The Washington times., 1924-06-06
WASH|NCTONT0
SET STANDARD
IN BANKING
City Is Ideally Suited to Be
Model, Haynes Tells
D. c. Bankers
BY HARRY GUSACK


WHITE SULPHUR SPRINGS.
w. Va, June 6.-Washington will
soon be the model banking city of
the United States, according to
Harry v. Haynes. president Of the
Farmers and Mechanics National
Bank, and president Of the District
of Columbia Bankers Association,
who addressed the convention here
today on the accomplishments of
the organization during the past
year.
considering our situation in
Washington in it's proper light.
there is no reason why we should
not have the model banking city
of the country, removed as 1t is
from the influences affecting COM
mercial, industrial and agricultural
activities" he declared.
Because Of the millions Of dol
lars paid to the Washington govern
ment workers annually. there is a
constant flow of funds which out
side influences do not REACH" said
Mr.. Haynes.
Closing Of ID. C. Banks.
Efforts to have Congress pass
legislation which will vest in the
President of the United States
authority to create a legal holiday
in the District of Columbia for all
purposes when. in his judgment,
the situation seems to warrant it.,
will be made by the association.
During the funeral of-the late
President Harding. the Washington
banks were the only ones in the
country to remain open,~ because
under the law they could not close.
The States. by their governors, pro-
claimed the day legal holiday,
which closed the banks.
"Of course, 1t is difficult to de-
termine what small account Of today
may be the substantial account of
tomorrow, so the spirit Of optimism
prevails in the bank and the account
is retained. But it cost money to do
this. That which is earned against
the account which is worth while is
In effect shared with the depositor
whose account will not carry itself.
10 this a proper way in which to
conduct a business. Is tho guest OF
business which brings such results
Justified?
Would Augment Service.
We have all to some degree been
guilty of this offense against our.
selves. We have built up the prac.
tice Of enticing the public to do
business with us, and MANY of us
have lacked the moral courage to
say when we have had enough. We
can hardly rebuke the public for
the part 1t has played because we
have educated it to come right in
and take what we offered and have
encouraged 1t to demand more. It
10 not my thought that we should
IN any manner curtail service. On
the other hand, we should augment
II In every way within our power,
but the expense should be borne
equltably by all. Have you noticed
that those whose relationships war.
ranted nothing demanded the most ?
In these times when, with oul
taxes' stationery. equipment, etc.
the successful conduct Of our bust
ness. presents increasing difficulties
When we should make every penny
count, loose practices should bt
avoided and Improbable business
ought to be entirely eliminated
we need not worry about the fel
low who has been sapping the
strength Of our earnings. He il
entirely capable Of looking out fol
himself. All we need to do is t.
stand shoulder to shoulder anC
undo the wrong which we have
perpetrated upon ourselves, BY
educating the public, in a concerted
way, that, in return for the serv
Ice rendered we should have, al
least, a compensating balance SUI
ficient to pay the freight" ANY
fair-minded depositor will go further
and see that a legitimate profit re
suits"
- In speaking of the banks takina
the public into their confidence Mr.
Haynes said:
"All banks, like any business con
Germ, are organized with the ides
of doing q successful business anf
reaping legitimate profits. To thi.
end, the stockholders subscribe t.
the shares and the funds thus RAISED
constitute the capital upon which
the bank provides the necessar,
equipment to commence business
The shareholder must content him
self to wait indefinitely for return,
upon his investment, which canno
come until the bank has been SUI
ficiently long in business to Great,
, from profits a surplus, in addition
TO patd-in surplus, as a protection
against losses, after which dividend!
may or may not be paid to him