The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1899-12-15
ABOUT BANKS.

After one years business the Mer-
chants Bank of Pembina shows nearly
S6O, ,OOO of deposits. Its loans stand at
nearly the same figures. The item of
deposits shows that our business men
have confidence in the institution and
that of loans proves that the confidence
is we'll placed because the bank is using
the money to good advantage. Incident-
ally we may add, some people think that
the more money a. bank has on hand the
better off it is, but banks are not run for
the purpose of boarding money. That
bank which does not loan its money is
the most unsafe because it is not making
money. The real business of a bank is
to collect the surplus money, which part
of the people have. and to loan it to
other people who need it. There are
very few business men but what at times
have more money than they need just at
the time, while there are but few, but at
times need more money than they then
have, to carry on their business. Busi-
ness men do not as rule lend or borrow
among themselves, but the banks do the
business for them.
Not only do banks collect money from
local depositors, but they also play a
very important, part in equalizing the
supply of money all over the country.
AT certain times of year, particularly in
agricultural districts there is great de-
mand for money at local points, at har-
vest time. Local banks through their
relations with each other are able to get
money from the great money centers and
bring it in to loan to their customers who
are buying the crops.
Another great advantage of banks is
that business men do not have to keep
large sums OF money Un hand. Almost
every business man daily deposits his
cash receipts in the bank. This he does
for safety and convenience. When he
has bills to pay he writes check, which
is not only usually more convenient than
cash, but safer, as if lost, it cannot be
used by the finder; while if it is used by
the person to whom issued he must write
his name on the back and it then be-
comes a receipt for the payment of the
money. Ninety per cent of the business
of the country is done by checks and
drafts. Another thing of advantage in
this depositing of daily cash receipts is
the fact that by this means, the actual
money is put into immediate circulation
again. lfthe business people held on to
their money until they had to use it them
selves, at some periods, money would
necessarily become very scarce, as most
OF it would be in the merchants safes.
AT other times it would be scattered
among the people and if merchant
wanted 10 borrow large sum no one
person would have enough to lend him.
These ideas are simple and well under
stood among people who deal daily with
banks, but among large class of the
general public. who have but little to do
With banks there is sort ofidea that a
bank is is'something for rich people only,
and OF no particular benefit except to the
stockholders and capitalists. We have.
therefore spoken Of some of the business
of banks in this simple way to try and
show that good banks, properly run, are
Of great benefit to all classes Of people,
and thus to emphasize the fact that the
success Of our own local bank is some-
thing Of value and benefit to everybody
within its sphere of influence and there
fore everyone should rejoice to seeit so
soon on the road to business prosperity
and perpetulty.