Daily Kennebec journal., 1918-01-04
SPLENDID REPORT BY
BANK COMMISSIONED

Frank l.. Palu,cr % SAGE. the state
bank commissioner, In his annual report
Which was tiled with the governor ami
council Thursday states that IN view of
the unusua! market depression and dis
tlrhances incident 70 the worl war IL
v hich the country Is now gaScd il is
gratifying to report that the combined re-
sources OF the Institutions W.uar the su-
pervision Of this department Lave in
creased SIS, ,96l, ,S9l - during the past year,
ara this is, with one exception the great
ST gain in banking resources i'll the his
tory of the state. TheLe are at present
IL, the state 45 savinesybanhs, i9 trust
companies. 10 trust cNhpany branc' IS.
two trust comsai'y agetcies, IS loan and
building associations and three loan com
panies. with total assets OF s2lS326 -, %
1T is apparent that tie actuai decrease
in the resources OF savings banks for the
past year amounted to $jsl6 g.. As, but
this decrease of little rising siN-tenth;
is accounted for by the liberal ANA pa
,riotc manner in which our citizens re-
sponded to the government 5 call To invest
in Liberty Bonds" says commissioner
Palmer in the report
"Al other classes Of institutions under
the supervision of this department show
y material increase in resources during
the past year. This is especially true il.
the case of trust companies which have
gained three in number and SO, 49, Sl7 81
III resources
During the past year there has been
i voluntary liquidation OF four national
banks and their resources have been TAX
en- over and their liabilities assumed by
trust companies. Although there has been
this decrease OF four in the number of ma
tional banks, the total resources amounted
to sS9, ,S25 ooo this year as compared with
SS2.6,4.Go0 last year. the combined re-
sources Of State institutions and of ma
t:onal BANKS located in Maine amount to
1907 651.3S as compared with resources
amounting TO s2S7. go, 42l.43 one year ago.
This shows Il net eaintiu resources during
the year amounting to S.J615.SG1 Is. III or
der to determine tl,e enact amount OF
banking resources in the State, il would
be necessary to make some small deduc-
ton to cover the sums deposited by the
various institutions m other banks within
the State.
u, would be unfair to accept the re-
cent abnormal quotations as a guide IN
appra ising securities held for permanent
Investment. Neither the quota tions of an
abnormally high market nor OF a de
pressed market indicate the intrinsic
value of the securities. or what will be
realized a their maturity The securities
held by savings institutions were not pu--
chased for speculative purposes. There
fore the holders should not be affected by
temporary market conditions, except t.
the extent that it might become necessary
T. dispose VI securities to meet with
drawals Depressed market conditions
are no Indication Of what would be real
izeG even in the event ot involuntary
linuidation. as IL is not all probable that
the courts would allow a sale uf securities
under such conditions. The department.,
therefore. has not required the banks TO
charge down investments unless the In
.rinsic value of the securities has been
affected. Provision will be made for per-
manent depreciation. should there appear
20 be occasion for such action later
at IS obviously ,he duty OF our bank-
ing Institutions to do everything possible
T. keep high grade securities on the
present market The bankers Of Maine
are entitled to much credit for their gem
erous and effective assistance in floating
the recent government loans, but it is
also important that the pabiic be made
20 realize that it helps the country rsla-
lively little il the purchasers pay for
their liberty bonds by selling other in.