But there is too much competition between banks; too deep a jealousy and too keen a rivalry. This keen and jealous competition may be well amongst merchants and tradesmen, but it seems neither healthy nor dignified amongst banks. The work they do for the nation is too vital for this kind of competition to be encouraged. Perhaps it would be in the best interests of the nation if banks were nationalized, and made branches of a National Bank. The main object of banks should not be that of the ordinary tradesman, who boasts loudly and sometimes vulgarly of the trade he is doing. There should be no incitement to this in banking, no incitement to dilate composite deposits, to swell profits and to strain dividends. With all this rivalry and incitement, this desire to gratify shareholders, it is wonderful how cautiously and soundly managed banks are. There should be no hesitation to perform their functions within the limits of prudence, but, at the same time, there should be no undignified display and boastfulness. This does not make the deep impression some imagine. On the contrary, it tends to generate the suspicion in many prudent minds that caution and safety are being unduly strained. The public have not failed to notice that contrary policies have been adopted by the great banks in dealing with their profits for the year of crisis, 1914. Some reduced their dividends and others maintained them. Some allowed liberally for depreciation, and others allowed for no depreciation at all. Some provided for the future, others were content to let the future take care of itself. And what conclusions can the public draw from such divided counsels and irreconcilable policies? Able to agree as they often are on common policy, they were unable to agree on so important a policy as this. As one bank manager said to the writer, when discussing this matter: “Even if the dividends were earned, it was a matter of sound expediency in times such as these to reduce them. It would have strengthened their positions and at the same time have made a better impression on the public.” And there was much wisdom in this view. Applying, as we have done, severe tests to bank management, it emerges from them with great credit. Sound as the management is no bank manager and no bank directors would be vain enough to claim that ideal soundness has been attained. CHAPTER XIII ELASTICITY OR INELASTICITY?