Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-03-19

local banker are usually confidential
in nature and are seldom spoken OF
either by the banker himself or the
object of his aid. On the other hand,
the disgruntled borrower or that in
dividual who has been refused loan
which would constitute an unfortunate
investment for the bank, is usually
might vociferous about the matter,
giving i'm most instances very biased
version of perfectly proper bank
transaction. The local banker natur-
ally can say nothing about the matter
reason that | would impress upon you
not 70 believe too readily stories of
mistreatment on the part of your
local banker.
Many people have a tendency to
lack faith in a local institution mere
L. because it is local, and feel finer
building in a bigger town spells
strength. The exterior or equipment
of a bank means nothing. The
strength of a banking institution is
located upstairs under the hats of the
men who manage it. The gray matter
in a mans head works no better in
marble palace than in a remodeled
store, and it is quite likely that your
local banker, however humble his
bank building, is just as able as the
banker sitting on throne in a gilded
cage in the city, and it is almost sure
to be true that your local banker will
understand your problems much better
than the consecrated person in the
larger town.
Bear in mind that the local banker
actually incurs a large loss in many
of the ordinary transactions carried
on with you in his daily business in
tercourse. The small checking ac-
count is in many instances an actual
loss 70 the bank in view of the fact
that the banker is obliged to furnish
all the overhead connected with the
handling of such account while he is
unable to ever loan any large proper
ton of the money so deposited because
of the rapid movement of such funds
in and out of the bank. The short
time small loan is usually loss to
the bank. The overhead and work in
connection with these items eat up
all the profits that the banker can
possibly hope to make from the small
sum collected for this service.
when the local banker puts a rea-
Sonable service charge on small
checking accounts and makes a rea-
sonable fee on small loans, do not
have tendency to complain. In near
ly all cases it is perfectly legitimate
charge and the only reason that it
has not been imposed for many years
past was because many banks were
quite profitable during the recent per-
iod of initiation and did not need this
profit and had grown accustomed to
presenting this service to the public
as a present Now conditions have
changed. Bank profits have grown
smaller and it is necessary for the
local banker to charge a reasonable
price for his services.
Realize that the local banker is the
best friend your community has and
rest assured that it is very essential
that such a necessary institution be
placed on a profitable basis. The best
safeguard you can have for the local
bank is that the bank is making a
real profit. Banks are exactly like
all other lines of business, they must
make money to live, and every sensi-
BILE citizen interested in keeping a
good bank in his community, should
heartily second the efforts of the bank
to show reasonable earnings. That
same citizen should work consistently
to create favorable public feeling
when the local banker installs these
reasonable charges for his services,
which have been so long donated.
The banking laws of your state
have been carefully built with due re-
gard for the experience of other states