The Washington times., 1926-05-01

OUTLINES BANK
CHARGES
By RICHARD HATTON

Putting the banking business
suuarely upon the basis OF any
other scientifically managed COM
mercial enterprise, President Victor
3. Deyber, of the Second National
Bank. in an interview today cover
lnR the question of q service charge
upon improbable accounts gives
some interesting facts and con-
illusions upon this important SUD
1ect which IS, today, receiving the
Attention Of financial experts from
one end of the. country to the other.
Epeaking of the constantly i1rs
oreasina adoption of the service
charge throughout the country,
preaident Deyber said that the
banks Of the Fifth Federal Reserve
District were almost consptcuously
absent from this list and continued:
s'Afore than one-third of the cities
having Clearing House Associations
have either adopted a rule govern
ing service charges, or the banks
Ii these cities have voluntarily
agreed to apply a small charge on
improbable accounts"
Zone of the most significant re-
cent DEVELOPMENTS In this connec-
tion," said Mr.. Deyber, "has been
the extension of the service charge
nlan to banks in small communities
and country districts. Our business
az banking" continued Mr.. Devher,
cannot be an exception to the basic
principles which determine the
progress and success OF all kinds
OF business, there must be a protl..
Every survey Of the checking
accounts OF our banks distinctly In
dicates that we are going on an
even break-50-5O--that Is. q profit
on half of the accounts and loss
Cd the other half. TOo many &C.
counts are carried at a loss and
are receiving too much service
without any compensation for even
the cost Of the service.
President Deyber believes that
the present. unsatisfactory condition
has been brought about by the
bankers themselves and declares
that they are the only merchants
that he knows of who permit GUS
torners to fix the price at which
goods tservice and credit the two
most important commodities In the
world today, are sold. The puo-
lic.v said Mr.. Deyber, "does not
know and could not be expected to
know the inside facts and the
technical side OF banking. The
bankers must bear the Responsible
Ify.g he declared, land not blame
the public
In adyocating the service charge
FOR the unprofitable account, Presl-
dent Deyber believes that one OF the
6rincfu1e elements to be considered
Is that OF re-educating bank pa
irons regarding their responsibility
to the bank.
In speaking specifically Of his
own institution, President DeyDer
aid with regard to the service
charge: Hour results have been
most gratifying. The mortality has
been very low and has occurred
almost entirely in the most unde-
sirabls and, often. dangerous ac-
counts. The major number OF ac-
counts have increased balances to
avoid the charge, and others have
gracefully submitted. thereby pro-
dncing q revenue rather than an
ont-of-hand loss"
Business On Increase
The dollar volume of business in
April, covering the period ending
April "a, is running 9 per cent
ahead of last year, as seen from
figures on check payments, accord
ing to the weekly statement OF the
Department OF Commerce. The dis
trfbution of merchandise by freight
during the first fortnight of the
month was 2 per cent greater than
III the corresponding period OF 1928.