Business Section 
155 
insurance, not being able to earn sufficient premium income, due to the 
large number of non-insurers, claim to be heavy losers. This biased 
view naturally affects the rate. 
As to life and household insurance, that does not call for treat- 
ment or discussion here. 
Principles of Banking 
The method of analyzing the solidity of a bank is too long to be at- 
tempted in this brief article but it is sufficient to say in comparing 
two banks with the idea of opening relations, the fact of a large capital 
stock, surplus fund and deposits shoidd not always be the determining 
factor, for a bank may be the largest in the world, yet the assets may 
be invested in such a manner as to make it an absolutely unsafe place 
for the deposit of money. The small bank just around the corner 
from the large one may be a great deal safer place in which to place 
one’s money, for the reason that the officers and directors have invested 
the bank’s funds carefully and wisely, which will insure every depositor 
receiving dollar for dollar upon request. 
One way in which a layman may determine regarding the method 
in which the bank’s funds have been Invested is to analyze the Board 
of Directors. Are they men who are well known in the community? 
Have they built up a successful business of their own? If they possess 
money, was it through their own efforts, or did they receive it as 
a legacy? Are they men who are known to live well within their 
means or are they known to be extravagant? Are they men who are 
known to have shown poor judgment in their personal investments? 
Furthermore, are the officers of the bank giving their full attention to 
the banking business, or are they more interested in some outside 
enterprise? 
In opening a bank account, it will be necessary to leave one or 
more copies of signature with the bank in order that all checks signed 
by you may be compared with the signature in order to determine 
their genuineness. After a paying teller has become familiar with a 
customer’s signature and its peculiarities, the card is not referred to 
by him except in doubtful cases. Too much care cannot be used in 
signing checks in accordance with the signature left with the bank, 
without any deviation. For instance, if a man should open his account 
at the bank as Charles H. Jones and record his signature as such, the 
bank would have a perfect right to return through the regular channel 
all checks received which that same customer may sign as C. H. Jones, 
or refuse payment of cash at the paying teller’s window. It should be 
realized by a customer that the bank has to make good all losses re- 
sulting from payment of forged checks, and every assistance on the 
part of the customer should be rendered to avoid such a loss. 
A check received by a business man in the regular course of busi- 
ness from one of his customers, when taken to the paying teller should 
bear the endorsement of the person to whom the check is drawn. If 
this person is not the one cashing the check at the paying teller’s 
window, it is right that his or her name should be placed on the back 
pf the instrument, as the bank is required to know who received the money 
on each and every check. Great care should be exercised by every person 
