Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1872-02-19

shows that 1854 depositors have in the saw.
ings banks Of the State, in sums less than
$500. SS, 243 1876, averaging to each depositor
$l469G; while l,S47 depcsitors, which we
| will call the rich, have on deposit Sl4, 543,-
500, averaging $1,220 each. Now if any of
that $l4, 543, S06, belongs to individuals who
escape taxation (and think most of them do)
they escape no more for being depositors in
savings banks than though they were not for
| money in savings banks is taxable to the own
| er where he resides, the same as personal
property Of any other kind; and the bill be-
lore the Legislature does not propose to ex-
empt them from municipal taxation, but in
addition imposes an extra tax of one-half of
one per cent, and if they are the wealthy men
they are hot the class for whom "Three Score
and Ten" asks sympathy, as they can take
care of themselves.
A large majority Of those depostors who
have sums less than $500, would be taxed for
part of their money if they were known to
the assessors; they would be compelled to do
SO, as they now tax many persons for their
little real estate, which is no more to them
than this money on deposit to the depositor
They are not all poor widows and children
those who are of that class certainly would
not be taxed by the assessors, for any money
they may have in Savings Banks. 1t is Of
more importance to them to have six per
cent. with a sure return of their money and
interest when they need it, than seven per
cent, with the increased risk of losing the
principal.
Now what is the gain or loss by having
those large sums deposited in our savings
banks under the present law? The loss is in
this way-while the banks are receiving those
large sums. they engender spirit of rivalry
which is dangerous, and in order to pay the
high rates of dividends expected, they must
make immediate investments, and in their
haste too often select securities with a view to
the income rather than safety, so that when
panic in financial matters comes and money
is worth more than can be had from savings
banks, these large depositors withdraw their
funds, leaving losses and depreciation to be
shared by the poorer depositors, who desire
to remain in the bank.
The gain under the law proposed by reducing
the dividends to six per cent. would be to in
crease the reserve fund of the banks, and
these large depositors, who now own two
thirds of the amount in the savings banks,
would be obliged to pay largely towards the
fund, so that when they leave, should losses
occur the reserve would cover them, and the
poor depositors, whether those of the present
or others, would continue to receive their reg
uiar dividends. In addition, while those large
depositors do remain the State gets from them
the tax of half per cent. which at present
would amount to the sum of O,00O and
when paid into the school fund, would benefit
the depo.itors of the small sums more than
the tax which their deposits pay. Whereas,
without.these large deposits and this law, the
tax would be lost entirely.
The tax by the proposed law, would give at
present to the school fund of the State about
$4,000, equal to more than fifty cents to
each scholar between the ages of four and
twenty-one years.
So instead Of the proposed law being de-
signed to favor the rich at the expense of
the poor, it is the reverse. 1t makes the rich
contribute to establish a large reserve fund,
that the poor shall always be ensured fair
dividend on their deposits.
The FRIEND OF THE Poor MANS SAVINGS
BANK