The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1915-05-20
ANTE BELLUM DAYS BANKING,
(By John Schuette, }


vogue, we had the most chaotic banking
system imaginable. Our bank notes
were issued by Tom, Dick and Harry
under different state laws. Some were
secured by state bonds, and many not
at all, only 10y the asset of the bank
and redeemable in gold on demand. In
order to make redemption difficult and
hazardous, some banks were purposely
located in the back woods, when not
easily accessible; and in panic times it
was rumored that robbers were in the
woods watching to rob those who might
take the risk To redeem their bank
notes in gold. Consequently, AS life is
dearer than gold, at such located banks,
redemptons were reluctantly made.
In these days bank S assets consist
ed mainly in its own note as deposits
were few. The many bank runs We
had then, were not made so much to
draw out deposits, but to draw out
gol |, for banks bank notes These
villa cat bank notes were the most teX-
ible; they circulated like a cyclone
every one wanted to get rid of them
as Son as possible for fear they might
| die over night.
The front page Of newspapers had a
column of bank news, which was the
most important and scanned with the
same eagernesS as our war news are
DOW. This column would display the
names of the failed banks, the doubt
ful and the discounts on bank notes
running from to 100. Then followed
the new counterfeit. Then the paper
arrived, which was only once week,
those who had few dollars would come
to the stores and nervously scan over
the bank news and if, happily, his few
dollars were not affected, would treat
the crowd with fee whisky
Every trader had to have a Thompson
Bank Note Detector which had to be
consulted on most bank notes before
taken The Canadian bank notes
were considered the best, then those
of the Eastern States, and last the
Western and southern States.
just think Of the worry over even
the little money then in existence, and
the enormous time wasted in their eX.
animation. Every bank had to have an
expert, with a magnifylng class to de-
tect counterfeit and, then, was not
sure. remember when assisting my
father, after school hours, IN his store
and appointed To pass on Il bank note.
1t was in the evening when the team
sters and wood choppers, exc, would
congregate in our little store drink
free whisky, smoke tobacco and spin
yarns. A customer bought n piece of
pork and quart Of brandy, and hand
ed my father a two dollar bill, which
father gave me for inspection. 1t was
from down South, which we always
looked upOn with suspicion. | took
down the ,detector, found the state, the
city and the bank 1t said that there
were counterfeits on the two dollar de.
nominations That IN the genuine,
The right hand horse "in the group Of
three horses, had its tail hanging
down in natural normal position:
while in the counterfeit, it. was more
inclined to the horizontal. This was
corker. Father, impatjently asked
"WeIl. can't you find it?" YES"
said 81 have the bank alright, but
there ave two dollar counterteitS and
can find out about the horses tail,
Then one Of The teamsters heard about
Horse Tail, at which he prided himself
an expert. He said, "Johny, what do
you know about horsesY Let me see.
He scanned the bank note and said,
THAT off horse, | tell you, is high
flyer: vicious critter. would not
wonder if we look at him mu'h longer
he will have that tail away in the air,
All got up from nail kegs, soap and
mysterious tail and roared laughing,
that the windows ratified, which was
worth more THAI the Two dollar bill,
but it did not settle the genuineneSs
From the laughing tears, all became
so dry that they proceeded to take the
whisky barrel for replenishment My
father, too, WAS carried away with the
general hilarity and concluded we
might risk to accept the Two dollar
bill, as there was a big profit on the
brandy and gave it the benefit Of the
doubt. He thought by throwing the
bill under the others in the drawer, it
might keep the inclIning tail down to
normal.
SO the two dollar bill was mixed
with the rest No one knew TO whom
it was given, and for all we know the
horse might carry its tail in the air in
the then bloody Kansas
After the Republican party came
into power, it made short work Of these
panic breeding Wild Cats, taxed il to
death, and substituted the National
Bank notes.
Which never caused Is -iuRle fcar
Though panCs Oft were lowering near
Millions on millions we're lost on the
Wild Cat State Bank notes, while not
a dollar had been lost on the National
Bank notes, the safest currency in all
the world and by ID, ADVENT, gave the