Evening star., 1928-10-07
ID C. BANKERS ASSOCIATION
TO OPERATE CREDIT BUREAU
Object of Move Is to Restrict Evils Of
Double Borrowing-How Public Rela-
tions Committee Aids Banking.
nv T. A. FLEMING

BY T. A. FLEMING. +.
It is the intention of the District of
| Columbia Bankers Association to start
in the immediate future the operation
of its new credit bureau. In time II
| is expected that, with the cooperation
of the various banks, this bureau VIII
! be able to function, with complete Satis-
| faction in the matter OF giving creolt
! information as to the standing and oor-
rowings Of the business interests oil the
| city.
At first no effort will be made to give
ratings but the bureau will confine its
! operations to bring to light any multi
borrowings Of the city.
It has been demonstrated in other
cities that business men frequently use
more than one bank in securing credits.
This may be a matter of no Importance,
but where credit is obtained at several
banks without appropriate collateral,
| the matter is of vital import and should
be known to the banking fraternity
| that they may be in position to re-
| fuse further extension of credits. Not
only that, but that the banks that have
warning to seek repayments on loans
that have been duplicated.
Figure 1t Up Yourself.
| At pre-merger agreement figures, ten
| shares of Farmers g. Mechanics Ma
| tional Bank stock was 1lominally worth
| $3.50 and six shares of Riggs National
Bank, $3.50.
A cash payment of about $40 share
! to the Farmers g. Mechanics Bank
! stockholders would make 1t fairly
even trade, ell things considered.
New stock will be issued by the Riggs
| No To foko rare of the George
town stock by the exchange route, and
| the merger when completed will greatly
| enhance the position of the Riggs Ma
tional Bank.
Farmers & Mechanics stock is today
worth $340 a share, bid; Riggs Ma
tional is quoted at $5SS bid. The pros
pect of the latter bank stock Is much
more valuable.
Department Of Public Relations.
Herewith is presented another story
on the activities and methods OF
large local trust company. Heretofore,
| in this column, has appeared The Di-
rector of Personnel" 1.-THE Proof De-
partment," 1.-The Auditor" etc..
The present article is one OF the
most interesting of the series, covering,
as it must, the upbuilding OF relations
and the continued good feeling between
its customers and the banks.
Public Relations.
In keeping with its policy to be a
leader among the progressiv banking
institutions of Washington the Amer
ican Security q Trust Co., through a
committee of its officers, made care
full survey of the larger and more sue
csssful banking institutions OF the East
and Middle West.
one of the resultant effects of this
study was the establishment in 1920 OF
a new business department, the pur-
poses of which were -fold-nrSC,
10 enable the institution to better serve
its present customers; second, to cause
a closer contact between the bank ana
| the general public, and last, to en-
courage and invite new business to the
bank. :.
After several years of operation 1t
was decided that as the primary opJect
of the department was not that OF op-
training new business the name should
be changed to one embracing all oi
its PURPOSES, thus the adoption OF the
name department of public relations,
The department stands today as the
only complete extension department. IN
the city and a brief description OF Its
work may prove interesting,
Central File.
Practically all of the functions OF
the department are based upon a CEN
tral information file. This file contains
a complete list of all Of the customers
of the bank at the main once ana
four branches and the departments in
which they do business. This 1nfor-
nation is recorded on a specially pre-
pared card and contains besides the
| name of the customer his business ad-
dress, residence address, business, IN
PRODUCTION, location OF former bank
account and other existing accounts,
initial deposits, and In proper order
| the date of opening, department and
branch with which accounts are main
| tanned with the American Security. On
the reverse side there is provided space:
| for average balances over period OF
| 10 wears and for such credit infornla-
| tion as desired. At the present time
the file contains approximately l20,-
| 900 cards filed according TO the l.. 3.
automatic index system.
Daily records of all new and closed
accounts In all departments are sent to
this file and recorded. The file Is the
most logical and convenient place to OBJ
tain a list of preferred customers for
| the purpose of sending promotional kt-
| erature. Likewise the credit depart
ment is able to obtain complete infor-
nation regarding the banks clients in
answering credit inquiries. This proven
a distinctive service to customers in
that they are not inconvenienced by nu-
merouS checks and rechsckS by tho
bank in seeking credit accounts. Nu-
| merous calls upon the file are made
daily by all departments of the bank.
From this source changes OF address
and death notices are routed through
out the institution and careful check
is made to see that all interested de-
partments have made the proper nota-
tions.
| Record of New and Closed Accounts.
From the reports sent to the central
| information file record Is kept daily Of
the trend of the company's business,
with respect to numbers of accounts. At
| the same time a tabulation is made OF
! the reasons for opening and closing all
accounts, together with the initial de-
pcsits and the amount of funds with
drawn at the time of the closing Of ac-
counts. Weekly and monthly reports
are made to other departments of the
bank in this connection.
| Realizing that the keeping OF business
| is lust as essential as getting new buSi-
! nesses, this record has proven Of great
value to the company. especially with
respect to checking and savings ac-
counts.
In the case of withdrawal, where
E1nono1o1 H1Nh i0t