The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1874-01-14
TIE CRIMINAL INSANE.

TIE CRIMINAL INSANE.
The suggestions Of the COMMITTEE
Of the Medical Society Of Peunsylva
MIA, appointed 10 prepare a memori
al 80 the Legislature in reference t.
the proper care and treatment Of in
sane criminals, which will 4e sub
mitted to you, merit your respectful
consideration. The hardship and i'm
policy of associating this class of th,
insane with those sent to hospital
for medical and moral treatment mus
occur to every rational mind. Th'
restraints necessary to secure the few
criminal insane in every hospital bea
with like rigor upon all the occupants
to many of whom the unusual con
linement is extremely hurtful, Will,
it is obvious that if the ordinary dis
cipliae is observed this criminal elias:
are liable to escape and renew theil
deprcdations upon society. Nor dC
the intimate relations that must exis
between the innocent and the crimin
al insane when confined together i'm.
prove the morals of the former, while
some sensitive minds among these
poor unfortunates feel degraded by
enforced contact with those who have
been expelled from society for their
crimes 1t seems to be the duty OF
the State therefore to provide for the
separate confinement Of the criminal
insane.
STATE BANKS, SAVINGS, TRUST coMPA-
MES.
| will adhere to the principles laid
down by Milflinburg and Woods
Run vetoes of last session. Recent
events have demonstrated the ncces-
sitv OF fixing proper limitations to
the powers conferred on those mon
eyed corporations, and have afforded
q practical illustration Of the wisdom
Of rigidly conlining them to objects
that are recognized by the people as
distinctivelv belonging to such insti-
tutions. When a bank of discount is
permitted TO become also IA saving
fund, a trust company, an Insurance
company, to buy and sell real estate,
Gnd 10 have the rights and privileges
Of a building association, it is difficult
TO determine what are its functions
or what security community has
for The safety of its deposits. | have
always entertained serious doubts as
to the propricty OF banks Of discount
paying interest on deposits, and am
now convinced that this pernici0us
practice should be prohibited. Money
will always flow to banks paying in
terest on deposits, and the large sur
plus thus aggregated, srduood by at
Jractiye offers, is sent to the great
money centors, where it gives more
impulse to speculation, while the
sections from which il is drawn suf.
fer 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 financial crisis Of 1857,
and of this wear. When banks have
large deposits on call and have their
loans on time, in the event Of any
great s,fingeney in the money mar
kct. disaster is almost inevitable.
Within few years many State
banks have been chartered, with the
captivating names of savings banks.
designed to attract deposits. These
banks and savings funds are entirely
distinct In organization and purpose,
and should never be associated in
their management The one Isl bank
of disoount. intondod to supply the
wants of business, the other is simply
a repository for peoples money, limit
ed to small amounts TO each individu-
al. the aggregate of the amounts thus
received to he invested in mortgages
on unincumbered property worth
double the amount of the mortgage,
and in secure public stocks, in safe
proportions. 4 bank is conducted
with the avowod object OF beneHt TO
its stockholders a savings fund is
presumed to be managed entirely in
the interests of depositors among the
laboring classes, or those of limited
means and business qualifications.
and the essential requisites of which
are such prudence and safety in the
disposition of the funds as will best
enhance their value for the benefit of
those classes of depOsitors. Men in
charge of savings funds should have
no personal ends to serve; should be
above temptation, and receive their
highest reward in the good accom-
piished by inducing q saving habit
which, once fixed, leads to prosperi-
".
The objects Of trust companies
should be equally specific and well
defined. Some of these companies
are invested with very extensive
powers, are the depositors ofimmense
sums Of money and charged with the
keeping and management Of vast and
important trusts. 1t should he the
duty of the State to see that their af-
fairs are administered with fidelity,
not only to the individuals who con-
tide in their management, but to the
public who are interested in the secu-
rity and stability of these companies
as barriers to wild speculation and
its consequence financial panicS.
Allow me to suggest, therefore, !
that all State banks. savings funds |
and trust companies be made subject |
to the examination Of a committee APP
pointed by proper authority; that
these institutions be required to pub |
lish quarterly statements, under oath
Of the amount OF their assets and |
and the names of their of
licers; that by II general law their
be made personally liza
BILE for double the amount of stock
held by them; and that they be COM
pelled to have constantly in their
vaults cash reserve of ten per cent.
Of their net liabilities. These examin-
ltions, reports and restrictions can
not be hurlful to institutions ofcstab-
ished credit and high character,
while they will disclose the unsound-
ness or mismasagement of those that
ought not to exist.
INSURANCE.
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