The Sauk Centre herald., 1929-12-12
URGE TO DECREASE
ALL FROZEN LOANS
Minnesota Banking COmmis-
siOner Proposes Liquida-
tiOn by Payments
NEED ACTIVE officers
Veigel Says That If Board OF
Good Directors Direct At
fairs, Bank is Good

carried by banks in the Northwest
was urged upon bankers attending
the Tri-State conference on better
bank management in Minneapolis,
recently, by A. j. Veigel, commits
sioner of banks, of Minnesota. Mr..
Veigel suggested that bankers, by
insisting upon periodical payments,
even if of small amounts, out of
salary or cream checks or other
current income, would not only
help their banks but render a SER
vice to the borrowers as well.
His remarks were made as leader
of the discussion of the duties and
responsibilities of bank directors.
The conference was held under the
joint auspices of the State bank
ers associations of Minnesota,
North Dakota and South Dakota.
Mr.. Veigel stressed the value and
necessity of active participation in
the affairs of banks by their boards
of directors. The extent Of their
activity depends to a great ex-
tent upon the officers of the bank,
Mr.. Veigel said. The full text of
this address follows:
We in the department have often
wished for a chance to talk to all
of the directors in State banks, as
there are many things we would
like to say to them. We, however,
have not been able to find a way of
doing so, and we have, therefore,
tried to reach them by printing a
folder defining the duties of direc-
tors; by having the directors meet
with the examiners after each ex-
animation, and by having them
come to the office for conference
in cases where there are serious
criticisms.
There are probably not many di-
rectors here, today, except those
who are also officers.
I will, therefore, devote the few
minutes allowed to me in discuss
ing what officers should do to get
more help and cooperation from
their directors.
If bank has a good strong board
of directors, who actually direct,
We usually find good bank. Many
directors are not familiar with the
details of banking, but they are
usually good on credits, and that
Is the most important part of their
work.
Many directors will not take the
initiative and be active in the man.
agement of the bank, but if the ac-
tive officers invite them to do so,
they will usually respond.
The officers should insist on
board meetings at least monthly.
They should use the form, Month
ly Report of Active Officers to Di-
rectors," so that the directors can
see at a glance the condition of
the bank and make comparisons
with former reports.
The discount committee and also
the whole board should be con-
suited freely before new large loans
are made.
They should be made to feel that
nothing is being kept from them
and that much is expected of them.
If all officers adopt this policy,
some of them at least, who think
their directors know little about
banking, will be surprised at the
results.
The president of one of the large
country banks in Minnesota told
of his experience, when he was
young and first assumed the man.
agement of bank. He thought
he was supposed to know more
about credit than the directors. If
a loan he made was criticized by
some member of the board, he took
it as a direct criticism of himself,
and would say, eff that loan is not
paid, will pay it."
One member of the board would
always say, Make a note of that
in the minutes"
After paying number of such
loans himself, he decided that the
members of the board did know
something about credit, and he is
now consulting them freely before
loans are made.
Officers will also sleep better,
If they share the responsibility of
making loans with the directors.
You want all the information pos
sible before loans are made and
many minds are always better than
one.