Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-01-10
RINK ANn INSURANCE REPORT.

| The Examiner OF BANKS anu lisulai
COMPANIES has divided his annual report
into three parts, The first division rs Ia
relation to banks of discount. These are
nearly extinct only five now exist and
do business under State charters, and
their charters expire on the first day OF
! October next. The affairs of the Ameri-
can bank at Halowell will soon be closed
If is thought. The amount of cash assets
on hand is 3d. 80; the amount OF
claims proved and allowed is s4S,7l4,26,
The circulation of the State banks now
outstanding is $l02, 1862. The Examiner
is of opinion that the old bank system had
better die and never be revived the ma
ttionai banking system is safer and better.
He would have the old bank law uncon-
ditionally repealed. At the same time he
would favor a free banking system, hav-
inc all the powers of banks except to
issue bills as money. 1t might supply
want which national banks fail to supply,
to meet which many savings banks have
very improperly been established.
The second division, in relation to saw
inrs banks, commences with brief his
torv of these institutions. Their begin
ming was very small The first one in
this State was opened in 1919, at Portland,
and closed in 1888 by failure. The sue
cess of the system has been beyond pre-
cedent. Nine new savings banks have
been started in our State the last year,
making the whole number in the State
The gross amount of de-
posts is $40, s39, $685., the number of
depositors 80, 527. The increase Of de-
posts the last year has been nearly three
the last two years more
than five millions. No losses have oc-
Cured during the last two years. The
amount of deposits in the savings banks
is larger than the entire capital of all the
National and State banks in the State by
81 ,309, 955.26. The new law operates
we'll but needs some slight amendments.
Some dissatisfaction is expressed with
reference to the provision excluding loans
on the security Of names alone, but the
Examiner thipks the provision is good
one, and necessary for the security OF the
institution. He argues at some length
against the taxation of deposits, but
thinks property bought for investment by
banks should be taxed. Taxation of de-
posts would dissipate the fund he thinks.
and as it is mostly made up of small sums
from poor people and funds in trust he
would not tax it. Complete tables show
ing the condition of the banks are an
nexed.
The third division takes up the subject
of Insurance. At the commencement of
the year there were forty-two companies
in the State doing business under STATE
charters: one mutual life, two stock
marine, two mutual marine, one stock fire
marine, and thirty-six mutual fire, of
which twenty were town companies and
sixteen general. During the year the
Eastern Insurance Company at Bangor
has commenced business, the General
Mutual at Hallowell, and Maine Mutual
1t Gorham have retired and discontinued
business. There are siNty-seyen Fire and
Fire Marine Companies doing business in
Maine, of which very full statistics of their
operations are given in the report, show
ing that Maine is q good field for them,
the losses in proportion to risks being
much less than in several States compared.
The Examiner proposes a change in the
laws in relation to insurance, which he
says are very defective. His plan is not
stated fully. but it is intended to guard
against deception by unauthorized agents
and irresponsible companies. 1t is the
same as suggested in his report last year,
looking to the establishment of special
The taxation of foreign com
panies doing business in the State is ad
vocated. The Examiner says they are not
charitable but money making institutions,
and ought to be taxed as much as rail
reading and telegraphing. They cannot
claim exemption on account of any par
tcular hazard, for their profits are as GER
tain as those of the common carrier or
banker. No other business shows such
accumulation of capital, pays more liberal
salaries, mades better dividends, or has
so large a margin of profits and income
to advertise its merits to the public CON
fidence. He therefore. thinks there is no
Justice in eXempting them from taxation
and says they are already taxed in most
of the leading States. lie therefore re-
that tax of two per cent. on
all premiums received in Maine by COM
panies of other States and countries be
required to be paid into our State Trca-
sury. From this he thinks a handsome
revenue would be obtained. In some
States retaliatory laws exist, but they
would have no influence upon us as we
have but one company that does business
in other States. The principle of nom
forfeiture of life policies is being adopted
I -.