The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1870-01-04

! POR1'LA.ND.
Tuesday Morning, January 4 1870.
Banking and Insurance In Maine.

REPORI OF THE STATE EXAMINER, &
The second annual report of Mr. Paine en-
braces many interesting statements. 1t ap-
pears that only the Eastern, Mercantile and
Veazie banks of Bangor and the Lime Rock
and North of Rockland, whose charters ex-
pire on the 1st of October next, are now do
ing business under authority of the State.
The circulation of State banks now outstand-
Ing is S102,262, The receivers Of the Ameri-
can Bank, Hallowell, are "getting on" and
report that the amount of claims proved is
S43,714,26, while the cash assets on hand
amount to only S13,457,39
Mr.. Paine argues vigorously for the repeal
of the existing State banking law. Profound
ly impressed with the advantages arising
from the National Banking system, he would
have State banks deprived of the privilege of
issuing currency. The other functions of a
bank can be performed by associations of cap
italists without much legislative control, a
free banking system, having all the powers of
banks except that of issuing money, being
suggested as means of their doing so. On
this point the report says:
The system proposed will serge TO supply a
want found very generally to exist in differ
ent parts OF the State from lack of National
Bank facilities tor discounts, exchange and
temporary deposits, and to meet which, re-
sort has been had to the procuring very i'm
properly, OF Savings Bank charters. 1t is
hoped that for this reason, if no other, some
such provision will be made as is now sug-
gested.
The Eyamipar Gn.lo in ba 1ao;cion
Of the Supreme Court upholding the validity
OF national tax on the State bank circula-
tion an additional reason for abandoning the
State banks.
There is nothing that the people of modern
times look upon with more complacency than
their savings banks. 1t was in 177S that
the first one was established in Hamburg, but
it was not till 1916 that the institution was
naturalized in America. Through the infu-
ence of Hon. VIM. Willis the third savings
bank on this side of the Atlantic was estab-
lished in this city. Now there are thirty-seven
banks in the State, charters having been
granted to those at Brewer, Bridgton, East
port, Machias, Bangor, Skowhegan, Solon,
Watervile and West Waterville during the
year. These banks have nearly forty thou
sand depositors, while the gross deposits
amount to nearly eleven million dollars, being
an increase of $2,sO7 900 during the past
year and of 1924, 900 during the last two
years-very nearly 100 per cent. for the last
period. These deposits amount to over a
million and a quarter more than the entire
banking capital of Maine, State and National.
This exhibit will surprise perso ons who stren-
uously contend that "the rich are growing
richer and the poor poorer" especially if they
examine another part of the report, where
Mr.. Paine, speaking OF the impolicy of tax
ing savings banks and deposits, shows that,
from actual examination of deposits of over
$1,000, it appears that there is "almost an en-
tire exclusion of men of wealth from the
list of depositors."
The provision of the new Savings Bank
law forbidding loans on the security of names
alone has met with considerable opposition
in some quarters, but its wisdom is generally
commended.
The report says that there were at the be-
ginning of the year AZ insurance companies
doing business under the laws of the State.
During the year three small companies have
discontinued their business, course which
the Examiner commends to "all small COM
panies having the good of their patrons in
view." The following is statement of the
business of foreign companies:
The whole number of Foreign Fire and
and Fire Marine Companies uOing
business in Maine Is. ............ -, 67
Number OF policies undsrwritten in
Maine in 1865. Observation-Disclosures. 1854
Amount. $52 613, ,75S 90
Number of policies outstanding Janu-
ary !, Lees. ........................... 2O,5O1
amonnt ............... S39, ,452, ,746 90
1enIums received during the year. $6i9,0O2 81
Losses talu uuriog the year S339, 906 "
Ratio of losses TO premiums, 50 per ct
Ratio of losses to risks, 64s per cent.
Lie Companies doing business in Me-. 80
Number Of policies January l. 1850 10 75c