The Washington times., 1925-03-14
NORRIS SYSTEM
OF LOANS IS
SUCCESS
Plan Banks Now Number Over
100 in Country-D. G.
institution Cited
By RICHARD HATTON.

snrton e q financial institution which
Is RAPIDLY coming to the fore< ano
which shortly is destined TO play
an important part in fananc.ai mat
tiers of this city, especially In re-
iafion to these persons who are OF
limited means, and who nave not
heretofore been offered facilities by
the commercial banks.
The Morris Plan was heretofore
operated in this city by the Fidelity
Savings Company, Inc, but the
gentlemen who are responsible Tor
the destin.e of the Morris Plan
recently came to the conclusion that
Washington rapid growth In the
last few years has more than Justl'
fled the EXPANSION of the facilities
offered by the Morris Plan to the
people of Washington, and, carry
ing out their usual policy Of de-
Weighing inst .tutions n which they
are interested on large scale, they
have recently put one-quarter or
a million dollars new capital into the
bank, and have taken over the bust
ness of the Fidelity Savings COM
pany. and chartered the bank under
the. name OF the Morris Plan Bank
Of Washington, which is still located
ct Thirteenth and / streets north
west. the former home of the Fidelity
Savings Company.
All Separate Institutions.
The Morris Plan Banks are all
separate Institutions. operated under
separate charters under the juris-
dictior OF the banking departments
Of the various States. The one in
Washington is under the supervision
- TTnfko1 Cfofno Troo SIIrU he.
partn1ent.
There are over 100 Morris Plan
Banks In America, and a guiding
hand is loaned to each OF them by
The Industrial Finance Corporation
Of New York. The New York
Norris Plan Bank is the largest Of
its kind. and last year loaned cut
over twenty-four million dollars.
Total loans were made during fhe
year Of 1924 by all the Morris Plan
Banks to five hundred and fifty
thousand people, and these loans
amounted to more than $121 900. 900.
The Washington Morris Plan
Bank has q paidin capital OF $780,.
900 and surplus OF $50, 600. Loans
are made In sums of from $4,000 up
TO 5000 or even larger IL desired,
and the borrower is granted
unique privilege OF repaying his
loan In monthly, semf-monthiy or
weekly instaliments. The primary
purpose OF the Morris Plan Bank of
Washington IS to encourage thrift.
and It conducts a lively campaign
at all times to convert its borrow
ers into savers.
The deposits in all of the Morris
Plan Banks have increased since
1890 from 81, 000,0 900 to $42, 000, ! 900.
The growth Of the Morris Plan idea
ranks as one of. the outstanding
features Of the history of finance
during the last fifteen years In this
country.
Student Got Idea.
The idea was originated by Arthur
J. Morris when he was student at
the University OF Virginia. Mr.
Morris started the first Of the
Morris, Plan Banks In Norfolk, Va.
In 1910 because he believed that the
workman, the clerk, the small
fradesman had as legitimate a need
Tor borrowing money. as did the
manufacturer and the big business
man, but on the other hand, there
was no provision nIade in the fl
nancial system of this country to
take care OF these borrowers.
He founded this idea, which has
had such a remarkable growth,
upon his belief that character, plus
earning power, is the real basis OF
credit, and his belief In this fun.ia-
mental principle has been justified
by the fact that since the Morris
Plan Bank Of Norfolk was started
IN 1910. Morris plan banks through
out the country have loaned out
$640, 600, 900, on which the losses
have been less than one-tenth OF
/ per cent.
Something of the growth of this
idea may be realized from the fact
that the Morris Plan Bank of Nor.
folk started in 1910 with a paid in
capital stock of $40, 900, and the
total resources of the 100 Morris
plan banks In America on Decem.
Der 81, 1924, was over 500, 200, 600.
Best Kind Of Risks.
The best kind Of risks, Mr.. Nor.
ris says are those people who have
discovered what they can do, who
are satisfied in doing 1t, and who
have a steady income. The two
things to be considered in passing
on a loan in Morris plan bank,
Mr.. Morris declares, are character
and 'capability.
The banker declared that an over
Whelming majority Of people are
honest and that almost every per-
son pays his debts If they are in