Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1886-10-08
CURRENT AFFAIRS.
Our Savings Banks and Trust ComPa
niles.

mics.
Tho annual report OF Carroll s. Page, State
Inspector OF Finances, on the condition Of our
Vermont trust companies and savings banks,
states that two institutions-a savings bank
and trust company at Barre, and a savings
bank at Lyndonville have organized and begun
business during the past biennial term. The
st. Adams trust company is still in the hands
Of the receiver. The West Fairlee savings
bank has been practically wound up, and the
Farmers and Mechanics savings bank and
trust company Of Burlington and the State
trust company of Rutland are proceeding
with a view TO winding up their business.
The whole number OF depositors In the State
June 3Oth last was AZ, 453, an increase in the
two years Of 3,6l6. The total amount Of de-
posits was Sl4, 1858, 9G3.47, an increase Of
1929, GIL. "a In two years $1l, 1913, 95G. 80 be-
longed to depositors living In the state,
an increase of $500, 5941 10 in the past year,
and of $672, 1851 as compared with 1884 )
81, 35l, 0OG.7S belonged to nonresident de-
positors, decrease Of $44, s82.32 in the past
year, and OF $4O,2ll.97 as compared with
1884. The average amount to the credit of
each depositor was $28S.23, a decrease Of
$4.G3 as compared with 1885, aud Of Sll.-
~ as compared with 1884. Three savings
banks have paid per cent dividends, one
A. eight -, and Ave per cent. The total
amount of the guaranty or surplus fund has
been increased by little more than $50, 900
during the two years, and amounted on June
30 to $500, 1872 IL.
The Inspector believes that many of the
banks are paying too large dividends and
would have dividends limited by law to per
cent per annum until net reserve OF at least
six per cent. has been accumulated. Safety,
he very properly says, must always be the
first and strongest consideration in savings
bank management.
"The chief reason urged by trustees who advocate
high dividends Ia that they believe II to be their duty
to divide to depositors the actual earnings Of each
sem-anuual period, but IN my judgment they are
quite as liable to wrong future depositors, who may
have to suffer the losses sustained when these loans
mature to wrong present depositors by pro-
vding now for losses growing out Of loans which are
at present abnormally prohtAble aud Of which pres
ent depositors reaping all the benefits without in
curing any Of the risks which experience teaches
the almost universal accompaniment Of excessive rates
OF interest"
Mr.. Page drprecates the extent to which
the banks are tending to invest their deposits
in western farm mortgages. From less than
four millions in amount in 1888 these invest
ments have now grown to almost Ave aud
one-half millions.
"Under the present Law IS l-9 per cent. Of all the
assets Of savings banks may be Invested in these
western mortgages. l am fully convinced that the
limit should be reduced TO 90 per cent, believing that
such limit IL only IN accordance with the dictates OF
safety aud conservatism. That they have proved de-
airable inVeatmeu in the QueHtiOued but
that there are indications that the business 10 being
overdone In this line Of securities aud that the results
may be disastrous, very few cautious nnancters pro-
Tess to DOUBT"
It is we'll for the Inspector TO caution the
bank managers against rash investments in
this or any other direction, but it is always to
be remembered that a good western farm loan
is better than poor loan at home or else
where, and that the security and desirability
of the western farm mortgages depends very
largely on the ability, character and expert
ence Of the agents who place them. In the
hands Of good men they are undoubtedly
among the best securities Of the present day,
and are az safe, at least, as the western county
or municipal bonds OF which Mr.. Page speaks
favorably.
The tables which the report contains show
that our Vermont savings bank Of Brsttle
boro still continues to lead the savings banks
OF the state in the amount of deposits, its to-
tai deposits on June 80 being $2,O5l, 5O4.34,
against 81 $3.50, 2S5.27 for the Rutland savings
bank and 81, 4s6, O53. SO for the Burlington
savings bank, which come next in amount Of
deposits The Brattleboro savings bank has
the handsome sum of 1929, 539 Gu in depos
its. The amounts in the other WindhAm
county savings banks are-Jamaica, $l72,-
l7l.41; Wilmington. SOS, 49s. So; Windham
County, at Newfane. $447, 992.62. The two
Brattleboro banks have paid per cent. div
idends, the Jamaica bank a and the banks at
Newfane and Wilmington per cent. each.
As only one other strictly savings instilu-
ton in the state than those here named pays
10 high a rate of dividend as per cent, it
would seem that the Inspectors remarks
about dangerously high rates of interest are
aimed especially 1T our Windham county
banks but We should be surprised il n thor.
ouRh investigation did not develop the fact
that tho investments OF our local banks have
bt Gu made 70 carefully and that their western
loans have been placed through such resPon-
sibe agents, that their securities, whatever
rate of interest they pay, are as absolutely Sc
cure as those Of any bank in the state.