Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-01-07

mind that this dcht does not represent what vast
cd and lost. 1t is a heritage. of honor and a
patent of nobility and if that too unsubsta1-
tial consolation to those who dwell the
striking fact that our taxes continue high, they
may be reminded that more than half this debt is
for money that has been scattered broadcast among
our own citizens.
The report Of the Examiner of Banks and Insur-
ance Companies will suggest matters Of unusual i'm
portance. 1t will be that our old banks under
the State charter are nearly extinct The policy Of
the Government is hostile, and shall probably
have to abandon the system.
Tho recommendation o. tax to be laid upon
foreign Insurance Companies doing business in the
State, seems well supported by argument.
Those who are interested in the condition Of our
people, will not be content to estimate the prosper
of the State from the operations Of capitalists
and the balance Of trade. They will also look upon
the great and If they live upon their
daily labor; to what use they put their earnings,
and to what advantage their small savings. There
you can best discover whether you rightly solv
ing the problems Of political economy, realizing
the objects of society There 81 savings
banks in Maine, several having been recently
chartered in what we might call country towns
the chief apprehension in regard to which is, that
they may not be able to afford suitable security
against robbery. The deposits for the past year
amount to $40 s39 ,955 by about 40 000 depositors
making an average of something over $3.50 each.
An interesting comparison is shown by the fact that
the amount thus laid in store from honest and hard
earned gains, is already more than million and q
quarter larger than the aggregate capital Of all our
banks of issue State and National, and nearly two
and three-quarter millions larger than the whole Of
our bonded public debt.
1t is urged by some that direct tax should be
laid on savings banks. 1t is sound principle that
property should share equally possible the pub
lie burden and it seems, at first sight that savings
banks should no be exceptions to the rule than
any other banks. But it will be seen upon refec-
on that the spirit and intent of deposits in savings
banks differ entirely from the object and operation
Of deposits in other banks, and it is grave ques-
ton whether this difference is not of such nature
and result to make the savings banks n positive
benefit to the State which might entitle them
TO special grace practically amounting to bounty,
or premium, if you please. These banks are the
special deposares of the poor treasures of pttan
ces which could in other way be so we'll guarded
and made profitable. If not kept here many of
them would not oe kept at ALL Besides the actual
saving of earnings and the positive addition to
wealth thence accruing,- itself an object worthy
of your thoughtful eare,-there are incidental and
even more valuable advantages. The moment he
has money in the bank, the hunblest feels brac-
ing up of his selfrespect and whole moral force.
From that moment springs an incentive to industry,
frugaiiy temperance, enterprise; to all, In fact,
which constitute good citizenship, and advances
the character and condition of men, Anything,
therefore, which tends to discourage deposits in
there were any way reach the large depostors by
requiring the officers of banks to make returns to the
of towns for purpose OF taxation, 1t would
certainly be we'll. But first promising that large
sums are less likely than small ones to escape tax
alton in the ordinary way it is to be said that such
depositors might still easily evade the law and the
burden would fall back those less able to bear it.
Indeed the mere fact itself of publishing Savings
Banks deposits would intimidate and dishearten
many whose very struggle and merit 1t is to keep
this pttsnce from the wilful and wastetul hands
which would at the same time destroy 1t and them
selves By the very confidential relations Of these
| banks many a poor woman is helped in her heroic
struggles to bear her unequal burden. Therefore it
! seems to me better to suffer such evils
do than in the attempt to correct them to subvert
far greater good.
| What this State needs is capital-money in mo-
! ton, whether gold or currency. Our material is
stagnant, industry crippled, our enterprise
staggered for want Of money. which is power.
What makes the sinews of war makes also the sim
ews Of peace. Maine strikes me as quite different
! in her circumstances from the other New England
States with their denser population, developed arts
and industries their Capitalization Of forces aud
cumuiation of capital. She reminds more of the
Western States n her condition and needs,-a vir
gin SOIL undeveoped powers, vast forests, and Wig
orous men, but no money Like them she is trying
to build railroads, invite imm grat tion and develop
her resources, and perhaps is not so much in love
with high tariff Of her more cultivated
sisters. The elements and powers Of nature, and
the energy aud enterprise Of men in order to bo
turned to account for the great of civilization
must wait capital. Unfortunately We cannot
hold can keep neither our men nor
money at home. Higher rates Of interest for the
one, and quicker and larger returns for the other
win the game. The result is double drain which
| keeps all channels low. This evil must be
remediei or Maine will have to wait great while
for her coronation. What be done it is not
easy to say specifically. We must look TO the Ma
tional Government to strike of some of our fetters
and tighten some of our burdens. To me it seems
unwise to cramp energies with duties and taxes
in trying to do everything in one day. l have no
great pride against letting somebody else help pay the
cost OF the The great debt Of the country is
boon which must invite posterty to share, along
with the blessings which they will inherit with it.
We gave strength, our blood, our tears; let the
delivered future bear part at least in the thank
offering. If do anything that will make
labor, skill, talent ani capital remunerative, that
let us do. People will come and will stay; money
will be kept and brought if we can manage to make
it pay. What We can do for money does no, readily
appear. But can look over the situation As
have said, higher rates Of interest abroad lure
money away. Money will seek the highest leve
water. Argument and entreaty will not
change the course of this inexorabe law. Capital
lists reluctant. Some scruple to receive an ille
| gal rate aud refuse Some stipuatng for these
rates knowing that they can only trust the honor Of
the borrower Tor the continuance want Detter Sc
curity. But mortgages of real estate, which is
about all we have, carry long right of redemption,
and the lender is liable to be kept three years out
of the money at merely the low legal rate The
result is he will not accept the mortgage. but
demands outright deed, and then the borrower
must trust the honor of the lender, which in turn
may not be very valuable security.
Two things would undoubtedly tend to mako
money more plenty. l. To perfect and make prae-
tcable our free banking law, 2, To legalize high
or rates of interest. Of course the suggestion Of
evils growing out o: the latter proposal at once
arises. But it may be that the example Of the Gen.
eral Government which compelled to suspend
specie payments, may also compel us for time to
recognize rate of interest corresponding with tha
general practice and sanction.
The Commissioners the State Valuation will
submit the results of their labors for your action,
which will require your careful serutny aud impair
tal Judgment.
INSTITUTIONS, REFoRMAroRr AND SANITARY.
The various institutions under the of the
State are generally in a prosperous condition. The
Reform School shows excellent management. The
business is conducted with judgment and energy;
the discipline and care of the boys is wise and
kind; aud although this is in some sense prison