Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-01-26
The Report OF the STATE Bank Examiner.

we commend TO the careful attCn-
ton of our readers, the able and com
prehensive report of State Bank Exam
lner Timberlake, a quite full abstract
of which is published elsewhere in jhis
issue. The whole report is character
and clearness of statement. The show
ing it makes for the various financed
institutions that come under its 5a
pervision is most encouraging, ana
shows that wise and conservative
spirit has prevailed in the management
of their affairs. Notwithstanding the
fact of a decrease Of four in the total
number of these institutions in 1874.
there was during the year an increasa
Of 81, 793, 0S4.35 in their aggregate assets
During sihe same period they paid 10
their depositors and stockholders s.
$40, 1921 in interest and dividends.
Naturally enough considerable interest
attaches to The Luhec Savings Bank
case, the facts connected With which
are fully and clearly stated by MI.
Timberlake. 1t is evident that to him
is due the credit for unearthing the
condition of affairs in this institution
and for taking prompt measures f0H
the protection Of its depositors
In this connection Mr.. Timberlakc re-
fers to the fact that the developments
of the Lubec case were the occasion of
some criticism of the existing laws rel
alive to savings banks, and the method
of examining our state financial insti-
tutions, and discusses the whole mat
ter frankly and fairly.
AS regards the suggestion that some
provision should be made for verifying
the depositors' accounts Mr.. Timber
lake calls attention to the fact that As
far back as 1856 the then bank examin-
or, Hon. f. F. Richards, urged the
passage of a law requiring this to be
done by the trustees, and that each of
his successors has. in turn. renewed
this recommendation. He well says,
however that it would be utterly IN
practical for the banking department
TO attempt these notifications With any
clerical force the State could consis-
tently provide for the purpose. There
are now 1888 individual accounts on
the books of ehe savings banks of the
State, and a corresponding number OF
depositors' books outstanding. The
verihcation could be made only as de-
positors would voluntarily bring in
their books, and in any one of the
larger banks where deposits number
from 10000 to 10000, it would be nece+'
sary to continue the work over a period
of at least several months" The fur
Their fact is noted that depositors arc
often widely scattered, and it would
be exceedingly difficult if not impos
sible to reach all of them by any form
of notification. Mr.. Timberlake calls
attention to the fact that, in major
ity of our savings banks. deposit0rs
books are handled by two on more per
sons, so that irregularities could only
occur as the result OF such 4 collision
between such persons. Moreover this
handling of depositors' books and the
constant comparison with the deposi-
tors ledger by different bank employees is
in itself an excellent form vcrilication
1t is conservative estimate to say
that out of the lG7S79 depositors ac-
counts in the banks of the State more
than 140. eco are being constantly Veri-
lied in this way
There is a splendid tribute 10 the
high character and sterling integrity
that has characterized the manage
ment of Maine savings institutions in
the fact that the loss to the depositors
in the Lubec Savings Bank whatever it
may be, is the only defaleation that DC
CURED out of more than 5000, 000, 600 that
have been handled and dsbursed by
them during the past twenty five
years.
Mr.. Timberlake makes a strong and
able argument-the best we have seen
nywhere-against the proposed estab-
lishment by the national government
Of a postal savings system. We PIE
sent this feature of his report in full
in our abstract. and commend it to the
careful attention of our readers.
Such report as this contains facts,
figures and recommendation of pecu-
liar interest and value. and merits
the careful attention of all thoughtful
citizens, especially those who feel a
pride in keeping in touch with The
business life of the State.
The intelligent grasp and clearnes4
of statement which characterizes th4
report from beginning To end, VIII
strongly confirm the popular estima t.
of Mr. Timberlale as an industrious
and clear headed State official