Evening star., 1935-05-31
VITAL ROLE SEEN
FOR BANK STAFFS
Personnel Is Supreme Fac
tor. Stokes Declares at
D. c. Convention.
BY EDWARD C. STONE.
Special Correspondent of The Star.

examiner for IA years, declared that
personnel is the supreme factor in sue
cessful bank management in an ad-
dress before the second days session
of the District of Columbia Bankers
Association. being held at the Home
stead Hotel Charles H. Doing, first
vice president. presided at todays pro-
ceedings. Mariner c. Eccles. gov
ernor of the Federal Reserve Board.
and Frank M. Perley we're other
speakers.
After noting the present difficulties
In obtaining desirable investments by
the banks, the prospects of additional
costs for social security. deposit insur-
ance and probable increases in taxes,
Mr. Stokes asserted:
There is no patented formula for
successful bank management. We
have tried various typeS-the unit
banks, the branch banks, the group
banks and the chain banks-and in all
cases some have succeeded and some
have failed. And this has ocCcrred
not only in the small towns and in the
medium sized communities, but also
in the large cities. 1t is also true that
small banks and large banks have had
the same eXperienCe-some have sue
ceeded and some have failed.
Going further. We can find that
capital structure had little or nothing
to do with it, for banks with very
small capital have been successful and
also have failed and banks with large
capital structures have likewise been
successful and have also failed. And
we have also seen that. despite crop
failures and like cataStrophes in widely
separated sections of our country. it
has been possible for some bankers to
operate continuously and still be in
existence today with good bank.
Stresses Need for Training.
THE conclusion Is inescapable that
successful bank management depends
simply upon personnel. Such ma
terial as we have which appears worth
the effort TO cultivate must be given
the opportunity of obtaining all the
education and information which it
can absorb concerning the multi
plicity of details concerning banking
on which l shall not elaborate. If
such material does not exist within
the confines of the institution. then
prompt steps should be taken TO enlist
in the organization material that
can be developed for future needs.
While We may have had overpro
duction of agricultural and other COM
modities, we have suffered more from
an underproduction of good level
headed, conservative men who would
be capable of assuming the RESPONSE
bility of handling the funds of the
people of our communities Our
future lies entirely within our hands
EccIes Summarizes Bill.
The association heard an informal
address by Gov. Eccles in which he
gave brilliant summary of the OBJ
lectives of the proposed banking bill
of 1885. also known as the "Eccles bill
He devoted his remarks especially
to title II and reiterated views he has
presented before Congress and over
the radio to the effect that the Re-
serve Board must be given sufficient
power in the way of money and credit
control to prevent initiation and check
def1ation
Gov Eccles called attention to the
service rendered by the Government
at the time of the banking crisis and
added that the Government has loaned
more than S7000000 900 in relieving
the financial interests. with direct and
indirect help to the banks. This has
included loans to the banks and also
the taking over of slow paper. He de-
clared that many of the criticisms
against the proposed banking act have
been made by persons who never read
the act or at least were unfamiliar
with its most important provisions.
His talk was given great applause
many of the financiers most opposed
to certain provisions of the banking
act being impressed by his arguments.
Mr.. Perley, trust investment Of
ficer of the American Security &
Trust Co.. addressed the convention
on "SuperviSion of Trust Invest
ments.' Experience has shown that
it is very hard to accumulate wealth. !
but it is even harder to keep it. Out |
of every six people who are wealthy |
at the age of 35 only one is able |
to maintain this wealth up to 65. |
said Mr.. Perley, adding that the main !
Job in maintaining an estate is not !
to cut coupons. but to cut coupons |
that will be paid.
Twenty years ago changes in the !
values of securities were very narrow, /
almost never violent Today new fac !
tors are continually disturbing the ,
market. the Government attitude !
toward utility regulation and its bear
ing on securities being an excellent !
illustration.
Close Watch Necessary.
There are two main points. said
Mr.. Perley. to keep in mind. First,
1t is difficult to make investment:
second, all the factors that are
first considered must be continually
watched for any changes, all this
information being applied to indi- |
vldual accounts. The speaker added:
1t is interesting to note a few
examples Of the manner III which in
creasing Importance mas been placed
upon the publication of financial in
formation. The Washington Evening
Star in 1900 only gave about IA
columns Gay to financial news. where |
as today they devote on an average of |
between l8 and 10 columns Around |
1900 they carried daily quotations on
IS leading stocks. while now they give |
quotations on between eight and nine |
hundred issues. One New York City |
newspaper last year published more |
than $4,000 900 words about financial |
news.
The largest statistical organiza-
ton, which now has al ound 200 en-
ployes, in 1909 only employed IS
people. One statistical service alone
now reports facts regarding 10000
corporation and securities"
How bank can keep up with the
changes in the status of an almost
countless number of securities was
pictured by Mr. Perley. He explained
a card index system in use in his bank.
spoke of additional safeguards, and
devoted his closing remarks to the
efforts of the Securities and Exchange
Commmission to furnish further pro-
lection for investors. Starting with