The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1890-05-28
Concerning His Ability.

Concerning His Ability.
The lone fisherman of the state
canvass, the Rutland Herald, finds it
necessary to attack the ability of Car
roll S. Page, the leading candidate for
governor, in order to shore up the can
didacy of the feeble old man it set up
last week. Mr.. Pages record, we think,
will fully meet this attack. He stands
at the head, in this country, in his line
of business. This is a fair indication
of the possession of one kind-and a
very essential kind-of ability of the
highest order. An inspection of his
office and premises, an examination of
his system of conducting his business,
will convince the most skeptical that
Mr.. Page is business man of the very
first rank. He is also as expert and
well informed in finance as in business
management or commercial affairs.
The history and standing of the finan-
cial institutions Of Hyde Park afford
ample evidence of this fact. None in
the state are more judiciously managed
or are more prosperous.
But it was as inspector of finance that
Mr.. Page exhibited, in public way,
not only his ability and conservatism as
a financer, but his official fearlessness
and independence also-very valuable,
and not too common, qualities in pub
lie officer. In his report covering the
last term of his tenure of the office he
plainly expressed his well-settled con-
viction that trustees of savings institu-
tons, in their anxiety to pay their
depositors liberal dividends. are in too
many instances allowing the quality of
their assets to fall below the high
standard which should be maintained"
He calleds attention to the increasing
tendency to invest in western mort
cages, by reason of their high rate of
interest, rather than in the safer lines
of securities bearing lower rates of in
terest. He enforced his admonition by
giving the figures of western mort
cages held by the savings banks in each
year for the ten years following 1879.
The reports showed that the invest
ments of the banks in this class of secu-
rites had increased from 81 ,276, 399 in
1879 to Sc 1858 ,797 in 1888. The in
spector believed the banks were getting
too many eggs in one basket" and
with commendable candor said so. He
pointed cut the importance of conf
dence in the savings banks. Disaster
to any one of these inflicts an injury on
all and upon the state. AT consider
able length and with great force he set
forth the danger accruing from high
rates of interest obtained at the risk of
safety to the principal. His remarks
on this point may be found in full on
the seventh and eighth pages of his re-
port for the year 1888. He concluded
by recommending "that the law allow
ing investments on western mortgages
should be so amended as to permit only
forty per cent of the entire assets of
any savings bank or trust company to
be invested therein" and that divi-
dends be limited to four and one-haf
per cent per annum until net reserve
of ten per cent had been accumulated.
The wisdom of the recommendation
was acknowledged by the enactment of
a law in full conformity Herewith as
to dividends, but the limit of invest
ment in western mortgage was reduced
from fifty-eight and one-third per cent
to fifty per cent, instead of to forty per
cent. There is, however, to-day, we
believe, but little doubt of the sound
ness of the inspectors recommends
tons, and the fact is recognized that had
his suggestions been fully complied
with it would have been better for
banks and people. Finally, the inspector
had the abiity-and the hardihood-
to compel the imperious owner of the
Herald, who is also the proprietor of a
savings bank and sort of law unto
himself, to obey the laws of Vermont
respecting savings bank investments.
If his ability is questioned, Mr.. Pages
friends will respond to any challenge.
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