Owingsville outlook. [volume] (Owingsville, Ky.) 1879-192?, 1898-08-04
The Northern Bank .

holders Of the Northern Bank meet
to take action upon winding up
that venerable institution. Ii is lit.
orally being taxed out Of existence.
principally by the city. il will take
$40, 900 annually to pay the city,
county, state and national taxation
on its present capital, surplus and
deposits. and this will leave little
to be divided as dividends 10 the
stockholders. The loss to the city
of Lexington if this bank goes out
of existence will be many times
more than the value of the tax it
pays. 1t has been a valuable insti-
tuition to Lexington in many ways
and has contributed to the pros
perity OF the city for more than 60
years. OF all the enterprises which
Lexington has lost in the last so
years this will be the most serious
loss of all. Without this bank Lex
ington becomes an insignificant viii
lagc without influence and with its
prestige lost. Sad will be the day
that sees the old Northern close its
doors. 1t may be necessary, but it
will be a calamity nevertheless.
At meeting of the stockholders
of the Northern Bank, held at it's
banking house in this city on
Thursday, there was a majority of
the stock represented, and on the
proposition to go into liquidation
and close business the vote was
III, 426 shares voted for it and only
five shares against it.
Thus closes the long and useful
career of one of the most valuable
monied institutions kentucky ever
had. 1t not only made money for
its stockholders for more than half
Il century, but on several important
occasions stayed panic and pre-
vented financial disaster here In
Lexington which otherwise might
have wrought ruin upon many. No
institution was ever more loyal
and helpful to its customers and it
was popularity believed that no man
who was IA customer of the Northern
Bank was ever permitted to lack
pecuniary assistance or suffered to
60 under for want of noedful sup
port. That cOncateratiCn of
unavoidable circumstances has
brought the useful career Of this old
institution to a close is a matter of
great regret. Lexington will feel
the loss of the Northern Bank in it's
every interest. 1t will lose some
$4,000 in its annual taxation, for
most of this capital will be with
drawn from the city and go into
other enterprises, much of it prob
ably into government bonds at n
low interest.
This bank was chartered III 1885
and went into operation in Septem-
Der of that year, and for 63 years
has been the leading monied insti.
tuition in Central Kentucky. 1t de-
serves to be honorably remembered,
for ITS career was long and honor
able. 1t never had an unfaithful
officer nor q defalcation.-Ken-
lucky Gazette, Lexington.
We learn that the capital of the
Northern Bank was 1913, 300, the
surplus $l39, $50, and undivided
profits 1927, $50, a total Of $2,OS0,-
91O, which will be replaced with
little institution of $40, 900 capital.
Thus We have a conspicuous in
stance Of immense loss to the ma
chinery OF State commerce brought
about by the unreasoning jealousy
of the people, fostered TO a large
extent by Office seeking dema-
gogues.
An argument as to the value of
banking institutions in a we'll do
veloped state of commerce is hardly
necessary. Everybody Of any bus
mess sense must surely admit the
necessity of banks in these days.
Then why not deal justly and equit-
ably by them in law-making and
taxation? Certainly they are not
treated fairly when they are driven
out of existence by exactions in
taxation that they can not afford
to pay. The proof of injustice Is
incontrovertible when institutions
with the strength, prestige and age
of the Northern Bank find it nee
essary to withdraw their capital
from banking to rcinvest it in bonds |
that pay only three per cent inter-
est.
theoretically the subject of
equitable taxation seems simple
enough. Practically it is difficult
almost to impossibility. To say that
all taxable property should be as
sessed at fair cash valuation and
to enact law that it shall be SO
arc easily done. When the assess
ment is made it is found that real
~ is assessed at one fourth to one
third its worth, personality except
money is taxed generally at. far
less than its cash value, while mon
ey for it's representatives in notes,
mortgages and securities) if re-
turned to the assessors is taxed to
the limit. BY this discrimination
in effect a person worth $4,000 in
land pays taxes on 81, 500 to $3, 500.
A person worth $4,000 in bank
stock pays taxes on $4,000. Ex-
perience has proved that this in
equality of assessment can not be
corrected and that the only ready