Pratt's Digest of the Revised Statutes of the United States Relating to National Banks; To Which Is Appended Information How to Proceed in Organizing National Banks, Suggestions for Their Management, and a General Form of By-Laws Also, a Description, in D (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1878 Excerpt: ...and renewals of their paper to suit their own convenience. Such favors are not the attributes of good banking, the proper foundation of which is impartiality of treatment, and the exaction of the performance of contracts. Never renew a note or bill, or allow it to lie unpaid, merely because the money cannot for the moment be placed with equally good advantage, for it is only by always requiring prompt settlements that the discount line can be controlled, and made at all times reliable. Distribute the accommodations of the bank as widely as possible, rather than concentrate them in a few hands, for large loans, though sometimes proper, are generally injudicious, and frequently unsafe, for large borrowers are apt to dictate their own terms as regards payment; and when this is the relation between a bank and its customer, the former is pretty sure to be the sufferer. Every dollar of depositors' money loaned by a bank is owed for, and its managers are therefore under the strongest obligations to its creditors as well as to stockholders to keep its discounts under their own control. Treat customers as liberally as may be consistent with prudence and strict compliance with law, bearing in mind that a bank usually prospers as its customers prosper, but never permit them to dictate the policy to be pursued in the management, and never so extend accommodations to them as to trench upon the requirements of law in any respect. If there be any doubt as to the security or the propriety of discounting any paper offered, give the bank the benefit of the doubt, and refuse it. If there be reason to doubt the integrity of a customer, close his account; for the risk of dealing with persons of doubtful integrity is seldom or never compensated by the profits of their business. ...