Indianapolis Times, Volume 35, Number 68, Indianapolis, Marion County, 29 July 1922 — Page 3

JULY 29, 1922

ONE MINUTE TALKS on BANKING By Robert H. Tyndall, Vico President of the Fletcher American National Bank.

[Tills ts the second of • _ series of “One Minute Talks on Rankin*" by prominent jj bank offieials, which will E mn each Saturday in the f Times during the month of I August. “ Banks and Community Development A hundred years ago, the usual procedure lor a merchant in settling an ■ account in a distant city was that of I setting out in j Mimii njLiimmi* P erson by stage i coach - with his ~ hag of coin nec V settlement. The present day mer -•****k, .-Se- j chant> taking ad f'y vantage of all tjf yBL * modern develop L \ h ments of trans Jj portation anc ■Ri; B hanking, simply buys a draft * aRd mails it k ' to any part of Rh tl,e country. He i^H^t***®*; leaves the rest ■* of the transac tion to the several banks Involved. The saving in time and expense is so apparent that ve hardly think of the inconveniences of early days. It is bank credit that makt-s the daily transfer, through the medium of checks and drafts, of enor mous sums of money throughout the country possible. Banking is on anew and higher plane today. Bank credit is transferred with the speed of electricity over wires that connect bank with bank, wires that abolish consideration of miles and time in the transfer of purchasing power. A modern, progressive bank is a public institution, serving the community !n hundreds of ways. It ac cepts the money of thousands for de posit and makes their dollars avail able for the benefit of the whole com inunity through its known responsibility. It gathers the idle funds of the community and places them at the disposal of the manufacturing and trading element to the profit of the city. It shoulders the “load” of busl ! ness. It carries the farmer's financial load from seed time to harvest. The manufacturer who needs raw mate rials for his factory borrows from the bank, buys the supplies needed, turns them into finished product, sells, and ■with the proceeds pays his note at the bank. The progressive banker, with his knowledge of the money markets and of general conditions, is in a position to advise business men on questions of financing their business, informing them where and how to raise the mcney which builds skyscrapers and sets tremendous factories roaring with ! activity ar.d prosperity. The com munity which succeeds in the highest sense is onu in which the public un derstands the function of banks anc uses them to public profit, and the bank that succeeds is the bank that assumes a progressive, helpful attl tude toward the community, adopts an aggressive policy, has a broad vision of the city’s future and extends lib eral yet sound credit to its customers How the Community Benefits Credit, banking and business are sc closely associated that unless a per son understands the fundamental prin ■ oiple of credit as a banker applii; them, he cannot appreciate what pro I gressive banks mean to a community ! Credit is too big a subject to study here in all its broad aspects. An at tempt to evaluate the tremendous benefits derived would be impossible in such a short article. But let the reader consider the business world of today without the element of credit In the first place, there would be nc banks, for they are credit institutions dealing in but one thing, credit, using money as the basis. The stockholder# would not have invested their money in the banks and no deposits made by the public, if the factor of trust did not exist. There would be no paper money, for a Government note is s form of credit —trust In the Govern ment or trust in the banks, that the promises to pay will be kept. Merchants dealing with one another would have to do so on a cash basis this basis being metallic money. Nc goods could be sold on time. The sac tory owner would not have time tc turn the raw materials into finished product before paying for the raw ma terial. The jobbers could not open an account with their customers, allow them to put the goods on sale and receive their pay in sixty or ninety days from the proceeds of the sale. Corporations, such as railroads. In terurbans, gas and electric corpora tlons and manufacturing companies could not borrow money for buying land, laying tracks and buying equip ment necessary to operate, by selling their stock and bonds. Cities could not pave streets, build water systems sewers and parks. Individuals could not build homes and pay for them out of their earnings. But why go further? The credit ele ment touches all wo are, all we ao eomplish and all we hope to have Credit is the backbone of our finan cial structure, the life blood of out activities as a city, state and nation. TRAIN AND MOOSE HIT One Dead and Two Badly Hurt as Result of Queer Crash. PORT ARTHUR, Ontario—Fireman Robert Kramer of Kenora, was killed and Engineer Goodman of a Canadian* National ballast train was severely scalded near Horne Payne, when the train ran into a moose, overturning: the locomotive. LOST LAD IN CANOE Found Sleep in Drifting Boat Five Miles at Sea. BTDDEFORD, Me.—As a riot call was about to be sent for assistance in finding Lawrence Andrews, 22, of Detroit, Mich., a telephone message was received saying that he had been found by a fisherman asleep in a oanoe five miles off tbs coast.

Pe&&inlsiii i

EVERY, crisis the people want to know what the bankers think. We V\ have had numerous calls from business men and individuals who wanted J_ JJ to know what is going to happen next. The public has been anxious to obtain *eCu the bankers’ opinion. The country has been passing through a period of re-adjustment of living costs, prices and wages. But the painful days of 1920-21 are now history. Adjustment of wages and prices to the new level of August, 1922, is necessarily painful and accompanied by disturbances from many quarters. But the progress now under way cannot be stopped. The momentum of its swing and economic signs all say “go.”. New conditions turned the “stop” signal months past and traffic jams on the new highway now seem only of a temporary nature. General business bears a number of scars as a result of the transition, but the new wounds are healing fast. * Conditions are growing better every day. The country has more gold in its possession than ever before. Europe is gradually getting the bitterness out of itself and is getting back to common sense. Interest rates are lower “men wanted” signs are back on the factory gates-constructior, work is booming—country-wide good crop reports give a sound basis for mass confidence. The merchant and the manufacturers have taken their losses and are proceeding under the new conditions of today. All over the country the process of “moving out” the effect of hard times has been going on for months. The period of “good times”—a long period—has already begun. The public is buying—but buying sanely, realizing that now is the time to turn to “good times.” It’s time to forget pessimism—to smile and work and to put your dollars to work. These Indianapolis banks are as varied in service as human needs and capabilities and they are ready to serve now as never before. This is an invitation to start using their facilities for all they are worth. Industry is forging ahead. Your deposit in one of these banks will help the wheels of industry turn with ever-increasing speed. A Satisfactory Banking Connection Increases the Radius of Your Business Opportunities

City Trust Cos. Continental National Bank Commercial National Bank Fletcher American National Bank i Marion County State Bank

This advertisement is the second of a series paid for by the several banks above to cidtivate a better understanding of banking and bankers. By so doing , they are building the financial and industrial strength of the future Indianapolis, by giving you knowledge of just the banking service you need.

THE INDIANAPOLIS TIMES

National City Bank The Peoples State Bank Security Trust Cos. J. F. Wild State Bank Washington Bank & Trust Cos.

3