Show FOR FAILURE PROOF BANKING STRUCTURE Speaker Outlines es Threefold Cooperation Co Co- operation Between Bankers Bankert Government Offie Officials at and the Public to Maintain Bank Standard Standards TWO el clement beside the bankers I A themselves are required In order to give tb nation natron universally the type of banking It should bays bare Francis Francl H. H Sisson Sisson Sis Sis- son president of the tha American Bankers Bank Bant ers etc Association declared In tn a recent address Ha Ue said laid that tb the efficiency of government officials upon whom th the people reI rely to supervise the banks banka properly and the patronage of the tha people themselves art ar factors factora In tn the kind nd of banks bank a community shall Iball hue have that the There can bl be b BO no question people of the United States State should hire have banks bank Immune from tailor and wholly lion free from Clam bad or questionable banting banking Mr said It IU Iti I not enough as II President Roosevelt b. b has bas said that while some som bankers banker had bad been incompetent tent lent or dishonest this w. w was not true In Inthe Inthe the vait vasI majority of oar banks A Asit situation sit nation should hould exist in tn which there 1 is I. not even een a small Iman minority of bankers banker open to question There should be DO no room for dishonesty or incompetence incompetency to exercise any Influence in banking r. r Wall bad faith and bad mana manage meat ment enter the human factor In all an types of business badness their effects In bankIng bank bank- ID lag Ing should b bt be surrounded by such special special cial elal safeguards a as al to render them no ao longer loner a factor In bank failures failure Tb The responsibility for fOl bringing this about cannot rut rest upon the t bankers banker alone for the mean means to accomplish It are not wholly In their hands bands There are other essential elements element One I is the efficiency of of government up supervision Sine Since we rill rely f go b greatly maU upon apon supervision It may mar unless It Ii of tile the highest order in the public Interest create a sense of fate false security should hould render bad bad- b banking Impossible but it h. h has baa failed to do 40 so 10 There Ther was wa super super- vision by presumably the highest type of bank supervisors in eYe every one of the Instances of ot questionable bank banking In that h. h hat has b ked the attention of the country country coun coun- try durin during the past three years Therefore Therefore There There- fore a thorough strengthening of supervIsion super super- supervision vision is II clearly called for If It the people are to rely on it Ino to the fullest extent for the protection of 01 their interests The no Public Part Another essential factor In maintaining main taming rood good banks bank involves involve th the part put played by the public lIe la In banking There I Is certainly a responsibility on the peo peo- lv to 0 support that type of banker who whose rigid adherence to sound oune principles principle makes make a sound bank rather nth than to give IS their patronage to the easy going banker but wIlD who may r to do business waty sti bat who cr crat era at ate a wa weak bank Bank customers art are charged with a great creat responsibility In fa protecting the safety of their banks bank in respect to their utilisation of the assets asset of the banks bank a as al borrowers borrower Banks Danta hav failed tailed because many of their loans and securities created created created cre cre- in good faith by bankers banker in cooperating coop with the business interests of the country count proved unsound under subsequent subsequent sub sub- sequent luent conditions An unsound loan Is created b by the borrower a Ie as well wen as the banker A bank Is only as sound as Its community and this applies applied also allO to the banking structure as I a whole In relation rela lion tion to the economic condition of the nation as 8 a whole A bank Is truly a semi semi public public Institution institution but In a reciprocal sense sense sense-It it has Its obligations ni to the public but so 0 has the public equal luat obligations obligation to the bank No one ont who ha has baa not sound Bound bankIng bank bank- In Ing principles principle at heart ha has bal any business In a bank whether a as al a banker banter or a as asa asa a customer The banker is a semi public servant senant He lIe Is II charged charled with the heaviest of re- re and obligations that occur In our economic life But he can meet these fully only through the cooperation cooperation tion of good laws good public official who are empowered to exercise anthorny authority au an- thorny over his bank and good business business busi busl ness nelll methods on the part of business businessmen men generally who utilize his bank Only through such luch cooperation by all elements in fn our nations nation's c community life can we be assured of a proof failure-proof banking banting structure The Administration at Washington las has taken hold bold of this problem with a aIrm firm Irm grasp grup of ot essentials and Is II exercising Ing ng splendid leadership toward the desired desired de de- sired aired end The strongest feature of ot the government program program will be found In recognizing the Joint responsibility of the public of ot business and of government government govern govern- ment officials together with the bankers themselves In is creating the kind of banking the nation cation should hould have hue |