The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1922-07-29

-, I'LL 10 the sew
time ana expense IS so apparent that
we hardly think Of the Inconvenience
OF early days. It is bank credit that
makes the daily transfer, through the
medium Of checks and drafts, of enor
nous sums Of money throughout the
country possible.
BANKING IS on new and higher
plane today. Bank credit Is trons-
1erreo with the speed Of electricity
over wires that connect bank with
Dank, wires that abolish consideration
OF miles and time in the transfer of
purchasing power.
A modern. progressive bank IS
public institution. serving the com.
munity in hundreds of ways. It ao.
cepts the money Of thousands for de.
post and makes their dollars avail
able for the benefit Of the whole com
muntty through it's known responsi.
bilIty. 1t gathers the idle funds OF the
community and places them at the
disposal Of the manufacturing and
trading element to the profit OF the
city It shoulders the Toad" Of bust
ness. It carries the farmers financial
load from seed time to harvest. The
manufacturer who needs raw mate.
rials for his factory borrows from the
bank, buys the supplies needed, turns
them into finished product, sells. and
with the proceeds pays his note at
the bank.
The progressive banker. with his
knowledge Of the money markets and
OF general conditions, is in a position
10 advise business men on questions
Of financing their business, informing
them where and how to raise the
money which builds skyscrapers and
sets tremendous factories roaring with
activity and prosperity The com
munlty which succeeds in the highest
sense Is one in which the public I'm
derstands the function Of banks anS
uses them 10 public profit, and the
bank that succeeds IS the bank that
assumes progressive, helpful attf
tude toward the community, adopts an
aggressive policy. has a broad vision
OF the city's future and extends lib
eral yet sound credit to its customers
How the Community Benefits
Credit, banking and business are SC
closely associated that unless a per
son understands the fundamental prin
ciple OF credit as a banker applies
them, he cannot appreciate what pro
gressive banks mean to a community
Credit Is too big a subject TO study
here in all its broad aspects. An at
tempt to evaluate the tremendous
benefits derived would be impossible
In such q short article But let the
reader consider the business world of
today without the element Of credit
In the first place, there would be nc
banks, for they are credit institutions
dealing in but one thing, credit, using
money as the basis. The stockholders
would not have invested their money
in the banks and no deposits made by
the public, II the factor Of trust did
not exist. There would be no paper
money. for a Government note is
form Of credit-trust in the Govern
ment or trust in the banks, that the
promises to pay will be kept
Merchants dealing with one another
would have to do so on a cash basis
this basis being metallic money. No
goods could be sold on time The fac
tory owner would not have time to
turn the raw materials into finished
product before paying for the raw ma
terial. The jobbers could not open an
account with their customers, allow
them to put the goods on sale and re-
ceive their pay in sixty or ninety days
from the proceeds of the sale.
Corporations, such as railroads, In.
terurbans. gas and electric corpora
tons and manufacturing companies
could not borrow money for buying
land, laying tracks and buying equip.
ment necessary to operate, by selling
their stock and bonds. Cities could
not pave streets, build water systems
sewers and parks. Individuals could
not build homes and pay for them out
of their earnings.
But why go further? The credit ele.
ment touches all we are, all we &C
complish and all we hope to have
Credit is the backbone Of our finan.
cial structure, the life blood of our
activities as a city, state and nation. |