The Barre daily times. (Barre, Vt.) 1897-1959, 1911-02-20
VERMONT BANKS
SHOW AN INCREASE
State Commissioner Williams Issues a
Statement Showing Gain in Six
Months, Also Announces Bank
Law Changes.

State Bank Commissioner Frank C.
Williams has issued statement of the
aggregate resources and liabilities of the
fifty mutual savings banks and savings
banks and trust companies at the close
of business December 81, 1910, showing
that the total increase in deposits dur
ing the six months from June 80 was
ST 6l5,s3l 90 He also announced that
the comptroller of the currency reported
on January 1911, that of the 81 ma
tional banks in Vermont 81 have saw
ings deposits of s7,s4l ,229.75. Accrued
interest is not computed in the savings
bank abstract, because the last legisla-
ture amended the law so as to eliminate
accrued interest in computing surplus
Commissioner Williams also sum
marizes the changes in the banking laws
by the legislature Of 1910, as follows:--
Changes in the Banking Laws.
!. The local tax upon the excess Of
$1,000 of individual deposits was re-
pealed, and the limit of individual de-
posits was removed as to all state banks
2. The local tax upon funds and se-
curities held in trust by trust oompan-
les, by order OF court or otherwise, WAS
repealed.
3. Mortgages on real estate in an ad.
joining state, within twenty miles OF
the bank making them, may be treated
as Vermont loans.
A. Mortgage loans on real estate may
be made TO a person, partnership or cor
poration Treating loans to each partner
as loans to the partnership to the
amount Of 100000, and may be increased
per cent. Of the deposits in excess of
81 100000.
5. Railroad bonds which comply with
certain requirements of the act are made
legal investments for banks, and the
commissioner is required to certify those
which meet these requirements, which
will be done as soon as possible
6. Investment Is allowed IN stocks
0i national banks in the New England
states, and the state Of New York, and
in banking associations and trust com
panies of this state: but no bank shall
ment and as security for loans, in excess
OF 10 per cent, of its deposits, nor, IN
any one bank more than ) per cent. of
its deposits or more than $4,000, or
more than 10 per cent. of the capital
stock Of any one bank.
Z. A bank may deposit on call in
banking associations or trust companies
approved by the bank commissioner Of
this state and under the supervision OF
the state or federal authority. iii this
state or hi the cities OF New York. Bos-
ton, Chicago. Albany. Philadelphia. or
Concord New Hampshire, or in any other
bank designated as a depository under
the laws Of the United States, or III
national banks in the cities Of St Paul,
Minneapolis and Kansas City, with or
without interest as may be agreed upon,
sums not to exceed in the aggregate 20
per cent. of the assets OF such deposit
ing banks.
S. Loans may he mRae Oh personal
security with two approved nsA Of
persons resident III the state O Fithin
Fifty miles of tile bank making the loan;
but not more than one third of the as
sets OF the bank shall be invested ia
such loans and personal loans with col
lateral security; nor shall q bank loan TO
any person partnership, association or
corporation upon personal security
Treating loans TO individual members
of partnership as loans to the partner
shipl more than $4,000, until Q banks
deposits amount 10 one million dollars,
after which the sums so loaned may be
per cent. OF the deposits in
excess OF one million dollars up to, but
not exceeding $4,000, or, in cases where
10 per cent. OF the capital and surplus
exceed $4,000, up to, but not exceeding
10 per cent of the capital, if any, and
surplus; but this limitation does not
apply to loans secured by municipal or
railroad bonds.
g. The committee OH banks reported j
an amendment to the commission bill. /
which was adopted, which provides that
accrued interest shall not be used in de- I
.ermiuing the per cent. OF surplus fund
held by a bank
10. All banks must carry a reserve /
1f Is per cent OF their commercial de. /
oosts and per cent. OF their savings /
deposits At least So of this reserve I
must be in cash on hand and in author +
zed banks. and l-3 OF said So must be
ID cash on hand but balances in banks /
in the same county with /
me Dallk. VIII De hccepttu III lieu VI SenH /
TO the amount of = OF such cash re- /
luirement. and % of such reserve may I
Be in United States bonds, or in the
ponds Of any city Of the United States
If at least two hundred thousand inhab
tants, according to the last United
States census.
Ill. Trust companies are required to
iet aside for surplus fund, before pay
NO dividends to stockholders, at the
ate of one-iourth of one per cent. a
rear OF their average deposits for the
previous period, until such fund and its
stock amounts to 10 per cent. of its
deposits and other liabilities except cap
tal stock, surplus and funds held in
iduciary capacity. In order to pay 4
Ter cent. interest on deposits, bank
must have accumulated at least one-hslf
# such 10 per cent. surplus, and make
he annual additions stated above, and
lold as security for losses.
~ A director Of trust company
must own at least one thousand dollars
# its capital stock, absolutely free and
npledged.