Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1890-06-13
PAGE AS A FINANCIER.
Inc Rutland Herald's Chain of A
tonishing Errors.

voted column of its valuable space to
discussion of Mr.. Page as fioancier.
The article was tissue of mistakes from
beginning to end. Passing over the false
assumption that the watchmau article
referred to by the Herald was inspired
by Mr. Page, we come to the structures
upon him as a financier.
The present savings bank law in all
Its essential features was the work of
the legislature of 1884. The banking
laws were at that time recodified and
trust companies were placed in most re.
spects under the same restrictions as
savings banks, This feature OF the law
seems to have been especially distasteful
to the Herald. 1t was, nevertheless,
incumbent upon Mr.. Page, when he be-
came Inspector Of Finance in the Decem-
Der following the passage of the statute,
to see that the law as he found it was
enforced. The law was passed during
the inspectorship Of Mr.. Pages predeces.
sor, Hon. Charles Dewey, of Montpelier.
When, therefore the Herald says that
''the financial situation that with such a -four
ish Mr.. Page is heraldcd as ldeploring and
the alleged unsound policy OF the Savings
banks to which lie referred was caused by
the legislative policy adopted by bis suggcs.
~ ady Ina
nauce,"
1t betrays its ignorance of financial leg
islation in the State, crediting to Mr.
Page an act which was already in force
when he assumed the inspectorship.
With this statement by way OF intro.
duction the further comments of the
Herald become ridiculous. 1t says:
"An inspection Of Trust companies Is emf
nently proper; but, as they are different
from Savings banks and organized for an
other purpose, to place them under the same
general law served only to display Mr.. Pages
ignorance of banking matters. His recon-
mendaton was opposed almost universally
by the most experienced fnanciers and bank
ers In the state; but, in spite OF their pro-
tests, the scheme Of the al!.wise Inspector Of
Finance was adopted by the Legis 'ature."
Wrong, Of course. The Inv was pass
ed before Mr.. Page had anything to do
with the inspcctorship.
"Mr. Pages law In itself at once drove mil
lions Of dollars out ofthe State by compelling
these companies TO change their investments
largely from sound and readil convertible
securities to Western loans; and the large
amount of deposits paid Off by them found
their way out of the State also by private In
vestment."
Wrong again, for the reason above
stated.
'Iu addition to forcing these companies
either out OF business or into large invest
ments in Western loans, the omnscient In
spcctor of Finance secured a still farther
change in the Savings Bank law, by which
/ he drew down the bars and encouraged all
these institutionsto make larger investments
in Western loans, at the same time decreas-
ing the safety of such investments"
Sill another absurdity, in which the
Hcrald's ignorance OF the financial legis-
lation of the state allows it tu be en-
tangled, Mr.. Page had nothing to do
with the law. The Herald continues:
"Up to the dawn OF Mr.. Pages ideas Of
finance, the law restricted Western loans to
three-fourths Of the amount permitted to be
invested In mortgages Of real estate; but Mr.
Pages law increased the limit from three
fourths to fivc sixths."
Right here the Herald and Mr.. Page
seem to be in accord. The Herald evil
IDENTIFY disapproves OF the policy of rails
ing the limit on western mortgages. So
did Mr.. Page. The law was passed,
under the administration of Hon.
Charles Dewey, Mr.. Pages predecessor,
whether by his recommendation or not
we do not know. II certainly was not
upon the recommendation OF Mr. Page.
Let us see what Mr.. Pages position
was, as shown by his official reports. To
the legislature OF 1885, the first which
convened after Mr.. Pages appoint
ment, he addressed the following
language upon the subject Of western
mortgages;
"The amounts secured by mortgage OF
real estate elsewhere which consist largely
of Western farm mortgages Is increasing sc
rapidly that deem It my duty to call especi
al attention thereto. From less than foul
millions in 1883 IL has grown to nearly five
and one half millions In 1886. Under thu
the present law 5S 1-3 per cent. Of oil the as
sets Of our savings banks may be invested ir
these Western mortgages. 1 am fully con
vinccd that the limit should be reduced Il
40 per cent, believing that such limit !
only In accordance with the dictates Of safet!
and conservatism. That they have proved
desirable investment In the past is not ques
toned, but that there are indications tina
the business Is being overdone in this line o
securities and that the results may be disas
trous, very few cautious financiers profess
to doubt"
Whether the recommendation wa
sound or unsouni lie, Of course, matte
of opinion. Inasmuch as Mr. Pag'
made the recommendation, the Herald
sees In II naught but foolishness, and II
it's peculiarly humorous way says:
"IIIs invectIves were directed broadl!
aoaipst .western loans without reservation