, 1865-03-07
THE WISCONSIN LEG1SLA-
-TU8Ee
L Project 10 Protect Stumptn1l
Bankers.

N<->A
Wisconsin Legislature, compelling each for
cign insurance company doing business in
the State to deposit with the State Treasurer
$25 900 In Wisconsin State Bonds, al par. If
they can be had, or II not, the same amount
of six per cent bonds of the United States, 50
as to secure the public against any failure Of
these companies to pay Losses. It is claimed
by many that this Is scheme to relieve the
bankers Of The State, who, under the recently
enacted law taxing State bank issues ten per
cent per annum, will be compelled to With
draw their circulation, which is secured By
Wisconsin State bonds, By providing mar
lct for them at gar. It is further charged
That these bonds were purchased BY the
banks at seventy cents On the dollar, and
that, on account Of the manner In which they
were issued, their legality is called In ques-
tion, and that they are consequently at pres
ent unmarkctable. There are other objec-
tions raised against The bill, but they are off
minor character.
The following is circular which has been
handed to Us for publication, in which will
bc found some very pointed question: On the
subject:
NINE QUESTIONS FOR TIE CONSIDERATION or ORR
SENATOR'S AND REPRESENTATIVES BEFORE ACT
ING Upon noTsr ELL NO. 20.
let II additional security against loss to the
be, as purported, the real object Of this bill IL It
not remarkably strange that this necessity has
never before developed itself: It is generally
people or this State through an insurance Com
pany IN the past ten years. For what reasons,
then, is this bill now brought forTards
ctple OF requiring insurance companies to depost6
securities With the stsre Treasurerrof the protec-
lion Of the insured, be . correct one, should not
amount Of the risks incurred By each Of The com
psnIes, and not euch a proporu1nate'y trlafns
Rus2 as tsst named 1s IN TIC nnose oin1 H.
would not Its adoption drive from the State every
dollar Of foreign capital invested in the Insurance
business In this state7 And Il go, wonld this bs
IL. i .ecurity to the people be the resi- and
only object Of this btll and this principle should
6s ss sse eoa
at pars" Why not require them 10 keep CERTAIN
sum Of money deposited with the Treasurer in
current market valne, as the companies MAJ elect
Ito keep this valuation good ut the call Of the
sid. When has the principle Of requiring either
corporations or indiIidua1s to give security for
the faithful discharges Of their obligations
Sver btGss %s, been 81. s;eps BY a,aIs
cept in cases were sach obligations werr 70 Be
sd Fcas 1na 1enn q q &c unas5
equal propriety IL asking i bank to deposit
ss of a1 4aeoad
SssS ssi ID 'sss legislation be eFe's'' ane0n
.6th. le not this qui'e recently assumed neces-
Hity for security, as well the assumed correct
eeft,n sfa n 5 of aae @ of esryps
out certain personal. selfish enaae And II SO.
should Legislature leRaslating for The best inter
sss ., gssat people, hsten' for moment to
~. + not his assumption pnt forth alone By
tae ssaDP oapaps ps
Pan1es doing business IN This State 70 nuy up the
bonds now held By the State b9nEe !: In word,
without my oisingcnuity or special pleading, has
not this hill been brought forward by the bankers
Of this State solely and exclusively for the pur-
pose Of compelling, under the forfeiture Of their
license, the insurance companies to assume an an-
conversion ofthe sceuHtaes held by them and all
10 the people, upon the part of insurance comp3-
mics. f91 The payment fthei1 obligations:
Eth Il the principle Of compelling insurance
With the state Treasurer as proposed. Be tncof.
r+ci y unconstitutional as no round mind will
deny Il procedure never before heard OF in any
sate IN te qnio1 .he banking l1ffSft s 1l PR
ground that that the income OF these companies
3s large in the STATE, and consequently they can
1Uord to inveet in these bonds OF the State now
held by the banks, and thus relieve these inst1tu.
Hons Of q loss which they expect otherwise to be
Obliged to make in their conversion, we say:
II they .i1l pcsslst IN he passage
OF this bill upon This ground, how il
euch - plea better than that Of the highway.
man-ths plea thst might makes sl$hs1ths lay 81
ing the licences Of those companies, has the pow
e., end consequently should exercise it. regard
less Of equity or jnstce, md thus impose upoz
thcee foreign companies an imposition and extos
ton, to saSe our 6anks against their own legia
male lossce. With eq1al propHcty the 6tatt
might eneraft into this bill clause compelling
these Insurance Companies to take up ali the Gus
pended paper held IN the vauits Of these banke
and make good q! their past losses. These com
panies give quid pro quo for their income in TIL
State, Which is only moderately rcmuuerative-
upon the immense capital which they Lave Unrest
ed here, and ulroh thfs income they pay the Stat'
tax Of sptr cent, tax imposed oy no other stas
in the Union.
sumptions. shall 80 gross scheme Of injustice ami
e1tort1on 20 upon onr statute book or be indlci
cd upon any interest in our young and proaperou
Etate8