News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1890-06-05

by the most experienced fnanciers and bank
ers in the state; but in spite of their protests,
the scheme of the all-wise Inspector of Fl
nance was adopted by the legislature
Wrong, of course. The law was
passed before Mr.. Page had anything
to do with the inspectorship.
MIR. Pages law in itself at once drove mill
ions of dollars out of the State by compelling
these companies to change their investments
largely from sound and readily-convertable
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
In addition to forcing these companies
either out of business or into large invest
ments in Western loans, the omniscient In
spector of Finance secured a still farther
change in the Savings bank law, by which he
drew down the bars and encouraged all these
institutions to make larger investments in
Western loans, at the same time decreasing
the safety of such investments.
Still another absurdity, in which
the Heralfs ignorance of the finan-
cial legislation of the State allows it
to be entangled. Mr.. Page had moth
ing to do with the law. The Herald
continues:
Up to the dawn of Mr. Pages ideas of f.
nance, the law restricted Western loans to
threefourths of the amount permitted to be
invested in mortgages of real estate; but Mr.
Pages law increased the limit from three
fourths to five-sixths"
Right here the Herald and Mr.. Page
seem to be in accord. The Herald
evidently disapproves of the policy of
raising the limit on western mort
cages. So did Mr.. Page. The law
was passed, under the admins ira ion
of the Hon. Charles Dewey, Mr.. Page S
predecessor, whether by his recon-
mendation or not we do not know.
1t certainly was not upon the recon-
mendatiOn of Mr.. Page.
Let us see what Mr.. Pages position
was, as shown by his official reports
To the Legislature of 1886, the first
which convened after Mr.. Pages ap-
pointment, he addressed the follow
ing languageupon the subject of west
ern mortgages:
The amounts secured by mortgage of
real estate elsew here which consist largely
of Western farm mortgages, is increasing so
rapidly that deem it my duty to call especi-
al attention thereto. From less than four
millions in 1888 it has grown to nearly five
and one-half millions in 1856. Under the
present law 5S15 per cent of all the assets of
our savings banks may be invested in these
Western mortgages. | am fully convinced
that the limit should be reduced to 40 per
cent, believing that such a limit is only in ac-
cordance with the dictates of safety and con-
servatism. That they have proved a desira-
bic investment in the past is not questioned,
but that there are indications that the bust
ness is being overdone in this line of securi.
ties and that the results may be disastrous,
very few cautious tnanciers profess to
doubt"
Whether the recommendation was
sound or unsound is, of course, a
matter of opinion. Inasmuch as Mr..
Page made the recommendation, the
Herald sees in it naught but foolish
ness, and in its peculiarly humorous
way says:
''His invectives were directed broadly against
| Western loans, without reservation; but
his remarkable knowledge of Western securi-
ties, acquired wholly east of the New York
line. had not yet reached a point where he
could recognize that there are Western loans
and Western loans-some of them, properly
taken as good as other mortgage securities
and Others unsafe. Apparently, to him the
fact that they were Western were sufficient
to condemn them, regardless of any Wedge
as to their value"
Here again the Herald is in error.
To show Mr.. Pages real position
upon this point we quote from his rec
concentrations to the legislature in
1888, although it has appeared re-
Gently in our columns. Whether this
is good finance or not, the people of
Vermont will have to decide. The
subject is one pregnant with interest
at this time in view of recent devel-
opments in the matter of western
mortgages.
The large rates of interest which western
borrowers are able to offer are too attractive
for the ordinary investor to withstand, and
funds received for the fine line of government
and municipal bonds which have been matur-
ing during the past few years, have been rein
vested, in by far too many instances in west
ern mortgages. To show the tendency in this
direction your attention is respectfully called
to the following facts, shown by the savings
bank reports for the past ten years The
amounts of western mortgages held by the
savings banks of Vermont on the both dav
of June in the years 1879 to 1888 inclusive
were as follows.