Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1872-03-08
The New York SAVINGS Hanks.

The cOnditian OF monetary affairs 10 New
York Is not such as to inspire confidence in the
minds Of observing busress men, and has al
most obliterated all the confidence the poorer
classes have had IN savings institutions. The
occurrences Of the past six months have been Of
so peculiar character that distrust in TACT
prevails in almost every quarter. Rich and
poor alike are looking forword with misQiyInRs
to the future, fearing disaster. They are plod-
ding along with dread lest some hidden mig
fortue befAll them.
The following which we clip from long edi :
torh In tue Now York Herald on this subject,
entitled =" The Savings Danks-The Cause Of
Panic and the Remedy" is worthy Of more than
a causual thought:
When the blood 10 tainted the body becomes
unhealthy, and we have ulcers aud eruptions
and levers, During the Last few years we have
on several occasions, been on the verge OF
panic threatening TO exceed in its destructive
sway the pancs OF 1887 and 1887 The cause
OF II Is akin to the causes which produced former
panics. The laws ef business are like the laws
OF health, They cannot be violated with impu-
nifty. The tendency Of our people to over. trad
ing, giving credit, taking improper ventures,
specuiating up"n the rise and fall Of gold, has
been iraught with danger. We have been walk
ing nPou the brink Ot precpice. So when a
great disaster comes We are not in position TO
meet it, and the instinct Of safety cOmpels mon
eyed men to close their safes, call in loans, ad-
vance tho rata ce Interest and prepare for storms.
AS a consequence our business lacks stability
ana purpose, and we have the peculiar res +
lcssn1ss felt in all circles in regard 10 saving
banks. We have seen bank with millions of
deposits, TO all appearances abundantly able to
meet every engagsm mt, suddenly run upon.
MN -. H.. -
fortune like this; for any event that weakeus
the faith OF community in public institu tions is
calamity. The depOsitors in these banks are,
mainly, poor men and women. They are igno-
rant of financial matters, and with them to doubt
is to disbelieve. Their whole earnings are fire.
quenty in one bank. and when their faith is
shaken ln that, little remains. II is q blow at
the whole savings system. Tie possession Of
money Invites temptation and dissipation. We
have the hiding of money in drawers and stock
ing5, where it bears no interest. Worse than
all, perhaps, the poor frightened depOsitOrs fall
prey to sharpers. The habits ofthrlft, so nee
essary to the poor, are broken, aud the public
comfort is seusibly diminished. Peril comes
t. those who have mortgages to pay. Very few
OF Gur middle class people can raise money on n
mortgage in answer to a SUNNI, MS that comes in
night. So We might continue our illustrations
aud show how the spirit Of distrust and an xiety
must gradually permeate all branches o. busi-
The whole savings banks interest OF New York
and II Is OF ennrmOus magnitude-is tremb-
ling, and little would be needed To over throw IL
altogether and produce ruin to our business
classes slmnst as great as the ruin produced
by the Chicago fire; for, as our readers will re-
member, these Savings Banks are founded up
on simple system. The people deposit money
IN small sums. The officers invest i. 81 as TO
make good interest and secure the principal.
Many OF these investments are in the form Of
mortgages up nprivate property and in Govern
ment and Stite Bonds. Enough ready money
Is Kept in hand to answer the ordinary demands
of business. When the demads become extra.
ordinary, OF course the directors must either
suspend payments or turn their securities into
cash. The process Of converting bonds and
mortgages into money is always tedious and ex-
pensive. The fact that money is urgent re-
duces the value Of the securities in the market.
Very often holders of mortgages canno, raise
the amount, and there must be snits Of forecos-
ure. By the time money is realized, especially
under the pressure Of clamorous and doubt
ing public opinion, the securities have fallen in
value, the bank is impaird, and faith 10 shaken
in its soIvencV."
The Herald, after referring 10 some Of the
most garingly criminal cases of mism,nag cement
OF the savings institutions which have recently
failed, adds
When savings banks can be swindled with
out any check upon them, when a crowd nf de.
pnsitOrs can suddenly wake M and find that "A
dishonest secretary has walked off with the
Iun1s, when panic in the newspapers can as
semble crowds Of men. women, and children in
The highways through the watches af long, |
cold, dreary winter night-there must be a rad |
cal nndsoundness. We see no remedy for il but |
In national savings bank system"