168. Changing Of Clerks

Many banks think they secure a satisfactory protection against defalcations by changing clerks from one position to another at frequent intervals without notice. This practice works better among bookkeepers than with tellers, and is often the rule for bookkeepers only. It does keep the clerks from getting in a rut and it prevents them from entering into a conspiracy with a depositor to defraud the bank. It is objectionable in that a man can do best that which he does every day. He takes more pride in keeping his ledger neat and clean if that is his special duty, than if he knows he will be transferred to another at any time. It is much better practice in a large institution to grade the positions in each department. The younger men should fill the less responsible places and be constantly trained to handle one or two positions above them. In case of sickness or absence of any clerk, the clerk below is qualified to step up one, while the lower positions may always be filled temporarily by the most promising of the messengers. To those who have not seen the effect of a well managed institution having this scheme of promotion, it will seem almost a rash statement to say that any man in the bank may resign or stay away for any length of time and the work go along quietly with the simple addition of a messenger boy to the staff or a little short handed work in this junior department. It will be worth the years of effort necessary to organize the staff on this basis.

169. Advertising

Advertising is the branch of the banking business least understood to-day. A simple glance at the columns of the daily papers, the bankers' and other magazines and to some of the specialties sent out promiscuously, will convince one that there is abundant room for improvement. A great deal of money is spent in bank advertising that might just as well be thrown in the fire for all the good it does the institution. If this branch of the business is to be made a success, it must receive as much attention and careful study as any other.

Bank advertising is the best insurance a bank can have against loss of confidence, and perhaps, against panic. Bank advertising might be called bank insurance - it not only brings new accounts, but makes all accounts secure by stimulating confidence. It is as profitable to advertise to people already on the books as to seek new business, for the confidence thus inspired is the bank's best asset. A bank's advertising is not a speculation, as many bankers think it is, but one of the safest investments it can make, considered with mortgages, commercial paper and securities.1

Some other pertinent quotations may not be amiss:

1 From an address delivered before the New York Chapter American Institute of Banking on "Judicious Bank Advertising" by Edwin Irvine Haines, editor of the American Banker.

Advertising is looked on as an evil to be tolerated rather than an investment that may be made to pay large returns.

Many a good and worthy institution is very sadly misrepresented in its printed matter.

The question is not how much do you spend, but how much do you get out of it ... I have known bankers who were as proud as a peacock of their advertising, because it displayed their names and their large resources in prominent type, and who seemed utterly unmindful that they got no tangible results from it.

The professional advertiser is not qualified to take care of the bank's advertising. His advice may be sought on details, but unless he makes finance a deep study he cannot be as successful as he has been in making us sure that there is nothing under the sun like "Sapolio" or "Pear's Soap." Pushing must be applied to banking with the utmost circumspection. The professional man is liable to overlook this feature.

One of the under officers should have personal supervision of the advertising. He should be on an equal footing with the other officers of his rank and be able to confer with them. In a large bank an advertising department should be maintained. The officer in charge should be conversant with the circulation of papers. He should know the relative value of street car advertising, programs, catalogs, etc., and be able to discriminate between them. He should know something of the mechanical part of advertising, such as how to lay out copy, how to prepare dummies; he should know the different styles of type, the comparative merits of elec-trotyping, zinc etchings, half tones and other methods of illustrating.

Bank advertising may be divided into two classes: First, that appealing to the public which is given through the medium of the daily papers, magazines, street cars, signs, window cards, etc. Second, that which appeals to the individual. This is carried on by the use of circulars, booklets, post cards, statement folders, follow up letters, etc.

It is impossible to say which is the best medium. In some localities one method might be very fruitful and be an utter failure in another. Generally speaking, newspaper advertising, properly followed up, gives the best results. The "Ads" should be written in an attractive style and should be changed at least twice a week. A small space full of live matter of interest to the general public will be read and remembered. Too much space is given to names of officers and too little to facts. It is a good plan to emphasize "you" and "your" in your copy and not "we" and "our." Don't say: 'We want your deposits," "We need your business." It is more tactful to tell people that they need you in the services you are prepared to render. Be very careful where your advertisement is placed. Do not accept a space with or between railroad time tables or next to some fake cure-all. Better still, shun absolutely the journals who accept questionable advertisements. A man is known by the company he keeps, and so is a bank.

It is possible to get excellent results from judicious private advertising. The quarterly statement furnishes an excellent opportunity. It should be taken advantage of to the fullest extent posible. At least once a year a statement should be issued in an attractive booklet form and made to cover all features of the business.

A carefully prepared and closely followed up mailing list is a valuable feature. A card list is the best. Careful notation should be made on the cards of all matter sent, the replies received and the ultimate results obtained. A poorly followed up system is almost worse than no system at all.

While enlarging on the excellent features of your institution never reflect directly or indirectly on your competitors. Beware of the numerous schemes, tin banks, programs, special editions of this and that, which are of no value whatsoever unless unusually pertinent. Once in a lifetime, perhaps, a happy idea may occur along this line, but it is the exception and not the rule. Don't advertise a savings book as a suitable Christmas gift in the middle of July, nor advise the public to start savings accounts for the summer vacations in October. Don't attempt to joke yourself or your bank into the good graces and confidence of the public by such statements as the following:

We can serve you living or dead. Give us your business. With us you will be independent in this world and comfortable in the world to come. Try us.

It seems impossible that anyone should have used the above as a bank advertisement, but such seems to have been the case. Be dignified.

Prompt and courteous attention to customers can hardly be classed as a part of advertising and yet if prospective customers are not treated civilly when entering the bank, the supreme efforts of the best advertising manager will count for naught.