Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-01-14
The deposit account is

a llaDllltA. IN otilef WORDS ne lndHlp-
ulated his figures enough TO offset the
fraudulent reduction of resources, and
his books still balanced. He had not |
tempered with single figure which |
would come to the notice OF others
in the bank. He had left |
the correspondents account, which he |
knew would be verified with Boston. |
correct. There was no possibility that |
his act would, be detected except by |
the merest accident or by an audit
which would trace every entry OF the !
banks work for year.
Il have said that the total dis
crepancy was 55,610.9G. This does
not mean that the treasurer embezzled
that amount from the bank He /
stated to me that he could not tell how
much he had taken. or how recently.
He told Mr.. Prescott that it was about
$4,000. The representative Of the
bonding company reported to me that
he approximated it at S20,600 / make
no estimate whatever After a full
discussion of the subject with the de-
posit"rs' committee ii was concluded
that the benefits It. be derived from IA
detailed audit al the books for n
period of thirty years or more would
not warrant the large expense which
must ultimately come from the hanks
resources.
General Features CT Report.
The report presents tie usual tabu-
latinns ana 81 general summary ec
banking conditions discussing some
subjects in detail and recommending
some legislation Extended attention
is given t. the matter OF examination.
Mr. SHELTON goes into details in this
connection. explains just what is I'M
dert&t,"n under present methods and
WIa: is not. frankly cnumerates the
denaI lment's facilities and it's limita-
tlens insists that the depositing pub
Tie should eithc" haze the protection
il thinks it is getting or should know
tltat il does not get it and why. and
urges amendments that will accom-
pllsh this purDose. He describes the
additional work in this line undertakes
BY the department and it's result to
the present time.
There are - savings banks. 40 trust
companies and - loan and building
associations with assets of SOS, 49,
JSS5h; $40, las, 40l.6t anG $4.3439i 5.f1
respectively. making total assets
amounting to >14S. s9l. 9G5.S5. which is
gain of $1,000 ,i35.95 over the preced
ing year. Total assets OF national
banks heated in this State amounted
on November 10, 1910, to $50. 494. SGS.59,
n gain Of 81 CD. ,;9.62 since November
IT, 1909.
Deposits in savings banks haYa
shown a net increase Of $1..0A,7l or
Il Inc,
the previous year of POI per cent
While those OF the class of $500 or
less have shown a falling off. that de-
crease has been less than one-sev"nth
as much as during 1909 Deposits ~
over $1,000 have shown about the SAM
increase as during the preceding year
Those ranging from $500 To $1,000 hav.
increased in volume little more than
onetnird as much as in 1909, al
though their increase in number has
been more than double that eff the
earlier year The Commissioner con-
cludcs from this analysis that the,l
relatively small increase jim total Dc
positS is due moi to q less prosperous
condition of tie State. but To the
growing practice Of the more active
depositors with accounts OF from
$1,000 to $1,000 to withdraw their funds
for private investment.
The report calls attention To tho
fact that the national banks in the
State now hold savings deposits ag-
sregatirg $1S,2i9. lo4.40, of 500 iper-,
cent. of their entire individual depos
its subject TO check, while one year
ago il was AS per cent. This indi
Gates that they are not only continuing
to be aggressive competitors of the
State institutions for this class OF de-
POSTS. but that from a business point
of view they are struggling against
themselves b. inducing their regular
depositors to carry their accounts in
tie savings departments. because
those DEPARTMENTS are increasing much
moro rapidly than their total assets.
Savings Banks pay a State tax of
S4i9 021.9@ and Trust companies $loh,
50612. Taxed at the same rate as
the trust mpanies-national banks
would pay the state s90,09s annually
Present conditions work Il double in
justice They lose to the state rev
enue from funds of the same nature
as those that are taxed in stat lnsti-
tutions and they assist the banks
which pay no revenue to compete
more successfully with the very insti-
tutions which the State creates. The
policy Of the State leads to tn" with
draWal al its own funds from Its
reach for revenue purposes. X seems
bn!y fair. either that some means
Should be found to reach those funds
o" that funds of the same character
in ito own banks should be made eN-
empt from taxation"
Reference is made to criticisms fire.
quently heard concerning the invest