The Portland daily press., 1898-01-26

than 100000 ara being constantly verified
! in this way. The proposed law would,
| the refore, give no additional protection
to large majority of depositors. 1t
would be impracticable to provide for the
verifcation of deposits without making
the law apply to all savings banks. Such
provision would consequently put
large amount Of labor upon the bank
| officials and an expense upon large
percentage for the advantage simply that
would accrue to a small percer tage of
depositors In other States, having yari-
Gus methods of verifying depositors' ao-
counts, embeZzlements have frequently
occurred, and the methods employed have
not apparently decreased the number OF
defalcatiOns.
Our people and the officials of our saw
| ings banks have reason, however, to be
proud of the remarkable record OF the
State institutions. The loss Of the depos-
itors in the Lubec Savings Bank is seri-
Gus one, and one that we fully appreciate
and regret But when we consider that
this is the only defalcation that has o.
Cured out of more than 5000, 900, 900 that
have been handled and disbursed by these
institutions in the past twenty-five years,
we feel it to he record that should give
great confidence in the present system
and satisfy depositors that their funds
ara reasonably safe without further legis-
lation.
This department. has always appreciated
the Importance of q careful and thorough
examination of the different institu-
lions. While it is the duty of the exami-
ner in every way possible to guard de-
positors against losses from embezzle-
ment the general supervision of these in
| situations by this department covers
much wider scope. Tho examiner should
| see that all the books OF the banks are
properly kept; that reserve funds are Kept
| ~ =. that
are legally distributed; that the losses
are properly apportioned and not allowed
| TO accumulate against future deposit; that
all investments are made In accordance
with law and that in all other things the
general affairs of these institutions are
conducted in d business like way and In
| compliance with the laws under which
they arr operating. These laws, enacted
| by the State, are founded upon the exI eri-
enco of the past. There are also other
| general principles, under which banking
| business Is conducted, which this depart
| ment should insist upon being observed
| by each institution. The results of an
examiners efforts in all these particulars
contribute more towards the general pros
perity of our savings banks than If he
| directed his attention more particularly
| to matters of such rare occurrence as EN-
| bezzlement.
The trustees are the legal custodians OF
the funds of their bank, and upon them
more than anyone else rests the RESPONSE
bility for their safety. They alone have
the power to select those who are TO
handle these funds. They should employ
only those in whom they have the uOlhosG
confidence, and then give the matter such
personal attention that any serious loss los
Of this kind would be impossible Inc
law does not authorize this department. 70
/ insist that they make a ver1hcatlon OF
depositors' books. nor does it in specific
certainly have the power to do 2 SO II the !,
deem 1T advisable. 1 wish, therefore, 70
repeat INV Recommendation made in 1895,
''ffhat the trustees should have this done,
their personal supsrvfbo q onee IN
otbar than the regular employees of the
bank" Had this rule been adopted by
Of the he 1ness sanss Bnns
Ven syt;ons in that Institution would have
been avoided, and the depositors, saved
the serious loss they must now suffer.