Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-01-23
STATE HOUSE,
Governor and Council Will Have
Regular Meeting, Friday.
Pardon Cases to Be Heard and Much
Business to Be Transacted.
Bank Examiner Undertake Replies TO Queries
At out Banks OF Maine.

many letters of inquiry from the bank
examiners and commissioners of other
states. These letters not only seek in
| formation as to the condition of Maine
savings banks. but also as to the opera
ton of the laws governing and control
| ling them. A letter has just been re-
ceived from d. c. Gates, bank examiner
| for Wisconsin. in which he asks ques-
| tons, as follows.
| How in your opinion may the in
| equality in interest rates in various
tparts of the United States be accounted
| for? Do you believe a system of branch
| banks coupled with an issue of as
set currency would afford assistance?
Would either without the other be de-
SRA pie? Does your State law permit
| loans on real estate and is this de-
Girable? What restriction upon unin-
oorporated banks is made by your law?
Are they economically sound? Would
permission to open branch offices en-
dacger the safety of banks by increaS-
jinc the possibility of dishonesty or in
| troduce any probability Of a banking
ms nOpolv? Is the need of your rural
districts chiefly for real estate loans or
foi commercial loans? What per cent
age of the loans of your banks is on
real estate? AT what season of the year
IL there a heavy demand on your banks
for currency? Will you give us the
plumber of State banks and private
banks separately that failed in each
year from 1890 to 1900 and the dividends
paid depositOrS thus far? Does your
law permit branches and are there any
III the State? Method of taxation Of
banks in your State-do the banks pay
more heavily than other corporations?"
Mr.. Undertake has replied to the
above queries by suggesting that the
inequality of interest rates is due to
the fact that the older sections of the |
country have accumulated capital in |
excess of local demands, while in other |
portions new developments still absorb |
more capital than can be furnished To- |
cally. This is the ordinary explana-
tiCn and largely accounts for the diff |
ference.
Bank Examiner Undertake does not |
believe in the system of branch banks |
IF limited to any one state" he says !
such institutions might operate sue |
Cossfully and advantageously to the |
pubic. | believe that our present cur |
reitcy system is giving the most salts |
factory results and would not disturb |
it by attempting to inaugurate any new |
so hemes.
Our statute law permits all kinds of |
State banking institutions to make |
loans upon real estate mortgages. The |
results obtained have been most salts Z,
fac tory and the policy is accepted as |
desirable. | do not think I have heard |
any person in the State suggest that
sIth Investments should be prohibited |
1.-The pamphlet containing our bank |
ine laws gives the only restriction we
have upon unincorporated banks. We
have no such banks in this State as the |
term is understood in the West. We
nave bankers who receive deposits and |
to some extent do banking business,
but they are limited in number and in |
the amount of business done.
Il certainly think that branches
would increase the difficulties of su-
per, sion and regulation. l have no
fears of monopoly in banking or in
any other legitimate business enter |
prise. Honest capital, honestly en-
ployed, can do no harm: the watering |
ns the stock of great corporations |
| thereby undertaking to impose upon
the public additional burdens. may. !
Supervise and regulate your corpora
TORS and forbid the issuing of such
stock and no combination of capital |
| however large. can injure the public
! Naturally, borrowers from the rural
| districts offer real estate securities
when asking for loans. Our Industries
are 50 diversified that we do not have
any extraordinary demands for cur
| rency at any particular season. A few
! trust companies have been chartered in
| this State with authority to establish
| branches.
| we have in this State in addition
| 10 the national banks, savings banks,
trust companies and loan and building
associations. National banks and trust
companies pay municipal tax upon
their capital stock The savings banks
and loan and building associations pay
n tax directly to the State and are ex-
erre1 from municipal tax excepting up
or real estate actually owned. The
burdens of taxation are greater upon
banks than up other kinds of capital.
simply because it is all found and pays
| the general rates. The law does not
intend to discriminate against it,
The city of South Portland. through