Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-01-12

Idle u taxation there would De an an
nual increase of from $4,000 to $4,000
lin heSan3ount of this tax. If the rate
be reduced as suggested, and other
conditions remain the same. the an
nual increase in the amount of this
tax would be from $4,000 to $4,000.
From the above. it is estimated that
at the reduced rate this tax, next year,
would be approximately $3S5,00O, or
| about the same as that paid five years
ago. This increase, in deposits, and
consequent increase in the amount of
taxes would be still greater had not
the low rate of dividends paid already
led to the deposit of portion of these
savings III trust companies and Ma
tional banks. Trust companies now
pay tax of " of l per cent. upon
this class of Accommodations. If the
savings bank tax should be reduced to
the same rate, it would make no Diff
ferencesin the revenue of the State in
which of these classes of banks saw
iings deposits might be found. When
deposited in National banks, however,
they escape taxation entirely, although
the depositof is liable to pay a muni-
cipal tax thereon. AS the National
banks pay no tax upon such deposits,
they can afford to pay higher rates OF
interest than can sayings banks. Thus
the present policy of the State drives
, these funds from institutions under it's
own control tosbanks where. under any
lay yet enacted, they escape taxation
altogether. The total annual accumu>
lation of savings deposits in all kinds
of banks in the State must amount
to at least $5,000000. In the estimates
kmade tt has been assumed that but
SS3SsG00,000 of this increase would go to-
1.-THE savings banks. Even this con-
clusion is based upon the presumption
that the rate of taxation upon this lat
ter class of banks will be reduced, and
that they will thus be able to MAIN
tain approximately their present aver
age rate of dividends paid.
Only one reason is assigned why
these banks should not be granted this
reduction in taxes. 1t is that these in
situations are now used to a large ex-
tent by people of wealth for the de-
post of their funds for investment
This view is held by many who are
thus prejudiced against these institu-
tons. A very brief investigation, how
ever. must convince them that this
study of the statistics given in this
report, under the title classification
of Deposits shows that this cannot
be true. The depositors in these insti-
tutions row number 2O3,273 The aver
age to each depositor is $359.62. De-
posters to the number of 199,762 each
have $1,000 or less standing to their
credit While there are only 1907 ac-
AL.
These larger accounts are made UP
principally of trust funds, which il
otherwise invested would pay no tax.
These figures alone completely answer
the assertion, excepting that OCCASION
ally one individual may have deposits
in several different banks. While it is
admitted that there are more or less
deposits of this kind. it is denied that
such deposits make up any material
portion of the total amount. 1t is also
suggested that these are not desirable
funds for the savings banks to hold,
and that this department in 1898 urged
legislation SO limiting the amount that
no one individual could have over $4,000
in the savings banks of this State and
receive dividends thereon. This was
not urged for the reason that these
depOS1tOrS We're escaping tdXatlOn, Out
solely because the banks were being
embarrassed by the amount of such
deposits.
The one fact that the State has this
year found but $11, Alp, 551.00 of money
at interest for taxation, while the saw
ings banks contain $73, 102, 924.12 of de-
posita shows conclusively that so far
as the matter of taxes alone is con-
cerned it would be better if every dol
lar of money at interest could be col
lected into these banks. If this could
be done. tax of even y of l per cent.
would give the State all the revenue
it would need, relieving other kinds of
property from the burden of taxation
altogether.
During the past six years there has
been Withdrawn from the savings
banks $50, $50, 697.3S. The present val
uation of personal property in the
State. including bank stock, money a I
interest. live stock and every other
class of personal property is $69,174,51.