The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1886-10-13


Among other important duties imposed
upon the inspector of finance is that of ex-
aiming and making report to the general
assembly as to the condition of the savings
banks and trust companies in the state.
This alone makes this Office one of grave
importance to the people. In 1860, the va
rous savings banks of the state held demos
its to the amount of about one million dol
lars; the amount now held June 3d. 1861
including deposits in trust companies is
fourteen millions, too hundred fny-three
thousand, nine hundred sirty-three dollars and
Jorty-SeCen cents, and the number OF depos-
itors (at same date is 49,453. To a very
large extent, these deposits are the savings
and in many cases the little all--of the
poor, the widows and orphans of the state,
and 1t is your duty to encircle them with
every reasonable limitation and restriction
as to investment. These deposits are in the
highest sense trust funds, Of which the di-
rectors, trustees and managers of these sa-
wings institutions are but trustees. In the
matter of the management and investment
of these funds, every other confederation
should be secondary to and yield to that of
safety. Any departure from this rule is
highly censurable. And bearing on this
subject, quote from the concise and able
report of the inspector with my unqualified
approval. He says The great underlying
principle which should, it seems to me,
govern the management of trust funds-and
than trust funds-is that safety should be
the first and strongest consideration actua-
ting and governing trustees" Savings
banks were instituted for the purpose of af
fording an absolutely safe place for the de-
post of the small earnings of widows,
minors and others, who are not sufficiently
versed in matters of finance to care for
their own savings. And this purpose is
wickedly perverted when trustees become
ambitious to build up great institutions by
paying large dividends and thereby attract
ing the capital of the wealthy" These
plain and well pointed remarks of the in
spector find application and meaning in
what is reported by him as to the invest
ment of these funds in " western farm mort
cages, The importance of the subject,
and the desire on my part that the views
and recommendations of the inspector be
more widely disseminated lead me to quote
further from his report. He says; Strictly
choice municipal bonds, a class of invest
ments upon which our savings banks have
heretofore largely relied, now rarely pay
more than four per cent net, and many of
our savings bank managers have deemed it
wise to discard largely this class of securi-
ties and to correspondingly increase their
investments in western farm mortgages,
which pay much larger rate of interest "
| call your attention to the recommends
ton of the inspector that the present limit
(5SA per cent? within which savings depos-
its may be invested in western mortgages,
be reduced to 40 per cent. l recommend
that the law limiting and restricting the i'll
vestments of deposits be so amended as to
meet the recommendations of the inspector.
Some of the present restrictions are SEEM
ingly MUST, or at least unwise. The well
known financial ability and standing of the
inspector, and his large experience, are,
am sure, quite sufficient to secure your ear
nest attention to his report. His evident
soicitude-not to say anXiety-is fully ac-
counted for by careful study of his report
In the report of the treasurer you will find
an itemjZed statement of the several trust
funds in his hands for which the state is
accountable, and the official certificates of
the auditor of accounts and inspector of fl
nance that they have examined these funds
and found the same correctly set forth in
the said statement of the treasurer.
EDUCATION.
Few, if any, subjects are equal to this in
importance, and am pleased to be able to
say that no subject has received more
thought and attention from the general as
sembly and also from the thoughtful peo-
pie of the state And l venture to assert
that it has been a long time. if ever, since
there was more Thought given to the sub
ject than at the present time, and it is prob
able there has never been a period when
there was more, if as much, anxiety and
solicitude concerning it as now. The i'm
portance attached to the subject Is easy to
understand, as WteUtVeHce Oh Iue masses Is
absolutely essential to the prosperity and
existence of our form of government and its
free institutions. But why the present nm
usual interest, anxiety and Solicitude? The
answer to this inquiry is found in an asser-
ton or proposition not pleasant to entertain
or contemplate, yet forced upon us by SEEM
ingly unquestioned and unquestionable
facts-an assertion promulgated by my pre-
decessors and also by the constituted heads
of the educational departments of the state,
both past and present, and corroborated by
the national census bureau. 1t is, that the
people of our commonwealth are increasing
in illiteracy--that she is losing rank with
and falling behind her sister states in that
education and intelligence that can come
only from the common or public schools.
| The proposition is as unwelcome as it is
| alarming, and would gladly refute it could
l see my way clear to maintain my position.
| Assuming that this is correct, | am led to
! repeat the inquiry of my earnest and &C
! complished predecessor, Ex-Governor Pin
! gree "Wherefore are we being left behind?'
| This is certainly a most important inquiry,
| and address it to you in all possible earn
estness, trusting you may be able, not only
! to answer it, but to find cure, and by
| early legislative action make vigorous APP
plication of it, even though it should involve
| radical changes in our educational system.
| Pursuing the subject, put the further in
curry Has there been in the past, or is
there now such want of proper pecuniary
support and encouragement by the state for
the common schools as to account for the
| trouble? If so, and you should unlock the
treasury and provide the proper aid it would
have my approval; but | understand the
reverse to be true. The trouble is evidently
not here. Looking further, let me ask you
as to the condition and efficiency of the col
leges, academies, normal schools, high and
| graded schools, and the larger and more
central of the district schools of the state.
My observation and information is that
! these as a whole compare favorably with
| like institutions of learning elsewhere and
have corps of instructors, teachers and
managers as competent, efficient and well
equipped as any. This being 80, we must
| look further for the difficulty. Outside
of the schools particuldrized are about
sixty thousand of the school children
of the state, exclusive of those who at
tend private schools, or about three
fourths of the whole number of scholars
attending any and all schools. 1t is said
and l do not understand that il is ques-
toned to any considerable extent, that the
trouble is in the smaller schools, schools
more or less remote from the villages and
central schools. Having located the trouble,
| Gf am correct in my information and con-
clusion) you can more readily search out
the disease and apply a cure and this is
your special province. In pursuing your
investigation, you will doubtless find that
the average number of scholars in these
| outlying districts does not exceed one-half
that of thirty or fifty years ago, the terrific
| rial dimensions of the districts remaining
substantially the same. The assertion or
proposition that small school fails TO keep