Evening star., 1923-12-31
JOHN POOLE SEES
GOOD YEAR AHEAD
Local Financier Explains Duty of
Banks to Every Com
munity.
BY JOHN POOLE.
President FederaI-America
National Bank.

A bank should stand squarely be-
hind every legitimate business under
taking, give sympathetic hearing and
every reasonable assistance to per-
sons of integrity and thrift. Through
its advertisements, printed matter
and by word of mouth it should
strive to educate the people Of a COM
munity in all matters financial.
T. No community is really healthy un-
less its citizenship is industrious and
thrifty. A bank, therefore, in its re-
1ationShip to the community should
teach the value of. and encourage,
thrift; 1t should give sound advice to
those who have saved, aiding them in
the selection of proper investments;
ii should cooperate with worthy citi-
zens endeavoring to establish them
selves in business, giving such aid as
is consistent with sound banking
principles. Young men should know
the factors of credit and the func-
tiOnS of banks.
business Insight Needed.
To meet all these requirements, no
man has greater need of a deep,
broad insight into business in all its
phases than the banker. No man
the best way to conduct the various
kinds of businesseS-none has q
greater need for a thorough under
standing of the most approved prin-
ciples and methods of management,
than the banker. He is a student Of
human nature, coming in contact, as
he does, with people of all sorts of
temperaments, moods, ideas and ex-
periences. 1t has been said that ma
ture doesn't cast from molds. She's an
two things are produced exactly
alike. Even her trees never bear the
same number of leaves. Likewise,
nature puts dab of individuality in
everything she makes, especially
man. Thus it is seen that a banker
has large responsibilities in the mat
ter of sizing up people, helping those
who are Industrious and well-mean-
ing and protecting his institution
against the unreliable and unscrupu-
Ious.
Banks regard personality as one Of
the important factors of credit. In
deed, banks will not deal with any
one whom they cannot trust for hon
esty. integrity and ability: To all
persons of integrity and thrift banks
owe their support, for they are the
builders of the town and the nation.
1t may, therefore, be interesting to
know some of the things which are
taken into account when people seek
to obtain bank credit.
Bank Credit Defined.
buy with the promise to pay. 1t is the
full measure of business character"
and achievement. Nothing Is more
important than good character"
for it implies right intent, intelligent
motives and desire to benefit oneself
by benefiting humanity. In appraising
d credit risk bankers give first consid-
GRAFTON to character" They want to
know that the borrower is honest and
dependable: that he plays the game
squarely; that his reputation Is good.
Men of good Character who borrow
money know what they are going to do
with it and how they are going to pay
it back. This thing we call character"
represents the moral excellence OF a
man. 1t is that quality which makes
his word as good as his bond.
Capacity" is a considerable factor.
What Is the borrowers capacity" or,
in other words, his ability for success
fully managing the business in hand?
mentally suited to it? Is the enterprise
q new and untried scheme? Is 1t haZ-
ardous and experimental? Do tho
chances for profit warrant the credit
risk? The borrowers ability, "capac-
ity." fitness and the nature of his busi-
ness are things bankers must satisfy
themselves about before granting credit.
Still another factor is capital" 1t
is necessary to know the financial
able source Of information is obtainable
from the borrower himself. Therefore
financial statements showing in exact
detail all assets and liabilities, together
ith facts relating to insurance, volume
of business profit and loss accounts and
other supporting information, are
-souSht by the bank.