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in public funds in Maine; $260,666.09 in railroad bonds in Maine, and $2,817,901.44 in railroad bonds out of Maine. EXAMINATION ANDSUPERVISION. This department more than ever appreciates the importance of a careful examination and supervision of all the institutions under its charge. The difficulty of establishing a system by which, with any reasonable amount of labor, it is possible to fully and absolutely verify, item by Item, the business of each instit ution, becomes more apparent as the matter is considered. Human ingenuity has so far failed to devise any method that will guard against occasional losses from disghomest employes or the mismanagement of officials. This is as true in other kinds of business as in banking. No one can name any line of investment, or kind of business, in which there is so near absolute safety as in our savings banks. When we compare the aggregate business with the total loss, the amequt becomes EO small that it seems of little consequence. Until some enti rey new method of examination is adopted it will te possible for those handling the funds of others to cover up certain amounts of irregularities. In conducting & bank, there is hardly a transaction that cannot be used by a dishouest employee to cover up some form of speculation. Absolute verification, therefore, can only be had by going over each item with the same care be stowed upon the original transaction. This would entail upon the auditor fully as much work as upon the employe who made the original entries. Anything short of this would not give absolute certainty, as opportunities would exist for accounts to be falsified. On the other hand, should the supervision be extended enough to absolutely verify every transaction we would have simply two permanent employes going over the same work. This would give only the additional protection that would come by havin g two employes engaged upon the work of the bank under the present methods. One would cease to be an auditor of the other's work-they would become co-laborers and all the force of supervision would be lost. We cannot, therefore, expect to entirely escape losses from breaches of trust such as occasionally come in all kinds of business where it in necessary to place confidence in others. A reasonable amount of oaution, however, reduces this danger within the limit where the bank can be protected by a surety bond such as every employe is by law required to give. LOAN & BUILDING ASSOCIATIONS There are now thirty-two loan and building associatoins doing business In the state. A comparison of '98 with '90 show a decrease of $34,282.30 in the total assets; $41,463.63 in the accumulated capital, and 390 1-2 in the number of shares outstanding. There has been a most satisfactory increase of $6,897.27 in the amount of the guaranty fund during the year. We are pleased to note that the associations are following the recommendations of the department by setting apart a greater portion of their earnings to this fund than heretofore. BANKS IN LIQUIDATION. Regarding the banking associations now 10 the process of liquidation in this state the report says: The receiver of the Richmond Savings bank paid a further dividend of eight per cent as of October 4, 1899, amounting to $6,850 53. This makes seventy-eight per cent, in all that has been paid to the depositors in this institution. The assets have been substantially all reduced to orsh, and the receiver advises the department that he will settle his final account in is short time. During the present year the receiver of the American Banking and Trust company of Auburn has paid the creditors a second division of 25 per cent. There has been quite an appreciation in the real estate owned by the company and the demand for it is constantly increasing and frequent sales are being made. It is expected that another dividend of at least twenty-five per cent will be paid within the next six months. At the date of the last report, there had been received from the assets of the Northern Banking company, that came to the possession of the receiver, the sum of $6,939.81. The balance of the assets have since been disposed of and the amount of cash now in his hands is $12, 839.99. The second account of the receiver has been filed in the supreme judicial court, and upon the approval of the same, and the determination by the court of the amount of the deficiency of the as sets of the company, proceedings will be instituted to determine the amount of the liability that may exist against the shareholders of the corporation on the stock held by them. The collateral BEcurity held by the various creditors has been applied in reduction of such creditors' respective claims. "The receiver of the Oxford County Loan Association reports that, when the affairs of this association were placed in
