Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-01-26

This gain is nearly twice that for The
preceding year.
out of a total of SO dcpositors. 100
SG5 have $500 or less standing to the credit
of each.
The average amount now standing to
the credit of depositors is $}al.ol. an in
crease of $264 over that of 1886
The amount of withdrawals during the
year was $40 i25. 527.337. and the amount de
posted, including dividends credited.
$l2.554. S5SS2
Owing to the general appreciation in
| the value of securities, the larger amount
of Investments within the State and in
| government bonds, there has been but Il
slight increase in the amount OF taxes
paid to the State over that Of 1876,
The reduction in the premium account.
| although small. is highly satisfactory.
considering the fact that the banks have
PAID premium on q large portion of the
securities purchased during the year,
A comparative table showing rates
and amount of dividends in lS9, and
those paid in 1886 reveals an increase
of S35, 44l.61 in the amount of earnings
distributed among the dcpositors over
that of last year. The average rate of
| dividends paid the present year has
been 3.61, while that for 1896 was 81.
This gradual reduction. from year to
year. in the rate of dividends paid, is
the necessary result of the gradual de
crease i'll the earning capacity OF IN
vestment money. This rate is fully as
nigh as the present earnings viii war
rant the banks in paying, and higher
than can be maintained under the ex-
listing conditions of the money market.
In many cases il already seems adVis
able for the banks to make still further
reductions from their present rates.
1t has always been the policy OF this
department to encourage a reduction
in these rates until there is a margin
of profits undistributed from each
dividend.
About So, 1873. 7SS.16, or more than A.
per cent. Of the present assets of our
savings banks. are invested and held
within the State This is a large in
crease rom any previous year, ana
shows that our banking institutions
are investing their funds more and
more in our own state and its indus
tries, and that they are furnishing
much of the capital used in trans1cting
local business.
THE LUBEC SAVINGS BANK.
Mr.. Timberlake states very fully the
facts connected with the I.ubec Savings
Bank, He says:
The closing Of Lubec Savings Bank.
J.. II
months later by the report of a short
age in the treasurer's accounts. has Iel
To d general discussion Of the laws
under which savings banks in this
State are especially of the
present methods Of supervision and eX-
amination-a question that directly
affects the property interests of more
than - per cent. of our people. In con
slderin9 this matter one should I'M
del stand the present methods Of MAX
inc examinations, the authority given
the examiner and the duties placed hY
statute upon the trustees. The same
general mode of procedure is adopted
in making examinations and in super
Nising the affairs of all the ditfeTcn:
Institutions throughout the STATE, |
win, therefore, outline the course pur-
sued by this department with regard
to this bank. and at the same time state
briefly the way in which its affairs
We're conducted by its treasurer and
trustees.
As proceedings are pending agajnst
the former treasurer ,pf the bank for
the embezzlement of its funds. onlr
such facts will he stated as are beyond
dispute and would be readily apparent
IL anYnn" from an examination of its
books
on the 19th day of June. 1896, | first
visited this institution FOR the purpose
IF making the annual examination re
quired by law. The system of huok
keeping in use was found to be some
W hat crude, although sufficient in de-
tail, perhaps. for an institution tn"
size of this. The weekly trial balance.
required by law and kept by all say
nes banks. was as satisfactory in form
as that found in a majority of tn
other institutions in the State. \ book
of entry was used, in which the tre as
urer was supposed to record all receipts
and disbursements. The same book
also contained what purported to H.
the individual accounts of the several
depositors. 1t appeared from these
books that there was due depositor; a
that time the sum of $S,5S6.2i. There
We're certain other liabilities for mon
eys borrowed. reserve fund and undi
vided profits. making an apparent total
liability of $40. 3D. 90. The resources OF
like amount consisted of certain
bonds stocks and loans, all of which
We're seen and checked. with the eX
Ception of two government bonds Of
$500 each. which We're deposited with
other parties as collateral, the treas
urer holding receipts therefor. The
statement contained in the report Of
this department for the year 1896, gives
the liabilities as they appeared on the
books of the bank and the assets as
exhibited to the examiner with certain
deductions from the face value Of tha
loans ana on the unpaid interest az
count. 1t shows that the market value
of the assets was $519.12 in excess of
the apparent liabilities. Had the
books exhibited been honestly kept.