The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-09-20
EDITORS IN SESSION.

4
| of the contingencies of business that the
| financial institutions of the country may
| obliged abruptly to reduce their discount
| line, and, to use nautical phrase,
| shorten sall' In every practical way. The
money and the commerce, the farming
| and the politics of the world are so inter-
woven that Il failure of crops III Europe or
| oven in this country. might seriously effect
every bank in Kansas or the west, and 1t
! is wise man who will take these things
| into consideration in laying his plans, and
| not allow himself to be SO entangled that a
change OF policy in the financial institu-
tionS will jeOpardiZe the very foundations
Of his business. This spirit is also appli-
cable to the management of banks. It
should be the rule of every bank to con-
duct its affairs SO as to reduce TO the low
est possible degree any disturbance the
public may experience from these causes,
and this must be done by inhexible hon
esty and steadiness of purpose. They
must confiue themselves TO the objects for
which they were chartered, and prosecute
these with integrity, prudence aud inn
Partially. Now let US take for example
the account of one class of depositors with
which every bank is more or less familiar:
Mr.. 3, We will say, has an income Of 1000
a year, derived from d variety of sources
rents, interest on money lent, lands, etc
and receives checks, drafts ami other
items. he passes The entire income for
the year through his bank account. On
the debit side of his pass book the bank
has recorde every check he has made
Throughout. the year. They vary i'll amount
but Will average say SO, and the bank has
cashed 400 of them in twelve months: it
has received 81 900 of miscellaneous value
which it has disbursed for him in ready
money. Mr.. BIS balance at the bank fuc-
tuates from day to lay. some
times having several hundred dol
lars to his credit and then
again approaching the vanishing point.
Now let US what service the bank has
rendered this customer. In the first place
it has protected his loose money against
loss or distinctions; these risks wherever
they are the bank has assumed. In the
second place the bank has made 400 pay
ments tor him III the course of the year
and taken the risks of Overpayment to
many parties through fraudulent posses
sion or.successtul forgery. In the third
place the bank has kept Nj. BIS account
for him, every sum paid into or drawn out
OF his account is shown upon one side or
the other of his pass book which was furn-
ished to him by the bank, and this be-
comes to him a cash book SO complete
that he has no need for any other, every
item being recorded in detail, and his book
balanced every thirty days, so that he may
know at all times how his business stands,
simply by consulting his bank book. By
placing the whole of his account through
the bank and paying for everything by
check Mr.. Is. makes the banker his private
treasurer and accountant. Now what
compensation does the bank receive for
that Kind of an account? Simply nothing
unless it be some exchange on a few drafts
purchased during the year, or an occa-
sional charge made for the collection OF
checks on out of town banks-sureiy in no
other business is SO great service per-
formed for SO small compensation.
The wise and conservative distribution
of its loans Is Que of the most difficult as
well as important duties the bank has to
perform. | do not contend that every dol
lar deposited should be loaned,
or that every applicant for money is en-
tilted TO receive II unless the security
offered he ample. Ali well regulated
banks keep constantly on hand two-tifths
of their deposits i'll cash and sight ex-
change. DO not conceive 1t to be the
duty Of every banker to use the greatest
amount of courtesy to the public, and to
listen attentively and CONSIDERABLY to the
needs of the smallest of his customers as
well as the largest. The man who requires
a loan of S25 is just as much entitled to the
banks consideration as the larger custO-
mer who requires 81, 500. 1t is unjust and
against the interests of the community for
any bank to loan its funds in large amounts
to few o. its customers, and no we'll
regulated bank will do this. The welfare
of the community is best promoted if the
banks loans are widely distributed and
loaned only for legitimate business pur
poses, and in small rather than in large
amounts. Capital should he loaned for
the promotion OF commerce, and not to go
into the hands of few favOrites, or for
speculation.
No bank should exact greater rate of
interest on its loans than that prescribed
by statute, and should the good people of
Kansas enact interest laws making the
rate so low that banking would become
Improbable l for one would not try to
evade it, but simply bow to the will of the
majority ana engage in other business.
To my mind banks have moral as well
as financial duty to perform to
full bank must have the confidence
of the people, and to acquire this, they
themselves must be just. considerable. con-
servative and law abiding. Bank funds
should be carefully invested so as to be not
only profitable TO the bank, but available
TO meet all demands made upon it. To
this end the bank customers should accord
their banker the fullest confidence. Right
here let me say that many bank custom
ers do not seek the Information and coun-
Sci OF their banker rs they should, which
invariably may be had for the asking, and
many borrower might have been saved
an unwise and in udicious investment had
he but sought the counsel and advice of
his banker. who by reason of his position
and experience in the affairs of others was |
competent to advise him.
PromptneSS is one of the chief requisites
of successful banking, not only on The part
of the bank, but its customers also. No one
expects the bank to hesitate for a moment
IN redeeming its promises. Depostors
must be satisfied on demand--itS drafts
paid on presentation-aud 20 be able to do
this at all times. the banks customers
should be equally prompt in meeting their |
obligations A bank cannot be run on |
favoritlsm: bank depositsl cannot be |
loaned in the absence OF adequate security |
TO man because be i good fellow, to a !
political friend, or because he happens TO
beiong 10 the same church the banker does. !
This is neither conducive to good morals, /
good business nor good banking.
In the matter OF its exchange facilities, |
very important service Is rendered by |
the bank to the Community-one rarely |
appreciated and but poorly compensated |
Ton Let Us suppose case:
1ou editors receive a lot of miscellane- /
Gus checks from all over the county in /
payment OF subscriptions. Il assume, OF |
course, that you receive them. II you 1
don't you ought to- You 90 to your bank |,
and you expect them at all times to give |
you the cash Tor them, and then again it Is !
Just possible that you are owing some bill /
IN New l ork or Chicago or elsewhere, and !
You also expect your banker to furnish /
you with exchange TO transmit the de-
sired amount. Very few persons realize |
the important service rendered in this par
tlcUlar to the patrons OF banks. They are l
the mediums used for the collection of
I heSa rrliscriianaDuS ItsrnS The customer