Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-01-31
The SAVINGS BARK BILL.
Extracts from Official Reports and Recon-
mendations.
( From Governor Cieaves' Adore.

From Governor Cleayes' Address,
by the report of the State bank exam
incr it appears that more than half of the
entire deposits are invested outside of the
State. While these investments are safe.
AMI afford ample security TO dcpostors, it is
TO be regretted that so large portion of the
peoples money is invested in securities be-
yond our borders. If We are to have CON
tinued prosperity, if we are to reach the
great possibilities in agriculture and indus
trial growth that by continued effort await
us, we should create public sentiment
that v i'll resist the flow of our capital to
other fields. The earnest cooperation of
our savings institutions in steadily encour-
aging investments at home, where il can be
done with safety to the depositor is Ger
tainly desirable,
From the State Bank Examiners Report
of 1898.
II am firm believer in home invest
ments so far as practicable, and believe it
would Q for the interests of some of our
institutions if they would give this subject
more attention.
One of the arguments in favor of home
securities is the easy facilities afforded for
investigating the conditions surrounding
them; the amount of the indebtedness the
value of the property bonded the pros
poets for doing a successful business. and
other facts that 70 far towards determining
what constitutes d desirable aud SAT- invest
mcnt.
The principal object urged is the fact
that majority If our home bonis only paw
. per cent interest while very many for
eigu investments promise & per cent or
more, and in orier to pay deposisors I per
cent dividends tie banks cannot afford to
purchase ) per cent securities.
of course it is perfectly apparent that in
order to pay per cent dividends, 4 bank
nlnst earn at least ) IL per cent. but the
question of dividend Is secondary TO the
question of security.
1t is often difficult matter to ascertain
all the conditions affecting the foreign bon,ls
and it is frequently the case that banks
have 10 depend largely upon the statements
of Interested parties, responsible or other
wise, and in some cases have afterwards
found they were Inisinformed at the time
of purchase.
another question that enters into this
subject - the Developing of oar home in
'iustries. II a good part of the money that
has gone South and Yves; within the last
few years could have been kept at homo
and Hsed to develop our own industries and
resources it would have been of great AL
vantage to our own State and aIso in err.
tain instances, to the banks investing the
same.
The question of secHrity being equal give
our Maine railroads and corporations the
first right to our m9Hcy.
From the Bank Commissioners Report pf
Scw Hampshire, lsai.l
In the last report this board call,,! at |
tention to the rate of taxation of savings
deposits in this state, in comparison with i
the rite of taxation on savings bank leI,os- /
liz IN other New England states and IN New 4
York. The rate in New Hampshire is one .
per cent; in Maine, three-fourtiis of one /
psr cent; in Massae 'Iusetts, one-half oS
INC rsr cent. with certain exemptions on
deposits invested within the state in Con /
nertient. one fourth of one per cent, with .
some exemptions: in Rhode island, one /
fourth of one Per cent: and in New York
savings deposits are wholly exempt from
taxation Ii the tax were reduced in tins |
state, there wogiI b. less inriinatsou on the /
part of the banks TO see high rate invest /
nenis at distance from home. The one
per cent tax exactesI by the state. and the
FIVE per cent dividends demanded by de- +
positsrs, have compelled the banks TO 20 4
West for Investments: for SIX per cent. /
interest rate in New Hampshire left nothing