Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-11-20
Maine Savings Banks.

| A recent editorial in the Maine
Farmer referring to the charges against
the treasurer of the Lubec Savings
| Bank, and urging the need of closer
examination into the liabilities of saw
ings banks as well as into their assets,
| has been the occasion Of considerable
| newspaper comment during the past
! few days. The Farmer specially urg
gcs the importance OF a verification of
4 the depositors books. We do not
/ imagine that the Farmer, or any other
Maine paper, would seriously urge the
| putting of this labor, involving an ex-
animation of nearly 10000 separate ac-
counts, upon the State bank examiner,
an official who now has quite as much
work as any one man can we'll attend
to. But rather the passage of a law
compelling the trustees of savings
banks to make such examinations and
report the results TO the State bank ex-
aminer. The passage of such a law as
this has been frequently urged by our
different State bank examiners 1t
was recommended by Mr.. Richards in
1886, by Mr.. Bisbee in 1884, by Mr.
Written in 1892 and 1894, and by Mr..
Timberlake, our present efficient bank
the Legislature of Maine has never
seen fit to act upon these recommended
tons. In the case of our larger saw
inEs banks carrying many thousands
of accounts such law would occasion
large amount of additional work, and.
as the Portland Press points out, such
banks are well safe-guarded in the
fact that depOsitors' books are of
necessity handled by a number of diff
ferent employees, thus minimizing the
opportunities for fraud in connection
with them. This fact has doubtless
has also the further fact that our
Maine Savings Banks have a record for
honest and efficient management that
is not surpassed by the similar institu-
tions of any state in the union.
With the exception Of this Lubec
case, where the loss at the outside will
probably not exceed $4,000. and one in
Saco, where a 19year-Old clerk ran
away with a number of thousand dol
lars worth OF bonds-most of which. if
we remember correctly. were subse
quently recovered-and about $4,000 in
money, there has not to our knowledge.
been any misappropriation of funds
in the savings banks of Maine in a
period of rs years. This is certainly a
most creditable showing in the record
of banks that carry today, about $780,
100000 of the peoples money. 1t speaks
more eloquently than words could pos
sibly do of the sterling integrity of the
men who have been charged with the
management of their affairs, and the
efficiency of the State inspection. 1t
shows pretty conclusively that the in
terests of depositors have been we'll
looked after, and that everything has
been done that reasonably could be
done, under existing laws, to protect
them against loss. We venture the as
sertion that in scarcely any form of
investment, has the money of the.
Maine people been so secure in the last
quarter of century as it has been and
is now, in the care of our State savings
banks.
The fact must not be overlooked, in
the method employed in the eXamina-
ton of our State savings banks is sub
stantially, the one adopted by the
comptroller of the currency, for the
examination of national banks
AS We have pointed out, there have
been but two Declarations in the saw
ngs banks of this State in % years,
neither of wnich involved very. heavy
loss. If the Saco bank had recovered
none Of the securities and money stolen
by Its clerk, it would still have had
a surplus of nearly half a million dol
lars over all liabilities During the
same period there haya been at least
four defalcations in the national banks,
of the State, by none of which. how-
ever. did any patron lose a single dol
lar. $50 Fl Y ~
No matter how carefully d hank ex-
aminer may do his work, he cannot
possibly guard against all the chances
Of dishonesty, as for instance in the
case Ct the above mentioned Saco bank.
where a clerk simply gathered up
bundle of securities and cash and de-
camped with them-or. in the cases Of
the national banks to which we have
referred, where the defalcations cover
ed long series of years and were con-
csaled wish consummate skill. To have
| discovered these defalcations, in their
earlier stages. would have required q