Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1910-06-01
J. N. CLANCY or sToueHToN DE-
cLAREs IT rs FINANCIAL
MIRAGE.
SAYS SMALL INSTITUTIONS CAN
NOT AFFORD TO BECOME THE
DEBTORS OF GOVERNMENT.
Madison. May &c

its provisions are made to appear as
they are. its attraetiveness yanishes
with startling rapidly 1t is a beauti-
fnl financial mirage, alluring only to
those not versed in practical financer-
ing. These statements were made last
evening by ]. NJ. Clancy, president of
the First National Bank of Stoughton,
in an address, DO We Need Postal
Savings Banks. delivered before mem
bers of group 2. of the Wisconsin
Bankers association al banquet at
Keeley's
Banks in the small cities and viii
lagos cannot afford to become debtors
to the government under conditions
such as the government must impose, .
continued the speaker, and the gov
eminent cannot afford to become a de-
mand debtor of its citizens. If the
banks borrow the postal deposits. they
must put up unquestioned security.
This they will not do. unless pressed
for funds. If pressed for ready cash
and in possession of the required kind
of security, banks may borrow from
the government If they do. and it be-
comes generally known that they are
doing it, and it also becomes known
that the government has first claim on
the assets Of the bank, the private de-
positors win take fright and demand
their money"
Mr., Clancy then showed how the
postal savings bank will create dis
trust in all private banks which Dor
row the money deposited in them. ne
said that banks cannot have two
classes of depositors, secured and I'm
secured. and held that a bank had no
right to secure one class of dep6sit0s
and not secure all of them.
In conclusion be said: There is but
one safe course for the people of our
country to pursue if this government
is to maintain the high position it oc-
cupies among the nations of the earth,
and that course is clearly defined in
the Fundamental law and the teach
ings Of its authors. Our government
must be confined to governing. and
our citizens must have a clear field for
the exercise of their talents. The
government must not become a banker
and the citizens must not usurD the
functions Of government"
Nils p. Haugen. member of the
state tax commission, was the other
principal speaker of The evening. aud
addressed the bankers on Taxation
He advocated an income tax in place
OF some of the present taxes, espec-
Tally those on personal property, He
said that a special committee of the
legislature was considering the ques-
ton of recommending the adoption OF
an income tax and he urged the bank
ers TO give thoughtful attention to the
report when 1t is made. He also urged
the bankers to give encouragement
and support to any recommendation
which the Tax commission may make
on the subject He said he believed
that an income tax with the exemption
Of manufacturers stock and products
from the present tax would invite in
dustries to this state. To be success
full an income tax would have to be
placed under centralized administra.
ton, he said
The commissioner declared that local
self-government in Wisconsin. so far
as taxation went. was bowling farce.
1T may be said the commissioner
stated stnat the public conscience con
dennis the present taxation laws and
local assessors respond to that senti-
ment rather than to the provisions Of
the laws. The Tax commission can
not congratulate itself upon the fact
that assessments are improving. for. if
We are correct in orr calculations, the
local assessment Of 1908, the one on
which we made the last state assess
ment, was worse than any of its pre-
TIE assessments of both
personal and real property were less
in comparison with real value tnan
those in 1905, the commissioner said. /
Nearly all the bankers of group 2,
attended the banquet, which was pro
nounced one of the most enjoyable af-
fairs ever given at group conven-
ton. Patrick BARLEY, president OF
the Woodnouse and BARLEY bank OF
and the retiring presi-
dent of the group. presided as toast
master.
After the two addresses, different
members of the group were called on
for short talks Among those who re-
sponded were, former State Senator
Of Lancaster. State Treasurer
Dahl. and c. R. Thomson of Richland
Center. the newly elected president of
the group Mr. Thomson gave a
strong talk. inveighing against the
Of professional polfti-
clans in politics.
After several talks BY other mem
bers. strongly supporting the stand
taken by Mt. Clancy in regard to the
postal savings bank. the group as a
whole adopted a resolution TO publish
the address OF the Stoughton banker,
and to distribute i. broadcast among
the bankers Of the state, and also to
send copies to members of congress.