The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1899-01-03


policy on the part Of tie state to establish
Theses institutions and encourage the &C.
oumulation of deposits therein. These
deposits, made up principally as they are
Of the small savings Of those In moderate
circumstances in life, are today paying
more than twice as much In taxes as all
other moneys at interest II u were
possible for these Institutions 70 keep up
the rate OF dividends, and ut the came
time receive deposits without Limitation,
ths income 10 the state therefrom, ut even
"A much lower rate Of taxation than now,
would be materially increased. On the
other hand. II depositors sh ould become
dissatisfied with the rates OF dividends
and commence to withdraw their funds,
the amount of the saw ings bank tax
would be diminished without any CORE
spending increase in the revenues of the
state from other sources. A large portion
OF these funds II withdrawn from savings
banks would not be found by municipal
assessors tor taxation. An example OF
what might again happen Is found In the
history of these intitutions during the
years iS7h-a. During that period, on ac-
count of existing conditions the deposits
were reduced from 49,, 0S3. 3l4.2 % to 80.
97s. l3e. 92, producing corresponding de-
crease in the amount of taxes received by
the state. An examination Of the a.
SCISSORS lists In the various municipalities
of the state for that period, shows no In.
crease In the amount of taxes paid upon
money at interest. This proves con-
clusively that the eleven million dollars
then withdrawn from savings banks was
not afterwards found for taxation. A pro
portionate decrease in deposits at the
present time would diminish the state
revenues about sl40,O00 annually. For
these reasons ana on account OF the COD.
ditions suggested under the titles Of ''in-
vestments' and dividends" we are
far oil 10. hat hx tHt 2.ra
of the state, apart from the interests Of
its people who are depositors In savings
banks, would be better served by some
relief from taxation upon this class OF
property.
Like an excise law, this is not paid
directly by those who ultimately bear the
burden. Many depositors do not realize
that they are the ones who really pay this
tax to the state. 1t cannot be expected,
therefore, that they will complain OF the
rate of taxation. but rather that they will
be dissatisfied with the rates of dividends
paid. They simply protest against the
rates of taxation by ceasing to patronize
the savings banks.
The state as trustee Is morally re-
sponsible to the 16R ia deposltors for the
proper management and safety oil their
funds In our savings banks More than
one half Of these depositors are womea
and minor children. Many OF the de-
and self denial. In many instances these
small savings are all that stand between
the depositors and want. The bank COM
missioner OF New York, in opposing the
taxation of such deposits. pertinently
asks: "While out of the abundance of the
rich so little is taken, shall the state
wrest from the poor percentage of the
mite that Is their ALP
TRUST AND BANKING COMPANIES.
The statements of seventeen IL ust and
banking companies are contained In the
report, an addition of one. The Mercan-
tile Trust company of Portland and the
Lewiston Trust and Safe Deposit company
have begun business during the year. The
depositors In these institutions at the
present time number HISS, and the
amount of deposits is 50. eol, 1ls 2s. This
is an increase of 1850 depositors and ST..
I76, 9S7. 90 in deposits during the year.
LOAN AND BUILDING ASsOCIA.
TIONS,
There are now thirty-two loan and
building associations doing business in
the state, one having Voluntarily closed
during the year.
lhe huuIoEu rims bodn anu IouiiuiuS
Association was organized December 10,
1896 In April of the present year, by
unanimous vote of its officers and consent
of all shareholders 1t retired its shares
and equally distributed all Its funds. The
table of liabilities and resources for 1898
shows: Totals of 5000, 99s. n, against
q, 9la, 953o3.