Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1888-10-19
OUR SAVINGS pANKs


The biennial desire b. make obo,...
connection with the savings banks at no
state again appears, not only i'm th. Z, . lur
nor's message and in the report Of Tho IT,
spector of Finance, but in the Lill. LII
proposed in the Legislature for alt.r.,iy
or improvements The old aud mott.
motto 10 "let we'll enough alone" sc.,' a'''
be ignored or forgotten. for not amid.
Governor and the Inspector Of Fn,s,,'
but our public journals from one end ~, NJ
state ~ the other are profuse in their NJ
es Of Vermont savings banks. calling Ill.,.
models for others 10 initiate ctc. etc V
correspondent would not assert tl.,
changes are needed for il is evident ~ a..
man Of ordinary business intelligence L.,
if some alterations were made it Womb +.
better for all concerned this being don
a condition Of stability, aud relief franz
constant change Of our statutes Womb l.a
very desirable. The change which A.
Walbridge suggests in House bill No IN
by which savings banks proper should La
taxed only one half Of one per cent. Will.
savings banks and trust companie, com,
bined should he taxed one per cent Der an
mum, is emlnently proper aud Just for rea.
sons that readily appear to all who under.
stand the difference between the two kind.
of institutions. The suggestion made in tbo
same bill 10 reduce the tax exemption limi,
from $1,000 to $500, seems to be too largo q
reduction II the greatest good 10 the great
est number is kept in view Better bsy.
the tax exemption limit as it now is. or ma,
less than $1,000, il the good Of many far
whom our savings banks are especially de-
signed is to be secured But should cham,
be made let it be clear aud distinct .imrJg
stating that only the amount named can Le
exempt, aud not, as one Of our promipep,
journals suggests, 10 subject b. local tara
ton certain sum above the limit a. NAV
appear, causing a constant system of o.
pionage and in the end satisfying no one
Again is not the suggestion by Mr. Wal
bridge to Oblige our savings banks IN in
vest at least one fourth Of their total a..
sets in mortgages on real estate in the In
tie state Of Vermont both injudicious and
harmful 10 the institutions whose interest.
our legislature should aim to consery.
The writer, having quite an extensive
knowledge Of the matter. believes that the
cases are very rare when our savings bank.
have refused to take Vermont mortgage.
when offered them, provided they were
good security for the amount desired I.
it not far better after obiging one sixth IN
be loaned upon Vermont mortgages. a, the
law now requires, to leave the rest tp the
wisdom and discretion Of the manager, Of
each bank, who certainly have not in the
past made any great mistakes
Still further, has not the Inspector Of ri.
nance made great blunder when he sng
gests that our savings banks be restricted
in their making Of dividends We have
now upon our statute books very wise
law obligating our savings banks h. accu-
mulate and keep ten per cent reserve
fund. This law has already largely if not
entirely been complied with. and TIN,
amount of reserve j. generally considered
as ample 10 guard against losses that NAV
occur which are beyond human foresight
or control but | submit to our respected
inspector, aud others who sometimes seem
10 forget to whom the money in our say
ings banks belongs, that any restriction,
relative IN dividends would be contrary
both to common sense and common law
To whom does the money in our saving,
banks belong Simply and only to the de-
positors, and after setting apart and keep
ing good the reserve fund Of ten per cent.
and paying the operating expenses Of each
bank every dollar earned should be an
nually divided among those 10 whom. aud
n whom alone it belongs, whether it be-
four five or 81 Ier cent Gov