The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. FRIDAY, AUGUST 24, 1923. BANKING AND BUSINESS.

Stratford Evening Post, Volume XXXIX, Issue 93, 24 August 1923, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. FRIDAY, AUGUST 24, 1923. BANKING AND BUSINESS.

Mr Justco Avory has recently decided in an English case that a bank is, under certain conditions, justified in revealing to a third party the state of a customer’s account; and it is reported that the decision has aroused a great deal of interest and even consternation, business people wondering how far this kind of thing can be allowed to go. There is, however, no cause for alarm, says a banker in the course of a contribution to the London "Daily Mall.” The banking profession Is quite as jealous of its reputation for maintaining secrecy as are the J

legal and medical professions. The customers’ affairs are regarded as sacred. There are times, however, when a banker does divulge an opinion regarding a customer. It is now an old-established custom for business firms to make enquiries regarding the credit and standing of others. These enquiries are made through the respective bankers, and the replies are guarded and do not give details. Bankers’ references are also usually required when new tenants enter into occupation of flats or houses. In giving an opinion a banker has to be very careful. If he gives, one which is too favourable, and misleads the enquirer he is liable for damages. On the other hand, if he gives on© which erred in the other direction, his customer would bring an action. With regard to overdrafts, if a man has been called upon to repay money he owes the bank, and refuses to make a settlement the bank is entitled to take steps to enforce payment. The man, of course, would have no legal or moral right to accuse the banker of breach of confidence. banks are conservative institutions. Quill pens are still to be found on the counters of some of the older branches in the West End, and the telephone was not in general use, even in London banks, until the war period. The adoption of the telephone has brouebt quite a number of new problems with regard to maintaining confidence. Customers, almost invariably women, do not hesitate 1 to ring up and ask for their balance or some other private information. It is, except in rare Instances, quite impossible for the banker to be certain that it Is the customer speaking, so in most cas&s the information must be refused. It will readily be seen t*>at the practice of giving i confidential information over the telephone Is a dangerous one, and if allowed to | develop would load to grave abuse, j All kinds of unauthorised persons 1 would ring up and obtain inform- j ation to which they have no right. Another of the troubles that, have | come with the telephone is the man who, having taken a customer’s

cbenue. rings up the bank to ask whether it will be met. Not the

slightest information is ever given in such cases.