Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1903-11-19
THE SMALL DEPOSlTOR.
Some Reasons why He IL Not Always
Welcome TO Hanks.

sumo Reasons why He L. Not Always
Welcome to hanks.
While every banker knows that small
checking accounts are more bother
than they are worth and those below
$lO0 or 5000 a source of loss instead of
profit, 1t does not follow that such &C
counts are always considered undesir-
able. The depositor's account may be
worthless, and yet his personal infu-
ence may be helpful to the bank. He
may have important social or business
connections who will keep their &C
counts where he keeps his. He may
be Il man about town, with many OPP
portunities to say good word for the
bank, or he may be Il young business
man whose future is promising and
whose account Is expected to grow
There are many reasons why small
accounts are not always unwelcome.
On general principles, however, such
accounts are being weedcd out all the
time in we'll managed banks. The de-
positor often starts out well and fails
to keep up the pace His deposit falls
from Il respectable figure to nominal
sum, and then the question is how to
get rid of him without making him Il
mortal enemy.
Some banks make u 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 $4,000, as we
found in the case of our bank. This
would average 500. OF the $l26,00O
represented in these deposits under
$500 ouc-fourth. or So, 600, must be
held in reserve, leaving $93 900 all that
you can loan odt II you can keep loan
cd Out all the year round about $4,000
of this .iJ3,UUU you Will be doing re-
markably well. If you get per cent
OH this $4,000 that means 5000 gross
returns from your 400 accounts.
TO handle 400 accounts will re-
Quirc al least three bookkc2pcrs at ST.
600 Il year and ilifcc statement clerks
at $500 Il year, whose aggregate sal
aries will be $500. | will not figure
in the time of tellcrS 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 IL lot of little checks. which
are just as much bother as big ones.
"Chargins 81 Il month on accounts Of
less than $500 cducates he public to
appreciate the facilities Il commercial
bank gives them. OF course. it is ar
gucd that small customers advertise
The bank. SO they do. among 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 "A good sized
account: bat, As II rule, | think the
money a bank spends in accounts with
the little fellows. unless they pay 81
per month. is poorly invested"
y certain Detroit bank received n
| call from Il young man who wanted &c
open Il commercial account. The teller
referred him to the cashier. who asked
him number of questions about his
business. the probable size Of his &C
count, how often he would make de-
posits, draw checks. etc. all of which
the young man seemed to consider un
necessary and impairment. Finally the
cashier told him the bank could not
receive his account and the young man
went away highly indignant. Meeting
,,F Il 10 .1,;, 20,
the cashiers "iuipertinence." When
the director spoke TO the cashier about
ii the cashier said:
THAT young man is only clerk in
IA store on small pay. He earns per
maps 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 ac
count wont he worth mentioning
doubt If he will ever have $50 in the
bank at any one time and then only
for few days. What's his little game
Why, merely to have the pleasure of
drawing chccks-the feeling of ilnpor,
lance it will give him and the impress
sion it will make on his landlady and
washerwoman. We can't make cent
on his account. and the bank will be
out for clerk hire. wear and tear of
pens, ink, stationery, etc, as we'll AS
the cost Of the check book. if we lei
him have one for nothing.
You can put it down ms n rule" add.
ed the cashier, that no commercial
account is worth taking unless it 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
ity causes most Of the applications to
open small checking accounts. although
in some cases the depositor gets fc-
titious standing which may help hin,
In business way Detroit Journal.
Thieves have recently stolen one Of thu
bells from the belfry Of Mourville- Bases
! .I.a