Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-12-13

! investment has been increased from
the standpoint Of security; the yield
on the basis of price paid exceeds in
most cases that from inferior securi-
! ties under normal conditions: the
sharp advance in the price of these
bonds has ayerted the necessity Of
reducing the undivided profits ac-
! count on account of shrinkage in the
value of other securities; and. finally,
these government obligations are in
effect cash reserve of the highest
type.
1.-The opportunity so afforded, how
ever, has passed and purchases of this
| type of security at a figure enabling
savings banks to hold them in larger
amounts than at present are no longer
possible. The same underlying causes
thave also sharply advanced the price
Of other high-grade securities and
bankers acceptances. The narrowing
of the field of investments whXh COM
| bine the requisite degree of security
/ with sufficient yield to permit the
continuance of the four per cent rate
on deposits calls for keen discrimina-
ton and close attention on the part
Of the trustees and executive officials
of every savings bank.
1.-THE probable revision Of the saw
ings bank investment law as the re-
suit Of the report of the special legis-
lative committee now investigating
| the matter is likely to afford some as
sistance in this respect, and it is
hoped that the committee will have
the benefit of suggestions from all
banking officials having ideas on the
subject.
complete audits Of banks under
our supervision are obviously i'm
possible, but in view of the fact that
the ordinary examination does not
permit of verifying the deposits liza
bilities, the policy of periodically
checking up this important item has
been in force for some years and af-
fords depositors practical protection
Of great value. In practice the work
is accomplished. through taking
group of institutions, savings banks
and trust companies alike, in a GER
tain section of the state, and making
use of the entire force at the COM
mand of the department. On certain
days the depositors are asked,
through the public press, to bring in
their books for verif1cation.
"a gratifying percentage Of the
total is always secured. This is fol-
lowed up by sending out slips to the
other depositors, asking for informa-
ton from their pass books, and these
| y-h wi
books of the bank. The results are
such as to reach, so far as humanely
possible, verif1cation of this most
important item of liability.
"At the present time there are in
Maine 43 savings banks, with re-
sources of s116,264,oS9.72, 55 trust
companies, 81 trust company branch
es and eight trust company agencies
with resources of s145,429,372.9S, 80
loan and building associations, with
resources of S10,176,95S.3S, two loan
companies with resources of s727.-
| 114.21 and one industrial bank with
resources of s270,S4321. Last year at
this time there were 43 savings banks,
with resources of S114,13S,16390 SIS
! trust companies, % trust company
branches and six trust company
agencies. with resources of SAL
732,240.26, 80 loan and building as
sociations, with resources of $9,24S,-
960.57, three loan companies with re-
sources of s9t5,766.6 and one indus
trial bank, with resources of S227,-
S20.93. 1t will thus be seen that, the
resources of the state institutions in
creased s6,614,6o6oo during the past
year.
TT appears that the increase in re-
sources of the national banks in the
state has been approximately at the
same rate as that of the state insti-
tutions and that the combined bank
ing resources Of the state now amount
to s3S5,142,57S.50.
THE confidence of the depositor in
the specialist in savings investments
the mutual savings bank-contin-
ned to he justified by the results of
the faithful and conservative man
agemcnt of these institutions.
THE shrinkage in market value in
long time securities held by savings
institutions during the period of high
interest rates is being rapidly over
come and in many cases has been