Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-12-15

the savings are gone-and they are
perhaps being helped publicly or pri-
vately to get along-can Of course
under such conditions-that Is, at any
rate. not money. They are waiting
for work and the sooner they get 1t
the better. Then their opportunity
for saving, for building up a sum
with which to purchase home or to
wipe out the mortgage comes again.
And that opportunity will be a most
welcome one.
In talking present day saving. the
laying aside for rainy day and liv-
ing within ones income, it is natural
that that is more for the consump-
tion of those who have jobs and in
comes.
In this connection a magazine on
banking recently published an article
entitled "A Day of Reckoning" in
which many good and hard facts are
brought out. 1t deals largely with
banking practices but in it is les
son for all of us. for while money is
not the greatest in this world, it may
be called necessary evil. and know
ing how to use it is good for all.
Being too free about going into debt
has been an ailment of individuals
and the government and while banks
are in business to make loans this
article warns that sooner or later
the debt must be paid" The article
follows:
Hardly week goes by but bor-
rover whom we have requested to
make reduction on his notes asks:
What difference does it make to the
bank whether | reduce or not SO
long as l pay my INTEREST,"
The question is fair one. They
know they have values back of their
note to protect it, They pay the in
terest promptly when due. And the
bank is in business to make loans.
The money might just as we'll be
loaned to them as to some other per-
son. 1t sounds so logical to them that
the question is justifiable.
But it is a one-sided question for
the reason that it does not take into
consideration the banking standpoint.
Every bank is in business to ex-
tend its sphere of influence to as
many people as possible and with
safety. No bank should make loans
in perpetuity run for as long as
the borrower sees fit to carry it.
Every loan should be on a liquidating
basis that will see it paid in full
within a reasonable time.
IF the assets of bank were fixed
and it loaned all its assets to a few
people who continued to renew with
out reductions, the bank would soon
be at a place where it could make no
more loans until its borrowers paid
their notes or reduced them. But if
all the banks borrowers paid some
thing at each maturity. it would give
the bank revolving fund to help
others as the fund grew in size.
But it is not alone from the bank
ing standpoint that reductions should
be made at each maturity. 1t is a
good way for the borrower to get out
of debt. There is always a day of
reckoning.
Nations, states, municipalities.
| corporations. partnerships and indi-
viduals are all ruled by one out
standing fact: All must live within
their incomes or there will come a
day of reckoning. Nations may bor-
row, but sooner or later the debt must
be paid. The same thing is true of
all others.
ITO get out of debt a start must
be made. The easiest and quickest
way for the individual is the Install
ment plan. Make reductions on your
note at the bank each time it comes
due.
1T does make a difference to the
| bank whether a man reduces his note
or not. 1t does make a difference to
the individual whether he reduces or
not. 1t is the simplest kind of good
| banking for the bank to expect it,
and the simplest kind of good bust
ness for the individual to want tO