The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1916-07-20

for working capital to keep in the
bank He should not put all his mon
ey in fixtures so that he has none for
stock, and vice versa. Neither should
he forget that his best credential with
his banker is a good working balance.
The reason why banks are so par
ticular that borrowers keep a balance
is not that the bank wants excessive
profits-lending say a thousand and
asking that one-quarter of it be kept
on deposit, but that the borrower may
have free working capital at his COM
mand all the time.
The position that if l borrow thou
sand and am asked to keep $3.50 on de-
post, / might as well borrow $3.50, is
not well taken; for even though the
bank balance is borrowed money, and
costs the interest, it is a cheap price
to pay for the bankers good will In
fact a business man could well af-
ford to pay six per cent for money
and leave it with his banker, for the
| good it would do his credit.
In the granting of credit, business
men as well as bankers, give due heed
to the ratio between quick assets and
quick liabilities. The banker likes to
see two to one-two dollars of quick
assets to one dollar of quick debts
The quick assets are: Cash, bills re-
ceivable, accounts receivable and mer-
chandise. Quick liabilities are: Debts
due for borrowed money and debts
due for stock. The difference is the
working capitalize amount in excess
of the debts. This means to say that
if the quick assets were all turned in
to cash and the debts paid, without
disturbing the other assets, such as
real estate, machinery, etc, there
would be a cash balance left over.
One of the great weaknesses of AM
erican business life is the starting OF
a business on too little capital. Two
carpenters and builders who have saw
ed few hundred dollars decide to be
their own bosses and by some schem-
ing get a piece of land. They persu-
ade somebody or some institution tc
agree to loan them a certain amount
on the property when complete and
lay their plans carefully and figure
: closely. Something goes wrong, the
weather is bad, the work is delayed
strikes, and liens not reckOned with
) interfere, and the result-failure. They
!, lack capital; and lacking it, lose out
I hey CduuOl GARRY lltI lOdu-
Clerks with little money and col
I ossal nerve begin business for them
o selves, only to find bankruptcy star
them in the face in a short time, du
. to lack of capital. A good year make
o the proprietor jubilant and willing t.
gamble that the next will be better. H
q moves into larger quarters, lives NOR
# extensively, buys a car and hires hi
servants, only to find depression set
% ting in, unsettled business condition:
% competition, mishaps, and no way G
h retrenching Happy the man who ca
If plod along on the safe track, Statistic
IS to be sure rather than sorry. None
q is power, and impotent is the ma
g or the business that lacks it.
II Be as honest as you expect the OIL
r er fellow to be. Get all the ability 20
can acquire and all you can afford
buy, but do not overlook the importaT
- fact that backbone is necessary
4 every business just as it is in ever
= body, and without it in sufficiei
measure success is impossible an
failure sure to come. He is a wi
Ill man who knows his own strength al
elk doesn't hitch up to more than he ca
n pull