Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-02-07
For the journal
7 OF IIIG JOIIIN7
THE 81 VINGS BANK BILL.

1t is generally thought very doubtful
whether the bill now before the legislature, to
amend the Savings Bank law, would be any
improvement, except that provision which
makes the extra earnings subject to sem-an
nual dividends. That indeed is very desra-
BILE. 1t should be matter for the directors
to determine from the condition of the affairs
of the banks, whether any reservation should
be made, and how much. They should also
determine from time to time how long any
such reservation should be continued.
But why limit the amount of deposits, or
conine them TO one and the same bank !?
eye Out thinks it important to lessen the
gross amount OF deposits, as taking too much
money out Of circulation and deprivng bust
ness men of the means Of carrying forward
the enterprises which are being projected
over the whole country. Railroads are re-
ferred to particularly. 1t should not be for
gotten that since Savings Banks have been
greatly multiplied in this and most other
states of the Union, and their deposits very
greatly increased, until their amount is count
ed up by millions,-2O or so millions in this
State alone-railroads have kept pace with
them, as also have manufacturing enterprises
of various kinds. Savings banks with their
increasing deposits, and the great enterprises
referred to have kept pace with one another.
Instead of vast sums of money being ''hidden
in the dark and dismal vaults" of our Savings
Banks, they have furnished the means of car
rying forward the important works alluded to.
The large increase of business enterprises is
HD q in n M the a En- ri adj
by the Savings banks and the great increase
of deposits therein. The monies deposited
are not kept sscreted in their vaults, but are
loaned out to those who have more enter
prise than capital. They receive on deposit
what Is scattered about, in lesser or larger
sums, which would not be saved or collected
in any other way. Those who can make pro-
ftable use of it, soon learn where to find it
in such amount as their business affairs re-
quire. Those banks are the reservoirs in
which the means -are deposited, not to be hid
den away, but to be furnished to those who
need them ard know where they can be Ind
in required amounts. If kept in ''their dark
and dismal vaults it would be difficult for
''Eve,out" to see where the earnings seopld
come from, that are to be distributed to the
depositors semi annually or reserved.
These savings banks as they are properly
called, subserve the double purpose of aiding
both the deposi;or and those whose business
call for an increase of their capital. The
money deposited is not, as "Eye-Out" sup
poses, taken out of circulation but is put into
circulation in manner most convenient to all.
We need not be alarmed at the deposits be-
ing too large, until the bank ceases to afford
the depositor less than six PER cent. in earn
ings or interest. Instead Of that we find the
earnings increasing instead of diminishing,
and the business community is in need of
larger deposits. The matter of amount will
take care of itself. 1t needs no legislation.
The only difficulty to be feared is that of leg
islating too much. 1t is, however, very APP
parent that the Directors should he allowed
by law compensation for their services, and
why they should be expressly interdicted
from receiving any for the important services
confded to them, it is little difficult to I'M
derstand. Born EYES.