62 BOARD OF AGRICULTURE. 



Savings Banks. — The original design of these institutions was 

 to furnioh places of deposit for the savings of persons of limited 

 means, where the money would be secure and would make a mod- 

 erate gain for the depositor, thus favoring habits of thrift and 

 economy. In this regard they have undoubtedly accomplished a 

 beneficient result. 



In view of their design the privilege of exemption from taxation 

 was practically accorded (although not by legal enactment) to all 

 deposits in the savings banks of this State until 1872. From the 

 fact that to a limited extent, at least, these banks came to be 

 regarded as also places of investment for the funds of the capital- 

 ist, or a cover to shield them from the burden of equal taxation, 

 the propriety of exemption was no longer conceded, and in 1872 a 

 tax of one-half of one per cent, was imposed upon all deposits, 

 and in 1874 this tax was increased to one per cent., one-half of 

 which is devoted to the common school fund and the other half 

 directly to the use of the State. From this source in 1875, a rev- 

 enue of more than $300,000 was derived. The growth of these 

 institutions in this State is indicated by the following facts and 

 figures : In 1867 the amount of deposits was $5,598,600.26 ; * in 

 1868, $8,032,246.71;* in 1869, $10,839,955.26;* in 1874, $31,- 

 051,963 73 ;t in 1875, $32, 083, 314. 28. f 



In 1869 the number of depositors was 39,527, giving an aver- 

 age amount to each depositor of $274.24 ; in 1875 the number of 

 depositors was 101,326, and the average amount to each depositor 

 $316.63. The large number of depositors indicates the important 

 work these banks are doing, and the average deposit shows either 

 that a large majority must have stored in them only small sums, 

 or they are but little used in this State by capitalists and for 

 screening money from local taxation. Nevertheless, so long as 

 only limited amounts deemed justly taxable really escape local 

 assessors, they serve as occasions for complaint, and help more 

 and more to loosen the hold of assessors upon invisible property. 

 Two plans for their assessment are more or less discussed. The 

 argun)ent for the plan in favor of local taxation is of the following 

 character : Notwithstanding the very considerable revenue which 

 accrues to the State from the tax on deposits, it is a question 

 worthy of careful consideration, whether more satisfactory results 



* Report of lion. A, W. Paine, Bank Examiner, 1869. 

 t Report of lion. W. W. Bolster, Bank Examiner, 1875. 



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