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THE BANKS PAY 20 PER CENT OF THEIR EARNINGS INTO THE STATE TREASURY EVERY YEAR The State Bank Examiner, Hon. Fred E. the Richards of Camden, has presented twenty-fourth annual report of his department in conformity to the law of the State. It is a of voluminous and interesting document which we can give but a brief synopsis. Each of the State banking institutions has been visited during the year, and a careful baland thorough examination made, a trial ance taken, the bonds, stocks, notes, books cash. d and other securities examined, and the these proved to exactly correspond with vouchers. F BANKS OF DISCOUNT There are but two banks of this character acting under authority of the State, whose Eastaffairs are not entirely closed. viz. the Both and Mercantile banks of Bangor. of ern these have surrendered their charters, and are redeeming the outstanding circulation, and will soon make a final settlement. SAVINGS BANKS. There are three savings banks that have the practically closed their affairs during viz. the Bucksport, Hartland, and year, October 3d, the receiver of the Savings Bank made a per cent., an dend Bucksport North of Anson. 111 making tinal divi- aggregate settleof 711 per cent. paid the depositors in Savment. The trustees of the North Anson Bank. in October 1879. voted a final divi- voted dend ings of its funds, and, in January last, of surrender its charter. The treasurer the to Hartland Savings Bank. November 1st. be reported the amount due depositors to 814. and cash on hand 814. There are two banks whose affairs are and besettled by receivers-the Newport will Solon ing banks. It is estimated that there 70 finally be paid depositors,by the first 65 to per cent., and by the latter 100 per cent. BANKS WITH DEPOSIT ACCOUNTS REDUCED. of the depreciation of values the years of 1877 and banks availed during savings On account themselves 1878. their of thirteen the deposit relief afforded by law. of reducing been account. Seven of these have already the able to wholly or partially restore amount so reduced. and the indications the are t that. within a short time, nearly all banks, whose deposit accounts were reduced, the will be able to restore the full amount to credit of their depositors. On account of the peculiar financial condition of the town, an injunction was granted July 3d. by Judge Danforth, restraining payment to depositors in the Wiscasset Savings the Bank. of more than 20 per cent. of amount of their deposits. With the estimated value of the assets of this bank, which, careful examination, is regarded sufficiently upon low. the bank has a surplus. above the all liabilities, of $12,677.40, and with deearnings of another year, it can pay its positors dollar for dollar. without realizing from its loan on mortgages of real estate. 2 DEPOSITS. During the year 1878, the deposits of the In savings banks decreased $3,725,320.00. 1879. the decrease was $186,363.00. The of present year there has been a net increase $1,968,183.00 RESERVED FUND. The of the reserved fund held the banks November 3d. 1879, was to November 1st. 1880. it 721.98: by aggregate amounted 8519.- is $607,629.63. The safety of depositors dependent upon this safe-guard to secure against losses. that the Examiner recommends the law be amended, so that this fund five shall amount to ten per cent. instead of per cent. of the assets of the bank. before an extra dividend be declared. INVESTMENTS. mortgages of real estate have ever as the best the of bank officers been While experience regarded possible has the security, demon- availastrated. to their satisfaction, that bility of money loaned on real estate mortis inadequate to meet, at all times, gages, the demands of depositors. whose deposits The by them are regarded as a loan on call. mortgage loans have. in consequence, been gradually reduced. and investments in securities more easily converted to cash have been made. The propriety of investing the deposits of savings banks in railroad stocks, the Examiner thinks is. at least. questionable. Some of the banks continue to make loans on names alone. Although no losses have been refrom such loans. it is. nevertheless, a ported violation of the law. to which the attention x of the officers of such banks has already been called. The Examiner hopes that these loans will soon be collected. and no new transactions of this character be negotiated. DIVIDENDS. : The fifty-five savings banks have made dividends as follows one, 6 percent; nineteen. cent: one. 4 3.4 per cent: twelve, 1-2 per per cent; five, 4 1-4 per cent; sixteen hav4 per cent. One has made no dividend, ing been enjoined. STATE TAX. The bonds issued by municipalities and of railroads years ago. bearing high rates form an important factor in the reof the banks. These and interest, rapidly sources maturing. investments securities at possible. much are of interest only, are of the banks must less. year Bonds, of The lower grow earnings rates correspondingly sufficiently unquestionable of necessity, by value year. to be held by savings banks, bearing 4 1-2 at cent interest. can only be purchased if per premium. and the present State tax. assessed a and collected without expense to the State, must amount to. at least, 20 per cent. of the revenue received from such safe ine vestments as are afforded the banks at the present time. AGGREGATE STATEMENT, Nov. 1, 1880.
