The midland journal. (Rising Sun, Md.) 1885-1947, 1930-06-27
SEES HEAVY CLAIMS
ON FUTURE BANKERS
American Bankers Association
Official Declares That Banking
Changes Creating Large Bank
Systems Will Call for Broader
Social Viewpoints.


barking organization and operations
to the United States and bankers will
have to develop "new conceptions, new
administrative metfcGs and new eco
nomic views" Rudolf S. Heclit, Chair
man of the Economic Policy Commits
sion Of the American Bankers Assoc1a-
ton, recently tol6 the members Of the
American InstitC+e Of Banking.
The institute is tie educational Sec
ton of the association and he empha-
sized the point that the new era in
banking demanded shat we must STEP
up our education so that banking shall
be fortified for new responsibilities"
What the Future Calls For
eve must broaden our social concep-
ton of banking" Mr.. Hecht said. mot
only for the technical operations 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 So
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
q new financial menace, a 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. If 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 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 a Capitalization Of financial
power as to be able to exercise an I'M
due influence over public or private
finance or other lines of bust mess. The
public's right to the safeguards of fair
competition must be observed.
Must Preserve Individual Initiative
"It must also be an item Of man.
agement that individual initiative and
opportunity shall be maintained. 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 barriers of social caste
or business tradition against advance
ment for character, ability, and initia-
tive. American business has learned
that it serves itself best by encourag-
ing by every practical means individ-
ual ambition and initiative, and hurts
itself most by repressing or neglecting
them. Competition for efficiency, both
within an organization and between
organizations, will prevent any insti-
tuition from long enduring in which
maintenance Of opportunity and recog-
milton Of initiative are not controlling
principles Of management. AS heads
of the greatest of our financial and in
started from the humblest of begin
nings. Through all the grades Of ex-
ecutive authority and reward stand
men in positions in keeping, generally
speaking, with their individual merits.
I, personally, see no reason for fearing
that the enlarged banking organiza-
lions which the future may hold would
necessarily supply future bank en-
ployees with any less opportunity for
achievement than unit banking.
again, a major consideration of ad-
ministration in any multiple form Of
banking organization must be its pub
lie relations in every community it
touches. It's foremost consideration
must be actually and visibly to serve
the economic upbuilding of that COM
munity. No system will be long toll
Grated whose local members work, or
are suspected as working, to draw
economic strength from one place to
enlarge the financial power Of another.
The local unit bank has always been
part and parcel of the communities
where it lives-and no system can last
which does not make it major prin-
ciple of operating technique to serve,
and not exploit, the communities into
whose business lives it enters"
Growth of Banking Education
nENr1IEp Nnln-Ak tho An,nrinnt,