The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1908-04-09


general adoption, because in my CON
ception ii appeared so beneficial and so
simple of accomplishment. But at last
see signs that the idea has taken root.
The people, who so far were not ac-
quainted with it, have had their atten-
ton drawn to it, are discussing it, going
through an educational campaign, and
| feel sure as soon as it is throughly un-
derstood, our legislators cannot resist
the demand for legislation giving abso-
lutte protection of deposits. Therefore
all should interest themselves for this
cause, whereby the adoption of the
plan will be sooner attained.
The Congress has now been in SEES
sion for over three months and the main
bills it is considering, as remedy to
prevent bank pancs are those which
aim To change our bond secured bank
notes. How ridiculous. Not a single
person had the least fear of the safety of
these in the worst of panics. There is
|
why NEEDLE with them.
The only remedy To prevent bank
runs lies III assuring the dcpOsitors
that there is absolutely no danger at
any time for the safety of their money
i'll bank. our currency cannot be
made safer than it is, no one has the
least doubt of it; then let it alone, but
the deposits in bank are the cause of
fear and alone precipitate pancs.
! Therefore the remedy should be APP
piled to that part of the financial body
which is diseased and this is the de-
| posts.
fall deposits in bank are insured
under government control, the deposit
or cares no more of the solvcncy of the
bank in which he has his money than
he now cares about the bank against
which he holds bank notes. He knows,
even if his bank fails. his deposits are
| secure.
Assct-clastic, flexible, central bank
or any other kind of expansive currcn-
cy, as Comptroller Eckcls say, will not
prevent fear, and give no relief, how
ever large, but only add 10 the hoard
ing. Why, then, by more currency in
| tcnsify distruSt?
| The insuring of deposits under GOV
crnmcnt control would bring nj least
| five times more money out of boarding
and into banks and circulation than by
all the different plans proposed, and
what is the main thing, 1rdtOW jeWy
wHhdrurH through fear of safety, be
cause it would bc the safest place to
keep il. 1t also would not create a single
dollar more liability.
If deposits were insured the banks
would not need the immense cash re
serves remaining idle in their vaults,
| preparatory for run, of which the ma
tional banks alone carry about $1,000,
600, 900. One-half of this would be
Why, then, not rather compc! national
banks to insure their dvpositors?
If we had had such insurance in the
panic of 1898 we would have had no
panic then, would have had none now,
nor ,r0uid ne ercr hare one again.
How much nervous strain. anxiety
and worry could have been spared by II
whole population, when all this wreck
age could and can ho saved by npaltry
sum of about 81 zoe, 900 annually.
Why, the san Francisco calamity
loss was over 300 times more in few
hours, than the dopositor's loss is in Il
whole year.
Some may think that deposit insurance
is too vast II problem to undertake, but
is il?
one simple insurance company, with
II capital of only $3.50, 600, and with
$40, 000, 600 premium rcccipts,pay every
year, $4,000, 600 losses, which is four
times more than the average yearly
losses have been To dcpositorS in nation
nj banks as long as they have existed,
now about iorty-throc years.
\ Milwaukee fire insurance com
pany, paid in the san Francisco fire
year more losses than it would have
paid if ii had paid all losses sustained
by dcpostors in failed national banks
in that year.