The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1881-01-14
THE SAVINGS BANKS.
Annual Report Of Examiner Richards.

Bank Examiner Richards, in making the
twenty-fourth annual report of the savings
banks of Maine to the Governor and Council,
says that the great ordeal to which savings
banks were subjected in 1878 and 1879 has not
boon destitute of beneficial results, it having
demonstrated to the satisfaction of managers
and depositors that moderate profits, with per-
fect security, are to be preferred to high rates
OF interest from hazardous investments and
that an ample reserved fund is of greater i'm
portance than the amount of dividends. The
conservative disposition which characterizes
the present management of the savings insti-
buttons of our State is gratifying assurance
OF the general determination to make them,
in fact, q safe depository for the savings of the
people,
There are at present fifty-fve savings banks
in active operation in the State. During 1878
the deposits decreased S3,725, 32O and during
1879 the decrease was $186,363. The past year,
on the contrary, there was an increase OF
$1,96S, 1888.
The aggregate of the reserved fund held by
me banks on November 1, 1880, amounted to
$607, 629.63.
The examiner remarks on the tendency to
decrease real estate investments and invest in
public funds and railroad bonds as more easily
converted into cash. The propriety of invest
ing in railroad stocks is, at least questionable.
Some banks continue to make loans on names
alone. Although no losses have occurred from
such loans, it is a violation of the law to
which the attention of the bank officers has
been called.
The greatsincrease of deposits and the diff
Guilty i'll making safe and more remunerative
Investments itafa I'd ha tap,
deposltlng OF large sums in national banks at
very low rate of interest for monthly bal
ances.
One bank has made dividend eff per cent,
- - dividend Of per cent, a dividend Of
IS dividend of 4. One has made no divi-
dend, having been enjoined.
The attention of the Legislature is called to
the fact that the present State tax on the
banks amounts to at least 20 per cent of the
revenue of the banks
The Bucksport, Hartland and North Arson
banks have practically closed their affairs dur
ing the year. October Sd the Bucksport bank
voted final dividend of III per cent, making
an aggregate of III per cent paid the depositors
in settlement. The North Arson bank voted
to surrender its charter last January. The
Hartland bank reported November LIST the
amount due depositors to be $14, with cash in
bank of $14.
The Newport and Scion banks are in the
hands OF receivers. 1t is estimated that the
Newport bank will finally pay depostors from
% to 70 per cent and the Scion bank 100 per
cent
On account of the depreciation of values in
1877 and 1873, Is banks awaited themselves of
the relief afforded by law, of reducing their
deposit accounts. Seven of these, namely the
Androscoggin County, Auburn, Bridgton,
Calais, Dexter, Franklin County and Skowhe-
gan, have been able to partially or wholly re-
store the amount so reduced to the credit of
depositors.
The injunction granted to the Wiscasset
bank, to restrain the payment of so per cent of
It's deposits, has been continued. The bank
mas loans OF $4,000 in the town of yNiscasset,
the security of which is rendered uncertain by
the financial condition of the town. With a
low estimate of its assets the bank has sur
plus above liabilities of $12,67O.40, and with
the earnings OF another year it can pay its de-
positors dollar for dollar without realizing
from its loans on mortgages of real estate
The two banks of discount, the Eastern and
Mercantile of Bangor, have surrendered their
charters, are redeeming outstanding circula-
ton, and will soon make final settlement.
In closing Mr.. Richards reminds the bank
officers that their efforts should be directed to
the disposal of such real estate as they have
been obliged to acquire by foreclosure. The
present activity in business and the great ap-
probation of values affords savings banks an
opportunity to prepare for the reaction which
is not unlikely to follow. The safest securities
should be obtained, income should be regarded
OF secondary Importance The highest salts
faction is expressed with the general manage
ment OF the savings banks.