The Portland daily press., 1872-02-15
The Savings Banks.

banks to invest in whatever securities that seem
to have the most money in them upon the face
regardless of permanency of the investments
Mr.. Morris supported the minority report. He
spoke as follows:
regard the Senator from Somerset, on gen.
eral principles as one of the clearest-headed
members of this board, and regret the necessity
which seems to rest upon me of opposing the
views presented by him on Friday. His argu-
ment it seemed to me was not made with his
usual cloarness and good Judgment. His first
point was an attempt to show that series of
amendments to the present law, recorded in diff
ferent volumes, and neither the old or the new
having any classification, was simple, more
easily understood and less likely to confuse the
minds of those wishing to consult them, than
would be the case with a new draft, classified
and properly arranged in one place, under ap-
propriate heads. 1t reminded me of the expe-
rience of friend of mine, in imparting a
knowledge of the Bible to his little boy. He
told him about the creation, the flood, the fiery
furnace and Daniel in the lions den, asking
him in each case if he believed this. The boy
said: Eyes, if you say it is So" Finally he re-
lated to him the history of Jonah, and asked
him if he believed that. "No," says the boy,
"and do not believe any that you have told
me now" And it seemed tome that the effort of
the Senator at the commencement to argue
down self-eyident fact, was calculated to ex-
cite feeling of distrust in regard to other
points he might make He attempted too
much
After disposing of this, he proceeded to take
up the new matter in the minority report, dis
posing of it in the following summary manner,
taking up the sections separately. He said in
| substance that they were either mischievous,
uncalled for, or impracticable, with few ex-
| ceptions, which he said would neither do any
| good or harm. AS [ cannot believe the Senate
will take such sweeping statements for argu-
ments, propose, very briefly, to discuss some
| of the points.
He was opposed to section eight which re-
lates to restriction of investments. He had for
| merly favored this measure; but after giving it
much thought he decided that limiting the
rates of dividends to sig per cent. would accom-
| plish this purpose. | am willing to submit this
point to the Senate without enlarging. On the
side is the provision in the minority report to
restrict investments to United States and New
England securities, having for its object greater
security of tine deppsitprs and the keeping OF
our capital at home for better Development of
the material interests. OF our State. On the
other there is no restriction; nearly $4,000, 900
has gone abroad to build up other States.
While every department of industry in our
State Is suffering to-day for want of it, and the
only argument adducei ~ support ofithis is, the
supposed Influence WHICH Mmitng the divi-
dends to six per cent: would have;
But the stfangest Of all, ID the view entertain
ed by the Senator In relation to the duties of
bank examiner, which Office he has filled. The
minority report provides for a thorough exam
nation of the banks " determine if they have
the surplus Required, il theiI Investments are in
conformity to Jaw, and if the valuation Of their
assets is made on correct basis, as on these
points in great measure depends the security
of the depositors. But the Senator says this Is
impracticable, that it is impossible for the Bank
| Examiner to make such an examination as
which might arise from the modelling of those
who were ignorant of this business, who were
not capable of examining the subject as a
whole. 1 am aware that know but little about
banks or any other subject 1t Senators knew
ence, they would not think it necessary to re-
mind me of it, and suppose have something
of the egotism and confidence, which is so Of
ten associated with ignorance. For, notwith-
standing the assertion of the Senator i am con-
f1dent that q man of moderate business capaci-
ty could make an examination sufficiently &C
curate to determine whether bank was solv-
ent or not. l regarded the appointment of the
Senator as Bank Examiner an excellent one,
and hoped and expected, that he would be re-
appointed but # these are his views in regard
examination to be impracticable and impoSsi-
ble most earnestly hope he will not be reap
pointed; but that we shall have some one who
does believe in examinations and who will
make them: But am happy to say that there
is one thing in which we do agFee. He says the
present compensation of the Bank Examiner is
all it should be- L think so to- and further than
this, / think the compensation is four dollars
per day and expenses, more than it should be.
The whole matter as it now exists, is farce
At "a per day and expenses paid the Examiner
visits bank: They have pleasant chat about
banks in general the evils of legislation and the
necessity Of having as little done as possible,
or to use their own words, ito be let alone, -
has been accomplished? If rottenness does not
already exist this looseness will breed rotten
ness. All that the Market Bank wanted was to
be let alone This was all Boss Tweed and his
associates wanted. This is a great interest one
OF more consequence than the private wishes of
the Senator from Somerset and myself 1t is
the interest of those who are not able TO help
themselves, What is now transpiring in New
York should be warning to us; l will read to
| you an extract from last weeks financial arti-
Gle il one OF the ablest papers in New York
.9T4e Market Savings Bank. The recent
failure of this bank is due to a gross and out
rageous swindle, for which the guilty party OF
parties ought to be indicted and punished The
Superintendent, showed assets to the amount
of 81, 120, $780, against liabilities of 81, 081,
| 1873 due to depositors, leaving a surplus Of
S$339 149 81. Mr.. Dennis the receiver of its as
sets, in his recent statement, shows the bank
to be insolven by $3S7, 6967S. Mr.. Worth, sub
sequently appointed as receiver thinks that the
bank will not be able to pay more than thirty
five or thirty-seven cents on the dollar This
case, with others of recent date, calls loudly for
an immediate and thorough revision of the
savings bank system in the State of New York.
What has happened with the Bowling Green
Savings Bank, the Guardian Savings Ipstitu-
tion and the Market Savings Bank may hap
pen with any other savings bank in the State
The law nosg gives the depostors no protection,
except that which arises tfolp the discretion
and integrity of the managers; and this securi-
| ty facts prove to be insufficient. The time has
come when legislatures ought to interpose their
power, and In every State place savings banks
under such regulations OF law, equally applica.,
the depositors Nothing short of this will or
should restore public confidence in these insti-
| tutions."
| This describes the case exactly, and this is
the precise point which the MINORITY fepoIE en-
deavors to cover. And yet our Bank Examiner
says these provisions are mischievous, uncalled
for. impracticable and impossible. You will
see that there is a very wide difference in the
views entertained by the Senator and myself
The Senate must decide between US,