Year: 1865

short time the business of your win permit
and insist upon the payment Of all paper at maturity no
matter whether you need tho money not Never re-
new a note or bill merely because you may not know
where place the money with eqeal advantage II the
your discount line or make il a ali times reliable


Distribute your loans rather than concentrate them In


few hands Large loans to single individual or hrn
although sometimes proper and necessary, generally
nudicous and frequently unsafe Large borrowers are
apt control tho bank; and when this Is the relation
between bank and its customers 1t s dicult 70 de-
eide which IN the end will saer Every dollar that bank
loans above its capital and surplus for and its
managers therefor, under the strongest obligations 10


its creditors well to its stockholders TO keep its
discounts constantly under its control


Treat your customers lberally, bearing In mind the
fact that bank prospers Its customers prosper but
never permit them to dictate your policy


you doubt the propriety Of dscountng an offering,
give the bank the benefit OF the doubt and decline
never make discount II you doubt the propriety Of
doing it, you have to dstrus the Integrity OF


customer close his account Never deal with rascal
under the impression that You can prevent him from
cheating The risk In such cases greater than the
profits.


bank a business institution, and lot political par
tality prejudice influence your judgment action IN
the conduct Of its affairs The national system
Is intended for nation not for party AS far as In you
lies keep 1t aloof from all partisan influences.


Pay your officers such salaries as will enable them 70
i've comfortably ana respecaDy without a res ar
beyond his income dismiss him; even II his excess OF
expenditures be explained consistently with ms IN
tegrity, still dismiss him. Extravaganza II not crime,
very naturally leads to crime. man cannot be sae
officer OF a bank who spends more than he earns


The capital OF bank should be reality, not fiction;
and it should be owned by those who have money TO
lend and not by borrowers The Comptroller will en-
deavor TO prevent BY all means within his control me
creation Of nominal capital by national banks by the
use Of their circulation any other artificial means;
and in his efforts TO do hsl he confidently expects the
cooperation Of all the well managed banks.


Every banker under the national system should feel
that the reputation OF the system in measure depends
Conducted and that as far as his influence and
ment extend he is responsible for its success that he
engaged In experiment. which, If successful will re-
feet the highest honor upon all who connected with
It, and be Of ncalculable benefit to the country but
which, II unsuccessful VIII be reproach TO Its advocates
therefore Of the managers Of the banks make their
respective institutions srong not only to keep their
capital from being impaired, but gradually TO create
surplus that will be protection 10 their capital and
to their creditors in the trying times that sooner or
later happen to all banking institutions. There are
Sheet and none that is better calculated TO
give aid and comfort To the managers OF bank, and to
for it the confidence Of the people, than large
surplus fund Create then, good surplus, even IL you
have for time keep your stockholders short COM
mons in the way OF dividends to do it.


Pursue straightforward, upright, legitimate banking
business Never tempted by the prospect OF large
turns to do anything but what may be properly done
under the National Currency 'Splendd iinancer-
ng' IS not legitimate banking, and splendid nan-
ciers in banking, arc generally either humbugs OF
rascas


be the object of all honorable bankers to expedite as far
practicable rather than 10 postpone return to specie
payments While the exlgences oi tne nation nave
required that the issues Of the government should
be legal tender, IT must never be forgotten
that the business Of the country rests upon an
unsouDd basis or, rather is without proper basis,
the and the banks not meeting
their obligations in coin. The Comptroller therefore earn
esty that every bank retain the received
from the government for interest its public securities
and be tempted by high premiums to dispose OF 4.
Nothing which tho national banks can do would tend 50
directly to secure for them the confidence Of the public
the finances of the country TO healthy
condition, the gradual accumulation by them OF
specie reserve.


The eyes Of the people turned TO the national
banks The indications strong that II they we II
managed they VIII furnish the country with its bank
note circulation is Of the last importance, then that
they should be 80 managed.


The sincere efforts Of the Comptroller will not be
wanting to make the system benefit 10 the country.
May he not expect that these efforts, his part, will be
sustained by the efforts Of the managers of the banks
that have been or may be organized under 1t?


HUGH McCULLOCH, Comptroller