The Washington times., 1929-06-21
BANKERS
TO WIDEN
SCOPE
By HARRY GUsACK
Financial Editor

The great Industrial progress OF
tl1a United States has made 1t neces'
sary for the bankers of America
Ia widen the scope OF the service
which they have heretofore offered
to the public with the result that
= bank today must be a well or
ganized machine to promptly and
efficiently handle the business of
its clients, according to Robert Y.
Fleming. president. of the Riggs
National Bank in an address today
before the District Of Columbia
Bankers Association in convention
at Montauk Beach, N. 7.
Mr.. Fleming. who retires az presi'
dent of the District Bankers Asso-
citation said, in part:
"It il my belief that the day OF
the one.man institution, whether
that institution be engaged In pank'
ing. raiIroading, an Industrial por'
poration or a public utility company,
has passed. The corporation or to-
dav. particularly with the many
consultations that have taken place,
has become so large that 1t IS pc
yond the possibility OF one lnoi.
vidual to keep in touch with al
of the phases of the activities OF ms
organization. This has led to the
formation of committees to handle
various branches of business; ana
II particularly true with respect TO
the business of banking.
s'The form of organization OF the
yUeII.run bank of today commences
with its board of directors, who are
charged with the responsibility OF
electing the officials Of the bank
and supervising the policy OF the
institution, In addition to the
board of directors, there is an
executive committee, a finance or
discount committee, trust COM
nnittee. an examining committee, ana,
n some cases, a real estate COM
ynittee. If the bank is engaged in
the business of making real estate
1Oans.
with respect to the finance or
discount committee, in commerciai
banks it has been found that TINS
committee should in the main be
composed of active officers OF the
bank. This is committee OF great
Importance and is organized, IN
most cases. with the president OF
the bank as chairman, and the vice
presidents, or senior officers, as
associate members. In some smaller
hanks. active directors who are close
al hand are sometimes included on
the committee. This committee
must always be in a position to
function, if necessary, two or three
times a day in order that the lnstl-
tuition may give prompt and eLt1'
scient service to it's clientele. The
speed with which business is now
transacted makes it necessary that
gauthority for the extension of credit
SHOULD be rather liberal with re-
gpect to senior officers of the bank,
sas experience has proven, with a
properly organized discount commit
Tee, that the full limit under their
authority will be extended only in
ceases of real emergency as the
9crdinary extensions Of credit, well
within the scope of the officers
authority, are presented to the dis
count committee for determination.
This committee must also be closely
tied in with the credit department
sof a bank, as the officials of the
credit department must at all times
sbe fully informed of the loan policy
of the banks administration, and
hear the discussions and the de-
terminations that are made, in order
sthat they may intelligently keep the
sofficials of the bank informed of
the condition of the larger bor-
Growers"