Belding banner. (Belding, Mich.) 1889-1918, 1908-09-17

II
hding may be protected It Is still true
that an alert Public opinion has great
influence In maintaining proper bank
ing standards. We cannot afford to do
without that influence.
Under present conditions the invest
ments. the personal habits, the general
character and abilities of the banker
are under the constant scrutiny of the
community, and matter of public In
terest. Notwithstanding occasional In
stances In which the public has been
deceived, II may be stated as a general
proposition that an unblemished char
acter and a reputation for good bust
ness ability and conservative judgment
have been necessary TO success In the
banking business. The public looks
over the individual who is to receive,
and invest and be responsible for its
money with some discrimination, and
the elimination Of the unfit by the
scrutiny and composite judgment OF the
community is factor OF the highest
value in maintaining the standards Of
the banking business. 1t Is, however,
n factor entirely overlooked by the ad-
vocates OF this scheme.
They calculate the Insignificant per-
centage Of loss to total deposits under
greater losses would occur after char
acter ceased 10 be factor In the bust
ness, and all deposits were given blind
" TO whoever would bid highest for
them. To the objection that this elm
nation OF character as factor In the
acquisition of deposits must tend to
promote reckless banking, reply Is
made that bankers will be deferred
from recklessness by fear Of losing
their own money. The reply misses the
point. All men are not deferred from
recklcssness by fear Of losing their
own money, but reckless men are now,
a. a rule, kept out Of the banking busi-
ness by the unwillingness Of the public
to eDtrust money to their care.
Careful Banking Dest.
Under present conditions there are
compensations in favor of careful and
conservative banking. There are peo-
ole who are not Influenced In their BE-
lection Of a bank by the highest rate Of
Interest offered on deposits, and who
have their suspicious aroused by the
tender Of exceptional inducements.
They know that such offers put a
strain upon the business, and they de-
liberately prefer to place their money
with banker who will not subject
himself to such strain. These deposit
ors esteem safety above all other con-
siderations, and they are numerous
enough TO exercise a very wholesome
restraint upon reckless tendencies In
the business. A banker now prizes the
reputation Of doing safe business.
and cannot afford to have q reputation
for imprudence and speculative In
check by these powerful considerations
the pressure Of competition carries the
business near the danger line even
now. There Is too much competition
for deposits, and the ambitions Of the
more venturesome members OF the fra
ternity, and the pace they set, puts the
whole system under strain.
But what are likely to be the con-
ditions In the business when the public
is no longer concerned about the man
agement Of a bank, and all the re-
wards for conservatism and restraints
upon recklessness are removed? The
considerations which In the past have
tended to safeguard the business and
advance its standards would be gone.
The public would care nothing for the
personality Of the banker. Instead Of
looking TO the institution which receiv-
ed the deposits, the depositor would re-
~ on an outside fund. A banker
might bet all the deposits on horse
races without the fact becoming a
matter of any concern to his custom
ers
And how would the conservative,
prudent banker fare under these con-
ditions? The legitimate reward for
maintaining that character would be
/ iOSt W Ilt NOulu get hO utDoSitS
unless he bid as high for them as his
rivals for the government would stand
behind the latter, and assure the pub
lie that they were just as safe as he.
and tax him to make them so. In
short the reckless and incompetent peo-
pie, who are now either excluded from
the banking business, or held In check
by the distrust which a discriminating
public feels towards them, would make
the pace to which everybody else in
} the banking business would be Obliged
to conform or get out of the business
i Scarcity Of Humor.
II is to be feared that If the papers
reserved a special corner once eacf
week for the witticism of the week, 1,
would be often left blank There Is nc