Cincinnati daily press. [volume] (Cincinnati [Ohio]) 1860-1862, 1861-03-01


IL appears by the Gazette that the people
of this city do not deposit their money in
banks go much as they did before the banks
Of deposit dropped out in 1851; therefore it L
proposed 10 salt them by chartered savings.
hanks, so as to relax this impecunious as
tripqenoy. The Gazette says Of the banking
wisdom which resulted from that crash:
"By the time the troubles Of 1857 culmi-
mated, bankers discovered that small deposit
ors who were the first to run in case oil
danger, and the last to be satisfied when sus-
pensions occurred, were not desirable class
Of customers. The business Of paying inter-
est on deposits was also at the same time
abandoned generally, as q system that was
ilegitimate when connected with regular
barking business, and therefore involving
risks greatly out of proportion TO the adj
vantsges that it secured"
The consequence was that with the demon
stration of the general insecurity of their
deposits, and with the stoppsge of interest,"
the people got out of the habit of depositing
their money, and, the Gazette thinks are
spending it. l-.
at is safe TO say that not one dollar is
saved where FIVE would be husbauded, If we
ings.banks, organized ard conducted upon
the principle Of benevolence. This is the
only plan that should be adopted with refer
eDce TO institutions of this kind. for it is the
only basis that can inspire entire confidence
on the part of depositors."
Therefore the Gazette wonders that the
Legislature will waste its time on the negro
question, instead of giving us a good system
of savings banks, TO combine profit with be-
nevolence, which we take il is a very popu-
lar type ofreligion.
From this we have several premises:
Small depositors are not desirable; they get
excited and are numerous, and then the devil
is to pay; paying interest on deposits is ile-
gitimate, when connected with the regular
banking business; therefore, we must have
chartered savings. banks to take small de-
posits and pay interest on them out of be-.
nevolence and profit.
Now, the query that occurs to US is, will
not small depositors in a chartered savings
bank be just as excitable as in any other
Does charter make bank any safer? We
presume the Gazette will not pretend that it
does. Does it give it better credit, so that
small depositors will not get excited if the
bank has the Endorsement of charter by the
State of 0hio2 If it does, we presume the
Gazette will admit that such a credit would
be Legitimate, and delusion aud snare.
How are the chartered savings banks to
be able to pay interest on deposits, unless
they loan out the money! And if they loan
the money, is not that general banking bu-
siness, with which to connect the paying of
interest on deposits, the Gazette says, is lille =
gitimate?
We ask these questions for information.
1t is our impression, however, that the bust
ness of receiving savings deposits can be
carried on more legitimately without a
charter than with one. We can imagine no
use for charter, except to give fictitious
credit to a savipgs-bank-a thing both lille
gitimate and dangerous to the people. The
charter will not increase the profits nor the
security. Those savings-banks which are
entitled to the confidence of the people from
the character and capital Of the managers.
will receive their confidence; and this is the
only basis of confidence which they should
have.