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

49,
duce brings less sum than here. Bot
when he says that "6ve per cent is higher
to-day than seven per cent. six years ago."
he states fact which every business man
feels aud knows TO bo true. We are not
among those who are ready TO condemn
either the savings or the discount banks for
having charged and taken higher rate OF
interest than that nOminaliy fixed by law.
The case is one la which custom and the
necessities Of the case make the law, and
the high rate OF interest was natural out
growth Of the Flush" times which followed
the close of the war. But the times have
changed, and with them the temper OF
the people has changed, so that the ques-
ton which now presents itself TO our mon
eyed institutions is whether 1t would not
lie a wise policy, and beneficial to all con-
cerned, were the rate OF interest dropped 10
the legal six per cent. We are we'll aware
that this change would involve the pay
ment offs lower rate of Interest 10 deposit
ors, and we can appreciate the natural feel
ing OF reluctance which the officers of the
banks would have, on some accounts, to
entering on such a course, but, aler all,
the great question still remains as to wheth-
er the times aud the condition of business
do not demand the adoption Of this policy.
That the general public sentiment is more
aud more growing TO demand it is beyond
question, aud the demand arises FROM the
fact that the people cannot afford TO pay the
present high rates. Could they aiTjrd it tue
money would be taken and used at the rate
asked without complaint or hesitation. As
ii is the young farmer fears TO buy farm, the
young mechanic ahouse lot and the manu-
facturer or business man TO enter on any new
enterprise because he thinks the rate OF in
terest more than he can afford to pay. Ifit
should be said in reply that the present is
no time for new ventures of any kind, be
the interest rate high or low, we should au-
swer that the day has gone by when any
thoughtful man looks for any sudden re-
vival Of business. The change must come
by slow degrees, here little and there lit
tie, and as helping to bring it about every
proper means must be taken TO create a
confident and cheerful feeling among the
people. Could anything conduce more
toward such a desirable result than the
knowledge on the part of the people that
the banks are ready to extend helping
hand aud loan them the money which they
may need, on good security, at a rate which
they can afford to pay? The simple an
nouncement that the rate of interest had
been reduced would of itself give new life
and courage 10 the great army Of debtors
and would mark new era of hope and
good feeling. As we have already intimat-
ed it is plain that the interest in this mat
ter, as between the banks and the people is
a mutual one. A liberal and generous pol
icy, which makes the producing classes
prosperous and contented, in the end, by
its reflex influence, equally benefits capital
and the moneyed interests. Aud the re
verse is no less true.
The whole tendency of the times is un.
deniably toward a lower rate of interest
The new issue of government bonds bears
only A per cent. and is being rapidly TAX en-
even at that rate. The savings banks in
several of the States are moving in the mat
ter. A paragraph from recent issue of
prominent Massachusetts journal says:
1.-THE Boston savings banks are seriously
considering the expediency of ducing the
rate of interest promised to depositors to 1
per cent. preliminary to fixing the rate on
money loaned by the banks at 6 per cent.
The propriety, ii not the necessity, of re-
ducing the rate Of interest on deposits is al
SO being discussed by The savings banks
managers of New York and Connecticut.
That this is a move in tue right direction,
there can be no doubt. Money is not worth
more than six per cent, TO borrowers, and
for the saving hanks TO demand more OF
their customers is TO invite disaster"
Nobody, fortunately, fears any disaster
to our local savings banks. With them il
is simply question of policy, and in de-
Gliding this question We believe that their
managers will remember that in one re-
spect at least our Vermont savings banks
owe more to the people than do those oil
some other States. We refer TO the fact
that our savings banks have never been
hampered by embarrassing legislation as
have those of other sections Of New Eng
land, and ii would be better for them now
that they should lead the way in this pro-
posed change than that they should be
compelled TO il by some future legislative
enactment. 1t would be better that they
should appear as benefactors than that
there should arise the least feeling that they
are becoming monopolies and oppressors OF
the people.
The considerations, which We have thus
attempted to state, apply, for the most part
to the discount banks with the same force
as to the savings banks, aud we offer them
simply as suggestions, and as giving voice
10 what we believe TO be the general senti-
ment OF the people. We know that the
managers of all these institutions have a.
ready given the matter much serious
thought and discussion, and We. have con
| fidence TO believe that their deliberations
| will result in s1ch final action as will be
for the mutual good Of the banks as corpo,
raIions, and of the people as individuals
and as community.
TfIaIan MI