The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1901-04-09
Valuable Trait Of Business Man

trade, applied to a banker for the
loan of money. The first we will
call James Wise, the other Jno.
Smith.
Mr.. Wise wanted to borrow
$4,000 on property represented to
be worth $4,000. Mr.. Smith
wanted to borrow $4,000 on prop
erty estimated at $4,000
The banker rejected Mr.. Wise
because he would not let his books
be examined and because he had
told the owner Of the store which !
he had rented that he had already
negotiated the loan with which he
was to ut out and stock the store.
Here the bankers investigation
stopped and the loan was refused.
The loan to Mr. Smith was cheer
fully made. The banker had in
| vestigated Mr.. Smith and in talk
ing about the matter to him said
"We learned that you usually
paid cash for your stock, and that
when you bought on time you were
always prompt with your pay
ments; we learned that you always
kept your promises to pay, wheth-
er they were made to the Standard
Oil Company or to the man up in
Connecticut of whom you buy
your vinegar. We found that the
interest on your first mortgage has
never been overdue, and has once
or twice been paid ahead of time.
We find that your fire and life in
surance are always kept up scrupu-
lousy. We find that yon once had
a fire in the back of the store, and
based such modest demands upon
il that your name is Che synonym
for honesty in the offices Of the in
surance company. We know that
your wife has running account at
that department store over the
way, and that her bills have always
been paid by check When rendered,
except once
That" interrupted Mr.. Smith,
"was when she was out of town and
l waited for her to check up the
bill"
1T is so stated here" comment
ed the President of the bank, "and
indicates that yog are not only
prompt, but caIefal. We find final
/ lv that YOU once refused payment
Of bill, and there was some litiga-
ton over il. but we learn, also, that
the man with whom you had that
trouble was notorious cheat and
double dealer
Now. Mr. Smith, on the credit
clearing house system, you are rat
K ed b.. That means that whatever
is lent to you will be repaid within
the limits of human certainty.
Your Bradstreet rating is too in
considerable to mention"
"You would have to have many
many thousands where you now
have but few before you could ap
proach rating of 81 on their
books. But the time has gone by
when banks and trust companies
are guided in making their loans
nv the am3ohit Of money or proper
ty a man has or is said to have.
That may help us determine the
amount we lend him; but what we
q want to know before we lend him a
cent-nO matter what security he
may oHer-Is what his business
character amounts to. If he has
a record for tIickery, procrastina-
ton, carelessness, and large or pet
ty dishonesties, we will not lend
him money under any circumstan-
ces.
The bank must know not only
what sort of a business he has
been doing, but must know what
| his habits regarding paying his
> debts have been, whether ne has
been living beyond his income-in-
short, his whole business character
! must be laid bare. If the result Of
, that examination satisfies the bank
D that he deserves to be helped, the
. money he needs will be lent to him.