Show FOR FAILURE PROOF BANKING BAKU STRUCTURE speaker outlines threefold cooperation between bankers government officials and the public to maintain bank standards WO elements beside the bankers TWO themselves are required in order to give the tha nation universally the type of banking it should have francis 11 sisson president of the american bankers association declared in a recent address lie ile said that the efficiency of 0 government officials upon whom the people rely to supervise the banks properly and the patronage ot of the people themselves are factors actors in the kind of banks banka a community shall have there can be no question that the people of the united states should have banks immune from failure allure and wholly freo free from bad or questionable banking mr sisson said it Is not enough as president roosevelt Rooseve ic has said that while some bankers had been incompetent or dishonest this was not true in the vast majority of our banks A situation should exist in which alch there Is not even a small minority of bankers open to question there should be no room ton for dishonesty or incompetency to exercise any ny influence in banking anywhere while bad faith and bad management enter the human factor actor in all types 0 of business their effects in banking should be surrounded by such special safeguards as to render them no longer a factor in bank failures the responsibility tor for bringing this about however hoever cannot rest upon the bankers alone for tile the means to acom accomplish it are not wholly in their hands there are other essential elements one Is the efficiency or of government supervision since we rely so 60 greatly upon supervision it ft may unless it is of the highest order in safeguarding safe guardin the public interest create a sense of false security supervision should render bad banking impossible but it has tailed failed to do so there was supervision by presumably the highest type of bank supervisors in every one of the instances of 0 questionable banking that has shocked the attention of 0 the coun try during the past three years therefore a thorough strengthening 0 of supervision is clearly called for or it if the people are to rely on it to the fullest extent for the protection 0 of their interests the publics Public 1 part another essential factor in main good banks involves involver the part played by the public in banking there T nere Is certainly a responsibility on the people themselves to support that type of banker whose hose rigid adherence to sound principles makes maker a sound bank rather braher than to give their patronage to I 1 the e e easy ry going banker who may be ea easier aler to do business with but who whose se methods create a weak bank bank customers are charged with a great responsibility in protecting tile the safety of their bloks banks in loepert to their utilization of the assets of the banks as borrowers banks have tailed failed because many of their loani loam and securities created in good faith by bankers in coop aerating with the business interests of the country proved unsound under subsequent conditions an unsound loan loa I 1 is created by the borower boi lower as well as the banker A bank Is only as sound as its community and this applies also to the banking structure as a whole in ili relation to the economic condition of the nation as a whole A bank Is truly a seral semi public institution but in a reciprocal sense it has it its obligations to the public but so has the public equal obligations to tile bank no one who has not sound banking principles at heart has any business siness bli in a bank whether as a banker or as a customer the banker Is a semipublic semi public servant lioa ha Is charged with ith the heavies of responsibilities and obligations that occur in our economic life but lie he can meet beet these fully only through the coo pesa tion of good laws rood good public or 1 who are empowered to exercise au all dhority over his bauk bank aud and good business methods on the part or of business men generally who utilize his hia bank only through such coupe saLlon by all elements in our nations comal unit life can we be abi of a failure proof banking structure the administration at N lashing ington toll has taken hold of this problem with A ith a firm grasp of essentials and is euellis ex exen elLIS la ing splendid leadership toward the desired end the strongest feature of the government program will ile be found in ill recognizing the joint responsibility of the public of business and of ment officials together with the bankc ill themselves in creating tile the kind of hanking banking the nation should have bare |