Daily Kennebec journal., 1900-01-19
posits has come from those whom saw.

| 'Ii,lfo'o'' dS against xl2,OS1 ,519.42 an
sl0,S27,37o.76 respectively for 1898.
The large increase in premiums pai
is due to the fact that nearly every Sc
curity suitable for a savings bank (
purchase is now selling at n premium
making it necessary when purchasin
to increase this account. The bank
have, however. charged out of thei
years earnings $24l, GA. 10 to reduce thi
account-a sum IN excess of the aver
age amount that would be required an
nually To balance such accounts at tn
maturity of the securities for the pur
| chase OF which these accounts Wer
created.
To show the great aid the saving
banks are to the State he shows in an
other table that the banks have in tn
past q years. paid into the State treas
ury $1,G3l, S9l.OS. while it has expende,
for salaries and expenses of the banl
examining department only ST. $50 n,
| one thing, ne says, has ever brough
| the State such a revenue.
The average rate of dividends 70
the present year is 3.4S, while that 70
1898 was 3.53, and for 1897 3.G7. Tn,
number Of banks paying four per cent
IS now but seven, as against II in 1898
and % in 1891. While there has been {:
marked increase in the amount of de
posits. the amount of earnings dis.
tributed has decreased $53. 7SO7S.
The $2,o9l, ,543.s4 thus passed to the
credit Of the l11,5S9 depositors. gives
an average income Of $ll17 to each II
represents the net income of the actual
owners of the savings banks for THEN
years business. free from all taxes oI
other expenses on the part of deposi-
tors. Any business or7industry pro-
ducins an equal net income, distribut
ed among So large a portion of the
people Of any community. would at
tract attention as one that added ma
terially To its prosperity"
Then the report touches upon our in
Vestment laws. showing them to be- the
cause of the lower rates of interest on
account of the limits of the law in in
vestments. The expenses are becom
ing lower according to the deposits :
the deposits are Increasing and great
care and economy is being used. but
under the present conditions the rate
must go still lower and three per
-
son Of gross earnings Of 1889 1894 ana
1899 shows that in the first year with
deposits amounting to s3911 .0S5 90 the
earnings We're 2.4So 96S.l5: in 1894 the
deposits were $54 4.53l 1880 and the
earnings were s2.9S7. .s42 16; while in
1899 they were $Gi .009. .3S6.5i with earn
ings amounting to So. .303. 22l51.
1T can be seen that the present
earnings are much less in proportion
to deposits than for the other years
with which the comparison is made.
This difference would be more marked
in n similar comparison for 4 longer
term of years. ON nearly all securities
purchased during the year quite a pre-
MUM has been paid. 1t has been nee
csSary, therefore. to set apart much
larger portion of these annual earn
ings than formerly for the reduction Of
this account. After deducting the
amount used for that purpose the
gross earnings for the year have been
but little more than four and one-half
per cent. Of the total deposits. The
law requires that an amount equal 10
one half of one per cent. of the de-
posits shall be set apart from the
profits as a reserve: the State takes,
three-f -fourths of one
per cent. for taxes: all salaries. rents.
ordinary losses. and all other necessary
expenses. must also be deducted from
the gross earnings before 4 dividend
can be paid. When all this is consd-
cred it seems that the present average
rate is fully as high as the earnings
4 In a
right to expect.
The increase of $2.333S, GA Sc in the
assets has necesSitated material in
crease in some Of the classes of invest
ments. There has been an increase Of
SOS $50 in the amount Of government
bonds: SOS S73.06 in public funds in
Maine; $500. 66609 in railroad bonds in
Maine. ana $2,3l7, ,9ol.44 in railroad
bonds out Of Maine"
While speaking Of the duties Of trus-
tees to conform with the laws In regard
tp Investments the examiner says he Is
confident a law should he enacted licenS-
ing brokers VINO "a business in the STATE,
ur at least some law should be- made re
them ana one lpr punishment tp
be broker who will sell a security he
knows Inc savings bank should not buy
He says that when We think IF the vast
sums of money IN" savings banks nave
handled ana the few LOSSES II gives re
cora that cannot u" ruualled by any oth-
rr kind uI financial institution.
There Ar" II trust ANA banking com
lani,.s doing business in the STATE. 1he
Lewiston Trust ANA safe Deposit ~. is
now included. taking the place of the
oxford County loan Association which
dropped out last year.
The number of depoSitors IN these lnStl-
tutipns at the present timr is l6S0>, while
thlt for lS!N was but II. ll1, and the total
IrpnSits. S. 6jN }16.36 AS against Sb,2ul, l1s y
for last year Their total assets have IN
creased during the year. $2.6lH.21i 10 This
increase is more than these institutions
have ever shown in amy one Year before,
ana more in proportion Tor tn" Present
year than III any other class OF banking
institutions in the state.
The amount Of interest paid during the
year on al deposits was Gl,alS.2l, while
that for lNiS was hut $l25, ,ul2 II.
The amount paid to depusit"rs in the
savings departments alone was $l22, l6i. -,
~ average, rate being. approximately
So The amount Of dividends paid To-
uf j - en- all stock. ur an average 81 63i
on the stock If the banks that paid diNi-
dcnds
Of the - loan ana building associations
it is shown that they have assets
amounting to s. g75 nc. II. with an accu
mulatcd capital of s., .96o.s4. The mum
brr Of shareholders are N5a: the number
of shares outstanding a. .36>; and amount
If dividends paid SlI6,3A5..
This is decrease Of &i,2N2.30 in the
total assets: 81, i63.63 in the accumulated
cauital and 3g0Ia in the number of shares
outstanding There has been most sat
isfactorV increase of $6Ng1.2. in the
amount of the guaranty fund during the
wear We are pleased to note that the
associations are following the recommen-