Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1898-10-13
REPORT OF INSPECTOR OF FINANCE
Re endations That Savings Bank.
Fay Depositors But LIZ Per Cent An
nunlly.

! Fay Depositors But , LIZ Per Cent An
nunlly.
To the General Assembly OF the State of
/ Vermont:
/ In accordance with law, / herewith sub
nit my annual report covering the sworn
statement OF the officers of the Savings
banks, savings institutions and trust conf
panies, investment companies and build
ing and loan associations organized UNI
der the laws of this State, and the invest
ment companies and building and loan
associations organized under the laws of
Other States, that are licensed to do bust
ness in this State, showing the condition
Of such institutions on the 3oth day of
June, 1898.
SAVINGS BANKS AND TRt ST COM
PANlES-DEPOSlTS AND DEPOSIT
TORS.
The aggregate deposits in the savings
banks and trust companies. June 90 last
were S3iG1l,72l7I which was an increase
for the Yctr of $l,41l, O942S
S2S,Jil. Si3.56 belongs to 95,51l resident de-
postors and s5.429, SSH to 1890 non-resi-
dent depositors showing an increase Tor
the year of 1880 in number of resident de-
positors and sl,2@o, S37.l2 in amount of their
deposits. and an increase OF III in number
of nonresident dcpositors and an increase
OF $50, ZIG in amount of their deposits.
IN average amount to each dcpostor is
sSlS9e, an increase for the year of $685..
/ The average amount to resident deposit
tors is s299.69, AN increase of 1855 and
$4,000 to nonresident dcpositors. de-
crease OF Si2.7 for the year and s2i.5S for
the past two years.
There arc 1859 dcpostors who each have
over $500 in a bank and tho total amount
of their deposits is S5,l0d, 705.i1. an average
of Sl9S7.S2 to each dcpositor. which is an
Increase OF 10 in number and decrease
of Sj.G in average amount.
INVESTMENTS.
Tho amount invested in mortgages of
real estate in this State is 81, 0Sf,GII;0 an
increase In the year of $685., 6c9.9O.
Real estate mortgages elsewhere, $40
SS7StS.6l, an increase OF S3i.5Sl.3l.
Personal security s2,6'6'Il.6l, an in
crease of SlSS0,SS.
Loans with bank stock as collateral Sc
curity S2i9. CISCO, an increase of Si,9l.?j.
Loans on other collateral security, ST.
l@O.5i1.42, an increase of Sl0,9i3,S.
Loans to towns. villages, etc, $500 I2i. a.,
an increase of Sn51L2i.
United States bonds owned sl,SilSjo2i,
an increase of sAs,2GS.7i.
State, cl;y, town, village and other
bonds owned, sS29i, 009lS q decrease OF
sl32.31l.70.
Real estate owned for banking purposes.
$3.50 $500, Il decrease Of s2337i.SG.
'vtl estate acquired by foreclosure.
s699.l50,el, an increase of ,45.S3535
;'nk stock owned st3G,i52., an increase
of s3s7250
5 Ms cllareous assets, i2I2i3,S9, an in
crease OF sjG,G69.2o.
, deposits subject to check in national
md other banks, sl.S36, 5s3.5s, an increase
of s3lS,l529d.
) ~ On hand, siSs,77SS6, an increase OF
; l5l.iJ7,S22.
l SURPLUS. TANES AND EXPENSES
/ The special reserve fund required by law
: to be set aside by the savings banks and
/ hCid to meet losses and depreciation OF
securities together with the reserve of the
trust companies, now amounts to sl.127.-
Sl2,S5. to which If we add all other sur
I plus ana Accommodations of the savings
banks and trust companies, 1t makes n
total OF N,7G4SiS.2S, a decrease for the
year of SGJ.56i,20
me Savings banks and Trust companies
have paid taxes 10 tho State during the
: year of S2l2,SlSG7, n decrease from preced-
ing year of Sl,2633l
The expenses of the Savings banks and
i Trust companies for the year. except tax
cs. We're $lGG,Sl677, an increase over the
L preceding year of $l,72I90, said expenses
avcra sing $500 fer every 5000 of deposits
cared for.
= DIVIDENDS.
n The depositors in the Savings banks and
Il
T Interest on their deposits for the year OF
$ Sl,2l5777.l0. twenty-five Savings banks
Il have paid four per cent. 1.-TWO per cent
o scmi-annually, which is the legal limit
!. per annum one Savings bank has paid
!. three and threo-fourths per cent, one
l. Trust company has paid three per cent
= one three and onc-halt per cent one foul
: ami one-half per cent. and the Other
h Trust companies have paid -four per cent
e ON their capital stock three Trust com
n panics have paid no dividends, one has
: paid per cent, eight have paid pei
|, cent, three have paid per cent. and two
$ have paid 10 per cent. per apnum. The
!. total dividends to stockholders were S55.
: $3.50.
: RECOMMENDATIONS.
!, That our banks may be kept in condi
o ton TO purchase and hold a good line OF
8 quick assets of the nature of munitjpa
B. bonds, United States government bonds
e etc, and at the same time accumulate q
o surplus which conservative banking seem.
s to require, l recommend that Saving.
# banks be limited to a dividend rate to de
II pos!tors not exceeding IA per cent. semi
= annually until a surplus of 10 per cent
: of deposits Is secured to meet losses ant
n depreciation; and that Trust companies b,
v limited to a similar rate of interest OF
@ deposits and n dividend rate to stock hold
l. ers of not more than per cent semi
s annually until surplus be accumulated
Y which together with the capital stock ant
s liability which II carries shall equal Il
J. per cent. of deposits.
I. Ii it should seem that this recommenda
k ton follows too closely the limit to 4 pei
d cent. made two years ago. II should b,
y borne In mind that interest rates all ovel
n the country have suffered a radical reduc
:. ton, with the strong proba bility that thi,
IS reduction VIII be permanent. Saving,
Y banks throughout other States arc rapid
ily adapting themselves to this lesser In
terest rate by u reduction of dividends
!. 1.-THE Savings banks OF Maine. New Hamp
shire New Jersey and California averas,