Show GIVES BASIS OF SOUND BANKING speaker outlines Three threefold fol d 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 nation universally the tha type of banking it should have francis 11 sisson president of 0 tho the american bankers association declared in a recent address ile he said that the effle lency of government officials upon whom too the people rely to supervise the banks properly and the patronage ot of the people themselves are factors actors in the kind of 0 banks a community shall have there can be no question that the people of the united states should have banks immune front roni failure and wholly free frea from bad or questionable banking mr sla sie son BOB said it la Is not enough as president roosevelt has sald said that while some bankers had been incompetent or dishonest this was not true la in the vast majority of our banks A situation should exist in which there Is not even evea a small minority ot of bankers open to question there should ta be no BO room for dishonesty or incompetency to exercise any influence in banking maywhere wiy where while bad faith and bad management enter the human factor actor in all types of business abir effects in banking should be surrounded by 6 uch ch special safeguards as gren to der them no longer a factor actor in bank failures allures the responsibility for or bringing this about however cannot rest upon the bankers alone for or the means to accomplish it are not wholly in their hands there are other essential elements one Is the efficiency ein dency 0 of government supervision since we rely so greatly upon supervision it may unless it Is 0 of the highest order in safeguarding the public interest create a sense of 0 false also security supervision per ner vision should render bad ban kliar impossible but it has failed ailed 6 to d do oso so there was supervision by presumably the highest type of 0 bank supervisors in every one of 0 the instances 0 of o questionable banking that has shocked the attention of 0 the country during the past three years therefore a thorough strengthening ot of supervision Is clearly called for it if the people are to rely on it tor for the protection of their interests teresta In the publics public part another essential factor in main good banks involves the part played by the public in banking there Is certainly a responsibility on the people themselves to support that typo type of 0 banker whose rigid adherence to sound bound principles makes a sound bank rather than to give their patronage patr to the easy going banker who may be easier to do business with but whose methods create a weak bank bank customers are charged with a great responsibility in protecting the safety ot of their banks in respect to their utilization of 0 the assets of 0 the banks as borrowers hanks banks have hate failed because many of 0 their loans and securities created in good faith by bankers in cooperating with the business interests of 0 the country proved unsound under subsequent conditions an unsound ld loan Is created abed by the borrower as well as the hanker A bank Is only as sound as Us its community and this applies also to ohe banking structure as a whole in rel relation atlon to tho the economic condition ot of lie he nation as a whole |