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Show Prize Winning Essays Point Out How Bankings Aids A Community "":,u l-an "e brought i . tween the bank aim "! n the money,. bank in the locality i M to be transferred ere . Periodical settlement. k two banks make such , !: comparatively iex same time there if? e 'H f k of ,oss 07, depositor. I :;. Wherever a bank I, , nblic is able'-: denomination which i, !i adapted for carrying on 'S -mercial operations ofUa, district, in a tow,, w bank, a person may hav !; to use small notes' and large ones. This is h(,,-(Continued h(,,-(Continued ou p,M thf";! Miss Jacobson, Mark Eddington and Gene Robertson Win $15, $10, and $5 Cash Awards Prizes of $15, $10, and $5 were awarded Genevieve Gen-evieve Jacobson, Mark Eddington, and Eugene Robertson, Ro-bertson, respectively, for their essays on the subject, day regards his community as a farmer does his field. He sees around him natural resources, human hu-man and material, which he must develop. He believes that without the bank cultivation would go forward as slowly as in the days when men ploughed with a forked stick, but with a bank there is provided all the modern financial machinery which makes progress more rapid. Money becomes a new form of motive power, "working like steam, gasoline, and electricity, electri-city, to help men to accomplish more with less time and effort. : He is just one example of the many fine bankers in America whose interests and those of his fellowmen are the same. He believes be-lieves that true growth is a result of understanding and cooperation, coopera-tion, so he exerts every effort and employs every facility possible to make his community a place of i beauty and progress. Much of the i industrial development of every : community may be attributed directly di-rectly to the unfailing support and sponsorship of the local banks. "In a democratic land, the bank is a democratic institution because it extends equal security to the commonest layman as it does to the most powerful corporation. cor-poration. Its paramount function is to provide unfailing service to the members of society. During years past, we have come to recognize re-cognize the bank as an institution in wohm, we may place our unqualified un-qualified faith and confidence." bank is able to bring together many small sums of money which independently would remain unproductive. un-productive. Thus this phase of banking increases the productive capital of the community. Another service offered to the public by banks is their advancement advance-ment of money to those who desire de-sire to borrow. When a person wants to transfer trans-fer money from one part of the country to another, it is merely necessary to pay the desired amount to the bank in that particular par-ticular community and a settle- "How Banking Aids a Community," Commun-ity," in the recent state bankers' association essay contest. Miss Jacobson, who won first place, Is the dauhter of Mr. and Mrs. A. K. Jacobson. Mark is the sou of Mr. and Mrs. W. It. Eddington, Ed-dington, and Eugene Robertson is a non of Mr. and Mrs. Leo Robertson. Ro-bertson. The prize-winning essays follow, fol-low, with Miss Jacobson's first : "Modern society as we recognize recog-nize It today, has become a complex com-plex and Intricate function that involves every known phase of human relation and activity. Life during the first stages of man's existence was a comparatively singular sin-gular process, but as man began to acknowledge a responsibility ror his associates, and what we call civilization began to develop, a new social order gradually took place. There arose the need, among other things, of a common medium of exchange which has developed into our present monetary mone-tary system. "As the commercial field expanded, ex-panded, the vast sums of money Involved proved to be extremely Inconvenient and impractical, and as a result, a form, of banking that has evolved into our present system was instituted. The necessity ne-cessity for some form of a financial fin-ancial organization was apparent even several thousands of years ago in ancient Assyria, and we have record of the existence of many banks in the Middle Ages. "Their value to the economic world has been acknowledged during dur-ing all these centuries and the modern bank with its innumerable services has become an indispensable indispen-sable institution. They comprise one of the largest and most influential influ-ential businesses in our industrial life. In the United States alone there are over fifteen thousand private and state banks with a total clientele representing approximately ap-proximately sixty thousand depositors. de-positors. "Of the many services extended extend-ed to every money holder, perhaps the principal one is that of receiving re-ceiving money for safe keeping. In addition to guaranteeing its security, se-curity, the bank pays depositors a liberal rate of interest for the privilege of lending sJvings to trustworthy individuals or corporations. cor-porations. In this manner, money that would otherwise remain idle contributes to the increase of the productive capital of a community. commun-ity. "A sense of security and confidence confi-dence has been established among depositors because of the proved prov-ed integrity of the bankers; many of whom are our neighbors and business ability and prosperity of the territory it serves. Thus out- side investment and the increased' prosperity of a community is enhanced en-hanced by a sound bank. (Third Piute) SERVICES OFFERED BY BAXKS AND THKIR VALUES TO COMMUNITY LIFE By GENE ROBERTSON Banking is one of the largest industries in the world, and one of the most important, for the services enter into the lives of all. Every man, woman, and child has a direct interest in banks in some manner. There are more than 15,000 banks in this country today, serving serv-ing more than 60,000 depositors. The large majority of them are small institutions having less than $1,000,000 capital, but their importance im-portance to communities is much greater than their deposits. Banks are useful as institutions of security for the deposit of money. Nearly everyone has had the care of large sums of money and knows the worry which accompanies ac-companies it. A person in this situation sit-uation has the alternative of running run-ning the risk involved in taking care of it himself, or entrusting it to the care of an institution provided for the deposit of money. Not only do banks offer safety as an inducement for money placed in their hands, but they allow interest on deposits. It is this that determines the character charac-ter of the investments in savings banks. Under this system a single personal associates. These executives execu-tives are p'repared to offer sympathetic sym-pathetic and dependable advice to their clients and are in a position to give authoritative information concerning any individual, corporation, cor-poration, or investment about which there Is any inquiry. It is this implicit faith in the wisdom and honesty of our banks that has made them so popular. "The transference of money from one section of the country to another would be an inconvenient incon-venient and difficult matter without with-out the aid of our banks. They have eliminated all the trouble of such a move and made it a comparatively simple process. One is merely required to deposit the desired sum in the local bank and all further negotiations are transacted trans-acted by the authorities of the respective banks involved. "Of primary convenience to the public is the employment of our present checking system whereby where-by a man merely deposits a sum of money to be used specifically for this purpose. He may then withdraw it in any denomination by simply filling in the blanks of a check and presenting it for payment. This is a generally accepted ac-cepted medium of exchange and is especially effective when large sums of money are involved. It can readily be understood why this is preferable to metal currency cur-rency in view of the fact that the latter is so cumbersome and difficult dif-ficult to handle in sums of any consequence. This practice greatly great-ly reduces the danger of theft or fraud. "As a result of long years of experience, the banker is prepared to offer expert advice pertaining to the various phases of commercial commer-cial or industrial life. They have come In contact with every form of business and are eager to impart im-part this wealth of knowledge to whomever it might benefit. They are constantly being apprised of world developments and are therefore a reliable source of information. in-formation. In a world where greed and deceit are rampant, it is especially gratifying to know that there is , one source from which unquestionable truth can be obtained. Our bankers are qualified to advise us and assist in solving any financial problem we may encounter. Often banks serve as a reference for a firm, ad the degree of confidence and credit placed in that firm is ascertained as-certained from the banker's report. re-port. "In most instances, the banking bank-ing executive is one of the outstanding out-standing citizens of the community. commun-ity. He bears a genuine interest in the welfare of the people of that community and contributes liberally to their endeavors. He helps to further their ambitions because he knows and understands under-stands their hopes and aspirations and he realizes that what benefits bene-fits the individual will directly influence the community and his own concern. The banks are often of-ten resposible for many of the major developmets in the cultural and industrial realms. "One progressive banker of to- carry on their operations. Thus the usable capital of the community commun-ity is kept constantly employed. And also the handicap of a relatively rela-tively lack of capital is removed from those who are otherwise equipped to succeed in business. Banks are of unequaled usefulness use-fulness as places of security for the deposit of money. Anyone having hav-ing the care of large sums of money knows the strain and anxiety which accompanies it, even though we have a high law upholding and law abiding country. coun-try. In order to make this security to the depositor doubly sure the national government and the state government provide by laws for periodical examinations into the affairs of the bank to determine whether loans are excessive and if collateral is sufficient upon the loans and also whether reserves bear the proper relation to loans. But the national government goes even further than this it guarantees a deposit up to five thousand dollars in all banks which are members of the Federal Reserve System. This safeguard declares the bank to hold the position po-sition of guardian of the funds of all depositors. By, means of banking the various var-ious small sums of money that would be unproductive if left in the owner's possession are gathered gather-ed in large amounts in the hands of the bankers to employ it in granting facilities to trade and commerce. Thus banking increases capital of our community and nation. na-tion. By the loaning of money to persons per-sons engaged in trade and commerce com-merce they are thus enabled to increase in-crease their capital and conse-I conse-I quently their wealth. Banks offer unlimited service in the transfer of money and credit from one town to the other. Take for example a clothing merchant mer-chant in Springville who purchases purchas-es a thousand dollars worth ol clothing from a Chicago manufacturer. manufac-turer. When the bill falls due to the buyer, he settles by sending the Chicago manufacturer his check drawn on the Springville Bank. Without the exchange service ser-vice the holder of the check would have to send it back to Springville and have actual money sent, or search Chicago until he found a party who owed a debt in Springville Spring-ville and was willing to purchase the check for the purpose of mak- ( Second Place) THE SERVICES OP THE BANK AND HOW THEY HELP YOUR COMMUNITY. By MARK EDDINGTON Banking is one of the oldest forms of institutions dating back to antiquity. As early as 800 B. C. there was a well-developed system sys-tem of bills of exchange, promissory promis-sory notes and transfer checks very similar to those of our own day. The fact that banking was instituted so far back in history and that these institutions have from this date constantly increased increas-ed their functions as society has become more complex, indicates their importance in economic affairs. af-fairs. The precise role which commercial commer-cial banks play in the services of a community is very important. The farmer must borrow money to buy his seed, cattle, etc. The jobber buys goods to be paid for after he has sold them. Manufacturers Manufac-turers find advantage in being able to pay for labor and raw products pro-ducts after they have been transformed trans-formed into completed goods and sold to middlemen or consumer. Hence an interval must elapse between be-tween purchase and payment measured by the length of time required for transportation, selling sell-ing and manufacturing purposes. It is rarely possible that any business man, farmer, or manufacturer manu-facturer can so time his collections collec-tions as to make them synchronize synchron-ize with the dates when his obligations obli-gations fall due. He therefore finds himself under the necessity of transforming into means of payment the obligations of other people due him in the future. The bank goes beyond the mere bridging of time. It places the funds of those not in a position to use them into the hands of those that are. The banks use these idle funds as a basis for supporting loans to those who need funds to ing remittance to his Springville creditor. Banks are also valuable as a changer of currency. In smaller communities if a bank was not present, large notes could not be changed into smaller denominations. denomina-tions. There would be an abundance abun-dance of change in one establishment establish-ment and very little in another. A merchant uses his banker as an adviser in financial affairs. It may pay current debts or collect notes as they become due on the account of the customer. On account of their experience and fitness for handling financial affairs, many banks act in a ju-duciary ju-duciary capacity for their clients. In exercising this function the bank becomes the holder of property pro-perty which it is to use according to the instructions of the trust. The economic service rendered is that of perpetuating the will or desires of those who have property pro-perty either before or after death. Banks exercise a powerful influence in-fluence on the morale of the people peo-ple in the community. Bankers, for their own interests, have a rigid regard as to the moral character char-acter of the one with whom they are dealing. They want to know whether a person is tricky or dependable, de-pendable, whether speculative or conservative, whether slothful or industrious. Banks will make greater advances to men with moderate mo-derate property and strong character char-acter than to tho'se with more property pro-perty but inferior character. Thus the establishment of a bank in a community advances the pecuniary pecuni-ary value of good moral character. A bank with a sound financial status is a good barometer of the |