[Volume XXV
THE CHICAGO BANKER
20
others either dishonest or incompetent over whom he has neither authority or control. It places honest bankers on a par with the corrupt and dishonest, the old and firmly established in the same class with the new and untried. It claims all the benefits of a guaranty fund which we have shown does not guarantee. It withdraws from the circulation of the country millions of dollars, entailing tremendous loss to both depositor and banker. Gentlemen, it shakes the very keystone of our banking system, confidence.
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“The Amateur Motorist”
The great publishing house of A: C. Ivlc-Clurg & Co., of this city, has brought out an American edition of “The Amateur Motorist” by Max Pemberton, motoring editor of an important English paper. It is just as thoroughly practical as it is thoroughly English. When Mr. Pemberton advises one to keep out of the “mews" he means the alleys, as in Chicago they are known. The text is as free from technical terms as such a treatise well can be, and such descriptions of machinery and appliances, as are necessary must be comprehensible to any owner of an automobile if he is to understand it properly. Amusingly written, yet with solid instruction and advice on every page, it covers thoroughly the field, not only in respect of self-propelled carriages, but of autocycles and autoboats as well. It is fully illustrated, both with diagrams and reproduced photographs. The care of the engine, theory of carburetion, management of the chauffeur, the garage, and tips on driving are good samples of the chapters. The book contains 325 pages, 68 illustrations and sells at $1.75 net.
V•
Move against Unlicensed Brokers
Philadelphia, November 11,—Charged with acting as an insurance broker without being licensed by the State Insurance Department, R. S. Shaffer, of No. 960 North Alder Street, waived a hearing before Magistrate Eisen-brown and was held in $500 bail. He was arrested on a warrant sworn out by W. H. Haz-lett, of the Insurance Commissioner’s Department. It was stated that there are a number of persons transacting business as insurance brokers who have not the necessary license and that all such will be arrested.
monetary commission, who are now studying the systems throughout the world and are about to render a preliminary report to the government and before another year has passed the first of the new laws will undoubtedly be passed. They contend that the rate of loss to the depositor has been small in the past and a tax equivalent to the amount lost in the past will be ample to cover the losses in the future. Let us see, they would remove the need of the greatest asset of any bank, confidence, and drag all banks down to a low standard, open the field to all. good, bad, and
H. RUSSELL ROSS Chicago
indifferent, and then expect the same high standard of banking as in the past and the same small ratio of loss. Such a proposition is absurd. Every banker under the proposed scheme with the competition it would create would of necessity take chances that at the present time he would not dare to take. We have shown that the interests of the depositor and the banker are identical, that the proposed scheme is wrong in principle. It compels the conservative banker to guarantee the losses of
power to use them. If we neglect to use these Godgiven qualities, should we blame others or seek (like little chickens running to their mother) to crawl under the government's wing and beg to be taken care of? Having studied carefully the resources of an institution, the personnel of its officers, directors, and stockholders, and having .entire confidence in their honesty and reliability, you deposit with them your funds, yet these weaklings wish the government to sandbag you to protect them from the losses which would be incurred by the overambitious, unintelligent, speculative, or absolutely dishonest men who pose as financial towers of strength.
Unquestionably, the greater protection we give the depositor the better. Protection is the cry of the age. Give to the depositor the protection of the highest grade of banker—the conservative man of high morals and ideals who has spent the best' years of his life in building a reputation for honesty, integrity and conservatism that his bank may achieve a reputation far-reaching—give to the banker as well as the depositor the protection of more thorough examinations by men of greater experience—place these men under the civil service laws—assign them to smaller districts—divorce this branch of the government service entirely from politics and place it on such a high pinnacle that men of great ability will consider it both an honor and a privilege to serve in that capacity. Further—let each clearing house association employ an examiner to examine only the banks of the association and report irregularities to the clearing house committee so that they may protect themselves in times of plenty, as well as panic. Each examiner will act as a check on the other.
In conclusion—our opponents claim this scheme would insure deposits. Insurance is only practical where both the company and the insured are interested in preventing loss, but in this case the depositor cares not a rap who makes the losses and only looks to the banker who will give him greatest accommodation. Further—they assert it will prevent panics— nothing can prevent them under our present currency system and the great remedy for most of our present ills must lie in the revision of the present laws—not a radical change undertaken hurriedly, but measures acted on thoughtfully and deliberately. The government appointed a committee known as the