Daily Kennebec journal., 1914-02-14
STATE HOUSE.
Interesting Points by Bank
Commissioner Smith.
A Chapter on Rural Credits and
on Private Banking.
New Parole Law Reduces Efficiency
In Prison Shops.
STATE HOUSE CALENDAR.
Regular Meeting Of Governor and
Council Will Be Held at 10 A. M.
Thursday, Feb. 26.

ne9utar meeting OF GovefnoH and
Council Will Be- Held at 10 A. NJ.
Thursday, Feb. 26.
| Harry M Smith Of Bangor, who is
charged with executing the laws of
the State of Maine relating to the
regulation and inspection Of banks,
through his office as bank commission
er, is earning and receiving much
commendation for the businesslike
and progressive way in which he has
attended to his duties.
| The Legislature Of 1913 passed a
blue sky law which is admitted by
all men familiar with laws governing
the sale of securities to be the best
law of its kind on any statute book
in this country. While other laws,
passed in the craze for blue sky"
laws which followed the passage of
the Kansas law. were declared uncon-
stituti0nal and unworkable by the va
rious courts Of the land, the Maine
law has weathered the storm and has
yet to be attacked on the ground of
constitutionality. Its authors avoided
the pitfalls into which the zeal of the
lawmakers of other states led them.
Once on the statute books the admin
istration of the law fell into compe-
tent hands. Commissioner Smith has
undertaken to inaugurate its use long
sound business lines. He has abso-
lutte faith in it.
| Il believe that the Maine law is
capable of enforcement" he says .to
the extent that 1t will protect the men
| of brains who will use them. and ask
questions in order to ascertain what
they are buying. But the law will
not prohibit the sale of speculative
securities if the public insists on buy
ing this class of Investments
| The law went into effect on Jan. l,
| 1914, and since that time about 100
companies and the 200 agents repre-
senting them, have come within its
provisions, having satisfied the COM
pute.
Rural Credits.
Commissioner Smith, because of his
position as head of the banking de-
partment of rural state is deeply
/ interested in rural credits. Discuss
| ing this great problem in his matter
of-fact way. he says
THE area of the State is 1872, 800
acres. OF this 6,296,059 acres are in
farms with e,36o.657 acres in improved
| lands, which is $4,000 acres less than
it was 33 years ago, or else the census
was wrong. We, have 60,016 farms, an
| increase of III in ten years, which
| is the only Increase shown in number
of farms in any of the northern tier
of states east of the Mississippi river.
| with about the same acreage-1049 81
| acres to the farm. This farm land,
the buildings thereon, with farm ma
chinery and domestic animals. is val
ued at s199, ,271,9 ,904, an increase in ten
years of S76S61, ,094 or 62.S per cent
The average price of farm land rose
from SS per acre in 1900 to nearly Sl4
in 1870 There has been a relative in
crease in values Of farm machinery
end live stock. Ninety-five and seven
tenths per cent. of these farms are
operated by owners and managers
with only four and three-tenths in
the hands of tenants. Forty-one thou
sand, three hundred and nine of the
1000 farms are free of mortgage.
"Of the total mortgage loans on real
estate carried, the banks of Maine are
ioaning one-fifth on farm property.
This sounds large and surprising, but
the amount is only about $4,000, ,oOo-it
should be more. Why isn't it? There
are many reasons. The first is the
| banks are not equipped, as rule, with
| men who are in touch with the rural
life, it's strength, its needs, / am not
| talking now Of farms alone, / mean
| in a broader sense all classes of ru-
raj investments. Tradespeople and
manufacturers have a right to make
| the same complaint as the farmers
are now making.
Our needs are for men trained in
| the knowledge OF modern agriculture,
3, in farm values, in agricultural finance,
/ who may be employed by the banks.
! or by the State, whose judgment can
be relied upon to fix definite values on
farm property, on which 1t would be
safe. to loan money.
I'VE need these or other trained ex-
perts, who will have the confidence
of the financial institutions, who can
go into community and advise with
the men who will listen to them as,
to the best crops to grow, trees to-
plant and stock to buy, and be so con-;
nected that they can command the,
financial backing to supply the needs
they advise. This has been done by
]. j. Hill in developing the agricul-
tural interests along his railroad
lines"
This definite and clearly put solution
of the rural credits problem has re-
ceived much favorable comment. 1t
is declared to be really simple and
business-like way of bringing farmer
and banker into closer touch with
each other.
Savings Accounts.
Among the laws which the Demo-
cratic administration OF 1911-12 repu-
dated and ignored, was one which
provided for very careful veriication
Of savings deposits. 1t was drastic
provision born of a desire to prevent
just such tampering with savings ac-
counts as had occurred. It was hw,
whether wise or not, but when it was
put up to Governor Plaisted and his
Coy,nci1 to aufhortza the aYnenditt,ra