The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-02-23
BANKING TALK
LENDING THE
BANKS MONEY
THE PLACE FOR EVERY DOLLAR
YOU DO NOT NEED is IN THE
BANK-lT'S THE BANKS GREAT
EST SERVICE TO YOU.

ceiving money offered for deposit and
paying it out again on checks, it
would render a very great and neces-
sary service to the individual and the
community, but it would soon cease
to exist, because the life blood of all
business (protits) would be lacking.
The operation of bank is expensive,
and to hire clerks, pay rent, buy sta
tionery and build vaults, merely to
protect money and handle checking
accounts. without some source of in
come, would prove costly undertak-
ing.
Therefore the bank must seek some
steady source of revenue, and finds it
in lending the money of its stock
holders and depositors to those who
can use more than they have, and are
willing to pay for the accommodation.
And only as it loans its funds, and
gets them back with interest, can it
long operate as going concern.
The peculiar fact of the matter is
that a dollar in the bank will do as
much work as from four to five dol
lars elsewhere. In technical sense,
the banker does not loan money, but
credit. He does not want your money
to loan, but to use as a basis of credit,
and one dollar to him is as good as
four for business purposes. This may
seem an impossible proposition. Let
us prove it.
Experience has proven that every
body does not want all their money
at the same time. If one hundred
people were each to deposit one hun
dred dollars in a bank, the banker
could safely assume that not over one
quarter of them would call for their
money at one time. AS matter Of
fact, less than fifteen per cent would
do so; therefore, if out Of every dol
lar deposited, the banker keeps fifteen
cents in money, he can meet every
ordinary demand for cash. When an
unusual call arises, it is called a
bank rum which merely means that
more than the usual number of people
are demanding their money at one
time.
Working on this theory, the banker
does not, out of the hundred dollars
you deposit, lend, let us say, ninety;
he puts the hundred in his vault
lin his reserve) and discounts the
notes of his customers, placing the
proceeds to their credit, against which
they can check, the same as if they
had deposited cash. The banker
works on the law of averages, and
seldom does this law fail him, for
as long as he has "A certain percent
age of his obligations in cash, or
quickly available, he is safe. CThe
amount of reserve money varies, in
no case being legally required to be
more than is per cent of the dep's-
its).
If, therefore, the banker with one
dollar in money can lend ten in credit
when you hold back the ten, you de-
prive the community of the hundred
in credit. The banker is credit al
chemist, making one dollar do the
work of many, and you owe it to him,
to yourself and to your community
to make the credit structure as big
and as strong as possible.
The place for every dollar that you
do not need for your daily necessi-
ties is in the bank, for the bank will
not only protect it against fire and
thieves, pay it back on demand, but
by the alchemistic process known
only to banking, turn it into ten
credit dollars. which are as effective
in the business world as money dol
lars, and cheaper. This is the banks
greatest service to the community
and to you