The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-06-25

lished, and then to rig; dy impose such restric-
tons as to make it impossible for the savings
banks to depart from their legitimate objects.
The greatest care is necessary in granting
charters that the persons thus entrusted with
the earnings of the industrious classes should
be men Of undoubted responsibility and of
the highest character; for, with all the restric-
tons of law and supervision of the Banking
Department of the State, the law may be
evaded, the banks badly managed or frauds
committed. Fortunately there have not been
many failures of these institutions; still there
have been some, and there might be many,
in the event of great financial crisis, should
the funds not be well invested and protected
or the management be loose. Seeing SO many
savings banks scattered over every part of the
city and on some thoroughfares one at the
corner of every few blocks, the question arises
in the mind whether all these are necessary or
could stand o financial shock. Nothing is
easier than to establish savings bank, pro-
vided charter be obtained from the Legisla-
ture; and to obtain one there is often not
cept the small amount necessary to fit up q
bank. The depositors-the mechanics, SER
wants and Industrious classes generally-sup-
ply the capital. The bank officers are really
only the custodians of other peoples money.
Upon this they live and erect fine
salaries, and some of them grow rich. We do
not mean that they use the money entrusted to
them improperly but that the handling and
power over this money afford them oppor-
tunities, if they choose to use them, to pro-
mote their individual interests. Nearly three
hundred millions of capital is furnished by the
industrious and hard working classes in this
State for building up and maintaining hun
dred and fifty savings institutions, with their
officers, clerks and all their machinery The
bank officials then, furnishing no capital
themselves and being only the guardians of
the money OF others-of working people, for
the most part-they cannot be held to too strict
a responsibility or be too closely watched by
the agents of the State. There is another
class of institutions of stupendous magnitude
which is built up by capital furnished by the
people, and which requires little or none from
the founders or managers. We refer to the
insurance companies. Their gorgeous iron
and marble palaces, army of agents and other
employees and vast bank accounts come from the
contributions, flowing like a continuous stream,
ofthe people The originators and managers Of
an insurance company, like those of savings
I'LL. i. MI
pie furnish all that is necessary, except, per-
haps, for Office furniture at the start. How
important, then, that the State and the law
should afford the amplest protection to the
contributors to savings banks and insurance
companies; that such institutions should be
limited by the actual necessities of the COM
munity, and that frequent and strict supervi-
sion should be maintained over them The
reforms recommended for the savings banks
by the Superintendent in his report are
worthy the consideration of the Legislature
1t is a question, too, whether the time has not
come when it should be ascertained if both the
savings banks and insurance companies are on
such solid basis as to stand the shock of q
great financial crisis The interests involved
are enormous and it will not do to trust to
fair weather times alone. Like stanch ship,
they should be prepared for the most stormy
weather. Happily, there is no cause for ap-
prehension just now, but it is wise always to
look to and be prepared for the future.
FIRES In THE WOODS. Up the Hudson, and
'away down in Maine and over in Canada,
and out in the mountains of Pennsylvania,
and in other parts north of Mason and Dixon's
line, destructive fires in the woods have been
reported for some days past. A some
what alarmingly dry season for June over all