The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-11-20
Oklahoma Is Improving
Financial Conditions,
Tulsa Banker Declares


,aaent resume in one OF the
leading financial papers OF the coun-
t-y on employment, gives us the
, following Information;
"Eypry week that goes by sees
souc Increase In activities. Mills
spd fag,0ries that have been Idle
f,r months. have been starting up
,acaIn Tho problem of unemploy-
mont Is not quite 40 keen. IL IL
certainly gratifying that i,rgc num-
bars OF people are at work. Two
things are thereby accomplished
a larger volume Of operation tends
10 reduce costs. and the Purchasing
power rt those re-employed is in
creased
n les also reported that a large
number " unemployed from the
cities have found their way into the
uraI communities and have become
PRODUCERS instead of consumers and
have thus relieved the unemploy-
meui situation TO d very great OK
tent.
A great campaign has been car
rled on over the country urging the
people 20 continue their savings and
deposit them in the savings banks
Of the country. thus placing into the
channel Of trade aud commerce the
unemployed, wealth OF the country.
Credits.
You gentlemen are probably as
much concerned about credits as
any other one sfbject connected
With banking. Let US analyze for
moment the term credit" In
political economy this term indi-
Gates broadly the confidence which
Is reposed in the ability and pur-
pose of men 30 meet future obliga-
tons 10 Is defined by an eminent
economist, as Permission to use
confidence OF trust In human nature
and the term embraces many opera
lions in which the human element
plays part. Credit Is made pos
s!ble by thrift, and It hps been said
that credit is the channel for trans
iering capital. Banks play an i'm
portant part in the extension Of
credit, In fact banks may be called
the reservoirs OF credit.
Unemployed wealth is concentrat-
ell INTO the banks OF the country,
and through them this wealth is di-
rected by loans or credits into chan
helS OF trade and commerce. II is
brought together In large and small
quantities from all classes of people
VINO do not Immediately need it, and
WthOut the assistance OF the banks
uado and commerce would be car
ned on largely by sale and barter.
credit is not capital. Credit does
not produce wealth. Credit draws
out wealth from its hiding places
and harnesses 1t and puts II into
enannelS OF usefulness, hence
country IN which credit is highly or
ganlIed will have n higher produc-
I'VE capacity than one that is not
hlghly organized.
The Initiation of credit is danger
Gus An automobile driven at tho
tPte OF sixty or seventy miles an
holr Is more likely to have an ac-
!, tidrnt than a lumber wagon am
oung along at the rate OF four or
I'VE miles an hour, but should we
BECAUSE OF the possibility of this ac-
Vllent refuse 20 progress and use
the automobile or should we 20
UacN 10 the old time horsecart and
Shay The proper method would be
/ use the wisdom of man. in direct
ing credit into the right cinnels, and
prevent the disasters that reck-
4, NN handling of credit will surely
y oElng TO the country
lod. the bankers Of Oklahoma
nave a distinct duty 10 perform.
IPoh your Judgment credits are
ssllner extended or refused. You-can
uo great deal to stabilize the bust
neS OF YOUR community by calling
we attention OF the merchants, bust
neS men and farmers with whom
you do business, to the fact that
SeuIt Is not capital and that credit
san never take the place of capital
Snu mat II is only production Of es-
lual commodities and by thrift
,na' clplidl is created. and that a
n9h Who builds his business on a
iSlSe foundation with credit, is liza o
e 70 Uud himself upon stormy
a winch VIII ultimately land him
on the rocks.
me Causes of Failures" as com
pS,u uy the various credit agencies
the United States give the causes
la!luIe as follows:
IL, L. OF capital, 32 per cent
T"'Petthce .,... 33 per cent
VHP'llehte ..r... 1-2 per cent
'piouS other causes 30 l-2 per cent
49, GU can see that the lack of capi-
' or rather the misdirected use Of
n,t was the direct cause of ap-
p,,soA'mately one-third 0f the fail
49, es IN the United States during past
son ana u you Will take this les
nome TO yourselves you viii be
eolhs your business friends and cu .
yo,, Y,,'oIs a profound benefit. II, before
hs e@tshd them credit, you analyze
sra Nn"nHiai condition seriously.
So,n @ u you "a termine upon mvesti
h,on lhat ,ney are operating their
n uess upon a line OF credit that
no. excess OF what they are en-
SSea To, you should deny them the
credit II your bank.
nahbeIs must advise and counse
~" lh'lr customers and promote
~ business interests Of their com.
sra sr"'y' but the funds OF your bank
~ not your owni You are Islmpl,
us'oulan or trustee Of these fund.
p,., ammo, allow them To hs
tSs99 IN any kind OF propagation
mar, - even tinged with the ele,
HOh's Of gpeculation.
M Local Conditions.
f,r,e HHanclal condition OF tn,
shers IN the eastern part Of tn,
tbs al his time is not the best. IL
wb..fst nfst place there was a shor
exira crop and the oat crop was no
besa seua, 4 large portion o
aKeS III, elops we're destroyed or dam
IN very materially by spring rains
hs,si.any cases the oats sold fol
Of enough to pay for the cuttin,
hsurne grain, the threshing an;
OF ing 10 market, 20 say nothinl
Tse production OF the crop.
l. ths, cotton crop II the shortes
we nave had in al vaars OIL,