The Birmingham age-herald., 1924-06-10
BANKS WARNED AGAINST PAYING
 OVER 4 PER CENT
Jackson Asks That Prac- tice Be Stopped After
 December
(state Capital Bureaul

MONTGOMERY, Ala, June 9.-De- claring that he has been informed that certain state banks are, in effect, pay ing customers in excess of per cent interest on time deposits, and State Su- perintendent of Banks A. E. Jackson to- day addressed a letter to all state bank officers and directors that fin our opinion, no man is worthy of being a . banker that is guilty of such acts"
 He requested every state, bank to pass a resolution that on and after December l, 1924, they will not. direct ly or indirectly, pay over per cent on any form of deposit. After that nate, Superintendent Jackson declared, action will be taken to have bank off cials or employees who exceed the 4 per cent limit discharged and put out of the banking business in Alabama.
 Warns Directors
 Superintendent Jackson in his letter called attention to the important duties of bank director, pointing out that Q director is not a mere fgure-head, and declaring that some directors have been found who did not in the proper man. ner fill their responsibility and ac- countability as directors"
 Superintendent Jackson's letter stated:
 .sTo the officers and directors of the
 state banks of Alabama:
 "We have been advised that there are certain state banks that are issuing certificates of deposit bearing per cent interest and paying the customer in cash a bonus of 2 per cent in an effort to conceal the fact that they are pay ing exceeding per cent on time de- posits. In our opinion, no man is worthy of being baner that is guilty of such acts.
 "We request each state bank in Ala bama to pass a resolution that on and after December l, 1924, they will not directly or indirectly pay exceeding 4 per cent on any form of deposit. This
 advise that if we do find any bank paying exceeding per cent interest aft CT December 1, next, I shall feel it my duty to use every means at my command to have such officer or employe of the bank who egree pay or does pay more than the rate mentioned discharged and put out of the banking business in the state. Failing in this, shall sum mons the bank before the banking board to show cause why the bank should not be liquidated as provided by law. -N4
 NOG rIguEo.nohO
 For the past year I have to the best of my ability tried. to impress upon the officers and directors of state banks the importance and duty of a director. A director in the meaning of the law is not the mere fgure-head as he so often proves himself to be, and that fact will manifest itself forcibly should any real trouble befall his institution. From recent experience with some direc- tors, we found that they did not in the proper manner fill their responsibility and accountability as directors.
 "A directors accountability to the stockholders and depositors of his bank is greater than that5Of any official of the state banking department. The duty of director is to audit the banks books and records that of an examiner is to satisfy himself that the books of original entry are. correct and that the assets found in the bank equal the amount shown by theSbooks, also to re- port such other matters of interest or of unusual nature to the superintendent of banks. It is the duty of director to know the condition of his bank.
 ''An audit of 8 bank is a duty rest ing upon the directors and the banks self-appointed examining committee, and, if for any reason they cannot per