Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1905-09-01
SAVINGS BANKS VS.. NATIONAL
BANKS.
From the Real Estate Mans View.

The feeling is almost universal through
out the United States that real estate is
compelled to bear more than its Just pro-
portion OF taxation. Attempts have been
made in almost every state in the Union
to shift a part of this burden to other
property. Laws innumerable have been
made taxing money, and severe penalties
have been attached to any failure to de-
clare the same in the tax list Special
commissions have been appointed in
several OF the states, with almost regal
authority to compel the money to come
In and be taxed. Liberal rewards have
been offered for the detection OF any
money which has been improperly with
held from the returns, and yet a large
portion OF money is still in hiding.
The non-partisan committee appointed
by the legislature OF Ohio, several years
ago. made perhaps the most determined
EFFORT to ferret out the hidden money
which has yet been attempted In this
country. and because OF their exceptional
facilities and their methodical procedure
their report is worthy OF very careful
consideration. Included In this report
was table showing the exact amount
OF money deposited by individuals in
commercial banks Of that-stata end
what portion OF this money was able to
evade taxation. About Sl2s, 000. 900 of this
money was in commercial banks located
Cincinnati, Toledo, Dayton and Columbus,
and only about Sc 900 900 was returned
for taxation,-less than one-twentieth OF
II.
The city OF Cleveland, with its large
sprinkling OF New England descent, show
ed individual deposits in such banks Of
s63, 900, 900, and only about 81 500. 600
about one thirty ffth-was taxed. In
conclusion this committee made use of
the following language: Worst OF all,
II imposes unjust burdens upon various
classes in the community: upon the far
mer In the country, all OF whose property
is taxed because 1t is tangible; upon the
man who is scrupulously honest; and up
on the guardian, executor and trustee,
whose accounts are matters OF public
record"
Other states have made Investigation
along the same lines with equally start
ling results, and should the money OF this
state show tendency to withdraw from
savings banks and locate In savings de-
partments OF national banks, Vermont
will be likely at our next legislative
assembly to follow in the footsteps of her
sister states, and not only appoint a COM
mittee but enact drastic laws perhaps
similar to those OF Massachusetts,, to pre-
vent this unfair method OF evading taxa
ton. Our state savings institutions paid
into the state treasury in the last fiscal
year taxes amounting to 1912, 503.s2, and
almost to that same extent relieved the
real estate owners from their excessive
taxation.
Now the question which should appeal
to every real estate owner is this:
Whether It is for his interest that the
money in the state should continue to
increase in the savings banks, where the
laws OF taxation reach every dollar OF II.
and thus relieve the real estate from anv
state taxation? Whether his self-interest
will allow him to stand by and view with
indifference the attempt by national banks
(Which were never created for any such
purpose) to gather in this money and
hide 1t from the state and town officials.
and in the end compel the Commonwealth
to re-impose the state tax upon real
estate?
From yet another point Of view the
owner OF real estate should take an active
interest in savings bank deposits. Bills
have been introduced at nearly every ses-
sion OF the Vermont legislature for the
past 20 years which were designed 10
oepress interest rates on mortgages secur-
ed by Vermont real estate Under the
provisions OF the present law the savings
institutions are compelled TO keep a GER
at present to nearly five million dollars,
invested IN Vermont real estate mort
cages. On the other hand not a single
dollar held by national banks can be 40 in
vested Thus the transfer OF money from
savings to national banks must OF necessi-
~ derange the existing ratio OF supply and
demand and raise the rate OF Interest on
Vermont land mortgages.
Attempts have been made to Justify the
Of money from the tax list
on the plea that bonds and mortgaRes
sometimes escape taxation. but I think
every tair-minded person must admit on
slsht investigation that the real status