bank credit) to $1,176,000. Gosh, Sam, here we are millionaires before we lend a dime. And that whole $1,176,000 was gratis money given us just because we are bankers. Uncle Sam gave us the first $200,000 in appreciation of our buying some of his old bonds. Then when our friends came along and deposited their money with us, the Reserve Bank showed its appreciation of us by adding that $32,000 to our reserve fund, which offset the $32,000 we drew out to use in cashing our customers' cheques. Now that bank credit, total $1,176,000, is as much cash, money to us, Sam, as are those $32,000 deposits to our customers. For we can lend it, use it to buy investment obligations, and should we lend the whole amount, we would have in our vaults, notes, deeds, mortgages, and other good as gold papers totalling $1,176,000! And we can lend it this year, for people are hungry for money. Now, Sam, it does me good to look at those figures. So let's write them down again.
We own U.S. Bonds. $ 200,000 We have cash in the vaults 32,000 We have notes, etc. 1,176,000 " Ain't it a grand total. $1,408,000 ?
Say, Sam, why did we fool away the best part of our lives selling hams and harness? Well, I don't know, Tom. You know that bankers never told us anything about what a nice thing they have, I guess is the reason. We just didn't know this sort of thing could be done. Yes, replied Tom; but, Sam, I find that we can get more bank credits, if we will just ask for them. I understand that the Reserve authorities will buy corporation stock, and pay for it with a cheque against no funds. Our school bus factory here in South Austin is growing so fast that they are in great need of additional capital. [begin page 57] Let's show them how easy it is to issue stock, and sell the stock to the Reserve authorities. So Tom calls the President of the School Bus Factory and says, "Henry, you were talking to me the other day about your; need of a $1,000,000 for expansion and improvement. I have figured out a way to get the money. Come over and let's talk about it." Henry hurries over, for dangling a $1,000,000 before a hungry