The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28


bank and its mission, as many before me
today will testify from personal expen-
enee While it is true that the presence
Of bank in a community, provides com
veniences and facilities for the trans
action OF business, yet it is also true that
the prime object of its establishment, is
to make a profit for the stockholders on
the business which it seeks to do.
In the conduct OF its business. a bank is
called upon to receive and safe keep the
funds Of all classes of people, the widow
and orphan as we'll as Of the capitalist
and active business man This being
true. The first and greatest duty Of a
bank. is to afford the very best safety aud
security possible to its depositors The
question then naturally arises, how can
this be done? The secret lies in the
banks loans and investments 1t does not
seem out Of place to remind ourselves OF
, this fact. for whatever of security there
may be in a bank, whatever of safety.
whatever of strength, whatever of sta
bility it depends almost entirely upon the
loans, discounts and investments.
1t is incumbent upon US, therefore, as
the guardians of other peoples money, to
look well to this duty and see to it that
the proper caution is taken, SO that when
the time of reckoning comes and our
depositors come in to claim that which is
theirs, we may be able to return it with
out loss / am aware of the fact that
losses will occur sometimes in spite of our
best efforts to prevent it, and that should
serve to make US all the more careful,
causing us always to look to the security
OF every transaction. If we follow this
rule, we Will come out far ahead. not only
in profits. but in the confidence Of the
community and with a good line of de-
posts on our books
Another important duty which a bank
owes to the depositors, is to put itself in
a position to give them the benefit of
the latest and most approved methods,
and best facilities, for the conduct of their
business If bank desires to grow and
attract profitable business, it should be
prompt and correct in all of its dealings,
both in small as well as large affairs.
When a customer deposits a check or
draft in his bank he wishes to know as
early as possible whether such check or
draft is honored. In order to meet this
necessity. it is the duty of the bank TO
use the quickest and safest means for
It's presentation Care should be taken
IN the selection of correspondent banks
and only those who are prompt and re-
liable should be chosen. using especial
pans to avoid those who are slow and
careless IN handling their business. Many
bank has lost valuable customers be-
cause of its failure to use caution at this
point. entrusting its business and collec-
/ tons to some bank who held up the re-
mittances two or three days after collect
ing the items
Another duty which bank owes its
depositors, Is to treat them with liber-
atty, giving due consideration and prefer
ence in granting loans. never forgetting
the security offered. The doctrine of re-
, clprocity applies here with much force,
Tor what would bank be without de-
positors? 1t could do but little, for its
source of income is largely from the dis
counts and it is the depositors who
furnish the funds TO loan II Is the duty
OF the bank TO foster and encourage every
legitimate business enterprise of merit
and stability be willing and ready. at
all times to loan then such sums OF money
! as their business and responsibility will
justify, for it is by tho I'D A....ag of
such enterprises that communities. towns
and cities are built, the growth and de-
velopment OF which enures the benefit of
the bank, and brings it increased business
and prosperity. 1t viii pay to be liberal
IN this respect. remembering always to
keep within the bounds OF prudence and
safety.
The growth and expansion of our State
along industrial lines during the past few
years. has been and is now. source Of
pleasure and qualification to us. and a
subject of wonder and. admiration of the
country at large. | believe that our banks
have been a great factor in this work
OF DEVELOPMENT and it cannot be denied
that they have sharved in this prosperity
II devolves upon US, therefore, to continue
the use of our services in this direction
extending helping hand to advance the
best interest four people and who will
dare to rise up and place a limitation to
the bounds OF our progress?
The next duty of bank to its de-
postors to which l would call attention.
IS that Of courtesy In this day of active
competition, aside from the natural and
IL
duty to be courteous and obliging to our
depositors and customers Purely as a
matter of business, it pays, and no one
can hope to accomplish very much with
out it. | once heard well known and
successful banker say that politeness
brought in greater returns for the invest
ment than anything within his knowledge.
and it is true.
The successful and progressive bank of
today is one whose officers and clerks are
always on the alert to say pleasant word
to their customers, granting them every
little courtesy possible, thus making them
feel that they. are welcome at the bank
and that their business relations are pleas
ant and desirable.
Having pointed out ecy of the banks
duties, let us SOW see what obligations
rest upon the depositors A depositor i
one who uses the services of the bank
and approprates the facilities offered to
his own benefit. 1t is reasonable and right
then that the bank should be paid for this
service, since it is costly to furnish it.
fear, however, that great majority of
the banking public forget this fact. for it
Is the sentiment among MANY buSinaso