The Birmingham age-herald., 1903-11-22
TIE SMALL DEPOSlTOR.
Some Reasons Why He Is Not Always
 Welcome to Banks.


 While every banker knows that small checking accounts are more bother than they are worth and those below s100 or $loe source of loss instead of profit, 1t does moi follow that such accounts are always considered undesirable. The depositor's accounts may be worthless, and yet his personal influence may be helpful to the bank. lie may have important social or business connections who will keep their accounts where he keeps his. He may be a man about town. with many op- portunites to say a good word for the bank, or he may be young business man whose future is promising and whose ac- count is expected to grow. There are many reasons why small accounts are not always unwelcome.
 On general principles, however such accounts are being Weeded out all the time in well managed banks. The deposit tor often starts out well and fails to keep up the pace His deposit falls from respectable figure to a nominal sum. and then the question Is how to get rid of him without making him mortal enemy.
 nesi that remains below a certain min imum. Speaking of the matter, a bank CT said:
 Suppose HOO of your accounts under S300 aggregate $l26000 as we found in the case of our bank. This would aver age 800 Of the Sl26,0O0 represented in these deposits under $3OO one-fourth, or $32 W0, must be held in reserve, leaving 'AipoO all that you can loan out. If you c9n keep loaned out all the year round about $SOOO0 of this $93 000 you will be do- ing remarkably well. If you get per cent on this $S0,O00 that means $320O gross returns from your HOO accounts
 1,ae, l1. least three bookkeepers at $1000 a year and three statement clerks at $500 a year, whose aggregate salaries will be $iS00 l will not figure in the time tellers and others whose services ought to be con sidered, nor the cost of check books, pass books and other stationery The small customer usually costs more than the big customer, in proportion to his accounts. He draws lot of little checks, which are just as much bother as big ones.
 'Charging $1 a month on accounts of less than $500 educates the public to ap- preoiate the facilities a commercial bank gives them. Of course, it is argued that small customers advertise the bank So they do. among small class of people like themselves. They do not get big fe- lows in, but little fellows. who further increase the loss The little fellow may grow and sometimes keep with his bank good sized account; but, as a rule I think the money a bank spends in ac- counts with the little fellows, unless they pay $l per month. is poorly invested" "A certain Detroit bank received a call from young man who wanted to open a commercial account. The teller refer- red him to the cashier, who asked him a number of questions about his business the probable size of his account, how often he would make deposits draw .ln nA1re .I
 seemed to consider unnecessary and im- pertinent Finally the cashier told him the bank could not receive his account and the young man went away highly in- dignant. Meeting one of the directors, he complained of the cashiers 'imperti- hence" When the director spoke to the cashier about it the cashier said:
 That young man is only clerk in store on small pay. He earns perhaps sl5 week If we let him open an account he will deposit his salary every week and check it out every month to pay bills. His average account won't be worth mentioning. l doubt if he win ever have So in the bank at any one time and then only for a few days What's his lit- tie game? Why, merely to have the pleas ure of drawing checks-the feeling of inn portance 1t will give him and the inn pression it will make on his landlady and washerwoman. We can't make a cent on his account, and the bank will be out for clerk hire. wear and tear of pens. ink, stationery, etc. as well as the cost of the check book, if we let him have one for nothing
 You can put it down as a rule" add cd the cashier, that no commercial ac- count is worth taking unless it never falls below s100. We have made $100 the min imum figure in this bank. and my, per- sonal opinion is that the figure is too low"
 causes most of the applications to open small checking accounts. although in some cases the depositor gets a fictitious standing which may help him in bus- ness way.