1. Trustees

The officers of a savings bank are somewhat different from those in a bank of discount. Begin-ning with the trustees, these, as we have seen, are the projectors of the institution. They are usually the substantial men in the community where the bank is located. They number from fifteen to thirty, enough to give the bank a good standing.

Their chief work, in many cases, is that of organization. If a charter is to be obtained from the legislature, they are the actors in procuring it. If a bank is organized under a general law, in like manner they perfect the organization.

When a bank is once organized the trustees, in many cases, meet rarely, once or twice a year, and all the business is left to a board of directors chosen from their number. When the trustees thus delegate to a portion of their number all the business of the bank, about all that is often left is the filling of vacancies among their own number.

In many cases the trustees are the active governing body and do not appoint directors. When a bank is thus organized, the trustees are divided into committees; the four most important are the loan, finance, auditing, and examining committees.

The trustees adopt a series of by-laws for the government of their body. These provide how many shall form a quorum, the authority of the committees, and many other matters.

The declaring of dividends is usually clone by the trustees, but unless the charter or statutes of the state require them to act, there is nothing in the nature or importance of the declaration to forbid action by the directors.

2. Auditing Committee

As the duties of the loan and finance committees have been described, we need add only that the duties of the auditing committee are to examine and audit the vouchers for all payments, to count the cash at regular intervals, and, in short, to do everything properly pertaining to an audit. In truth, in most banks, where an auditing committee exists, the work is usually done in a perfunctory manner. We have elsewhere remarked concerning them: "They are very seldom thorough, very seldom go to the bottom of the figures which they are supposed to examine. Having ascertained that a certain amount of payment is supported by the proper vouchers, they very seldom inquire whether this is the entire amount of payment to be accounted for, which simple omission completely destroys all utility of the examination. The officer whose work they are supervising has only to withhold all questionable or improper vouchers from their examination. Such committees seldom take the time necessary for the proper performance of their duties, and seldom possess the ability. They ought, in justice to themselves and to their trust, to employ skilled assistants to point out, at least, the way in which to do their work more thoroughly." 1

3. Examining Committee

The duty of the examining committee, where one exists, is to ascertain the precise condition of the bank at the close of stated periods, - six months, once a year, or other period. This work is done in various ways, well or ill, depending on the conscience and ability of the examiners. They usually submit the results of their work in writing to the trustees.

1 Bolles, Practical Banking, 11th edition, page 361.