Phillips County herald., 1923-03-08

OF these, which make mighty II
The bank plays such an essential
part in the life Of every community
that. t.every one ought to have . clear
conception Of what 1t Is. and why It
goes hand in hand with human prog
ress. One Of our large city bankers.
whose boyhood had been spent in .
small town. was recently telling some
friends about his early ideas con-
cerning banks. To his youthful mind.
the town bank was merely . larger
model OF the small dime bank he kept
at home. He believed that the larger
bank was Just q good, safe strongbox
in which people could deposit their
money. Each day the boy saw people
leave their money in care Of the
bank. the duty Of which he supposed
to be the protection Of the money un.
I'll II was again needed. when the de-
positors could draw Il out.
Very soon certain things began to
puzzle this small boy, for he knew
that the ofncers and clerks Of the
hank were drawing salaries. One day
he asked his father some questions
about the hank. The boys hrst ques-
tion was: Father, II q man takes
. hundred dollars to the bank today.
can he 60 to the bank tomorrow, and
draw It all out again?" Every cent
Of IT," said the father. "Then," said
the lad, II want 10 know how Q hank
can make any money for itself. and
pay salaries and other expenses"
The father gave the following an.
swer:
when our bank was organised.
the gentleman chosen ~ presi-
dent. because he was one Of our
leading business men. asked me %
bay some shares Of stock At one hun
dred dollars each. ] had hoped for q
long time that . bank would be or
ganised In our town. For years. the
men who were operating the iron
mills had to send to . nelghboring
city for money to pay their employees.
: Our merchants had always had din.
Guilty In taking care Of the money re-
ceived In their busipess. and there
had been NO place to care for the peo-
pies money. was glad 10 buy some
NJ the shares.- In . short time. the
president told me that hfty thousand
dollars had been paid IN BY Different
people Of the town buying shares.
This money made mp what 10 called
the capital stock. The capital stock.
IN addition TO furnishing money with
which 10 start hank. also serves ~
q protection TO all those Who place
their money ON deposit.
How Banks Operate
"The bank opened for business and
room deposits came In from mer-
chants. manufacturing plants. farm
ers. churches. lodges. and other or
ganizations. borough and township
treasurers. wage earners. and women
and children. until at the end Of the
first month about one hundred thou.
sand dollars had bsen deposited. The
bank then had nfty thousand dollars
supplied By its stockholders and one
hundred thousand dollars which be-
lonesd 10 its depositors. or . total OF
one hundred asd nfty thousand doi.
lars. The capital stock and the de-
posits are referred 10 a. liabilities Of
. baak.
Nov iistsa closaly." continued the
father. "vvklle u b tsve that the -.
pssitees esvid o y ths bsNk the
very nest esy aRd draw ewt oil they
hsd prsvlsvsly pvt n. sspssseNes hes
shswm thst thlo b Reves deNe By ell
depssissrs q the came time. fhsrs-
fore. the hank dees ~ assl . keeD
on hand ali the money that b brought
IN. but only ssoush 10 pay sAsss vhe