Show BANKING FINDS TH THE WAY TO SAFER ERA By FRANK W W. American Bankers Association In considering the banking situa situation Lion tion throughout the country the fact tact should be kept In mind that while one ono bank in ten failed ailed during the past eight years it Is far more important that nine banks out put of ot ten operating In the same general field serving the tho same samo communities and meeting almost almost almost al al- most identically the same samo problems weathered the tho economic storm of ot readjustment readjustment re reo adjustment successfully This achievement achieve achieve- ment went cannot be be ascribed to any element elo ele ment meat of luck but rather to consistent adherence to sound banking principles and profitable practices Through worthy and efficient management they met the Issues and problems confronting confront ing tag them squarely and successfully Banking is regarded as the keystone of ot our entire business structure hence bence bank failures are rightly regarded as Intolerable public c calamities that must must absolutely be prevented The three major objectives of all Inter bank organizations or- or whether local county dIstrict district district dis dIs- state or national are are to make banking safer for all concerned and through Increased efficiency ncy in bank management and supervision to lesser or eliminate all forms of losses so that thae greater rewards may accrue to bankIng banking bank bank- l Ing g and better service to the pub public la laThere There is definite evidence throughout the country of a strong and growing spirit of cooperation among bankers and banking organizations which is resulting more anc and more In strengthening strength ening the work of all Clearinghouse associations among banks In city county or district groups undoubtedly constitute the chief line of defense against bad banking practices They have demonstrated ed that they are the principal factor in bringing about reformation in banking re regulations Improvements in banking methods and the observance of sound banking prin For many bars years tha the primary purpose of ot a clearinghouse association was the clearance of checks but today it is the clearance of banking idea ideas and the solution of banking problems l Clearinghouses supply the local ma me machinery machinery chinery essential for setting up and putting in practice necessary sta stand standards rt ards arils and uniformities There are now 36 clearinghouse associations in cites cities cit ies les es towns counties and groups of or counties In the United States Men today are more h intelligently minded group-minded than ever before BankIng Banking Bank Bank- ing lug is combining the best elements of or competition with sound group action By virtue of ot this combination individual ual thought has much wider pos ties Ues of expression In general group action has not stifled but has bas stimulated stunt stimulated individual thinking and a tine live Better inter bank organization and relationships relationship's afforded by clearinghouses clearinghouses clearing clearinghouses houses would have undoubtedly save many institutions that have hare sufferer suffer failure in the past The clearinghouse clearing clearinghouse clearinghouse house activities of the American Bank Bankers ers era Association are conducted for the purpose of encouraging ever cooperation along fundamental print pies and practices among bank through clearinghouse associations association Bankers in jn every city county or dietrict dif die can through the agency of i t clearinghouse promote better sate safe a. a ad ld d more profitable banking and al ak ah serve Berve their communities better |