Middlebury register. (Middlebury, Vt.) 1886-1937, 1899-02-17
A GOOD BANK RECORD
THE LAMOlLLE COUNTY SAVINGS
BANK DlSTINGU SHES ITSELF.

The Lamoille County Savings Bank and
Trust company 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 enjoyed 10 years of unexamped
prosperity, and today makes the follow
ing 10 claims, several of which we
think cannot he paralleled In the history
of savings banks anywhere. Here they
are:
1st. Not a dollar lost by bad in
vestments in the 10 years.
I'd. Not a dollar of doubtful assets
owned today so far as is known.
Sd. Never a moments delay asked on
any application for withdraw.
4th. Never loan refused in its
legitimate field for loanlng, if good and
within the law.
of Vermont.
9Th. Not a dollar of assets owned
outside of Lamoille and adjacent
counties.
eth. 1t has never paid to depositors
less that 1 per cent. compounded semi
annually and is paying that today.
Sth. Never a dollar earned at more
than six per cent.
9th. An accumulated surplus eX-
ceeding 10 per cent of its capital stock.
10th. A continuous growth from the
start each six months showing an In
crease of deposits and assets over the
previous six months.
There is a bit of personal history con-
nected with this bank which, in view of
the above results, forms an entertaining
chapter to those connected with savings
banks, or, indeed, to anyone interested In
the growth and prosperity of Vermont.
In 1881 ex-Gov. Page was appointed
inspector of finance, position which
he held until Dec. ], 1883. During
this period he had official charge of the
savings banks of Vermont. AT that
time savings bank managers were in
fatuated with western mortgages and
there was no limit by law to the amount
of this class of investments which a
savings bank could carry.
Gov. Page, seeing, as he believed, a
collapse of the western mortgage boom,
as ed the legislature to limit the amount
which could be invested in western mort
cages to 40 per cent of the banks assets.
His request was stoutly opposed by the
managers of nearly all our Vermont
savings banks. The result was that a
compromise was finally reached whereby
in 1856 a statute was enacted limiting the
amount which could be invested in
western mortgages to 80 per cent of the
assets of the bank.
New Hampshire was in precisely the
same situation, but in that state an
attempt to establish "A limit as in Yer
mont was unsuccessful. 1t is hardly
necessary to state results, because they
are generally known. With a single
exception, we believe, every savings
bank in western New Hampshire-ihey
were all, save one, heavily loaded with
western ortgages-failed; while in
Vermont there was not a single savings
bank failure from 1884 to 1898. They all
passed through the crucial test of none
tary panics unscathed.
The retaining of Vermont money in
Vermont to foster and develop Vermont
industries was regarded 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 illustration that it could
be done, and within 60 days from the
time he surrendered his position as in
spectOr of finance he started at Hyde
Park the Lamoille County Savings
Bank and Trust company. From its
organization until today, period of 10
years, this bank has never loaned a
single dollar outside of the state, and if
the success of the institution is correctly
set forth in the 10 claims appearing at
the head of this article-and there is not
particle of doubt that they are-we
think the governor has substantated
his theory by lncontroyertble facts.
This bank has advertised from the be-
ginning that every Lamoille county in
dustry might depend upon it for financial
assistance at any and all times, and even
during those terrible panics of '93 to 60
which so severely tested the foundation
of all savings banks, it never hauled
down its colors. 1t never for one mo-
ment failed to respond to calls for finan-
cial aid from any borrower living within
its legitimate sphere OF loaning, claim
which we believe cannot be truthfully
made for any other bank in Vermont.
= 1t has demonstrated the fact that il
home loans are sought for and encour-
aged by savings bank managers, new in
dustries will from time to time spring up
and develop to absorb the loaning capa-
city of its local savings bank. The fact
that the Lamoille county savings bank
and trust company does not own an asset
outside of Lamoille and adjacent counties
; is the best possible substantiation of this
position. To claim otherwise is of course
to assert that Lamoille county is an ex-
ceptional field, and we know of nothing
! to warrant such assertion. Indeed, it is
a matter of record that in 1856 the only
2 bank in Lamollle county was compelled
. TO reduce its CAPITAL from Slot, 900 10