Show FOR FAILURE PROOF BANKING STRUCTURE speaker outlines outline threefold co opera operation tien between bankers government officials official and the public to maintain bank standards WO elements beside the bankers TWO themselves are re required in order to give the nation universally the type ot of banking it should have francis if president ot of the american bankers association declared in a recent a address d he s said a t that hat the efficiency ot of ode besim the fid g government t 0 officials el a Is upon whom the people rely to supervise the banks properly and the tha patronage of 0 the people themselves are factors actor in the kind hind of banks a community shall have there can be no question that the tha people of 0 the united states should have banks immune from failure allure and wholly free res from bad or questionable banking mr sisson said it Is not enough as a president roosevelt has said that while some gome bankers had been In compa compe tent or dishonest this was not true la in the vast bast majority of our hanks banks A tit sit bation should exist in which there lj IA not t even a small minority of bankers OP open en to question there should bo be no room for or dishonesty or to exercise any ny influence in banking anywhere nowhere ny where while bad faith alth and bad management enter the human factor actor in all types of business their effects in banking should be surrounded by such ape special safeguards as to render them no longer a factor in bank failures the responsibility tor for bringing this about however cannot rest upon the bankers alone tor for the 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 so eo greatly upon supervision it may unless it Is of 0 the highest order in safeguarding the public interest create a sense of fair ale security supervision should render bad bandine impossible but it has failed ailed to do so there was supervision by presumably the highest type irps of 0 bank supervisors in every one of 0 the instances of questionable banking that has shocked the attention of 0 the country during the past three years therefore a thorough strengthening of supervision Is clearly called for or it the people are to rely on it to the fullest extent for the protection of their interests the publics public part another essential factor in maintaining good banks involves the part played by the public in banki banking Dg there is certainly a responsibility on the people themselves to support that type of banker whose rigid adherence to sound gound principles malea makes a sound bank rather than to give their patronage to the easy going banker AN who bo may be easier to do business with but whose methods cro create a weak bank bank customers are charged with a great responsibility in protecting Us tt safety of their banks in respect to thor utilization of the assets of the banks as ai borrowers banks have tailed failed because many of 0 their loans and securities ere crested created in good faith alth by bankers in cooperating with the interests of the country proved unsound under subsequent conditions an unsound loan Is by the boi rower as ae well as the ba banker batiller tilter A bank Is only astound as its community and this applies also to the banking structure as a whole in relation to the economic condition of 0 the nation as a whole A batik bank Is arty tru ly a semi public institution but in a reciprocal sense it has its obligations to tile the public but so hn has the public equal obligations to the bank no one who has not sound banking principles at heart has any business busl busi ners in a bank whether as a banker or as a customer the banker ls Is a semi public servant ile he Is charged with the heaviest of 0 re and obligations that occur in our economic life ike but he be can avet these ully fully only through the co compera opera ion of good laws lawa good public officials official who ho are empowered to exercise u dhority over his bank and good business methods on the part of 0 bu burines busl sines net men gAne generally rally who utilize hu hij bank only through such elicit cooperation by fill 11 ll elements in our nations community life ak con can we wa be assured of a failure prout banking structure A the tha administration at washington WashIng tOll has taken hold of this problem with 4 firm giap of 0 essen essentials tiala and Is ing splendid leadership toward the do d sired alred end the strongest feature cabure of the tt government program will be ba found la in recognizing the joint responsibility ct 01 the public of 0 business and of 0 government together with the banceri themselves in creating tho the kind of c barking banking the nation should have bays |