruary Sth, the following state lent:
 This office has received from banks i various sections of the country any responses to it's circular letter
 January 18th relating to overdrafts., EGese letters largely commend the Gles Of the offlce to abolish an evil men in some localities had assumed rse proportions and which at times eused serious losses to many banks. kaay of the letters received suggest eat certain notifications of the or er De considered so as to prevent an- pyances which might follow a too Psa enforcement. These sugges- LoAs, which are based upon experi- elce of many banks under varying paaltlons, am pleased to have. II the office finds that way can fNlegally found to cure the abuse Of eerprafts and at the same time pre- snt 9ardships to those who may un- Itentiionally overdraw their account E against whose oyerdrafts the banks Psy be abqndantly secured. l shall, accordance with the earnest desire tae department at all times to give es fullest aRnslderation 10 the con u'enee of the banks and their GUS.