The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-01-21


The Reekland Opinion, in an article on
the savings bank bill, has this to say in
regard to the feature of it which is de-
signed to stimulate investments in
Maine:
The pending bill makes a discrimination in
the rate in favor of Milne investment. The
proposed law is a somewhat complex one. and
we are in doubt about the effect of some OF its
provisions. But the leading feature is the I'M
position. Of . tax Of one per cent. on all invest
ments of savings banks made outside OF Maine,
while investments in the State are to be taxed
o o S Hae Per cent er rss d tbe
profitable investments which may be
found outside the State ! and my invest st
water companies, electric railways, and other
enterprises located in Maine. which the men be-
hind this bill are berson lily Interested ia boom
1t appeals to state pride and patriotism. and
there is danger that it will get more support
than it ought among the PEOPLE and III. Leglsla-
ments of the funds of these banks, and should
not be allowed to become law. These funds
should be invested in the best way possible,
safety being the first cons deration and profit
the next. And the state should not undertake
to force them in one direction or another BY a
discriminating tax. It's. moreover, doubtful If
The constitution of the United States forbids
any state to pass any law i'll restriction OF COM
merce between the states. It Is at least cues
ton whether disappointing tax on invest
ments would not be held to be such restrlc-
ton. In our Judgment. the right Thing to do
would be to make q uniform tax OF one per
cen on the deposits, wherever and however
invested.
While we disagree with the Opinion as
to the advisability of increasing the lax
on savings bank, being of the opini IN
that they now bear their full share of
the burden of taxation and being of the
opinion also that an increase of the rate
would not increase the aggregate amount
received by the stale inasmueh as the
lowering of the rate of interest
which it would cause would lead
to withdrawal of a great deal of
money that would disappear so far
as taxation is concerned, we fully
and cordially endorse all it says of the
attempt to stimulate investments inside
of Maine by such discrimination as is
proposed. The danger is precisely the
one pointed out by the Opinion that APP
peals to State pride and patriotism will
cloud the judgment of the legislators,
and later on if the bill is passed the
Judgment of the directors of the savings
banks. The directors of our savings
banks are men identified with the CON-
mercial and industrial enterprises of
Maine. They are not foreigners who
have no interest in the State. AS be-
tween two investments equally SAFE, one
out of Maine and the other in Maine
the great majority of them-there may
be here and there an exception-would
choose the former. To hold out induce
ments for them to 60 further than that
is to tempt them to subordinate safety to
state pride, something which they ought
not to do; ana something which every
depositor would protest against their do
ing, if the question were directly present.
ed to him. Everybody is anxious to have
the resources of the State developed to
their fullest extent, but in the progress
of this development, unless the teachings
of experience are worthless, a good
many risks must be taken, and a good
many losses met with. These risks
should be taken chiefly by men of large
means who can afford toAbear the losses
that may follow, and not by small de-
positors in savings banks, to whom loss
oftentimes means great deal of self
sacrifice and perhaps actual suffering.