South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-04-25
FRED n. SMITH IS
K|WAN|S SPEAKER
MiShaWaka Banker Discusses
Banking Business at
Weekly Luncheon.

Fred y. Smith, as oral booster, de-
livered an interesting talk at the
weekly luncheon of the Kiwanis
club at the Hotel Mishawaka Wed
nesday noon. About 80 guests were
present. Fred Frueh was the silent
booster. Mr.. Smiths talk was an
absorbing resume or the banking
business. He said in part:
"A bank is a credit factory;
money. the raw material, is collected
and manufactured into credit. This
is its chief benefit TO the community
at large. 1t creates credit and
makes it effective by loaning the un-
employed funds Of the community
The public trusts the bank on the
strength of its capital and the repu-
tation of its management for integ-
rity and business judgment.
One Time Side Issue.
eat one time banking was a side
issue and was incidental TO other
business. The famous Chemical Ma
tional bank of New York was origin
ally a banking department of the
New York Chemical company. The
Farmers Loan and Trust company
was the banking end Of the Farmers
Fire Insurance company.
THE most notable case is hat OF
the bank of the Manhattan COM
pany. which was chartered primarily
as a water company, but developed
it's banking functions much more
rapidly than it's water works, and at
present is one of the large and in
huential banks of New York city.
but the original we'll and the tank
on the roof remain. For 80 years II
was a water company, and for more
than a century il has been a bank.
The art in banking lies in the
knowledge gained by experience and
good judgment as to how much re-
serve must be kept on hand and the
ability to keep its assets liquid
that is, running all the time so that
rs funds are withdrawn funds will
De received. This makes a safe
bank. If too large a proportion Of
cash is on hand the profits will be
less; if too little an unusual demand
will make necessary sacrifice of Sc
curities or the calling Of loans.
Ninety Percent i'm Checks.
Some banks during the war
period of 1914 had as high as 81
percent of deposits in cash-a very
large Improbable amount, and
which proved TO be entirely unnec-
essary. II is estimated that fully 81
percent of transactions are done
through checks. Consider for a mo-
ment hat the total cash in the banks
of the United States is $1,911, 900, 900
and compare this with the fact that
the first Liberty loan subscriptions
amounted TO more than $4,000, OOO,-
600, the second loan was issued TO
the amount of $3.SOS. 900. 900. or a
total of over $5,SOS, 900. 600, approxi-
mately three times the amount of
cash in the banks.
"A bank is merely an aggregation
of men and it a be no better than
the men behind il. They must be
men who will inspire confidence.
They must have made good and bear
a reputation for honesty, integrity
and business prudence.
Conservative banking does not
mean timid banking, and the banker
with real conservatism will be the
one who will be in the position OF
always being able TO accommodate
the reasonable requirements of his
community.
Tells of City Banks.
Il cannot close without "A word on
Mishawaka banks. and their steady,
strong, consistent growth.
ETH, -
Mishawaka banks in 1908 were ST.
12S, 600; 1910, $3.50, 600; 1912. ST.
, 9O4, 600; 1914, S2,171,OOO; 1916, So
ST., 900; 1917, 1929. 900; 1918. So
, 4S2, OOO.
These figures show a total in
/ crease for the 10 years Of over two
million dollars.
The success Of the Liberty loans
have depended very largely on the
! banks of the country, and Misha-
waka's record is one of which We
may be proud. Mishawaka sub
= scribed 10 the first Liberty loan for
> $25l,0O0; 10 the second Liberty loar
for S425,0 600, and at the close OF
business yesterday had taken Over
$450,0O0 in the third loan; a grand
: total Of $1,156.OOO. You will agree
: that it is something for each Of US
to be proud OF.
? During the usual financial condi.
tons Of the past year u banks have
J, never failed to maintain their policy
. of extending accommodations the
. same as usual. 1t also is interesting
to note that while Mishawaka PEG,
: pie have subscribed and paid fol
: Liberty loans to the amount OF 1925.
= 600, its bank deposits have increased
100000 during the same period"
WELL KNOWN CITIZEN
: M0T0RS I 260 NALL &C