Historical Newspapers of South Carolina

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, '"The Advantages of the Group System | And What ft Should Undertake." | i Address Delivered By Mr. john W. Si?npson at fleeting of Group No. 2, Newberry% f May 19, 1914. I - I i ZVIr. President and Gentlemen of Group \o. j: Permit me, in the beginning, to exp:\ ? my appreciation of tile honor \? n have done me in inviting' me t> address von tliis . .. ^ . . afternoon. and to assure von that 1 esteem it both a pleasure ^* ... . , .,' ^ and a privilege to be with you. rThe subject assigned to me is "Thy Advantages of the Group System and What it Should I ndertake. ' Any adequate discussion of this, however, involves, as the prerequisite to it> proper understanding, some reference t - the fundamental purposes which underly and made desirable the South Carolina Bankers Association itself. As I understand it, the S??uth Car. ! olina iJanker.- Association was formed tor the purpos-j ot iifiititior oil r?+ tlip hank-pr< nt mir Stntp into ;i comoaet whole. "1,u,"h "4i " ? ~ - ? -- which mav act as a unit in the interest of banking, and iliDr^ii i 1 a which the information and experience gained bv any banker mav be made beneficial to all bv means of free discussion anu personal contct. 1 he achievements, alike oi the most -uccessful bankers and the difficulties and perplexities of the most inexperienced can in this way be made helpful to all in develop ing ineir uusint>:> a.uu m uc<umg nuu men cuowinvi.i, u. basis fair to both banker and customer. This attrition of mind upon mind, this discussion of exper. ience, of problems and of policies can be made possible only . through annual gatherings in which these matters can be considered in a practical way. And these conventions, or "comings-to-gether" serve the additional purpose of acquainting the bankers with one another, which, while apparently only an incident or by-product of such an organization, is really one of - ? "IT" 11 the most important results ot a JJalikers Association, we a;i know, from experience, that no matter how much we may have dealt with a man at long range the connection takes on a new meaning and the relationship becomes more satisfactory aften we know him. Each understands the other better. During that period in which the business interests ot our State could be served by a comparatively small banking capital, and when banks therefore were comparatively few in number, and the problems confronting them comparatively simple and few, an annual convention gave ample opportunity and time for discharging the purposes of the Association, provided, of course that all of the bankers would avail themselves of it. Tint here A-as the rub?a "Teat manv either would not or could v not avail themselves of it, and the question then arose "How can onr Association be made of the greatest good for the greatest number?" fur in it there undoubtedly lie ^possibilities of much good to all. In addition to this problem, which confronted the Association from its organization, another arose. As the prosperity of our State increased, business developed which required the organization of many new banks and which produced many . new problems in financing, in methods and in policy. Owing to their number, it became manifestly impossible to discuss, to ^ digest and to unify these at the annual meetings of the Association, and unless this could be done, these annual meetings could not be made profitable in the highest degree to all of the bankers. How then could these two difficulties be overcome? The solution seemed to lie in the adoption of the Group System, and our Association ordered its organization in 1912 and the speaker had the honor of being made chairman of the committee charged with the duty of dividing- the State into groups. Our instructions were general, and somewhat v; gue. We were given no plan for our guidance and no principle to follow. We were left free to act as we pleased. We decided that a k Group System meant a division of the various banks of the J I State into groups, not haphazard, but after a definite plan wnicn would cnaDie tne groups in inemseives ro couionn iv> uit* fundamental purposes of our Association, and then 10 contri- ; bute the digested results of their organizations to the Association as a whole. W ith this in mind, we decided that contiguity and the number of bankers in a given territory should control us rather than the capitalization, for to our minds, convenience in assembling and the proper number of men interested in approximately the same problems were the essentials 10 the successful working of the system, and upon this basis we recommended the formation of the present groups. The system has been in oneration but little more than a vear. and the first meetings of some of the groups were only for the purpose "of organization. In fact some of the groups have not yet realized the possibilities they possess and have undertaken nothing seriously. We. therefore, cannot yet see any results from the system. In my opinion, however, there are great advantages which must result both to the members of the individual groups and to the Asociation, provided these groups are properly conducted, and their energies directed in the right channels. Tn a ft end in.cr onr State Convention. I have been struck bv the fact that those in* attendance are largely the higher officers of the larger banks, and that the junior officers and clerks do not attend. This, of course, is natural and in a measure to be ex1 pected as there are many swall banks in our State which are manned bv a single officer, with no assistant, or at best, only one, and these officers cannot attend the State conventions,They, however, have iust as perplexing problems, and their right attitude towards financial questsms is just as important as the problems and attitude of the officers of the bigger banks. They need the helo of the conventions, and as they cannot co to the conventions, the conventions come to them through the Group I "" t n!:i:ar:lv tl.i ] ' ! : :u\ " l\\ i?v a ;\T i ;u x ! ? 1/ .'...v.' vv< i"k a:i.] i:> ; ' K .-] .-'raii' ' a: 1 a n\ - ;! : 11 c 11 11 * l' > L ' 11 * 1 41 11. C . . \ . 4 \ and vitally in connection wit meeim^s. lu ne oi -reatvM subjects, and the>e >ubject> affected. though a theoretics er of >oine -ubject <;t hnnied and the subsequent ] themselve> i- vahiahk. in meeting will <; t:j. :n is compose* 1 entirely < ! the not include the practical ?'! tlit* question- winch < ai;y c< Tlic* members <>f a i; ' jti] limited area. and have lar^ pr ?l<lems. The discission some member the most de.-i course, result in a unity of banking. Any group w hicli fails to of live tnpics, in -ts program feature.^ and on invited spca lack of interest, and a good of vital importance to eveh i * In these group meetings, tance of the smaller banks i lion to general policies and then be presented in a fori whereas, without syich prev - i .1 11.1. attitude upon me smaiier o; tion which it deserves, an< be voiced at all. v There is a third advanta* groups which, I think, cann that is the development of them, apart from these gron contact with other men in t hear any discussion of hankwould have no incentive to g to shoulder contct at these i mind, the necessity for disci cssarilv quicken their menta and give them a l)roader con also develop in them the al logical and clear manner, a with others who will see th< ties of wider usefulness an/ come. Xor is the advantage of t under estimated. The ban must have constant dealings ershave met at these group mon interests and have hac one another and can do bu and greater confidence than mote a friendliness and a cc intercourse of every particle only that friendly rivalry \vl These are some of the ; groups which readily sugge system a most valuable part ar additional advantages t the reiex effort of the systc As the groups grow in value, many small banks \\\ Association will join in ord These small banks have felt at the conventions and thai affairs of the Association, represented at the group m voice in forming its recom; that in this way they will h< tion. The result will be tli will grow and both the As be benefited. As our State Conventions consists largely of set addre* I have emphasized as desira ing are largely elmiminated the variety of interests repr< action or discussion by th.os< tliere cannot be, from the v< full discussion necessary foi as a whole. With the groi difficulty should disappear, interests of its section, and i digested form the concltisic way, practical matter- wot compact form and could be the time limits of the conve high degree Educational to and would add to our am benefit which, in the opink now. And again, from another insure the permanence of tl effectiveness, the Associatio r\ -f Pin n-rA1in w\'Ct? L Ci U111 I \ J. W'VN these men, and furnish th leaders and speakers, who b< will be able to carry our As mcnts and to wider useful ests-of our section. The work which the groi and may be readily inferrec tages of the system, for th< upon the right use of their car. :i h 11i - awa fr- -m ! 1 . * I": - - V\ is.! !.! !! 1; 1 ' "? ' ti\ ::i - >. . V. : til -iiM . ] 1? 1 i v' .*> t i . !l I t 1 '1 iv. v > 1 ! ' I ?K'i t ' r.cw i;:>. '? juvt'.u r \v 1.1 a r-.a *z:it 1 i ,? .!, - r 11- 11 j ]? *i r , l s : i* i i n:i :* \* 1 1 1 1 " ' ' * T li t:ic w*?rl?! ;u :ii i;e. i ix-^e ;i;> hen< ill. >Ii; 'ill*.I deal with practical <hould be (Ii>cii.-sfd hy il)c hankers ; .1 <li-cu-sirn by > '.me eminent bankliate inteie>:> to tlx- members n the 'racticril <lisci:-si. n 1 >y* the membermv <?])miiiii. h'?\\e\er. n > ^r*uip n of tlie prolamine !* which rencal (h-ci'S-.*tn>, jin : >. men ii 'ein i1 r / * r 11 t r iii iii th;<c - !.) n M"<*iil the nu mbers. > arc drawn from a comparative! v 1 \ the same intere.-ts and the same >t these will inevitably brim; from rable course to pur>ue. and, ;n due i acti >11 based on ri^iit principle- >>f ' include these practical discussions inie. and that depends on the social kers exclusively, is bound to die of programme committee is therefore .* croup. too. many matters of great imporn the attitude of the State Associalaws may be discussed, and may ;iblc way at the State convention, ions discussion, the effect of such anks may not nave that consideral their views and wishes may not *e to the member bankers of these ot be too strongly emphasized, and the men themselves. Many of ip meetings, would never come into Vtpir nwn liriP TIlPv would never in?" problems and policies, and they ;et outt of their ruts. The shoulder neetings. the impact of mind upon issing subjects with others will nec1 processes, widen their sympathies ception of their profession. It will )ility to discuss their business in a .nd, by bringing them into contact ?ir ability, open to them opportuni1 of a commensurate increase in in he social side of these groups to be ks of any circumscribed territory with one another, and if the bankmeetings, have discussed their com1 a good time together, they know siness with a better understanding they could otherwise. They pro>rdia!ity that will rob their business : of suspicion or distrust, and leave lich is a spur to best endeavor. idvantages to the members of the st themselves, and which make the of our State organization. There o the Association, growing out of m on the Association. popularity, and demonstrate their hich heretofore refused to join the er to get the benefit of the groups, that they could not be represented t they would have no voice in the They wjll now see that they can be eetings, that there they will have a mendations to the Association and ?lp guide the policy of the Associalat the groups and the Association sociation and the small banks will are now conducted, the programme ;ses and the practical matters which ble in connection with group meetL The reason of this is that with isenteci, and no previous concern jof > rpnrpspntincr these varied interests. sry nature of the ease, time for the , r a proper action by the convention ip system in proper operation, this for every group should present ilie recommed to the convention in well ms to which it had come. In this ild come before tiie convention i discussed and disposed of within ntions. The results would be to a all che members of the convention lual gatherings an interest and a )n of some, are somewhat lacking I angle, the group system will help ic State Association. 'For its best n must be manned by trained men -m will discover, develop and train e State Association with officers, ^cause of this training in the groups sociation on to greater accomplishes in advancing the business inter ij,? should undertake is implied in, I from the statement of the advance very advantages are dependent opportunities by the groups. ! i:nvc *ra -c r?. reivjuv ; " > i;u r; *. "i ? _ ?.cer> ? I .;ir^c r . r n i piv < i ' 'i:r s; na!<?.-i<iks. 1 lie ?i k r .1.12 n . i i! it]?i; icitti< .il of l 'eir -n i > 'i- i:np<-nam in ii:e remote di-triet> a> i'in-\\';vr ;:iis, tin- lack <>f tlii> application in the-e distr frequently is. destructive of good results from c vc-ti in tin- financial centers. The relationshi evervwheri is too close to make be<t result. there is a lack of understanding or a division financial principle or pohey. ( hie of the very 1 thereiure. i> whicii a .ur /:;> s* -mid devote itsell members upon the bi^ banking and financial day. It is a fact, pro! ally known t > a.11 of y( the ott'oers in our .smaller banks know little, i -uch subject a> the Income Tax Law or t!' sy-tem. And 1 do not say this in a critical is natural that they should not. They do not c with < ther bankers and the\ have no one whh these tilings. They are busy about the routine daily work, and are frequently looked to by ti do most of its calculating and to draw many ments. hence they have little time and practical ment to read. The result is that they do not r tance of these matters and pay litt-. attcntioi groups should overcome this defect, and. by pr presentations of such matters at the meetings 1 knows, and a subsequent questionaire, in whi encouraged to participate, every banker woulc gent idea of them and would grow in usefuln as well as into a higher type of banker, with his business and a consequently increased pride in his profession. Xot only is this true in regard to the big confront us at all times, questions of genei finance, but it is equally true of those many < usefulness along educational and practical line the intimate relationship between the banker Conspicuous among these just now is the effor leading bankers throughout the country to i tural methods, both by disseminating informs fering incentives to the use of the improved m the bankers may not be entirely unselfish, be< that whatever benefits the farmer will also h neither are they entirely selfish. They are he ing to use the influence they have for the upl: of the people with whom they come into dail whom they take great interesc. All of these which concern the daily life of the clients oi small and large, may be, and should be, brough of the members of these groups, that through tion of our State may get the benefit of the t (lone by the bankers ot other Mate and territ of you are probably aware, much of this kind c apparently foreign to the duty of a banker, ye of infinite value to him and his community, undertaken in our State. One bank of which centrated on the matter of improving the qua ing the number of hogs raised in its county, results. Another, by judicious use of prizes, h lated the production of corn, and so on, all of w low plane of advertising is entirely, legitimate, cr, valyie to the banker than many other forms One other thing of every day practical vah which the group meetings might profitbly dc suggests itself to my mind. It has\been my many customers of banks are suspicious and, ri provocation, to change their bank account, their money altogether. If they have previous with a hank, and their present bank deviates in from that to which they have been accustom dissatisfied. J f the community in which they 1 different custom in respect to the matter of statements or of almost any trivial thing, the) stop doing business, and once they have stopp* to get them to again put their savings into ci times this becomes a really serious matter. N< the case, that practically the same conditions su of a limited area, such as we included in the v this State, and their attitude towards their cu conditions under which they do business are id in forming the groups-, this consideration wa. mind, 2nd there is little reason why all of the ' should not adopt the same policy on all th< things in th-^ir relations with their clients. 1 suspicion on the part of the customers would in large measure, the jealousy, and the hard i suits so frequently from loss of a customer without real reason for the change, would be the past. The group meetings, by free discuss ters. and by a concerted action and policy, res discussion, would knit the banks closer togetl SclllMltU <,111VI 1 i I Kill*. II t V-Iiv.iin.iiv. I have thus briefly tried to outline the pur tages of the Group System, and to suggest fot tion some things to which the group may profit selves. There are many others which I mis which have doubtless already occurred to you forbids my mentioning just now. I must h< conclusion, the hearty co-operation of all the i ? realizing the possibilities from your group. It cess if the members sit back and look to one < work. It is only by co-operation, and team v of all the banks, a willingness on the part o send its representative and on the part of ever + 1iii7 "K/irf m/ifhrirrc fltnf oif^rcc lillJUlV- 111^ I./ V. L LKJ LUV. uiui, wkivvv.;^ and success for the individual groups means State Association, for as the groups realize th and use them so will the State Association scope and in effectiveness. a-icv \] v f :".u\r>11 > is ju<t C, ail i IV: ids :r.a\ be, and the ] ?11o\ itself, [) between banks ])o.v>ible where ir> >n a general imp ?rtant things. is informing its tjiu-siions of tliP ii. that many of f anything about te new currency spirit, because it une into contact whom t:> ili-'cnss matters of their ie onvmuntiy to >f its legal <1 gaily no encourageealize the impor1 to them. The actical and plain )v some one who * i cli all should be 1 <rain an intelh'o less to his State, a bigger idea of ; and satisfaction questions which *al principles of opportunities for s, which arise in / and his clients. ' *t being made by improve agricul 111U1I dliu U\ Ui" ethods. In this, :ause they know tenefit them, but mostly endeavori ft and the relief y contact and in practical things, : all banks, both t to the attention them every seclest that is being ories. As many >f practical work, t upon reflection is already being I know lias con.lity and increaswitli wonderful as greatly stimu,*hfch even on the and of far greatof advertising." , le to bankers, to >vote themselves, observation that sad}-, upon slight or to withdraw sly done business i some small way Led, they become ive has a slightly exchange, or of - are disposed to \ ?d it is very hard rcr.lation, and at 3\v it is generally rround the banks arious groups of stomers, and the entical. In fact, s prominently in banks in a group ?se non-essential :>y so doing this be removed, and pplincr wlnVVi rf1 ' '*"J5 " * vto another bank, made a thing of ;ion of such matulting from such ler and ensure a pose and advan your consid^ra:bly devote themrVif cii rrrr/^cf nr>A 5 I1L S>S / cluvjl , but which time owever urge, in nember banks in cannot be a suc3r two to do'the rork on the part f every bank to \t tn mn. can be achieved, * success for the eir opportunities grow in size, in m