The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-11-03

positor 44464 20
Deposits and Investments
The total deposits of the banks are
$60,45S, 65341, an increase Of $3,Ol4,-
3jS for the year This is three-fifths
as large as the increase of the preyi-
Gus twelve morths but considering the
unsettled condition of business
throughout the country IN the fan of
1907 and the banking disturbances at
financial centers, this gain in deposits
is an extraordinary evidence of the
confidence of the public i'm our hands.
The investments OF banks in mort
cages on real estate in Vermont and
without the state have increased
million each, or about two thirds Of
the total increase in resources. They
have twice as much invested in for
eign real estate mortgages as in the
same class of security at home.
Fifty-siX per cent of the resources Of
the banks rs in real estate mortgages
a class OF security that for the past
decade shows almost no loss
Surplus, Taxes, Dividends
The surplus has increased S575, 1884,
60 during the year and is seven and
| three-ffths per cent of the deposits
There would be a further increase OF
one per cent if all the banks would
compute surplus as prescribed by sec
ton 1865 Of the public statutes.
The taxes paid by the banks were
S4.6.562y2 an increase for the year
Of $36,5S873 The other expenses
were $3S3,OS310 an increase of $685.
65G.89.
The banks paid dividends to depos-
itors of $685., 96G75, an increase of
| S233,5j242 over amount shown in
--O7 report Except the natural in
/ crease from the gain in deposits this
| quarter Of q million additional diWi.
| dend is due to the fact that many OF
The banks have advanced the rate
! from three and one-half TO four per
| cent The inability of some of the
! banks To- borrow money at reasonable
! rates during the outside panic led
them to- mark mp the dividend rate TO
| prevent Withdrawals. Now, when in
terest rates ON loanable funds have
decreased so IL is Improbable 10 pay
four per cent on new deposits the
banks have failed TO make q cores
ponding cut in dividends Formerly
on the three and oue-half dividend ba-
sis money for the development OF
Vermont resources could be borrowed
for five per cent, but now, no bank can
loan at this rate and pay four per cent
| dividend.
About Paying Per Cent
The question OF the legal ability OF
some OF the banks TO pay more than
three and one half per cent having
arisen, and their right 90 do this be
ing q matter of percentage OF sur
plus. / would recommend ley be pro
hibited paving four per cent dividends
To- depositors unless their reports e
the commissioner show ten per cen
surplus
would recommend the banks be n
stricted from loaniug other than Yer
mont companies or corporations OF
personal security unless their bust
ness be- carried ON wholly within tn'
state
Saving banks and trust companies
should De prohibited investing in baul
stock because 10 is liable TO a hun
dred per cent assessment
There is no apparent reason VIII
the treasurers salaries should be re
ported separately OF the clerical fore
and directors should De stated d
guard against expensive management
The banks should De required O.
carry au amount of cash aud bank ba
ances sufficient 10 protect deposits
and immediate legislation should b
enacted To- accomplish this
New Banks Advantage.
10 is not just 90 allow a trust con
pauy with q small capital when con
mencing business. 20 nay a four pc
cent dividend TO depositors while
long established savings bank is dc
MED this privilege if their surplus
az all short OF the required ten pc
cent Legislation TO equalize thes
banking privileges should be enac
ed.
would recommend the commission
or be required 10 make two eXaminj
lions of the banks each year instoa
of one as 90 present
The month of May was designate
as the time for the yorihcatiOn of pas
books which Is required OF the book
representing forty per cent of the dO
posits were presented at that time.
The commissioner has examined th
bonds OF bank treasurers as require
by section l.G2S of the public statute
Tie has performed the duties require
OF him boy section 3gS relating to stat
treasurer and auditor of accounts.
It IS gratifying to note that durin
: the panic of 1907 not a Vermont ban
required notice for withdrawal of d
posits and as ! retire as bank commit
sioner the deposits are one third la
b ger than when ] accepted the pos