The Republican journal., 1872-04-04
Saving. Banks.

We copy from the Maine Farmer the
following explanations of the provision OF
the law enacted by the last Legislature in
relation to Savings Banks written by VIM
+. Smith, Esq, the Treasurer of the Au-
gusta Savings Bank:
The Legislature, at its recent session.
having passed an act, making certain
changes in the law in relation to Savings
Banks in answer to constant inquiries and
in order that no misapprehensions may
prevail AS to its provisions, and that de-
positors may fully understand their rights
and privileges, this Bank desires to make
the following explanatory statement
|. All the Savings Banks in the State
are governed bv the same law. None
have any exclusive privileges and none
are exempted from any of the provisions
OF the general law which governs the
whole.
2. In respect to the taxation of deposit
orS. the new law makes no change, and
tins matter remains precisely as it stood
before 1t passage No Savings Bank in
the State is required to make any returns
to Assessors OF cities or towns, for the
purpose OF taxation. nor are officers of
Savings Banks required to impart infor-
nation as to the names OF persons having
money on deposit, or the amount thereof,
Or answer any questions in relation to its
business. SO far as this Bank is concern
ed, all accounts are strictly prirate and
confidential. Same in Belfast.
5. The regular dividends of all the
Savings Banks In the State. are limited by
law to three per cent, semi-annually. But
provision is made for division Of what
ever surplus any Bank may have on hand
at the end OF tour Years, among depositors
OF not less than one years standing I'm
der this provision the regular dividends OF
this bank will not be less than three per
cent. semi-annually, and to depositors
who may have money on deposit at the
end OF four years, it is expected that the
aN erage OF interest will not fall below the
amount paid for some years past. viz.
seven per cent. per annum, and it is hoped
will exceed that rate.
4. A tax OF one quarter Of one per
cent semi-annually is laid upon the bank,
which is required to be paid into the
treasury of the State. on the gross amount
OF the deposits held by the bank, to be
and towns for the benefit of the common
schools OF the State. and thus to some ex-
tent effect a reduction OF municipal taxa
ton Names OF depostors are not re-
quired TO be returned to the State Treas
urer. The tax is not, AS some have sup
posed, to be deducted from the three per
cent. dividends. to depositors. but is pay
able from the earnings of the bank like
any other expense OF its management;
and so far as this bank is concerned will
not lessen the amount of interest paid to
depositorS below the highest sum allowed
by law to be paid.
s. All savings banks are req.ired to
set apart one quarter of one per cent.
semi annually, a. q reserved fund to Sc
cure deposlt0rs against any losses or con-
tingencle5 Ia the business OF the bank.
Under the rules which have governed the
Trustees of this Bank. heretofore, the re-
served fund of this Bank now amounts to
S25, 900. Its business affairs have been
SO managed in the twenty -four Years Of
lis existence, that not Que dollars loss
has Vet been sustained, and none is ap-
pretended in the future Hence this re-
quirement OF the law viii not interfere
with the purpose or ability of the Bank to
pay as high rate Of average dividends as
any Bank in the State.
3. The other provisions OF the new law
do not affect the interests Of depositors,
only SO far as they are intended to secure
more responsibility and care in the man
cement of Banks. and more safety to the
funds in their keeping.
W. r. SMITH, Jr.