Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-04-06
S4ILNGS BANhS.

To tie Editor Of lie Josrnal!
Attorney General Emery in an opinion recently
published in the journal holds that Section 9, of
the Act of Feb. 9th, 1877, in relation to Savings
Banks in prohibiting the Banks from receiving
"from any one depostor directly or indirectly
over $1,000" and the further prohibition 'that no
interest shall be paid to any one deposor for any
amount of deposit over said sum" of $1,000, with
certain exceptions TO both prohibitions, was in
tended to reduce Immediately, all preexisting de-
posts of larger amount down to the $4,000
standard, and Of necessity to force all amounts in
excess of that sum out of the Banks even without
the interest which the deposit money had earned.
l humbly conceive that the Legislature intended
no such mischief to the Banks and injustice to de-
positors. In enforcing his views the Attorney
General makes the declaration that mo with
drawal Of the excess" of $4,000 sis commanded,
but the interest on the excess is made to cease
| as though there is a difference in a command to
withdraw, or stopping the interest," practically the
result would be the same, the interest ceasing
would be quite as effcctual command to with
draw. The Banks must sell the securities in
which their funds may be well invested, to pay de-
postors in excess of the Limitation, and the de
postors are to 60 without the earnings their fund
have brought the Bank and be subject to the fur
Their detention, without interest, to comply with
the thirty and sixty days notice required in case
of withdrawal. We can not believe the assembled
wisdom of the State intended this. The reason
able construction to common apprehension would
be that while the Bank is prohibited from receir-
ing over $4,000 from any one depositor, by
double safeguard the depositor is visited with the
penalty Of loss of interest if he makes a larger
deposit, which the Bank by an additional prohibi-
ton is prevented from paying
That the limitation and prohibition is not re-
troactive and does not apply to deposits in the
Banks at the time the act takes effect appears from
the general scope and provisions of the act and
from Section AZ, which provides that "nothng in
this act shall be construed to affect the legality of
investments heretofore made" however contrary
to law they may have been, the investments are
not TO be questioned, they are of the past The
legality "of transactions heretofore had" are not
to be questioned, they are of the past. "Interest
on deposits already made" is to be paid at rate
not exceeding six per centum until the next divi-
dend following the passage of the act. The At
torney General says interest is to cease on deposits
in excess Of $1,000, upon the act taking effect.
What he will do with the prov vision in relation to
deposits already made" in which there is no
limitation in the amount it is dficu It to see The
deposits, of whatever amount, "already made
will in some Banks be carried to August and may
be at a rate even of six per centum; this is by
positive provision; showing the intention of con-
tinuing the deposits in the Banks at the time the
act became operative, unrestricted by the prohib-
tory Causes in relation to deposits thereafter
made, with the exception of the annual interest.
The Legislature can not so regulate the contracts
of depositors with the Banks as to destroy those
contracts; cannot deprive depositors of the ac-
crued earnings Of their deposits by compelling
them to go out Of the Banks without the earnings;
and where is the authority of the Legislature for
saying to depostors you must withdraw your de-
posts already made No such authority has been
assumed, and 1t must be a strained construction
which places the Legislature in the attitude of an
attempt to violate the obligation of contracts
The tender care of the Legislature not to disturb
present investments and deposits is shown in the
provision in relation to a change Of investments,
which must be done "in such manner as to pre-.
vent loss or embarrassment in the business of
such corporations" "or unnecessary loss to bor
rowers on such securities" Section ~ relates
almost wholly to enlarging, restricting, controlling
and constituting the other sections of the act, and
very appropriately comes in the last section, be-
fore the repeating section. JUSTICE.