Show FOR FAILURE FROU BANKING STRUCTURE S M I 1 URE speaker outlines thre threefold fold co operation between bankers government officials and the public to maintain bank standards TWO WO elements beside the bankers themselves are required in order to give the nation un verbally ver sally the type 0 banking it should have francis H S s eon son president ot of the american bank ers assoc alion aton declared in a recent address he said that the effic ency of government officials upon whom the people rely to supervise the bani s properly and the patronage of the people themselves are factors in the kind of banke banks a community shall have there can be no question that the people of the un ted states should have banks immune from failure and wholly free from bad or questionable bani ing mr sisson said it is not enough as president roosevelt has said that while some bankers bank ershad had been tent or dishonest this was not true in the vast majority of our banka banks A sit nation should exist in which there is not even a small minority of bankers open to question there should be no room tor for dishonesty disho neety or incompetency to exercise any influence in banking anywhere while bad faith and bad manage ment enter the human factor in all types of business their effects in bank ing should be surrounded by such cial safeguards as to render them no longer a factor in bank failures the responsibility tor for bringing this about however howver cannot rest upon the bankers alone for the mens means to accomplish it are not wholly in their hands there are other essential elements one Is the efficiency of government supervision since we rely eo so greatly upon supervision it may unless it is of the highest order in safeguarding the public interest create a sense of false security supervision should render bad banking impossible but it has failed to do so there was super vision by presumably the highest type of bank supervisors in every one of the instances of questionable banking that has shocked the attention of the coun try during the pa past st three years therefore a thorough strengthening of super vision is clearly called tor for it the people are to rely on it to the fullest extent for the protection of their interests the public s part another essential factor in main good banks iivo ves tl e part played by the public in bani ing there is certainly a responsibility on the peo pie themselves to support that type of banker whose rigid adherence to sound principles makee makes a sound bank rather than to give their patronage to the easy going banker who may be easier to do business with but whose methods ere ate a weak bank bank customers are charged with a great lity in protect ng tl e safety of their banks in respect to tl e r util bation of the assets of the banks as borrowers banks have tailed failed because many of their loans and securities created in good faith by bani ers in coop crating with the business interests of the country proved unsound under sub sequent cond eions an unsound loan Is created by the borrower 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 rela tion to the economic condition of the nation as a whole A bank is truly a semi public insel aution but in a reciprocal s sense it lt has its obligations to the public but so has the public equal obi gallons to the bank no one who has not sound bank ing principles at heart has any business in a bank whether as a banker or as a the banker is a semi public servant he ile ib is charged with the heaviest of re I 1 11 t es and obligations that occur in fix our economic I 1 1 te fe but he ca i 1 meet the e fully only through the compera t on of good laws good public officials who are empowered to exercise au over his bank and good b sl st ness methods on the part of business men generally who utilize hta bank only through such cooperation by all elements in our nation s community life nn uin we be assured ot of a failure proof bali banking hing structure the administration at washington has taken hold of this problem with a firm grasp of essentials and Is e exercise erces ing splendid leadership toward the de sired end the strongest feature of the government program will be found in recognize rec ng the joint responsibility of the p of business and of govern ment isalt Is it oct Lt with the banceri banker themselves in creating the kind of banking tiie we nation should have |