The Washington times., 1925-07-31
MACHINERY 0 T
MODERN BANK
EXPLAINED
Board of Directors Most Vital
Cog in Highly Intricate
Organization
By RICHARD HATTON

drawing checks, and most people
draw too many checks, especially
il their deposits are not of large
enough amount to pay the bank Tor
handling them. But very few per-
sons who patronize bank under
! stand much regarding the organiza-
ton of the institution. Few people
know, for instance. that the success
or failure of a banking business
often rests upon the board of di-
rectors because it is the board that
selects the officers and forms the
policy of the bank.
The officers, who have been Sc
lected by the board of directors, are
In turn responsible for the selection
of the other employees of the bank
and for their conduct and efficiency.
AS the contactl with the public is
largely through the subordinate en1-
ployes their selection and training
are matters Of the greatest I'M
portance. It is in the matter OF
training that the American Insti-
tute of Banking is doing such good
work in the financial field today.
Having a board Of directors,
officers and employees, the next ele-
ment in the banking structure IS
service. This is Of the greatest i'm
portance and It requires the closest
cooperation between the board OF
directors. the officers and the en-
ployes in order to serve the de-
positors and clients.
Treatment Of Clients
In outlining what the bank should
expect from its staff p. W. Denny,
In the Bankers Home Magazine
saws: "Tellers should use tact,
diplomacy, common sense and rea-
son in dealing with the public. bear.
Ing IN mind that customers Rave a
right to their opinions and should
be accorded intelligent, friendly and
efficient service regardless Of their
stations In Iife.'' The conduct pre-
Rcribed by the writer OF the ebove
Il one Of the most noticeable char
acteristics Of the officials of the
banks of Washington where cor
diality and service seem to be the
watchwords Of those who contact
with the public.
Bank tellers are the men In the
organization who receive and who
pay out the deposits and with
drawals. They are the men behind
the windows who always greet the
customer with friendly smile and
nelpIUI aIllluQSs
Then there is the discount depart
ment. The public sees little of
this part Of the machinery of e.
bank except in cases where there is
business to transact in regard to
notes. etc. Another department
which is not in evidences but which
is an important adjunct of the
bank Is the bookkeeping depart
ment. To this it is proper to add
the filing and statement depart.
ments and these are combinations
In the way Of service of the work
of the tellers.
Need, for Credit Department
Most banks maintain a credit de-
partment as a means of obtaining
reliable information concerning va
rious individuals, firms and cor
porations in order that they may
be in a position TO better serve
their customers. The transit de-
partment is one which seldom
comes to the notice Of the public,
yet its service is Of the utmost
Importance In facilitating the work
OF the bank by directing the flow
of checks. mail, lists, etc.
The collection department Is con-
cerned with the banks mail with
its many items OF Importance,
while the publicity and new bust
ness department is rapidly taking
a most important place in bank
organization. There is, also, in
most banks a bond department. an
exchange department ami very
frequently, a safe deposit depart
ment. In addition to these, some
institutions now have a travel de-
cial departments as those con-
cerned with Christmas savings, va.
cation savings and the like. All
Of these in addition, OF course, to
the regular savings account depart.
ment.
In addition TO the departments
and sections noted above there IL
an auditing department, a general
teller, general books and escrow
department and other interior
units, all Of which are cogs in the
great wheel that keeps the public's
= business with the banks moving
smoothly and, above all, safely.
Require Intelligent Workers
To maintain these departments
and, in many banking institutions,
there are several departments that
have not been mentioned, requires
the employment OF many trained
and experienced men and women.
The class of people required by
banks is far above the average in
intelligence and integrity and may
not be obtained without consider.
able expense If The functioning of
the institution is 10 be maintained
at a high standard. The personnel
and the machinery required to
operate the many departments of a
bank must all DC provided for out
of the earnings of the bank, ard,
while the ordinary depositor may
not realize 1t. there is a tremendous
expense attached TO the maintain
ance Of these departments.
They are all required. however.
for the service Of the public and
this is one Of the reasons why
banks cannot afford to carry any
great number OF Improbable &C.
counts. The question Of maintain.
ing the many departments OF a
modern banking institution Is
serious one and II is not unreason-
able that those who take advan-
tage of the banks service should
contribute in some small degree to
the upkeep OF the organization. In
general the profitable accounts en-.