The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1874-01-15


the unusual confinement is extrsmeriy
hurtful, while it is obvious that II the or.
binary discipline is observed this criminal
class are liable to escape and renew their
depredatious upon society Nor do the
intimate relations that must exist between
the innocent and the criminal insane
when confined together improve the
morals of the former, while some seusi
tive minds among these poor uniortunates
feel degraded by enforced contact with
those who have been expelled from so
ciety for their crimes. 1t seems to be the
duty of the State therefore to provide Tor
the separate confinement of the criminal
insane.
STATE BANKS, SAVINGS FUNDS, TRUST
COMPANIES.
still adhere to the principles laid
down in the MIfflinburg and Woods Run
retoes of last session Recent events
have demonstrated the necessity of fixing
proper limitations to the powers confer
red on these moneyed corporations, and
have afforded practical illustration Of
the wisdom Of rigidly confning them to
objects that are recognized by the people
as distinctively belonging to such instltu
tons When bank of discount is per-
mitted to become also savings fund,
trust company, an insurance company, to
buy and sell real estate, and to have the
rights and privileges of a building asso
citation, it is difficult to determine what
are its legitimate functions, or what
security community has for the safety
of its deposits | have always entertained
serious doubts as to the propritey of banks
OF discount paying interest on deposits, and
u,n now convinced that this pernicious
practice should be prohibited. Money
will always How to banks paying interest
on deposits, and the large surplus thus
aggregated seduced by attractive offers is
sent to the great money centres
where il gives more impulse TO specula.
tious from which it is drawn suffer in all
their enterprises from the higher rates
they are compelled to pay for the money
remaining at home. This system of
purchasing deposits was confessedly one
OF the principal causes OF the fnaDcia
crisis Of 1857, and of this year. When
banks have large deposits on call, and
have their loans on time, in the event of
aay great stringency in tie money
market, disaster is almost inevitable.
Within few years many State banks
have been chartered, with the captivating
names of savings banks, designed to at
tract deposits. These banks aud savings
funds are entirely distinct in organiza
tion aud purpose, and should never be as
saciated in their management. The one
is bank Of Discount, intended to supply
the wants of business, the other is simply
ID repository for peoples money, limited
su small amounts to each individual, the
aggregate Of the amounts thus received
10 be invested ia mortgages on unincum-
bered property worth double the amount
of the mortgage, and in secure public
stocks, in safe proportions A bank is
conducted with the avowed- object of
benefit to its stock holders ; savings fund
is presumed to be managed entirely iu
she interest of depositors among the labor
ing classes, or those Of limited means and
business qualifications, and the essential
requisites of which are such prudence
and safety in the disposition of funds as
teneft of these classes OF depositors
Men in charge of savings funds should
have no personal ends to serve should
be abaye temptation, aud receive their
highest reward in the good accomplished
hy inducing saving habit which, once
fixel, leads to prosperity.
The objects of trust companies should
l. Ill
Some of these companies are invested
with very extensive powers, are the de
positories of immense sums Of money and
charged with the keeping and magage-
pcnt of vast and important trusts. 1t
should be the duty of the State to see
that their affairs are administered with
22eity, net only to the individuals who
confide Ia their management, but to the
public who are interested in the security
aSd stability Of these companies as barriers
20 wild speculation aud its consequent
financial paaics.
Allow me to suggest, therefore, that all
State banks, savings funds and trust com
paDies be made subject to the examina
zion of committee appointed by proper
authority; that these institutions be re
quirsd to publish quarterly statements,
under oath, of the amount of their assets
and liabilities and the names of their Of
ficers; that by general law their stock
holders be made personally liable for
double the amount of stock held by them;
and that they be compelled to have con
stantly 10 their vaults cash reserve OF
ten per cent. OF their net liabilities
These examinations, reports and restric
tions, cannot be hurtful to institutions of
established credit and high character,
while they will disclose the unsoundness
or uisnauagcmcnt of those that ought
not 10 exist.
INSURANCE.
The Department, established by an act
approved April 4, 1873, for the supervi
sion OF the insurance interests of the