Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-03-11

FROM this statement it will be seen that thu
total amount OF deposits at that date was
sa,oCs, GAP g. The bills payable were si66 900
The bank holds Sis, go OF United States bonds
a portion of which have been pledged Is col
lateral security for its bills payable. The bank
also holds w ashingtOn city securities and claims
against the board Of public works amounting to
Sofi! o-eS Its loans upon real estate, chiefly i'm
the city OF Washington, amount to &1,79i, A sos.
Loans have also been made upon vouchers of
the board OF public works amounting to
$4,000; upon chattel mortgage, $37 600; and
upon other collateral and personal security to
the amount OF $3.50, $3.50. The security for
loans upon real estate is generally estimated to
be good for the amount OF the loan; but large
portion Of these loans have been made mpSn
security not equalto twice the value OF the loan,
az required law.
1t is claimed that the loans upon vouchers OF
the board OF public works, upon chattel mort
gage, end upOn personal Eeeurity are author
lied by section Of the act above quoted. MANY
Of the securities upon which these loans. re
nj made are believed to be A.rth TIE amount Of
KNOWN, and other additional lOS IS seem TO have
been made upon the security OF SrOmissOry
notes rather than upon the, Collateral security
held by the bank.
Only a small portion of these inv estIn snts can
be considered "available' for the purpose Oh
raising money in the market to meet the unex-
pected calls of depositors, and it is believed
that 1t was not the Intention Of the &c of fncor
poration to authorize nvestments OF this char
acter. The officers and srustees OF the institu-
ton have violated the act under which it was
organized by establishing branches in the diff
ferent cities of the Union by purchasing real
estate, and erecting buildings, by lOaning money
upon real estate OF less than One-half OF the
value OF the loan, by loaning money upon col
lateral security not Immediately available for
the payment OF deposits, and by borrowing
money. ~ a. 'v.t
The rate Of interest offered to depositors fol
some time past has been six per cent, aud it is
believed that the undesirable loans held by the
bank have been made, to a large extent. from
the desire of the trustees to invest speedily A.
possible the fumes of depositOrs at high rates OF
interest. Section o of the act under which the
bank was organized should be amended so as to
prevent investments being made except upon
securities Of Teu-knsxn Marketable values
The branches of the bank, If they al. - :. -.
tinued. should also be authorized by act of Con-
gress, and the rate Of interest to be offered to
depositors should also be limited by law, and
the bank required to accumulate a surplus to
provide against future losses. The act under
which the institution was organized was evil
IDENTIFY drawn without sufficient consideration
be passed and the present law repealed. With
proper legislation and necessary restrictions
the bank would be able to correct the mistakes
already made, to retrieve its present and pros
pective losses. and be able 70 continue a busi-
ness OF great usefulaesS 20 the elassof depo,tor,
49,, - whose benefit the institution was organ
ICED.
WASHINGTON CITY SAVINGS BANK.
The Washington City Savings Bank was
authorized under the special act of Congress
passed March 8, 1864. The following is a state
ment Of its assets and liabilities on January ..
1873: