National Republican., 1873-03-11
Snrnlns.
1900 "a

From this statement 1t will be seen that the
total amount OF deposits at that date was fIOOs.
Sisg a me bills payable were 100000. The
6ank holds tls,OO OF United States bonds, a
portion Of which have been pledged as collateral
security for It's bills payable. The bank also
NOUS Washington city securities and claims
against the Boarl Of Public Works amounting
70 sSi,l'o6J. us loans upon real estate, chieny
IN the city OF Washington, amount to q, IOI.
4Is.O3. Loans have also been made mon
vouchers Of the Board Of Public Works amount
lng TO tls9,OOo upon chattel mortgage, SjT, 900;
and upon other collateral and personal security
TO the amount Of tl5O, ,G53.4O. The security for
loans upon real estate Is generally estimated TO
| he good Tor the amount Of the loan; but a lnrre
| portion OF these loans have been made npoT se-
cuT!y not equal to twice the value Of the loan,
! as required by law.
the Board VI Public Works, upon chatteI mort
gage, and upon personal security are authorized
ny section six OF the act above quoted, MANY OF
the securities upon which these loans are made
are believed TO be worth the amount Of the loan,
The value OF the other securities Is not known
and other additional loans seem to have been
made upon the security OF promlssory notes,
the bank. -
only a small portion OF these Investments can
Oe considered available" for the purpose of
raising money In the market TO meet the uneN-
pected calls OF depOSltors and II is believed that
u was not the Intention Of the act Of incoTpOra-
uon TO authorize Investments OF this character
lne 9ncers M anu trustees of the institution have
esta6llshlng branches In the different cities OF
the Union by purchasing real estate, and erect
ing buildings; by loanlng money upon real
estate OF less than one hall Of the value Of the
loan; by loaning money upon collateral security
not Immediately available for the payment Of
deposits, anu by borrowing money.
The rate OF interest offered to depositOra for
some time past has been six per cent and IL Is
believed that the undesirable loans held by The
bank have been made, to large extent, from
the desire OF the trustees to Inyest AZ sDeely as
possible the funds OF depOsitOrs at high rates OF
interest. Section six Of the act under which the
bank was organized should be amended So as 10
| prevent Investments being made eNcept upon
securities OF well-known marketable yaInes
Ihe branches OF the bank, II they are To be con-
tlnued, should also be authorized by act OF Con.
gress, and the rate OF interest to be offered 10
deposltors should also be limited by law and the
Oank required TO accumulate a stTplus 10 prO-
vide against future losses. The act under which
the institution was organized was evidently
drawn without sufficient consideration and il Il
suggested that new organization act be passed
and the present law repealed.
Win proper legislation and necessary restric.
ions the bank would he able to correct the mis-
taxes already made, to retrieve Its present and
prospective losses, and be enabled to continue a
business OF great usefulness to the class Of dc.
pOsltOrs Tor whose benefit the institution was
organized.
WASHINGTON CITY SAVINGS BANE.
The Washington city Savings Bank was au-
thorized under the special act OF Congress
passed March 8, 1854. The following Is A stare
ment OF It's assets and liabilities on January 20,
1873: ~