During the year the transactions in bank stocks have been as follows:

7,698 shares have been eliminated by the liquidation or reduction of capital of certain banks.

5,160 shares have been sold.

1,438 shares have been bought, distributed among 29 banks, 213 being the largest number purchased by any one bank.

The percentage which each class of assets bears to the total is shown in the table.

BANKS IN HANDS OF THE COURT.

Millis Savings Bank.

The receiver of this bank has a small amount of money in his hands, awaiting decree of the court, and efforts will be made to close up its affairs during the current year.

Framingham Savings Bank.

During the past year the receivers of this bank have made. material progress in the settlement of its affairs, all of the collectible assets having been converted into cash.

The receivers, on April 3, 1901, presented a third report to the court, asking for the allowance of a third and final dividend of such per cent. as the court might determine; whereupon a final dividend of 8 per cent. was ordered, making in all 78 per cent. paid to depositors in liquidating the affairs of the institution.

Of the first dividend of 50 per cent., amounting to $413,682.60, there was unpaid Oct. 31, 1901, .

$8,859 11

Of the second dividend of 20 per cent., amounting to $165,473.04, there was unpaid Oct. 31, 1901, .

3,547 91

Of the final dividend of 8 per cent., amounting to $66,189.22, there was unpaid Oct. 31, 1901, .

1,557 69

A condensed statement of the transactions during the year ending Oct. 31, 1901, is as follows:

The receivers of this bank duly filed in the court a list of all unclaimed dividends, and a decree was issued requiring publication thereof.

Upon expiration of one year from the time of giving such notice it will be the duty of the receivers to make another report to the court, at which time it appears probable any amounts remaining unpaid will be ordered paid into the treasury of the Commonwealth, and the books and papers of said insolvent bank, including those relating to the receivership, will be deposited with this Board.

VERIFICATION OF DEPOSITORS' BOOKS.

Under the provisions of statute it became necessary for the several banks to call in the books of their depositors at some time during the last calendar year. The statute provides this shall be done under rules to be prescribed by their respective boards of investment, duly approved by this Board.

This Board endeavored to have the work performed in as nearly a uniform manner as the varying circumstances in the several banks would admit, and hoped to be able to embody

in this report a tabulation of the result. A few of the banks, however, began the verification before submitting to this Board the rules they had adopted for doing this work, hence such institutions were unable to make as full a return as was desired by this Board.

A compilation of returns received reveals the fact that in the aggregate only about one-fifth of the outstanding books were presented. In some of the banks, books which were brought in for the entry either of a deposit or a withdrawal were not included in the list of books presented for verification, only those specially presented for that purpose being counted.

Sixty-five banks report that no differences were discovered between the books of the depositors and those of the bank; in most of the others the differences were slight.

In one bank a difference of $812 was discovered, a former treasurer having erroneously entered a larger sum on the books of the bank than was actually deposited, the original difference of about $500 having been increased to the sum mentioned by the addition of dividends accumulated during the term of thirteen years in which the book had not been presented at the bank. Had an accurate trial balance been taken at the time, as now required, the error must have been sooner discovered.

The number of books reported as verified was 317,795, representing deposits of $130,948,145.22, being nearly onefourth of the amount of deposits reported as outstanding at the time the books were called in.

The whole number of books in which discrepancies were discovered was only 816, which well illustrates the accuracy with which the accounts of the banks generally have been kept.

In the light of this year's experience, it would seem that the law, as at present applied, was not accomplishing the desired result; and as in all cases it involves a considerable increase in the work of the officials and clerical force of the banks, and in many an added expense, it is suggested that a less frequent call for the books and a more extended examination would secure more satisfactory results; and it is therefore recommended that the law be amended so as to provide that the books be called in every five years, and that the work be then done under rules prescribed by this Board.

THE GENERAL BANKING LAW.

Chapter 115 of the Revised Laws (formerly chapter 118, P.S.) was referred to by the commissioners having charge of the recent revision of the statutes, as follows: "Many of the provisions of this chapter are antiquated and not adapted to present modes of business, and the chapter requires revision by a legislative committee on banks and banking before being enforced."

In view of the fact that the charters of many of the national banks are soon to expire, the present would seem to be an opportune time to consider whether or not it is desirable to have a system of State banks in this Commonwealth, inasmuch as some of the national banks are considering the expediency of reorganizing under a State law, - did a satisfactory one exist.

Should such a law be enacted, it ought effectually to prevent the continued application for the incorporation of trust companies in the smaller cities and some of the towns of the Commonwealth. Most of the trust companies recently incorporated are misnamed trust companies, and are, in fact, simply State banks.

There is at present a foreign banking corporation doing a general banking business in Boston, and, on the question of admitting such institution, the Attorney-General, in an opinion addressed to the Commissioner of Corporations, referring to the statute above mentioned, says: "Whether a law should be permitted to continue upon our statute books, which is inoperative so far as it relates to domestic corporations, but which may be taken advantage of by foreign corporations in the manner in which it has been by this corporation, is a question for the determination of the Legislature."

It is the opinion of this Board that, whether the existing law be allowed to stand on the statute books or not, provision should be made to prevent, or at least to control, the admission of foreign banking institutions; for, although the one herein referred to is in good repute, others may not be, and yet, if they desired, must be permitted to file their papers and transact business without any supervision, either State or national.

INCREASE IN BUSINESS OF THE BOARD.

During the past ten years there has been an increase of 56 in the number of institutions under the supervision of the Board, the assets increasing over $300,000,000 during the same period, while the clerical force of the Board available in the examinations remains unchanged.

In view of the constantly increasing number of institutions, as well as the enormous growth in assets, necessarily involving more and more time each recurring year in the examinations, it is felt that the time has arrived when the services of another permanent clerk are absolutely necessary to enable the Board to give that measure of time and attention to the discharge of its duties which seems desirable, and which the public undoubtedly expects.

Formerly, when there were but two commissioners, some of the work of examination of co-operative banks was delegated to the clerk of the Board; but, as there appeared to be no legal authority for this action, it was subsequently discontinued, and all the co-operative banks are now visited by a commissioner.

The examination of a co-operative bank differs from the other work of the Board, being largely clerical, and in most instances could be efficiently performed by a clerk, acting under the direction of the Board.

The Board respectfully suggests the desirability of legislation to enable it to delegate to its clerical force the performance of the duties above referred to, and also the creation of the office of third clerk, believing that the adoption of the two measures would afford to the commissioners the much-needed time and opportunity for more extended and thorough examination and inspection in directions which they deem essential to a full and complete performance of official duty.

TRUST COMPANIES.

The 36 companies, including the Massachusetts Hospital Life Insurance Company, transacting business on October thirty-first last, held deposits in their banking departments of $142,629,778.81, with other liabilities of $31,575,546.46 and total assets of $174,205,325.27.