Milford chronicle., 1903-11-20
1nE SMALL
some Reasons why 't A4"'s
Welcome to .r
Il Al",

welcome 10
While every banAor --2t 81
chfciiug accounts arc Lio.'
man tuey are NorlG e4os'
$500 or $50 a source oi lOss lns'o"u o.
nrat;r il does not ionoW .nat s~y~ "t
....t..ifs. are Always cOu>luci.d tn-oes s't
aple. me depOsIlOr UccoUht h'a5 "'
worthless, auu yet lis personal 4H""
cuce may be heIpfUl 10 1ne bans. 4Le
l.ay nave lIupo. ,ans social OF business
connections VINO viii keep uAelr dt
col,li,s where Ae Keeps h.s. LlS may
ne 81 man uOoat town, WIth h"iy Op'
porulnlt.es 10 say good word tof 1Ae
,ank. or he may be u young business
man whose iulure Is prOAdsiua anu
whose account is eNpected 10 STOW
There are many Reasons Wi! slhaH
accounts are moi Always uh"e'Oohe'
On general principles, however sdci
accounts are pe4us Weeued out al lHe
time IN we'll sed Danhs. 1he ue
! nositor often starts Out WeIl ana ldll7
| Ia keep up the pace. His deposit IdIs
from respectable figure 10 nom'hai
sum. and tnen the question Is low 10
/ get rid of him without making MN
mortal enemy.
Some banks make a charge on bust
ness that remains below a certain MIN
imum. Speaking of the matter, bank
er said:
suppose 400 of your accounts un-
der $500 aggregate S12G,OUO, as we
found in the case of our bank. ms
would average 500. Of the $l@O'OOO
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 can keep loan
ed out all the year round about SSO,OOO
of this $4,000 you will be doing re-
markably well. If you get per cent
on this $4,000 that means $500 gross
returns from your l,40O accounts.
TO handle 1,4OO accounts will re-
ouire at least three bOokkeepers at 81
OOO year and three statement clerks
ut 5000 year, whose aggregate sal
aries will be $500. | will not figure
in the time of tellers and others, whose
services ought to be considered nor the
cost of check books, pass books ana
other stationery. The small customer
usually costs more than the big Gus
toner, in proportion TO his accounts.
He draws a lot of little checks, which
are Just as much bother as big ones.
Charging 81 a month on accounts OF
less than $500 educates the public TO
appreciate the facilities commercial
bank gives them. OF course, it is ar
ufWnTfiG0
the bank. So they do, among a small
class Of people like themselves. They
do not get big fellows in, but little fel-
lows. who further increase the loss.
The little fellow may grow and some
times keep with his bank good sized
account; but, as a rule, l think the
money a bank spends in accounts with
the little fellows, unless they pay 81
per month, is poorly invested"
A certain Detroit bank received q
call from a young man who wanted tC
open a commercial account. The teller
referred him to the cashier, who asked
him q number Of questions about us
business, the probable size Of his ac
count. how often he would make de
] DOSllSs AA1h EAANNhos NANse as
the young man seemed to consider un
necessary and impertinent. Finally th'
2 cashier told him the bank could no
receive his account and the young maj
went away highly indignant. Meeting
one Of the directors, he complained o.
the cashiers "impertinence.' Whel
the director spoke to the cashier abou
it the cashier said:
"That young man is only clerk Il
store on small pay. He earns per
:, haps S1J a week If we let him opel
: an account lie will deposit his salar.
-, every week and check it out ever,
:, month to pay bills. His average nc
count won't he worth mentioning.
81, doubt if he will ever have $50 in tn
: bank at any one time and then Onl
. for a few days. What's his little game
Why. merely to have the pleasure @
:, drawing checks-the feeling Of impol
- tance il will give him and the impre'
sion it will make on his landlady an
!. washerwOman. We cant make Ger
N on his account, and the bank Will :
70 out for clerk hire. wear and tear
# pens. ink, stationery, etc. as well
.o the cost Of the check book, IL we X
al him have one for nothing.
g You can put it down as a rule" adj
in ed the cashier, that no cOmmercii
a account is worth taking unless it nev'
n falls below $780, We have made $l(
" the minimum figure in this bank. an
o my personal opinion is that the fgu
pr is too low"
It is unquestiOnnbly true that va
ity causes most Of the applications
open small checking accounts, althoul
n. in some cases the depositOr gets f
n titious standing which may help hi
IL in a business way.--Detroit Journal.
Of -