Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1936-09-04
BANK GROUPS MAKE
NATIONWIDE SURVEY
American and State Barking
Associations Collahorate
in Investigation
LOAN SERVICES STUDIED
Activities Of the Government in
the Banking Field Are
Reviewed and Position of
Banks Analysed

NEW YORK Detailed ,ank re-
searches, covering all phases of prac
tical operating and economic facts and
conditions related to banking, are be-
ing made by the American Bankers
Association The resulting material is
being placed at the disposal of all
state banking associations, which in
many instances are extending the re-
searches Of the national 'SSociation in
their own states These activities are
said to be part of the general pro-
gram of banking development which
is being carried on by the organized
banking business.
Among the most extensive re.
searches being conducted by the
American Bankers ASSOCIATION is
that of its Committee on Banking
Studies, which is making detailed
survey of Federal Government lend
ing agencies and policies The basic
material, which is kept up to date by
continuing studies, shows where the
Government agencies get the money
they lend, what liability the Govern
ment assumes, what subsidy it ex
tends, what return it gets, for what
and to whom the money goes and on
what terms it is loaned
The Government in Banking
1T is not the intention Of the com.
mlttee to express its viewpoint about
any agency, says the foreword to this
material. Its intention is only to de.
termine the facts. These facts prop
eriy assembled and presented shoulc
help banks to meet Government com
petition if and where if exists The
committee believes the Government
entered the lending field at a critical
period in order to aid banks and
financial institutions If the time has
come for the Government to with
draw, it is the duty of bankers to
demonstrate their readiness to take
care of all sound credit needs"
1t adds that the banks must be
equipped with full factual material
as to the Governments emergency
lending activities and practices, and
that full cooperation has been given
the committee by Government agen.
cies in obtaining facts Binders of the
material gathered have been placed
by the committee in the hands of
state associations
Investigation of Postal Savings
The Committee on Banking Studies
has also made a survey of he Postal
Savings System throughout the
United States to ascertain to what ex-
tent it is competing with chartered
banks Questionnaires were sent to
banks in all places where Postal Saw
ings repositories are operated and
their answers will be analyzed as a
basis for the committees findings
The Bank Management Commits
sion of the American Bankers Asso-
citation has made a nation wide sur
vey covering the movement among
banks to increase their earning abili-
ties through fair and legitimate rates
for services they render their deposi.
tors" 1t has developed plan of &C.
count analysis as a basis of fair
charges.
"All business in order to justify its
existence is founded on the economic
principle that a reasonable return
should be expected from services
rendered." the commission says.
Personal Income Loans
The Bank Management Commits
sion has also formulated methods for
installing and operating personal in
come loan departments in banks.
This plan contemplates making
loans primarily to individuals and
small business concerns. based upon
the character and assured incomes of
the borrowers, as distinguished from
the usual basis for commercial
loans. the commission says
1t points out that a large part of
the population is not now making use
of available bank credit and that ito
these people the personal loan de-
partment extends valuable service
which at the same time Is profitable
to the bank" 1t adds that it is "the
duty of the banks to educate the pub
lie to come to the bank for all fnan-
cial services. Small borrowers should
be Informed that the local bank is
willing to care for their demands "
Other Researches
Other researches are beng made by
the Economic Policy Commission Of
the ASSOCIATION dealing with SHRINK