The Portland daily press., 1882-12-12
Maine Savings Banks.

Name Savings Banks.
The report of Mr.. Fred E. Richards, State
Bank Examiner, is at hand, and shows that
the Savings Banks of Maine are in prosper
Gus condition. The amount of deposits, we
are told, has increased, the new investments
have been wisely made, and very many of
the securities owned, upon which the pay
ment of dividends or interest was suspended
some years ago, have during the past twelve
months become dividend-paying stocks. The
only possible loss of consequence sustained
during the year is to those banks 50 unfortu-
nate as to be depositors in the Pacific Ma
tional Bank of Boston, and it is doubtful if
any loss be eventually incurred in this trans
action. The securities held by the thirteen
Savings Banks whose deposit accounts were
reduced by decree Of Court during the years
1877 and 1878 have, the Examiner saws. so
much appreciated in value that nearly all of
these banks have made partial or final spec
ial dividends within the last two years TO the
depesitors whose accounts were so reduced.
he reports that, with the exception Of infer
SSet ~ oSNiAAo PAObdOlC Ill Iu6 emu NtfV
little loss will be sustained by those interest
ed in these banks at the time of the redue-
ton. In the case of the Wiscasset Bank.
enjoined in 1872 the injunction was dis
missed last April, and the Bank. he saws
now merits and receives the complete conf.
dence OF its depositors. The affairs of two
banks are yet in the hands of receivers. The
Newport Bank and the Solen Bank. II is
estimated that the first named will nav TX
per cent. to depositors, and the last named
100 per cent. In the first case several suits
are pending and an early settlement of affairs
is not probable. In the case Of the Solon
Bank there is no litigation attending settle
nent, and the final dividend will soon be de-
clared.
The increase of deposits is marked. Tn
1878 the deposits decreased S., 725. 800 and
in 1879 further decreased S1S6. 1868. In 1880
the deposits increased $1,96S, 1S3; in 1881
the increase was $2.90O,1S0; from Nov. 7
1881 10 Nov. 1, 1882 the increase has been
% VIZ S34- The amount now on deposit is
$29.503,SS9. The number of depositors dur
ing the year has increased 1912, the present
number being 95,4S7, of which 76.602 are
depostors OF sums not exceeding $500 each.
The average amount to the credit of each
depositor is $30SS7. The reserved fund is
sos, 1898, an increase during the last twelve
months of SS7,S77 The dividends declared
range rom 81 to per cent, thirty-fiye of the
hfty-hve banks paying four per cent.
Inc Examiner recommends the modifica-
ton OF the strict law of 1877 rigidly limiting
REIMBURSEMENT of deposits, arguing that the
Statute was enacted while the country was
suffering from the financial panic of 1879
and that It's provisions are now unnecessari-
~ rigid. In this recommendation we are
not prepared to join. The restrictive statute
may to some extent interfere with sound in
Vestments, but it has proved a strong shield
to those investors who can afford to take no
risks, and who prefer small and certain re-
turns to promising hazards If error be
made it is better to make it on the side of
caution.
The Examiner also suggests a reduction
OF the State tax. at the time the one per
cent. tax was imposed investments yielded
seven and eight per cent. But the interest
IS now no more than four per cent. So the
tax now is much more onerous. One fourth
OF the gross earnings of depositors is appro-
priated to The State. The complaint seems
well taken, and the Examiner makes peril
nent suggestion when he urges that reas-
enable reduction in the rate of taxation will
increase rather than diminish the aggresa ate
amount of revenue, while policy less liber-
al will have tendency to transfer these de-
posts to the Savings institutions of other
States, or to distribute them. among the &c.
900 depositors, completely beyond the reach
of taxation.