Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-01-24
ton. Of savings came up at II o'clock by special

tons Of savings, came up at II o'clock by special
Mr.. PILsBrRY Of Lewiston briefly explained
the history Of the bill. 1t was the result Of a
commission Of five appointed by the Governor I'M
der the authority of the last Legislature.
The commissioners in their labors bad had VAL
liable assistance FROM gentlemen Interested in the
/ subject, aud who would be likely, from PRACTICAL
knowledge, 10 know what changes in the law
were necessary. There were different opinions in
regard TO some sections, but the bill reported to
the legislature was substantially the best and al
most unanimous judgment OF the committee. 1t
had been referred by the Legislature TO the Com
mittee on Banks and Banking where it had been
| carefully considered and the result was that IT
was reported with inmates of amendments at
| tached and ordered printed In looking over the
bin he saw some few clerical inaccuracies, and 10
| those particulars he would move amendments at
| the proper time. In behalf Of the committee he
| hoped the recommendations would have due
weight aud if meeting with the appreciation Of the
| House, that the bill would pass TO be engrossed
| Mr.. MORRISON opposed the provision IN the
| bill mnug div ide DDS TO l-2 per cent. sem-su-
Duslly, and moved to strike Out ard insert IS per
| cent. st ml-Anuuatiy." lie spoke of the impur-
tauce vi the question To The people Of The state
who can earn dollar 10 invest, and he claimed
| that cutting down the div idends at this lime
| would he all II jury to Cepol tors. tlity-sN saw
ngs banks 10 the State 10 the past year decla Ell
| five declared less amount lie believed that
| fifteen siXteenths of the savings banks are able
and can pay pr cent. semi annually lie was
aware that four OF Aye banks have been uuiorta-
nate in heir investments, taking stock in West
crn securities, and have met with loss, but TINS
was not tue Of large maj1lity of them. and lac
did not believe 1t right to cut down dividends on
account of II. lie argued that cutting down the
DIVIDENDS wonld serve to weaken savings banks
instead of streng thening them. Depo stUrs would
.Lg hon mon AM a. ls9 "a a
beeu said that large dividends cou Id not be paid
on account Of the hard times. 1T banks do not
get much tor their money, then he claimed
that there should be reduction in their running
expenses. the salaries If officers should be cut
down to CORES pond with tue hard times. lie
atf med his belief that it would be for the best IN
t,Iests OF savings banks, with the exception OF
four or i've, that they be allowed TO declare divi
bends OF per cent. semi-annually.
Mr. LOCKE opposed The amend meut Reckoning
the interest five per cent, there Is to tie passed
10 the reserve funo one quarter of one per cent,
sem-aBnusy, making half per cent per year.
That added 10 the per cent makes IL per cent.
There is also To be paid to tue State one half per
Mt. per year making six per cent. 10 that there
must be added the necessary running expenses OF
the banks. The larger The capital of course the
less per cent it takes to run them. Ii costs the
savings banks of Portland little over Of one per
Gel mt, tut in the smaller Institutions their expenses
must run up to one per cent. This added to the
must earn IN order to pay dividend OF per
cent. The banks under the bill would pay five
per cent free of the taxation, of either one, two,
IL per cent. 30 that really depositors receive as
hig n rate of Interest q they can reasonably ex-
pect in these times. Considering the limit that is
put b, the commissioners upon investments, 1t Is
| utterly impossible for these banks to pay more
than per cent and pay their expenses,
MIR. MORRISON believed that the small savings IN
stitu ion are opposed to reduction OF the amount
laf sqv m 1, \ \
town (Phillps) would pay per cent. annually
and II the bill passed without anne ndInent in this
particular 1t would receive a great Injury. lie
believe this to be true of great majority Of the
banks in the State. lie claimed that the move
ment against per cent. spraDg from banks that
had been unfortunate Ia taking western securities
Mr.. PILsBURY of Lewiston opposed the
amendment. The larger banks were well repre-
scented on the committee. as were the smaller
ones, and, taking everything into consideration,
it was deemed best that IL per cent. semi annu-
ally sufficient. That the Sc banks referred to
have declared dividends Of per cent. sem-annu-
ally is no argument against a reduction. Many
of them believe that the only measure Of safety
in the future is a limit to per cent. annually.
Some thai have declared per cent. during the
past wear haven't earned per cent, but being
strong and TO some extent having a reserve fund,
and being Compelled by the fact that others were
declaring dividends of per cent. aud that TO Il
certain extent il would be disastrous not to de-
clare dividend to the same extent, they have
drawn from their reserve fund to declare 8 per
cent. He was satisfied that such would
be disastrous 10 the interests of depo.itois and
hat a reduction to IL per cent semi annually
would be looked upon as right by the people.
MIR. PHILLIPS further advocated his amend
ment claiming that there is scarcely bank in
the State that loans money for less than per
cent. per annum. majority of them received
more than that, some nine and some ten per
cent. lie thouget that in view of this fact they
could pay depositors per cent. Ier annum.
Mr.. PIKE regarded the provision limiting divi-
bends to IL per cent spontaneously, as wise
one. so far he had been able TO learn, savings
banks bad abandoned the first principle, safety,
aud gone for high rate OF interest Ii is not u
great matter of importance to poor individual
that C n save $500, whether he gets five or six
per cent. dividends annually but IL is matter of
immense Importance whether he gets the $500
back or has to axe $3.50 They do lot want,
instead of the $500, to have an excuse that times
| are hard and the bank has had bad luck in some
Investments somewhere. lie regarded it high
line that provision of the kind contained IN the
bill, was adopted for he was much surprised last
year, when the matter of interest was under con
sidei at on find that Of the saving, banks
had dnl Cd per cent, aud the average interest Of
,ome OF them was 10 per cent. They bad been
skinn,ng somebody for the benefit of somebody
-lse and all under the petence that II was for the
poor widows and orphans" Aud cone to look
1t, he found that siugle depositors had from ten
to twenty thousand dollar. belonging to the poor
~idows aud orphan,' OF course. They had used
the sayings banks for the purpose of money max
ing and to get lid of taxation. He was happy to
that there cha for the H. hit principle
TO prevail, aud he hoped the amend nent offered
would not he adopted.
Mr. CLARK of Damariscotta inquired If the per-
that had.ih SO, 900 widow or an orphan.
Mr.. PIKE thou ht the poor might be stricken
out
Mr., JORDAN of Brunswick said he had consult
ed his constituents 10 regard to the matter, and
they IS veil as he. were in sympathy with the bill,
aud he hoped 1t would pass.
Mr.. WOODS considered the provision under dis
cussion of the wisest in the bill. Banks are
pay ing in proposition 10 what they have to pay,
aud in this wild endesvor they have taken much
| worthless security. If they are obliged to pay a
high rate of interest they will be more likely to
get bad risks, and the result is that the people are
the losers. lie hoped the bill would pass without
the amendment.
The amendment was rejected.
Mr.. Robe offered to amend sec. 10 in the Sh
line, by Inserting after the words ~ nited State"
the words ''in the municipal bonds Of all cities Of
10000 inhabitants or more, in the states OF New
York, Ohio, Indiana, illinois, NJ ichigan, Missouri,
aud county bonds In the same states, when not is
sued in aid of railroads. provided, that invest
| ents shall be made in the bonds OF the several
cities and counties of the states of Indiana, ILL
nd % a..