The midland journal. (Rising Sun, Md.) 1885-1947, 1929-08-30
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 thems squarely and successfully.
Banking is regarded as the keystone
OF cur entire business structure, hence
bank failures are rightly regarded as
81 leral6e public calamities that must
he iaaexantad .Thexthrea
or dSiectives of all inter-bank or.
Izatione. whether local. county, dis
t II state or national, are to make
bNking safer for all concerned and,
though Increased efficiency in bank
Infringement and supervision, to lessen
oieliminate all forms of losses so that
gSater rewards may accrue to bank
ilk and better service to the public.
here is definite evidence throughout
10 country Of strong and growing
sIrit Of cooperation among bankers
nd banking organizations, which is
esulting mere and more in strength
ening the work OF all.
/ clearinghouse associations among
,anks in city, county or district groups
undoubtedly constitute the chief line of
efense against bad banking practices.
hey have demonstrated that they are
10 principal factor in bringing about
bformation In banking regulations,
Improvements in banking methods and
he observance of sound banking prin.
kiples. For many years the primary
hrpose Of clearinghouse association
ias the clearance OF checks, but today |
lt 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
|rds and uniformities. There are now
'35 clearinghouse associations in cit
les. towns. counties and groups OF
counties in the United States.
Men today are more intelligently
than ever before. Bank.
ng fs combining the lest elements Of
.oppetition with sound group action.
virtue Of this combination, individ.
thought has much wider possibili.
OF expression. In general, group
Ytion has not stified but has stintu.
ed individual thinking and initia-
J. Better inter-bank organization
relationships afforded by clearing
ses would have undoubtedly saved
ny institutions that have suffered
lure In the past. The clearing
lse activities OF the American Bank.
Association are conducted for the
OF encouraging ever widening
alton along fundamental princi-
nd practices among banks
clearinghouse associations.
In every city, county or dis.
through the agency Of q
Puse. promote better. safer
profitable banking and also
communities better.
newer was a time when sue.
bankers were so alert to the
BIZ team work for putting the
thanking structure in prime con.
/. Sound bank management IL
Worder Of the day. Constructive
operation is more than a sentiment,
Is an economic necessity, a matter
enlightened self-interest. and sue.
Isful bankers more and more are
pizing the agency OF constructive
pup action in developing and estab-
ming necessary standards and uni
mities in banking practices. Each
hr banking is becoming more of a
ence and attaining higher profes
nal standards.