Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1877-02-23

or be loaned TO richer or moro stirring
neighbor, and The chances taken of his
proving solvent and honest. With the add
vent Of the banks this was all changed in
them the humbest classes who were try
ing TO lay by something for a rainy day, as
well as the more well-to.do farmers and
mechanics, found friend and protector,
and their earnings and savings were no
longer dependent for their safety, or lack
of safety, on the ups and downs of individ-
ual borrowers. The rate of interest which
these depostors received was comparative.
ly low, and in most cases less than they
could have got elsewhere, but this consid-
Grafton was counterbalanced by the securi-
ty which the system afforded, by its con-
venience, and by the fact that the money
could be had whenever it was wanted. 1t
is also undoubtedly true that another pri-
mary idea involved the expectation that
the officers of the banks would use the
funds confded to their care, in great part,
for the benefit of home borrowers and to
aid local enterprises although, in this State
there was no definite legislative provision
on this point.
But while agreeing with our correspcn-
dent as to the original purpose for which
savings institutions were established, we
are far from accepting his sweeping asser-
tion as 10 their haying drifted entirely
away from their first principles of protec-
ton and accommodation until they have
become nothing but monopolies and con-
Germs for the protection of capitalists and
moneyed interests. All our social and
business relations, and our methods of do
ing business, have materially changed
since savings banks first came into exist
ence, and with this change in the condition
of things the province and operation of the
banks have unavoidably changed to a GER
tain extent. We do not now stand in un-
qualified defence Of the banks, but it must
in justice be said that the protection which
they afford is the same now that it was in
the beginning, nor was it ever greater than
it is to-day, provided always that the Of
| ficers prove themselves honest and efficient.
| The only difference is that a much higher
rate of interest is paid now than formerly,
| but this fact does not detract from their re-
liability, or raise a question as 10 their
soundness and solvency. Oh this point it
is simply a question as to whether they
shall continue policy which permits this
rate OF interest TO be paid, or whether they
shall adopt a course more in accordance
with the spirit OF the times, and which
would involve the payment Of lower rate
| 10 depositors. So far as the "widows and
orphans and small depositors are con-
cerned they probably never had greater &C.
casion TO feel satisfied with the condition
| of the banks than is the case to-day. Their
savings are safe, they earn a liberal rate of
interest, and they can be had any day for
| the asking.
Nor does the charge that our savings
banks have become monopolies and insur-
ance concerns for moneyed interests seem
to us any more teuable than the one about
their protection or want of protection. II
they have 10 any extent become such con-
Germs it is not because their officers have
sought to make them such, but because the
natural course of things and the force of
circumstances have compelled the change.
| 1t must be remembered that the officers of
the banks derive 10 pecuniary benefit from
| the operations OF tho institutions beyond
the limited and specified salary which they
receive for their services. To them it makes
no difference, financially, whether The
funds in their keeping earn much or little 1;
they have no motive for protecting "mon
eyed Interests" beyond the fact that they
are bound by every moral and legal obliga-
| ton TO secure the absolute safely and The
advantageous use of the money placed with
them. A large proportion Of this money
belongs 10 the hard working and prudent
men and women, and while they neither
promise nor can promise any specified rate
| of interest, natural feeling of pride and
emulation prompts them to do as well with
these funds as they can. After reserving a
sufficient and safe surplus to meet all con-
tingencies they simply divide the profits
among the depostors to whom they belong,
and in this division the working man shares
equally with the capitalist. We speak from
unqueslioned authority when we say that
while the banks do not refuse large depos-
its, when permanently placed with them,
they have never sought them, nor has il
| ever been their policy 10 so advertise their
condition abroad a to call in deposits from
other States.
AS regards The matter of home accommO-
dalton we also believe il 10 he true that our
| banks have never refused loans 10 local
customers, when The security was unques-
toned, if the necessary funds were in hand;
nor have any local loaus ever been called
in so long as their security remained I'M
impaired-and we mis bit with equal truth
say that no loans have ever been made in
the West or elsewhere abroad, that could
not be realized on quicker and with great
er certainty than on the average OF loans in
Vermont. Thus much in answer 10 some
of the more salient points touched on by
our correspondent and in just acknowl-
edgment of the sound, judicious and ac-
commodating policy which characterizes
the management of our local savings
banks.
When we go step farther and touch up
on the rate Of interest we reach a subject
| in which lenders and borrowers-the banks
and the people-are alike interested, and
when viewed in its right light we believe the
interest is a strictly mutual one. Our cores
pondent undoubtedly takes an exaggerated
view of the case when he intimates that
high rates of interest at the East drive the
! young men TO the West, because it is evil
dent that the difference between @ per cent.
aud per cent. interest in Vermont would
not compel a careful, prudent farmer 10 go
West where the rate varies from 10 TO IL
per cent, and money is hard to get, even at
] that price, while almost every sort of pro