Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-09-30

habits OF industry and economy by re-
ceiving and investing. ETC.. such sums
of money as may be saved from the
earnings of tradesmen. mechanics. Ia
bOrers. minors. servants and Others,
thereby affording the two-fold advan-
tage OF security and interest, and the
Legislature considered it their duty
to cherish all laudable attempts 10
ameliorate the conditions Of the poor
and laboring classes Of the country.
therefore be It enacted, etc."
For many years they were every
where granted special privileges like
exemption from taxation. the same ~
is granted to many other charitable
associations. Their treatment In this
respect in the different states at the
present time, however. differs widely.
give them all OF these privileges. while
others place upon them heavy burdens
in the way Of taxation and restrictions
in the transaction of business.
In New York, where the deposits "
savings banks are more than twice
the assessed value Of the property in
the State of Maine. these institutions
pay no tax. New York deposits $71S..-
600. 900; valuation Of Maine 1895. 900. 900.
In 1868 a commission was appointed by
the Legislature of that state for the
purpose Of investigating and reporting
concerning savings banks. The follow
ing extract from the report of that
commission states precisely the con-
illusions reached in that Investigation
regarding the subject Of taxation OF
this class Of property. 1t reads as fol-
lows:
Confidently believing that the in
centives to industry. economy and
thrift afforded by savings banks, are
OF more value to the state than it
would derive from the exercise Of its
power to tax their deposits. we look
with favor upon legislation in the di-
rection Of exemption from this burden.
II 1t could be demonstrated that the
effect Of taxing these deposits would
be to discourage their accumulation,
the state would be greatly the loser
by the adoption of such a policy, for
not only would these accommodations be
withdrawn from the reach Of the tax
gatherer where by taxation these
would be defeated. but the Industrial
force stimulated into action by the in
centive Of saving thus destroyed would
be lost. Until the state is prepared to
revise it's whole system of taxation in
such manner as TO equalize these bur-
dens by imposing them alike upon all
property that should help to bear them,
sound policy dictates that the inter-
ests of our savings banks and of the
state itself would be best promoted by
leaving them free from any interfer-
ence in this direction"
I do not wish it to be understood
that agree with the commission from
New York that this class Of property
should be entirely free from taxation.
the sources. however, from
which it is derived, it should bear
no more than it's just portion of these
burdens. Throwing aside questions Of
right or justice, and considering only
the selfish interest of the state as a
body polite, Of there can be such
thing as state having a selfish in
terest as against any class of its cit
izens). there is a limit beyond which
the state will suffer if it continues to
impose burdensome tax. History
will repeat itself in this particular.
The property that is over taxed will
hide and in that way escape taxation
altogether. There must be somewhere
a limit to the reduction of rates of div
idends beyond which depositors win
not be satisfied and will commence to
withdraw rather than increase their
deposits. The result of this might be
to the state, not only in the
way Of general business enterprises
but in the amount Of revenues 1t would
receive. Between the years 1875 and
1879. by reason of distrust and dissat-
isfaction growing out of the invest
ments Of the savings banks. and
the reductions in dividends from an
average of about 6 per cent. to AZ per
cent. the deposits were reduced from
$32 OO0. 900 to $40. 000, 900. A correspond
ing reduction of the deposits at the
present would diminish the State reve-
nues about $4,000, which would be a
total loss to the State, as no material
portion of these deposits would after
forwards be found by the assessors.
During the first 25 years OF their ex-
istence the growth OF the savings
tanks of .Ile world were slow. As a
matter of fact. their enormous accumu-
lations at The present time is about
$1,000, 900. 900. and the number OF de-
Pastors about 45.796.O00. this being
an average of about $145 for each de-
poSitor. OF This amoun. about Ccle-
third is in the United States. ana that
almost wholly in the New England and |
Middle states.
In 1920 the total depositors of the
savings banks Of the United States was
$1.138576. This is less than the amount
OF derasits now In each Of Is of the 81
savings banks in our own State.
In 1'4S when your bank was organ
lied. the total deposits in this country
had increased to about $4,000, 900. In
the 80 years OF your existence tha,.
amount has been increased about so
fOld-to 1899 ,0OO, 900. and the number
of depositors who patronize to 5,2O1 200.
In 1898 these deposits aancln-ed to $1.S7
per capita CT the population of the
United States, and notwithstanding
the enormous increase in population "
is now increased to $26.56 per capita.
In considering The utility of savings
banks we might consider,
First-That they teach our people to
be economical and saving.
Seccnd-That they accumulate the
money Of The individual and make 1t
the capital Of the community.
1t Is not necessary for me here to
speak Of the great value these inS.itu-