The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-09-16
Recommendations Made by
Commissioner Williams
In Annual Report
CHANGE NEEDED IN
INVESTMENT LAW
Says Work of Commissioner Office
Has Increased to Such an Extent as
to Make Proper Examination Impos-
sible-Banks' Condition Excellent.

sible-Banks' Condition Excellent.
MONTPELIER, Sept. 13.-In the alb,
straet of report made by Bank Com
missioner Frank c. Williams at the close
of business June 30, the following
recommendation are made:
Examinations.
The work of the department. both in
supervision and administration, has in
creased so much in the past few years
that the bank commissioner cannot do
the work alone as formerly.
The administrative and supervisory
work required of the bank commission
er on account of the growth of the
banks and the many new questions
| constantly arising will prevent his
| spending as much time in the examina-
tlon Of banks as formerly, and much of
the detail work will necessarily have
: 10 be done by the examiner in the fu-
! ture.
Investment Companies.
| The bank commissioner has super
vision at the present time of l04 in
vestment companies licensed under the
! so called "Blue Sky law
The so-called ''Bue Sky law is
self-supporting, the entire expense of
| field examinations and Office work be-
ing paid from the fees collected of the
companies licensed, and there is at the
present time a balance in the treasury
of such fees and expenses collected of
| licensed companies.
New Investment Laws.
The new investment law nassrd by
the last legislature, allowing the banks
to invest in some classes of invest
ments not included in the former law.
has not been taken advantage Of TO a
very great extent owing 10 conditions
produced by the war | think there
should be some changes in the invest,
ment law TO meet new conditions.
Bank acceptances appear 10 be
growing in favor with the banks. and
| think their use should be encouraged
and so increase the credit facilities of
many business men. ] recommend q
change in the law making such ne.
ecptances legal for Investment under
proper restrictions.
Character Of Investments.
The character of investments by the
banks of Vermont has not changed
materially during the past year except
. that the banks have not invested Ia
! any great extent in farm NOR: cages
| outside Vermont. During the past
wear loan upon real estate which the
banks had in states outside Vermont
became due and were paid off 10 the
amount of $6,04O,3 07o4. The banks
took this money as needed to meet the
requirements of the government in the
purchase of Liberty bends, and to meet
the needs of borrowers in the state
The development during the past
year | think confirms the statement /
made in my report Of 1916 relative ia
/ the Federal Farm Loan banks and the
bonds issued by them. stated that
these bonds were not legal for Yer
! mont banks, and until it was certain
/ that the loans made by the Federal
| Farm Loan banks arc as carefully
I made as those by the experienced and
[ conservative investment companies and
( by the banks themselves, did no. think
such bonds should be made legal. Since
| that report was made the condition Of
those banks relative to financing tho