Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1910-09-08

Tho law requires tho mutual savings
banks tt carry TO II reserve surplus fund
ut each seini-annuai dividend period, bne-
eighth Of one per cent. OF the average
amount or deposits for such period. until
such fund amounts rs 10 yer cent. of
tho amount Of deposits and other liabili-
Ties exempt surpius, which fund shall be
kcpt IL meet losses III the business. The
banks referred to have complied with
this law
rhe savings banks and trust companies
are not required by hw to Accumulate
a surplus, and the only security fur de-
posts Il the capital stprk paid IN. and
the liability Of assessment for Its fun
value. equally ana ratably, and not one
stocfthuidef for anothen
As long as our trust companies re-
manned comparatively small Institutions
this security was ample and larger than
is reiured Of the mutual awnings baaits.
but the larger q trust company, the
smaller Is It's security to the depvsitvrs
under the law.
The trust companies are all nccumu-
lating surplus IN accordance with sound
principles OF banking, ana many have n
large surplus ana / think that the law
should be changed to require all rawlings
banks and trust companies to nccurnn-
ntc and hold for the security of deposit
tors. ~ surplus FUND which, with the cap
ital stock should be the same az Is re-
duire1 Ct mutuel rawlings banks.
LAWS or INVESTMENT.
Some Of the officers Of our banks think
that a wider range of Investment should
I've allowed. Some changes might he made
! IN our laws IN that particular. so 90 tu
| allow the taking as collateral Tor loans,
securities of proven stability; and the law
which defines tho charnCtcr OF municipal
bonds may we'll be amended. Some OF the
| laws rotating to banks arc Inconsistent.
| and many DO not clearly stuto the intent
of tho Legislature, or moot present day
| conditions. banking IN Vermont has
mado great strides in the past Il years.
tho deposits In our Stnto banks having
moro than doubled during that period
aud | can SEQ 10 reason for not oXycut-
| Ing ns great growth In tho future. The
banking commission appointed by the
Governor by virtue of 1875. has given the
question of revision of the banking laws
of the State Il great deal of thought, ard
|
such changes ~ Will be wise and bone
fetal. and their advice should be care
| fully considered.
| OFFICERS AND employees.
After all possible has leen done by
the bank commissioner to safeguard the
interests Of tho depoaitors and the public
| the real of the soundncsa and succe -
OF bank lies in the character and abil-
ity of It's officers and employees. unc
the eoundnoes and healthy condition ol
| tho banks Of Vermont, tho confidence OF
the people of the Stute in them and their
steady growth, Is due to the fact tina,
men have been IN control who hnvc DC
voted their best efforts TO sufeguurdira
tho interests intrusted to them. Too much
emphasis cannot be placed upon the i'm
portanco Of safoguurdlng FIST, the de
posts. and second. the rights of othc,
| parties in interest
| Faithful and efficient employees shout,
! be retained. and salaries should he fairlN
compensatory for services rendered. III.
| duty OF an officer or empluye does no
end with the daily routine, and ii should
be the aim OF those in charge of oui
banks to have fl positions of such great
| responsibility ana trust. those who ar,
not only competent. but who will civ,
to the bank faithful and honest service
the Interest Of the bank being their first
thought.
Respactfully submitted,
FRANK G.. WILLIAMS.
Bank Commissioner