St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1915-12-08
Driving Money out Of state

Bank Commissioner Frank c. VIII
liams is quoted by Little Rock, Ark.
paper as saying that Vermont had
savings deposits June 80 of $685.
223 and that Vermont savings banks
have $4O.0OO,O0O invested in other
states. The Little Rock paper has
apparently misquoted Mr.. Williams or
has gotten the figures twisted. Saw
ings deposits in Vermont are now up
wards of $1OO,O0O,O0O and the portion
invested outside the state is upwards
of $60,O00,000 and probably upwards
of $70,00O,0OO. Likewise the perman-
ent school funds. the college endow-
ments, church funds, school funds,
trust funds and other funds of a more
or less public nature and in the ag-
gregate amounting to probably twelve
or fifteen millions at the lowest esti-
mate are invested outside the state.
I In addition to these astounding items
individual Vermonters have been in
vesting in western farm mortgages,
western bank stock and other out of
the state securities at the rate or six
| or eight millions a year for over thirty
years. Some of this of course is re-
investment and there is no way of es-
timating the actual total but a con-
sentative estimate would be $780,
OOO,0OO Vermont is probably the
thriftiest state in the union for Yer
mont has no great wealth gathering
or producing centers and the riches of
the state have been largely gathered
by the careful savings of people of
small income. It is a wonderful show
ing of the ability Of Vermonters to de-
velop individual and family prosperity
from rather meager sources, but il
has a shocking side and one that is
disturbing to patriotic Vermonters.
This unfortunate factor is that Yer
monts antiquated and foolish tax
laws have driven this money so largely
out of Vermont for investment We
do not want the state to be provincial
and selfish and for that reason are
glad to see Vermonters take an inter-
est in outside affairs and invest some
of their money beyond the state Dor
ders but we need a far larger proper
ton of this money to increase the pro-
gress and prosperity of our own state.
The tax policy of Vermont for thirty
years has been short-sighted and cal
culated to cripple and stunt Vermont
endeavor. 1t seems to do no good to
argue the question but we cannot un-
derstand why Vermont year after
year fails to legislate to build up Yer
mont interests instead of continuing to
drive all this money to other states
for investment. The first step should
be to reduce the state tax on savings
deposits invested in Vermont to three
mills and thereby make it an object
for the banks to seek and to develop
loans in Vermont. Secondly, the tax
On securities is so high that it misses
entirely the object aimed at. Money
is so elusive that it will not bear
burden SO onerous. Thirdly, the tax
on railroad property in Vermont is too
great under the tax law of 1912. Rail-
road systems reasonably prosperous
are essential to the prosperity of the
state and Vermont might better re-
turn to the system of taxing gross
earnings which is fairer to the weaker
lines. We are aware that these chang
es would reduce the income of the
state but this could be made up by a
small tax on inheritances, assessed on