Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1882-11-03

The Savings Banks.
The news from Montpelier indicates that
the Ways and Means committee of the House.
of which Col Hooker is chairman, are max
ing good progress toward the perfection of
their proposed bill for raising the state tax
by direct tax on corporations. Reliable in
formation comes to us that probably not less
than $3.50, 900 will be raised in this way, and
we notice that the sum is placed by some par
ties as high as 100000. All good citizens
hope to see this idea of making corporations
pay their fair share of taxes carried to sue
cessful issue. From the sum which is named
as the expected amount to be secured from
savings banks we judge that it is not in con-
temptation to go above the tax of one-half
Of one per cent. which is now levied on the
deposits in these institutions. So far, at
least, as the savings banks proper are con-
cerned, this is undoubtedly right. Whether
the several trust companies in the state might
not in equity be made to pay q larger tax
than this is a question which the committee
will, no doubt, take into careful considera-
ton. With people not fully versed in the
subject the fact is too often lost sight of that
the savings banks and trust companies are in
reality two separate and distinct classes of
| institutions the former being in no sense
money making institutions, and their only
object being the safe keeping of the money
entrusted to them and its investment strictly
for the benefit of depositors, while the trust
companies are organized by capitalists with
certain amount of capital stock to secure the
| deposits which they are authorized to receive.
These depositors receive a certain rate of inter
est and the managers of the institutions use
these funds, under certain restrictions, in
| manner to make for themselves as much
money from such use as they may.
Still further than this, in the consideration
of the subject of savings banks proper the
fact must not be lost sight of that their pri-
mary purpose is to promote habits of thrift
and economy among class of people whose
earnings and savings are alike small, and their
effect is to make many man and woman a
capitalist" to the extent of 800 to $500
who otherwise would never save q dollar of
their earnings. Proof of this is found in the
fact that, in our old savings bank here in
Brattleboro, out of 1856 depositors 3. 453
| huNO NC pOoltb VI ltbh luhu EzDU thCu. IN the
Brattleboro savings bank, out of a total of
2,714 depositors, l, 500 have deposits of less
than $3.50 each. In the smaller banks this
feature of small deposits is equally marked.
Out of total of 7S7 depositors in the Viii
mington bank, 537 have less than $3.50 on
deposit in the Newfane bank, S4S out of
1896 depositors and in the Jamaica bank 472
out of GAO depositors, have less than $3.50
each. These figures show q state of thrift
and economy among the laboring classes which
it should be the policy of the state to encour-
age.
The aggregate of deposits exceeding $3.50
each is, of course, more than the aggregate OF
those less than $3.50, but the figures of the
state inspectors report do not indicate that il
is the policy of the banks to encourage large
individual deposits. In the Vermont savings
bank only 81 depositors, in the Brattleboro
bank only 27, in the Newfane bank only 8, in
the Jamaica bank only one, and in the VIII,
mingson bank no depositors, have deposits
exceeding $4,000 each. In all cases, we are
told, these large deposits are the property OF
widows, minors, or other similar persons, who
cannot properly look after individual invest
ments. Under the present law the banks are
not allowed to pay interest on single deposits
exceeding $4,000, and every year it is coming
to be more and more the case that the banks
do not care to accept large sums from indi
viduals to invest and care for. On the first Of
July, 1881, the Vermont savings bank asked
all its larger depositors to reduce their depos
its to 81 900. This would indicate that il
in the case of the larger banks, at least the
legal limit of deposits might we'll be reduced
to $500 or $1,000 each.
All the facts and figures which are attaina
BILE indicate that our local savings banks are
not used to any considerable extent to screeI
property from taxation, and it certainly is no
the policy of their managers to encourage
such an illegitimate use of them. If capital
lists seek to cover up their property by placing
as large deposits as possible in banks through
out the state, such action should be ferretet
out, and the special bill introduced by Col
Hooker, to which reference was made las
week, seems well adapted to this purpose
The policy of the state should be to hold tn
savings banks as strictly as possible to thei
prime function as conservators of small say
ings, and, this DONE TO encourage the aocu
mutation of such savings to the greatest pos
sible extent