The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1929-08-29
BANKING FINDS THE
WAY TO SAFER ERA
By FRANK w. SlMMONDS,
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 aseribed 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
| ganizations whether local, county, dis
| trict, state or national, are to make
| 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 prin-
ciples. For many years the primary
purpose of clearinghouse association
| was the clearance of checks, but today
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
435 clearinghouse associations in cit
| les, 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, individ-
| ual thought has much wider possibili-
ties of expression. In general, group
action has not stifed but has stimuD
lated individual thinking and initia-
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
pies and practices among banks
through clearinghouse associations
Bankers in every city, county or dis
trict can, through the agency of a
clearinghouse, promote better, safer
and more profitable banking and also
serve their communities better
There never was a time when sue
cessful bankers were so alert to the
value of team work for putting the
entire banking structure in prime con
dition. Sound bank management is
the order of the day. Constructive
cooperation is more than a sentiment
it is an economic necessity, matter
Of enlightened self-interest, and sue
cessful bankers more and more are
utilizing the agency of constructive
group action in developing and estab
fishing necessary standards and uni
formities in banking practices. Each
year banking is becoming more OF .
science and attaining higher profes
sional standards.
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