South Bend news-times., 1921-05-27
By John +. Thornton, Jr.
Reprinted from June Number of The American Boy

banking leaders are being form ed,
for here a new idea in banking is
being developed.
A bank. you know, does not diff
FER essentially from a grocery store.
The grocer buys goods at a low
price and sells them at n profit. The
banker receives your surplus money
for safe-keeping He pays you
low rate OF interest for the privilege
OF using n. Then he sells the use OF
your money. for a larger rate OF in
terest. 10 people who need IL and
are willing 20 pay for 10. The profits
go 10 the shareholders.
In the old days a banker was
concerned with only two things.
First. ne wanted. Of course. as many
people as possible 10 deposit their
money with him. And second, he
wanted 20 be sure that he was going
20 receive back the money he loaned
out, because he was responsible to
the owners Of II.
Taking Interest I'm People"
He is still interested in those sides
OF his business. But he has a new
concern. As one banker has said,
IL has been found good business to
take interest in people as well as
from them. In other words. the
bankers OF the country are going
out Of their ways 10 help their
clients 10 grow richer.
1 could mention many instances
OF the rise OF young men in the
banking world because OF their abil-
ity In this direction. But space per-
mits Of only one.
In a certain eastern farming COM
munity there were, a few years ago,
two banks. They were very strong
competitors. II was a red-letter day
when either one succeeded in grab
bing an account away from the
other.
Now, there was in this community
a young man who had a lot of horse
sense. He had decided 10 become a
banker. Instead Of hopping 10 the
city. however. he got a job in one Of
the local banks. He intended to use
this job as a training ground, where
he could gain an intimate knowl-
edge of the practical working OF a
bank before going to a city bank.
1t wasn't long before he saw the
folly Of the competition between the
two banks. They were merely play
ing give and take" with the money
| OF the community. None Of the de-
pOsitOrs was gaining anything from
/ it, OF course. II was natural for
each bank 10 want % secure more
i y ~ a ,
thought that there should be a more
3 sensible method of doing it.
He did a great deal OF studying.
And he didn't cOnfine his studies 10
banking problems. He studied the
community. And out Of these
studies he dug up a new idea for
/ his bank.
There is Just so much money in
| this community" he said one day 20
I the cashier Of the bank. Both
4 banks here are falling over each
other. trying 10 induce farmers 70
bring their business to them. We
have a great many good accounts
already. Why not roll up our sleeves
/ and help our depositors 10 become
richer? II non-depositOrs see us do
/ ing this they have the best argu-
ment in the world for bringing their
accounts 10 US"
That idea was so new 20 the
| cashier that it was several weeks
before the young fellow could con-
vince his superior Of It's worth. But
Ihe finally succeeded, and the bank
rapidly became a new institution un-
der his recommendation and sug-
\ gestiOns.
/ The farmers of the community
were hard workers, and intelligent
But they had no leader. Without a
| single '-by your leave" the bank as
sumed the leadership. 1t organized
a Farmers Forum" Meetings
were held once a month, and they
lwere devoted TO open discussions OF
the various farming problems OF the
community. On the banks recon-
mendation the farmers employed q
field demonstratOr." thoroughly
grounded in the theory and practice
/ OF scientific farming. The fedora
government paid half the expense.
of this soil doctor" He spent hi.
time travelling from farm 70 farm
making soil tests and advising with
the farmers regarding the product'
best adapted TO their acres.
Helped Others-and Himself.
All this. of course. was strictly
community service. There were nC
direct profits for the bank In II. The
county agent looked after all tbs
farmers. whether or not they were
customers Of the bank. And the
Forum" was open TO all. But, JUS
as the young fellow had predicted
il was an excellent business builder
The farmers began 10 transfer theii
| accounts to the bank which wa
Showing the more active interest II
them.
The young man studied CAREFUL!
the reports Of the soil doctor. H
4 soon came 10 the conclusion that th'
lcommunity was becoming run down
The soil had been impoverished b,
wasteful methods; once productiv'
fields were growing up with weeds
and briers.
on the advice OF its young civ,
wire" the bank went into a nev
field. The community was One-Slde'
in it's development. SO the banl
purchased a carload Of pure-bre,
/. cattle. selected by a governmen
diary expert. They were sold 10 tn,
; farmers at cost.
That was three years ago. Today
that community is one OF the mos
. prosperous agricultural districts il
the country. There is only one bank
The business Of the competing banl
|. has been taken over by the live
bank
The young man is president OF tn
enlarged bank Throughout tn
. country he Is looked upon as a lead
} er. \ short time ago an investigs