Bank credit man's point of view;

              Bulletin HASKINS & SELLS 45
The Bank Credit Man's Point of View
WE are distributing with this number
of the Bulletin an article entitled
"What the Accountant's Report Should
Show the Banker," by Arthur L. Moler,
assistant credit manager of the Union Trust
Company, Cleveland, Ohio, reprinted from
the February, 1922, number of Administra­tion.
This excellent article is especially wel­come
because it states clearly the position
taken by bank credit men generally and
helps to pave the way for closer co-opera­tion
between bankers and accountants in
the interest of borrowers. The accountant
serves the borrower. The borrower must
satisfy the banker through the accountant.
Hence the accountant must know what the
banker wants.
There is little comment to be made on
Mr. Moler's article except perhaps to say
that additional light might be thrown on
certain matters by a comparative state­ment
which through increases and de­creases
would indicate certain tendencies
not disclosed by a single set of figures.
Thus, also, would be eliminated the neces­sity
of giving in the cost of sales, details of
inventories both at the beginning and end
of the period.
Another thought which Mr. Moler pos­sibly
in the pressure of many other points
requiring discussion has failed to bring out,
is that much collateral information of use
to the banker in arriving at his conclusions
might be furnished by the accountant if the
accountant and the banker were to be
brought into contact before the engagement
is undertaken. This condition if laid down
by the banker would doubtless in most
cases have the concurrence of the borrower,
and not only contribute to the successful
rendering of the service, but, as a sequel
thereto, facilitate the granting of the credit.