The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1911-06-01
MANI T0W0C BANKER
AT CONVENTION.

John Schuette attended the bankers
meeting at Oklahoma City last week
and was one of the speakers. In its
report of the convention The Daily
Oklahoman has the following to say
regarding Mr.. Schuette's address:
A feature of the afternoon session
was the address Of John Schuetue, OF
Manitowoc, Wis, who spoke on the
fund guarantee system. He is known
as ''the father of the bank guaranty
idea"
Mr.. Schuette declared that Oklahoma
is known to the world as the originator
of the safest banking system on earth
-asystem that will eventually be adopt
ed by every other state and possibly
all the nations of the earth.
"There is nothing since the birth of
our country that will give so much re-
lief to our people than absolutely safe
guarding their money and eliminating
bank panics" he said.
The speaker took up the inception
of the law ard its objects, saying that
it was framed To protect depositors, to
prevent recurring bank panics, to in
duce bankers, for their own protection,
to aid in having safer laws, stricter
more thorough exam
nation, and, in brief, practice safer
banking.
The operation of the law and the
benefits, which have followed its adop-
ton, were then taken up at more
length.
The exemption of banks from taxes
was advocated.
"Those bankers who are compelled
to guarantee their depositors should
not be compelled to bear alone the ex-
pense to which all new ventures in
their pioneer days are subject" he said,
''and especially not in the trying days
of the bankers of Oklahoma. For
these reasons | find it most equitable,
just and fair that your state in small
degree aid the banks in the good cause
by eXempting them from taxation,
which, as soon rs conditions become
normal, may be repealed. Whatever
this aid may be, it will not amount to
the thousandth part of the benefit the
people of the state derive from the
deposit guarantee. There is no doubt
that if this is brought to the attention
of the legislature and the people, all
will be heartily in favor of it,"
Mr.. Schuette urged another feature,
and tiiao is To encourage the organiza-
tion of insurance companies, or casual
ty companies, to insure commercial
notes.
The field for such insurance is yet
uneXplored and it undoubtedly would
prove immensely profitable.
The speaker gave many "reminiscences
of his own banking career, and talked
in general terms of the banking bust
ness. "The failure of a banker carries
with it more bodily risk than that of
any other man. 1t strikes larger
and more are dependent upon
the amounts they have deposited" he
said.
The subject of loans was ably dis
cussed. "The safest and best are first
real estate mortgages on farms at
three. fourths actual value; the second
on city and village real estate at two
thirds value, then on factories, upon
which loans should be made only in
limited amounts" he said. The speak
er then went into a detailed account of
all kinds of securities.
The closing part of the address dealt
with the possibilities of postal banks,
which, he said, are here, and bankers
more than ever will be compelled to
meet the government guarantee. Had
banks insured their deposits a few
years ago, they would have forestalled
the postal banks, he said.
"We cannot logislate to prevent
business depressions or hard times, we
cannot legislate to prevent bank fail
ures, but we can prevent the loss to
depositors after the bank has failed,
and thereby prevent disasters which
follow in its track" he concluded.