Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-07-13

Formed.
For some time representatives of the
British government have been making
ii study of the American system OF
banking. Their researches, however,
have been conducted in the great
money ccnters and have been devoted
to the workings of great institutions
Now attention is being turned to that
vital subject, the investment of the
earnings Of the common people of the
United States. In this connection the
following letter, sent by Secretary Hay
to Governor Hill, and the following in
formation transmitted in reply, are self
explanatory. The facts here obtained
are Of interest not only to the financial
experts of the British empire but to
every man. woman and child who has
Il deposit III Il savings institution:
department of State.
washington, June rs, 1904.
His Exccll"ncy
The Governor of Maine, Augusta.
''Sir:-At the request of the British
Ambassador. dated the I'D instant. I
have the honor to ask to be favored
with Information on the following
points connected with State and other
savings banks in your State, viz:
Il. The present minimum and maxi
mum amounts allowed to be deposited.
~. Tn. present average rate of in
tercst payable on deposits.
-. The date and nature of any
chan=,s since 1850 (O in the maximum
or minimum limits Of deposits; 90 in
the rate of interest payable; and (c) in
other conditions which would material
~ affect the amount of deposits.
9TH" department should accordingly
be Very greatly obliged if you would
cause it to be furnished with any in
formation which may be available on
this subject.
Il have the honor to be, sir,
Your obedient servant,
JOHN HAY"
Upon the receipt of this communica-
ton, Governor Hill placed the matter
i'll the hands of Bank Examiner Timber
lake. who made Il careful review of the
whole question. verifying the statistics
1T hand. The following is the informal
ton furnished the Governor by the
bank examiner, tn be transmitted to the
state Department and to the British
! Ambassador:
"Statemrnt by the banking depart
| mclt al the STATE of Maine relative to
| deposits in state banking institutions,
made at The request of his E,Xccllency,
John +. Hill. Governor of Maine.
Explanation: There are two classes
of state banks authorized under our
laws to receive deposits, VIZ: savings
banks and trust companies. 1t is I'M
derstool that this inquiry refers only
to what are commonly denomiiated
savings deposits and that it does not
apply to commercially deposits or those
subject to check
"Qucstion l. The present maximum
ami minimum amounts allowed to ne
Deposited?
Answer I. Savings banks and in
StitutionS for savings may receive on
Deposit for the use ANA benefit Of
d, posters. Sums of money offered for
from amy enc depositor, directly or
Indirectly. over two thousand dollars,
and no interest shall be paid to any
one ''tioSltOr lOr any amount or Ge-
Insit. all dividends included. exceeding
sid sum, except for deposits Of
widows. orphans, administrators,
"yrclltors. guardians, charitable insti-
tutions ana as trust funds. The trus-
tees may refuse any deposit at their
pleasure. Revised Statutes, Chap.
IS, Sect ~.
Trust companies are not limited i'll
the amount of deposits they may re-
cciVc from one person.
question =. The present average
rate of interest payable on deposits?
answer .. Our savings banks are
purely mutual institutions. Their net
profits, after setting aside a certain
amount required by law as a reserve,
are scmi-annually passed to the credit
of dcpositors as dividends. Each trust
company pays such rates of interest
upon deposit as it may agree upon
with the dcpositors.
THE following are the average rates
Of interest or dividends paid by each
of these classes of institutions for the
years named:
Savings Trust
p.,,I-,