The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-11-19
is 1T A FARCE9
maine Farmer. J

Within the past few weeks q small
saving bank, one whose deposits never
exceeded fourteen to fifteen thousand
dollars, and whose books were kept in a
country store by the trusted treasurer and
trader, has been closed by the State ex-
aminer, and, upon examination, q deficit
of twenty three thousand dollars is re-
ported. On every hand the press of the
state is crying out against the theft,
which must have extended over many
years, forgetting that twice every year
this bank, like all others of this nature,
has been examined by the State Savings
Bank examiner, in accordance with the
law, and net balance of from five to 81 K
hundred dollars found.
From the report of October, 1892, it is
seen that the total deposits were $13,-
1856. 2s, reserve fund 100000. and profits
1886. os, total of s14, 1928, with sur
plus above all liabilities of $685.. O3.
In May. 1894, we find the deposits 81, :
681. 06, reserve fund S650.00, undivided
profits 1912. AZ and bills payable $500 90,
total of $l3, 153. 46, but instead of report
ing q hCu bNA0AtSoS ~ nPpO6Ac 0o iOilOHb
Estimated market value of resources
bove liability for deposits, earned divi-
dends, State tax and bills payable
$500. 3D." In 1896 the deposits had fallen
to IS, 1885, "a and the Estimated value,
etc. to S57s.12. No greater farce was
ever presented than found In these re-
ports A half day has been given to the
examination of the accounts, loosely kept
as they have been. and then the public
assured of surplus over all liabilities, ,"
and on this report confidence has been
based. The Farmer has no thought of
Icriticising the department, but the law
and the custom. The State appropriates
$500 as salary for the examiner, $500 for
expenses. and $1,000 for clerk hire. 1t re-
hundred institutions scattered from Lu-
bee to North Berwick. Any hing more
than a cursory examination is impossible.
All is accomplished that can be until the
powers are enlarged and obligations in
creased. No criticism can hold against
any examiner unless 1t can be demon
strated that he certified to returns and
balances knowing them to be false.
The farce is in calling an examination
of the visible assets an examination of
the bank These can be, and are, care
fully counted, but to find the apparent
balance, the amount supposed to be on
the deposit books, must be taken from
the individual accounts on the ledger,
and simply represent the footings of the
treasurer. The law does not contemplate
the examination OF more than one side of
the ledger, while the examiner must cer-
tify to both. A glance will suffice to
show that, for an examination to be
complete and accurate, the deposit books
of each individual depositor must be
balanced by some person other than the
officers of the bank.
Il In 1892 the newly appointed Bank Ex-
Iaminer. MIR. Charles r. Written, in his
Iannual report, urged upon the legislature
Ithe passage of q law requiring this to be
Iflens. and in 1894 again called attention
EfD the same in the following language:
Eg.'Two years ago 1 called attention to
Sic fact that the law in some states re-
Rauires savings banks.to call in ftheir de-
EBositsbooks at stated intervals, for the
nqlrposa of having the balance verified by
some party other than the treasurer or
clerks who receive deIosits, and l would
again say | believe some such statute
shouid be enacted in this State"
me farce of calling the present visits of
the bank examiner an examination into
the financial standing of bank, may as
well cease and it be known as an exami-
nation into the assets, carrying with it
the moral effect of q visit by an acknowl
edged ACCOUNTANT, leaving the liabilities
to the honor of treasurers, where they
arc and hive been SO safely guarded, The
per cent of racreant officials is so small
that no one questions for moment the
correct ness of the detailed statement,
inade by the State officer Only in these
extremely rare cases tre the faults OF our
present system maze manifest and the
neeessItv fer additional safeguards real
izoil. Had the law required the examina-
ton once Id three or i've years, IF the
Individual deposit books, such IA loss as
has fallen upon the widows ana orphans
of Lubeo would not have been possible