Daily Kennebec journal., 1914-03-07
Editorial Comment
A Thrifty State.
(Boston Transcript.)

(Boston Transcript
From the annual report of the Maine
bank commissioner, just filed with the
governor and council, the inference ap-
pears to be warranted that the people
of that State are in the enjoyment or
very general, even if modest, THRIFT.
There are 131 parent institutions un-
der the supervision of the banking de-
partment, As savings banks, 40 trust
companies and SO loan and building as
sociations. These latter seem to have
been particularly encouraged. 1t is
claimed that they are powerful in
centive to thrift and great home oulid-
ers. The capital of all these organlIa-
tions in the United States amounts to
over $1,12o, 10000 Deposits in the sew
eral classes of fiduciary institutions
have increased uring the past year
by more than four and quarter mil
lions. indicating a gratifying general
average of prosperity. The combined
assets are nearly one hundred and
seventy millions. They pay TO the
state in taxes about s617 900 and the
cost of supervising the business OF
handling them is less than nine thous-
and dollars.
1t Is interesting to note how closely
that state and how important it is
that vigilance should be exercised in
their behalf. Considerably more than
half the population. men, women and
children. are depositors of one kind
or another. OF the adults one may
meet there, it is safe to say that two
out of every three have a stake IN
these institutions, with something laid
1nr- IF
does not include the reserve assets
that are represented by stocks and
bonds and real property. This large
distribution of safeguards against sick
ness and want is testimony TO the
steady habits of the people.
All these classes of depositors must
continue to look to the state for pro-
lection. In the new National banking
system no provision was made for the
supervision of savings banks. There
was no reason for recognizing them or
inviting afiliation. They are largely
sectional institutions and exist MAIN
ly in the northeastern states. The
trust companies, on the other hand,
were given an opportunity to enter
and become members of the reserve
association, thereby putting them
supervision. But in Maine, with great
unanimity. they have declined TO at
fiiate. Having received their charters
from the State, they think they can
conduct their business more snugly
and smoothly by maintaining the mu-
tual responsibilities that now exist.
During the past year Maine has
been experimenting with blue sky
law and her commissioner claims
that no friction has developed under
it. One hundred and FIVE dealers In
securities and two hundred statesmen
and agents have been licensed, but
the main question. TO what extent
they have reduced the number OF
spt-rich quick schemes and lessened
their victims does not seem te have
been conelusively answered. Another
law passed by the recent legislature
prohibits persons. firms or corpor-
ations. other than those duly author
lied under State or banking laws, to
receive deposits, unless II may be
corperation that desires to encourage
thrift among its employees, and then II
must undergo close scrutiny by the
authorities. It must give secured
bond large enough to assure the pay
mont Of all deposits. There is no dan
ger in this State" is the claim. of
a failure of the same character as
that of the Siegel stores and their
drygoods bank. which occurred recent
ly in two of our sister States"