Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1930-06-26
SEES HEAVY CLAIMS
ON FUTURE BANKERS

American Bankers Association
Official Declares That Banking
Changes Creating Large Bank
Systems viii Call fol. Broader
Social Viewpoints.
Larger scale group or branch bank
ing will inevitably bring new era OF
banking organization and operations
to tine United States and bankers will
have to develop new conceptions, new
administrative methods and new eco.
nomic views" Rudolf 8. Hecht, Chair
man of the Economic Policy Commits
sion Of the American Bankers Associa-
ton, recently told the members OF the
American Institute Of Banking.
The institute is tho educational sec
ton Of the association and he empha-
sized the point that the now era IN
banking demanded ''that We must step
up our education 30 that banking shall
be fortified for new responsibilities"
What the Future Calls For
1--WE must broaden our social concep-
tion Of banking" Mr.. Hecht said. mot
only for the technical operations Of the
new banking must we At ourselves, but
both as individuals and an organized
profession we must charge ourselves
with serious consideration Of the go
cial problems that are involved. AL.
ready we hear murmurings and fears
and doubts as to whether the changes
that are coming about In banking In
the extension OF group and branch sys-
tens do not constitute the looming Of
new financial menace, q monopolistic
threat not only to the individual unit
banker, but to the financial liberty Of
society in general. am stating these
things merely as facts that must be
taken into consideration IN our studies.
"Public opinion cannot be ignored
by any business, least Of all by bank.
ing, which Is admittedly semi.public
| in character and is, therefore, subject
! to special supervision by the consti-
| tuted authorities. II banking develops
tendencies that give rise to public
fears, we must SO conduct ourselves
as to reassure all doubts.
"For this is ue,-that business sue.
ceeds only by serving society-that no
business can permanently prosper
which does not both render service to
the public and at the same time con-
vince the public that It Is rendering
that service. Banking. therefore. must
take cognizance Of what the public Is
saying Of this new era in Its develop.
ment.
"It must be part Of the technique
! Of modern banking, administration,
whatever form our enlarged institu'
lions take, to avoid the creation. Of
monopolies, or even the appearance Of
such Capitalization Of financial
power as to be able to exercise an I'M
due influence over public or private
finance or other lines Of business. The
public's right to the safeguards Of fair
competition must be observed.
Must Preserve individual Initiative
ut must also be an item OF man
agement that individual initiative and
4 opportunity shall be maintained. Il
America has outstripped other nations
in the distribution Of the benefits o,
it's progress, It Is due to the fact thai
there are no barriers Of social casts
or business tradition against advance
ment for character. ability, and initia
tive. American business has learned
that 1t serves itself best by encourag
ing BY every practical means indlvid
usl ambition and initiative, and hurt,
itself most BY depressing or neslectini
them. Competition for efficiency, boil
within an organization and between
organizations, will prevent any Inst
tuition from long enduring in which
maintenance Of opportunity and recog
milton Of initiative are not controlling
principles Of management. As head
Of the greatest Of our financial and in
dustrial institutions stand men VIII
i started from the humblest Of begin
rings. Through all the grades Of q
ecutive authority and reward STAN
men In positions in keeping. general,
speaking. with their individual merits
I, personally. see no reason for fearinI
that the enlarged banking organiss
lions which the future may hold woul
necessarily supply future bank EN-
pl6yees with any less opportunity to
achievement than unit banking.
"Again, a major consideration Of cd
ministration Ia any multiple form Q
banking organization must be It's pull
lie relations In every community !
touches. Its foremost consideration
must be actually and visibly to serv
the economic upbuilding Of that CON
munity. No system will be long to
Grated whose local members work, q
are suspected a. working, to dra'
economic strength from one place t
enlarge the financial power Of another
: The local unit bank has always bee