The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1902-05-08
John Schuette Writes in OppOSi'
ton of the Scheme.
CONTESTS ARGUMENT OF J. B. FORGEN
Would Insure DepOSitOrs Against Loss
and so Forth.
MR. scHuETTE LOYAL TO HIS OWN PLAN.
Doesn't Seem to Favor Being a Llttlf
Branch of a Big yrunk-A Crisp
and Concise Analysis.

John Schuette writes the following
letter on branch banking:
Editor Pilot:
my attention has been called to the
address delivered by James b. Forgen'
before the Milwaukee Bankers club, on
the subject of branch banking.
"Mr Forgen is the president OF the
First National Bank of Chicago, which
recently, by its consolidation with the
Metropolitan National Bank, has be-
come the second largest bank in the
United States, with capital of $780,
600, 900, but it seems he has not enough,
he wants the earth.
He figures out that if all the Mil
waukee, st. Paul, Minneapolis, Omaha,
Kansas City, and about sixty Illinois
banks become branches 10 his First
National Bank of Chicago, how much
more powerful he could WELD parent
al protectorate over all these little
children, and under which they could
seek shelter when a financial cyclone
threatened to swoop down upon them.
wondered that so many OF the little
Milwaukee banks intimated that they
might be willing to put themselves un-
der his guardianship
THE sum and substance of his re
marks, to show the benefits of such a
system was, that under the present in
dependent system. about 3S per cent
reserve was carried, an undue large
amount of idle funds; while under a
branch system, II per cent wCsald be all
sufficient, consequently there would be
large amount of money, now idle.
available for carrying on the business
of the country, which would benefit
commerce and at the same time give an
additional income to the bankers and
in brief make banking more profitable
He cites the Mon treal Bank of Cana
da, running forty eight branch banks
has only Is per cent reserve against Al
per cent shown by the proposed combi-
nation.
Now if the cash reserve in our banks
is already too large, there must be q
reason for it, what is it? Tue first rea-
son is, that there is no more need for it,
if it was the interest rate would not be
lower in this country than in any other,
and the second:
"The banks are keeping prepared for
any financial disturbance which may
arise so as to meet their obligations
The most radical cure for all these
supposed defects in our banking system,
can most easily be remedied by apply
ing the Insurance Fund System under
the control of the government, under
which all depostors in banks are in
sured if this were so, the banks would
need minimum cash reserve, as there
would be no more runs on banks as
there were no runs on our national
bank notes in the panic, and deposits
would increase out of the funds now
boarded without fear of bank failures
This system would give us more avail
able money and at the same time secure
the depositors
'All the agitation for branch banking
and asset currency is for naught, it saw
ors too much of trust, monopoly and
favortism, all of which are the most
obnoxious to the people, and as the
people represented in congress must
legislate on these IN 9asure5, 1T IL safe to
predict that it never will be done.
Anyone elected by the people will
be careful not to vote for any measure
which he knows will be his political
death.
The large majority of the bankers
will rather prefer to be under govern
ment control than little branch of a
large trunk.
JOHN SCHUETTE'.