The Intermountain Catholic. (Salt Lake City [Utah] ;) 1899-1920, 1905-11-04
HONESTY AN ASSET.
Instances Where Character Alone
Stood for the Banks Risk.

Stood FOR the Banks HlsS'
In Scotland, when a man has arrived
at years of discretion and won repu-
tation for capability, bank will, sim
ply on his note, backed only by his
character, advance him sufficient mon
ey Casually a moderate SUM to start
in business. This is considered-and
the conclusion IS based on resuits-to
be a good risk. In our large cities,
New York and Chicago, for example,
business is not so frequently conducted
in that way, but there is no doubt that
our great western country owes much
of its wonderful growth TO those far
sighted country bankers who realized
, that the borrowers character was the
chief asset to be considered Natural
ly, character plays a relatively larger
part in the loaning operations of a
small bank than a Wall street bank
and in the beginning of a business
mans career. It's relative Importance
is a matter of environment.
In 1896 a New York firm Of -1er-
chants became heavily involved in en-
terprises that were sound but in which
the realization of cash was slow. The
head of the house informed the repre-
sentatives of the banks that they would
| be obliged to carry the firm through
its difficulties or there would oe
heavy failure, when the banks would
be heavy losers. The banks agreed
that this was so, and assumed the our
den. In the ensuing investigation t
appeared that the head of the house,
in securing loans. had omitted certain
facts that indicated a lack of frank
Ciy "a hot
same man was elected president of
newly formed Industrial corporation or
trust. 1t appeared in the mo.!ey mar
ket as a large borrower. There was
no reason why the accommodation
should not be granted, until pariicu-
lar banker was attracted by the sfsna-
ture of the president, when he recalled
the episode of 1895. The final result
vas that the bankers informed the di-
rectors of the corporation that thiy
could only have the credit desired when
another president was electei. A 1iaw
IN thar mans character cost him the
presidency of this particular corpora
ton.
a mining promoter, a man with
charming personality, endeavored to
float valuable mine sevnraI years
ago in Wall street. He failed TO do
SO. Another man took up the WORK
Where he left off and succeeded Ashed.
why he failed, he said bitterly:
personally [ am honest. Some years
ago L had the misfortune to be asso-
ciated with man who accumulated
MS money out of questionable trade
l was said to be his adviser ana con.
ndential man. No one would trust hir,.
and now l find that every one is. reluc-
tant TO trust me. / am a mice felluw.
t-"and then / fall down. A good
reputation would have been worth
fortune to me in the last few years.
one of the most successful Wall street
bank presidents was invited on one oc-
casIon to become a partner in a pri-
yate banking firm. The opportunities
Iof making money were very -g1eat.
he thought it over and was favorably
olsposed toward the prop ositicn. He
consultd n friend.
your character, could not ge alz~~y win
mentioning member of the lirlry.
Why? He's tricky
Two years later the firm in oues-
tlon dissolved, and the tricky partner
retlred, but he had impaired the stand
ing of the house. The same. banker
was offered $4,000 to become a ttrec-
tof OF an industrial company that ap-
peared to be, and was. financially
!" Your duties, said the LAWYER max
ing the offer, will be only nominal. We
simply want your name.'
Inc banker concluded that he could
not afford TO be. associated with the
other men of the board Surely the
character Of this man is a very tangible
credit asset.
"A Swede walked up TO the president
OF western bank and said:
a 0r71- Axrv -
and Ay tank get him here.
Cross examined, it was ascertained
That he had no money except few
hundred dollars, but he wanted to buy
a mli. he was honest, hardWorkei
and good trader. The banker liked
hiln 80 well that he wasywilling to back
his own judgment and so he loaned the
Swede the money he needed. The bor-
rover made good and became one Of
tie most useful citizens Of that com
munity
In a little southern health resort
town last winter ! met a young fner-
| chant who did q business of $25 nnA q
year on borrowed capital of $4,000.
How did you do it, and how do you
get the credit" he was asked.
/ turn over my stock ten times 4
year he replied. But the banks here
Know me, and they know that | am a
man OF my worI. and they knew my
father before me. When 1 say that 1
VIII be at the bank tomorrow at II
O'Clock with $1,000, they know that I
viii be there at 1855. am part of
this town. l was born here; my wife
and children are here and I expect TO
die here. The man 1 bought this busi-
ness from was not as honest as he
might be. ] worked for him, and at the
Same time / protected the two banks
! with which he did business.
Il made a few inquiries and the
country banker made this expIana-
! ton:
! The man who owns the business
! now worked for another man who owed
US $1,000. The present owner knew that
the money was in another bank, and
! promised us that it would be delivered
, here at a. certain time The old owner
! drew out the money and went off on a
| spree. The present owner rather than
not make good his word,r borrowed the
money on his own note and paid US off
| When the business cameaon the market
We helped him get 1T. and weqare glad
! to do business with him. We only wish
that we could get more like Kim
! i"There are ten thousand business
men insNeW York who tomorrow might
lose every penny they possessed and
| yet on the day following they would
start new careers. full of courage and
confidence, backed by the seemingly in
tangible but very definite assets
brains health and, most important,
/