The Portland daily press., 1888-12-01


assets; that dividends should be declared
on the basis Of what the highest credit will
pay for the use Of money, and not what
lower credit offers for not only It's use but
the risk Of its loss"
Mr.. Richards throws In In this connection
few judlclous words on the subject Of the
tendency Of speculation at the present time
Particular periods" he says, develop dis
tinet phases Of speculation, and we are now
passing through an era where speculation ls
based largely upon new creations Of So
called properties, capitalized with little mon
ey diluted in large bodies Of water. Many Of
these present a most alluring promise Of
success. In exceptional instances this aque-
Gus capital will perhaps materialize, and the
stock become dividend paying. In such
cases the shares acquire an intrinsic value 10
the holder the same as worthless acre on
some outlying point, which subsequently, be-
comes fashionable resort, may make the
fisherman, whose home 10 has been, legitl-
mate owner Of valuable property. During
this transformation period such securities
have no attractions for the conservative in
yestor OF trust funds; but II the scheme has
produced an income bearing property, sub
stantlal and permanent, whatever may have
been the constituents Of the original capital,
y Is no longer speculation, and the securi-
OF a corporation whose capital was fully
paid in cash."
The managers Of savings institutions will
be interested in Mr.. Richards recommends
tion In regard to the law relating to special
dividends Sec. log, chap. AZ r. 81, which
provides that when the reserved fund
amounts to five per cent. OF the average
amount Of deposits for the six months pre-
vious to declaring dividend all net profits,
not otherwise divided. thereafter made bv
years ratably among the deposltors Of one
two and three years standing, as extra div
ldends." Mr.. Richards says this Is unprac-
ticable and ought TO be repealed, giving
therefor good reasons.
The record Of the Maine banks Is one to be
proud of certainly. During the last nine
years the number of deposItors In the saw
ings banks of this State has increased from
lI5,445 70 124 ,562, and the amount Of deposits
from S2O970, 1902 10 S40,969, ,G63O5. At the
commencement of 1880 the surplus above
Liabilities was S1.057, 1862; II now stands at
So03l ;4gl IA. In 1880 the reserved fund was
S5l9, ,72l.95. or q per cent Of the deposits !;
and now 1t Is 81 ,651 JAP 40 or more than
per cent OF the deposits. In 1880 the larger
portion Of the assets were inconvertible. and
Ss66,375, or nearly One-twentieth Of the
MhOic, WcAo IN ucIdult. IOudy majority oil
the assets can be converted into cash 10
day In any Of the money eenters Of the eoun-
try, and but sos, ,4l0, or less than one seven
hundredth OF the whole are In default Of In
terest. In nine years the savings banks
have paid into the State treasury, for tax on
deposits, 81 l,876, ,992. IS; and during that time
have paid dividends to their depositOrs the
aggregate Of which Is 11,I77, ,9S30l. 20 the
faithful and efficient officers Of the institu-
tions Mr.. Richards renders the merited
praise.
large and valuable portion Of the report
Is devoted to Loan and Building Associa-
tions. During the past year the number Of
associations has increased to fifteen by the
organic ations Of the following five associa-
tions: the Casco Of Portland. the OldtOwn,
the Roekland. the Wiscasset, and the Bruins
wick. Each Of these localities seemed TO
offer favorable field for the operation OF a
Loan and Building Association and eertih-
Gates Of authorization were accordingly
issued. Below Is given 4 statement OF the
aggregate standing and condition Of the
Loan and Building Associations Of Maine.
Nov. 1st IS8S