Virginia citizen. (Irvington, Va.) 1891-1921, 1903-11-20
THE SMALL DEPOSiTOR.
Some Reasons Why Rc Ia Not Away,
WelcOrwe Ia RAJ

Tx SMACl OEtOSl Ohs
Some Reasons Why Rc Ia Not Always
Welcome 60 Ranks.
While every banker knows that small
checking accounts are more bother
than they are worth and those below
800 or $500 source OF loss instead OF
profit, IL does not follow that such ae-
counts are always considered undesir-
able. The depositors account may be
worthless, and yet his personal infiu-
ence may be helpful 20 the bank. He
may have important social or business
connections who will keep their ac-
counts where he Keeps bis. de may
be man about town. with many OPP
portunities to say good word for the
bank, or lie may be a young business
man whose future is promising and
whose account is expected 10 grow.
There are many reasons why small
accounts are not always unweicome.
On general principles, however, such
accounts are being weeded out all the
time i'll well managed banks. 1he de
positor often starts out well and fails
to keep up the pace. His deposit falls
from u respectable figure to u nominal
sum, and then the question is how to
get rid OF him without maaing him u
mortal enemy.
Some banks make charge on bust
ness that remains below certain min
imum. Speaking of the matter, bank
er said:
Suppose 400 OF your accounts I'M
der 500 aggregate $l20,C0O, as we
found in the case OF our bank This
would average $40. or the $4,000
represented in these deposits under
$500 One-fourth, or $4,000, must be
held in reserve, leaving $4,000 all that
you can loan out. If you eau keep Loan
ed out all the year round about $4,000
OF this $4,000 you will be doing re-
markedly well. III you get per cent
on this $4,000 that means $500 gross
returns from your 1.4OO accounts.
ITO handle 1,400 accounts will re-
quire at least three bookkeepers at ST.
600 year and three statement clerks
at 5000 year, whose aggregate sal
aries will be $4,000. / will not figure
in the time Of tellers and others, whose
services ought to be considered, nor the
cost Of check books, pass books and
other stationery. The small customer
usually costs more than the big GUS
toner, in proportion to his accounts.
He draws q lot of little checks, which
are just as much bother as big ones.
Charging 81 month on accounts of
less than $500 educates the public to
appreciate the facilities a commercial
bank gives them. OF course, it is ar
gued that small customers advertise
the bank. So they do, among q small
class of people like themselves. They
do not get big fellows in, but little fell
lows, who further increase the loss.
The little fellow may grow and some
times keep with his bank good sized
account; but, as rule, think the
money bank spends in accounts with
the little fellows, unless they pay 81
per month, is poorly invested"
n certain Detroit bank received a
call from young man who wanted to
open commercial account. The teller
referred him to the cashier. who asked
him number OF questions about his
business, the probable size of his ac-
count, how often he would make de-
posts, draw checks, etc, all Of which
the young man seemed to consider I'M
necessary and impertinent. Finally the
cashier told him the bank could not
receive his account. and the young man
went away highly indignant. Meeting
one OF the directors, he complained of
the cashiers 'impertinence" When
the director spoke to the cashier about
it the cashier said:
THAT young man is only clerk in
a store on small pay. He earns per-
maps $40 week. II we let him open
an account he viii deposit his salary
every week and check It out every
month to pay bills. His average ac-
count won't be worth mentioning. 1
doubt IL he will ever have $50 in the
bank Mt any one time and then only
for few days. What's his little game?
Why, merely to have the pleasure of
drawing checks-the feeling of impor-
lance 1t Will give him and the impress
sion II 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, II we let
him have one for nothing.
"You can put 1t down as n rule" add
ed the cashier, that no commercial
account is worth taking unless 1t never
falls below 800. We have made 500
the minimum figure in this bank, and
my personal opinion is that the figure
is too low"
1t Is unquestionably true that van
lily causes most of the applications to
open small checking accounts although
In some cases the depositor gets a fic-
ddous standing which may help him
In business way.-Detroit Journal.