The midland journal. (Rising Sun, Md.) 1885-1947, 1931-03-13

are not the outgrowth merely Of the
past year of business adversely, but
have been carried on actively for many
years and have resulted in great prog
ress along lines of better, safer bank
ing methods. Although banking along
with all business has suffered reverses,
conditions in this field have been far
less severe than they would have been
had not bankers been widely success
full in their endeavors to develop the
high standards Of banking that now
generally prevail.
The American Bankers Association
and bankers organizations in every
state actively support the principle
of government supervision Of banking.
The national banks, which receive
their charters to do business from the
federal government, are under the SUI
pervision of the Comptroller Of the
Currency at Washington. Through his
efficient stats of expert bank examiners
in every section he has the duty and
powers to keep watch of the way every
national bank is being conducted, to
suggest desirable changes in its poll
cies or methods and even to step in
and take control for the protection of
the depositors if such action Is war
ranted. The state banks, also, which
are chartered by the various state gov
ernments, are subject to similar SUI
pervision and control by state bank
officials. In addition banks in many
places have long maintained voluntary
clearing house associations which en-
force even closer supervision over their
members.
Bankers Favor Public Supervision
Present laws adequately enforced
contain ample provisions for govern
ment supervision. Bankers univer-
sally believe in strong, capable banking
departments manned by officials with
the discretion and courage to enforce
these laws and act under them as the
common welfare demands. They be-
lieve that these public officials should
be paid sufficient salaries to command
the services of men of character, ability
and resolute spirit of public service.
They believe also that the banking de-
partments should be kept free from
all political or other special influence
in order to be able to act at all times
with single-minded independence solely
for the benefit Of the public interest.
Although banks in the United States
operating under state or national char
tiers are thus subject to supervision OF
public authority, they are strictly pri-
vate business enterprises. They are
owned by their stockholders and adj
ministered by officials chosen through
the boards of directors which their
stockholders elect. No bank is owned or
operated by the United States Gov
eminent, nor, with one small exception
in a western state, by any state gov
eminent. The function of government
in banking is to promote and enforce
careful banking administration through
the system of examination and super
vision which / have described. This,
however, does not relieve the individu-
al depositor from the necessity of
judging and choosing carefully as to
his banking relations. just as in his
other business or professional rela-
lions. He must inquire for himself into
the character and type Of institution
and men he shall do business with,
satisfying himself as to their reputa-
ton, reliability and capability. These
qualities are essential to complete the
element of safety and dependability in
any human institution.