Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-21
MEN AND MONEY
BY NJ. S. Rukeyser.
(CnnVriPhf 1907
Copyright. 1921

What magic formula transforms an
ordinary mortal into a banker?
Banking, like religion, has its
rituals and its mysterious formulas.
Is every employee of $4,000 banks
ana trust companies a banker? Or
IS this distinction to be reserved only
for presidents and other senior
officers?
Although the colleges and the uni
versities now give special training
In banking, thiss educational develop
ment IS relatively new Most bankers
IN places of power learned the essen
uais in actual experience Many are
graduate business men. The banks
through the support of the American
institute of Banking are encouraging
clerks and runners to get systematic
training in the art and science of
banking
The commonwealth of Nebraska is
the first to impose on the State a
responsibility for sitting the fl from
the unfit among aspiring bankers
At the suggestion of the Nebraska
State Bankers Association the State
legislature enacted a law requiring
It's bankers to be licensed as a means
of promoting higher standards in
banking.
Novel Bankers Law.
The novel law provides "Execu-
tive officers of banks shall be per-
sons of good moral character, known
integrity. business experience and
responsibility. and capable of con-
Quoting a bank on sound banking
principles. No person shall act as
executive officer of any bank until
such bank shall apply for and obtain
from the department of banking a
license for such person to so act.
II the department. upon investiGa-
ton, shall be satisfied that any
active executive officer of a bank is
conducting it's business in an unsafe
or unauthorized manner or is en-
dangering the interests of its de-
positors or stockholders. the bank
department shall have authority to
revoke such license"
Old-fashioned bankers in the East
will no doubt look upon this departure
as another example of meddling. but
there is a special reason why Ne
braSka should take the initiative. for
it guarantees the deposits of State
banks.
Bankers generally accept the prin-
cipie of State and Federal supervision
of banks. Now Nebraska will examine
bankers as wen as banks.
The large number of banking fail
ures in the Central West in the last
five years led to a demand for better
personnel in the banks. writer on
the subject in the Journal of the
American Bankers Association re-
ports that bankers estimate the cause
of failures as IS per cent due to in
efficient management or administr9-
ton.
Extending Old Principle.
Other States license certified public
accountants, teachers, physicians. den
lists and lawyers. Nebraska merely
extends an old principle. Extensions
in other directions have occasionally
been urged For example TaIcott
Williams. director emeritus of the Co
lumbia University School of Journal
ism, advocates the licensing of jour
nalists.
Incidentally. the State of Nebraska
claims credit for having the only
workable law guaranteeing bank de-
posits-superior to the guaranty law
in Kansas, Oklahoma and North and
South Dakota, which resulted in dead
locks.
In the 15 years that the Nebraska
law has been in operation 1872 banks
have suspended. Of these, So con-
tinued to operate and 116, with de-
posits totaling $4,000 900. have been
liquidated. G. NJ. Harger is authority |
for the statement that the assets of |
the failed institutions paid only about |
one-half that sum, and that more than |
s12, 000. 900 was paid from the guaranty |
fund maintained by compulsory as |
sessinent of all State banks State |
banks are subject to a maximum an |
nual assessment of clio of per cent |
Of the guaranteed deposits.