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Show iw. B. 1'iuJhis Discusses E:nki: Pr:b'c.T.s As R:!;!cd To Fiic l -A w . r.. MU IIN , lT.-.:-!.-i:t Bank of t. .r...r.r ! ' ! -.-.:' r:-.. j :t ar.-l 1-r. ! it VJ I i'V I b-i-:t: : t. f:'-'- T i -!-r.it!r.4 '- ,.r:-l i-n--::-::-' t w:ll ("ii!-.l I ;iri 1 ,! ;i ih.- c.-'.n'ry and. yi,M ! -i .me i-,-'..;;-r'.s to the capital in- . . - !-y i K-k!-.. ' i.-rs. !. r bar.k.-r wi.r'hy f the rame U .-a.-.-r to make " : n -1 investments, to bi.:M i.p hi- town ar.-l count.-y. at the -,n:y time he realizes his va-t in. -capable obligations to hi depositors and siix'klioMers. It is their m,.:i.-y ami l.e niu.-t guar,', it as he would his own. A bank is just as strong as the judgment of the men who operate it. A good bank loan is beneficial both to the borrower and the lender. Their interests and final purposes are identical and one cannot suffer a loss w:tn-out w:tn-out it being felt by the other. The banker is simply the servant of his depositors and public. He is bound hy rigid rules of law and ethics, and must keep the depositors de-positors money where he can got it any time, under their rules and laws. Caution should be used in lending lend-ing money for speculative purposes. pur-poses. When business is running high prices are at a high peak, it often reacts, and results in having to force liquidation when prices are low and money scarce and works a hardship on both borrower and lender. Banking cannot be learned through the study of books, and theory alone, any more than can farming or merchandising. You must get in and do the work, and get the practical experience. Theories change sometimes before the ink is dry that writes them. Banking practices must change as times and conditions demand. The statement is not true you hear sometimes, that bankers as a group, are opposed to change and progress, that they simply sit tight guarding their own money. The issue before the banker is broader than the mere welfare of his own institution. He knows that his bank cannot prosper pros-per unless the country, that it is serving, thrives. These are some questions that are often asked bankers: Why was my loan denied, when I offered plenty of security? Why should the bank worry if I want to take the chance of losing my property? There are three essentials in making good sound bank loans. Character, Capacity and Collateral. Collater-al. The first two are the most important. Banks are in the lending lend-ing business and want their money when it is due. to loan to other patrons. Foreclosures would soon result, if the bank's money being invested in livestock, real estate, and other investments, could not be used in the banking business. It is therefore necessary for the banker to go into his patron's problems and help him figure out whether his venture is a good one or not. If in his judgment, it would not work out, the loan should be denied. |
