One of the perplexing questions which a new manager may be called on to decide is that regarding his relations with other banks in town. Should he be friendly or hostile? It may very likely be that one of the other bank managers is making a dead set at his business, secretly interviewing his customers and offering them special inducements to change their accounts.

The Profit In Friendliness

On general principles it can be laid down that it is best to keep on friendly terms with the other banks. Sometimes that is next to impossible because of the opposition manager's conduct; but the advantages resulting from a friendly co-operation of all the banks in town are important enough to make it worth while trying to bring about One advantage is that the banks are the better able to check the practice of double or triple borrowing by designing persons. A man who may be entitled to, perhaps, $500 credit and no more will frequently go to each bank in town for that maximum sum, and each manager remain in ignorance of the loans from other institutions. When the banks act in harmony, there is a much better chance of these operations becoming known. Then there can be understandings about rates of discount and commissions, the loyal observance of which conduces to the profit of all the banks.

On the other hand, when the competition is exceedingly bitter and personal, when the managers of two banks hardly speak on meeting, there is apt to be an unsatisfactory state of affairs all round: rates all gone to pieces, and business done at a loss or no profit; the customers, taking advantage of the fact that there are no consultations or friendly conversations, play off one bank against another, and, besides getting things done for nothing, they are likely to get more credit than they are entitled to.

Dealing With Head Office

As head office is the source whence promotion and advancement come, the manager naturally regards his relations with head office as of the highest importance. He especially wants to be on good terms with the general manager. The general manager is the chief executive officer of the bank. Although he derives his authority from the board of directors, and has his important steps confirmed by it, he is the law unto the branch managers.

Communication between the manager and the general manager takes place almost wholly by letter, except in the case of branches in the immediate vicinity of head office, and even when the manager of a nearby branch has secured favorable action on a request or an application of his, the policy is followed of writing letters about it, so that the whole affair is properly recorded, and can be referred to at any time. Thus it comes to be a matter of some consequence to the manager that he have skill in letter-writing. The man who is able to express himself clearly, concisely, vigorously, and to present the salient features of propositions so that they will make the proper impression will be more successful in putting through the deals of his customers than another man possessing an equal reputation for judgment, but who is not so facile with his pen.

The author has a clear remembrance of what he was told by a senior manager about this matter of head office correspondence, on the occasion of his promotion to a branch managership. After explaining how the correspondence should be conducted, and how a great soberness and conservatism of expression should be cultivated, the senior wound up with the caution: "And don't prophesy." Those who never occupied the position would be surprised to know how strong is the temptation to inform the general manager in these letters what will happen in the future - in connection with the branch business, and the developments in trade, prices, etc., in the neighborhood. This desire or temptation should be promptly stifled. Otherwise the manager will not be able to avoid appearing rather foolish sometimes in the eyes of the person whose good opinion he specially wishes to cultivate.