Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-01-23
For the Journal.
SAVINGS BANKS.

One who writes over the signature of 'EYE
Orr,' in recent Journal, furnishes long
article historical &C., of Savings Banks. His
main if not only purpose appears to be to
poin. ont his objections to the legislation Of
last year, respecting the Savings Banks Of
Maine. The 93d sec. of which he complains,
is certainly very Objectionable. But that and
tie other objections to the last sessions leg
islation on this subject, may be readily under
stood without traversing so much space in his
tory.
We all know the purpose of Savings Banks
in Maine. They were not designed for the
wealthy, but for the opposite class and those
in moderate circumstances. Capitalists are
accommodated by the banks of issue, in
which they own the stock as a permanent in
vestment in and by which they are enabled
to furnish a circulating medium for all classes
for the uses of commerce in all its branches.
This providing paper circulation requires
a good deal of legislation in respect to re-
straining its amount, securing its redemption,
regulating its operation and the benefits de-
rivable from it to the public; as is seen at
once by referring to the statutory provisions
of chap. A. Of the revised statutes The
power and the privilege of furnishing such
paper circulation, is matter of very great
Importance to this and other States, as well as
to the owners of the stock in such banks. 1t
enables the latter to greatly increase their
assets at very little outlay by the loaning of
which they reap large incomes which enables
them to make large semi annual dividends.
That is what attracts the attention of capital
lists having money to spare W no are able to Sc
cure and retain the stock of such profitable
institutions, instead of investing in Savings
Banks which are limited to the loans and
management of their own money actually
paid in. Wherefore it is seen at glance
that it is unnecessary to provide by law against
large deposits in the case of savings nstitu.
tions, or the interdicting, as has sometimes
been done in other countries, the making
of deposits in more than one bank at the same
time. 1t is unnecessary and absurd to under
take to provide by law how little or how much
man shall be worth to be entitled to deposit
in any bank. The deposit of any one man
worth more or less, cannot effect that of
| another.
The operation of Savings Banks is very
simple and plain. 1t is but saving what is
deposited and making profitable use of it, and
paying it back when wanted with the interest
it has earned All depositors share alike pro
rata. The business requires but little legis-
lation. As it is said, ''the less the better"
That of the last session was uncaled for, ex-
cept the provision allowing the trustees acting
to receive reasonable compensation, as be-
ing just and tending to ensure fidelity in the
discharge of their trust
The deposits in Savings Banks are so
often withdrawn that to allow full dividends
only once in four years, deprives depositors,
who have previously withdrawn their depos-
its, of all their previous earnings and inter-
est which that statute requires to be reserved
of their investment, and it passes into the
hands of those principally who, it may be,
have contributed but little to the sum re-
erved.
The i'm position of burdens and reserya-
tions upon the 8, 25 or so dollar deposits
made in these Savings banks, has the effect |
to deter deposits from being made therein,
and the good designed by these ANAL institu-
tions, is thereby in great measure defeated.
Those banks that are authorized to issue their
own paper, which costs them nothing as for
money, thus providing circulating medium
for the country from which they derive large
profits, can well afford to meet the small tax
atoms imposed upon them. They have ample
in which Savings institution
are not allowed to participate.
Born EYES.