The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1911-03-25
A BANK LAW VAeARY

The Messenger has received the fol
lowing communication from friend
who is regarded as one Of the leading
legal authorities in the state. 1t is
worthy of careful reading.
q have just been looking over the
public laws of the last session and
/ have come on a curious piece OF leg
islation to which ] thought | would
call your attention.
No. 1853 is the new banking law
Section % of that law forbids the pay
ment of interest on deposit for
longer period than the money has
been deposited, except that deposits
made not later than the 10th day OF
the month commencing semiannu-
al interest period nor the 9th day
of other months may in the discretion
of the trustees have interest declared
from the first of the month when so
deposited So far the provision is
general and manifestly proper and
wise. Then follows this sentence:
a" The foregoing provision of this
section shall not prevent the trustees
of any trust company from declaring
interest in such manner as interest
may have been, with the approval OF
the bank commissioner prior to the
passage of this act declared
1.-THE sentence quoted, | under
stand, was not in the report of the
commission for the revision of the
banking laws but was inserted by the
legislature. If good banking requires
that savings banks and trust COM
panies should not be permitted to
allow interest for more than five or
ten days respectively in excess of the
actual time of deposit, why should
some banks be permitted to do other
wise because they have done so in
the past? The five and ten day limi-
tation will apply, / think, to most all
of our savings institutions. 1t would
be interesting to know how many
come under the exception and are TO
be permitted to violate good rules of
banking and to have an unfair advan-
tage in competition over the others.
1t is such a marked case of special
legislation hat / thought | would
call your attention to it,"
This subject is obviously one that
the average layman may not be sup
posed to have special knowledge of,
but it is well to bring it to the front
now and put the question raised by
The Messengers correspondent into
circulation in the hope that somebody
responsible for this special legisla-
ton will come forward and explain
the reasons for it. Certainly all Yer
mont bankers and all depositors in
Vermont banks, as well as all citi-
zens under Vermont law, for that
matter, have right to an understand
ing of this peculiar twist in their own
business.-St. Adams Messenger.
II the Messenger, diguised as white
robed innocence, is merely trying tc
stir up trouble it should 90 to Rut
land or North Hartland where they
have trouble to give away, but If il
is honestly seeking information il
should read the lower half OF page
CO. OF the House Journal of the re
cent session of the legislature. The
record there contained is as follows.
II. $50. An act to revise the law re
lating to savings banks and trus
companies;
Was taken up, and the first to tn,
seventeenth amendments proposed BY
the committee, inclusive, we're sever
ally considered and agreed to. Pend
ing the question, VIII the Hous,
agree to the eighteenth amendmen
nrOnOgpd nv the commiftaa7 Mr.
Page OF HYDE Park moved that tn,
amendment be amended so as to reat
as follows:
XVIII In section 2S on page 1902
OF the printed bill by inserting afte
the word deposited" in line tn
following. The foregoing provision
OF this section shall not prevent tn
trustees OF any trust company iron
declaring interest in such manner a