The daily banner. (Cambridge, Md.) 1897-2008, 1921-01-25
BANK PRESIDENT SEES
BRIGHT THINGS AHEAD
President James =. Alexander Oi
The National Bank OF Commerce
. One OF The COuntry's Big Banks,
Ic Optimistic over The Future.

During normal times it is posi-
bIe for a bank TO pursue an indiyldu
al policy. Throughout 1920, how
ever, the situation has been such as
TO require the broadest vision, anC
the partial submergence of specia
! interests TO the general welfare. Be
fore the close of 1919 business re,
cession was clearly foreseen by oul
! officers. Early in 1920 we became
J. hc1uVinced that not only was it I'M
minent. but that it would be wlue-
spread III scope and of long duration.
! There were large classes of the busl-
ness community, however, that die
! not share this viewpoint. Whil1
thls bank, therefore could TGodit!
somewhat both its own course Of &C.
ton and that of its customers. i,
could not dicta-e and was con- pGilet
10 follow a middle course. CUstOTa-
els were early advised to prepare fol
tie difficulties ahead. A ConSelVa
tive policy was counselled IS 10 thu
disbursement of profits and d lIber
a policy as to the accumulation o.
T. serves against depreciation OF in
FontOries when The period of falling
. prices should set in.
Confident reliance on tuo Fedora
reserve system as q practical ant
efficient reinforcement of courage
, ous banking has made it possible t.
pursue a policy determined on th'
brOadest grounds of the geLera
financial welfare. The policy of this
bank, which has Throughout thi!
period been conservative. has not a
. any time, however, justified its be
ing regarded as q fair weather bank
Il has not turned its back on al!
good and solvent customeE, even
, though circumstances may have Of
i2red an excuse for so doing. Nj
business interest Identified with thls
bank has been refused such coop8
alton as its condition and prospects
nave merited, and general circun.
stances have justified. Snorlsieht
ed expediency might in some ih
stances have dictated withdrawal b.
support. but where the longer vieS
required that more, rather than less
support should be given to solven
concerns. this has been done.
The policy OF this bank with re
sre2t TO its foreign business has been
Hr"dicated upon the conviction tha.
The banking function is to finance
foreign trade where there is a rea
economic need for ii on a reciprocal
basis, but not 10 participate in any
fort 10 stimulate foreign trade ar
iticiaUy, or to extend America
creditor position beyond the point OF
teaConable confidence that the credits
al ultimately be liQuidated
The magnitude OF the service
which banking has rendered to busi
less during this difficult perioc na
.nerited large earnings. 1t is
doubtful, however, whether profits
n 1920, satisfactory as they appear
be have been commensurate witE
he responsibility and risk involved.
The future does not hold an ex
,ectation Of a return to the aonor
lal activity OF the latter part oi
"19 and the early months or l3.u.
md q return to those condit s
you'd not be desirable. A Il
part OF the proffts OF that peTi0u -
Jeen illusory, and a large part of the
apparent business development mas
)een unhealthy and out of proper
ion. Fortunately, results in bark
.ng promise in the main TO he per-
mauent in character. The year 1921
offers promise of a slow revival or
business on a sound basis. Great
Progress has been made toward the
direction of dangerous conditions
which could not continue. The
future will be beset with difficulties
but there is now a better founda-
ion for true prosperity tlan mas ex-
isted at any tlme since t"e outbreak
Of the war in Europe.