News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1916-03-22
VT. BANKERS MEETING
Extract From President H. M.
McFarIand's Address

pCiiuCutdi ppaSo ohu W ipo Woih IL va
rious ways has established it's right t.
"a place in the sum-, taking rank wit
other State organizations striving 70
the general uplift. Though the associ
alton has accomplished much it has a
yet only touched upon the possibiiitle
OF good within its power. Productiv
and hitherto untitled fields await tn
| husbandman.
The retrospect is altogether good
While the gains in deposits and accumu
lations have not been as large as il
some years, they have been good, an6
considering the very troublous times
through which We have been and art
passing, excellent. The year ending
Dec 3lst, 1914, shows a gain in deposits
in Savings Banks and Trust Companie.
So, 4l5, 1922 80 While for the year end
ing December 81, 1915, the gain was
$4,487, 99l.72, about 81 900, 900 over 1914.
Notwithstanding the cataclysm that
is shaking all Europe to its very founda.
tions and profoundly affecting the fl.
nancial structure of the whole world,
Vermont banks, both Savings and Ma
tional, have happily been able to pursue
the even tenor OF their progressive ways,
receiving and discussing the savings
and business deposits of the people as in
more peaceful times. We have been
able to do this for several reasons. In
the first place the waves of financial
disturbance that prove disasterous
where the storm centers become harm
less nipples sufficiently removed. We
are 50 Tar from the great centers tnaG
the maximum of peillOus danger there
is largely spent before it reaches us.
Again our banking Is not speculative.
but essentially conservative. Until very
recently the best railroad bonds We're
forbidden, and municlpals and other in
vestmenls so hedged about that our
Savings Banks ana Trust Companies
have found the line of least resistance
and the way OF safety as we'll as leading
and logically to real estate in
vestmeDts. This form OF invts ment
has become and very likely Will co.,
tlnue to be the chief feature IN the as
sets of Vermont savings institutions,
and latterly the door has been open TO
this class OF investments in a restricted
way to the National Banks On u
cember 3lst, last, GA per cent of lHt
total assets Of our savings INSTITUTE, -
were invested i'll real estate mOItgas =
very largely of the farm type, a.
while the National Bank percUntag. j.
much smaller, it Is safe to say I'll ~
from now Oh it viii materially increil T..
This condition leads me 10 bl t
of the rec procal reiatiUs,,
existing between farm mortgages ~
Vermunt's banking assets between W.
nont's bankers and tue tanner and Ills
farm, aud especially the Vermont farul-
sr and thu Vermont farm In the first
place, well placed real estai u mortgage,
Whether it be urban or rural, is the most
table OF all available investments We
lave been bred to believe that there Is
Nothing more certain nor stable than a
5overnmenJ bond, but the present world
,ohdltlons are causing conservative in
yestors to think, as not heretofore, con-
this hitherto urquesrIoueu form |
II investment. Whether the one or the |
lther is the more stable, the we'll placed |
arm mortgage Is safe and differs from |
he bond Ill having d certain indIvidu al. |
zed security back of it, certain broad |
we'll de1Led acres to which the mort |
,agor may finally go aud be protected il |
his going, whatever governmental |
;hange may intervene. On the other |
land, the government bond in the final |
analysis is the unsecurel promise to pay |
" a promlser chat undoubtedly will |
Jay, but that, nevertheless by virtue of |
is sovereignty has the absolute power
i reputation; and the municipal bond
ltfers from the government bond only
a the rate usually obtained and the fact
hat municipalities are answerable in
ourts like individuals and are like Incl
EQUALS and private corporations to the
trict letter of their contracts.
Granted, however, if YOU will, that
onds of the governmental and munich
al types are stable and unquestlonably
afe, they are unavailable as as gener-
asset, for even che Vermont banker is
yet unable to pay per cent divl-
end 10 the depositor, generous stl-
end to the State and overhead expenses
ut OF or even per cent rate, but
nder the schooling of our Legislature |
Q may yet achieve the seemingly i'm
ossible. He should not Despair in well
DING, but press hopefully onward.
DO not understand me-, however, to
ecry the bond. do not. 1t has il place, I
nd it is most excellent in it's place. 1t is
lfe, has the wider market and so is
lore liquid, but is subject to greater
uctuatlon than the mortgage and
elds less return. The mortgage, on
he other h and, has restricted market .
: none at all in the commonly accepted
ga OF the market, but continues under
iverse circumstances to be worth par
I'D through good and ill report TO bring
its stated rate of interest, no more
Id no less. It is wholly unspeculative
1t certain. In convertibility it is not
le equal of the bond, but safety, fair
turn considering the cost of money
he permanency rather than convert.
lily are the first requisite of the ideal
avings Bank investment, and there is l
)thlng that so well measures up to
Iese requirements as the widely mar
ned, Well placed, and carefully looked