Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1883-01-30
MAINE SAVINGS BANKS.

The report OF Mr. Fred f. Richards,
State Bank Examiner, Is at hand, and
shows that the Savings Banks of Maine
are In prosperous 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 payment or dividends or
interest was suspended some years ago,
have during the past twelve months be-
come dividend-paying stocks. The only
possible loss OF consequence sustained dur
ing the year Is 10 those banks so unfortu-
nate a. TO be deposltors in the Pacinc Na-
tional Bank OF Boston, and 1t is doubtful
II any loss be eventually incurred in this
transaction. The securities held by the
thirteen Savings Banks whose deposits ac-
counts were reduced by decree OF Court
during the years 1877 and 1878 have, the
Examiner says, SO much appreciated IN
value that nearly all of these banks have
made partial or final special dividends
within the last two years to the deposit
ors whose accounts were so reduced.
He reports that, with the exception o! in-
terest, It seems probable that IN the end
very little loss will be sustained by those
Interested in these banks at the time or the
reduction.
In the case Of the Wiscasset Bank, en-
Joined In 1879, the Injunction was dismiss
Ell last April, and the Bank, he says, now
merit, and receives the complete couh-
deuce of it, deposltors. The affairs OF two
banks are yet In the hands Of receivers,
the Newport Bank and the Scion Bank. u
+ estimated that the first named will pay
i
named 100 per cent. In the first case sew
eral suits are pending and an early settle
ment of affairs i not probable. In the case
of the Scion Bank there is no litigation at
tending settlement and the !inal dividend
will soon be declared.
The increase of deposits Is marked. In
| 1873 the deposits decreased S3,i2J, 32O, ana
| in 1879 further decreased sleG,363. In
1850 the deposits increased sl,9Gs, loj; IN
| 1881 the increase was s., 900, $50; from No.
yember !, 1881, to November !, .sS2, the
| increase has been 81, 029, 1884. The amount
now on deposit is S29, j03,ss9. The num-
| Der OF deposi.ors during the year has IN
ceased 1912, the present number OeinS
o. 49,. q which 1862 are depositorS Of
sun,s not exceeding $500 each The aver
| .ge a mount to The credit of each depositor
| Ia s30ss7. The reserved fund Is sos, S93,
an Increase during the last twelve months
of ss7.S77. The dividends declared
range from 3 l.2 to 9 per cent, thirtY-hVe
of the fifty-fve banks paying Iouf per
cent. ma
The Examiner recommends the medlk-
cation OF the strict law OF 1877 rgidly Inn
ting the investment of deposits, arguing
that the statute was enacted while the
country was suffering f.om the hnancia!
manic of 1873. and that is provisions are
now unnecessarily rigid. In TINS recon-
mendation we are not prepared 20 JOIN.
The restrictive statute may to soIae eX-
tent interfere with sound investments, Dat
II has proved a strong shield to those lp'
d vestors who can afford TO take no risks,
ana WHO prefer small and certain returns
l "a xrouising hazards. II error be made,
| n a better 70 make II on the side or eau
ton.
The Examiner also suggests reduction
of the state tax. At the time the one per
cent tax was imposed investments yielueu
seven and eight per cent. But the ilSetess
is now no more than four per cent 30 tus
tax now Is much more onerous. one-iourtN
OF the gross earnings OF depositors ~
propriated TO the State. The complalu'
seems well taken, and the Examiner MAKE
pertinent suggestion when he urges tna'
reasonable reduction in the rate OF taxa
tiou will increase rather than diminish the
| aggregate amount of revenue, while po'
CIV less liberal will have tendency 20
- nsfer these deposits to the savings III
IL, rtions OF other States, or to distribute
,bom among the 10000 depositors,. com
n r beyond the reach OF taxation
i IVbi1