ber of shares have reached maturity during the past fiscal year than in the year preceding.

The total sum at credit of guaranty fund and surplus, say $512,789.31, is $40,614.34 in excess of the sums so carried on Oct. 31, 1900.

These funds are somewhat larger in proportion to the liability for capital than was the case last year.

The cash on hand, say $858,161.65, is $199,015.08 less than the amount reported a year ago; the amount due for shares matured and retired and on loans not completed is $78,262.55, leaving a balance of $779,899.10, of which amount $193,289.13 is reported as sold, thus leaving the sum of $586,609.97 available for other purposes, as compared with the amount of $749,378.78, as shown the year previous.

INVESTMENTS IN BONDS AND NOTES.

There were, at the close of the fiscal year, five banks holding securities of this nature; this is the same in number as last year, but the amount held is $3,858.37 more than was held the year previous.

Two banks which held such securities in October, 1900, have disposed of such holdings, and two others have made purchases.

Four out of five of the banks holding this class of securities hold only town or city notes, and apparently have made the investment simply as a temporary matter; the other bank has held bonds for several years, but has reduced its holding during the past year.

REAL ESTATE HELD UNDER FORECLOSURE.

It had been hoped, as expressed in that part of our report relating to savings banks, that the turning point had been reached in the holdings of real estate under foreclosure, but in both classes of institutions the hope has failed of realization; the increase during the year ending October 31 last, in the cooperative banks, is $48,558, as against an increase of $102,545 in the preceding fiscal year. The estates held are 485 in number, standing on the books of the banks at $1,041,708.29.

The above amount of $1,041,708.29 is distributed among 89 banks, the smallest amount held by any one being $120.01, the largest $89,071.20.

There are 39 banks which do not hold any real estate under foreclosure.

During the year there have been acquired 213 estates amounting to $441,309.76; and 184 estates, representing an investment of $381,839.30, have been disposed of. The expenses on the estates held amount to $62,928.44, the income from rents, etc., amounting to $38,808.46.

Losses incurred by sales, or charged off to cover depreciation (less gains on estates sold), amount to $37,181.81.

The Board has gone fully into this matter in its recent reports, owing to the fact of the large amount of property thus held by the banks, and it is hoped that the discussion of the subject may lead to greater caution on the part of all the banks in making loans hereafter.

INTEREST ON LOANS.

The following statement shows the rate of interest the banks were receiving on loans outstanding Oct. 31, 1901; also the rates prevailing on Oct. 31, 1900:

The statement, when condensed, shows the following comparison as regards rates on and amounts of the loans, viz. :

The average rate of interest on real estate loans pending on Oct. 31, 1901, was 5.599 per cent., as against 5.762+ on Oct 31, 1900.

On share loans the average rate was 5.494+, as compared with 5.631 per cent. in the year previous.

The rate of interest on the mortgages in common form held by the banks is as follows:

Section 11 of chapter 114 of the Revised Laws, governing co-operative banks, provides that bids for loans may be at a rate of interest not less than 5 per cent. per annum, and recently there has been some discussion as to the advisability of removing this limitation, so that moneys could be loaned at such rate as the law of supply and demand might govern.

While the Board is not prepared at this time to recommend such a change, it feels that the proposition should command the careful thought and consideration of all those who may be interested in the welfare of these institutions.

WITHDRAWAL PROFITS.

The amount of profits on shares withdrawn retained by the banks during the year is $47,830.76, as against the amount of $49,110.03 in the year preceding.

The opinion of this Board, so frequently expressed, is that some of the banks retain an undue proportion of the profits upon shares withdrawn; and in some instances the same conclusion has been arrived at by the banks themselves, and such institutions have changed their by-laws in this respect.

As a matter of interest at the present time, when the subject frequently comes up for discussion, this Board in its last call for the annual report of the banks included a request for a statement from each bank as to their custom in this matter. From the returns thus made the following compilation is made, viz. :

14 banks retain no part of the profits on withdrawal.

11 banks retain one-half of the last dividend.

1 bank retains one-fourth of the last dividend.

1 bank retains one-fourth, one-third or one-half of the last dividend, according to the time elapsed since the shares were issued.

1 bank retains 5 per cent. of all the profits. 11 banks retain 10 per cent. of all the profits. 1 bank retains 163 per cent of all the profits. 1 bank retains 20 per cent. of all the profits. 49 banks retain 25 per cent. of all the profits. 1 bank retains 33 per cent. of all the profits.

7 banks retain from 5 to 25 per cent. of the profits, according to the time the shares have been in force.

2 banks retain 25 per cent. of the profits upon shares withdrawn within two years of their issue and 10 per cent. on all others.

2 banks retain none of the profits when shares withdrawn have been issued more than four years.

1 bank retains none of the profits when shares withdrawn have been issued more than four and one-half years.

11 banks retain none of the profits when shares withdrawn have been issued more than five years.

1 bank retains none of the profits when shares withdrawn have been issued more than six years

3 banks retain none of the profits when shares withdrawn have been issued more than seven years.

9 banks retain none of the profits when shares withdrawn have been issued more than eight years.

1 (new) bank provides in its by-laws that the proportion of profits to be retained shall be fixed by the directors, and at the date of its report there had been no notice of any withdrawal.

COLLATERAL LOAN COMPANIES.

The three companies of this class now doing business in this Commonwealth under special charters have all been examined by an expert accountant appointed by this Board, and appear to be doing their business in accordance with the statute.

The annual returns of the companies are, in each case, attested to by the State director of the company; copies of the statements are printed at the end of this report.

MORTGAGE LOAN COMPANIES.

THE NATIONAL MORTGAGE AND DEBENTURE COMPANY. As has been stated in our recent reports, this company is being liquidated; the character of its business was such that necessarily considerable time is required to accomplish this result. The company hopes to be able to do so within the current year.

GLOBE INVESTMENT COMPANY.

Under a decree of the supreme judicial court, issued in August last, the receiver was authorized to pay a dividend of 101 per cent. on certain allowed claims against this company, which payment is now being made. It is expected that the affairs of the company will soon be in shape to allow the receiver to close his trust.