Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1910-06-17

A merchant IN a large city allowed
his name to be posted in his club
three times for non-payment of dues
A few days after the last posting he
applied to his bank for a loan. When
the application came to the banks
credit man that individual pulled out
the customers history card.
The latest entry was one typewrit-
ten sentence: Does not pay his club
dues; three times delinquent" The
loan was refused. The merchant was
careless, near broke or unappreciative
of his credit standing: any of these
reasons looks bad to the banker.
AS an asset integrity is considered
more important than property itself.
A well known credit report in agency
defines integrity:
Business and social honor.
Personal department.
Character of associates.
Reputation"
Ability it measures thus:
Age and health.
Business experience.
Education.
Income by personal effort (very
importantly"
THAT which can be taken under
an execution.
"And whether personally acquired
or inherited.
QUALIFIED by income.
Net wealth (very Importantly
In gathering its material for reports
it grades its credit requisites like
this:
ability: relatively essential.
Integrity: absolutely essential.
Property: not necessarily essen
tial.
Analyze the headings as furnished
by this credit reporting company, you
will see that practically everything
pertaining to your personal and busi-
ness life is reflected In the files Of
the bank.
These files, unfortunately for the
careless borrower, are not always Sc
cret so far as the banking fraternity
Is concerned. You may have no ink
ling Of what the files contain, yet
every bank in your town may know.
There is sort of freemasonary
among the modern banks. and they
freely exchange credit information or
even volunteer it. So If you are turn
ed down by the Tenth National Bank
because you are slow in paying for
your automobile or for frequenting
the ball park daily you may be tol-
erably sure that the Eight or Ninth
National Bank viii not be ignorant
or your falllngS.
An eastern wholesale merchant de-
veloped a liking for society," golf and
yachting. In the popular eye he was
rich. Even some of the banks were
free to accept his optimistic state
ments and his loans aggregated a
large sum. One day, under the in
fluence Of a good dinner he confided
to a banker friend his conviction that
most business men work too hard.
There are two kinds Of organiZa-
ton" he said. lone is organization
Of work: the other for leisure. have
developed my business to the point
where my organization almost takes
care Of itself. That is why I am able
to spend so much time in recreations.
II have reduced the things to a
system. In two hours at my desk /
can handle all the important matters
necessary for my individual attention.
rise at 9 o'clock, breakfast at 9.45
and go downtown in my auto so as
to reach the office at II. BY l o'clock
l am through with my days work.
seldom go back after luncheon. It's
all in the system"
The banker repeated this conversa-
ton next morning to his associates
at the bank. They looked up the
wholesalers card records and found
lndl ne was up W Tic lHC
maximum loan" column showed big
for many months, while the average
balance" column indicated anything
but strength.
Hes carried his organization for
leisure far enough" declared the
credit man. IT think we'd better give
him an opportunity to organize for
work"
SO the wholesaler was politely re-
gu 4sted to call on the president and
was told that his line of credit must
De heavily reduced at once. He was
angry and declared that he could get
any accommodation he wanted any
where in town. He would take up
his notes Immediately he said, and al
so close out his account.
Within two hours the banks credit
man received three inquiries over the
telephone from credit managers for
other banks. All were told the truth
straight and detailed.
From one standpoint the bank was
hurting its own cause by giving the
information to the inquiring banks
for by Withholding the facts it would
have aided the wholesaler to borrow
money elsewhere and thus take up
his paper.
But the credit man looked at the
al
SOmeday he would want a similar tip
himself and he would depend on the
truthfulness of his fellow credit men
even though they worked for banks
that competed with his own. It was
not to his interest to stick any
bank. Instead it was to the mutual
interest of all the banks to eliminate
the undesirable borrowers from the
common field.
SO the wholesaler went from bank
TO bank attempting to borrow and was
amazed at the unanimity of the re-
fusal. 1t is doubtful whether he ever
knew the real reason. He did awake
to the fact, however. that his busi-
ness was not as well organized for
leisure as he had supposed. He got
down to hard work before he cleaned
up his bank Indebtedness.
An eastern manufacturer Of staple
line had long enjoyed a fair line of
credit at his bank. Now for several
months his loans increased; he did
not seem willing to clean up. Part
of his account matured He wanted
to renew. The bankers asked him
why he wasn't reducing his line,
whether his business was falling off,
whether he had any drains on his
capital.
The manufacturers answer was eX-
panding business. more outstanding
accounts-entirely optimistic. Too
optimistic, the banker concluded. He
started his credit man out on a quiet
investigation.
He discovered that the manufactur-
er was spending only half his time
at his office: the other half he de-
voted to another manufacturing con-
cern in the city. Through the latter's
bank it was learned that the manu-
facturer owned a $4,000 interest in
the new industry. This he had never
reported in his statements The bank
ers sent for him and asked an eX-
planation.
The founder of the business was
an old friend of mine," he explained.
He owned patents on plumbing de-
vices that had a big market, but he
lacked capital. He offered me a
chance to invest some Of my earn
ings. 1t looked good, so l went in.
1t is good too"
But you were borrowing money
from u.s." protested the banker, "and
were under obligations at least to
keep US Informed Of your investments.
You were investing our money in this