Widespread the success of the war. My hope is that the warsavings stamp campaign now begun will impress that lesson upon the American people. Everyone, however small his means, can help in this way. "I appeal to the heart and patriotism of the American people to help their Government and help themselves by a whole-hearted support of this war-savings plan.' of Thrift. The point is emphasized that thrift involves more than mere saving. When one has saved money by wise economy he must know how to take care of it. He must invest it safely and so that it will produce more money for him. Our governInvestment an Element ment needs our money immediately for the successful prosecution of the war. It could be exacted from us in the form of taxes but we are offered the opportunity of lending it to our government and in return we shall receive a fair rate of interest. Our government is encouraging us to be thrifty by making it possible for us to invest even our small savings in war savings stamps and government bonds. There is no doubt in our minds as to the advisability of purchasing war savings stamps from a sense of patriotic duty. This is the highest and a sufficient motive. Would a thrifty man desire to make such investments if he were not influenced by patriotic impulses? INVESTMENTS. of Thrift. The word thrift in the minds of some people has come into disrepute because at one time thrift meant simply hoarding and was associated with parsimony. To-day thrift means more than mere saving. Wise investment of savings is Investment an essential element of thrift. A thrifty young man is an Essenor woman seeks to invest his savings because it is tial Element safer than to keep them at home and also in order that they may produce some income. On account of their inexperience young investors are strongly tempted to make undesirable investments because they profess to yield large returns. Such opportunities are always available but many perfectly safe investments are also open in every community to small investors. The advice of bankers, reputable brokers, and business men of high standing and broad experience in investments should be sought by young investors until they have had sufficient experience to avoid serious mistakes in exercising their own judgment as to the value of the investment. The importance of this suggestion and the protection afforded investors in this state are at once indicated by the following warning issued to the public by Frank C. Williams, State Bank Commissioner: "There is a heavy penalty for selling or negotiating for sale in Vermont, without a license from the bank commissioner,— of any lands situated outside the state, any stocks; Bank Combonds or other securities of any kind or character missioners except the following: Bonds of the United States; Warning to State of Vermont; municipalities of the state; notes the Public. secured by mortgages of real estate in this State; obligations given by individuals who are citizens or legal residents of this State; bonds, stocks or notes of corporations which have been approved by the Public Service Commission, or other Governmental authority of any State or of the United States. Before the investment law was passed, hundreds of thousands of dollars of poor and worthless securities were annually sold in Vermont. Probably the sale of such securities has not been entirely prevented by the law, but I am convinced it has been very greatly reduced, and may be entirely stopped by cooperation of the people of the State with the Bank Commissioner. Do not buy any of the securities which require a license for their sale, of any one who is not able to produce a certificate from the Bank Commissioner showing that he has a license to sell them. Inform the Bank Commissioner of any cases coming to your attention of attempts to sell such securities by unlicensed people. If not familiar with the character of securities offered, which you contemplate buying, advise with some banker in whom you have confidence. The Bank Commissioner does not recommend the securities offered by people to whom he grants a license, but he does investigate all companies licensed and supervises their business to a certain extent, and is always ready to give the people of the State all the facts of which he has knowledge relating to the securities offered by such companies; their standing and business history. Some good business men who have had no experience with investments outside a narrow line make poor advisers. Study investments yourself. Do not take the chance of losing your hard earned money by investing in some scheme which looks good on paper or promises large dividends. Deal only with responsible people who are authorized to do business in Vermont." The importance of warning the public concerning certain present bad practices in investment is emphasized by the wide publicity which is being given by the Investment Bankers' Association of America to the following schemes of fraudulent advertisers: "The reason that so many millions of dollars annually are sunk in worthless securities is that the sellers of such so-called investments make alluring promises of great profits to be derived from a few dollars. If deliberate misrepresentations and recklessly loose statements are eliminated from advertising and circular matter, get-rich-quick operators will not be able to make their fraudulent schemes pay. "In investments one does not get something for nothing any more readily than in any other branch of merchandising. Present It is entirely misleading, therefore, to use statements which will lead investors to believe this to be possible, such as the following taken from one piece of copy advertising a promotion that failed utterly: 'The best investment ever offered to the American public.' 'Immense profits on small investments.' '1,000,000 a month profits.' 'You take no chance.' 'Golden Harvest.' "Some of the other more dangerous bad practices which invariably mislead are the following: Trading on reputation or earning power of another company, such as implying that a new automobile company will be as successful as the Ford Motor Company, or using a name which sounds similar to a well known trade name to imply that the well known person or corporation is interested in the new company. Offering securities where the corporation has not a well defined financial plan calculated to carry the company through poor times, as well as good times. Giving undue importance to the name of the banks acting as trustee or registrar, and implying thereby that these banks in any way are responsible for the securities. The fee for such services paid to banks or trust companies is very small, and the services do not insure safety of securities. Offering to let people in on the ground floor. Stating that securities are as safe as Government bonds. The use, by a dealer concern, of a name which implies that it is a bank or trust company when it is not such. Using the word guarantee as applying to the security when no guaranty exists. Playing up subheads in copy on one subject matter in such a way as to make it appear that the subhead emphasizes the security, such as a guaranty on a part of an automobile by a manufacturer as implying that the stock for sale is guaranteed by that manufacturer etc. Offering to give "Liberty" bonds away with so many shares of suspicious stock." The successful investor must know what opportunities for investment are available, he must know how to distinguish between good and bad investments, and he must know how to go about making the investment which seems to him to be the most desirable. There is hardly a community in this country remote from a savings bank or a bank having a savings department. Such institutions receive on deposit small sums of money Savings which draw interest at a moderate rate. The rate Banks. varies somewhat in different banks as it is determined by the local institution. The law governing the payment of interest on savings accounts in Vermont is: Sec. 5429. A savings bank shall, immediately before making each interest payment to savings depositors, reserve from the net profits accumulated since the preceding interest payment not less than an eighth of one per cent of the average amount of deposits during such period, as a surplus fund, until such fund amounts to ten per cent of the amount Vermont's of deposits and other liabilities, except surplus. Saving Bank The accumulation toward such fund shall be set Interest Law aside and held intact and, when the fund amounts to such ten per cent, it shall thereafter be maintained and held to meet losses in its business from depreciation in securities or otherwise and, if at any time it falls below such ten per cent, reservations from net profits shall in like manner be renewed until such fund again reaches the ten per cent requirement. Sec. 5430. A savings bank may pay interest on deposits, not to exceed one and three-fourths per cent semi-annually, until half of the ten per cent fund described in the preceding section shall be accumulated, after which, so long as such accumulation does not fall below half of such ten per cent fund, the rate may be not to exceed two per cent semi-annually, until such ten per cent fund is accumulated. The trustees, so long only as such surplus fund equals or exceeds such ten per cent, MAY DECLARE, AND PAY SUCH INTEREST ON DEPOSITS AS IN THEIR JUDGMENT THE EARNINGS AND RESOURCES OF THE CORPORATION, ABOVE SUCH SURPLUS FUND, WARRANT. Sec. 5431. Savings banks shall triennially, if the net profits above the ten per cent surplus fund amount to one per cent of the deposits which have remained in such savings banks for one year then next preceding, divide the same among the depositors whose deposits have remained therein for at least one year then next preceding, in proportion to the amount of interest on such deposits which has been declared during the three years next preceding. Savings banks in Vermont may adopt by-laws for their government not inconsistent with law hence there is a slight variation in the rules regulating the payment of interest and the withdrawal of savings deposits. The following regulations taken from a bank book of a local savings bank and trust company are typical of this state: Deposits made on or before the 5th day of the month draw interest from the first, and those made after the 5th will draw interest from the first day of the following month. (If the deSavings posit is made before the 10th of January or July Bank De- it draws interest from the first of the month). Inposits and terest will be credited to depositors on the first day Interests. of January and July of each year, at the rate of 4 per cent per annum, and this interest will draw interest from the date of said credit, if not withdrawn, but no interest will be |