The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-11-27
A Savings Bank Bill.


A Savings Bank Bill.
We have borrowed from one of our savings
banks fifteen page pamphlet which is ex-
clusively devoted to bill which is entitled:
IAN act to revise and consolidate the laws
relating to the government, powers, duties,
privileges and liabilities of savings banks and
institutions for savings" We understand
that the the bill has been prepared by Bank Ex-
aminer Bolster at the suggestion of the Bank
ing Committee Of the last Legislature. So
for as we can learn, copies of this important
pamphlet have only been sent 10 the various
savings banks of the state. The fact that in
November 1874 the deposits of our Maine
savings bank amount to $31, ,051 $685. .73, that
the whole number of depositors at that time
was SO, 100 and that the taxation, restrictions,
privileges etc. Of these institutions were mat
tiers affecting all the people of Maine, would
suggest the propriety Of giving such publicity
to the measure which it is proposed to rec
ommend to the Legislature for enactment as
would bring IFS provisions before
the general public which is un-
doubtedly interested in any legislation
which may affect so great an interest. 1t is
true that the officers of savings banks have
opportunities to obtain more information re-
specting these institutions than the general
public; but where the questions of their own
taxation and the character oftheir restrictions
and obligations are the most important of all,
it may be barely possible that suggestions
from that source may be affected by interest
and not always the best for the people at
large.
Tie bill contains fifty sections. The first
eight relate to the organization of savings
banks, duties Of officers, etc., all of which are
nearly the same as set forth in the existing
statute. The ninth section provides that
after May l, 1876 when this act will 90 into
effect (if at ally, banks shall not receive more
than $4,000 of one deposition.
Section 10 to Is, inclusive, relates TO the
Investment of savings bank deposits.
Section 10 is as follows:
SECT. 10. Savings Banks and Institutions are re-
stricted to- and hereafter may invest their deposits
in the public funds Of the State the public funds of
any Of the New England States, AMI of the United
States, in the bonds of cities of thirty thousand in-
habitants Or more. and county or State bonds of the
States OF New York, Ohio Indiana, Illinois, Wiscon-
sin, Michigan and Mssouri in the stock Of any bank
or banking association located in this State ncorpor
ated under the laws Of this State or the laws of the
United States; in the first mortgage bonds of any
railroad company incorporated under the authority
OF this State which is il possession of and operating
its road which hasa aorpod on3 ,,o;d ro,.,,o.
dividends for two years next preceding such invest
ment in the stock of such railroad company which is
unencumbered by mortgage in the stock and bonds
OF any other corporation incorporated under the au
thority of this State which and are paying regu-
lar dividends, and may invest by loans on first mort
cages OF real estate situated in this State aud may
oan to any county, city or school district in this
State and on notes of any citizen of this State with
pledge as collateral of any of the aforesaid securities
including its own or other savings bank books and
the stock of any of any of said railroad companies
not over TO per cent. or tne market value of such
Stock and may loan to said corporations on personal
securities, with at least two good sufficient sure
ties when the securities pledged their own bonds
and stocks.
Section II restricts the amount of real es-
tate which bank may hold to five per cent.
Of its deposits. Section 12 prohibits bank
from taking more than one third of the capt.
tal stock Of any institution. and from invest
ing more than ten per cent. cf its deposits in
any security of that character, and not more
than $4,000 in the capital stock of any cor
poration. Not more than seventy-five per
cent. of the deposits Of any bank shall be in
vested in real estate. Section 13 authorizes
savings banks to deposit five per cent. of their
deposits in national and state banks on call,
at rate of interest not exceeding five per
cent. Section IA provides that when the
money held by savings banks cannot be con-
ueniently invested on all of the modes hereto
fore named, it may loan the amount thereof
in sums not exceeding $1,000, and in all not
exceeding fifteen per cent. of its deposits, on
notes of four months, signed by three respon-
sible citizens of this state, said notes not to
be renewed or the time thereof extended.
Section 16 reduces the tax on the deposits
of savings banks from one TO three quarters
of one per cent. Another section provides
that in making the returns of deposits upon
which the tax is to be assessed, an amount
equal to the United States bonds owned by
the bank shall be deducted. Section % pro-
vides that when savings bank declares
dividend the aggregate of which exceeds the
interest or profits earned, the trustees voting
for such dividend shall be personally liable
for tie amount of such excess. Section 27
provides that the securities of savings banks
kept out of the state shall pay the expense of
the Examiner in going to the place of deposit
to examine the same. Section 2S requires
the treasurers of banks to make aud declare
trial balance every Saturday. Section 30
provides that the owners of deposit books lost
or stolen shall have their money paid to them
after the bank officials shall have advertised
the loss of the books and after the period of
six months shall have elapsed. Section 81
declares deposits made by married women
and minors shall not be the property of hus-
bands or parents. The balance of the bill
contains few new features, and those are not
important.
With all respect to Mr.. Bolster, we cannot
but express the opinion that the proposition
to reduce the taxation from one to three-quar-
tiers of one per cent. is uncalled for, unwise
and even unfair. If the thirty millions of de-
posits were the scanty savings of laboring
people, widows and minors, it might be well
TO consider the question of exemption or
practical exemption from taxation. When,
however, it is we'll known fact that capital
lists have deposited large sums of money in
these banks, possibly in order to escape taxa
tion, the proposition to reduce the meagre
tax now imposed is unwise. Every other
species of property is subjected to taxation of
not less than two and half per cent, and
when insurance is added, four or five per cent.
at least. The man who puts his money into