The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1911-09-15
vERMoNr SAVINGS BANKS
Report Issued by Commissioner Frank
c. Williams

c. Williams
Hon. Frank c.. Williams of Newport,
Vermont. bank commissioner, has is
sued his annual report and the follow
ing are some extracts therefrom:
Agreeably to section 4O3 of the pub
lie statutes, the Bank Commissioner
presents the annual report Of this de-
partment covering the state banks,
Building and Loan association, Invest
ment Guarantee and Loan companies
subject to examination by this depart
ment One new Trust col lpany has
been organized and opened for bust
ness since the last report of this de-
partment, viz; the City Trust com
pany, located at Burlington, Vermont,
occupying the banking rooms OF the
Howard National bank. There are
now twepty-one mutual savings banks
and twentyeigbt Trust companies
with savings deposits and two Trust
Companies without savings deposits
doing business in the state. A new
Building and Loan association has
been organized and opened for bust
ness at Springfield, Vermont, which
has not yet been examined, and no re
port appears in this volume. There
are now two Building and Loan asso-
Citations, one Investment and Guaran-
tee company, one Cooperative Saw
ings and Loan association organized
and doing business in the state, and
one Loan and Trust company organ
lied in Dakota doing business here.
The total deposits of the banks at
the close OF business June 80, 1911
were $685. ,S55.52 being an increase
for the year OF $25,042,62 which is
the largest increase in any year save
one in the history of the state. This
increase is divided as follows: The
twenty-one mutual savings banks
have increased deposits $2,357 ,464.S4
and the twenty-eight Trust companies
which have savings deposits have in
creased deposits $2,6S5, 1928.
The number of depositors has in
creased 1898. The number of Yer
mont depositors has increased S341,
and the number of nonresident depos-
itors has decreased 223. The amount
of deposits by residents of Vermont
has increased 1892, 706.74. The
amount of deposits of non-residents
has increased $719,92025The number
of depositors having more than $4,000,
90 each of deposits has increased
s1263 and the amount Of such depos-
its have increased $2,279,3 1850. The
state banks have paid to the state OF
Vermont in taxes during the year
$4S6, 2S8.7S, being an increase over
previous year of $27,25911
The banks have paid depositors in
interest during the year S2.554,sl5.5%,
being an increase of $216,0s6.95 more
than the previous year.
Dividends paid stockholders OF
Trust companies have decreased So
800 during tic year which is account
ed for by The tact that in the previous
year there was one extra div,'eao OF
s5O, 00,.OO vhile o ring the past year
there has heer an extra dividend OF
s1S,75e. The rate OF surplus 10 de.
pOsits shows a decrease OF trire
over per cent which. however, s &c.
counted for by the different basis up
on which reports are made this year.
Seventeen OF the Mutual Savings
banks paid depositors per cent in
terest, and four paid Sl5 per cent in
terest. The City Trust company had
not declared the interest dividend at
the close of business June Both, and OF
the other twentyseven Trust compan-
les which have savings deposits, TWEEN
ty-four paid per cent interest on
savings deposits, one paid 312 per
cent, one 3% per cent and one 3h
and per cent.
can only repeat with more empha'
sis what | said in my report a year
ago. that il is very difficult to increase
the percentage Of surplus while de-
posits are increasing so rapidly and
pay per cent interest on deposits,
with the law and conditions as they
now are. For a portion OF the past
year. rates on loans were better than
they had been for the previous two
years, and have kept up fairly we'll
but the rapid increase In deposits
! compels banks TO seek investment OUT
side the state, and in order to pay 4
per cent in crest and the state tax
\ OF 40 ~ one per cent on deposits
II Is necessary TO receive practically
& per cent interest on loans In order
To comply with the law with relation
. TO the increase OF surplus. IL viii
1 be noticed that the percentage OF sur
! Mus TO deposits is reduced in table
No. . this year. which is accounted
for by the change In the law which
does not allow accrued interest upon
loans to be used in computing surplus
and does not indicate the real de
/ crease in the percentage OF surplus
By the present law and under the rule
adopted for the annual reports every
bank In the state has In reality an
undisclosed surplus fund OF thu
amount OF uncollected interest upon
loans, which. II computed and added
TO the surplus, would make a very
material increase in all cases, and 4
very large increase In the case oi
large banks so that In estimating the
real strength of a bank this fact
should be taken into account be
lieve this Is not the proper method oil
accounting by the banks but under
the law passed by the last Legislature
I see no way by which the exact con
dition of the banks can be shown IN
that particular, except to publish TWO
reports OF each bank, and | DO NOT
think the commissioner would be war
ranted In doing that under the elreuI