Milford chronicle., 1931-04-03
the dnnosiinr nt ann time.

positCrs, he urged, should be limited
to an amount which hOrc a reason
able proportion to the depOsitor's
average balance. A depositOr whose
average balance was '$1CO or $500
was not entitled to expect that a
bank would loan him $4,000 to $lO,-
/ coo.
All these. principles, Mr., Norris
said. were pretty well recognized III
large city banks, but were not So
well recognized in small conInunl-
ties where the relations between
bank officers and customers were
more personal and friendly. lie al
| luded also to the feeling that was
/ often in evidence that a bank should
pursue a liberal policy, and be help
full in the upbuilding of its commlln-
ity. He acknowledged the existence
of this duty, hut added that it was
the third of the duties which bank
officers owe; their first duty being to
their depOsitOrs, their second to
their stockholders, ard their third
to the community.
Warren X. Ayres, assistant treas
urer of the Wilmington Trust. Com
pany, presented resume of what
transpired at a meeting of bank
managers at Washington. He said:
"Mr. Janvier has asked me to give
brief report Of the Second Central
Atlantic States Bank MANAGEMENT
Conference held in Washington,
| February 26 and 81.
"There was such a wide variety
and range of interesting topics pre-
sentcd that it is rather ditlicul; for
me to emphasize or stress particu-
larly any one of the score of ad-
dresses made. Throughout tie ses-
siOns much significance was placed
on the practical side OF buHk man
agement especially applied to coun-
try banks.
"The conference included four
sessions, the first being THE Sound
Bank the second. The Protected
Bank the third, The Profitable
Bank and the last, The Practical
Bank
Speaking OH the sound bank, w.
Walter Wilson. president of the
Pennsylvania. Bankers Association,
talked on the subject of "A Sound
Loaning Policy for Country Banks
and expressed tho thought that safe
ty requires "a acknowledge of the
bank. the customer, and the courage
to say 'No' it also requires a rec
ognition of tic rights of the depos~
itors: accurate and adequate credit
data, exchanging of the same
through credit bureausy care in
granting loans to directors, officers
and their enterprises; adequate
sound collateral for secured loans,
and diversificatiOn Of loans as to
type of borrower. business, collat-
eral, and size of loan. - Il. 81.
Concerning the mattGr OF loans
Harold G. Borwn, SeSeclltiYe vice
president of the: gllionS Bank and
Federal Trust Company of Rich
mOnd Va, presented an Interesting
paper on, the NECESSITY of divcrsiit-
cation of agriculture. He also cited
one incident of having been connect
ed with reorgamzed bank having
over 81 ,000.0 of resources and To-
Gated in d tew4l- Of 1000 people sit
uatCd in an agricultural section. In
Is months time they had collected
and paid off debt of S250,000. Dur
ing this time the bank gradually liq-
Undated much of its paper, making
desirable local loans as requested
and investing surplus. from cOllec-
tiOns and new deposits in outside
paper
zone of the weaknesses that has
caused more bank failures than any
other single thing in this country is
that too many bankers are imbued
with the thought that they are SER
wing their community best when
they loan all of their money within
that community. When the industry
that supports that community fails,
whether it be agricultural or some
hting else, the bank fails with it.
"WaldO Newcomer, chairman Of
the executive committee of the Bal
timore Trust Company of Baltimore,
talked about Adequate Primary and
Reserves lie pointed out
the Importance of the complete
knowledge of the fluctuations in de-
positS and the necessity of main !
tanning the proper kind of reserves.
There is the possibility of making |
the bank perfectly liquid and bank
rupt it by lack of income, or to give |
it larger earning power and bank
rupt it by lack of liquiditX. It is de-
sirable to determine a reasonable |
profitable balance between the two.
"Following the several interest
ing talks on the protected bank, our /
visitor today, Rome G. |
gave very enlighten-
ing address on Our New RESPONSE
jilitieS' -r.a:
Zone of the outstanding talks on
The Profitable Bank was an in
one by Dr.. Harold Stonier,
who is educational director of the
American Institute of Banking. He
stressed the point that how much
more available was the banking
technique of today possible through
state and national bank $.associa-
ions, through clearing houses, and
through The American Institute of
.-x -+.>..--.. ..
Under the practical bank, We had
I very able address by George d.
Snyder, of Reading, who presented
arguments in favor of credit bu-
'eaus in county and regional clear
ng house associations that were un-
.s-ea ....;
cat tho finish of tho sessiOus Our