Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-22
nv A. FLEMING.

State banks have been heavy suffer-
ers for some years and from diverse and
varied causes. Wheat and corn In the
West and Northwest, cotton and land
booms In the South. inefncient ofncia!s
and from defalcationS and too much
unsecured paper. Perhaps they have
also had their share Of poor manage.
ment and have lacked the benent OF
the wholesale advice Of the expert ex-
aminers of the national banking sys-
tenn, their criticism and perhaps their
warnings, all of which are liable to
aid a bank in getting on the right track
and then holding the road.
It would be scarcely fair to charge
direct laxity in the examinations OF
State officials, and yet the great num-
Der of failures in this group have DEM
onstrated the elimination OF years OF
decadence in many OF the banks that
have gone-the result of an accumula-
ton Of banking sins that would not be
permitted in a national institution.
A radical change is needed In the
method of naming the commissioners
of banking In many Of the States.
In "a States the governors make the
appointment direct-political. positions
and not necessarily Of men fitted for
the practical work OF examining imam
cial institutions
Elected by Popular Vote.
In Illinois and Florida bank exam
liners are elected at the general cleo
lions and it Is not likely that inexperi-
enced men will have any chance at the
hands of the public.
The reader will cite numerous fall
ures in the latter State as an evidence
Of the lack OF efficiency in the Florida
method Of choosing an official. but there
is not another State in the Union that
has met the untoward happenings that
have brought about bank failures and
individual and business distress. The
worst of all the calamities that have
followed one on top of the other was
the great boom and its resultant ex-
plosiop.
In Mississippi the commissioner is
elected by the banks and then named
by the governor. Mississippi banks, 1t
will be recalled. did not attract much
attention throughout the panicky sea-
son in the South. The State corpora
ton has the supervision Of all incor-
porationS, including banks, and also
names the commissioner. In oregon
the State Banking Board names the
supervising official. In Tennessee the
Bankers Association submits a list of
five names to the governor and he then
selects one for banking commissioner
Eleven States reported no banking
experience was required for the posi-
ton of bank superintendent, while %
require experience in banking Of three
to fve gears.
It w0ifd seem as II the non-experi-
enced man would make a very poor at
tempt at filling the office.
Comparatively recent banking dis
asters given general publicity have
created q very general demand for re-
L.. e. n,al
changes will undoubtedly be made when
next Legislatures consider the matter
State Banks in Big Merger.
Northwestern State banks are re-
ported to have formed gigantic merger
40 banks in all having agreed to join
the First Bank Stock Corporation, q
Minnesota organization which will draw
its members from the ninth regional
district. Control Of the individual
banks Is to be acquired either through
outright by the parent institution. The
affiliation is said to include IS banks
in the leading cities of the Northwest.
The First National Of Minneapolis and
st. Paul and their subsidiaries are said
to be connected with the new venture
and three Montana banks, in which
John D. Ryan, chairman Of the
Anaconda copper Co., Is interested.
Lyman Wakefield, head of the First
National of Minneapolis, is named as
vice president Of the First Bank Stock
Corporation.
He is quoted as saying:
I'VE believe that we have seen this
territory retarded in its progress, be-
cause Of an unsettled and urSatisfac-
tory general banking condition brought
about through economic conditions and
not through the fault of the bankers
themselves As a means of correcting
the difficulties Of the past, it has
seemed that II we could bring about
an advisory organization, properly
manned and with sufficient banking
experience to offer to all the individual
units making up the chain, expert
advice and assistance in the manage
ment of their local banks, that there
could be no question as to the benefits
that would accrue to the territory as
whole.
"Our entire plan of operation has
been formulated with the definite in
tention of retaining In the local COM
munity the strongest possible local in
terest in and control over the affairs of
their bank, and the organization Of the
central ONCE Is being set UP with two