Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-01-09

board of directors are now holding
meetings each week and the speclal
committee appointed by the board, as
provided for in our bylaws in Section
221-F, of the State banking law, nave
made their regular examination OF
the bank as of December 10, 1885, and
a certified copy of this examination
has been submitted to the board OF
directors and copy flied with the
State Banking Department as requir-
ed by law. In addition to these ex-
aminations made by the committee of
the board of directors, the State bank
examiners and the examiners of the
Federal Deposit Insurance Corpora
ton made their regular examination
of this bank, as of May 6, 1885, and a
| full detail report of this examination
was submitted and read to the board
of directors and said report is now on
file with the records in our vault.
Our stock continues to be we'll dis
tributed and at this time we have
PA shareholders, of which III are
individuals. five corporations, 81 es-
tates and = women and children.
| AS reuuircd Of All banks operating
| under laws Cf mis- State by the act
| of the General Assembly, this bank
complied with the Act of 1885 and the
additional or double liability hereto
| fore imposed by statute upon the
stockholders of banks in the event of
the liquidation of such banks doing
business under the laws of North Car
DINA will be no longer imposed. The
passage of this act became effective
July 1, 1885, and was very gratifying
to many stockholders in banks and
shauld add very much to the value of
bank shares.
Preferred Stock: Thu preferred
stock consisting of 5000 shares of the
par value of $500 per share, amount
ing to $125,O0O.OO, which is held by
the Reconstruction Finance Corpora
| ton, and the dividend rate paid is 3
- percent payable semi-annually
None of this stock has been retired
but the management hopes that in
the near future this stock, can be re-
tired in part or as. a whole, or paid
the present stockholders in the way
of stock, if and when conditions and
profits justify the same.
Federal Deposit Insurance Corpora
ton: AS you know, this bank is now
! permanent member of the Federal
| Deposit Insurance Corporation under
the Banking Act of 1885, and all de-
posits are now insured by the Federal
Deposit Insurance Corporation in the
maximum amount of $4,000 for each
depositor. This insurance fund is now
permanent.
Competition and Public Relations
Three specific things go hand in
hand to make it possible for banks
to operate profitably. The first is an
adequate capital structure. The Sec
ond is an intelligent management
And the third is a responsive public
Without any of these three funda-
mentals you could not pretend to con-
duct banking business
For many years bankers have
watched their capital structure and
created SURPRISES and reserves For
many years, also, bankers have been
active generally in educating them
selves in the improvement of manage
ment. Better bank. management has
been, and still is, of dominating i'm
portance.
What have you done in your bank
however, over long period regarding
the third factor? Most banks have
actually done very little. Truly the
factor of customer relations as one
of the three fundamentals of banking
has been far too long neglected.
Few bankers will dispute the state
ment that there probably was never
a time when the need for satisfactory
relations with the public had been
more amply demonstrated. Bankers
have obviously passed through pc
Rod which created a tremendous
| strain on public goodwill toward
banks and bankers. And the attitude
| of the public toady is not exactly as
we would like to have it. Surely,
| therefore, bankers will be forced to
give the problem of customer and
| public relations continuous attention
| II they ever anticipate a substantial
return in bank earnings and profit
able operation.
IL was. not so long ago that the
Dank was: very nearly the ONLY place
person could put money for safe
keeping, the only place a person could
borrow money at nominal rates for
conventional purposes, the onlv Mace
wnere a person could seek financial
advice and counsel.
Ihere have been drastic changes
however, and today the situation is in
considerable contrast No longer is
the bank the only place where the
puollc can obtain these services. We