Evening star., 1928-06-03
BANK CONVENTIONS IRON OUT
MANY BIG FINANCIAL PROBLEMS
Compensating Balance and Service Charge
Policies Children of Meetings Held for
the Past Ten Years.

ally presides at the dinner, assisted by
the president and chairman OF the
program committee.
Experienced Officers.
officials of the association, beginning
| with the convention days, have been
experienced in association work. Rota-
| ton is the order authority. Each sue
cessive president has served time, as
chairman of various committees, as
secretary and as first and second vice
| presidents. 1t is safe prediction TO
| say that the next secretary, who VIII
start climbing to higher offices with
the tenth anpual gathering, will be
| selected from among the men who have
served faithfully on several committees
and aided In making conventions sue
cessful.
This year the convention will be held
| at Montauk Point, Long Island, N. Z.
| The entire hotel will be given over to
| the Washington delegation and great
| plans for the entertainment Of guests
| have been made.
The compensating balance and the
service charge, with uniform forms,
| cooperative advertising and the present
| improved clearings system, are among
the berterments credited to conventions,
with better credit information and more
complete cooperation between banks.
The Compensating Balance.
| The compensating balance is very
| dear to the heart of the banking
! fraternity, even more so than the service
| charge. Indeed 1t frequently supersedes
| the latter and If 1t can be satisfactorily
! arranged, will eliminate all talk OF
| charges.
Some of our larger institutions only
mention service charges as last resort
| to a polite request TO increase balances
| on deposit. In this day of organized
/ effort bankers know all about their GUS
toners accounts. they know the number
Of deposits made by each customer, the
number of checks drawn during each
month and they also have plain
record of every service rendered by the
institution for the customer
In the days of every bank for itself,
ignorance was not only bliss but 1t was
responsible for many institutions passing
| by the board and of dividends cut down
or eliminated The great majority OF
banks, including trust companies and
savings banks make practice Of hav-
ing their accounts analyzed by experts.
/ Everything is taken into account, one
sheet from a big trust company showing
the following items: Monthly balances,
/
paid to depositor, total earnins while
on the cost of operations is shown, cost,
number of items, ledger postings, over
head. collections, special check books,
total cost.
With these items at the command of
the bank officials, there is small chance
for argument as to whether customer,
corporation or firm, Is worthy Of con-
sideration. an asset or an expense 70 a
bank
The analysis sheet or card actually
| totals the result of the finding-total
earnings. total cost, profit, excess over
average gain desired on accounts and,
If non-paying, the deficit
On the reverse of this analysis viii
be shown complete record Of the serv-
ice rendered, number of checks drawn,
| number Of deposits made, interest paid
bank, discounts. collateral loans made,
use Of safe keeping service, use Of for
eign exchange service. purchase of In
surance, use OF safety deposit service
and record Of every other service OF
the institution