Mood of Banker Depends on Economy

A word of advice for the small businessmen like Mr. Kang [“Small-Business Loans a Big Lure for Banks,” Oct. 3] who are being courted by the banks: Study a little history.

Look back a little more than a decade to the small farmers who borrowed to the hilt on easy terms in flush times, then lost their farms when prices fell and loan payments didn’t. “Psst . . . hey, buddy, wanna buy a fancy new tractor?” has now become, “Psst . . . hey, buddy, wanna grow your business?”

But the ultimate lesson is the same: You’re going to pay that money back one way or another, and if the economy changes direction--no, when the economy changes direction--that friendly, generous banker isn’t going to be so friendly or generous.

JIM HOUGHTON

Encino