The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1901-10-24
John Schuette's Plan for Much
Safer Banking
HIS PAPER AN EXHAUSTIVE ONE
Argues That His Method Would Prevent
Losses.
sARsHALs FIGURES TO PROVE HIS POINT
An Extremely Interesting Argument, Power
fully Put, to Secure DepositOrs Against
Bank Failures.

John Schuette of this city prepared
paper for the bankers convention hello
last week III Milwaukee. In preface tt
his paper Mr. Schuette writes
The gist Of the elaborate papers read
by Mr.. A. +. Stickney at the bankers
convention was that our banking sys'
tenn was very faulty, and that we ought
TO adopt the English system, which mas
one central Imperial Bank on which
most all other banks are depending lol
their existance and safety; and owing tc
which financial panics would be reduced
to minimum,
although there is not much prospect
that such a system will ever be adopted
in this country, still its presentation has
had its good effect in reminding us that
our system is defective, and needs repair,
which has set the bankers thinking
and gave them an incentive for devils
ing reforms, which the writer and most
likely many more will endeavor to sug-
gest; and here is a plan | would have
presented at the convention, If the
stringent rule and limited time in dis
cussing intelligently subject OF this
nature, had not made it impossible.
Banking Reforms
II have long cherished the fond hope,
that during my life time ] should have
the pleasure of seeing our banking sys-
tenn reformed which would approach the
ideal | well remember the first step
taken toward better banking system,
this was during the war times, when the
miserable wild cat then our only cur
repcy, was swept from the face OF the
earth; and what d blessing it was, when
the national bank note took its place,
which has never failed us, and on its
safety there never was even shadow
Of doubt, and the great prosperity OF
our ration from that time on may be in
a great measure ascribed to this system,
'Since then. thirty eight years have
passed. and no material advancement
for the safety in our banking has been
made, and as the first change has proven
80 successful. X seems to me that If we
can do anything to take other steps to-
ward reaching the perfection, we ought
to do so. Then the question arises, what
can we do? and | answer, insure de-
positors in banks against loss.
Insure Depositors.
This may startle some as vast
undertaking, why, to insure the mil
lions having billions on deposit? 1t
would be reckless scheme' But let
us see, is not most everything insurable
under the sun, and far more hazardous
than bank deposits?
There are many 500, 900 capital fire
insurance companies, insuring millions
over millions of property against fire
the risk of which is ten times that of
money lost in banks. One company in
the United States with capital of
three and one half million, carries over
one billion dollars fire risks, and pays
over five million dollars in fire losses
annually. This company alone could
insure all deposits in all banks, which is
about eight billion dollars, with less risk
than it carries now.
80 we see that the amount is not so
immense as it would appear on first
thought
A Feasible Plan.
Those who have followed from time
to time the annual comptroller reports,
must have been impressed with the idea,
that insuring depositors in banks is
most feasible; and wonder why it has
not been done long ago.
This plan is not new, but so far no
concerted action has been taken toward
its realization, and as individual exer-
tons can not attain the desired end in
no wise as effective as through the me-
dunn of all the banks combined, it
seems well worth the while for this con-
vention to ascertain whether there is
any merit in it or not 1t seems to me
if such system is once inaugurated,
and through the efforts of the bankers
themselves, the name and fame of our
association would go down in history as
having achieved the greatest triumph in
finance the world has ever seen, and in
stead OF the present existing prejudice
against bankers, seventy-fve million
would say God bless our bankers.
Imagine all the currency now good
without doubt, add to this all deposits