The midland journal. (Rising Sun, Md.) 1885-1947, 1900-05-11
start a Bank.

profitable and easiest business conducted
in the world. Why don't our farmers
or some of them-go into the bank
ing business? We will give an out.
lined plan of how to set up in the bank
ing business. under the new law. SIS, 200
is the minimum capital for country
bank under the last act There are plenty
of ine locations in Cecil for setting up
the banking business. There are Zion,
Fair Hill, North East and others that
might be named, all in need of bank.
Five persons are required to constitute
banking firm. Let five farmers who
are a-weary of holding the pillow handles
and finding themselves no richer at the
years end than at the beginning, mort
gage their farms and raise the required
$25, 900 capital Then certify to the Sec
rotary of the Treasury the fact, and the
purpose to establish the Farmers National
Bank of -, naming the location, county,
State, etc. Then engage Baltimore or
Philadelphia broker to purchase $625o oil
8, a or S per cent bonds. There is pre-
MUM on these bonds but the government
will refund The premium and issue $625o
in per cent bonds and a charter for
your bank and also will issue $625o in
national bank currency i'll the name OF
your bank. You can have the whole
O Y,,onuf IF x,o,,r ca,>;toI o1,,,a.&aJ 49,
bonds if you like and receive it all back
i'll national bank notes, which the gov.
ernment will charge you u per cent
interst for the use of which be will deduct.
ed from the per cent interest that your
bonds draw, and pay over u per cent.
One fourth of your capital is sufficient
to invest in bonds, and the balance Of
$3.50 along with the $625o national
bank notes you place in the bank safe,
put out your sign, open the shutters and
begin business of banking. having elected
yonr ofhcers-a President, Cashier, Vice.
President, teller clerks and SO on. The
farmers, merchants, mechanics, doctors,
school teachers, etc., will fall over one
another in the scramble to deposit their
money for safe keeping, while the "bus.
mess men" will be on hand asking foi
90 and go day loans. The capital of the
bank will soon be loaned out, and the
we'll secured notes of the borrowers, with
interest deducted, will be in the bank
safe. Those who borrow will be expect.
ed 10 do business through The bank, one
good turn deserving another according to
the old adage.
The money of the depositors WHO don't
borrow, and the money of the borrowers
too, will all be in the bank, which being
added together will constitute sun
much larger than the bank started with.
with all the notes drawing interest and
interest taken out as the first disburs.
ment by the borrower. The more money
the bank loans the more it will have
apparently, as all the looms are accom-
modations by the bank to the borrowers
and all the money borrowed is left in the
bank to be checked out as the borrowers
need it. The most of the money drawn
out on checks goes back into the bank
again in few hours of days, together
with that of other deposits.
The bank can continue to loan as long
as the depositors supply cash sufficient to
meet the checks of borrowers whose loans
are on the banks ledger as credits.
This will work like charm as long as
business runs along smoothly, but if a
panic is started look out. The depositors
who are non-borrowers commence to
draw out their deposits, and if the cash in
the safe is not sufficient to meet the
checks which come in against the credit
loans the bank has to suspend. This
does not often happen, however, as the
bankers keep sharp look out and begin
to refuse extension of loans aud call on
their customers TO pay up.
The borrowers business being founded
on credit, they are cramped and have to
submit to heavy loss in order TO save
themselves from ruin; and many business
men are sure to be caught in these fnan-
cial cyclones
But this is depression. We set out to
show the farmers how to start and run
banks and make money easy. do safe
business and run but a minimum risk,
while reaPing greater profits than derived
from any other business
The FIVE farmers will soon pay off the
mortgages placed on their farms 10 raise
bank capital, own five more of their
neighbors' ferns who believe only in
hard work. 1t requires shrewd manage
ment and tough, elastic conscience in
many cases 10 make success In banking
but it's lawful, legitimate business.
In Kansas the lawful interest was IL
per cent few years ago When bor-
rover asked a renewal of his note the
banker was seized with racking pains.
and would squirm and writhe like he was
suddenly caught in fit of cramp cholic.
He could not renew The thing was
impossible. But after being tortured a
spell with the sudden spasni he would
suggest that it was barely possible that he
could renew for IS per cent, The poor
customer would agree TO the shave and
the bankers face would suddenly bright
en- as the sun appearing from behind a
cloud, the cramping pains all leaving him
in twinkle. We merely mention This