Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-10-04
Report Of the Inspector OF Finance.

eral assembly, to whom IL is addressed. The
report is commendable document in form
and matter. 1t gives in an orderly aud in
telligible arrangement all the information
which the law requires the inspector to lay
before the legislature. From this report
and from the suggestions which this official
has made, the general assembly should have
little difficulty in deciding what changes
are required in the laws affecting the saw
ings institutions of the state. The follow
ing are the details of the report which will
have general interest. The whole number
Of depositors in the savings banks and
trust companies at the date of the report,
June 80, 1882, was 1858. There was
to the credit of such depositors, sl2,675,-
2697l. OF this sum, Sl0,22l, 1882 was
the property of resident and S2,45i, 09l.19
Of nonresident depositors. There were
27,996 depositors, each having less than
$3.50 to his credit, and aggregating 49,
1Ss. 656.44 l4,5S7 depositors had individu-
ally more than $3.50 to their credit, or a
total of s10,4s6,613 81. Included in this
latter class were 1913 depositors having to
their credit over 50 600 each, and aggregat.
ing 5000, 223.27; PHI of these amounting to
1927 ,933.7S were deposits in the six trust
companies which are not restricted in the
amount which each depositor may have to
his credit, the strictly savings institutions
being prohibited from receiving and paying
interest upon over $4,000 to any one person
except in certain cases.
By way Of comparison with former years
| it may be stated that the number of depos-
itors in these institutions was 7,714 greater
than at the date of the report two years
ago, and that in his report for 1880 the in
spector says the increase for the two
years ended July lst of that year, the date
of his report, was 1852. OF the total in
crease for the past two years, 1910 was for
the year ended June 80, 1851, and 4 ,204 for
the year ended June 30, 1882. In 1880
there were 24,540 depostors, each having
$3.50 or less to his credit and aggregating
1882, 29037, showing an increase in the
savings of this numerous class of deposi.
tors of $500. 366.97. In 1880 there were
10,329 depositors having over $3.50 each to
their credit and aggregating 81, 1913, O24O2,
showing an Increase, during the two years,
in this smaller but more thrifty class of
money savers, Of S3,293, $685. or more than
ten times the increase of the small deposit
class, which, however, is in point of num-
bers nearly double the class whose indi-
vidual deposits exceed $3.50. 1t would be
very gratifying evidence of the increasing
thrift of the people,-this addition of nearly
eight thousand in two years to the list of
names enrolled upon the books of the saw
ings banks and trust companies of the state.
1t must not, however, be forgotten that
new tax law has been in operation during
these two years. For the two years imme-
diately preceding the passage of the act to
equalize taxation, the increase in the num-
Der of depositors was considerably less than
three thousand, and it is barely possible
that some portion of the large increase dur
ing the last biennial term may be attribute
BILE to the new tax law. The theory that
this increase may not be entirely dscon-
nected with the workings of that law is
siren gthened by the fact Of the vast pre-
ponderance of the increase of the large de-
posit class over the small as shown above,
and by the further fact that, of the 7,714
increase in the depositors, 4,25S are of the
Weather class, a number entirely out of
the proportion which the large depositors
sustain to the small. The inspector him
self seems to have entertained suspicion
that some at least of these savings banks
have been put to Legitimate uses by moneyed
men. Discussing the proposition, which he
recommends, of reducing to 1900 the
amount allowed to the credit of each indi-
vidual depositor, he says, Most of the saw
ings banks, however, have not knowingly
allowed deposits to be made from monied
men, or for the purpose of avoiding taxation,
while others less discreet have, fear, al
lowed and in some instances encouraged
arge deposits from parties not entitled to
their protection" The inspector very per-
tinently says that such depositors possess
sufficient ability to care for their own money
as well as the trustees of savings banks can
do it for them, and protests against their
being allowed to crowd their money upon
the savings banks to the detrment of the
smaller and more deserving class of deposit
ors who are the legitimate benefciaries of
these institutions. The inspectors recon-
mo do fiopo in thio H., 6
careful consideration. Still, when it is seen
that against 27,996 depositors having $3.50
or less to their individual credit, who as
class are the people for whom the savings
banks are chartered and whose aggregate
deposits amount to little more than two
millions dollars, are to be placed II 5S7 large
depositors, aggregating to their credit nearly
ten and one-half million dollars there is
room for reasonable doubt as to whether
this matter of exemptions does not open the
door to more evils than it is designed to
cure; whether when any exemptions are once
allowed the bars can be put up sufficiently
high and strong against abuses which may
convert benevolent design into positive
evil. In any event, the work of tax reforma-
tion, it would seem, may profitably be pushed
in the direction indicated by the statistics of
the present and former reports of the in
spector of finance.
Taxes to the amount of S59 6Sll2 have
been paid by the savings banks and trust
companies during the past fiscal year. OF
this sum 1890 80 has been distributed to
the towns in the state according to law,
leaving the balance, the tax on non-re sident
deposits, in the treasury. The inspector
recommends that the whole of this tax re-
main in the state treasury for the use of the
state, as every town would then more equit-
ably participate in its benefits by CORE
spending reduction in the state tax. An ex-
animation of table No. in the report must
convince every one of the wisdom of this
recommendation. The amount distributed
to number of towns is less than one dollar
and in some cases is lust three cents one