The Portland daily press., 1872-01-01
savings BaA "''

To the Editor Of the Press: ,,,na an edito- |
nv mot;ce in YOUR paper this morning az oI
a State tax upon
ri"l J., this State. The writer eVideh'H
,,,,dar the same error which seems "
po. ., 80, roanv persons, to wit that deRo'
.'l- coF7;,,os Ranks are not taxable VI 'n''
.oio now some law of the State thu eAenp.e
them from taxation. The truth Is 'ii.' ..2.n
in Savings Banks are as Iaoio " IN
90 denosits in the other banks, OF aS i.os
,,oonle's rockets, or loaned to theif ne' 49,,
"a thev are reached by the assessors III WV
sa,,,a manner: that is, if persons MAKE fe'ui
,,,,dor oath. they must of course include dei0''.
:, sov;nos Ranks as well as cash on manu.
Thosa nersons who do not make returns w 90
sossors are doomed and, as Is wen Ai'o"n' ".o
heavily doomed, and they do not escape shS''
nroportion of the public burdens
Is there any reason why deposits in Savings
ponls should he sDecialy taxed any more than
deposits in local or national BANKS! LOU
NAV reply that these deposits are drawing IN
| tarest and the others are not: but this is not
| GOOD argument Money at interest is no more
! taxable than money not at interest Indeed In
| many cases not so much SO; because according
to our tax laws, money at interest may be offset
| by the taxpayer by interest that he may be
| paying elsewhere.
| You assume that the rich men take advantage
| of Savings Banks to conceal their money from
taxation. Now it is possible that a few persons
may attempt thus to escape paying their share
of taxes, but as the writer has reason to believe
| it is generally an unsuccessful attempt
And suppose that in few cases this should
be successful, Is it wise to lay tax upon the
poor and industrious, upon benevolent societies.
widows and children, in order to reach these
few persons? The average deposits in Savings
Banks in this State and Massachusetts are
about the same; that is about $500, The writer
has some opportunity of knowing whefeof he
speaks, and he unhesitatingly asserts that the
amount deposited in these banks is not to any
great extent made by wealthy men, but as a
general thing is made up of sums deposited by
persons of small means, men, women and child
rem, benevolent and charitable institutions, in
Guiding Masonic bodies, Odd Fellows and socie-
| ties organized for benevolent purposes. Any
tax laid upon these banks will of course dimin-
ish the income Of all these persons and socie-
| ties .
You say that the schools of this State are suf-
fering for aid. Is there no better mode of re-
lieving this suffering than taxing widows and
orphans and charitable institutions, or persons
of small means? 1t appears to me some better
plan might be devised; and I have no doubt
that upon reflection you will think so.
Another charge made against these institu-
tons is, that they invest their funds in Western
bonds, and that these funds "are needed for the
legitimate purposes of our internal develop
ment" .f,,
In answer to this, the Trustees of Savings
Banks say, that this money is not owned by the
State; that no privileges are granted by the
State to these institutions, except charter,
which they do to everybody and anybody that
asks for one; that the duty Of the managers is
to invest the money of the banks in tins best
manner to realize the most interest, compata.
BILE with entire safety; that while they do in
loaning and investing money, always give pre-
ference to applicants in the community around
them, where security offered is satisfactory We,
they consider that their first duty is to the
banks and depositers, and do not consider them
selves under any obligations to build factories
or railroads; and any law restricting the
| %
furious and perhaps ultimately ruinous.
1t is the duty Of the Trustees of these institu
lions so to invest, that the funds may be per
fectly safe or as much SO as they can be made
and at the same time SO available that any
amount that may be wanted by the depositors
shall be forthcoming at once.
If Savings Banks should employ their funds
in building up railroads and manufactures, theil
means Of meeting the claims of depositors
which are daily and hourly made, would be ex
hausted long before these demands ceased.
The fact is Savings Institutions are doing 9
good work in this State, and any attempt *
curtail or hamper their operations and seriously
injure them, can be of no benefit to the State
or to the community generally.
Permit me to add the following EXTRACT from
the report of committee of the Massachusetts
Legislature to whom was referred last winter
the subject of the taxation of Savings Banks:
'The growth and development of the Savings
Banks of Massachusetts, is one result of our in
situations of which we may well feel proud /
is without parallel in history, that such a spiri
of economy and thrift has been stimulated
among people and such large sums of money
have been cared for by men under the pressur,
of no responsibility, except that of public opin
ion, at so small an expense and with such al
most unexceptionab1e integrity. Nearly on,
third of all the population are to-day depositors
and there is not woman child or foreigner
however ignorant, that does not understand on
Savings Banks their advantages, their security
and their iberality. They have become tn
chief, almost the only place of deposit for al
the industrious working classes, and have prov
ed one of the most effective methods ever de
vised for the benefit of the poorer classes. The
little savings Of no appreciable value, when il
the pockets of each depositor,-and too often
come when aggregated in the banks the grea
sums, which flowing out through the channels
of enterprise, dot our country with happy, fru
gal homes, or fill our cities with costly and ele
CANT structures, and our streets with the activ
ity and din of business, and each depostor
whether his part be $40, or 800 reaps his full
share of the advantage. and is entitled to hi
full allowance of the credit
These statements and remarks are as applica
BILE to-day to Maine as to Massachusetts, d.
|