The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-07
VERMONT DEPOSITS
INCREASED S7,536,294
State Banks Made the Largest Gain in
the History of Vermont-Comnlis-
sioner Williams Makes An
nual Report.

The Vermont state banking depart
ment reports that the total deposits OF
the state banks at the close OF the fis-
cal year, June 80. 1918, were SS7 ,929, :
764.S0, being an increase for the year
of 81 $50 ,2D4.s9, which is much the larg-
est increase in any year in the history
OF the state. OF this increase the mu-
tual savings banks had So ISL ,5l3.06 and
the trust companies had S4,357 ,7sl.S3.
There are 1852 more depositors than
year ago, of which $500 are residents
and 1888 non-residents. Most of tine
increase of deposits was by the resi-
dent depositors, their amount being S6,-
500 660.3S, as contrasted with $9l2,57S.3l
OF the nonresident depositors. Another
interesting fact is that the number OF
depositors having more than $1,000 each
has increased $3.50, and the amount OF
such deposits has increased S5l0s, ,lSS.79.
The state banks have paid to the
state of Vermont in taxes during the
year S577 ,37S.20, being an increase over
the previous year of SAL ,s97.lI. The
banks have paid depositors in interest
during the year, $3,0ls.735.s0, being an
increase of 1921 1886 over the previous
year. At the same time the dividends
paid stockholders of trust companies
have decreased S30,05S.25.
The rate OF surplus to deposits has
increased over one per cent, due to the
change in the law which requires ac-
erued interest to be figured in determine
ing surplus. All except two of the 2l
mutual savings banks paid their depos
tors at the rate OF four per cent in
terest, those two paying three and one
half per cent. Thirty OF the 80 trust
companies paid four per cent.
In the opinion Of Commissioner Will
liams, the ratio of surplus to deposits
has not increased as much as good
banking requires; and he adds his for
mer statement that sit is impossible
to make any appreciable increase in sur
plus while deposits are increasing so
rapidly and banks pay four per cent in
terest." He says that the demand for
money in the state has not increased
during the past year as rapidly as de-
posits, and it has been necessary for
the banks to continue loaning large
on out-of-state mortgages or
purchase municipal bonds.
The blue Sky Law"
Commissioner Williams opinion of
Vermonts new blue sky law" is given
as follows:
THE Legislature of 1912 passed act
No. ITO, called the blue sky law which
requires corporations, partnerships,
associations. etc, to be licensed by the
bank commissionep before selling or Of
l..
securities. This act went into effect
April /, 1913, and between that date
and July j, 46 investment companies
were licensed. The object Of the law
was to prevent the sale. or offering for
sale, in Vermont, of worthless secur-
ties, and by the act the bank commits
sioner is given very broad discretion.
So far as I am able to Judge, the law
has worked well, and great many peo-
pie who desired to offer certain securi-
ties for sale in Vermont, after making
inquiries as to the conditions, have
withdrawn from the state. II Is vet too |
early to judge as TO the full benefits |
derived, by the people of Vermont, from
he operation of this law, but ! am in
lined to think that it will be of very |
yreat benefit | think, however, that |
'he law can be improved by a few |
Commissioner Williams reports that |
our trust companies have been organ |
zed and opened for business, as follows:
The Granite Trust company at Hard.
yiek, the Quarry Savings Bank & Trust
ompany at Barre, the Valley Savings
Sank & Trust company at North Troy,
md the Essex Trust company at Essex
junction.