The Barre daily times. (Barre, Vt.) 1897-1959, 1912-02-14
WHAT IS BEING
DONE FOR VERMONT !?
Correspondent Expresses Belief That the
Banks Are Retarding Rather Than
Promoting Growth of
Vermont

Editor Times: We have l46 towns in
the state that have fewer inhabitants
than one hundred years ago. One hun.
bred and eightytwo towns have a small
err population than fifty years ago. We
made it uncomfortable for capital to
remain in the state for a while; then
we made laws that the savings banks
and trust companies could gather in our
loose money and pay the state a tax
of seven dollars on a thousand and ex-
empt the depositor from taxation. Conse-
quently, by shrewd legislation and ad-
ycrtising, they have raked Vermont as
with fine tooth comb until they have
S73,936, s55.52 deposited in these banks
that are situated in the larger towns
and cities in the state. Sl6,47T, 1857
is loaned on real estate mortgages at
home, S33,727 ,46l.52 is loaned on real
estate outside of Vermont, and more
than one-half OF all the deposits are
outside the state at a much lower rate
OF interest than the banks get at home
Our deposits have nearly doubled in
state banks in ten years, and some
men that would feel belittled il you
called them anything but honest and
pilgHts VIII zen YOU TINS IL piosPtiltls
when, in reality, it has robbed our home
markets Of our working capital, expe
cially in our smaller agricultural towns.
1t has been made convenient for those
having money to get almost as much
and, in some places, more out of their
money in state banks than at home
where they are not annoyed by tax as
SCISSORS and are supposed to have it
at their disposal at any time. To get
this back we must secure the banks for
as much again as we borrow, or near.
~ that, and, If in small back town,
they more often will not consider a
loan on a mortgage at all and at the
same time they may have thousands of
dollars from this same place
What is the show for building up Yer
mont under this system? Our governors
excuse for vetoing bill the farmers
in our last legislature dared stand for
was, My administration faced deficit
Of S200,00000; my only remedy was to
depend on the increase in bank deposits
TO meet it," In substance, put on more
fuel to put out the fire. He got So
Do0O00.00 more last year and 3,45l new
1epositors. At least one-half of this
viii go to help some other state be-
sides Vermont.
Commissioner Williams of our state
banks says, Under the present law, il
are normal. | think there can
be no doubt that deposits in our state
banks will increase fully as rapidly in
Inc next few years as in the last three
years, and if it shall be the case it
will be necessary either to reduce the
'tate tax on deposits or reduce the rate
If interest" Would it not have been
more rational to have said, "If this be
he case, we would have to pay our min
ster in buckwheat raised from vacant
arms. as we did hundred years ago."
In closing. Williams says, money is
Is safe to-day in Vermont state banks |
IS it can be in any known class of in
'estments and the net income to de- |
'ositors is more than they can receive
pon any class of investments where the |
ecurity is good No one should know |
letter than Williams, but do many of |
'ur state banks stand good to the de- |
'csitor with stock and surplus for more 4
Ian 4 per cent. to 10 per cent. and. |
IS deposits increase, is not this growing |
cssf
Is this better and safer than good |