The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-04-04
SMALL BANK ACCOUNT.

small bank account, The New York
Evening Post says:
There has of late arisen a somewhat
animated discussion, especially in fam
| lilies of moderate means who keep
small bank accounts upon which to
draw checks for household payments
over the intimation by their banks
that the account cannot be continued
unless the deposit is maintained at
a stated amount. Sometimes the i'm
timation comes in the form of refusal
to open the account unless such a
stipulated minimum can be assured.
More often it takes the shape of a
notice that the average deposit ac-
count is too small, and that unless Ii
Is maintained at or above a specified
figure, a monthly charge will be inn
posed for carrying it. In some of
these notifications which have come
to our attention, the bank declared it's
purpose Of charging 81 per month
for carrying deposit accounts which
averaged below 5000. This, in the eyes
Of most people, would be equivalent
to notice of Withdrawals for the pro-
posal that depositor pay per cent
on his own deposit, for the privilege
Of having 1t carried, is financially pre-
posterous.
Now such banks as may have taken
this action had their reasons, and they
aid not do 1t merely because they dis
like to have small depositors on their
Est. One hundred separate deposits
Of $500 each produce a loanable fund
Of 100000, and no banking institu-
zion is Indifferent to even so relatively
small a sum for money market uses
The position Of the banks is that the
bookkeeping, the clearing and collec-
tiOn Of checks, and the other Incl
dental expenses of the office, are as
applicable to a small account as to a
large one, and that where Cas in most
household accounts) the number Of
separate checks drawn on the account
bears exceptionally high proportion TO
the average credit standing at the
bank, the performing of these func-
lions may cost more than the bank
could possibly earn by lending out the
deposit.
7 The case, thus stated, is undues-,
tionably strong. but it omlts some
other considerations. If bank had
TO deposit accounts except such as
have been described, it certainly could
not be doing business. But il the
question concerns a bank the bulk
OF whose accounts are commercially
profitable, but which also carries some
small deposits which are not remuner-
alive. the matter wears a slightly dif-
ferent aspect. The late Frederick d.
Tappen, one of the snrewdest Judges
OF banking practice in his day. took
ground very. strongly i'm defense. of
accepting small deposits. There was
then, as now disposition to figure nm
statisticahy whether such an account
Insured d profit to the bank or NOT.
and II not, then TO refuse to open it,
Mr.. Tappen criticised this conclusion
ON two srounds-one, that a small
deposit today might be q large one
next year or some years later and
that the business of a bank was to
look for customers; the other that
the use of given banks checks, ia
the payments even Of a small depositor
was the best of all advertisements
for that bank, and the cheapest also.
The bank may make no profit from the
account or which are drawn the checks
to settle butchers or bakers bills, but
1t may, i'm the course of time eet tbs
butcher or baker himself as deposit
tor.
S@ The officials appear to be making
the black hand hot foot it.
$780,
oH 1ni'laiiiah had gun
NV peopie reailze tnat It has
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shipped 10000 clocks to china f,r-
nishes the parapranbars +ba ,,a4ou,,,
-
Itg Down in Illinois a dog has been
found with two complete sets of teeth.
Perhaps his bite would be as bad as
his bark.
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