The citizen. [volume] (Berea, Ky.) 1899-1958, 1907-12-12
MON Ely TALKS
How a Bank is Managed, and
What Makes a Bank Safe.

What Makes a Bank Safe.
: A bank is stock company or cor
J poration. 1t does not belong to any
one man. Every person who has
helped to furnish the banks capital
has a share in the management Of the
bank.
These people who own the banks
capital are called stockholders. and
they are the bank. The fifty thousand
dollars capital of the Berea Bank and
Trust Company is owned by fifty
three different people. Wnen you deal
with this bank, you are dealing with
these fifty-three different people.
Most Of the stockholders Of The Be
t-lc, Bank and Trust Company live in
Madison County and in the nearby
counties of Jackson, Rockcastle and
Garrard. But even though most Of the
people who have a share in the bank
do live close to Berea, it would not be
possible for all Of them to come
to the banks place of business every
day to take deposits, cash checks and
loan money.
And so the stock holders have Sc
lected ten men from among them
selves to have charge Of the bank
and run the business for them. These
men are Mr.. J. ]. Moore, DIR. p. Cor
nelius, MIR E T. Fish, Mr.. ]. w.
Herndon, Mr.. A. w. Stewart. Mr.. w.
ii. Porter. Mr.. Chas. Burdstte. Prof. J.
w Dinsmore, Mr. ]. K. johnson and
Mr.. ]. f. Dean.
These men are the directors Of the
bank. The peope who own the
banks capital and who are personally
liable for the banks debts know that
their interests in the bank will be
well looked after. They picked these
directors to run the bank for them
because they knew that they are hon
est, that they are good business men,
and that they will see to it that the
bank is run safely and according to
law.
But the directors are all busy men,
and they can not spend all their time
at the bank every day, and it is rot
necessary for them to do so. So the
stock holders, through the directors,
/ .r.1e e..
at the bank all the time to take in de.
posits and cash checks and do the
bookkeeping for the bank
So this bank is not one man insti-
tuition, but its various interests ala
closely looked after by its Board Of
Directors. who are responsible to the
stock holders and to the State Of Ken
lucky for the faithful discharge Of
the banks obligations.
And once every month all OF the d.
rectors meet at the bank and thor
oughly sift everything that the cashier
and his assistants have done. They
look at the notes and see that they
are all good. They count the money
and see that 1t is all there. And they
go over the books and gee that they
are correct.
So when you deal with a bank, al
ways remember that it Is the stock
holders who are the bank, that the
directors are managing the bank as
agents for the stock holders, and that
the cashier and the clerks who help
him are agents for the stock holders
and directors and are heavily bonded
to the bank for the faithful discharge
of their duties.
And in judging of the safety of
bank always inquire what is the
amount OF the banks capital and who
are the directors who are running the
bank. II the capital is sufficient and
the Directors are honest and good bus
in,ss men, and IL they visit the bank
often to see that II is run right. then
the bank is safe. and it IS a good bank
T. put your money in for safe-keep-
ing.
Our capital is $4,000; surplus, s1o,-
1000.
Berea Bank & Trust Company.