Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1886-01-15

We publish and call attention to the re.
ply of Treasurer Ward, of the Burlington
Savings bank, to some recent structures
of the Brattleboro Rcformcr upon the
management of savings banks in Yer
mont 1t is clear that these ut best were
too sweeping Brattleboro has the largest
savings bank in the State of Vermont If
the RCfOrmCr'S remarks had any good
foundation they probably applied TO that
and to the farmers in that section of the
State. To our Burlington savings banks,
we are satisfied, they do not apply. Mr.
Wards reply would perhaps have been
more effective if he had confined himself
TO statement of the fact-which we are
assured is II fact-that the Vermont far
mers and business men can get all the
money they want at our savings banks,
provided, of course, that they offer suit
able security for the loans that the
banks would be glad to loan their funds
at home, in preference to sending them
elsewhere and that the reason they do
not do so to greater extent, is simply be
cause they cannot find good Vermont
mortgages, or Vermont borrowers able
and willing to take and use the money.
assertion that there is any discrimination
against the Vermont farmers or any
class of home borrowers, in favor of
Western borrowers.
When Mr.. Ward goes further and ar
cues against any Legislative control of the
savings banks-for the latter part of his
communication means as much as that, if
it means nightingale simply weakens
his position. The theory of the money
lenders of institutions as well as indi-
viduals, is, as he states it, that the regula-
ton of all matters of this sort, can be and
should he left to the operation of the law
of supply and demand: and that legisla
tive restrictions are needless and useless.
But that is not the theory of the mass of
the people of Vermont, or of New Eng
land.
We have no space to argue the question
if argument is needed, but we have no
doubt whatever, that it j. right and eX-
pedlent for the public welfare, that the
State should exercise Il close supervision
of the savings banks. Slack as such SUI
pervision Las been, and often as the laws
have been disregarded and evaded, we be
lieve that the legal limit of the rate of in
terest, on the whole and in the long run
tends to protect the people from eNtortion.
ate rates and that the various restrictions
aAd requirements rs TO the character of
the loans which the savings banks may
make, ar in the main wholesOme-and
for the pubic advantage. And they are
not without incidental benefit tothe banks
for they tend to strengthen confidence in
the banks, which is the foundation stone
of their prosperity.
We believe that the Burlington savings
banks are well and safely managed and
worthy the confidence reposed in them.
Their managers may sometimes make
mistakeS-we think that we have known
Mr.. Ward to decline to make loans to
home concerns Offering perfectly good
paper, when the bank was full of money
but to err is human. AS whole our saw
ngs banks desire to accommodate home
borrowers and to look out for home inter
ests. And If they cannot loan their money
at home they cannot be complained of for
sending it elsewhere, provided they do Sc
with sufficient care. Beyond question too
little care Is exercised, we do not say by
the banks, for we have no inside knowl-
edge of their management in this respect,
but by many people and institutions, in
regard to their Western investments.
Some day the bottom is going to drop ont
of many of them. And the thing we urge
upon all, banks and people is to keep their
money, as far as possible at hOme-to use
it in promoting home manufactures, and
enterprises, which with the return they
bring in money, bring larger incidental
returns i'll the increase OF the general
thrift, increase of population and of the
values of property, and promotion of the
common prosperity of our community and
commonwealth.