The Portland daily press., 1872-01-02


circulation of State banks, all the inducement
there is for these banks to continue business
lies in the hope that Congress will permit
them to organize as national banks.
When the last annual report was made
there was a deficiency in the outstanding
claims against the American Bank of Hal
lowell of $31, 200, and to meet this claim the
Supreme Judicial Court assessed the stock
holders of the bank S42 on each share held
at the time of the injunction, and order
ed bill in equity to be brought by the Re-
ceivers to recover the amount. The bill is
now pending in the courts. There is now a
balance in the hands OF the Receivers of ST.,
6S5 &c. The assessment on 446 shares re-
main unpaid; on 130 of which it is unayaila-
BILE from bankruptcy, &C., and a large number
of the remaining shares are held out of the
State and the assessment uncollectable. The
sum now on hand will pay about 81 cents on
the dollar of the original claim, exclusive of
interest.
The other State banks have so nearly
wound up their affairs that the public have
no interest in them.
The Examiner deems the present system of
national banks as vastly superior to State in
stitutions. He believes that a return to spe-
Gle payments and the necessary adoption of
some system of redemption of bank notes,
would revive the old trouble incident thereto
with which all bankers under the old system
are but too familiar, and put into the hands
of the ''money changers" the power to create
panics and clog the wheels of business, a
state of things which cannot be accomplished
under the present system.
The banks of discount in the State are
Eastern, Mercantile, and Veazie banks of
Bangor, and Lime Rock and North banks of
Rockland.
Since the last annual report, seven new
savings banks, chartered in 1S6S-70-71, have
been organized and commenced business:
Camden Savings Bank Camden.
Hartland Savings Bank, Hartland
Fairfield Savings Bank, Kendall's Mills
Kennebpnk Savings Bank, Kepnebunk.
Pembroke Savings Bank, Pembroke.
Phillips Savings Bank, Phillips
Richmond Savings Bank, Richmond.
The Lumberman's Savings Bank at Old
town has closed business. At this date 40
savings banks are doing business in the State,
with deposits, including reserve and profits,
amounting to S22, ,7S7, 1902 45, against S16,-
597,SSS Is last year.
Accordingly there is gain in deposits
since last year Of s,1Ss,s1s 81
The increase of depositors, 15,25G
The average to each deposftor is, S32S 80
An increase in one year of Fl 81
The number of depositors who have
balance less than $500, is 1864
The amount of the same is SPAS, 1886 90
An average to each depositOr of 146 69
The number of depositors who have
balances of $500 and over, and less
than $1,000 is 6,83S
The number with balances exceeding
$1,000 is 5,00s
The amount of such deposits, 1929, 500 0G
Averaging to each depositor, ], ,22e 0t
Dividends averaging fraction less
than per cent that have been paid
during the year amounting TO 1,152, ,195 80
While the income from governments and
bonds of first class cities and towns gave from
seven to nine per cent, banks had no difficult
- Il. -
such is not the case. The earnings of some
few banks are now insufficient, after paying
the established dividends, to carry the legal
amount to re-erye. ''The result of such a
course" says the Examiner, twill be ten
dency to invest in that class of securities
which promises high rates, the payment Of
which depends upon pr0blematicdt income
| "a class of securities in which the money o.
| legitimate savings bank depositors should new
| er be invested There is a very general feel
| ing, and an expressed desire on the part O.
the managers of these institutions, that the
rate of dividends should be reduced, but ow
ing to local pride, competition, and want o
concert of action, it has not been accomplish
| ed. As remedy for this state of things, anG
| as measure of safety, there should be re
duction in the rate of dividends to be paid
and if no other way by a law of the State,
limiting regular semi-annual dividends to six
per cent. per annum, with such extra divi
dends as could be paid from the surplus earn
ings, once in five years, thus rendering
practicable to invest in safe securities the in
come of which is based on actual property.
The Examiner says that equity and tn
best interests of the banks demand that
State tax be imposed upon savings banks
The tax of one-half of one per cent. per an
mum, required to be paid to the Government
does not fall where it was intended, and ther
is no good reason why it should be longe
continued. The reserve fund should
guarded with great care, and the semi-annus
examination by the Trustees should be thol
ough and searching. The practice of som
institutions, where connected with national o
State banks, of having the Trustees and ID
rectors the same, is considered by the Exam
liner of doubtful policy.