27
THE CHICAGO BANKER
September 18, 1909]
Costs nothing to see it
Popular on the links
The Rustless Steel Golf Club
Our address is upon	£r	r	,	, r
every club. We ship	Lan be purchased from
inspection, and if	M Chicago Golf Shop, 225 Dearborn St., Chicago, 111.
weighty balance	if׳ Golcher Bros., 510 Market St... .San Francisco, Cal.
and angle are not	# W. S. Brown..............523 Wood St., Pittsburg, Pa.
factory1 returrf" // F' ®asc^e & ^on................Green Bay, Wisconsin
at O u׳r ex-	// Kelly Hardware Co., 120 W. Superior St., Duluth, Minn.
pense and	// H. E. Plusted.............118 E. Main St., Galesburg, 111.
w e will	// Arthur L. Johnson.......180 Devonshire St., Boston, Mass.
second"1	// Grand Leader...........................St. Louis, Missouri
ship-	// Robert Forgan & Son..................St. Andrews, Scotland
rnent.	// Von Lengerke & Detmold.......200 Fifth Ave., New York, N. Y.
// These Clubs defy age and atmosphere, and give 25% greater // distance to the ball. If you don’t believe it, send for our hand-Jf some catalog and book of testimonials and learn why.
/	THE RUSTLESS GOLF CLUB CO.
Jjl.lTEIpr	1055 Old Colony Building, Chicago
H. T. HOLTZ & CO.
Municipal '11	1 Railroad
School	I>OimS Corporation
Furnishing Safe Investments for
NATIONAL BANKS	STATE BANKS	TRUST COMPANIES
SAVINGS BANKS	ESTATES	INSTITUTIONS
We invite correspondence and inquiries relative to the Bonds owned and offered by us and shall be pleased to send our D.-scriptive Circulars on request, together with our latest publication entitled “FOR THE INFORMATION OF CONSERVATIVE INVESTORS.”
171 LA SALLE ST.	Tel. Randolph 1170	CHICAGO
Korona Cameras
reach a state of perfection which can only result from many years of constant improvement.
In purchasing a KORONA you get the benefit of all the experience we have had in making cameras, dating from the beginning of amateur photography.
You must examine a Korona to realize how much can be done by superior knowledge to excel the ordinary camera construction.
IIS All I t IN THE
\LENS/
A^K YOUR DEALER
for a catalogue for 1909 of Korona Cameras. It contains much interesting information about our lenses and other goods.
Gundlach-Manhattan Optical Company
817 So. Clinton Ave., Rochester, N. Y.
that the people as a rule do not understand the distinction between a bank chartered to receive savirps deposits and the ordinary bank discount and deposit or other institution operating■ a so-called “savings” or “interest” department maintained clearly in evasion of its chartered functions. It is for that reason that we should go farther, in my opinion, and urge the adoption of a general law in the nation as well as in the states, that any institution chartered by either, which holds itself out to the public to receive savings deposits, should be required to segregate them and invest them in a definite and prescribed manner. Thus, in my opinion, many, if not all, of the alleged reasons for the insurance of de- • posits and the establishment of postal savings depositories would disappear.
We cannot turn back and undo the past, but can urge the adoption of such general laws as shall bring about these much desired results. In this connection, the suggestion may not be out of place, that the monetary commission might very properly give this subject its very best consideration.
Breaking Away from Established Principles
We may disagree with the advocates of both the insurance of deposits and the postal savings plans, but we must admit that we have been gradually breaking away from some of our more conservative and well established principles, so far at least, as the safeguarding of our savings deposits are concerned.
This is apparent in the masterly argument of Professor Laughlin, in the July Scribner’s of last year, in opposition to the insurance of deposits. Though he treated his subject from purely a national standpoint, yet he found occasion to remark :
“Protection for depositors in savings banks (or small private banks) is a little dif-
H. M. ZIMMERMAN
Lansing, Michigan
mentioned, in which banks may be organized to transact both a commercial and savings business, have recognized this important distinction and have sought to safeguard savings deposits by requiring the banks to segregate such deposits and invest them only in the most stable securities. Michigan, I believe, is conceded to be the pioneer state in the adoption of such legislation. Distinction Not Understood
Though some states have incorporated such provisions in their banking laws, yet it is known
and sundry so-called “savings” and “interest" departments in our commercial banks, trust companies, building and loan associations, etc., now so common everywhere, gives us much evidence of such a condition of affairs. Thus it is not surprising that the insurance of deposits and the postal savings plans have and are now being so vigorously and effectively discussed.
Savings deposits have always been regarded as “trust funds,” when left with “trustee” or “mutual” savings banks, and surely should be so regarded, both legally as well as morally when placed with any other institution. The character of such deposits is certainly not changed no matter what the character of the corporation or association may be into whose hands they are placed. The investment of such funds in ordinary commercial business risks would not be countenanced by the courts if in the hands of administrators or guardians. Neither should it be countenanced when these funds are in the hands of corporations which are not required by the laws of the state in which they operate to invest them in the most stable securities to be had.
The commercial depositor’s money is received under far different circumstances. He expects to leave his money with the bank for convenience and as he may need it in his business. It does not represent his “all.” His deposit is very frequently made and received by the bank with the express understanding that in consideration of the use of his funds the bank should extend a line of credit to him to carry on his business. A loss to him in case of suspension or failure of the bank does not mean so much in any sense as it does to the savings depositor. The distinction between a savings deposit and a commercial deposit is so apparent and well understood that it requires no elaboration.
The law makers of the states which I have