The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1932-05-14
And Thus A Story

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I knew very little about indus
trial banking, and what knowl
edge I had was confused with
IDEAS about the small loan banks
But did know that the two
industrial and small
.oan banking, made up the ma
ions seventh largest industry
from the standpoint of capital in
1estment. 1t was the president
Of the Southeastern Industrial
Bankers, Inc, Mr.. Paul v. Rogers
who enlightened me on industrial
banking, for my stick and hac
gone to his offices to find out
about the recent opening Of the
Clarksburg (W. Va branch o.
the institution, and thus a story
He said:
MANY persons confuse indus
trial banking with the work Of
the small loan banks. They
are, in reality, two entirely diff
ferent things. The small loan
bank will lend money on auto
mobiles, or collateral Of q
similar nature, at an interest
rate of per cent a month.
"Our service is offered at
regular bank rates of interest
on loans from $50 on up, and
is taken on a note.
THE LITTLE FELLOW
"Our interest is in the little
fellow, the man who has no
banking collateral. When you
consider that approximately So
per cent Of the population Of
the country falls into this
category, you can realize our
limitleSS field Of service.
"COnsequetly it is quite simple
to see how we have, in the
year and a half Of our eXis-
tence, grown to six branches,
the last Of which is Clarks-
burg.
Previously they had been
established in Washington, of
course; in WayneSbOr0 and
COvington in Virginia, Charles
ton in, West Virginia, and in
Baltimore. But we do not in
tend to stop where we are.
1t is our desire to have as
of these lOa bakS Servig
the entire Southeastern area
of the country"
I nodded.
"YOu are filling a tremendous
need at the present time,
almost a mass production need"
DIRECT OUTGROWTH
"That is the purpose of in
duStrial banking, and that is
the principal reason for its
being.
During the past decade
mass production overwhelmed
the entire manufacturing and
producing centers of the cOun-
try. Industrial banking, being
mass financing, was a direct
OutgrOwth of mass production.
It was neceSSitated by the need
of absorbing the mass prOduc-
ton.
1--WE enable the small man,
the small Garner who cannot
afford to put out a lot Of his
own money at one time, to
borrow it from us so that he
may have the things necessary
to living in this age, and repay
us in small and convenient
monthly payments at interest
rates no higher than he would
pay at ay bank, had he the
proper collateral to go to them"
felt that I had gained a little
knowledge, and wanted to see Il
had gained it correctly.
"YOu offer, then, a public
service that amounts almost to
a utility"
DO NOT LOSE MUCH
That's right"
But isn't there a chance Of
not recOllecting the funds you
put out, and failing?"
81 would say no. Some funds
are uncOllectable, but since the
vast majority, the majority by
many, many millions of people
Is honest, and makes a sincere
effort to repay their debts, they
more than serve to cOnterbal.
ance the man who has no re-
.Spect for himself of his credit
and standing.
"And then, you see, our aver
age loan is so small, that when
we do lOSe-which is so seldom
we don't lose enough to matter
very much" The small loans
prevent the impairment of the
original capital"
"YOu must be busy. But I,
would like to hear more about
all this. May l return sOon?"
Certainly"
I rose to go. my stick swinging
for the open road. But we shall.
return.-R. j. w.
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