Bulletin HASKINS & SELLS 31
Munn, Glenn G. Bank Credit. (New
York, McGraw-Hill Book Co., Inc., 1925.
The idea that only books on accounting
are useful to accountants has been refuted
so often that no further proof necessarily
need be offered. Mr. Munn's book, however,
is too striking an example of a book
which should be studied by accountants
who wish to take advantage of any opportunity
for more intelligent rendering of
professional service, not to use it in
support of a principle.
Service connotes satisfaction to the
party served. Ability to satisfy depends
upon having a knowledge of that party's
requirements, of his ideas, and even perchance
of his capricious likes and dislikes.
Successful service frequently is built on a
psychological study of the individual seeking
service, or of the type to which he
Ergo, if accountants would serve clients
who have occasion to offer financial statements
to banks for credit purposes, what
could be more logical than to find out what
kind of information is required? Further,
if accountants understand thoroughly the
reason on the part of banks for desiring
the data, what use is made of the statements,
and incidentally something about
the mechanics of bank credit departments,
such information cannot but contribute to
more useful service.
The book in question was written for
bank credit men and students of bank
credit affairs. Business men who borrow,
and accountants, one of whose functions
is to facilitate borrowing, may read it with
profit. The influence of a book of this
character should reach far beyond the
field it was designed to reach.
The chapter on Statement Analysis is
admirable; that on Estimated Future
Balance Sheets, full of interest and unique.
There is also a good discussion of commer-