Evening star., 1928-04-06
INVESTING ADVICE
URGED ON BANKERS
John Poole Tells Savings Par
ley Duties of Banks to
Their Clients.
BY EDWARD c. STONE.

AliIGIlCdu NhtlOllal ballk OI tAliS CITY,
believes that all banks should give their
customers the most complete. definite,
unbiased and helpful advice possible re-
garding any investment about which
they make inquiries and in which they
propose to place their money. TacklinS
this highly controversial subject with
vigor at the, southern regional savings
conference at Richmond yesterday
afternoon. Mr.. Poole discussed the SUBJ
ject How Far Should Bank Go in
Advising It's Customers as to Their IN
veStmentS." and reached the following
eight conclusions:
/. It should be the pleasure of each
bank to use every facility at its conf
mand TO serve its clients helpfully with
investment matters, even though such
service does involve large responsibility
and much skill.
2. 1t should be the policy of each
bank to procure through the most re-
liable sources ell available facts regard
ing securities inquired about, and give
that information on q strictly lmper-
Sonai basis, generally without personal
comment or recommendation.
8. The reiterated slogan, Consult
Your Banker Before Buying Unknown
Securities" creates a definite response
bility. 1t should have the consideration
Of every bank official because ind
yiduals who go to a bank OFFICIAL expect
to receive the diSintereSted advice OF en-
expert in investments. Hence, bank
policy should be formulated. This can
be done by holding meetings of the eX-
ecutives for the specific purpose OF dis
cusSing the advice which should oa
given to clients. calling outside men
into these conferences to help them.
Should Save DepositOr.
4. Bank ofacers should save credu-
lous depositors from throwing their
money away on fake securities whicn
should be banned by blue sky laws.
This is too obvious to merit further
comment.
s When customers request informa-
ton regarding some particular stock, 1t
should be the policy of the bank TO OBJ
tain a written request from them, and
thus be able TO show that the bank did
not pick out and recommend certain
purchase for people are prone to criti-
cize the bank whenever an investment
goes wrong.
s. The bank should guard against
recommending another security when q
customer calls to make a specific in
quiry, because fake statesmen make capt.
tai of such tactics by saying TO their
prospects, 'fYou 60 to your bank and
they win knock this investment and try
TO sell you one in which they are in
tereSted," or they viii S2y, You go 10
your bank and they viii knock this in
vestment because they want to keep
your money on deposit for their own
gain" And when this happens. what
can the little lamb do? Get stung, If
he iS c1YIiihia iikA Sa many
Inquiries on Suspicious Cases.
Z Banks should refer inquiries about
all suspicious cases to the Better Busi-
neMs Bureau and thus avoid liability
for giving cut reports that might be
incorrect
8. While II is the safest course to
offer information only instead Of ad-
vice, the great mass Of investors need
competent counsel. because they do not
themselves know what to buy,
Personally" Mr. Pole concluded, Il
believe in giving advice to those who
obviously need 70 be guided. but advice,
when given, should always reflect our
best Judgment based on the most re-
liable information we can obtain. max
ing It clear to the customer that what
We advise is what We believe. not what
we know. The risk of the market must
be assumed by the investor. These are
modern times, and service is the key
note"
Discusses Savings Segregation.
Another local banker, r. p. II. Sid
dons, secretary Of the American 6ecur-
ity q. Trust Co, discussed Should Saw
ings Accounts Be Segregated and Put
Under Legal Restrictions as to In
yestments" Mr.. Siddins said that the
savings bank official believes whole
heartedly in segregation, but TO the
commercial banker segregation is not in
accordance with his views. He looks
at the funds in his bank in their en-
tirety and does not believe that any par
tieular divisions should be made in
respect TO depositors when proper pro-
lection is being afforded.
The question at issue, MIR. Siddons
said, Was whether a savings bank de-
poster should be a preferred creditor
over demand deposition. He quoted at
length from the laws Of various States.
the discussion being highly technical.
He called attention to the great changes
In so years In savings accounts. For
merly they we're left Ia for long periods,
while some accounts these days are
made almost as active as checking ac-
counts. Keen competition with other
investments causes frequent withdrawal
Of funds
Brokerage Employees Gisen Bonus.
In appreciation of the efforts and
work in q market unprecedented for
volume and average values in the his
tory OF this or any other country. all
employees of the firm Of Wright, Slade
81 Co. members Of the New York Stock
Exchange. New York Cotton Exchange
and Chicago Board OF Trade, with
Washington Offices in the Mayfiower
Hotel, have been given q bonus Of one
weeks salary. according TO statement
made today by william A. ScuIly, resi-
dent partner.
Bank Declares Dividend.
The directors OF the Washington Loan
81 Trust Co. at their meeting yesterday
afternoon, declared the regular quar-
terry dividend Of per cent, payable on
May 1 The hooks will be closed from