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Show i --SI2?K OUR PUBLIC POgiifcsttfr IV.-F. A.Vanderli RfftiS I 1 On The Business of Banking Bfi y& Th0 farmor8 ot this nation to coma ,, It' ' "TuTholl djg- must study business. Wo must, as a 1,. lle!li bwf ai CW mm:' tho fundamental principles that underlie 11' m&- W U It tc- BBgbMrvj Ub functions to society and Its relation tot.?!1!? , WEmrh' thor Can b n ,nt0,1,Bcnt cPatIonS!mn3UjohnTl m;: standing. Mr.,F. A. Vanderllp, pregdoiJ Zt. Mr8' J 7 City Bank of Now York, when asked "Wk.i hiElT-- ASi Bald In part: i ttnatlbMT 0( ft bW K "Th0 flrst Bnd most fanilar function of i Jfi u jlS BBBBBsk-ll that of Sathcr,nS UP o ldlo money of a Mb!W cr"hc7maC Ibbbbbb b. small sums and largo, and thus forming & toi!;! '-If Lake Thui ldSL voir upon which rosponslblo persona may " -"T"u hnvo temporary uso for money. It is evident that this makes larw i!!Mmt Blcrl aMt C nggrcgato avallablo for tho employment of labor and the develoiX. VWlm w10 community. But mucli more. is accomplished than tho uie ot tS JKSr. nctunlly deposited In tho banks, for by tho uso of drafts, checki AjWv rTnd notos tho efflclency of money Is multiplied several times over. At,r,it Dyr0nmns business, for example ono of tho great boot packers, may use tm smTui Kato J actual monoy; on ono aide ot its bank account will bo entered th fvM!ia SW UVZ . and drafts It is dally receiving from overywhoro In payment for Bt . mr wi while on tho other Bldo will bo entered tho checks it draws In tarmH lon u"1 cattle, etc., its only uso ot money being fdr small payments, to IsCrld Tuesday otherwise. F .uy If thoro woro but ono bank In a community and everybody taiS &T ,mv nt bills by drawing checks on that bank, and ovcryono receiving a check l-E- 1 y R free dlately deposited It In tho bank, tho amount of money In tho bank tI1iKj0U b - would not chnngo nt all and tho enttro business of tho community vouIbbT n n settled on thu books of tho bank. And tho situation is but slightly ctilL nd lr8- V when thoro aro sovoral banks, for thoy daily exclmngo among themiehjiWt In1"18 "" tho checks they rccclvo on each other, which practically offset thtDKiK. although tho small balances aro paid In cash. This Is called 'cleartnc H: 7 In overjh largo city thcro is a 'Clearing Houso' whoro repreeentatlTM olHvrk Brown ot banks meet dally to settle tholr accounts with each other. ?" n American A bank Is constantly receiving from .Us customers, particularly thoss tiLa nro shipping products to other localities, drafts and checks drawn on uHnt Misses Errna In other cities, which it usually sends for deposit to a few corrHpotEme Mlcr ?f banks In tho central cttlos with which it malntnlns permanent accootttE la this city this way theso scattered credits aro cbnsolldntcd and tho bank draws oT Z theso accounts In supplying customers with tho means of making ptjmgWiajamln "'HJ.' nwny from homo. As ench local community sells and buys about the uKrscl hm0 amount abroad In tho courso of a year, thcBO payments largely diet fJMj ihcrc tncy other. It Is evident that tho banks aro very Intimately related to tht tr)V ' and Industry of a country. Tho banker la a dealer In credit much tnoteiH nhoico Ov a denier In money, and of course his own credit must bo above question. H exchanges his credit for tho credits acquired by tho customers, and IeS ,,., and Vlo credit for their accommodation, but ho must conduct tho business wlthtS ' , . . vior judgment that ho can always moot his own obligations with cash ondeatMitH W"1 r v This Is tho essential thing, about bank credit, that It shall alwayi t )( 20J "c samo as cash." , l |
