Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-03
!. Sent up for concurrence.
s. j. CHADBOCRNE, CLERK
In SENATE, January IS, 1874.
SAYINGS BANKS.


The legislature will need to examine
carefully and candidly the suggestions and
propositions Of change in relation to the
savings banks of the State. While it is
important that the State should look well
to the security of the depositors and the
honest management Of the affairs of our
savings institutions, it is unwise to hamper
them with useless and embarrassing re-
strictions, which add nothing to their safe
ty and injure their business. They are
already taxed by the State, restricted as to
the securities in which they shall invest,
subjected to close examination OF their
affairs by State authority, and appear to
be under sound and careful management.
Ii they are loaded down with embar-
easements that reduce their profits below
what they are at presentthe Withdrawal OF
deposits will follow. This will injure the
banks, and probably the community. The
community will save less and the banks
run down If deposits were Withdrawn
it does not follow that the owners would
invest in this State. The banks are for
hidden TO invest in many securities outside
of New England, but individuals cannot
be restricted in the investment of their
money to any locality or TO any class of
securities, and so while the banks cannot
put their money in western railroad bonds
of an unsafe character, their depositors
may draw their money and do the very
thing which would not and could not have
been done by the banks, that is: send the
money ont of the State and take poor bonds
in return. Let the depositors be driven
from our savings banks, and they would be
likely to be tempted into speculation, for
which other States offer much greater in
ducements than our own, particularly the
western States.
Officers of savings banks have better
means of knowing the character of invest
ments offered in the market than other in
dividuals, they have also the consideration
of the honor and safety of the bank to re-
strain them from rash ventures, and
therefore without any legal restrictions
they are more likely to place their money
safely than persons inexperienced in in
vestments and with nothing but their own
personal liability to loss to deter them
from hazardous ventures. 1t seems to US
that those who aim at having the savings
of the people safely invested, and kept in
the State as much as possible. had better
not try the experiment of obliging the de-
positors in savings banks to abandon the
banks and seek other employment for their
money; it might not operate as they an
ticipatc.
We feel as DESTROYS as any persons that
savings banks should be properly guarded
and managed. and their deposits be
used to aid the business. and growth of
our own State, but we can see no benefit,
no safety, in hampering them needlessly,
and no reasonable prospect that their de-
posts If yielded into the hands of the
owners would be better employed for The
interest of the State than at present. We
think the public at large will agree with
us in asking the legislature to keep its
hands from unnecessarily harsh measures
and doubtful experiments with the banks,
allowing them fair chance to live, and
only adopting such steps in relation to
them as are reasonable for the security Of
those who trust them.