Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-01-25

He was satisfied that 1t was within the province
OF the State TO exempt from taxAt on as well as
to make special tax. He argaeG that a tax OF
one per cent on deposits in savings banks was
equal to the taxation laid on the other property
in the State, and proceeded to show that certain
assets In those Institutions are IN fact taxed
twice. In view of this and other reasons which
he mentioned, he thought the tax should be ms
small as possible. The money OF the poor is
put into these Institutions and they should be
places of safety. But he knew there had been
distrust Of their stability to some extent ia the
minds of the pc ple. " e ind almost tour millions
OF dollars have been drawn out the past year.
Reducing the dividends from TO per cent was
right, and reduction of the State tax from one to
onehslt Of one per cent was also night. The ten
dency oil lhlswould be to reduce interest through
OFT The state The result OF lowering the rate
OF dlVioencs would be that many OF the large
depositors will withdraw their money and invest il
elsewhere, add the banks would be very glad TO
have Them do II, that toey may answer the pur-
poses Tor which they were intended IN the first
place.
Mr.. HAYNES favored the amendment to make
the tax one pr cent. Tne on, be letit he could
fud under the bill IN The indirect euhalce-
ment OF the safety OF deposits by the reduction of
the per centigc which the hanks are allowed to
pay Certainly the borrower woul never receive
any beucht from he reduction. Savings banks
OF any other Institutions that have money, will
chafge all they can get. The effect OF the re1uc-
Nm i 10 increase the surplus which the banks
Hiu-l nOlu IL was tluG kIAt al pIc-G ut money ls
wor h les than 1t has been for several yeas, or
viii be year from now. But the biz applies
not only 10 the present state of aft Irs, but 10 the
future. Under the existing enc 4m,ta aces he did
not believe that the people Of the State would
care to see the tax OF Que per cent reduced.
lie referred 10 ATaSe constitutional objections to
parts OF the bill, TO the exemption from taxa
ton particularly. the people were Opposed to
submit on account Of the gam which the State aud
,chool fund derives fbm tue present tax. Tuey
nh a .nN
long ms they thai 1t takes the direction this
does. he made no stated objection 10 the bill al
though he b, leve1 the matter OF interest should
he allowed to regulate itself by the laws of busi-
ness. lie was satisfied tIat savings banks could
pay six per cent as long as they charge The rites
they are now changing, aud he did not believe that
any bauk Cihcers Ia any majority of cases would
be disposed TO reduce the amount they are now
charging the borrower notwithstanding they are
not Obliged to pay over per cent
Mr.. LORD OF Bangor, thought the motion as
originally made, to make The amendment per
cent. would be the most likely to make the tax
equal and right, and re moved to amend the
amendmeut IN that particular ass compromise be-
tween the advocates of one and one half per cent.
Mr. WApswuRTH OF Manclesttr, said that the
more he thought Of the matter the more pleased
ne became with the anenJment suggested by the
gentleman from Calais, (Pike) of "one per cent"
lie Ihon- INT II afe to depsr. from the estab.h
ed tax Name had invested money TO induce
foreign capilai TO come in and develop the resoir-
ses OF the STATE. Ii struck him that foreign capt.
talsts would ask why the money in our savings
banks was mol used TO deyeop the resources. OF
state instead Of being locked up in idle securities
winch no benz fl to la0ori He spoke of the
iapi1 Increase in savings banks and then deposits
ana touched ion the II ls,ce Of taxing them
less than other opety Of tho state. While
every other Industrial pursuit III the State is nk
iu9 under Its buIC Gus, but bearing the M manfllly
the savings banks representing thirty two mil
nous oil dollars and IL para Of the valuation of
tie State, come crouchlug round the hail of the
Legislature asking TO be relieved from a part of
their bun deas. lie WAS not an enemy to savings
banks. lie had pecuulary interest IN them and
was interested IN Their success aud welfare. But
he had no pecuniay interest that should csc ape tax.
atlon, ami he vas not willing that others SD u d
nave.
Mr.. PnsBURY replied to the last speaker, deny
ing that the money deposited IN savings banks is
idle. He claimed tn at a la &c portion OF the mon
ey deposited is loaned to paities in the state.
and is now being used for the development of the
business interests OF the state. He ave iustra-
lions OF how II is beirg used.
Mr.. LOCKE SAID low rate Of interest tends to
a id the industries of the state lie had voted to
limit the dividends to per cent because he believed
that 1t would enable banks to loan to borrowers at
less rate PET cent than heretofore. Gentlemen
would see tnat il the deposits are taxed at one
per cent. the borrower at the bank has got to pay
it. Ia view OF this fact, and the fact that large
amount would be forces from the banks N account
OF the reduction in dividends, he thought a tax of
one per cent. should not be Imposed, but that they
should be left TO loan money as low possible
Mr.. LOCKE continued at some length.
MIR. CLARK of Appleton thought that the pur.
poses of savings banks had bee almost lost sight of
They had been created for the poor laborer lie be-
lleved mat the small deposits were made by those
comparatively wealthy. lie could deposit $500
Tor himself and he same amount for each member
OF his family, while his poo: neighbor pays tax
on every dollar he has. lie did not believe this
ri SHIT, aud he was in favor of the one per cent tax.
Mr.. PIKE, in reference TO securities taken by
banks, sald he noticed that the Augusta Bank, Of
It's deposits OF LIZ mlllJps last year, sent some
thing IKE one halt beyond New England. This
vas taking out west IN Iney that III ght be used TO
develop home industries
In regard to the tax, he said he had no hostility
to sayingbanks but Ia looking the property of
The state, aud acting in his capacity as a legsla-
tor, he could see reason for III lking such dis
elimination IN favor OF this class OF property.
Mr.. PILsBURY replied.
Mr.. uADLuCK SAID that now an amendment
bad been adopted taking off the restrictions of Sc
cuutles, enabling the bankl TO get better class,
he thought they could well afford to pay the one
per cent. The State need, the money for the
support OF lis schools and the replenisnlng of It's
Treasury ana believing il was right he hoped the
amendment OF one per cent. would be adopted.
The amendment II the Amendment making the
lax "a Of one per cent was rejected by u vote of
80 TO o6.
The question then REQUIRED upon the amenl-
mcn to make the tax one per cent. aud Mr.. Pills.
bury called Tor The cas- and nays. Lost.
Inc amendment was then adopted.
Mr.. PIKE moved to strike out sec. Sc. He said
1t formed a partnership between the Supreme
Cont AMI the banN examiner. IL proposes that
he bank examiner may ~ or, and without giving
notice 10 the creditors OF the bark, may cut down
the amount The bank owes them, after an examin.
alion OF Tue affairs Of the Institution. Ii also pro
vlded that the bank may II en 20 in its business
without any provision tUr separation OF the bust
utss, and II It can pay tue whole amount to the
cIeunurs 1t may. lie thought 1t a provision that
could never be carlied Out aud one very liable to
abuse.
Mr.. PMsBURY said the purpose of the section
was Soud Que, although the provision might not
ne jl.t whal W ~ required. Dcposltots in saving,
banks should have tie control of their deposits
Circumstances may arise where the assets have
deprecated somewhat. Ii properly cared for
they may he worth % per cent. But it thrown
INTO the hands of receiver the depositors would
not get anywhere near that. The design OF the
section was TO put tue matter into the hand, OF
proper patl ), where the interests of ali the de-
pastors could DC taken CAFE of. Ii the section
was not what It ii Iuld be he willing have 1t
atnendel lie shed ioI further time 10 look at
the matter.
MIR. PIKE temporarily withdrew his motion to
strlhe vut, aud moved to amend by adding an
,ttsl f,Il ,,is