Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-05

manly possible in meeting the problems
that confront them"
The report declares that IMPROBABLE
bank management was an importan mt
cause in the bank failure situation in
1880, and fundamental corrections must
come mainly from within and only in
limited measure through legislative
measures from without It Is the duty
and Is within the powers of the bankers
associations TO bring about remedial ac-
ton by stimulating improvements in
managerial technique wherever called
for and by exerting greater degree of
and national laws regarding banking to-
ward higher standards for promoting
good banking practices and giving
greater protection to the public"
Good Management Aided.
II imperfect bank management was
responsible for failures, good manage
ment must be credited for the high
average standards of administration
banking institutions and kept them sue
therefore, Is TO be found the great source
of remedy for its ills" The report con-
tinues:
Unless these resources OF good bank
ing are put into universal effect, bad
management driven out Of banking and
the good management that exists In the
vast majority of banks is made 70 pre-
vail in all, we may expect undesirable,
protudiced and subverSive proposals to
be imposed upon banking from with
out"
1t cites as evidence of this the dis
turbing renewal OF agitation in several
States for the guarantee of bank de-
poSitS by law, a disastrous failure wher-
ever tried" Such laws are designated
as attempts TO impose on banking from
without by means utterly foreign to
sound principles conditions OF security
that must be created by sound manage
ment from within. They do not belong
in the realm Of banking legislation.
They ought to be kept in the realm of
banking skill, prudence ana discretion.
measure up to their duties
The American Bankers Association
has specific functions which, II de-
veloped TO their full potentialities, con-
tain the best promise for bringing about
the improved banking conditions we all
wish to see prevail" the commission
says, citing especially the Bank Man
agement Commission. which complies
technical banking material and expert
successful banks, covering the essence
of bank management, and distributes it
to all members. which constitutes q
broad channel through which the good
management of successful banks should
flow over into and strengthen all banks
and thereby make less likely a repeti-
ton Of the 1880 record"
Conducting 223 Schools.
II also describes the associations
American Institute Of Banking section,
conducting 223 banking schools in cities
throughout the country, in which more
than $4,000 students are combining for
NAL theoretical and practical banking
studies with their daily working expert
ence, declaring the institute to be "a
dynamic economic force, pouring into
banking broadening, deepening stream
Of better qualified bankers than could be
developed merely by the daily workings
Of banking ITSELF" and that it should
receive greater recognition among bank
directors and senior bankers, and the
weight of their authority should be
placed behind 1t to bring about a very
great enlargement of its influence"
There Is no greater preventive OF
bank failures than good bank manage
ment, whether general conditions are
good or bad" the report continues. 1--WE
CauIlOC CuanBe major economic or OLner
special external conditions which doubt
less destroyed some banks in ways be-
yond any type of management to pre-
vent. But, after all. the vast majority
survived under Identical economic con-
ditions in which the great minority
failed. Does this not imply that banks
that survived were able by better man
agement to fortify themselves and cope
successfully with conditions common to
virtually all banks? Therefore, propa-
cation of good bank management by
every practical means offers organized
banking its greatest opportunity of
service to the business of banking and
the welfare Of the Nation"
The members of the Economic Policy
Commission are r. s. Hecht, New Or
leans, chairman: George E. Roberts.
New York City, vice chairman: Nathan
Adams, Dallas: Leonard P. Ayres, Cleve-
land: Frank w. Blair, Detroit; Walter
w. Head, Chicago; w. D. Longyear. Los
Angeles: Thomas B. McAdams, Rich
mond, Va; Max B. Nahm, Bowling
Green, KY; Walter E. Robb, Burling-
ton, N. j.: Melvin A. Traylor, Chicago:
Paul M. Warburg. New York City; o.
Howard Wolfe. Philadelphia, and Cur
den Edwards, New York City, secretary.