Newspapers / The Franklin Times (Louisburg, … / June 25, 1943, edition 1 / Page 3
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OUTLOOK FOR THE BANKS Babson Sees Changes In Commercial Banking Policies By ROGER W. BABSON New York City, June 25. ? In flation is witnessed by rising prices ana an in creased shortage o f consumers goods. We have been in an infla tionary period for some time. Signs point to further inflation. Inflation will af fect all types of business and all individuals 1 n varying degrees. In thinking, however, of one business with BABSON wnich nearly all of us are con nected, I have felt that some ex planation of what inflation might mean to the banks would be of interest to all. Hence, today I will hit some of the high-spots in the banking picture. BANKS DEAL IN DOLLARS I am more concerned with the smaller banks than I am with the larger financial institutions of our great cities. Our large com mercial institutions will benefit from any increase in money rates although these may be some time in rising. Of course, the entire banking business has chan ged vastly since I was a young man. Today there is little glory or profit in being a bank director or even in being a stockholder. Banks have no inventory, buy no raw materials and manufac ture no finished products. They have nothing to sell except ser vice and, most important of all, they deal solely in dollars. Hence, theoretically, it makes no difference to the bank what the dollar is worth. It is worth 59 , cents today; but if it goes down to 20 cents the banks would still be open, would function as usual, continue to receive dollar depos-| its and pay out dollars. DEPOSITORS ARE SAFE As 'all Federal Reserve Mem ber Banks and most other banks are also members of the Federal Deposit Insurance Corporation, deposits up to $5,000 have, for some time, been insured by our government. Depositors are thus well-protected and bank failures for years have been at a mini mum. I look for no increase in bank failures. However, some banks may consolidate or liqui date and go out of business. In some instances this would be a sensible thing for them to do. The larger a bank is the more valuable its stock should be. Bank customers will continue to receive much the same type of service as they have always had from their banks, but they must expect to pay more and more for it. Banks will be obliged to meet increased living and operating expenses occasioned by inflation just as manufacturers and other business houses will be. They are faced with declining mort gage income; their returns on commercial paper, municipals and corporation bonds are also ex tremely low. It looks as though they might be largely dependent upon their service charges and safe deposit box rentals. INVESTMENT POLICIES FOR BANKS The banking fraternity is to day carrying too much of the Government debt in the form of bonds. There should be propor tionately more in the hands of the public than in the hands of the banks. However, while the rate of interest on Government holdings is extremely small, banks can be certain that their holdings of Governments ? partic ularly those due within the next ten years ? will be paid at par upon maturity. Furthermore, I do not look for any extreme fluctuations In their prices im mediately after the War as was true of the Liberty Bonds of World War I. ffnlike individual investors or businessmen-, banks cannot pro tect themselves against inflation through the purchase of tangible goods and property. Yet. like merchandizing groups, they must have an inventory with which to do business. Therefore, inasmuch as they deal in dollars, they must have a large store of dollars on hand. \ 1 >(>1,1, AltS TO HE PLENTIFUL Forward - looking bankers, therefore, will gradually depend less on normal investment in come ^d educate the depositors to heavier ^service charges. These will be permitted by the Govern ment, even looked upon with fa vor. Unless Washington wishes to take over the actual operation of the banks, they must make it possible for banks to have suf ficient income from sources oth er than through normal invest ments. As mortgages are paid off in cheap dollars, income from this source wilt also decline. But dollars will be exceedingly plen tiful. Money in circulation per capita today is the highest in the history of our country. It will continue to rise. For every Government Bond sold our credit resources are multiplied six or seven times. I forecast that dollars will be far more plentiful than certain commodities. WHAT ABOUT BANK STOCKS What I have outlined is far from an ideal domestic banking economy. It is no real way for banks to function, but it is the only way they can survive. But I would not dump my bank stocks. They may be as good as anything else to hold. In some ways perhaps a little better in the case of the larger banks. At least their real estate constitutes real property. But I would not be surprised to see many bank ing quarters turned into funeral parlors! o RATION CALENDAR Blue Stamps (For canned, frozen and certain dehydrated foods). Blue stamps K, L, M are good until July 7. ~ Coffee Stamp No. 24 good for one pound of coffee through June. Gasoline "A" book coupons No. 5 good for three gallons each and must last till July 21 in North Carolina. Bed Stamps (For meat products, canned fish', most edible oils and cheeses). Red stamps J, K, L, M, and N re main valid through June 30. Red stamps P become valid June 26. Shoes No. 18 stamp in War Ration Book One good for one pair un til October 31. Sugar Stamp No. 13, good for five pounds, is good through Aug. 15. Stamps No. 15 and 16 in War Ration Book One are valid for 5 pounds of sugar each, for use in home canning. They are good through Oct. 31. Housewives may apply at local boards for supplementary sugar rations for home canning, if es sential. Note Loose stamps (except accom panying mail orders and the one point red stamps used for change) are worthless. o The Farmers Cooperative Dairy in Forsyth County has proven that cooperatives pay, if handled properly. It is paying its own er-producerg $4 per hundred for 4 per cent milk. JUST A FEW OF THE MANY ITEMS WE HAVE TO OFFER Kitchen Cabinets - Ice Boxes Dinette Suites - Linoleum Rugs ? - ? / " ' * ? . Bed Room and Living Room ' > _ ? ? Suites _ Smoke Stands, Chairs, Coffee and Radio Tables Confidence: All social life, stability, progress, depend upon each man's confidence in his neighbor. We want you to have just that confidence in deal ing with us. HOME FURNITURE CO. LOUISBURO, N. 0. || From Ingleside Mr. James Powell, living on the farm ot Mrs. Pattle Jones lost a valuable milk cow recent ly by being struck by a car. It seems that the cow got loose froirt the milking post, crossed the highway and was hit by a passing car, near the home. " 11?11 Mr. Jos. T. Hunt, dental stu dent at Richmond, Va? was here the past week visiting his parents, Mr. and Mrs. J. B. Hunt. Joe also visited friends at Wake| Forest and Raleigh, returning Saturday. II? H Tobacco, corn, cotton and oth-i er crops (with a little grass mix-i ed in now and then) are growing rapidly under seasonable rains. Several very fine fields of tobac-j co fail to indicate any lateness i of that crop, and many havej "layed by." Among the few no- J ted, Mr. Edward Dement seems! to lead the field, and others are:| Messrs. Ira Weldon, Johhny Ro-, berson, Roy Williams. Charlie C. J Catlett, Hobson Finch, J. C. ' Finch and others I fail to recall.! II? H Mrs. Turner Harris, who sus tained a serious injury to her hip from a fall eiglu weeks ago, which kept hec confined to the house and most of the time in I bed, is able to walk again her friends will be pleased to know. H? II Mrs. S. J. Matthews, who has; been with her sister during her illness, has returned from a two-| weeks stay at her home in Louis burg. Ti? 1 A three room tenant house on the farm of Mr. I.ee Roberson. a half a mile from Ingleside, oc cupied by a' colored family. Bud dy Conyers with a wife and three small children, wag burned ^bout: 9 o'clock Thursday morning. The origin of the fire is not known as there was no one At home at the j time. The entire household ef fects w^re destroyed. . I D? 11 It appears that the wheat crop will turn out better than was an ticipated earlier in the season, j Dr. D. T. Smithwick has a 16 acre field of that crop, which j promises a fair yield, on his farm! near here. 51? 'I Hattie B. Jones, col., contrib utes to Ingleside and community "believe it or nots" with a 9 ! week's old 4 legged chick. The{ extra pair are formed behind thei others, are shorter and not used1 to walk or scratch. However, I they touch the ground when it J sits down to rest. H? n Mr. Julius Collins presented the! writer with a big piece of fresh meat that didn't have to be ra tioned. It was a fat 10 pound turtle. When the head was sev-. ered from the body, it would still bite any object placed in contact during the day, and it is claimed that it will do that the next day or 24 hours after hav ing been cut from the body. u ? ? PIG WALKS ALL RIGHT, BIT HE'LL UK HAMLESS Smlthfteld. June 16. ? News has reached here of a two-legged pig that walks like a duck on the farm of J. P. Pittnian. of Selma,' Route 2, near Micro. It is one of a litter of four pigs farrowed about six weeks ago. : The three other pigs all are nor mal. The pig's two legs are in front and there is no sight of legs! or feet on the rear of the body, which is shaped like an egg, with a tiny short taiL The pig is just as active as its four-legged brothers. a ? RENEW YOUR SUBSCRIPTION ' ) , 81*50 per year in Advance ATTENTION FARMERS! We Are Now Ready to Receive Your New Wheat Crop. We will buy, exchange or store your Wheat for you. Our three leading brands of Flour ? ZEB VANCE, VANCO and VANITY FAIR. Every bag guaranteed to give satisfaction. GIVE IT A TRIAL. Vance Milling Company, Inc. HENDERSON, N. C. ? On Pay Day, Buy Bonds? Subscribe to the FranKun Timed J. 1 time you get sore _ _ grab your pencil... FIGURE IT OUT YOURSELF P Next time you're sore at the Nazis or Japs, just sit down for a minute. And if there's a pencil handy, do a little figuring ? something like this ; Sure, taxes are higher. You're pay ing more than you used to. And the cost of living hasn't gone down any either. That's costing you more. But ; . : Chances are, you're maktng more, too. And maybe somebody else in the family's working; Maybe one of the girls is bringing home a pay envelope every week ? and pretty good pay at that. Chances are, there's more cash coming into your I home right now than there has been for a long, long, time; What's more ; > i Maybe you were going to get a new bus this year. Every year, yttu know, millions of people did get new ones. Or radios. Or refri gerators. Anyway, it's a cinch you'd have spent some money this year on things you can't buy now. So what? So maybe you can put more of your family earnings into War Bonds! Not 10% or 12%or 15% or 20% ? but all you can! If you and every other American who has an income will sharpen np your pencils and figure out how you can save an extra dollar here and another there that can go into War Bonds ? if you'll keep on figuring and saving ? you'll provide a weight of metal that will snap the Axis' spine like a rotten stick! Let's pour it on! And keep pouring it on till the murderous fools who have defiled our soil, butchered our sons, broken up our homes ? who have refused to let us live and work in peace ? are smashed utterly to dust! Get out that pencil! See charts below! 1 Here's what comes in . . . Here's what goes out j What comes in j What goes out for U. S. WAR BONDS After all, U. S. War Bonds are the lafest investment the world has Ever known ? return you $4 for every $3 invested at the end of 10 rears. Use that pencil to help your ?<*lf ? as weQ as Uncle Sam. ($ ($ YOUVE done yobr bit ? ? i ?BOOST YOUR BOM BUYING -NOW DO YOUR BEST! r THROOOH THE PAYROLL SAVINGS PLAN L This advertisement is a contribution to America's all-out war effort by FIRST-CITIZENS BANK & TRUST CO. Member Federal Deposit Insurance Corporation LOUISBURG, N.C. FRANKLINTON, N. C
The Franklin Times (Louisburg, N.C.)
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June 25, 1943, edition 1
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