The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-08-16
BANKS TURN|N'G
The n GAZE
INWARD
81 RICHARD HATTON

Aty NAGnAMU MAAAWx
Recent appointment Of the new
konnsittee on unprofitanie business
sc the District 81 Columbia Bankers
Association, Of which President
Sohn Poole Of the Federal Aneri,
can National Bank retasn the
rhafrmansllip, brings to the fore
the Importance OF the work being
done BY banks generally in the
direction OF an analysis Of their busl-
ness.
some interesting figures along
the line of unpTofitab business
are given In recent issue OF
Trust Companies by Virgil ID Al,
len. IL. assistant vice president,
First Bank and Trust Company,
Utica. III. vi. who writes under the
title: Separatil the Wheat from
the Chaff In Acceptance OF Ac.
counts and says that we'll
known statistical organization after
i country wide survey OF represen'
fative banks has found that out
Of every 100 customers carrying
Y checking accounts, 80 have aver
age balances Of $1,000 and over; "a
have average balances Of less than
$1,000 and over $3.50: while 81
maintain Improbable balances. OF
the 50, accounting for those who
feio business with other departments
Of the bank, and those who may
be induced to use other services,
IS will remain 4 source Of loss.
This survey has shown that one.
third of the commercial department
customers Of the average bank
carry unavoidable balances and
cannot be induced to uee other
services 70 make up the deficiency.
There are those who claim ths
more than so per cent Of the aver.
age bank commercial den0sito rs
are carried at loss and perhaps
such figures consider the CONNER
cial department alone without re-
lation to savings. trust and sale
deposit services.
Sf0p-IsOss Charges
ST We take the most conserva-
tive estimate, however. the fact re-
mains that the bank that does
not enforce stOp-loss charges suffers
= constant loss Of earnings.
IN 1911 three banks in q large
Eastern city made an analysis OF
their commercial accounts and
began making stop-loss charges
q mat tlme the aveE 80 Oa 1872,
1900. sss,s - - IS la,,gs snnroxiSnates
= asfl T,,is srl1anre va brought
1900 II, - inrrs,se f., halaI1cea
81! ~ least. IS per cent Of their
customers, together with withdrawal
nf small accounts By deposit0rs who
were not willing to keep proftta bic
Last year the three banks men.
Toned xSEne7 an avefake 81 III.
s,,s,af reY cent on demand de-
noeifs ana liiirifIg the first three
$500 fi,s Ss;asv -srfsfenn "a Z is effect
sl,e efon-1nsS 81 arees enabled thesa
1arlss ~ earn an amount eolial Is
f,ei,. dividend requirements. When
~ sfop rs consider the fact that
hanks which give no heed ID the
question Of Improbable balances
earn between u per cent and w.
per cent per year on demand
money. or an aVeTage ~ PEI
cent e. Soln pareu VIII lhe psI
asnL Nnlc 49, $50 LilIse IT,
~ u
ss.ss 81 80 - 80. =
p 1870. !. ~. aee..s, -. q
Ss@.t-I- 49, t,,,.i,,n.- !,
:. go - 8 Il. Il. 4 81 ~
cAVes lnr RESI-
Vice President Albert 8. Galley,
Of the Lincoln National Bank viii
leave Tor month s vacation at Old
Orchard Ne. next Friday.
Cashier Frank SOWings. Of the
Bank Of Commerce and Savings,
has returned from vacation spent
partly on sea trip to Florida and
partly at his country place on
chesapeake Bay.
Applications Tor ;nemos ship IN
the Association Of Veteran Bankers,
e Is announced, may be made to
Inward e.. stone.
Gol- Wade =. Cooper, president
OF the Continental Trust Company
and the United states savings
Bank, who has been touring in
Europe, returning through Canada,