The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-03-03
SAVINGS NO LONGER SAFE.
M the NJ Y. Tribune.

From the Ne I. Irl0une.
Several of the finer buildings in this city
and Brooklyn erected during the past few
years, or now in process of construction, are
For the use of savings banks. This outward
show, so different from the modest policy of
those institutions in former years, when q
hired Office not much superior to the shops
of the immediate neighborhood answered
every purpose, has been forced upon them
as, to some extent, a measure of self-preser-
walton. knot of politicians at Albany has
of late years put forth each winter some
new form of endeavor to seize the funds of
the savings banks; more recently concen-
trating its efforts to get hold of what is
denominated the SURPLUS and as, each
year these demonstrations became more
alarming, the banks have to some extent in
vested their surplus in their buildings, so as
to have so much, at least, out OF harms way.
Except technically, however, this surplus can
not be said to belong to the banks any more
than the rest of the deposits in their hands.
They are but the trustees, whether as to prin-
cipal, or interest, or accumulation over in
terest, of the money of their depositors.
Those depositors are almost exclusively work
ingmen and workiDgwomen; and 1t may be
said without exaggeration that these build
ings-the savings of Saving Banks-represent
in every brick and stone the tolls, the priva-
tions, the hardships of the laborng classes.
But the appetitesof the ring will no longer
be restrained. They prepared legislation to
seize the unclaimed deposits but on exami-
nation these dwindled into thin air, the
largest bank reporting that not $1,000 was
likely to be utterly unclaimed At present
the ring especially want something to supply
the too evident leak in the canal manage
ment, and bill for coniscating to the canal
fund fifty per cent. of the savings banks
surplus is before the Legislature OF course,
the other half of this surplus will soon fol
low, and then the deposits. In almost the
first experience of savings banks it was found
necessary to set aside some funds for feal
of "run," and the keeping of a surplus
for this contingency was specifically
authorized by the Legislature because Of its
obvious necessity. The money of these in
stitutions is largely invested in permanent
securities, to realize cash upon which in
week, or even a month, would be difficult j
not impossible. But no such time is allowed
during a ''run." In one instance half tn
entire deposits of large savings bank wer
drawn out in two days, during an unfoundet
panic with regard to its management; but tn
other banks, being able to lend to 1t thei
surplus funds, sustained it through tn
danger, and thus the depostors and tn
community were saved from the disaster of
general panic.
Other portions of the bill now pending ar
calculated to prevent respectable citizens fror
connecting themselves with the further mar
agement of savings banks; to cripple the jud
cious and pre-eminently successful system b
which these banks are conducted; and, i
general, to make them part of the politics
machine by which this State is controlled
Not the least of the destructive results whic
must follow the execution of such enactment
would be the withdrawal of an immens
amount OF money now invested in mortgage
on real estate in these cities, Immediately il
volving the owners Of the mortgaged pro
perty in extreme difficulties, since such NOR
cages after the first year Of their existenc
are terminable on a few days notice. B1
the most important consideration is the effeC
which these measures would have upon df
positors The habit Of saving money in trn,
at interest is of slow growth in a workin
community. Ii indicates a distinct advanc
in comfort and prospective wealth. But
may be killed in an hour. Let the State ste
in and contiscate such property, and in In
trious economy will be thenceforth unknown