Peninsula enterprise. [volume] (Accomac, Va.) 1881-1965, 1903-11-21
TIE SMALL DEPOSITORY
some Reasons why He Is Not Always
welcome to Banks.

welcome to banhs.
While every banker knows tnat sln""
checking accounts are more oo'ne-
than they are worth and those Delow
e1oo or 5000 n source OF loss instead Oh
protit. it does not follow that sucI az
counts are always considereu unueen
able. The deposition account may o'
worthless. and yet his personal lnnu-
ence may be helpful to the DAM. oe
may have important social OF pusines'
connections who will keep their ac'
counts where he keeps his. lie na!
ha 81 man about town, with many op'
nortunities to say good word tor Tue
nonk. or he may be young puslness
man whose future is promising auu
whose account is expected 10 grow.
There are many reasons why sln"i'
accounts are not always unwelcone.
ON general principles, however, such
accounts are being weeded out all inc
time in well managed banks. Inc ue-
nositor often starts out well ana rams
10 keep up the pace. His deposit laiiS
from a respectable figure TO holnina'
| sun. and then the question Is now "
.,at rid of him without making him
mortal enemy. -
Some banks make charge on Dusl-
ness that remains below certain MIL
lmum. Speaking Of the matter DAM
CT said:
"Suppose 400 of your accounts un-
dor S.{OO aggregate Sl26,OOO, as we
round in the case of our bank. 1hls
wonld average 500. Of the $l26,OOo
renresenled in these deposits unuer
S3OO one-fourth, or $4,000, must DC
held in reserve, leaving $4,000 all thal
Won can loan out. If you can keep loan
ed out all the year round about Soo'oVV
of this $4,000 YOU will be doing re-
morkably well. If you get per cent
IN this $4,000 that means S3,2OO gross
returns from your 400 accounts.
ITO handle 400 accounts VIII re-
ouire at least three bookkeepers at Sl'-
OOO a year and three statement cierAS
ut 5000 year, whose aggregate SUI
aries will be $500. l will not inquire
in the time of tellers and others, WHOSE
services ought TO be considered, nor Tue
cost of check books, pass DOCKS anu
other stationery. The small customer
usually costs more than the Dig Gus
, TONER in proportion TO his accounts
, He draws lot of little checks, WHICH
: are lust as much bother as big ones
7 Charging 81 a month ON accounts o.
? less than $500 educates the pubic Il
: appreciate the facilities commercial
: hank gives them. OF course, II Is Ut
), gued that small customers auVerls'
5 the bank. So they do, among SINAI
r class of people like themselves. 1he:
r do not get big fellows in. but little lei
e lows who further increase the loss
d The little fellow may grow and some
= times keep with his bank good slze'
d account; but, us Il rule, think III
e money a bank spends in accounts VII
l. the little fellows, unless they pay ,
!, per month, is poorly invested.
r A certain Detroit bank received
call from young man who wanted
open a commercial account. The teile
referred him to the cashier. who aske
IS him a number of questions about III
n business. the probable size of his AZ
II count how often he would make III
s. nosits draw checks. etc. all Of whlc
u the young man seemed to consider I'll
; necessary and impertinent. Finally II
IL cashier told him the bank could III
le receive his account, and the young ma
10 went away highly indignant Meeui
l. one of the directors. he complained
of the cashiers "impertinence." Whe
OF the director spoke to the cashier apo'
rs it the cashier said:
III "That young man is only clerk
ol a store on small pay. lie earns pc
~ haps S15 a week. If we let him ope
H. an account he will deposit his salaT
III every week and check it out ever
On month TO pay bills. His average a
count won't be worth mentioning
doubt if he will ever have 500 in II
bank at any one time and then on
VI for a few days. What's his little game
~ Why, merely to have the pleasure
drawing checks-the feeling of impo
10 lance it will give him and the impre
=. sion it will make on his landlady al
"a washerwOman. We can't make ce
~ on his account, and the bank will
- out for clerk hire. wear and tear
"a pens, ink, stationery, etc, as well
~ the cost of the check book, If we
- him have one for nothing.
no "You can put it down as rule az
y, ed the cashier, that no commerce
~ account is worth taking unless it new
falls below 500. We have made 81
the minimum figure in this bank a
my personal opinion is that the hgu
VS. is too low"
in 1t is unquestionably true that va
,ar ity causes most of the applications
sc open small checking accounts, althou
,rk in some cases the depositor gets
G titious standing which may help h
It'll in a business way.-Detroit Journal
Tho
,Sk Plain Covers and Iron Clasps.
90 al PoD,ouS colonial Drp0phprS