Show DISPELS MYSTERY OF BANK BUSINESS country countr y banker gives simplified picture of how a bank works to help other peoples business COUNTRY banker recently pre spared A pared the following simplified statement for his neighbors on lust just how a b goes about helping them it Is the most important part of a bank s business to lend money ot of all the money deposited in a bank the law requires that a certain percentage be kept on hand as a reserve to meet the demands ot of depositors it Is the business ot of its officers to lend the bal ance conservatively and safely the loans of 0 a properly managed bank are invariably made to those it believes are able to repay and always on condition that they be repaid at a stipulated time the promise ot of an individual to repay a loan to a bank on a certain date Is as sacredly inviolable as the prom ise ot of a bank to repay its depositors on demand or in the case of a certificate ol 0 deposit on the date pitfalls it tails due when it comes to be known of an individual that he always pays his credit Is established and his bank Is always glad to extend him needed eions A well managed bank never capt industries that Is it does not place its loans in fixed form but puts them where they are to be used for temporary requirements and where th they will be taken up at the time sped T fled how a bank lends it Is not the function ot of a bank to become a partner in industries nor could it be legitimately done with the money ot of depositors its loans must be kept in liquid form that is repay able in cash at stated intervals A bank must use the greatest dis crimination in making loans A stranger cannot expect eions it Is customary for the borrow er to make a statement ot of his financial affairs which Is kept in the banks bank a records it is a punishable offense to make a false statement for the pur pose of borrowing funds naturally in their dealing with the regular depositors ot of the bank its officers become well acquainted with their characters fand and their resources and are thus in a position to determine how large a line ot of credit each one la Is entitled to that Is one of the great advantages of being a bank depositor the man who knows how to get into debt wisely that is who borrows money with which to make more money through legitimate enterprise la Is the borrower whom the bank Is looking tor for by the frank interchange of opinion and a tree free discussion of various projects the borrower Is often guided and helped by his banker in order to procure a line ot of credit at a bank three things are important 1 A statement of assets showing a basis ot of credit in the way ot of invested capital or collateral ot of sufficient value to cover amount of loan or 2 an endorser whose credit Is es at the bank and 3 average deposits of a sufficient amount to justify the extension of the desired accommodation |