The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1884-10-08

generally and steadily increased In amount
| The report OF the auditor, which will be in
| your hands, though extending TO the minute
details from which the foregoing results are
summarized, is so full Of interest that IL de-
serves to be reproduced here in full-that
| by repetition and in an increased variety of
ways this whole subject of state expenses
| may be spread before the public for their
careful scrutiny OF the details which go to
make up its aggregate.
REPORT OF THE INSPECTOR or
FINANCE.
This annual report shows the condition of
the savings banks and trust companies of
the state on June Both last. In view of GER
tain data and recommendations appearing
therein deem 1t my duty to make special
reference to 1t for the general information
OF many who may not have il at hand and
into whose hands this communication may
come. 1t appears by this report that there
are twenty-four savings banks, savings in
stitutions and trust companies in active
business in the state with forty-fve thou
sand eight hundred thirty-seven deposit
ors holding deposits aggregating S13,7A,-
291.53, of which amount 81 1877 100.7S be-
long to resident depostors and $685.
21S.75 to non-residents; the average amount
deposited by each being S299.35, or about
one-third less than the year previous. IL
will be noticed by reference to the inteli-
gent and concise tabulation arrangement Of
the inspector of finance that there are but
two hundred seventy-two depositors having
to their credit over $1,000 each, and that
about one-half of these deposits were in the
seven trust companies which are not re-
stricted by law in the amounts receivable
from any one person; while the savings in
situations are prohibited from receiving in
excess of that amount except from widows,
orphans, executors, ETC., these persons be-
ing the only benefcaries for which the saw
ings bank was primarily intended. The re-
lnyy thiaptinu # -
this individual deposit to taxation has de-
creased the number of heavy depositors d" n
result" as is well said by the inspector,
" most gratifying to the managers of the
most conservative banks" OF all our saw
ings banks but one has passed it's dividend,
and that one for the special reason of ac-
cumulating with view of winding up.
These dividends have varied from four to
five per cent This is result most crafty
ing concerning the successful operation and
management of our savings banks. This
institution-the savings bank-is const-
tuted essentially in the interests of that
portion OF our people who are less able than
the more experienced financiers of the COM
munity to husband and convert, from time
to time, their earnings and savings from one
kind of security to another. 1t Is, in short,
the bank of the poor, the widow, the orphan
and the daft, who are unable to find q more
remunerative place of investment for their
savings 1t therefore becomes your duty to
see to 1t that no safeguard which your judg-
ment and forecast can invent, be omitted in
your legislation, to shield this institution
from the possibility of miscarriage, that its
beneficent object may be attained accord
ing to the original designs and purposes for
which it was instituted. The inspector of
finance should be armed with the sword of
the law that he may protect this class of
depositors with the shield of the law. The
inspector has also submitted in his report
series of recommendations which are stated
with degree of conciseness that would
seem to render an abstract thereof hardly
adequate to rightful comprehension Of the
Same and that these may be impressed
upon the general assembly in their original
clearness and Importance, and believing
that the same are entitled, in consideration
OF their vital interest to those of our people
having hard earned moneys to deposit where
they may be safe and yielding the fruitage
of moderate increase and also in view OF
various losses that have come upon some of
that class of depositors since the last session
of this general assembly, through the INSULT
cheney of the laws on the subject here
quote with my full appreciation and APP
prevail the following from his report: " /
recommend the enactment of a distinct code
for the trust companies which shall clearly
define their powers under their charters,
that there may be no uncertainty as to the
investment that they may lawfully make.
Az there is no limitation of the amount of
the entire assets OF any trust company may
be loaned to one person or upon any col
laterals which may be thought to be good by
the trustees or directors for the time being.
In few instances have found loans to one
person or firm, by trust companies, Of over
sixty thousand dollars. Ny predecessor, in
several reports, called attention to the dan
ger from excessively large loans, suggesting
that it would be safer to make loans in mod
crate amounts, scattered around in various
lanp tl.p,, az 80
thousand dollars in one place, subject to
only one misfortune to hazard the whole
amount To this sentiment heartily sub
scribe If the laws should specifically re-
strict loans to any one person, corporation
or company, or its individual members, TO
some limited percentage of its capital stocks
or deposits and should forbid any officer or
trustee of trust companies and savings
banks, borrowing funds of the corporation
or becoming surety to it, the result would be
beneficial" | also specially commend the
recommendations of the inspector in regard
to the officers and bank examinations, and
the investments of school and municipal
bonds, to your consideration, and recon-
mend such legislation on your part as will
tend to make available these desirable safe
guards in the first, and safe investments in
the other cases.
EDUCATION.
The paramount importance of this inter
est can not be Overrated. Upwards of
seventy-three thousand of our youth, being
more than one-fifth of our whole population,
are, year by year, undergoing the training
and education which our common school
affords Upon the character and quality OF
this school, as an institution OF learning and
virtue, the future character and quality of
our state institutions largely depend And
in it we are not moulding and shaping the
future of our state alone, but Of others
even to the influencing Of all where the
Anglo American race are planting or peo-
pling new states or enlarging the mission
airy operations and successes of mankind the
world over. 1t is automatic in American
politics that free institutions cannot subsst
among an unlearned people, but must draw
their life sustenance from the intelligence
and culture of the masses-which virtues
cover and protect them with an impenetra-
BILE Pgis. II il for wise legislation to de-
termine and direct how the $500 900 which
is annually devoted to the common school
education OF these YOUTH by direct taxation,
may be made to yield its best and most en-
during returns for the welfare of the state
and for the good of mankind. Nor il il the
large sum of money thus expended that
robes this interest i'll its chief importance.
1t is rather the rich returns that we may be
assured of to brighten the visions of coming
years if the annuity is wisely disposed and
applied, or, on the other hand, the disap-
pointment and despair that is the sure fruit
age OF our suffering this interest to languish
and die simply because it is not made TO
progress and keep abreast with the current
of the best regulated states in this regard.
Can it be answered why Vermont--one of
the most nearly non-Inanufacturing states
with "a foreign born population of only 49,
600, and with her district school system a