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Show TKE SECRET OF BBT Sili ilfj OBTAIN GHEOIT, OilT HIBS GAN7 Various Meanings of Credit The Way Character Pegets Confic3ence and Opens tlse Way lo Trust Thrift and Honesty the Dcisis of Banking. Tho secret of why some men can iv;uli!y obtain credit, while others are unable to borrow a cent, i:i cl i:.f loscd in lhe. present article prepared by the OonnnilU'e on 1'ublic Kducalion of the American Hankers Association. It tell.-) an interesting story of how a man of forty, of jfood reputation and fair (success, (suc-cess, was nonplussed by his inability to borrow and had to pass ur a srood opportunity. fSO from (ho bank, and paying It off out of savings. When to Shun Debt There are clrcuni.'itances, however, under which ono should never borrow money. Never incur a debt In a speculative spec-ulative venl lire. OF Til 10 I'KOPLE WHO U'KCtJLATIO, NlNKTY-l'TViO 1'IOIt CIO.MT LOSIO. Neither should debts be Incurred to purchase pleasure-giving possessions. Such debts are millstones around tho necks of countle ss families. Progressive banks adhere to tho same (ilaiiil.irds they exact of their patrons. Their business methods must bo beyond P preach. They exclude ex-clude business of doubtful reputation and havo no part in the feverish slrugglu for sudden wealth. Well-managed Well-managed banks are regarded with great respect, ami hold a place of ever increasing iuiiioi tance. Some thoughtless persons criticize banks for not making loans more : freely but it must be remembered that a bank's business is to receive! deposits as well as to grant loans, : and it is tin ivforu the trustee of ' money belonging to others. It must' safeguard its tf.-ixisilont' funds and so control them as to be always ready to return them Intact upon demand. That requires great care in granting ! credits. I I llanlsa are Bald to deal In credit. Tho word "crodlt" has various meanings. mean-ings. When you deposit money, your account receives "credit" for that amount. When n. man borrows money on his note at tho bank, ho is granted "credit." Whon a railroad, a manufacturing manu-facturing concern, a town, or a government, gov-ernment, issues bonds, It uses Its "credit." When anyone buys goods without paying cash, at tho time of purchaso, "credit" la granted. Without With-out crodlt, our present day business system could not exist. Credit Is posslblo only where people peo-ple havo contidenco In each other, and contidenco can exist only where good character exists. Kvery successful success-ful business man looks upon his credit standing as a most valuable asset, and he maintains It by square dealing. To get credit a man must pay his debts, or It soon becomes known he is not of good character and not worthy of contidenco. Those from whom ho would buy refuse to trust him and the hanks decline to grant him credit. Then coino business failure and a long uphill fight to get on his feet again and live down tho past. More Than Honesty Needed Honesty Is not the only factor Involved In-volved in credit. For instance, Mr. Jones, a man of forty, of excellent morals, who has enjoyed a fair income in-come for many years, sees an opportunity oppor-tunity to purchaso a business. He requires financial assistance. He calls on a banker and asks for tho necessary neces-sary credit. The banker asks the nature na-ture of the business, what It will cost, and what Mr. Jones can command in ready money, or other resources, but learns that ho has no money or property prop-erty of his own. It is clear that Mr. Jones lacks ability to manage his affairs wisely, lie has not had enough strength of character to save money l y adapting expenses to income, and therefore has not proved that he could makj financial finan-cial progress. Moreover, if men do not invest some of their own money in the business they usually lack incentive in-centive and become easily discouraged. discour-aged. It would be unwise lor anyouo to assume such a financial risk, and Mr. Jones probably would fail to get credit from the bank. He must give up his opportunity to some one else who has saved money. Banks aro public servants, but that does not obligate them to serve those who are unfair In business or lacking lack-ing in the great principles underlying underly-ing success. To be known as a careful care-ful and thrifty person is the best assurance that the bank will extend financial help when needed. Many people think that ono should shun debt like the measles. They fail to distinguish between wise and unwise debt. It is wise to use credit, that is, go Into debt, to buy a home. Such debt encourages thrift. A student stu-dent may wisely borrow money needed need-ed to complete his education. It is an Investment that should pay dividends divi-dends in greater success. Another wise use of credit is borrowing to buy good bonds, such as Liberty Bonds, paying $20 down, borrowing |