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THE SAVINGS BANKS. Annual Report of Examiner Richards. Bank Examiner Richards, in making the twenty-fourth annual report of the savings banks of Maine to the Governor and Council, says that the great ordeal to which savings banks were subjected in 1878 and 1879 has not beon destitute of beneficial results, it having demonstrated to the satisfaction of managers and depositors that moderate profits, with perfect security, are to be preferred to high rates of interest from hazardous investments and that an ample reserved fund is of greater importance than the amount of dividends. The conservative disposition which characterizes the present management of the savings institutions of our State is a gratifying assurance of the general determination to make them, in fact, a safe depository for the savings of the people. There are at present fifty-five savings banks in active operation in the State. During 1878 the deposits decreased $3,725,320, and during 1879 the decrease was $186,363. The past year, on the contrary, there was an increase of $1,968,183. The aggregate of the reserved fund held by the banks on November 1, , 1880, amounted to $607,629.63. The examiner remarks on the tendency to decrease real estate investments and invest in public funds and railroad bonds as more easily converted into cash. The propriety of investing in railroad stocks is, at least, vuestionable. Some banks continue to make loans on names alone. Although no losses have occurred from such loans, it is a violation of the law, to which the attention of the bank officers has been called. The great'increase of deposits and the difficulty in making safe and more remunerative investments has necessitated the temporary depositing of large sums in national banks at a very low rate of interest for monthly balances. One bank has made a dividend ef per cent, 19 a dividend of 5 per cent, 1 a dividend of 42, 12 a dividend of 41, 5 a dividend of 41 and 16 a dividend of 4. One has made no dividend, having been enjoined. The attention of the Legislature is called to the fact that the present State tax on the banks amounts to at least 20 per cent of the revenue of the banks. The Bucksport, Hartland and North Anson banks have practically closed their affairs during the year. October 3d the Bucksport bank voted a final dividend of 111 per cent, making an aggregate of 711 per cent paid the depositors in settlement. The North Anson bank voted to surrender its charter last January. The Hartland bank reported November 1st the amount due depositors to be $14, with cash in bank of $14. The Newport and Solon banks are in the hands of receivers. It is estimated that the Newport bank will finally pay depositors from 65 to 70 per cent, and the Solon bank 100 per cent. On account of the depreciation of values in 1877 and 1878, 13 banks availed themselves of the relief afforded by law, of reducing their deposit accounts. Seven of these, namely the Androscoggin County, Auburn, Bridgton, Calais, Dexter, Franklin County and Skowhegan, have been able to partially or wholly restore the amount so reduced to the credit of depositors. The injunction granted to the Wiscasset bank, to restrain the payment of 80 per cent of its deposits, has been continued. The bank has loans of $22,000 in the town of Wiscasset, the security of which is rendered uncertain by a the financial condition of the town. With low estimate of its assets the bank has a surplus above liabilities of $12,670.40, and with the earnings of another year it can pay its depositors dollar for dollar, without realizing from its loans on mortgages of real estate. The two banks of discount, the Eastern and Mercantile of Bangor, have surrendered their charters, are redeeming outstanding circulation, and will soon make a final settlement. In closing Mr. Richards reminds the bank officers that their efforts should be directed to the disposal of such real estate as they haye been obliged to acquire by foreclosure. The present activity in business and the great appreciation of values affords savings banks an opportunity to prepare for the reaction which is not unlikely to follow. The safest securities should be obtained, income should be regarded of secondary importance. The highest satisfaction is expressed with the general management of the savings banks.
