Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1881-02-11
The BANKS PAY 20 PRR CENT OF THEIR
EARNINGS INTO THE SrAIE TREASURY
EVERY YEAR.

The State Bank Examiner, Hon. Fred f.
Richards of Camden. has presented the
twenty-four,h annual report of his department.
in conformity to the law of the State. 1t is a
voluminons and interesting document of
which we can give but brief synopsis
Each of the State banking institutions has
been visited during the year. and careful
and thorough examination made, a trial bal
ance taken, the bonds. stocks, notes. cash,
and other securities examined. and the books
proved to exactly correspond with these
vouchers.
| BANKS OF DIsCoUNr.
There are but two banks of this character
acting under authority Of the State, whose
affairs are not entirely closed. viz. : the East
ern and Mercantile banks of Bangor Both
of these have surrendered their charters, and
are redeeming the outstanding circulation,
and will soon make a final settlement.
| SAVINGS BANKS.
There are three savings banks that have
practically closed their affairs during the
wear, viz: the Bucksport, Hartland, and
North Anson. October Sd, the receiver of the
Bucksport Savings Bank made a final divi-
dend of III per cent. making an aggregate
ment. The trustees of the North Anson Saw
ings Bank. in October 1879. voted a final divi-
dend of its funds, and, in January last, voted
to surrender its charter. The treasurer of
the IIartland Savings Bank November lst,
| reported the amount due depositors to be
Sl4 and cash on hand Sl4.
There are two banks whose affairs are be-
ing settled by receivers-the Newport and
Solon banks. 1t is estimated that there will
finally be paid dcpositors, by the first 65 to 20
per cent, and by the latter 100 per cent.
BANks WITH DEPosIr Accounts REDucEp.
| On account of the depreciation of values
during the years Of 1877 and 1878. thirteen
savings banks availed themselves of the re-
lief afforded by law, of reducing their deposit
account Seven of these have already been
able to wholly or partially restore the
amount SO reduced. and the indications are
that. within short time. nearly all the
banks, whose deposit accounts were reduced,
will be able to restore the full amount to the
credit Of their depositors.
| On account of the peculiar financial con-
dition Of the town, an injunction granted
July Sd. by Judge Danforth. restraining pay
ment to depositors in the Wiscasset Savings
Bank. of more than 20 per cent of the
amount Of their deposits. With the estimated
value of the assets of this bank, which,
| upon careful examination, is regarded suf-
| fcientlv low. the bank has a surplus, above
| all liabilities, of Sl2,6G.40, and with the
earnings of another year, it can pay its de-
positors dollar for dollar. without realizing
| from its loan ON mortgages of real estate.
DEPOSITS.
| During the year 1878. the deposits of the
savings banks decreased So 725 800 co. In
| 1879. the decrease was Sls6, 363 90. The
present year there has been net increase of
| 81 ,3Gs. 1880.
RESERVED FUND.
The aggregate of the reserved fund held
| by the banks November Sd. 1879, was S5l9.-
| 12I.9s November lst. 1880. it amounted to
| s6O7 ,629.G3. The safety of depositors is so
dependent upon this safe guard to secure
against losses. that the Examiner recon-
mends the law be amended. so that this fund
shall amount TO ten per cent. instead Of five
per cent. Of the assets of the bank. before an
extra dividend be declared.
INVESTMENTS.
| While MORTGAGES of real estate have ever
been regarded as the hest possible security,
the experience Of bank officers has demon
strated. to their satisfaction, that the ayaila-
bility of money loaned on real estate mort
! cages. meet at ali tunes,
the demands of depositors whose deposits by
| them regarded a loan on call. The
mortgage loans have. in consequence, been
gradually reduced. and investments in Sc
curites more easily converted to cash have
| been made.
| The proprety of investing the deposits Of
savings banks in railroad stocks, the Exam
| ner thinks is. at least, questionable. Some
of the banks continue to make loans on names
alone. Although no losses have been re-
ported from such loans. it is. nevertheless. a
violation of the law. TO which the attention
of the officers of such banks has already
been called The Examiner hopes that
these loans will soon be collected. and no
tiated.
DIVIDENDS.
| The fftv-five savings banks have made div
| idends as follows: one, 6 per cent; nineteen.
; per cent; one. 81 per cent: twelve, 4
1-2 per cent. five, IA per cent; sixteen
per cent. One has made no dividend, hay-
! ing been enjoined.
STATE TAN
! The bonds issued by Municipalities and
railroads years ago. bearing high rates Of
interest. form an important factor in the re-
sources of the banks. These securities are
rapidly maturing. and investments at much
lower rates Of interest only, are possible
The earnings Of the hanks must Of necessity,
grow correspondingly less. year by year
Bonds, of sufficiently unquestionable value
to be held by savings banks, bearing I.2
per cent interest, can only be purchased at
premium. and the present State tax.
assessed and collected without expense to the
State, must amount to, at least, 90 per cent
I iof sba cd -. =.
vestments as are afforded the banks at the
| present time.
AGGREGATE STATEMENT, Nov. /, 1880.