Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-01-03

me average 70 each depositor is
S'es'sb us against $355.ol laes year-.,
sam oi $500 during that time. Tha
tNefage FOR each inhabitant Of tha
state would be $9205.
Tne aggregate of reserve and mn
elViaed profits now amounts to ss.as9
o.'-ss The increase OF sl1a.56s "a In
.iiS item from last year is due to tba
taet That several large banks pay thei,
seiili-aniual dividends the first ar
November. Had this statement hee,
nade UP To The same date as that Of
,es' u would have shown quite q re-
uuctlol IN these accounts.
INVESTMENTS.
table is given giving the amount
and class Of each investments. The
most noticeable changes for the year
are. An increase of SsO2. $50 in United
states bonds: $lS3.sl6.26 in municipal
ponds III Maine: $l67 .29O.16 in railroad
oonos in Maine: 81. ie2. 410.40 in railroad
bonds out OF Maine: and a decrease OF
s.o-.o.S.O in municipal bonds out of
Maine; and $34S, 791. 50 in collateral
loans.
Regarding these changes Mr. Tim
periake explains: TT becomes neces-
sary for savings bank each year to
invest not only the increase in de-
| posts received, but also the large
amount that comes from it's maturing
securities. These amounts taken to-
| gcther are very considerable, and the
| question of their investment is one
that is now giving the trustees of the
several institutions much anxiety.
! There is no Immediate prospect of a
! change in financial conditions. such as
would lead US to expect an advance in
| rates of interest. The enormous in
crease in wealth in this country has
| furnished surplus of capital even in
the most prosperous business times. A
| few years ago the central West looked
to the savings banks of the East as a
market Tor the larger portion of the
securities issued by its municipalities
! and corporations. To-day the larger
! portion Of these are being absorbed
| locally, and never reach our eastern
| bond market. The life insurance COM
| panies, with over a billion dollars of
| assets, are sharp competitors for the
| purchase of such securities. AS they
do not depend solely upon the interest
| received upon these investments, hav-
! ing legitimate income from their
| general business, they are usually
successful competitors. The nations
| al banks and trust companies. with
1three billion dollars of assets, find that
| they have capital in excess of that
needed To carry on the commercial
business of the country. and are for
! this reason now purchasing large
amounts of securities formerly carried
| by savings banks alone. All of these
conditions have led. during the past
! few years, to a material reductions in
rates of interest on investment money
and added to the difficulties of safely
| placing the same
OF the Investments held by savings
/ banks, including money on hand and
on deposit. $50, III ,S60,i7 is invested and
held within the State. as against SIS
I A33.1SS.16 last year. Had it not been
( for the large decrease in collateral
I loans, this gain in home Investments
would have been even greater. The
( decrease in collateral loans has not
! been occasioned by any change in the
policy of the banks. or because the
banks did not wish to loan upon this
kind of property. but rather because
( OF the less demand for money by this
I class of borrowers. All kinds of bank
! ing institutions are meeting With the
same difficulty in making collateral
/ loans. and the reduction in amount of
( the same is not confined to savings
banks.
DIVIDENDS.
The accompanying table gives the
rates and amounts Of dividends paid
by the savings banks during the year,
and a comparison with those of 1897: