The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-04-25

ADDED 70 by the balance kept with
them by the smaller banks AS
rule a bank of $4,000 capital In
small town will have $50. 600 average
yearly deposits. This bank is usually
forced to buy a screw door safe at
cost Of say $4,000, towing t9 a lack
of proper laws here for protection
against burglary buy a lot, put up
q building, etc. all OF which with
their banking books win tie up say
$4,000. leaving them $4,000 of their
original capital to work on Add this
TO the deposits of 100000 and we
have $4,000 The law requires that
at least Is per cent Of a banks depos-
its shall be kept in cash. making q
deduction therefore from this S62 600
of say 10000, and do YOU not agree
that a banker would be imprudent
these times not to have at least 25
per cent Of his deposits IN cash SO
deduct 25 per cent from the S62 900
which would leave say in average
figures. for q bank TO work on. $40
900. Now if we were able Jan LIST
to lend every dollar OF this money
TO even one man. without all the ex-
ira expense Of pass books. printing
and advertising, taxes and other
things, we would have net at the end
Of the year say $4,000 profits TIM
mense Think of itl | wish | was a
bankerl These are doubtless the
ideas of many who have tried TO fig
ure out the immense profit bank
makeS But TO the inside: Salaries;
cashier Sl00 per month working
from daylight until midnight and
awake half the night trying to fg-
lure out how he can do better, against
the bricklayers S6 per day OF s hours;
bookkeeper $75 a month and always
loverworked, doing something on the
outside for a farmer customer with
out charge; another clerk $50 per
month, lights So, water S., fuel $S
postage $40. advertising (of course
bankers advertise, if they don't they
won't need to before long) 5000, (in-
cluding calendars. etc.) donations TO
roads (not helped by Montgomery
Ward and others) and bridges,
churches and other sources month,
/ SO; taxes tof course the banker has
a snap there, he swears to his state.
ment and gets full tax and the indi-
jyidual gets of easy. Our new tax
law will doubtless try to remedy this
but they have failed to do so in Tex
las) say total taxes for state, county
and town. $500 per year; sundry ex-
lpenses per month, $25. Grand total
of about $500 per month running ex-
lpenses tours viii run $3.50 easily) or
So 500 per year. To which add the
5000 for advertising and $500 taxes.
making a grand total of about $4,000
per year, regardless of good or fair
weather, panics or other uR-
thought Of contingencies Now where
rs your man that wants to be the
banker? $4,000 or even $4,000 profits
and $4,000 expenses! Am ! wrong?
Pick my figures to pieces and If you
don't agree with me come down at
my expense and look at my bank
books. Well. you say how in the
world does the banker make any
thing2 We know they issue drafts,
collect items remit Sears q Roebuck
after helping TO select washing ma
chimes on trial get restrictions re-
moved to accommodate poor LO, set
lie disputes, advance money without
charge to the school board TO pay the
teachers, try TO help everyone even
though it be holding some farmers
kid while the wife goes shopping or
borrowing a new didy for the afore-
said youngster and having his. the
, grandstand act with II for the kid,
, all these things being a regular part
lof what is expected OF and done by
the country banker (of course for
, nothing, who ever heard of a charge
for such things) but we always
/ thought banks made a pile of money
(durn 'em they charged me 81 for
$50 for three months one time when
II bought that bunch of hogs and
made $50 clear profit on the hogs IN
/ the ninety daysl, etc. etc. being
/ what we hear those not familiar with
, the inside OF banks say. You ask
then. How do banks make any
, thing?" will tell you a great Sc
! cret We charge heavy for money
when we have very little to lend
, and we lend il at low rate when We
. have plenty. We pay no attention
/ whatever to any usury law and We
feel that we are right. II we did
I abide by the law that says we shall
i receive only 10 per cent for our mon-
/. lev the smaller banker would have 10
90 out OF business unless the state
f, could turn loose another tiye million
, lat a cheap rate. and when that was
I fused up. more too. When the writer
2 lcame TO the territory he came 10 try
I and make a living aud success OF
Z his banking business lie was vel
I coined at his place BY many who said
! lhey were glad he had come because
! lmoney was scarce and high and as
4 lonr capital was nearly all made up
/. Iin Texas II was just that much un.
! LOADED near this section. Money has
, been cheaper here since we came
, THAN ever before and we feel If we
: can pay a dividend Of 10 per cent
/, laboye our expenses and the losses we
. have. that We are doing we'll, Yet
/ we do not confine ourselves to a
lper cent rate nor coald We do more
: then pay expenses here IL we did
/, so unless we rediscOnnted heavily
1 which would hardly be wise.
There was a law governing Indian
Territory making the penalty for
llelture Of the principal and Interest
{. on usurl0ns notes have in my po
= session about $1,000 OF what was con
j sidered good paper and belonged Y
a failed private bauk at a small town
! of the territory years ago. The banl
!. could moi realize on its loans, closed
y up and although Il had paper TO the
extent OF S65 900 which was good. ow
lf loo 4, tlfa law which hnId