The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1923-03-08
THE STRENGTH OF
YOUR BANK


YOUR BANK
1t seems to us the strength an(
security of bank depends primaril!
on three thingS-the amount Of
capital and surplus belonging to an6
kept sustaining the institution, the
wealth and loyalty of its depositors
and the character and horse sense Of
the people of the community.
Explaining what we mean by each
of these, the amount of capital and
surplus belonging to and sustaining
the bank, is of course, the amount
put into it by the stockholders to be
used in its operations. If a bank
bank starts with 100000 and in
creases the volume of it's business
and the people of the community in
crease the volume of their business,
the original capital may be sufficient
while times are good, but when bust
ness conditions tighten, and the de-
positors have to, check out more of
their money than usual and reduce
the balance lying in the bank, then
the bank must increase its capital or
it will not be able to make so many
leans and still keep safe margin of
reserve in the bank for daily de-
mands upon its cash. Prudence re-
quires, and the law directs that a
certain percentage of banks capital
shall be kept in the vaults in cash
to meet emergencies. For instance,
it may happen that several mer-
chants and some automobile dealers
ship in carloads of goods at the same
time and heavy remittances have to
be made to the manufacturers on the
same day. A good many people
might go in to have checks cashed
that day, and it might happen that
fewer people than usual would go in
and make deposits at that time, and
the funds would run low. Exper-
fence proves that it is best for all
concerned, if the bank keeps up that
standard reserve required by law, for
the safety of the bank and for the
good of the community whose bust
ness depends upon the bank to keep
all financial deals connected with |
cash at the moment of demand.
The second item named as contri-
buting to the security of a bank,
wealth and loyalty of it's depositors,
refers of course, to the people of the
community being rich or poor,
thrifty or careless of their incomes
and of savings Some communities
are made up of people who always
aim to put away part Of their in
come; people who never feel satisfied
with themselves unless they have a
bank balance ready to draw upon if
the unexpected happens. There may
be sickness or death or an accident
or something that calls for ready
cash in hand without a moments
casting about to see where it is to
come from. A bank carrying the de- ,
posts of such a community is always
stronger and safer by reason of this
characteristic of its people The OPP !
posite characteristic is the tendency
to be uneasy and anxious to do some .
thing that costs money, so long as :.
there is money in the bank to their .
credit that might be spent. Some
people are never so contented as
when they are broke. Let them
acquire dollar or hundred dollars y
and they are all thinking about it till :,
It is spent for something, and if they =
10 not need anything they will take 2
trip or go to show or get I'D a =
,arty or do something to use it up, =
Is If to say, 1--WE might die tonight, q,
nd in that case we should miss the y
hance to spend it, g
The third item on which the q,
trength and security of bank de- w
ends, character and horse sense of w
he people, might be termed lack of
haracter and horse sense A gossip NJ
ng community is not a help to a :
ank, but is a liability, and the more I'll
osslps there are in the community Al
ne worse it is for a bank and for
very other worthy institution or an
erson. Some communities have AZ,
Drinking of strong characters in it Ia
no are ever ready to brand gossip an
false, and gossips get so they fear Nv
lie rebuke of such persons, and they
ct out OF the habit of starting RI.
cries that are not true. If a COM ev,
unity has large percentage of 90
sople who are always ready to
stem to an evil report, who go and Mr.
'e II 1t Is true and then go right tbe
ick and confront the gossiper with
rebuke for his falsehood, then the I'm,
'ssip must vanish. If, on the other -, .
md, people tolerate evil reports and tir,
Ierate the gossips who start them az
ID those who repeat them with the mo
elude, "They say" bank is never ha
safe in such community, nor is
ythlng or anyone else so safe as in for,
other kind of community. Bin Ri,
ne reason that hank is injured Boy
false reports is that somebody Mr..
10 believes it, may go and with Mr..
aw his deposits, and put the money and
a place that is not so safe That Mrs
akens the bank and reduces its hon
ility to take care of the legitimate ing
EDS Of commerce. 1t encourages evel
rQl9rS and hO1dTnc haoouca fba CORY