The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1871-12-29
.HE PRESS.
FRIDAY MORNING, DEC. 20, 1871.


If is stated that the savings banks of Maine
are found to have twenty-four millions OF de-
posits this year. Last year. there were six
teen millions, there being an increase of fifty
per cent in twelve months If such an ex-
hibit is made great impetus will be given to
the movement for the taxation of these insti-
buttons. They have entirely outgrown the
purpose for which they were originally char
tered, and though laboring men still use them
as place of deposit for their small savings,
capitalists have not been slow to avail them
selves of the immunity from taxation which
such institutions offer. When our Portland
savings banks began business one of them oc-
cupied small room in the Canal Bank, and
its treasurer had salary of 800 while the
other was started as a depository of five cent
savings. 1t was then humane policy to ex-
empt them from taxation. But now, when
they have become the custodians of the
wealth of the rich as well as the earnings of
the poor, there are many who demand that
they shall no longer be allowed to escape
their proportionate part of the public bur-
dens. The schools of the State are suffering
for aid, and it would not be surprising if, in
stead of the mill tax" members Of the
Legislature should be inclined to levy small
educational interests.
If this is done it is to be hoped that some
means will be devised to save small depositors
from any part of the tax. There is just the
same reason now as formerly for encouraging
laboring men to put aside some part of their
earnings for an emergency or for the support
of their declining years. 1t may not be
necessary to deprive them of the immunity
which they have SO long enjoyed and so thor
oughly appreciated in order to reach the
property of their rich neighbors who are seek
ing to enjoy privilege to which the poor
alone are justly entitled. 1t is bad enough,
though unavoidable, that so much property
is exempted from taxation by the national
government, but the evil will be greatly ag-
gravated if that part of the balance which is
deposited in savings institutions by capitalists
also escapes.
The investment of savings banks funds in
Western bonds and other securities of dis
tant communities has attracted much atten-
ton of late. 1t is not felt that either such
investments or the use of deposits for specu-
lative purposes, or for loans on call, are cal
culated to affect the solvency of institutions
managed SO carefully and honestly as our
Maine savings banks are. Butthere is con-
viction widely prevalent that such course is
wrong as matter of State policy. The i'm
mense funds at the disposal of the banks are
needed for the legitimate purposes of our in
ternal development, and it is not pleasant
spectacle to see them enriching distant States
while here enterprises of 'sgreat pith and mo-
ment," the projectors of which are able to
to offer the best security, fail for the
want of funds. 1t is possible that we
should not hear so much about State
and town aid to railroads and manufactures,
if these funds were available for building
them up. In Massachusetts, there is law
which perhaps might with propriety be cop
led here. That law provides that savings
banks shall invest their funds in first mort
cages on real estate, United States bonds,
bonds of the New England States and Of. the
Massachusetts towns and cities, and in no
other classes of securities. Such law would
tend to keep Maine capital at home, and
would prevent such dangers as may in the
future arise from investments of an imprudent
character.