The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1883-09-26

an increase of 3735 during the past year.
The total amount of deposits was $14,-
0506470S, an increase since the last
yearly report of 81, 1916, 37737. With the
exception of little more than two and a
half millions,'the deposits are by residents
in this state. OF individual depositors, in
sums of $3.50 and less, there are 28,476,
more than one-half the entire number,
but owning only S2,3O1, SIG AZ, or about
one-seventh of the total deposits. The
balance, 81, 749, 1901, is by 7,S42 de.
positors, having to their credit individ-
ually sums exceeding $3.50. The average
amount held by each of the small depos.
itors is $50 80, by each of the large de-
positors $65963 a slight increase in the
former, but decrease of $59.27 in the lat.
ter during the year. The reduction to
81, 800 of the amount of deposits exempt
from direct taxation to the individual de-
positor has caused, the inspector says, q
larger reduction in the number of heavy
depositors. Two of the seventeen saw
ings banks have passed dividends, not,
however, by reason of compelling mis-
fortunes, and the remainder have paid
depositors from four to five per cent in
terest. Two of the trust companies have
also passed dividends, and the others
have paid to their stockholders from
three per cent to eight and one.eighth per
cent. The inspector favors statutory
limitation of dividends to four and
one-half per cent and an increase of
the amount reserved as a surplus
fund from one-eighth to one-fourth
of one per cent of the deposits
each year. The present undivided earn
ings of the banks, interest and surplus, is
1928 51923. There has been an increase
in the amount of cash on deposit in
national banks and an increase in the
amount of national bank stock held as an
investment by the savings institutions.
This the inspector seems to regard as of
doubtful wisdom, from the fact that such
stock, whether owned directly or held as
collateral, is liable to assessment, if the
losses of bank exceed its capital and
assets. Arbitrary restriction of the amount
which may be loaned to one person, or
firm, or corporation is advised. The
practical wisdom of similar advice by In
spector Dubois and of recommendation
of like nature by Governor Barstow have
been demonstrated by events and will not
this time fall on unheeding ears. The
passage of general law for the regula-
ton and control of these institutions,
granting to all uniform rights and privi-
leges and bringing all under uniform re-
strictions, is recommended. The result
of the inspectors examination of the St.
Adams Trust company has been given in
these columns in general way, but we
quote the essential portion of the officials
report:
son July 18th last, made my first exami-
nation OF this institution, and found several
excessive loans among the assets. Among
others heavy loans to the Norwood Lumber
Company and to certain parties in Plattsburgh
N. Y. On none of this paper was there any de,
fault OF interest. To my enquiry as to the
amount OF debts on which no interest had been
paid for one year-the reply was about Sc, 600
To my enquiry as to the amount of debts known
to be doubtful, and estimated loss thereon, the
reply was $1,000 of doubtful paper and esti.
mated loss thereon $1,000 to $1,000. was
assured that the other debts were good and
collectible had then no reason to suppose
the large loans were not good as represented
but condemned them as excessive, and in
sisted on heavy reduction at once, and was
assured that at least 500, 600 to $3.50 600 would
be paid thereon within three months. As I
knew had but little power in the premises
except in case found the trust company in.
solvent. and knowing there was no middle
ground between conservative course and in
sovency, from which great loss would ensue to
the depositors, and knowing the impossibility
OF reducing the debt to any material extent i'm
mediately, and having a strong conviction that
the Objectionable loans would be reduced, as
promised, | thought it best to give an oppor-
tunity Of making the promised reduction"