The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-08-07
BANK CORRECTS
ITS MISTAKE
How a Serious Situation
Was Successfully Dealt
sf With.

The San Francisco Banker con-
tains the following editorial discus
sion that is Of particular interest to
everyone who does business with a
bank and to the bankers themselves.
Tho Cashiers Story.
Is the work of advertising an es-
senttal or an Incidental? The balance
OF the evidence at hand and the
weight of argument are in favor of
the contention that it is an essential
and not an incidental.
II the public is not made aware Of
the fact that a certain bank is strong
or has the qualifications making for
strength. then no one probably would
seek the services of that bank.
That advertising is an essential is
proved many times over. An Illus
tration of this fact is found in the ex-
perience of an eastern bank that had
$1,000.000 capital and s2,4OO,OOO sur
plus and undivided profits, but whose
business was falling of.
The stock was held by individuals
who paid all ii was worth for il, peo-
pie who did not have the advantage
Of the gain made by the earned sur
plus. This bank was always opposed
TO advertising and stood still, CT,
rather, refrigerated. It's officers were
men Of personal and financial high
standing, and its directors were men
whose names were above reproach.
The situation became so serious
that new men were elected to the
board of directors, and the old presi-
dent was dropped, and there was
chosen as his successor a self male
business man who had accumulated
considerable wealth by reason of his
own efforts in the mercantile line
He was a good business man, but
his success had developed a certain
amount of egOtism in him. The
cashier believed in advertising, and
one Of the first things he did upon
assuming charge of the bank was TO
begin an aggressive advertising cam
paign.
The results were soon apparent.
The business of the bank grew rapid |
y and extensively. The new presi- |
dents egotism, however, led him into |
making the mistake that the new
business came solely by reason of the !
fact that he was president and that /
r. came because the people had an |
especial confidence in him and his |
ability.
The fact that his predecessor was
q man OF equally high standing SEEM
ed to have escaped his consideration,
or, at any rate, he did not ascribe tue
rev success of his bank to advertis-
ing. And so he stopped the campaign /
completely and ceased to advertise in
any publication.
The result of this change is best
told in the words of the cashier Of the
bank. an admirer and warm friend of |
the president.
About three months after the cam
paign had ceased he spoke to an
other banker in the same city in the
following way;
The old man has begun to see the
value of advertising for a bank He
that drew to us the new business
that we have put on our books, so re
told me to cut out the advertising. l
did so, and almost Immediately we
stopped getting new accounts.
The difference in new business
was so marked that even a child |
could realize il. The old man refused
at first to believe that there was any
connection between the stopping of
new business and the stopping of the
but the book showed
clearly that there was such a con-
nection, for almost on the day we
stopped advertising new accounts
ceased to come in. so now I am going
to start a new campaign of advertis-
ing by order Of the old man himself"
The above experience of the nation
al bank referred to serves as one of
the best possible Illustrations OF the
whole matter of advertising.
The first experience Of the bank
with its responsible board Of directors
and its many responsible and able of
ncers, which only went backward be-
cause II would not advertise. and the
later experience it had Of putting on
new business when it started an ad- .
vertising campaign and the stOpDage 7
Of that business when II ceased to ad- :
vertise again and then the renewal of }
activities when it again began to ad- II
vertise ought to be a guiding light to
any banker.