Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-01-12
Probably you know how Ayers Hair
Vigor always restores color to gray hair
and makes the hair grow. That so ss. s::.

mulated because the State has con-
sidered il good policy to maintain such
institutions in order to teach our peo-
lsple lessons of thrift and economy, and
Ito accumulate their small savings, thus
lsmaking such sums available as bust
| ness capital to be used in the develop
ment of the industries of our State
Strict laws have been enacted limiting
the Investments of these institutions
thus limiting and restricting their pos
sible earnings. Up to the present time,
the results obtained for the depositors
have been so satisfactory that their
Accommodations have increased until
they are now the largest aggregation
of capital in our State. The State at
the same time has directly profited by
this policy, as these Institutions have,
since 1872, paid into it's treasury So
119.172.74, and are now paying a large
revenue upon a class of property that
elsewhere would yield but little in the
way of taxes.
1t is of the utmost Importance that
these institutions should be able, at all
times, to return to their depositors the
full amount of the principal standing
to their credit. If it is desired to re-
tain such deposits and continue their
increase, it is also necessary to pay
the depositors a satisfactory rate of
interest. 1t is generally believed that.
8 per cent. is the lowest rate that
depositors would accept without at
once withdrawing their deposits. This
is thought to be the dead line across
which no sayings bank can pass with
safety. 1t might be possible for amin
dividual institution temporarily to pay.
less rate, without losing their de-
posits, providing the depositors fully
understood the circumstances, vet this
would be a dangerous experiment. 1t
is therefore, necessary that these
banks in some way obtain a gross in
come sufficient to give this net re-
suit after paying taxes and expenses
and setting aside the reserve re-
CURED by law. The banks recognize
this fact and are making their invest
ments with a view of obtaining an in
come that will give this result.
The necessity for such an income
has shaped the investments of all
savings banks during the past few
years, and materially changed the per-
centage of the different classes of their
holdings. The margin of difference
in the income to be obtained from the
different kinds of securities is so small
that a change of Ia of l per
cent in the gross earnings would
change the whole character of their
investments. Had the rate of the tax
been reduced seven years ago,-when
such a reduction was first urged by
myself-and the saving in profits been
used to purchase a better grade of in
vestments, the banks could have main
tanned their former high percentage of
municipal and high grade steam rail-
road bonds, and at the same time have
continued their holdings of govern
ment bonds sold during the past two
years. To repeat, a reduction of IA
of / per cent. in the rate of
taxation would probably have entirely
changed the whole character of these
institutions, and safe guarded them
against any crisis that could possibly
arise in the future. To some extent the
rate of interest upon different Invest
ments depends upon the degree of safe
ty they offer. A high rate of income
now may mean danger in the future.
A low rate of income now means
absolute safety under any condi
ton in financial affairs that can
possibly arise. 1t is better to keep
the principal secure, even though it re-
suits in the payment of smaller divi-
dends and ultimately in liquidation.
The banks should only consider invest
ments securing absolute safety.
The amount of this tax as actually
assessed for the six months ending the
last Saturday in October, 1902, was
s211 ,SS910. If computed with hori-
zontal reduction of 2-S from the pres
ent rate, making an average of Il Of
/ per cent, instead of Il as now, 1t
would have been 1882, 701.13. If COM
puted upon the same basis of reduction
in rate. with the discrimination be-
tween investments acquired prior and
subsequent to 1898 eliminated, it would
have been $1S4,6133 With prosperous
times satisfactory dividends and q
condition of the banks assuring public
confidence. there would be natural
increase in these deposits of approxi-
mately 100000 annually. Thus, I'M
der such conditions. with the present