Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1871-02-15
81 WINGS BANKS.

SA JINGS DANhS.
We have received from correspondents the
following articles in relation to Savings Banks.
One correspondent says: "We Gull the fol-
lowing from the last number of Appleton's
Journal, which is as applicable to this latitude
as to that of New York"
"The savings banks of the State of New
York hold in deposit nearly two hundred mil
lions of dollars. This vast sum, consisting of
the small accretions of about seven hundred
thousand depositors, irritates and excites GER
tain journals and politicians. There is no
ground for supposing the affairs of these banks
to be maladministered. They are chartered
under very strict legal regulations, and it may
be safely asserted that in no other form have
funds so vast been employed with so little loss.
Savings banks are pretty nearly the only
financial institutions that never fail. In the
great panic of 1857, one Savings bank in New
York was obliged to close its door, but it paid
within short time ninety-eight per cent to
its depositor.s = These banks then being
safe repositories and having been conducted
with uniform probity and success, why does
there exist any hostility against them? Partly
from ignorance of their real character, and
partly from desire to turn their vast depos-
its into other channels. Schemes of all sorts
aiming at their welfare are rife. " No
pressure should induce them to swerve from
their present course, which cannot in any par
ticular be changed without great danger.
They have in charge immense interests,
wherein the measure of profit is Of no consid
Grafton in comparison with the measure of Sc
curity. These banks have in their hands the
slow and painful accumulation of self-deny
ing labor; they hold the widows mite, the
garnered hope of age, the sole security of in
Vulnerable people against deprivation in sick
ness or old age. There is no fund SO sacred.
There are no institutions that should be so
carefully guarded, so scrupulously respected
They are better than asylums, because they
in a measure prevent the necessity ofasylums.
They are better than any form of charitable
dispensations, because they alone, of all the
devices of charity, render permanent and rad
ical benefits to the poor. Frugality is the
sole means of preventing poverty, and savings
banks affords not only the opportunity for prac-
ticing this virtue, but they reward it. If it
were not for banks, the savings of people
would either be wasted, boarded in old stock
ings, or hidden in corners. The banks gather
up vast number of small accretons, and
hence utilize as capital that which held by its
individual owners, would be powerless?"
Another correspondent has word to say
about taxation of these institutions. as follows
Sometime early in the session of the pres
ent legislature, an order was introduced into
the Senate calling upon the Judiciary Com
mittee to see if any legislation was needed in
regard to taxing the deposits in Savings Banks,
and to prevent them loaning their deposits out
of the State. The latter, presume, was in
accordance with the suggestion of the Bank
Examiner, and is think matter of impor-
lance.
There is no doubt but the numerous Saw
ings Banks which have gone into operation all
over our State are of great value and it is for
the interest of the State to foster and en-
courage them as far as possible. They are es-
sentially the peoples insttutions-the place
for the safe keeping of their mites and hard
earnings. There are many thousands of dol
lars in the Savings Banks of Maine belonging
to young men which would have been spent
and lost to them but for these institutions.
And many poor working man, as well as
widows and orphans, have their ANAL funds
in them laid by for rainy day.
Would have them taxed? Certainly not.
Such an action would be taxing economy, in
dustry, and the well meant endeavors of tn c
bone and muscle of the State, but those miser-
ly capitalists who take the opportunity to get
clear of paying justly due tax on their thous-
ands by depositing in these banks should not
be protected.
But it was of the proposal to keep the funds
of the banks at home that l intended to refer
| to briefly. Some legislation is needed here,
and it is the positive duty of the present legs-
lature to do something in this matter before
adjournment. Our Savings Banks, which are
| intended to be promoters of industries at
home, should not be allow ed to send their
funds out of the State to help support and
build up other communities. Such policy
| is suicidal What do we most need in Maine,
and for what is the cry going up all over our
! State? 1t is for capital-money--we alth-