Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-01
THIS YEAR MORE PROFITABLE
THAN BANKERS HAD EXPECTED
Centralized Banking Power Menace Out
lined Service Charge Essential to
Sound Financial Accommodation.

line through chicanery of any one OF
several officials or through duplicity Of
the head of the system.
Individual banks must keep their
states clean in order to do their share
Of the business and make profits, TO
watch credits closely and to adopt some
Of the modern methods of avoiding
doing business at loss
Fear Chain Banking.
Mr. Veigel holds that If independent
bankers do not get together in mergers
referring TO the smaller institutionsl,
If they are satisfied with present con-
ditions and do not correct the evils Of
today, We will have chain banking.
1t has been the record of number
OF chain banks in the past that dis
honest officials have placed paper in
which they were interested in banks. in
which they control, interchange bust
ness and do not conduct the various
banks in the system as separate en-
titles.
The Minnesota commissioner holds
that about 200 consultations are
needed in his State, Minnesota. There
is an average of about one consolida-
ton week being made now. He urges
cooperation among bankers advocat-
ing many of the very things that have
been brought about in Washington
through the local bankers association
Weak banks have been generally
Weeded out OF this city, but there are
ample opportunities for mergers here
AS before stated. they are not likely to
occur in the immediate future.
There is absolutely no good res-
son." says Mr.. Veigle why bankers
should not charge for all services. The
public is more interested in sound
banking than in free service Do not
buy new accounts by making unde-
sirable loans to get them. Do not buy
paper because the rate is high. Split
parts, that is to say parts of big mort
gage bonds have proved undesirable.
especially if in default, as it is diff
cult to get all of the interested parties
to pay their share of taxes, foreclosure
expenses, etc. Loans should be charged
of when past due, and should not be
allowed to accumulate in the hope that
they may be paid off some day or from
future earnings. Bad practices should
be nipped in the bud.
Some Rules For Safety.
The commissioner adds a few rules
for better banking:
All banks should have secondary
ESSSTVSs WHICH 10 uQuiu dIlQ UII WHICH
money can be raised quickly, II neces-
sary
Banks should not borrow money UNI
less absolutely necessary. and should
not make many new loans until their
bills payable are eliminated.
Other real estate is frozen and ur-
desirable asset to have in banks. Every
effort should be made to sell the same
and at least 10 per cent should be
charged of each year. Taxes on other
real estate must be paid. or the other
real estate cannot be carried az an
asset.
Ten per cent should be charged OF
each year for depreciation on the fur
niture and fixtures account.
All property and papers belonging
to the bank must be in the name Of
the bank, and, when necessary, record
ed.
The borrowers should be educated
to the fact that their paper must be
given attention when due. There is
no excuse for the large amount Of past
due paper found in some banks.
The banks's statement must show
every liability of the bank direct, or
contingent. The old practice of a few
banks discounttng notes without re-
course and then giving an oral or writ
ten promise to protect or repurchase
the notes, is now violation Of the
law
All bankers should take the ex-
aminers and the State banking depart
nient into their complete confidence.
The department and the examiners are
provided TO help the banks, not TO EN-
barrsss them.