The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1930-06-26
SEES HEAVY CLAIMS
ON FUTURE BANKERS
American Bankers Association
Official Declares That Bank
ing Changes Creating Large
Bank Systems Will Call for
Broader Social Viewpoints.

bankers will have to develop new
conceptions, new administrative
methods and new economic views"
Rudolf S. Hecht, Chairman Of the
Economic Policy Commission Of the
American Bankers Association, re-
Gently told the members of the
American Institute OF Banking.
The institute is the educational
section of the association and he
emphasized the point that the new
era in banking demanded that we
must step-up our education so that
banking shall be fortified for new
| responsibilities"
| What the Future Calls For
1--WE must broaden our social con-
eeption of banking" Mr.. Hecht said.
Not only for the technical oper-
ations of the new banking must we
| fit ourselves, but both as individuals
and an organized profession we
must charge ourselves with serious
consideration Of the social problems
that are involved. Already we hear
murmurings and fears and doubts
| as to whether the changes that are
| coming about in banking in the ex-
| tension of group and branch sys-
TENS do not constitute the looming
| of a new financial menace, mo-
| nopolistic threat not only to the
| individual unit banker. but to the
financial liberty Of society in gen.
eral. 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
banking, which is admittedly semi
/ public in character and is, there
fore, subject to special supervision
by the constituted authorities. II
banking develops tendencies that
give rise to public fears, we must
so conduct ourselves as to reassure
all doubts.
For this is true, that business
succeeds only by serving society
that no business can permanently
prosper which does not both render
service to the public and at the
same time convince the public that
it is rendering that service. Bank
ing, therefore, must take cognizanc9
C. what the public is saying of this
new era in its development.
at must be part of the technique
of modern banking administration.
whatever form our enlarged insti-
tutions take, to avoid the creation
of monopolies, or even the appear
ance of such Capitalization OF
financial power as to be able to
exercise an undue influence over
public or private finance or other
lines of business. The public's right
to the safeguards of fair COMPETE
ton must be observed.
Must Preserve Individual Initiative
at must also be an item of man
agement that individual initiative
and opportunity shall be main
tanned. If America has outstripped
other nations in the distribution of
the benefits Of its progress, it is due
to the fact that there are no bar
riers of social caste or business ira
dition against advancement for
character, ability, and initiative.
American business has learned that
il serves itself best by encouraging
by every practical means individual
ambition and initiative, and hurts
itself most by depressing or neglect
ing them. Competition for eff
cheney, both within an organization
and between organizations, will
prevent any institution from long
enduring in which maintenance OF
opportunity and recognition OF
initiative are not controlling prin-
ciples of management. AS heads
of the greatest of our financial and
industrial institutions stand men
who started from the humblest OF
beginnings. Through all the grades
of executive authority and reward
stand men in positions in keeping,
generally speaking, with their indi-
vidual merits. /, personally, see no
reason for fearing that the enlarged
banking organization which the
future may hold would necessarily
supply future bank employees with
any less opportunity for achieve
ment than unit banking.
again, a major consideration OF
administration in any multiple form
o. banking organization must be its
public relations i'll every community
it touches. It's foremost considera
ton must be actually and visibly
{, to serve the economic upbuilding OF
that community. No system will
be long tolerated whose local mem
bers work, or are suspected as
working, to draw economic strength
from one place to enlarge the finan
cial power of another. The loca
unit bank has always, been par
and parcel Of the communities
where it lives-and no system car
last which does not make it majol
principle of operating technique tt
serve, and not exploit, the commu
mites into whose business lives i
enters"