Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-07-13
NAMES BANKS,
Paper Read by Examiner Tim
berlake at Buffalo.
The Origin and Progress Of Our
Savings Banks.
in Established in 80 Years, 81 Now in
Operation.

bank examiner, recently attended the
annual convention of the National AS
ISOLATION of State Bank Supervisors at
Buffalo, N. Y, of which body he was
chosen president for the ensuing year,
and read an interesting paper entitled
Mutual Savings Banks" Mr.. Tim
berlake said in part:
1.-The history of savings banks in the
State Of Maine is one of much interest,
being interviewer with that of It's COM
mercial growth, business development
and prosperity. First by special char
tiers and afterward by general statute
authorizing their organization yon APP
prevail of the banking department, II
of these institutions have been estab-
lshed in Maine during the past so
years.
1.-THE first, known as the Institution
for Savings for the Town of Portland
and It's Vicinity was chartered by the
general court of Massachusetts in 1919,
while Maine was still part of that
commonwealth. The second was Or
ganized in 1927 and a third in 1884.
Prior to 1850 there were no more than
three Of these institutions in success
full operation at any one time.
During the next decade they began
to grow in favor. Even then their de-
posits amounted to only about $1,OOO,-
600. Thus it can be seen that the
principal growth of this system of
banks has been subsequent to 1861.
OF the Il savings banks which have
been organized, 20 have been closed,
leaving 81 now in successful operation.
"Of the 20 whose affairs We're liqu1-
dated. IL have been closed by volun-
tary act of the management and nine
by order of the Supreme court.
an u the depositors have been paid
the full amount of their deposits, while
in the other eight they have sustained
q percentage of loss. The total loss to
denositors in these 20 institutions has
been 79023.69.
"Of the 81 savings banks now IN
oneration Is have at some time during
their existence been compelled, by
order of the court, to reduce their
depositors accounts to make the assets
of the banks equal their liabilities. All
but two, however, have been able 10
return large portion Of this reduction
to their depOsitors.
1.-The total loss to depoSltors IN the
existing institutions has been s4o4'-
OeS .O6. 1t thus appears that the total
loss to depositors during the so years In
which savings banks have been in
|oneratiOn in Maine has been $685.
O91 IS. During that time the banks
have been constantly receiving ana
paying out deposits.
"The savings in times of prosperity
and while the depositors are IN the
prime of life are all ultimately drawn
out and used to cover the emergencies
for which accumulated. During the
wear 1902 the amount thus Withdrawn
was S13,515,74S.50. A careful estimate
shows that the amount of savings thus
accumulated and afterward returned to
dcnositors In this State exceeds $685.
900, 600.
considering that this total loss OF
s7S3,091.75 to depositors is less IMAM Z
mills on 81 of the aggregate amounts
the banks have handled; that the loss
of all these years does not exceed thelr
present net earnings for four months
It is a most remarkable showing LOT
our savings institutions
"Another instance cannot be found In
the history of financial affairs where
such large sums of money have been
invested with so small percentage OF
loss.
"Individuals could hardly expect to
invest and handle their own funds Tor
so wears and during all that time ohly
lose an amount equal to four months
income thereon.
."rhe savings banks have now become
our largest taxpayers, contrlputlis
moro than one-ouarter Of our entire
state revenues. Since 1879, when nrSt
taxed NV the state, they have paid into
the treasury s9.359.07641. More than
ono I'm four of all our people have be
come their patrons. They have also
become the source of that capital
which has made the present prosperous
financial condition possible.
"rhe tendency of states having mu-
tual savings banks Is in the direcliof'
of the accumulation of larger reserve.
Following this tendency, the MAINE
LEGISLATURE, at its last session. III
creased the amount required from per
cent to 10. and the savings banks can
not pay Il dividend until there IS Iirst
set aside a definite portion OF thelr
net earnings to this reserve, when can
not be distributed except to meet
extraordinary losses.
"The average deposit in MAINE Is
s373.47. while that in Massachusetts Is
S3-1S4 Rhode Island has the highest
average of all the eastern states
$519.64.
more than three-fourths OF the
patrons of these institutions in Maine,
one-fourth of the population of the
state, have an average balance OF only
s11?.42 standing to their credit.
1T will thus be seen that these de-
posits are derived largely from persons
of small means. and. as matter of
fact chiefly from woman, children and
those of scanty income.
"The increase in deposist for the
last official year has been s2,SoS,9S5. Us
This represents portion of the real
savings of our people an amount which
alone would give to each inhabitant in
the state s4O4. The amount deposited
for the wear, including the deposited
credited. has been $l6,321.73423 and
the Withdrawals s13,51S.74S.5o.
st thus appears that during the year
denositors have withdrawn from the
savings institutions and applied TO the