Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1929-09-05
BANKING FINDS THE
WAY TO SAFER ERA
BY FRANK w. SIMMoNDS,
American Bankers Association

In considering the banking situa-
| ton throughout the country, the fact
should be kept in mind that while one
bank in ten failed during the past
eight years, it is far more important
that nine banks out of ten, operating
in the same general field, serving the
same communities and meeting al
most identically the same problems,
weathered the economic storm of re-
adjustment successfully. This achieve
ment cannot be ascribed to any ele-
ment of luck, but rather to consistent
adherence to sound banking principles
and profitable practices. Through
worthy and efficient management they
met the issues and problems confront
Ing them, squarely and successfully.
Banking is regarded as the keystone
of our entire business structure, hence
bank failures are rightly regarded as
intolerable public calamities that must
absolutely be prevented. The three
major detectives of all inter-bank or.
CARNATIONS, whether local, county, dis
X,
banking safer for all concerned and,
through increased efficiency in bank
management and supervision, to lessen
or eliminate all forms of losses SO that
greater rewards may accrue to bank
ing and better service TO the public.
There is definite evidence throughout
the country Of strong and growing
spirit OF cooperation among bankers
and banking organizations, which is
resulting more and more in strength
ening the work Of all.
Clearinghouse associations among
banks in city, county or district groups
undoubtedly constitute the chief line OF
defense against bad banking practices.
They have demonstrated that they are
the principal factor in bringing about
reformation In banking regulations,
improvements In banking methods and
the observance Of sound banking prln-
ciples. For many years this primary
purpose of q clearinghouse association.
was the clearance OF checks, but todgy
It is the clearance OF banking ideas
and the solution of banking problems.
clearinghouse supply the local ma.
chinery essential for setting up and
putting in practice necessary stand
ards and uniformities. There are now
1876 clearinghouse associations in cit
ies, towns. counties and groups of
counties In the United States.
Men today are more Intelligently
group-minded than ever before. Bank
ing is combining the best elements of
competition with sound group action.
by virtue Of this combination, indiyld.
unl thought has much wider possibill-
ties OF expression. In general, group
action has not stihed hut has stimu.
lated individual thinking and initla-
tive. Better inter-bank organization
and relationships afforded by clearing
houses would have undoubtedly saved
many institutions that have suffered
failure in the past. The clearing
house activities Of the American Bank
ers Association are conducted for the
purpose Of encouraging ever widening
cooperation along fundamental princi-
pics and practices among banks
through clearinghouse associations.
Bankers In every city. county or dis
trict can. through the agency OF
clearinghouse. promote better. safer
and more profitable banking and nlao
serve their communities better.
There never was time when sue
cessfui bankers we're so alert to the
value OF team work for putting the
entire banking structure in prime con.
dillon. Sound bank management Is
the order OF the day Constructive
cooperation u more than sentiment,
q Is an economic necessity. a matter
Of enlightened seifinterest. and sue.
ccssful bankers more and more are
utilizing the agency Of Constructive
group action IN developing and csiab.
lishing necessary standards and uni
fcrmlties IN banking practices. Each
gear banking is becoming more Of a
science and attaining higher profea.
sforaf rf4rHa~ss