Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-05-27
An Interesting Statement.

interest in the semi annual statement
Of Bank Examiner Undertake which is
published in full elsewhere in this issue.
We find here, in very convenient form
for reference, a comparison Of the con
ditions existing in our State savings
institutions on April %, 1899. with those
that existed on oct. %, 1S9S-a period
| of six months.
In his annual report of last year Mr..
Undertake stated that in no year
since 1892 had the increase of deposits
equaIlcd the amount of dividends In
other words the banks during this
period, had been actually crediting to
the accounts of their patrons more than
their net gains in new deposits. This
showed very conclusively how great
| was the lack Of surplus capital in the
community. During the entire year
covered by this report the increase Of
deposits amounted to only $l,25iO00.
| The semi-annual statement just issued
| by the bank examiner shows that dur
| ing the six months which it covers the
| increase i'll deposits amounted, in round
numbers. to 81, 500, 0O0-a gain Of more
than half a million dollars over the
| showing made during the whole Of the
previous year. About $1,000 900 Of this
total came from dividends which We're
| credited to the accounts Of depositors.
| leaving. for the first time since 1892
net gain in new deposits over dividends
of nearly $500 O00. Upon the same gen
| eral ratio of increase the net gain of
| new deposits over dividends at the
close of the year would come we'll up
to s., O0O, 600. These figures are signif-
cant and encouraging. They show
| general increase of prosperity among
the people of our State. and demon
strate the fact that there is today in
| Maine large amount of surplus CAPT
tai anxiously awaiting opportunities
for profitable investment.
There are of course some general
conclusions to be forseen in any long
continuance Of these conditions. and
there is every reason to believe that we
have now wen entered upon a good
long era Of national prosperity. 1t is
evident, however, that these very
conditions must inevitably further
lesson the earning power of
| capital when confined to the old
conservative forms of investment. The
tendency of interest rates is steadily
downward. Today, to secure profitable
returns capital is obliged to seek the
fields of business enterprise, and as
sumo it's share in the burdens of risk.
The demand for gilt-edged securities
was never so great as now and never
before has there been a time when they
could be foated upon 50 low a rate of
interest. The distance between CAPT
tai and labor is constantly growing
smaller
We believe that our good State of
Maine will have a generous share in
this new prosperity, and that it's CAPT
tai may be safer and more profitably
invested in the great work of home de-
velopment than anywhere else in the
world.
But not alone in our savings banks
is gain in capital shown. On October
30, 1898, the amount of deposits in the
trust and banking companies of Maine
amounted to $9.1S2,9975O On April 30,
1899, the amount was SIC. ,364.0
gain of nearly million dollars in the
short space of six months.
The loan and building associations
show a considerable decrease in CAPT
tai. but this is wholly due to the retire
ment of shares and does not necessar-
lily indicate any falling off of prosper
ity. Taken altogether, this statement
of the bank examiner is decidedly en-
couraging and will well repay the care
full study of all who believe in Maine
and its future.