The Washington times., 1912-05-12
IN LOCAL FINANCIAL CIRCLES
By I. A. FLEMING.


The clock strikes r. Every date no
matter how far distant, will in due and
well-ordered time, roll around. Every
bit Of paper bearing your signature,
promise to pay, will mature. Every
instrument be either honorably ac-
Quilted according to its provisions. in
the finality or dishonored. And in the
action there is the stamp Of approval or
disapproval upon your business integ-
rity.
Ninety-nine-year leases expire. The
| parties thereto are not on deck, but
the heirs and assigns have the carry
ing out of the provisions.
Time Is the one and only perpetual
| motion; II keeps on going. minute after
minute, day after day, cycle after cycle.
Most business men realize their ex-
pectations as Il time IL not as to sue
cess.
| Every agreement, contract or under
standing, in a business mans life is
of Importance and should therefore be
| carefully considered, for the business
| man has one life to live. He may even
| live down failure and again command
| success, but he will ever regret that
which induced failure.
No man should sign a document ex-
1
visions, for the paper is then a part
| of his business life.
No business man should indorse the
paper of another without thoroughly
understanding that in doing SO he
stands out boldly before the world as
assuming the obligation of the maker
and will look after its payment in the
event of the latter's failure to care
! for II.
10 On these principles. backed by the
reputation of the maker, of the indorser,
of the business' Of the maker and in
dorser, of the financial responsibility of
both and the credit Of both, the value
of commercial paper il based.
And when a note Is given to a bank
or other lender of money 1t should be
looked after as to payment at the time
of maturity or an extension arranged
for days before maturity.
Date Of maturity has been too much
disregarded in Washington by makers
; AMI especially by indorsers.
, 1t is the part OF wisdom for bankers
to charge off literally on doubtful as.
sets.
Cleaning house" is always beneficial
, Sometimes IT hurts. 1t makes the
) shareholder squirm 10 have the divi
dends on his bank stock, reduced tenn
porarily, but it's a good thing for the
E bank and for the stockholder in the
: long run.
Wiping out a cool million of assets
| requires a large amount of real cour'
1 age, but President Forgan. of the Firs
: National of Chicago, did it, and just al
J easily as If it had been a $50 note Of
, IN. c." value.
There have been housecleanings ir
: Washington and elsewhere. Here. how
/. ever. the work has been. accomplished
1 in great shape since 1907. There were
t few grievers and a quake or two
n then; no failures, but some dread o.
first column, first page stories. and th'
r reckoning that has been going on sine,
e then has made assurance doubly sur,
that another 1907 would not even brint
p a tremor.
n Not all paper that goes on the debi
o side of the profit and loss account stay
!: there. Time paves the way for the fina
= settlement of money matters. The lonl
: lane. hard luck, not infrequently turn
t into Prosperity avenue. Frequently tn
: old note is taken up gladly by the re
| SuCeu q Dlt some
times. frequently paid in full and will
- interest to date
judgment against the maker of
note is oftentimes the cause of its fina
payment.
Many people receive inheritance; per
haps 1t may be necessary to transfer
lot, to make a loan on property, etc
It's a daily occurrence.
A little old judgment stands in tn
way and must be satisfied and the prof
and loss account is given little credi
| as the result.
It is the part of wisdom to use tn
Judgment.
The bank needs the borrower Just al
, much as the borrower needs the bank
Functions of a bank are many sided
The care Of the capital of its share
holders is essential. But there woult
S be no money to be made in loanin,
capital alone. Expense would Absorb
profits.
The bank must be intrusted with tn
money OF its depositors. and then
must lend depositors' funds to de
positors in order to do a profitable bust
ness. Ergo, the would-be borrower,
entitled to consideration. should have n
d hesitation in approaching the banker
4 assured of a cordial welcome. Tn
other kind of borrowers may prefaC
their desires with discussions on tn
n weather and divers topics, but the de
n lowest prevailing rate-trst. Gossi
= comes Nter.
There's at least one millionaire II
O. Washington who makes his boast tha