Pine Bluff daily graphic., 1915-03-12

i toners, issue such notifications of
 the order of January 18th as the facts
 now being developed may justify.
 Il am gratified to report that good
 progress has already been made in
 the matter of reducing Overdrafts.
 The overdrafts in national banks for
 the past five years have averaged ap- proximately twentyseven million
 dollars-the highest amount during this period being forty-seven million. been reduced to less than nineteen million dollars and it is believed that the amount can be very much further reduced if not entirely eliminated to the mutual advantage of the banks and their clients. The efforts of the department to abate the abuse of ov- erdrafts are based upo,. sound bank ing and business policy and afford no reasonable ground for complaint" This brings us to a consideration of the different elements entering into the creation of an overdraft. In or der to be explicit, I will classify over drafts as folloWs:
 Loans to customers with or without security;
 By country banks cn account of de- layed remittance or otherwise; Inadvertent through carelessness or lack of system;
 Those who send out checks expect ing to make a deposit before the check can be returned to the bank for payment; Chronic ovedrafts.
 Loans tG Customers.
 It has been the custom of some banks to make loans by permitting the borrower to overdraW his account rather than have him make note. I cannot determine 'the b3nker's ob- ject in this, unless it is to save sta |tionery and bookkeeping. Besides, it results in a loss of interest and a de- posit of part of the amount loNned awaiting it's withdrawal by check. From the borrowers standpoint It would be economy, as he would pc paving interest only on the amount used. This form of cverdraft is very obiectionable and I am sure will not be countenanced by either depart ment.
 Overdrafts by country banks: rms IS Ol oNCl oA NAC eAAS~' cannot be entirely eliminated without the possibility of resulting loss to the bank which has. the account. For lh- stance. you might have the account of an interior bank which ordinarily keeps a good balance, which rom causes beyond it's control had issued checks that had temporarily put It's account in overdraft on your DOCKS while it's own books would show a balance with you. This could De brought about by delayed mail, caus- ed by wrecks. washouts, etc., or stol- an mail pouches. Obviously, it would he against your interest to decline rsvment on a check drawn against this account.
 Oyerdrafts created through care lessness or lack of system:
 This, is a form cf overdraft that causes the greatest worry to the
 banker and incidentally affords wide field for campaign of educa- tion hy the bankers to the end that every depositor in bank shoula pe impressed with the necessity or nay ing his work so systematized tnal nc would always know the state ol ms bank account. This applies equally os well to the ladies, but we all know how nrone they are to issue checks as long as they have blanks. Agaln we have several lady deposltofs "hoee husbands also have an account Wlth ns and who give their wives a check each month to take care of household expenses. Occasionally the expenses ;eh
 ra grnatar than anticipated when -esults in an overdraft !,
 short time ago one of our de- nositors. who mad several certificates of pf9l deposit with us as we'll as check ing account, issued a check that over, drew ine a his account about $15.oo Would '. uM have been, good policy in refusing payments on this check? ,..1 Mos' mav em, .phatically nna,to,. no. ssllm, Mho is alao @ bor rower As security for thas loan lt possibly holds collateral, the value o1