Show BANKERS IN NATIONAL MOVE FOR UNIFORM FINANCIAL PRACTICES 1 w u promote greater consistency among all the laws in respect to banking conditions uniformity of practice and understanding will make for grea greater er convenience efficiency and safety for all business by S J HIGH president state bank division american bankers banker association RAPID artion interchange of business and the quick transportation of goods in the united states coupled with almost instantaneous means of intercommunication communication inter by telegraph telephone and wireless have welded the country into an economic unit the nation is not in a business sense conducting lits its affairs in watertight water tight compartments as in a measure it did in the days of slow travel and remote places but styles methods commodities and business practices flow freely today in all directions therefore it is desirable that fi finance nince trade and industry throughout the country operate along generally uniform or at least consistent lines so that a contract or an agreement or obligation in connection with business transactions shall mean virtually the same thing in all parts of the country particularly necessary in this connection is the establishment of uniform financial and banking practices so as to facilitate cili tate the flow of trade along accepted and SJ sd HIGH understood lines banking in the united states is is recognized as a semipublic semi public type of business and is therefore subject to laws to define the scope and character of its activities these laws at present set up a great diversity of conditions banking is 13 conducted in various parts ot of the country since they come tram from both state stat and federal authorities the national banks are all chartered by the tha federal government and therefore operate on the same lines in every state ghate ot of the union but there to la no such regularity in respect to the conditions under which the state banks chartered by the respective forty eight states must conduct their business all state banking codes while they have similarities lari ties also have many groat great dassi dissimilarities nl lari ties in respect both to the national bank laws and the banking laws covering state bank operations in other jurisdictions bankers move for uniform laws the state bank division of the american bankers association which jfe rd includes in its membership a athe the bof ot all descriptions throughout the aba country subject to all the variations of state and federal banking laws Is committed to the effort to bring about greater consistency and uniformity among the statutes of all these various jurisdictions this body Is conducting a vigorous nationwide nation wide campaign urging that active steps be taken to secure greater coordination in banking legislation more equitable conditions and more uniformly efficient public supervision of banks in the several states the organization Is particularly concerned with fostering this movement to bring about more uniformly desirable conditions throughout the united states in respect to the public supervision of t banking institutions by the tate state banking departments it Is on record as favoring the policy that the important omee office of state bank commissioner should be kept as tree free from entangling partisan politics as the judiciary itself and should be completely detached from all other functions ot of state government it to is also on record as favoring the policy that the tenure of office of state slate bank commissioners should be made more secure and lasting than is now the case in many state jurisdictions and that this important public officer be granted sufficient compensation and discretionary power so that the office shall attract and retain the services of men of outstanding executive ability and successful banking experience it la Is also a part ot of this policy that the bank commissioners ability to serve well should be strengthened by providing him with adequate ail equale forces of bank examiners selected on the basis of merit from men having the alto ite qualifications of honesty ability training and banking knowledge to carry out the duties of their offices on the highest plane of usefulness to the public as well as to banking the trend of stat laws law the associations state bank division his has recently concluded a nationwide survey of state banking legislation and conditions and in general has discovered a definite trend along the following lines there is a distinct tendency among the states to raise the minimum capita tal required for banking institutions A 1 6 and also to give the bank 1 or the tha banking boards a power as to the granting of charters charter for new banks thus enabling them to use discretion as to the need or desirability ot of added banking facilities or the illness fitness of 0 the organizers td tc enter the banking field in this connection many stales are creating 9 banking boards to act in an advisory adviser y capacity with the state bank commis sIone rJ there has also been observed a tendency to increase the compensation of tho the bank commissioners and to lengthen their terms of office and to give then them power to appoint appolit necessary deputies and examiners so as to build up a n adequate borci to carry out their responsibilities and duties an important augmentation ot of the lh powers power ol cd bank commissioners in some states la is found in laws lawa giving them complete charge ot of insolvent bauks banks and their liquidation as distinguished from rom more costly liquidation through the courts court in the public interest distinctly la in the public interest are laws prohibiting or limiting an officer or director ot of a bank from borrowing from his own bank unless his col lateral security Is approved by a ma lorley ot of the board ot of directors ot of the bank also there Is recent legislation noted providing tor for closer supervision and regulation of building and loan associations credit unions finance companies and private banks in some states measures have been enacted broadening the field tor for in vestment ot of funds ot of savings banks and trust companies which have rna ma serially ler teri lally ally enhanced the service that these institutions can render barly in the way of 0 operation cooperation co with their customers in personal financial management another type ot of legs lation important especially to bank ing in view of 0 the frequent efforts to defraud banks Is that which makes the issuance of bf worthless checks a misdemeanor with specific penalties the state bank division of the american bankers association en borses in the fullest degree in princ pie the development of banking laws along the foregoing lines and Is active ly y engaged in fostering the spread ot of such legislation wherever its services are considered useful both to banking and to the tha public lc uniformly sound found banking institutions and practices to gether with common methods and un der ferstanding standing will materially add to the convenience efficiency and safety of 0 business in serving the well being ot of the public in all parts of the nation especially in those transactions involving dealings between different lacall ties |