Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-23
Savings Bank Tax.
lNl.,i;inl PrcSs.l

What recommendations if any. the
special tax commission will make in
II gard To- taNatinn of savings banks
deposits remains to Dc seen. but ii IS
IF interest t. tIJtc what IS gong OH III
Vermont in this connection. There is
IN agitation Ter reduction of the rate
and il is n"W At the stage of Legislative
hearings. the Legislature being in Sos
sion It seems that the present rate
iii Vermont is S-N"n-t"nthS of one per
cent. and chat the opposition be
ing urged is that this be reduced one
half on to SeV"n-tWcnticthS Of on"
per cent The advocates of reduction
maintain that it is the duty of the
State to discourage boarding and to as
Sist the banks to maintain the rate OF
interest On dclrritS at or near four
rcr cent. This rate the advocates of
reduction hold. would attract money
tIat would otherwise he boarded, or
only OCCASIONALLY invested. and then
only in hope Of short turns and big
returns. 1t is the testimony of those
appearing before the committee that
there is a good deal of money boarded
in Vermont which never reaches a saw
irgs bank or any other bank, but is
argue that if the savings banks are
compelled to cut down their interest
rates in order to meet the states re-
q;iromel,s. it VIII tend to cause the
increase Of boarding.
1t is surprising to learn that the old
stocking still figures to SO large an
extent a. the place of money deposit
i'll the old state Of Vermont, for Il
would be supposed that the people OF
that land of school houses would nave
learned by this time that the Old
stocking if far from burglar-proo Ii
would naturally be supposed that those
With Il little laid by would prefer absn-
iutclN safe keeping and some interest
on their money to risk of fire and ROB
berry ana no return at all. However.
On the assumption that conditions are
as stated let US see how they conpar,
With those elscwlerc-in Maine. for in
stance. There may he boarding in this
State. too. but it is not in evidence.
ON rate of five cights of one per cent,
which is 4 fraction smaller than the
Vermont rate, that is three tcrtiptl$ 0f
Cnc per cont. The tax i'll Massachu-
sets is less than half of the Vermont
rate. How Go the states compare on
deposits? OF course as the oldest, most
populous and richest of the New Eng
land states, The savings bank account
| of massachusetts, is much the largest
absolutely and relatively. In Maine
the deposits last year We're $S4. 900 0N4 in
round Numbers. in Vermont, $11.
uGO.OoD and in Massachusetts 1854 .aro.
600. ON the basis of the estimated
population of the several states The
amount of savings per capita were:
Mainc. Sis; Vermont. S162: Af4ss;l-
chusetts, $21l These per capita fig
! ure.s indeed have been used by ON
Democratic friends to prove that pro
hibit'on docs ii ana that license ana
local option produce thrift AMI wealth.
rs to The ta&atioG question: however,
thry prove nothing ana can hardly ~
SAID to indicate anything in particular.
we find that the stat" With the lowest
tax rate has by far the largest relative
savings uep0Slt-almoSt twice that ot
Maine but on the other hand the one
%! the three with the highest tax rit"
| mas Il larger relative deposit than
Name. which has a lower rate There
Goes not appear to be anything par
ticHlhr!y illuminating about that. ~
the same there is room trr argument
| That til" rate in Maine is too high