Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1899-02-04
About Savings Banks.

|
The Lamoille County Savings Bank and
Trust Co. of Hyde Park completed the
first decade of its business existence on
Saturday last 1t is but simple Justice to
this institution to say that it has erjoye
ten years of unexampled prosperity, and
today makes the following ten claims, sew
eral of which we think cannot be paralleled
in the history of savings banks anywhere
Here they ara: III
1st. Not dollar lost by bad invest
ments in the ten years.
Cd. Not a dollar of doubtful assets
owned today SO far as is known.
| Sd. Never moments delay asked on
any application for withdrawal.
4th. Never loan refused in its legiti-
mate field for loaning, if good and within
the law.
9Th. Never dollar invested outside of
Vermont.
side of Lsmoille and adjacent counties.
9TH. 1t has never paid to depositors less
than four per cent compounded semi-an-
nually and is pay, ing that today.
9Th. Never dollar loaned at more
| than SIX per cent.
9th. An accumulated surplus exceed
ing 73 per cent of its capital stock.
10th. A continuous growth from the
start, each six months showing an increase
of deposits and assets over the previous six
months.
There is bit of personal history con-
nected with this bank which, in view OF the
above results, forms an entertaining chap
ter to those connected with savings banks,
or, indeed, to any one interested in the
growth and prosperity of Vermont.
In 1884 Elk Gov. Page was appointed
inspector of finance, a position which he
held until December 1, 1888. During this
period he had official charge of the savings
banks of Vermont. At that time savings
| bank managers were infatuated with west
ern mortgages, and there was then no limit
| by law to the amount of this class OF invest
mpnts which savings bank could carry
Gov. Pag seeing, as he believed, col
lapse of the western mortgage boom, asked
the legislature to limit the amount which
could be invested in western mortgages
to 40 per cent of the banks assets. His re-
quest was stoutly opposed by the managers
Of nearly al our Vermont savings banks
The result was that a compr omise was
finally reached whereby in 1886 statute
was enacted limiting the amount which
could be invested in western mortgages to
| SO per cent OF the assets OF the bank.
New Hampshire was in precisely the
same situation, but in that state an attempt
| to establish limit as in Vermont was un-
successful 1t is hardly necessary to state
results, because they are gene ally known
With single exception, we believe, every
savings bank in western New Hampshire
thy were all, save one, heavily loaded
with western mortgsges-talled; while in
Vermont there was not single savings
bank failure from 1884 10 1898 They all
passed through the crucial test Of monetary
panics un'cathed.
The reta ming of Vermont money in
Vermont to foster and Develop Vermont
industries was regarded as a hobby OF Gov.
Pages and was declared by many bank
managers to be absolutely impracticable,
but the governor told them that he would
show them by an actual, tangible illustra-
ZION that it could be done, and within go
days from the time he surrendered bis posi-
ton as inspector of finance he started at
HYDE Park the Lamoille County Savir gs
Bank and Trust Co. From its organiza-
ton until to-day, period of ten years,
this bank has never loaned single dollar
outside of the state, ard if the success of
the institution is correctly set forth In the
ten claims appearing at the head OF this
artic e-and there is not particle of doubt
that they are-we think the governor ha'
ssbstantiated his theory by incontrovertible
facts.
This bark has advertised from the begin
ming that every Lsmoille county industry
might depend upon 1t for financial assist
anSe at any and all times, and even during
those terrible panics OF '93 to 90. which SO
severely tested the foundation of all saw
ings banks, it never hauled down its colors.
IL never for one moment failed to respond
to calls for financial aid from any borrower
living within its leg innate sphere. OF loan
ing. a claim which we believe cannot be
truthful ly made for any other bank IN Yer
mont.
It has demonstrated the fact that If home
loans are sought for and encouraged by
savings bank managers, new industries
will from time to time spring up and de-
yelop to absorb the losning capacity OF
its local savings bank. The fact that
the Lsmoille County Savings Bank and
Trust Co. does not own az asset outside of
Lamoille and adjacent counties is the best
possible standardization of this position. To
ella m otherwise Is OF course to assert that
LamoilIe County is an exceptional field.
and we know OF nothing to warrant such
assertion. Indeed, il is a matter OF record
that in 1886 the only bank In Lsmoile
County was compel ed to reduce its capital
=