The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-04-23
THE QUESTION OF USURY

Bankers, as rule, are careful 10
regulating be expenses Incident to
their business. In oklahoma salaries
are not excessive. even Ia aome OF the
higher Offices Il is true 1t would he
possible. somewhat. TO reduce these,
bat 1T is exceedingly doubtful whether
Il would DO good policy TO do SO. Ihv
bank officer or bank clerk must not
only be an expert as to books, but he
must he of hiph character Not simp-
v honest aa to dollars and cents, Bat
with punctiliopN regard for correctness
aud honorable dealing. He occupies a
uhiQue position in the community,
When n addition 10 the technical du,
Ties of his place, he Is 20 a great eX-
tent the adviser and coHuselor of his
neighbors. Cheap people in such sit
nations are surely not desirable 1t
Is safe TO say, therefore, that very lit
tie money is wasted in the expense
account of the banks of oklahoma
but il takes people, and good people.
too. to do the work. 1t takes far
larger amount OF stationery than an
inexperieuced uersOn Woe'd suppose.
II requires the payment OF taxes
which cannot be eyaded by hiding
money. notes aud bonds IN an old sock
or RUSTY tin box. VI is necessary 80
pay money for fuel, lights and clean
liness. Contrary TO the genc";l'ly a.
cepted idea, there are no harder )rE
ed people IN any community than those
who stand behind grills and day aftcg
CAV. and week after week and month
after month plod through the long
rows of leures which are made nee.
asgarv bv the mmberles checks,
drafts and deposits that pass through
bank. 1t will be found after deduct
iue the unavoidable expenses ih1i
mo proHts in banding which 81 10 the
eh-rnholders. are less thar those oi
most businesses in the communltg. u
ibis is true. ana il is quite cosy 10 as
certain whether or rot il is true, then
Il h not unwise to SO hamper abnat
This legitimate and important busi ess
as 10 make invesimcnt IL IL undesir
able and accommodation to its Chous-
tands of patrons in the smaller lows
imnoesible2 There are in Okla ''.u
Itodav fotiy-nine state banks Win a
lcapital stock Of S5.00000; there are
ltwentv.one state banks with capital
Iof S4E 900 90: and there are one
lhunG ed eighty-one state banks with
capital of 100000 and less There
ere two hundred and twelve state
ibppks whose total capitalization Is
s. OS0 .49l 90: their total deposits are
81 2S.50O00: their average capiiali-
2ation is s9,S13.00 and their average
.deposits are S12ii5.0O. For illustra-
ition le rs take bank with S10OOO.OO
capitai a1l S10.OO0.Oo deposits; which
ii4 unfair to the argument in that there
are so many smaller banks thah that
both as TO capitalization and deposits
Yet for IN easily understood eXposl
ticn. we will use these amounts.
a bank mast have substantial
building in which to Do business. which
contains a 1reproof vault. Such 2
lhuilding and vault cannot be provided
for less than Sl,500.00. The small
hanks being remote from police pro
lection. il becomes tle more neces
sarv far thenf to provide the best ob.
t9inable burr-r proof safes A good
eianeanesc H., viii cost $l,OOO.OO The
ieressarv furniture and fixtures and
heating apparatus, all Of modest pre-
tensions will cost at least $20O!O0
which deducted from the capital stoct
of $40. 10000, leaves S7,25O.oO aVailapi'
! for banking purposes. While the Ma
tional Banking Act. and some state
laws. only require small banks "a
keen 10 per cent of their deposits II
cash and exchange as a reserve, ye'
most Of these being remote IRON
their supplies of currency do not lee
Il safe to operate with less than ~
lper cent to 33 l-3 per cent reserve
. consequently the 100000 bank ma
only available TO loan about Sll ,OOO.OV
lOf course il is impossible 10 Keel
, laut actively earning interest through
lthe entire year, this full sum. Bu
eunpose IL can loan S10,000OO, proVid
Lea mat charges for exchange and col
llecfions made up for the time whel
The full amount was not earning Al
{ ltersst II will be conceded that
! man who Is sufficiently competent I
D he cashier. bookkeeper and ianiior @
{ q small bank is worth $4,000 pc
3 month. taxes will average $4,000 pc
5 annum fuel viii average $500; ST
D .ianary will average sl5oo0; hre an
; burglar insurance $4,000 brooWh
brushes and miscellaneous item
! S2l.00. attorneys leea 9-"'"v'
1 which add losses $1,000; making
total of expenses 100000
Though the president of the ban
lis usually something more than a
: ornament. we have here provided u
Z him no salary whatever Now, thes
expenses are not fanciiul They az
K items which must be pcid They az
d more likely to oyerrun this estimal
4 than 10 be a less amount. II doc
s. not take very astute mathematician
3. TO figure out Chat with a ten per ceI
II lrate SlO.000OO bank in Oklohon
k. cannot make $l.0o profit In a yea
Ie VIII that condition rebound TO the !
* terest of the common people al
# lthelr banks2 Those banks who's
owners are the farmers and me