Like all things that run smoothly-such as the sun in its orbit and the earth on its axis-the American Institute of Banking is not a source of what is commonly termed "news." The Institute has no sensational features. The old fight between education and "something else" has been won by the educationists and forgotten by all. Such talent and energy as the Institute possesses are now devoted to constructive work. The Institute study course, which is recognized as the essential foundation of Institute ambition and activity, contains the fundamental knowledge of banking and banking law that every banker must possess to achieve or merit any sort of success in the banking business. Such knowledge may be obtained from other sources than the Institute. Thousands of bankers have acquired it through experience. The Institute merely provides the easiest and most direct way.

The Institute study course is divided into two parts each of which requires about a year of class or correspondence work under approved instructors. Part I pertains to Ranking and considers the subjects of "Wealth and Banking," "Bank Accounting," "Loans and Investments," "Clearing Houses and Trust and Savings Institutions," and a final examination in review. Part II pertains to Law and considers commercial law in general and banking law in particular, with special reference to negotiable instruments. The lesson pamphlets pertaining to Law cover the subjects of "Laws of Contracts." "Agency and Associations," "Sales and Bailments," "Negotiable Instruments" and a final examination in review. Credit is given severally for final examinations successfully undergone, but Institute certificates are issued only to students who have passed final examinations in both parts of the Institute study course.

In suitable cities students of banking are organized in chapters. Such organizations have been phenominally successful, not only in membership but in educational results. Practical experience, however, has demonstrated the fact that chapter success depends upon recognition of the Institute course of study as the basis of all chapter

work.

Miscellaneous lectures and debates are valuable adjuncts, but when such features are made paramount the best educational results are not attained. General meetings consisting of addresses and discussions on banking and kindred subjects should be held monthly from September to May inclusive and class work in the Institute study course should be conducted weekly. during the same period, except, perhaps, during weeks in which general meetings are held.

Outside of study classes in city chapters, equally effective instruction is provided by the Correspondence Chapter. In correspondence instruction each student is supplied with the serial lesson pamphlets and collateral exercises. The exercises in connection with each lesson are to be submitted to instructors whenever done. The work of students thus produced is corrected and returned with such criticisms and suggestions as may be helpful in each case. The correspondence method of study lacks the inspiration of social contact, but the personal relationship established between students and instructors stimulates ambition, and the fact that all lessons must be written insures thought and thoroughness. Former opposition to correspondence instruction-due partly to honest ignorance and partly to hatred of all education as tending to promote the merit system-has been mostly overcome; and the Correspondence Chapter of the Institute is now receiving such substantial recognition as it has long deserved.

R. L. Rutter Brings Optimistic Reports

One of the recent visitors in New York was Vice-President R. L. Rutter, of the Spokane and Eastern Trust Company of Spokane, Wash. He brought cheerful accounts of the prosperous conditions which prevail on the Pacific Coast and particularly in the Pacific Northwest. The live-stock industry and mining operations are on an extensive scale. Trust companies, says Mr. Rutter, are commanding a steady increase of business because of the enterprising manner in which they serve their communities and their reputation for conservatism.

Advertising is a very difficult subject for anyone with a conscience to talk about. Those who are interested in promoting advertising have no difficulty in talking about it. Newspapers will publish columns in which they state that if you advertise in their papers and keep it up long enough you will be sure to prosper. The magazines seem to have the same opinion, and the advertising agencies, if I may judge from the brochures that come to my desk every week, likewise seem to be thoroughly converted to the opinion that if you advertise often enough and in sufficient quantities and for a long enough period, that prosperity will be sure to come to you.

However, I represent a company that has been a liberal advertiser for 25 years, and during the last ten years we have spent $50,000 each year in advertising, and yet I do not think that there is a single officer in that company who is satisfied beyond doubt of the success of our advertising compaign. When business is good and we have more than we can do, we keep on advertising because our advertising friends have taught us that there is danger of some of our clients getting away from us. When business is poor, we are usually convinced that the real estate market is dead and there is no business. Nevertheless, we keep on advertising because our advertising friends again have taught us that when people are not busy, they have time to read advertisements and we are preparing the way for better times to come. It is a good deal like a man who has grabbed a troublesome dog by the tail and is swinging it around him. We are afraid to let go for fear of the results.

My friends meet me on the street and will say "That was a good ad of yours last night." I try to lock modest and all that but have a feeling deep down inside of me that if I had taken the $200, $300 or $400 that that ad cost and had handed it out to

From address delivered at a recent meeting of the Bank Felicity Association of New York City.

our soliciting department to spend on lunches or cigars for our clients or near clients, that it would have done just as much or perhaps more good for the company. However, we are agreed. I think, that when we do advertise, the better copy we have the better will be the result.

Unfortunately, it seems that it is impossible for a bank to use any kind of good copy. It is hard to say just why this is because there is nothing that interests a man more than his money, and it ought to be that copy with human interest in it could be written around an advertisement pertaining to the care of a man's money. The reason probably is that there are a great many good banks and they are all more or less alike in what they do. One bank may be stronger than another or render better service, but the advertisements of all the banks look very much alike. As a matter of fact, the stronger the bank, the less alluring its advertisements become, the stronger bank knows it must make good what it promises.

It is a little unwise to bubble over with enthusiasm when you are writing a bank ad. If you advertise in large letters "WE WANT YOUR ACCOUNT" with the word "YOUR" underlined, and the next day a man comes in with the advertisement, bringing with him fifty greasy one dollar bills, representing the savings of a lifetime and kept up to date in an old sock, no doubt, and you try to explain to him that it takes from two to five hundred dollars to open an account, the atmosphere of cordiality receives a chill and if that man ever gets to a point where he has enough and plenty to open a bank account, the chances are he will not bring it to you.

If a slick, looking individual who looks in a way like an amateur or professional Jim the Penman calls to see you about opening an account, and yet can refer to no one who knows him, and you have to explain to him that he cannot open an account, since he cannot be suitably introduced, the chances are he will remember the interview unpleasantly.

The advertisement for deposits nearly always draws a certain number of fickle individuals who shift around from one bank to another. The accounts may be large enough in themselves but require a great deal of attention. They are generally people who want to spend the greater part of the day talking over their personal affairs with the officers of the bank. The result is that they take up more time than their money is worth. They have worn their welcome out in their own bank and are attracted by your advertisement in the hope that they can begin all over again with your people.

Under these circumstances the bank advertiser is a little apt to be discouraged and to think that it is just as well to cut out all bank advertising. He comes to the conclusion that bank advertising is useless anyhow because most people have accounts, and you are doubtful of the desirability of one bank trying to steal away accounts from the other. You have the feeling, perhaps, that in a few weeks the temporary flurry of high money that has made you want to increase the number of your depositors will be over, and that money will again be a drug on the market and these accounts that you have received at high prices will be worth less to you than you paid for them.

There are many men engaged in business whose business is growing larger, and who find that their neighborhood bank no longer supplies them with all of the accommodation they need. They want a larger and better bank. There are some men, also, whose affairs in the world are gradually improving, and they find at the end of the month that they have some money left over after paying their bills. These men need a bank. There are some people who are legitimately dissatisfied with the bank that they are using at present. Perhaps they are doubtful as to its solvency. Perhaps they do not get there the service or accommodation they need. The question is how to find these people. You have something that will be useful to them. How can you come in contact with them? If you had a list of them you would send them circulars or you would go to see them and show how your bank could serve them. They are somewhere among the seven million people in Greater New York.

It is out of the question to send circulars to the.n. One edition of seven million and the accompanying postage would be a heavy drain on almost any institution represented here tonight and the circulars would not be effective because probably rot more than

one person out of ten thousand is at present a live prospect for your business. Most of your circulars would be wasted and forgotten.

You must do some kind of advertising that will keep you in the mind of possible users of your bank, so that they may think of you when the time comes, when they want a bank, be that time one month from now, one year from now, or ten years from now.

In my opinion, the standard daily newspapers of New York City are the best me- . diums to accomplish this result. My reason for this is as follows: Every man who is apt to have money enough for a bank deposit reads a daily paper. He may not read the same paper every day and some days he may read no paper. He may not read it with equal attention each day but sometime, each day, it is his intention to spend some time with one of the standard, daily papers.

If you advertise once or twice a week in all of the standard daily papers, ultimately you will reach that man. At first, he will not be conscious of your advertisement at all. The first effect of your advertisement will be on his subconscious self. The advertisement will have an effect on him without his knowing it. At a later time, it will penetrate to his subconscious self and in time, may affect him to such an extent that he will begin to look for it and will take a definite, decided interest in it.

It is your object to make a mental photograph on that man's mind that gradually will inspire him with an interest and a desire to use your bank. By the use of the daily papers continuously, you are sure to accomplish this result. Therefore, it is unnecessary to attack the man on any side line such as his religious side or his business side or his amusement side or the society side. You are only spreading your ammunition unnecessarily. If you do get him both times by using both papers, you are really duplicating your advertisement for if you get him the first time through his daily paper, it is not necessary to get him the second time through another paper. It will be infinitely better to increase the number of advertisements in the standard daily papers than to try to reach the man from another standpoint as well as this one.

The amount of space you use and the number of times you advertise vary according to the size of the bank and the amount of money that you want to spend. It is my advice that you say something in each one of the advertisements.

I am presuming that you will work through some good agency that will place your copy. This costs you nothing and you get a great deal of help even if it is only clerical help. Agencies can help you write your copy and I would insist that the agency does help you. You will not be able to use all of the copy that they write. it will probably be much longer than you will want and will probably promise a great deal more than you will dare print but the ideas in it often will be good and you can adopt many of them.

Talk over your ads. with your cashiers and tellers and the people who meet the general public. They are in the habit of pleasing the general public and they know what to say.. Be on the lookout for advertising ideas and you will find that you have more copy on hand than you can use.

I think it is of advantage -to have your advertisements of a general, similar appearance, enough so that they will be recognized as an advertisement belonging distinctly to you even though the person does not take time to stop to read them. The Title Guarantee and Trust Company uses always the same type and the same border. Our type is inade for us especially and is not used by anyone else.

I believe in using plenty of white space. If you are going to use fifty lines, single column, I think you will get better results, for the purpose of making a general impression, if you do not use more than one hundred words in this space than you will if you use 200 words. I repeat that I think you ought to say something in every ad. The publication of your name, your address, your capital and surplus and the names of the officers and directors is all interesting to brother bankers. but does not influence the general public one-half as much as we think.

i do not mean to discredit the use of circulars. I think every good bank should have several of them to send out as an invitation to strangers. They should be left freely around your counters where visitors can carry them off and read how fine a bank they are patronizing. You should circularize by mail your immediate neighborhood. A great deal of brains is necessary in telling where to send circulars. You must think over your lists very carefully and try to pick out those people who ought to make use of your bank and the same care must be taken in picking out the papers of the people who read them and who want to make use of your bank