The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-01-21

$26, 154,33s O3 $685. ,523 "a
1t will be seen that the increase in deposits
in these banks during the year ending Nov. Sd,
1875 is So, 400, 19O81 and $35 $50 % greater than
this increase of the year 1872 During the year
the number of depositors has increased 1O,O7S:
and the whole number is 81 1893, which gives an
average Of 1928 to each depositnr, oo r.
Nearly one-fourth of the deposits are loaned
on mortgages on real estate. The rule of the
banks which is adopted with general uniform
ity, limits loans on real estate to from fifty to
seventy-fve per cent of the real estimated val
ue, taking into account the nature OF the
property, the buildings and the insurance up
on the same. Upon careful inquiry of the
bank officers regarding this class of securities
they are regarded very satisfactory Loans on
cheap tenement blocks aud unstable real es-
tate, and upon excessive valuation, have been
carefully avoided
About One-ffth of the deposits are loaned to
counties, cities, towns and corporations on
collaterals, which are taken at less than their
market value. s
The Examiner says that the last three months
of the year, the gain of deposits has been small,
owing to the money stringency caused by the
panic. He says that the large deposits which
are the most unreliable, are diminishing and
that the panic has demonstrated that the first
and last depostors who trouble the banks by
Withdrawals in times of stringency are those
depositing large sums. Large depositors 90 to
the savings banks with their money when it is
not easy to make profitable investments else
where, and draw QUO whenever better invest
ments offer: thus frequently compelling banks
to call in profteble loans and even to sell valu-
able colaterals at sacrifice to answer the
Withdrawals of this class of patrons. After
wards when the banks have surplus of money
they are obliged to invest in securities at ad-
vanced rates. In view of the trouble that largo
depositors give, law providing no depositor
should deposit more than $4,000 would obvate
it. He recommends the passage of a law au-
tnorizing savings banks to require sixty days
notice when sums greater than $1,000 are de-
manded.
In regard to the rate of interest charpad on
loans. the Examiner reports that it varies from
six to ten per cent, aud the average of the
whole loan for the year is fraction less than
eight per cent.
In speaking of the investments of the saw.
ings banks, he says the amount of United
States bonds, railroad bonds and stocks are less
than last year, while the amount of Maine and
other State and county and municipal bonds
has increased. Despite the explicit statute of
1869, prohibiting banks from loaning on names
alone, twenty three banks have thus loaned
$35S, 1924, and the greater part of this sum
too, since the enactment of the law. No losses
however, have arisen from such loans. But
while the Examiner does not by any means ap-
prove of this kind of investment, he expresses
the opinion that it is preferable to the large
class of investments in the West, where the
corporate Indebtedness of the people is so
great and particularly railroad securities in
that section, of which little is known except
that those that were regarded safe are not paw
ing their interest and stand in the market at
fifty cents on the dollar. If there is no other
means of investment, except such bonds, the
Examiner thinks it well to loan certain part
OF the money on names In view of the in