Nogales international., 1936-11-28
American and State Banking
Associations Collaborate
in Investigation
LOAN SERVICES STUDIED
Activities of the Government
in the Banking Field Are
Reviewed and Position
of Banks Analysed

eAAku COII0lt1OL4S ASAoSSA W. NSN>~~~~~~e9'
are being made by the American
Bankers Association. The resulting
material is being placed at the dis
poSal Of all state banking associations.
whiehsin many instances are extend
ing the researches of the national as
Sociation in their own states These
activities are said to be part Of the
general program Of banking develop
ment 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 it's 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
"It is not the intention of the COM
~mittee to express its viewpoint about
any agency says the foreword to
kfiS material. Its intention Is only
TO determine the facts These facts
properly assembled and presented
should help banks to meet Govern.
ment competition if and where it ex-
lists. The committee believes the Gov
ernment 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
withdraw. it is the duty Of bankers
to demonstrate their readiness to
take care Of all sound credit needs"
It adds that the banks must be
equipped with full factuai material
as to the Governments emergency
tending activities and practices, and
that fun 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 association officers and COM
Tnittees Of three members appointed
TO cooperate with it in carrying on
banking research.
The Committee on Banking Studies
has also made survey of the Postal
Savings System throughout the
United States to ascertain to what
extent it is competing with chartered
banks. Questionnaires we're sent to
banks in all places where Postal Saw
ings repositories are operated and
over SO per cent returned answers
which will be analyzed as basis for
the committees findings.
The Bank Management Commis-
sion of the American Bankers Asso-
citation has made nationwide sur
vey covering the movement among
banks to increase their earning abili-
ties through fair and legitimate
rates for services they render their
depositors" The commission has de-
veloped a uniform plan of account
analysis as basis of sound charges.
Personal Income Loans
The Bank Management Commis-
sion has also formulated methods for
installing and operating personal in
come loan departments in banks.
This plan contemplates making
loans primarily 10 individuals and
small business concerns. based upon
the character and assured incomes of
the borrowers. as distinguished from
the usual basis for commercial
toans.'" the commission says
It points out that large part Of
the population is not now making
use of available bank credit and that
ito these people the personal loan
department extends a valuable SER
vice which at the same time is profit
able to the bank" It adds that it Is
''the duty of the banks to educate the
public to come to the bank for all
financial services. Small borrowers
should be informed that the local
bank is ready and willing to take
care Of their demands"
Other Researches
Other researches are being made
by the Economic Policy Commission
of the association dealing with
Shrinkages in liquid commercial
loans caused by the economic changes
in the nations business methods.
while the National Bank Division
mas made studies of the lending and
investment powers of this class of
bank, the present status of the real
estate investment field and of de-
tailed data by states on earnings and
expenses.
The Savings Division has gathered
the facts showing savings in banks
of all types, the number of savings
depositors, the per capita savings for
the country as whole and the effects
of current economic and social
changes upon the savings habits of
the American people.
The associations State Bank Divi-
sion has issued the most recent fig
ures available as to the detailed con-
GiitionS of state banks, showing steady