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SAVINGS AND LOAN
ASSOCIATION
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MUTUAL
SAVINGS
BANK
CREDIT UNION
FEDERAL RESERVE BANK OF NEW YORK
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
STORY BY: t5AIL DONOVAN
ARTSY: NORMANAIOOEL
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,OOk' Ar 1'"'/.IA
BU/LP/.
3.
VAU'-
I
WG" NE&.
~ Pt.A
To 8£- .tlON&-S'T;
0:::JN'r EVEN #AVE A
C/.IECKIN& ACCOuNr. IM
✓t/Sr r.h'G CJ.IE!=. YOCI ANt:'
h' 0(.,1/,l'
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r
~ANKIN6 .. ~R.8AAIKS/
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t.E=T
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ro
Ke= PAYING IN
'I-/. W.tli=NEVGI<'
8lt.t.
'Alt., I (!;£?-r A
W~YOKPG/<
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MAKE
-ro M~- SANKS. h'E- oP!?NE-/?
OtlR ~G:P.. re70PS CHECKIM:5
ACCOtJNr r-0/< t/S ANP' riECAN re:=u.. YOU' AU ABO&tlr
~ 'SIPE/tEP 0~
'Ot.lN ~ rM
A L.OT OP.
~ 7o ;::?4Y A
ro
Ol/R Pl?POStT; YOU SJ../Ot..lL./? 7:4t-l<
CORNE-RS7c
4
ME- 1NrKOt?UCE?- you
TU/.R/7 PARrNER,
0(,,/J<'
PEFNNY,.
•
Wcl.COMG ra 7"J.IG BANK, /?ENNY.
,1-11s /,S A Ct:)NtMEl'i'etAt. .BANK ,
Wh'/Ci-1 MGANo WG 7'"AKG P~POSITS
ANO MAK€ LOANS ro
/NPIV/Pt.lAL.S ANP 8llS/N/E-.SSIFS.,
r11ERI?' AKE ALSO SAVIM5S
ANO t.OAN.S ANO MlJrLJAt..
SAVIN6S BANKS 7'/Ar
TAKE= PEPos,rs ANO
MAkG- LOANS PRIMAx'II..Y
rO-'<' J.IOME Bt.l/U?/NG .ANO
MOR1'"6AGGS ,
AN&>
t:::~Gt:nr UNIONS rNAT
PR<?V/PG CONSt//VIER
'-~AN.S P0,12 rNe/,e
MEMSEH.S.,
Yol/ .SEE, PENNY, w1r1-1 OU~
P,6-.&>.. ~0005 ACCOUN,
WE- C.AN WRl'T"E- AS MANY
CJIG-CK.S AS WG~ ukE- ro
PAY Ot./R 8lt..L-S WltJ./OU,
I-IAVIN6 ro t-G-AVE- THE
~F-Flt::E re, GE-1 A .srACK
OF MONEY oROeR.s. Pt.tis,
WE CAN USG A CI-/E-C-K ro
BUY SOMET/.1/NG IN A •
sroR1:-, sue.~ AS -r1-1e N~W
COMPt..rreR
we= WANr
FO/f rHe t?PP/&E.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
_r:;_
r .sroRes,
IF- YOU w1<1re A C:,/.le?C,I(
-ro E3t.lY A COMPurE?R/
YOll'l<e re=L..L.. /NG 'TIie
BAN~ To rAKe- MONEY
C:::::.K..S ARE- vt.15r
00 AS GASI-I, I
/..I I-IAVI!:- l:NOUG
'ENT✓F/t::,,,AT/.
'E A ORIVE/<6 l-lC
OTJ-IGR
PROM Ot.lR F?E-.P, ~ p . s
C:/..113-Cl<ING A CCOUNr
ANO .SE-NO 1r -ro r,1,1eCOMPurER .sro~es
/.,D,.
Ci-/ECKING AC.c.ouNr
Ar ANO"TI-IE-R BANK,.
Bt./SINeSSES ANO
INPIVll?t.lALS WR1re
MORE n-tAIV S-e, SILL/e/lN
CI-IGCKS E'ACj.1 YEAR /N
T#E- UNtrEP STATES ..
rH"AT'~ AN AVE-RAGE
OF- IS7 M/~~1'01\1 CJ.IGCKS
EACt-1 ANO E-VERY PA~
1,./EY, Evr OON'r P.ORGt:r,
WE .tlAVE ro HAVE MONEY
IN OUR AC.COL-IN/ BErOREYOtl WJ?I rG A CJ-IE-Cl<. I r
WE t:::?ON'r, WE'Lt.. h'AV..GWh'A 'T IS CAt..t-EO AN
T#AT Ml:AN.S rl-lE Cl-ll:CI<
Wit.£. E3E woRr/.lt-&SS
AN.O •• SOUNt::.E," ANO
-r/.lE- 8ANI< WIU.. CJ.IAR6t:..=
vs A P'ENAI-TY,
OVERPRAF-r,,.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6.
tlAVG
ro
'E.SPONSI
~u'RG GO/,
A C-J.ll=-C
A,vP Tt-11;; owNER o.t= r#G
COMPt.FTGR STORE WILL/3£- t/NJ..IAPPY W/.IGl'I J-IG
FINPS OUT w~ PON'r
..4AVG ENOJ.IGJ.I MONEY
/N
OtlR ACCOUNT
ro
C.OVGR TH.G CHECK,
I
OE-NNY,,
IS 1.s SliRI,
E3t.J5/NE.SS.
'GN PGOPL.E
TE SAPCHEi
'MErlMi=S 11
W/-1£-N WE NEE:/? TO GGT CASI-I
OUT OF r/.lE C/.IGC,,K/NG
ACCOUN~ WE CAN GIVE- Tl-IE
TG/.1.EK A FORM TIIAT
..SAY.S ro TAK£- MON£-Y
Ol./T OF Ot-lf< AC.COl/Nr
A/VO GIVE IT 70 ll.S .
OR WE CAN GEt MO
Ol/T OF Ot.lR ACCOI.INT
ALITOMATFP TGL.LGR MA
TM I EVGN WI-IEN
M
1.s e,
'l=TI-IEI? YOll CASJ-1 A CJ-IE:CK
ONE-Y AT A TELLERS WINOO
'NVE:RT/Ne,
CJ..IE-CK /Ne
AN
T
POLLAR..S
IN
REST IN
T,
SILi-.
OllT.SIOE-
K,,
I AL\,,V,:
£-EL TO,A
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
7.
W/.IIFRE Oo YOll KGEP
ALL n.1£- MONEY Yf:;:JL-IR
c.u.sroMER.S t?EPt::?.s1r
f'
IN YOUR VAUI-T f
NO., W.G t.ENP IT ro INOIVIOUAL.5 AN/? BuS!NE.SSE:-5/
EXCEPT rOF? 77/G AMOUNT WE'RE R£6?ll/REO BY
7/.1£- FE'PERAI- RE.SEKVE -ro SE-T As101= AS
-R'l=-..S!:R'VE.S •
rt1E- C.Ol/NTRY:S C.l=NTRAL BANK,, CREATE/? BY CONGRESS
IN 1913 ro GN.Sl/RG rJIAT T/.IERE I.S l?NOl-lGH MONE=-Y
ANO CR£-J?tr IN TJ.IE- COUNTRY 7l:J PROV/OE FOR
ECONOMIC, 6ROWTJ.I. T/.IE FGO .tlAS IZ /?ISTRICTS ANP A
80ARO OF GOVERNORS IN WASJ.I/NGTelN o.c,_ TI-IG
rEPGRAL RG.SGRVE- 1-/AS A NUMBER or=RG.SPONS/8/LJTl~S, INCLlJOING MAl(ING ..SURE PRICl:?-.S
ARG .STABL.G- ANCJ 11?-L-L.ING BANKS To SET AS!OEA C..ER1AIN
PORTION OF T/.IIEIR CJEPOSIT.S AS
RE.SERVES, E?ITI-IE-R AS CASI-I IN T/.IEIR VAl/L-T.S OR IN
ACCOl/NT..S
AT A
rEOl=RAL RGSGRVG
r
E3ANk.
MGANS THAT I r
,LIAS A R ESE:-.
'UIREMGN
NH
@ _:
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I
..... _. __
:
\.'
RIG/IT; t.ET.s SAY '>1:)U
A MONTH FOR YOUR'
ANOLOR/? PEPOSITS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'R LANOLORO $.
Y ..SPACE? ANO
CJ..IGCK /IV J.../.
8.
,
A /0 PERCENT RESERVE REGUIR'l=MENT
Ml=AN.S YOtJR LANO/...ORP:S BANI< COUU;J Lt?NO ,.__ _ _ _ _ __
t/P TO 90 PE::=RCENT OF r/.1£- $S';oa7~ oR
/t~Sl:0/ 70 T/.IG OWNER OF- T>-IL= /?IZZA
PARLOR NGXT PCOR SO !-IE CAN PAY
r0R J.11s NEW 1<1rCJ-1GN ~
- .:h
.
.
;~
...
,,J
.)~~
L
PIZZA PARLOR OWNER
CONSTRUCTION COMP,
S-00 Cl/EC~ ANO T~E- II.
'E= CON.ST.Rl/CT/ON COM~
IT 1r IN /./IS BANK
"l/E ...STRt:=;
W l r/.1
-r11E
A /0 Pl?RCE?-NT /(i=SE
C0N.STllUCT/ON COM~
TIil= STRl=GT COl..ll-0 LEND
OF n/E $ ~5C::O / o,R ,# ~ 0.
OF TIil=
/vfOVIE r1-1E"ATI:.
Tl-le STRi=E-T,
TIIE Ot-',WE.R CF THE ~VIE= tNEATER WILL.. OEPOSIT 0/E½0..50 C/.IECI( IN T/.IIS BANK, ANO, WITH A /0 PERCE-NT
J?ESERVE- K'E'Qt.l/REMENT, WE CAIV t.eNO UP 7V
90 P'GRCENT Or $ ~050,, OR !/ ~6~~ '7cJ T#E
OWNG"R' OF Tl-IE S,001( sroRe .so .SHE C-AN
$
4fk.ly NEW l!fk10K.S .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9.
WITII AN ORIGINAL
CE-A:::Jsrr OF $ s;a:z, ANO v/.lST TJ-IRE:-£ ~NSACT/OV.S,,
11-/Rl:£ SAIVKS GOT $/~SSO IN NGW PEP'oSIT..S ,ANO frt4PG -$ 12,,195""
IN LOANS. A LOT OF MONt=Y IS CRt==ArEo WIIE-/V -r#G /3:,ANk.S,,,
CRGl?IT VNION.S,, AN!?
.SAVINGS AN/7 L.OAN..S
IN rJ.I&=
UNtrE-P STATES GGT INVOL-V6?P ·.,,,--_ _ _ _ __
Ir
So MUCH or r11G
.MONEY OE'Po.s1rGP
GGTS U':NT OUT; t/OW
l?O WE KNOW r/lAT
,/.IE BANI< WILL 8E
A8Lt:= ro G1v€ t.1s
OU/< MOVcY' .8ACk
WHfENWE
WANr 1r?
.8ANA's TRY 7b MAkE SAFE
AGAINST L-0.S.S, ANO FGOE/?AL- ANC?
..STATE !f'EGULATO.RS ~><'AM/NE'
•
8ANl<S 7D /VfAKG .SURG rllE y
l:N6AGl/\1<3 IN SAFE ANO
.SOUNP Pr?ACTICGS.
tT.S
ARE
$1-{0(./LC>
e,y TIIE=
/\I.SU~
WCYC?.
WANr ro
'EY ASIOE
RT PROPL/C
'ERNM
'AC.KS 8E-S
ti-Ii: B,A./VK PIPN'r .SURVIVE-.
!Xlr Po/V''r PANIC I' ,#G
v'l:-Pt:JSIT..S Wi:FRE IN.SURE&' 8Y
771£: P1;P£RAL PE'POS1r
/NSL/RANC..e= &o!?P.,, So G"ACI-I
PEPOSITOR WILL
Ger
HIS
OR flER MONtf=Y 8Ack,,,
UP TO
LOANS 1
Bt./r,, o,c e,ou,Z.SE,,
,#E"RG~
ALWAY.S R/.SK.
t3ANKS I-IAVE
CAP/rAL 7b PROTECT r/lEMSE-LVES
fl
.la::1,000.
"rJIAT.SA ~
dtt..lcSTIO#, n?A.VCISCO
Wf/lLG YOll'RI!!?
HER'E1 YOt.l MAY
WANT W OPEN LIP
A SAVI..VGS ACCCXINT
~RA CI-./EC.K/NG
ACC.OUNr TI./Ar
PAYS /N7EREST,
PASSBOOK C=ITfVE
SAVINGS
AAltS
~T
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
10.
rllE SAVl/v\'SS ACCOC/Nr.s RANGE=
rRoM PASSSOC,k &AVIN6S ~ N , . S
eu
,HAT Au..owrREQt.lGNr Wl"T#ORAWALS
'N,
Bur PAY /?Et..ArlVEL-Y t.oW ,ITATES,
'E-ro PA
GOIN6
-PVP
n:, CEHnF/~TI: o.e:- P4=R::IS✓r (CP)
ACCO<-INr..s r/.J4r ~ y JIIGIIE?R
;=?ATG.S &.Ir 7""IE L-IP YOt.lR /v!ON'EY
ri::J~ As L-/7TLE AS .SEVEN PAYS
O,R As La'VG AS /0 YE"AR.S .
OR ~ MAY Pl?t:Pl!:R AN INT"l:1?€S'7" /3EARING CHECklN<S ACce:x/N0~
AS ,4 NEGOrlABLE ORPER OF
W✓TH'PHAWAL (N~W) ACCOUNr.
NOW A~NT..S ALLOl,v t../Nt..lMITl!FO
C!./1:C/( WRlr/NG evr USt..lAL-LY
/?E0UIR€ A M/N/Mt.lM ,8.qt.AAC-E' IN
OROER' 7b €ARN INTERE:ST ..
8ANH.S ALSO OrPER M&JNEY
e:
NE.
I ~ Nor SURG WE?CAN /l--t41NTAIN A
MINIMUM l34t.ANCE RIGHT Now,, So
I TI-I/Nf< WE S/-bUL-C? .START Or-FWl,1-/ A
REGllt.AR S4VINGS
ACCa:.I/VT. WE'LL. STILL GARN ,,.,
INTl=RGST,, WON'T WG= f'
YOU C4N BANI< ON IT,
evet...YN,, ANP YOt-l''-'GAl<N /NTERGST e,onl
MARKET PE;t:)Slr ACCOUNT..S(MM~s)
WI-lie;./ Or~GR LIM/TEP Cl-/e=C~
W;?IT/NG AND OF-TEN RGQLI/REA MINIMUM AVERAGG 8AlANCE=-
ON Tl-IE ORIGI/VAL.
M10UNT )1:)(../ /?ER:;;srr IN
T}{G ACCOL-INr 4/VP ON ANY
INTFRESr You've AL.RGAC>Y
GARNE:P ANO t-GrT IN,.
TIil: ACCOUN,., T.t/AT.S
CAt-t-GD COMP'CUNP
10 Avo10 MONrllLy c~~GeS .
/NTERE.Sr.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
11.
IF- WE J-IAV£- .!/Js;ooo
ANO PtlT IT IN AN
MANY 8ANl<.S AL.So
CARP.S,
.so YOt./ CA/\/ BuY rue/..SSUE CIZE:0/T
ACCOLINT PAYING
5 PBRCl=NT COMp0UND
/NTE=~€..S0 IN FIVE
YEARS WE'LL. µAVE
$~380 ..
YOU
ME:NTIONeO ToPAY
ANO PAY rOF? rr
C.OIV1PUTEF{
t.ATER-
WITI-I A
CRG{;:)/tCARO,
WOl./LON"T .4'AVG To
we
PAY
TIii= !!ENTIRE=- /811-L.. ,.qT ol'vC,I::.
/N.STEAP, WE CO'-IL..O
SPRGAO Ot.tR PAYMENTS Ot.17"
t,Vf=R N&4NY MONTHS As
{..ONG AS WG AGREE ro
PAY 71/E E3!¾ANI< INTERe.sr.
&.IT 7"HAT /NTGRE.STAPPS.
-ro ot..11? Tt7TAL
aP
cosr
OWNING THE COMPt-lTe/::t(.,
ON 7"1-IG orHGR #ANO/
WG'P GET r1'-E COMPUT/:IZ
NOW,,,
WGLL
1
ro GO INTO
ANO KISK 8~IN6
I CJON T WANT
PEST f?IGHT /VOW
MONr/.lt.Y .PAYMENT..S.t:=====
WG'RE NOT R6APY FoR Tj.lA7"
RE.SPONS/BIL,rY .. I T/-IINK WE
SAPOL..GO WIT!/
..SUOULO STICK To T,4/E:- CHG-CK/NG
ANO SAVINGS ACCOUNTS, ANP
TJ./INK ABour T .HE- 077-IER
.BANK .SERVIC ES LATE~ ..
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
12..
H'Mht.M, , -
PART TWO - Tl-IRE£ YEAR~ LATER
B(./SINE5S /S
Gt:Tr!Ne,
llNrtL-
BooMING / We Re
MORE
ORPl=RS
Ot=NNY~
,C:0~
PARSNIP, YUCC
, TARO, BATA
r111=s1: Al?E
• ARE MY TAS'T.
kc=N OR 0/0 I
INTO A Ci-1/P
TIC vGGG TA&BoWL Or- CHI
T,
XPERI.
ED Ltl<E" PAR.S
Cu
\ \ \. l
.,.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
13.
-rRy
LA'TE.S
Vl:-NTIONS ..
OUR PRGTZ£-L.S t:-VER.Y OAy ..
v,
YOU
~
WJ.I Y DON'T WE STAR, -SELLING
Th'E::SE-? IM SURE Ol/,R
CU..STOME=RS
W ILL W ANT
10 BUY TI-IEM
r OR
T/.IG/R -STOR ES .
CAN AL
TA I.AR
'LO/NG, E3
'G E=GLIIP.
J.IIRE M
RG RIGI-I
OeNNY-
uR Fe:,LK.S
NOT SllRE
~VG ENOLI
VNEY /NO.
VINGS ACC
E:At)Y C.1,//i
AS MUCI-I
"I-IGY CAN
1
OON TL
- MYFA
N ' T h'AVE
I=- IVIONGY
PAY FOR
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14.
Now TJ.IERE:S
AN IDEA
I
WE.,VE 8££:N .sucCGSSFl/L-
WITH OUR PRETZGLS,
IIAVE:N'T WI= (
You
l~L FIGURE our HOW MUC-1-1 IT'LL
COST TO £)(PANO., MAK£- COPIE-S
OF OUR FINANCIAL STATE=MGNT...S,
ANO WRlrE A 81./SINl=SS ANO
.SAID YOLJRSE:-LP WE
ALl?l!:AOY HAVE .SOME=
MOIVGY .SET ASIDE POR
EXPANSION.
MR. BANK.S WILL Love:=
Ol/R
11-fA.R !<£TING PLAN.
71./GN WE.,LL MAKG AN
APPOINrMENT W/TI/
NEW IDEA .
MR. BANK..S ..
□
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
15.
Tl<.Y SOME OI= Ol.lR GR.
EXOTIC CJ.I/PS,, MR, BA
WE'D Ul<IE TO GET A
.tlMMMM. T/1£S€ ARE GOOD, B~r
J313FORE THE BANK C4N GIVG
YOU A LOAN, /WI GO/NG ro .t-14VG"
~PAND OUR 8ll.SIN£..
r; RT .SELL/Nf7 Ti
TO ASK YtXI TO FILL OUT AN
APPLICATION/ .S:::> WE CAN Do A
CREDIT CI-IECk. - - - - - - - -
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
16.
IM
WE'VE Al.WAY.S MAOE
CAPACITY
ENOUGH MONEY
6ELLING PRET~ELS
ro COVE:R OUR COST.S
ANO .SAVE MONEY,
ANP WE THINK
OllR Cl-I/PS WILL BE
EVEN MORE
NOT tAL)</NG A50UT
BoDIGS OF l- ✓ArER,
I~ TALKING A80UT Tl-IE
LETTGR
AS IN
c,
ro S£:(_{_
ENOL.IGU C/-IIP..S
REPAY TJ.IE
LOAN ..
To
PoPt.lLAR ..
NOT WH,
N. I WA
IF YOLI
EAN CR,
OR ..
TIie THIRD
WJ-IAT CA
GUARANTG
CASE: YO
R,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
17.
MY CL.IS TOMER.S LOVG
To PARTY ANO
THEY'LL h'AVc A /<E,AL
E.&>. BASIi w1r1-1
YOU/:? PRETZELS
ANO Cf/IP.S,.
r.
C
CAPITAL,
IN TI-IAT CASE:/ WE WOULD USIE- 11-/l:
T#E Foll!<T/.1
EQUIPMENT AS Yot..lR COLLATERAL
AND IT COULD BE TAKeN OVl=R BY
Tl-IE BANK IF YOl.l FAILeO
Tl-IE AMOUNT Or MONEY YOU I-IAVE
INVl=STE-0 IN )t:)t./R 8V.SINESS .
T/.1€ BANK ALWAY.S WANTS A 8oRROWE~
7D HAVE .&:;ME o,c= /-/IS oR HE"R
CAPITAL /NVEST!ED, Nor vt.lST
T/.1£ 2'ANK~ MONEY...
TO REPAY L.IS .
RGMEMBE=-1?, Wt/EN 'yt)l.l ?AKE OL/T A
l.OA/½ tr.!s A LEGAL CONTRACT..
l'O LOVE 77::)
PAY OFF Tl-le LOAN
MR,BANl<.S, eur I
CANT BECAUSE t:JF rlllS
DARN RECESSION .. LOTS
OF PEOPLE ARG our
OF t--voRK OR FEEL.SQUEEZED
FINANC/Al-t-Y...
We OWN Al-L OUR
PRETZE:L-MAl<IN6
e<xutPNIGNT
AND WE'VE= S4VED
ENOUGH 70 PAY PO~
HALF TJIE COST OF
Tl-I£ CI-IIP-MAklNG
IWACI-IING ..
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IS FoR
18.
PONT WoRRY, £VERY80PY EATS SNACK
A:x:Jo. EVEN WHGN TIM€S ARE £3,AD.
tr:S
I/ARO £NOllGI-I 13£::ING
oar OF /!Vt)Rk,
BUr I
COVLDNT L./VE WITIIOllT
MV SNACK.S.
'E:: I/ER£, EE
OUT ANY
I
FE-EL AS
Tl-IE Cl-I.
00
ALSO, A SI/ORT-TERM LOAN,
OUE IN u;ss r/lAN A YGAR,
IIAS A LOWER INTER£$ T
RAT€: Bl3CALISE !T's t...E-55
RISKY TJ.IAN A ltJNG·TERM
t,,OAN DUE IN, SA~
/0 Y£AR.S.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ANO., n1£ DEMAND FOR MONE
LONG - T£RM L-OANS ARE
I GUESS
A 8/GGE~ GAMBLE
!!5ECAUSE A l-OT CAN
ONEY AVAILABL.E rOR /..€ND
WAS A MISTAKE
C/.IANGE IN
/0
/N RELATION 70 r/lE AMOt.1Nr
IT
LSO
Bol?ROWING
SO MUCH MONEY
10 YEARS AG>O
TO .SrART
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
20.
r,
PLAYS
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A RGSU
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IF BANKS HAVE 700 LITTLE
MONEY AVAILABL.G rOR
ll=NDING, ;r COULD LEAD
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A
IM NOT PMtJMI.SING ANYTHING, e,ur
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YOU I-IAVE A GOOD SNACK ... ER~R,
I ME=AN TRACK, .. ,
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APPLICATION ANO
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APPLICATION
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2 1,
TWENTY YEARS LATE,R ...
A LOT I-IAs CI-IANGED
.SINCE TI-IAT DAY
W/.IGN MR. BANKS
GAV~ ·U.S OUR
J!',Rsr
LOAN,,
IT .SURE UA.S.
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ANO OPl=NE=DA
CI-IECKING ACCOUNT.
AND WG ALL STARTED
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LARGE~r SNACK PRODUC
n1£ WOIZL.D, ANO WE
ro COUNTR/l=S 0/V Fl
TINENT.S.
WEARING .St.JIT.S
AND Wt:'RE Gi=TTING CI-IARGED
rn1= "PH/ME'' RAT£ ON OUR La4N.S,
Tl-IF. INTEREST RATE.= E3AN'Ks
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TO WORK
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CR£01T-WORTHY CU.STOM£R.S,
..JU.ST TI./INK AE!OUT
ALL T/.1£
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we
l/,SG NOW.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'MBER WJ-IEN
iANK GAVE LI.S r,
OAN TO BUY 1/..IA
W CI-IIP COMPANY
ANK I-IANDLEO A
OETAILS OF
S/
22.
ANO Tl-IE BANK IIGLP..S US
w1r1-1 ALL OUR FOREIGN
EXCI-IANGE TRANSACTIONS
IN 1/-ll= COUNTRIES IN WI-IICI-I
WI: SG.LL SNACKS .
TI-IAT'-:5 R I GHT. W/-IGN T!-1£ F.E. D. FOOOS
PISTRIBUTOR IN FRA NKRJRT / GEIV\-1ANY,
PAY.S US IN 0£-UT.5CH£ 11t't4RK..S,. Tl/£ BANl<-S
FRANKFURT OFFICE CONVERT~ it/IE
OEUT..SC/-1€ MARk.S n::, DOLLARS ANO
TRANSP.ER.S r!-113 MONE Y
TO OUR
ACCOl/NT IN Tt/E UNtreo STATeS .
1t-lROUGJ.1 Ot/R COMPUTER t..lNK
-ro TI-IG BANK, WE CAN
TRANS~ER FL.INDS GLECiRONICALlY
rRCWI Ol/R ACCOUNT TO
ACCOUNTS A, OTJIER 84NK.S •
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T/IE .SANK OG.PO
WAG~S ELECTR
ACCOUNTS AT
Ttl£Y DON 'T .L./AV.
r T~
W.4EW I
AND
ro
TtllNK..,
tr
At..L
STARTE D 23 YE ARS AGO
WITH ONIE C/-1£CKING ACCOL.INT
ANO A PRETZEL REC/Pe._-.:::;.-_
2 3.
"The Story of Banks" follows three young
entrepreneurs as they use various commercial
bank services over a 25-year period. As the
entrepreneurs' business grows and develops, it
needs progressively more sophisticated bank •
services in order to expand.
The booklet introduces the reader to the
importance of credit to a business and to how a
bank loan is used to help a business grow.
The reader learns that before a bank can
approve a commercial loan, potential borrowers
must submit applications, business plans, and
financial statements, and loan officers must
ask potential borrowers a series of questions
about their credit history and ability to repay
the loan.
The booklet also explores the role of checking
deposits and lending in money creation; how
banks determine the interest rates they charge
for loans and pay on savings accounts, and
some of the more complex services offered by
commercial banks.
p to 55 copies of ''The Story of Banks" are
available at no charge. Additional copies are
25 cents each. For more information or to
order, -write or call:
FEDERAL RESERVE BANK OF NE"1r YORK
Public Information Department
33 Liberty Street
New York, NY 10045
(212} 720--6134
http ://www.ny.frb.org
Fifth Printing
1997
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis