Durant weekly news. (Durant, Choctaw Nation, Indian Territory [Okla.]) 190?-1944, 1915-12-17

u In Oklahoma. Our interest rate
At this time is much less on an av-
erage than n was Give years ago.
I.canabie Funds Relatively scarce
We long for the day when we. hhv-
Ing capital and surplus OF $500. 600
win have deposits Of $1,000 goo or
moro. so that We can make a dividend
on the volume Of business rather
than on the high rate we are forced
60 charge We have population
here Of probably 1900 people. and
YET the total individual deposits IN
All the hanks az this time. exclusive
OF public funds. win not reach $780,
0Ov. In the older settled states IN
towns not having hair the population
that Drrant has, single hanks have
deposits In excess Of $1,000. 600. In
this connection the question OF taxes
should also be considered In the
older states pahilc improvements are
10 a certain extent completed and the
rate Is low Next January this bank
alone win pay taxes amounting to
about $4,000. This with the several
other taxes which Congress has Inn
posed on us, (aot to mention paving
taxes and other assessments) will
bring our total payment up TO an
AMOUNT nearly equal TO ten per cent
OF cur capital stock,
October Liquidation Hard On Ranks
For several months Of the year.
country banks are operated without
profit. many OF them at loss. Hav-
ing only one borrowing season. the
demand during that time Is so great
that only IN isolated cases can a
country bank 20 through II without
itself borrowing: and anticipating
the seasonal liquidation and increase
Of deposits when the crop has been
gathered and sold these banks would
just as soon. and In most cases pre-
fer to. make a loan of twelve months
instead OF one for six months. the
money during the difference In time.
being worth comparatively nothing
to the bank.
The maturity OF these notes Is
made in October for the reason that
payment is expected out OF the pro-
ceeds of the crop. and no greater
amount Of interest would be charged
n the noto should have a maturity
some months longer and liquidation
at that maturity was assured.
Farmers Loans Expensive TO Handle
We do a very large farmers busi-
ness here and we have some definite
knowledge as to the expense and un-
certainties that attend that class OF
paper. If our business were confined
strictly to such lines as that followed
by the First National Bank at Mus
kogee. for example. we could. on the
esme volume OF business that we now
have. reduce our force TO the extent
Of one clerk and one executive Off
clal, besides obviating the necessity
OF employing an outside man In the
fall. The notes on which we charge
a high rate OF interest do not exceed
In volume one-fourth OF our total
loans. yet in number OF notes they
constitute more than eighty per cent.
Even more than eighty per cent OF
the time Of the officers OF the bank
Is consumed In handling these notes
and in aiding the borrowers IN their
personal affairs and problems. the
subjects on which we are consulted
ranging all the way from writing
their wills to figuring the bushels in
a crib OF corn OF given dimensions.
Security Often Poor; Hazard Great
Our security on the high rate pa
Ter Is not flrst-class. and the hazard
IL great. as was demonstrated last
fall. and will be again proven this
winter, we fear. II Is nothing but
equitable that interest rates should
like insurance rates, be fixed some
~hnt according 10 the expense and
risk on each particular class. In the
case Of large commercial loans, on
which we charge lower rate. we are
partly compensated by the borrower
maintaining a required minimum bal
anee besides an active account.
which begets other business. The
borrowing farmer carries no bal
ances. and there are no compensat-
ing advantages other than the inter-
est charged. II is not from an ex-
cessiye interest rate. but from over
borrowing. that the farmers In our
section have suffered. The facilities
for borrowing have evidently been
too good. Our greatest task has
been TO hold our customers down TO a
loan commemorate with their ability