Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1886-01-15
THE VERMONT SAVINGS BANKS.
Shall They Invest More of their Money
at Home?

at Home?
Attention has been called in our col
umns to the unwise extent to which I'M
employed capital is rushed from Vermont
to the West for investment. We have
little hope that the process will be stop
ped, on the part of individuals, except by
crash such as mas been experienced with
in the memory of some of our readers, |
such as is almost certain to occur again and |
before long-under which the bottom drops !
out of theseWestern loans, and the inves
tors learn to their sorrow. that sound |
security is worth more than a temporary
high rate of interest. Now and then we
find a capitalist wise enough to see that
the largest and best return for his money
can be obtained by investing it at home
in useful and well-planned business and
manufacturing enterprises, which build
up our home communities, enhance the
value of all property, and benefit alike
the investor and the general public
We have some such in Burlington
and may their tribe increase but there
is no over-abundance of such long headed
investors in most of our Vermont towns.
! As arule the money of the man who gets
few hundred or a few thousand dollars
ahead, burns in his pockets till he can
| ship it off to the far West, and get in re-
turn for it some very good looking docu.
ments, of the value of which, and of the
mortgages they represent, he really knows
nothing. There is little hope of stopping
this at present, so far as individuals are
concerned but if the people say so the pro
cess can be stopped on the part of the
savings banks, which are under the con-
troll of the legislature. Our attention is
called to this matter by an article in the
Brattleboro RCtOrmcr, which we copy be-
low and commend to the attention of our
farming readers. There is altogether too
much truth in these statements, and the
subject is certainly one which demands
very careful consideration
vERMoNT's GREAT NEED.
The farmers and business men of this
State ought not to let another session of
| the legislature pass without the enact
ment of a law vital to our future, to keep
the money of our savings banks invested
at home. The law now requires only 25
per cent of their deposits to be loaned on
mortgage securities within the State,
Massachusetts requires 20 per cent to be
so invested. The result is that money
goes begging for borrowers at q per cent
in Massachusetts while in portions and
probably ia the greater part of Vermont
it is simply impossible to borrow it, how
ever good the security
iact especi,nl stndv have nnv idea what a
yyr;deSnrread etfect for owl tbe rush Of our
s.vinfs hanks far western Investment has
1t is responsible more than all other
causes together for the depreciation of
values, the absolute prOstratiOn in the
market, of our farm property. What are
The facts nc thew may he seen in almost
a,.orv tom in tEa Stotes M m,ttar ho,v
oooi n fnrn Won have how fertile how
I'll ;nnrnve3 how neor 70 Good ,nnrl,at.
| ho,, nrdtHt,l,la how 6esiro hia ,s a homo
ar ON Il innestmnpt If Won want some avtra
canitol 70 onarnte vo,ir farm to nIvantnfa
,,a, I,nDot I,at II If Won want 70 Eli
yyour f.rm, v6n cnn fnd no nnrch.ser ~.
cant tho faW Who have the Idle money on
hand tn nav for if because if any one
,,',,t y, 70 r ma, ~ n,rt dawn and niara ia
aat On ~ pc" 9rt e p he c.nmnt ret the
noonsv
~ cr,ya for uecterp Investments with
all tbair risks of title and their snecula.
t; a., nharnntar boa oai1nd onr mpnavad
men and 0ur private capitalists. They
INV, - ril,bt to 10 with their own rs they
- h-,,a,,or fooIish az nnnntriotic IN.
~ 500 -. n,,,not intarfara h,t an, s,,
in,, i,sIitutinns chartered Inv the State
nr1tected and insnected mt the eynense oi
,ho St'ta and mrrtiallv eyemntnd from
! " ha Strata Ina and OnDbt I,
Ha r.,rniot.d Nv She STATE There il no, h.
~ Ear cont ,ibutes to tho nrnsneritv 81 +,
an1n,n,nnitv 50 vitalizes Tho entrants Of
tu.,ha and in,Gustrv ns these inst;tntion.
,,,iinb thar mn tha snrnlns SAVINGS and
utilize them nS n capitat of ali commun.
~. lntarnrisa tb.t needs them and cnn
soSfal', b,Wa them ire state does rivht
-, a,. md nrntect md o,n.rd institn,
t ~ which ava "a c,nable nt snch VAST GOOD
i Rur when their onlv use is to drain off
,uI "H, ne i. sn larGelv the fact IN var
uup,t" tbay hecoma - cnrse instend Of a
n ,,io,,v Wy Tow the indiyidmal monav'
! i n,ud9 who have mortnges on the farms
i,Ii,,r.d NV tba fhmIo,s and iIlaoitimnts
nnrannta US ~" damnndad in the Wast re
iItoI,ather 5amamdin, their money mndar
ahr,.'tS of fnrni"snrn The farmer GOES tn
VA saYings hank and finds that tbev also
.' r, ,,o,,rinS, thair money into Tho West
az Po 't - HSo,inr IL thare for hin, No n,"t
anu a h nlov Good his senurtv Havap,t we
.ean MN thoi, sands Of inst snch cases in Yer.