The Colville examiner. [volume] (Colville, Wash.) 1907-1948, 1916-05-27

III the course OF human events
it becomes necessary for most
people to borrow money. Busi-
ness men who can make 10 per
cent or more out Of trading find
it profitable to borrow in order
to carry on business on a larger
scale, discount their bills and car
ry complete stocks. Others find
it desirable at times to borrow for
various purposes, and some find
it necessary to borrow because
they have either failed to save,
or have been unable to save and
are confronted with an exigency
that requires money,
Should you at any time find
yourself in such a condition, do
not borrow from your friends, go
to your bank, That is what
banks are for They live by their
loans, and no banker will refuse
loan that meets certain require
ments and is in his estimation
good. 1t is proposed in the next
two or three talks on banking to
tell You what the banker wants
to know when you offer him your
note. Whether the loan is large
or small the same rules apply.
In the first place the banker
will expect you to be a depositor.
Most banks make it a rule to lend
to only those who are customers.
and customers mean depositors.
If You favor the banker with
your account, giving him a profit
from the use Of your money, he
will be glad to reciprocate and
let you use his money when you
need it and offer the proper Sc
curity The rule is well estab-
= to lend in the proportion
Of not over five to one; that is, if
YOU keep a balance Of 800, the
banker would lend you $500, if
he thought well Of your credit
standing. The greatest mistake
business men make is to keep little
or no balance in the bank and then
expect the bank to accommodate
them with loans.
Take an actual case that hap
pcncd recently within the expert
cnce Of the writer of these talks.
A business man wanted a note Of
800 discounted to meet his pay
rail-. The banker knew him. His
moral standing was good In
looking up the account his bal
ance was but 80 cents. Now
what did that Indicate? just
this: That the WOuld-be borrower
had trusted everybody until his
capital was on his books, here,
there and everywhere, and he was
not collecting his bills. He had
no free money" to carry on his
business. He had no working
capital. lie was strapped. "
The banker was perfectly justi-
fed in asking the borrower either
to make better collections, or get
his affairs in such shape that when
pay day came he would not have
to depend upon borrowed money
to pay his men.
Nothing so~hurts an application
for "A loan in a well managed bank
as low average balance, and all
good bankers give heed to this
factor. Therefore, as a starting
point, do your business through
"A bank, depositing your receipts
and making your payments by
check, and keep "A balance large
enough to gain the bankers good
will when he looks at his ledgers
to see how much of your own
money you have available when
the needs Of business require.
Don't do all your business on bor-
rowed money, for if the banker
finds it out, he won't discount
your note.
Up to date County Auditor A.
b. Sansburn has issued on an
average Of one liquor permit per
day. Most Of the permits have
called for two quarts Of whiskey.
The amount Of intoxicating liq-
uors secured in this way is only a