The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-08-23
s64,475,O 13. O4
Deposit IN BANKS
IN VERMONT
Commissioners Report Indi-
Gates General Prosperity
INCREASE OF S4,O16,395.63
Dividends of 2,184,203-llleaaI Prac-
tees Formerly Allowed in
Some Banks Corrected

Newport, Aug 22.-Bank Commits
sioner f. G. Williams of Newport, has
presented his annual report on bank
ing conditions, the mast striking fea-
ture of which is the large increase
shown in the amount of deposits, $4,-
| Ol6,359.63 which Is the largest in
| crease in the history of the depart
ment except from 1906 to 1907 Mr.
Williams Is convinced that several
changes making for sound banking
should be incorporated in the state
laws. The relation of saving banks
and trust companies is also discussed.
The detailed report is as follows:
Agreeably to Section 403 of the
Public Statutes, the bank commits
sioner presents the annual report of
this department covering the state
banks, the building and loan associa-
lions, investment, and guaranty and
loan and trust companies subject to
examination by this department.
| Two new trust companies have
been organized and opened for bust
ness since the last report of this de
partment, namely, the Mortified
Trust Co. located at Mortified, and
the Barton Savings Bank and Trust
Co.. located at Barton. The Barton
Savings Bank located at the latter
place, has been liquidated and the de-
positors paid.
There are now q savings banks
and savings institutions, and 29 saw
ings banks and trust companies in
operation in the state.
The present commissioner was ap-
pointed January 7, 1909 and the first
work which | attempted was study
of the laws relating to my duties,
and those which define the duties of
the officers of the various institutions
which come under the supervision of
the bank commissioner.
After careful study of those laws
and the laws which govern the Of
ficers of the various banking institu-
tions in the state in tneir relation to
the depostors and stockholders, / be-
came convinced that there should be
some changes in the laws with rela-
ton to investments surplus method
Of examination and other subjects;
but, in view of the fact that there is
to be commission appointed by the
governor to investigate and report
to the next legislature upon these
matters, shall not attempt to make
any specific recommendations in this
report.
From the time | was appointed un-
til the third of July, my whole time
was occupied in the examination of
the banks and trust companies, and
was not able to give as much time
as | think ought to be given to the
office work, and so am not able to
embody in this report some matters
wnich / had intended. l hope, before
another report is made by this de-
partment, to be able to bring about
more uniform system of account
ing and reporting by the savings
banks and trust companies in the
state.
The legislature of 1908, by Act No.
81 of the session laws, more than
doubled the duties of the bank COM
missioner, and / think the Importance
of this department and the need of
more constant supervision, warranted
the Change. Some practices not wan
ranted by law, and not in accordance
with principles of sound banking have
been allowed in some of our banks,
but they are being rapidly corrected.
AIR suggestions which have made
looking to a reform in such practices
have been acted upon at once by the
bank officials, who have shown great
in the Improvement of all
existing in the banks I'M
der their care.
Deposits.
TIE total deposits of the banks are
$64 AYE, 013.04, an increase of $4,016,- |
1888 for the year This is the |
largest increase of any year. except |
from 1906 to 1907, in the history OF |
the department. and, in view of the |
change of the law in 1906, which ac-
counted for the large increase the fol
owing year, this remarkable increase
N deposits indicates that the people
If tnis state have great confidence in
he stability of our banks, and also
hat general business in Vermont has
lot seriously suffered the past year.
Ten of the savings banks and 81 of
he savings banks and trust compan-
es have paid 4 per cent interest upon
deposits during the past year, and 4
savings banks and trust companies
lave paul or per cent, SdNihbo |
ranks have paid S% per cent and l,
~ per cent One savings bank and
rust company paid per cent, and l.
~. Two trust companies have no
deposits.
Some of the officers of both classes
# banks think that the rate ought to
,e reduced to 81 per cent, while
,thers insist that their earnings war
ant them in paying per cent.
There should be no inducement for
savings bank or savings bank and
rust company to enter into competi-
ion for loans with their neighbors,
nd unless the banks are able to loan
heir money upon absolutely safe Sc
urity at such rates as will warrant
ne payment of per cent interest up
N deposits, the rate should be reduc-
ID; hut on the other hand, 1t is the
Iuty of all savings banks and savings
Institutions to pay the depositors as
much as they can afford after adding
O the surplus whatever is necessary
O comply with the law, and properly
afeguard the deposits.
The savings banks and trust com ]