Show FINDS STATE BANKS ANKS B WELL supervised B bankers a akers body sees less politics in banking departments with better facilities in n the hands of the responsible officials A A survey ot of state banking departments by the state bank division american bankers asso association elation discloses n distinct tendency the past five years to take taka bank supervision out of 0 politics to increase the discretionary powers of bank commissioners to lengthen their terms ot of office to supply them with adequate forces of qualified examiners and to relieve banking departments of duties foreign to tanking banking says a recent statement issued by the association we have consistently urged that the of bank commissioner be na as free from partisan politics as the ju dietary itself and that it be divorced from all other functions of state government ern ment the statement says further that his term jot of office bo be mado made more secure and lasting with sufficient salary and power granted to attract and retain the services of men of outstanding executive ability courage resourcefulness and successful I 1 banking experience five years ago the first survey of state banking departments by the division demonstrated the need tor for improvements prove ments on the basis of data now in hand it is evident that through the revision of statutes in many states rapid steps are being taken in the right direction ono by one the tha states are coming to recognize tho the primary importance of strong competent banking departments the demand tor for increasing the effectiveness of banking departments la Is beginning to be met how bank commissioners are chosen the office of bank commissioner Is now operated as an independent department part ment mont of state government in thir ty tour four states the bankers find in two states the bank commissioner is elected at general elections in one he is appointed from eligible lists of the civil service and in another he bo Is selected by the banks in one state the bankers asso catton catlon alc elects ts a list ot of five names from which th the e go governor appoints one us superintendent of banks in another he is appointed by the state corporation commission and in another by the state banking board terms of office 0 bank comm commissioners s have been lengthened in several states during the last five years bears the report says in 23 28 states the term is tour four years in one five years and jn in three it is six years and in some the term indefinite A short term is condemned on the grounds that the commissioner has insufficient time to become thoroughly conversant with his field work A longer term permits his rendering useful service through capitalizing his experience five year ago the average length ot of service vas less than three years while now it has risen to five alve years higher sta edards required signs ot of an awakening to the necessity ot of making successful banking ex perince a qualification tor for bank commissioner are evident while eleven states report no banking experience necessary the majority require experience of this sort ranging from two to five years twelve states now have banking boards with powers ranging from acting in an advisory capacity to full power avei over all state banks to issue and reject charters A healthy sign is the number of reports which chich Csc losa loso that the commissioners ners have full power to appoint bank examiners or that these appointments are made from civil service lists this power is now granted to the commissioner by twenty seven states three require that selection be from civil service lists complaints aro are still made in a few states ot of political pressure in the appointment of examiners but the contrary seems to be true in b u growing number of states the tha most capable commissioner cannot successfully perform his duties unless he is r able ble to command the services of efficient honest examiners the safety ot of depositors is dependent on their work and their appointment fitness and compensation are highly important the number of examiners has increased per cent in the last ova five years |