Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1868-10-27
Communicated
Savings Banks Vote against Them.

One vote for them will hatch out
the whole brood, unless somebody
votes against them.
The voters of Wisconsin are to
pass upon some ten or dozen pro>
posed charters of institutions TO be
called, perhaps loosely, Savings
Banks" this fall
What are they? Chapter 20 OF our
Revised Statutes provides way for
the incorporation of"Savings institu>
TONS" Why don't these would be
corporators follow that plan =?
Under one of these proposed char
tiers, and they are all of the same
character. a Savings Bank with a
nominal capital of 100000 may
be started on an actual cash capital
of 100000 that is, by the stock
holders paying in t,oenty per cent Of
the capital stock. 1t may then receive
deposits from everybody, including
married women and children, and as
sac letters Of credit and other CONNER
cjat obligations" TO an unlimited
amount if they see fit and can get
people 10 take them. 1t may then
invest its capital stock and ''aH mon
cys received on deposit" in almost any,
thing it chooses from a u. s. Bond
down to $50, 600 sand bank, like our
bogus insurance companies, only 40
the estimated value (and who is to
estimate p Of the real is twice as much
the investment. 1t may lawfully in,
vest depositor's money as well as its
capital stock, at par. in any State
bonds and most Of them, (the CHAR
ters differ little in this respect il
the stock or loan Of any incorporated
company of this State no matter
whether or not such State bonds,
stock or loan il worth fifteen cents
on the dollar.
Suppose now the thing smashes.-
Each stakeholder is then individually
responsible for tho debts and liabili-
ties of the concern to the amount Of
stock he holds, in addition to the TWEEN
ty per cent. first paid in and no more.
But it may lose by spectators in
0cks, nine tenths of such specula-
ors do lose, and even if its managers
are honest, its liabilities may be three
or four times its capital stock. Then
where are depositors and holders OF
its paper to get their pay from
they must take q small per cent. on
the dollar.
But suppose the stockholders are
without property, in fact, are not re-
sponsible even to the amount of their
capital stock, the law don't ire
it, and they are much more liable to
be irresponsible, and suppose further,
the twenty per cent. paid in with all
deposits, have been invested in Wis
consin River sand banks, or depre.
ciated bonds and stocks, even their
own stocks, if they choose, at par, itf
creditors then get nothing
The corporators of savings institu'
tons established under the prov i1ions
of the Revised Statutes are indiUidu-
ally liable for all moneys deposited
with them And in no case can they
take rs security for moneys invested
any stocks or bonds at more than
/ their current mdrket udiue.
The only material differences be-
tween these two plans Of Saving:
Banks, are summed up in the great
! ly increased safety to the people, o.
the statutory institution
If the right these proposed institu
tons seek, to tissue letters of credi
and other commercial obligations,
means anything more than is giyet
by the Revised Statutes, it means thu
right to issue shinplasters not mad
to be circulated as money, but which
they will endeavor to force people Il
use as money just as we hay seer
such things done heretofore.
Do the people want such Savings(?
Banks as these proposed charter
would establish If not, the election
notices published by tie Sheritfs il
all the County papers show how L
vote against them. B.