Show BANKERS IN N NATIONAL MOVE MOYE FOR I UNIFORM FINANCIAL PRACTICES I Would Promote Gre Greater ter Consistency Among All the State Laws in in Respect to Banking Conditions Uniform Conditions Uniform Uniformity ity of Practice and Understanding Will Make Malee i for Greater Convenience Efficiency and Safety for All Business I I By S. S J. J HIGH President State Bank Division American Bankers Association I i interchange of business and the quick transportation RAPID tion n of goods in in the United States coupled with almost instantaneous instantaneous instantaneous in in- means of inter communication by telegraph telephone telephone telephone tele tele- phone and wireless have welded the country coun- coun try into an economic unit The nation is not Pf R tC in a n business sense conducting its affairs in ina in a water-tight water compartments as in a measure it d did id in the days of slow travel and remote places but styles methods commodities 4 41 and business practices flow freely today in all directions Therefore it is desirable that finance trade and industry throughout generally unit uniform uniform uni uni- t tl the ie country operate along form or at least consistent lines so that a contract or an agreement b or obligation in connection with business transactions shall l mean virtually the same thing in all aB parts of t the country Particularly necessary in this connection is the establishment of uniform financial and banking practices so as to facilitate facilitate facilitate fa fa- fa- fa the flow of trade along accepted and understood lines s. s SO SJ J HIGH Banking in the United States States- Is is recognized recognized recognized as a semi-public semi type of business and is therefore subject subject subject sub sub- to laws to define the scope scone and character of its activities These laws at 1 present set up upi n r- r a great diversity of conditions under Lluu r w unu banking U is w conducted lu IU u various parts of the country since they come from both state te and federal fed eral oral authorities Tho national banks are aro all chartered by the federal government gov government nn and therefore on tho the n n same sarno lines In every state of at tho the thoI I I Union but there thore i Is no such regularity regularity regu regu- larity in respect to the Ule conditions I under which h the state banks chartered by the respective forty-eight forty states must conduct their business All state banking codes while they havo have similarities similarities simi simi- also have many great dissimilarities In respect both to the tho national national na na- bank laws and the banking laws covering state bank banle operations In other other oth oth- er or jurisdictions Bankers Move for Uniform Laws The State Bank Dank Division of the American Bankers Association which latter includes In lu Its membership banks of or all descriptions throughout the country subject to all the variations variations varia varia- of at state and fed federal era banking la laws ws is committed to tho the effort to bring about greater consistency and uniformity among the statutes of at all an these various Jurisdictions This body Is conducting a vigorous nation wide do campaign urging that active steps be betaken betaken betaken taken to secure greater ordination co In banking legislation more equitable conditions and more uniformly effi efficient dent clent public supervision of banks inthe In Inthe Inthe the several states The organization Is particularly concerned concerned concerned con con- with fostering this movement to bring about more uniformly desirable desirable desirable desir desir- able conditions throughout the United States In respect to the public supervision supervision supervision super super- vision of or banking institutions by tho the state banking bank Ins departments It Is on record as favoring the policy polley that the Important office of or state bank commissioner commissioner commissioner commis commis- should be kept as free tree from rom entangling partisan politics as the tho judiciary judiciary ju ju- itself and should bo ho completely complete complete- ly detached from all other functions of state government It Is also on record as favoring the policy that the tenure of at office of state bank commissioners should be ba made more secure and ana lasting than Is now I the case in 10 many state sune jurisdictions and that this Important public officer I be be granted grunted sufficient compensation i and discretionary power so that the theoffice office shall shaH attract and retain tho the servIces services services ices of or men of outstanding executive ability and successful banking It is also a part of this policy that the bank banle commissioners commissioner's ability to serve well should be strengthened by providing him with adequate forces of or bank examiners selected on the basis of ot merit from men having ha the site qualifications of at 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 State Stat Laws The Associations Association's State Bank Divi Division sion sian has lias recently concluded a nationwide nationwide nation nation- wide survey of state banking legislation legislation legislation legisla legisla- tion and conditions and in general has bas discovered a definite trend along the following lines There is a distinct tendency among amons the states to raise the minimum cap capital capi- capi tal required for banking institutions to and also to give the bank banle commissioners or the banking boards sole power as fiS to the granting of ot charters charters char char- tel's for new banks thus enabling them to use discretion as to the tho need or 01 desirability of at added banking facilities facia- facia ties or 01 the fitness of at the organizers tc td enter the banking field In this connection connection con con- many states are creating banking boards to act In an advisory capacity with the tho state bank commis commis- There has also been observed a tendency to Increase the compensation compensation tion of at the bank commissioners and to lengthen their terms of at office and to give glye them power to appoint deputies and examiners so as to buildup buildup build up an adequate force Corce to carry out their responsibilities and duties An important tam tant tall augmentation of ot the powers ot or otC orA C A magnetic personality is sometimes sometimes sometimes some some- times also a dynamic speaker i i j i iI 1 I i I I j j. j I I I I I bank commissioners in some states Is found in la laws vs giving them complete charge of at Insolvent banks and their liquidation as distinguished from more costly liquidation through the courts In the Public Interest j I Distinctly in the tho public interest are laws prohibiting or limiting an officer or director of ot a bank from borrowing from his own bank unless his collateral collateral col col- lateral security Is approved by a majority majority majority ma ma- of the board of directors of the bank Also there Is recent legislation noted providing for tor closer supervision and regulation of building and loan associations credit unions finance companies and private banks In n some states measures have been enacted broadening the field for or Investment investment In- In in 1 vestment of funds ot of savings banks and trust companies which have ha materially ma tonally enhanced the service that these institutions can render particularly particularly in the way of ot operation co-operation with their customers in personal financial management Another type of ot legis legis- legislation laUon lation important especially to banking bankIng bank bank- Ing In view ot of the frequent efforts to toI defraud banks Is that which makes Ithe the Issuance of worthless checks a a misdemeanor with specific penalties The State Bank Division of the American f Bankers Ba kers Association endorses endorses en en- in the fullest degree in principle plo pIe the development of banking laws along the foregoing lines and Is actively active active- ly engaged In fostering the spread of such legislation wherever its services are considered useful both bath to banking and to the tho public Uniformly sound banking institutions and practices together together to to- together gether with common methods and nd understanding understanding understanding un un- will materially add to the convenience con efficiency and safety of or business in serving the well being of or the tho public In all parts of tho the nation especially In those transactions Involving ing lag dealings different local ties |