The Barre daily times. (Barre, Vt.) 1897-1959, 1910-09-07
VERMONT BANKS SHOW
BIG GAIN IN DEPOSITS
That For Last Year Was With q Single
Exception Of Largest In the His
tory OF the State.


State Bank Commissioner r. G. VII.
liams Of Newport, reports that the gain
IN deposits IN Vermont savings banks
and trust companies during the past
year was SiAl0,225, which was the lafg.
est in the history Of the state with
the exception of one year. The total
deposits are now 2Hs .s0i.2 27.9d
There are now n mutual saving
banks, and p savings banks and trust
companies with savings deposits, and
two trust companies without savings de-
posits, doing business in the state.
The number Of depositors has in.
creased 1887, Of which 209i are resi-.
dents Of Vermont, and 1903 are non
resident. Deposits BY non-resldents have
increased $5olsl505, being now $l0,'
0S5, $3.50.
Dividends paid depositors have in
orea.ed sl00,0l5.5s, while the average
amount to each deposition has decreased
5000, being now only S32670
Dividends paid stockholders Of trust
companies increased s53500 while the
rate Of surplus and profits TO deposits
shows decrease
paid depoyItors Z per cent? four 3la
per cent; one A. per cent. and Of the
81 savings hanks and trust companies
which have savings deposits, p paid 4
per cent. two 3A per cent; two 3la
per cent, and one SO per cent and 4
per cent on deposits for the year.
Surplus
II Is very difficult 10 increase the
percentage Of surplus while deposits are
Increasing so rapidly in many Of the
banks, and pay per cent with the
laws and conditions as they now are
and conditions the past year have been
as favorable for the banks in Vermont
as we can reasonably expect they will
be the coming year. The demand for
money locally has been good; rates have
kept up, and still the percentage Of sur
plus shows a slight decrease
Taxes and Interest Rate on Deposits,
Under the present law. the banks pay
a tax to the statae OF seven mills on
dollar Of deposits. The great bulk Of
savings deposits in our bank are owned
by persons Of small means, who would
pay practically no taxes upon il, we're
II invested in any other manner.
believe that there should be an in,
crease Of the percentage Of surplus to
deposits in all our banks until II reaches
at least 10 per cent? and | believe il
would be a wise and practical idea to
reduce the state tax 10 five mills, thus
the banks to pay per cent.
on saving deposits, and increase the
per centagc OF surplus, and that the in.
crease III deposits will more than Offset
any apparent loss in taxes.
Reserved Surplus.
The law requires the mutual savings
banks to carry TO a reserve surplus
fund az each semi-annual dividend I
period, one eighth Of one per cent Of the (
average amount Of deposits for such 4
period, until such fund amounts to ten
per cent OF the amount Of deposits T
and other liabilities except surplus. which 4
fund shall be kept to meet losses in the (
business. The banks referred to have I
compiled with this law.
The savings banks and trust com
panies are not required by law to ae-
a surplus, and the only Sc
,urity for deposits IS the capital stock 4
paid in, and the liability or assessment
Tor its full value, equally and ratably, 4
md not one stakeholder for another.
As long az our trust companies re-
NAMED comparatively small Institutions
his security was ample and larger than
4 required of the mutual savings banks,
but the larger trust company, the
smaller is its security to the depositors
inder the law.
The trust companies are al aeeumu-
ating q surplus IN accordance with
ound principles Of banking, and many
lave large surplus, and think that
he law should be changed TO require
II savings hanks and trust companies
o accumulate and hold for the security
4 depositors, a surplus fund which, with
ave large surplus, and Think that
IS is required Of mutual savings banks.