Mountain advocate., 1917-01-12
THE STRONG POINTS OF A
BANK
By J. M. RoBsIoN, President
First National Bank of Barbourville, Kentucky

In article subject we took up and discussed
pornce of having sober experienced and successful
fge of bank drunkard gambler ospecuaor should
be in charge of bank We also discussed length the
overdra There fund any bank with which pay
overdra Every time the officers of bank overdraft
they violate the law and take that much out of the funds of
somebody ee The State of Kentucky has made crime give
cold check Every citizens o the community who interest
ed having strong banking Institutions should help the
officers of their bank to eliminate overdrafs If entitled
to credit the First National Bank and short of funds all
need to do the bank and borrow the
1t will not be for checks the Bank when
you have funds them friends
help keep and maintain the First National Bank per-
ecty SAFE that when place there will feel
easy, sleep sound and know that get but
Surplus Fund.
Another important point depostor consider select
ing bank to find out what Surplus Fund.- the bank has,
bank like other business in order be successful its
ngs must exceed its After paying the and other
necessary out of the earnings the that
mains is called the surplus po These surplus profits belong to
the stockholders and be paid out them by of dv
dends Some banks out part of these surplus profits to the
stockholders by the dividends the remainder
surplus fund.- Our bank January 1t 1917 had placed $4O
10000 its Surplus Fund.- This has accumulated by plac
ing part of these surplus profits the surplus fund each year
This bank started in with capital of $25 100000 paid cash.
that the surplus fund of this bank has outgrown its
capital and exceeds co. You readily that
this large surplus fund of 100000 adds strength and security
the bank and further indicates successful
gement The management is willing aside this
protection for its depostors For instance merchant in town
aside and deposit his credit part of the earnings
surplus fund and should keep this until this surplus fund should
amount $40 600 co. would that he safe
do business with He would be you would regard
careful successful business The surplus fund is regarded
highly banking people that when the surplus fund of
bank equals its capital it placed the Honor Roll of Banks
the several hundred National Banks the State of Ken
lucky than about twelve of them entitled this dis
ncto The First National Bank Barbourvle has only
reached this point but its surplus fund nearly double it's capital
the purpose of the of this bank continue o
add this fund until is double the capital National Bank
get the Honor Rolf except the surplus fund equals
capital We conclude from this that the surplus fund of
the important and strong points by which Judge
of the safety and management of a bank.
When the experienced banking matters looks the
official rendered by bank and that
overdrafts and large Surplus Fund.- he knows with
being acquainted with the officers that bank that charge
experienced conservative and successful business
that it is strong institution.
There other important points by which you de-
the character of the bank with which do business
these will be discussed the of the Mountain Advo
frher that careful banker will issue
with the matters stated in these articles We expressing
the opinion o the best and most experienced bankers of he
country.