Bridgeton pioneer. (Bridgeton, N.J.) 1884-1919, 1916-01-20
Stokes TALKS
ABOUT BANKS
Great Work Done for the
People.
NOT MUCH LOSS
Former Governor Makes Very
interesting Address Upon
Banking.


bic Club at the Trenton House, Tren-
ton, was featured by the presence of
the members of the New Jersey Retail
Monument Dealers Association, as
guests. The attendance numbered
nearly 100.
Former Governor Edward Casper
Stokes was the speaker and he gave
an instructive and interesting talk on
Banking Governor Stokes vel
coined the members of the Monument
Dealers Association to the city
well as to the luncheon.
In his address, Mr.. Stokes dwelt
largely upon currency, what money
is, and to how many uses it is put.
He described the operation of the
banking system throughout the Unit
ed States and to what extent banks
are used by manufacturers and op-
orators in all lines of business. He
also explained the saving fund of the
banking establishments and told OF
other features of the profession.
Among other things, Gov. Stokes
said:
Banks render vast deal of SER
vice to the public for nothing. They
keep the accounts of a large number
OF its customers and saves them the
expense of clerk and the trouble in
cident thereto. A depositor in Tren-
ton goes to Philadelphia to make a
purchase. He avoids all the risk of
carrying money. He makes his pur-
chase and in payment simply gives an
order on his Trenton bank for the bill
His Trenton banks sends the money
down to his creditor, gets the receipt
on the back of the check, enters an
account of the proceeding in his pass
book and returns him the receipt at
stated periods. Thousands of people
are accommodated by banks in this
way, without any expense whatever
for the service.
"As a collecting agency banks ia
cilitate the trade and commerce of
the country. A depositor in Trenton
leaves with his bank checks on San
Francisco, Seattle, Denver and Chi
cago, amounting to $500. He gets
credit on his pass book for that
amount. AS matter of fact he has
made no deposit at all. He has mere
ly given his bank an errand to do-a
duty to perform. He has said to his
bank, GO out to Chicago, Denver, San
Francisco and Seattle, and collect this
money for me- That service his
Trenton bank does without cost, al
though the banks in the large centres
are beginning to make a nominal
charge for it.
1t is a little difficult to estimate the
exact cost of a bank to the public.
Based upon the amount of transac-
tions and net earnings to cost of SER
vice rendered its patrons by one of
the banks of this city it is less than
two mills on the dollar, that is less
than one-fifth of cent. A mercantile
house that did not make a profit of
some s to Is per cent. on its transac-
tons would hardly be supposed to be
doing a successful business.
Nor has this cheapness of service
been gained at the sacrifice of safety,
for since the inception of the national
banking system. in 1868, the loss to
depositors has been about LA of one
per cent. That is, for every dollar on
deposit in bank for a year you run
the hazard Of losing ine-fourteenth of
one per cent, or less than one mill.
No other institution in the civilized
world was ever conducted with such
a splendid margin of safety"