New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-16

neither Congress nor the President would
agree to abide by it.
THE SAYINGS BANKS OF NEW-YORR.
The aggregate amount due to the depositOrs
in the 1853 savings banks of this State now
reaches the enormous total of 1904 100000, hav-
ing increased S19,4OO,0O0 from Jan. /. 1874, to
Jan. 1, 1875. This seems an astonishing sum, and
doubtless many persons find it difficult to ac-
count for so large an increase in twelve
months of such depression as now prevails in
almost every branch of trade and industry.
The fact is that the depOsitOrs in savings
banks are far from being confined to the
humber walks of life. The mass of deposits
is owned by persons of tho middle CLASSIFY
those who are generally recognized by their
friends as swell Off Had we in the State of
New-York a system of interest-paying deposit
and discount banks, conducted with the same
skill and by the same methods as the Scotch
banks, it is altogether probable that two
thirds or more of our present savings banks
deposits would be found in the ordinary
banks of discount. AS it is, the aggregate OF
savings banks deposits ia much greater than
that of the National and State banks put to-
cethcr. The reason is that the savings banks
nav interest and are deemed to be more
secure. In Scotland the confidence OF all
classes in their commercial banks Is perfect,
and consequently the savings banks get only
the small sums which are saved by the poorest
of the people. In comparing the deposits In
the savings banks of the United States with
those of European countries this essential
difference in the character of the deposits is
seldom attended to.
The same circumstance affords an easy ex-
PLANTATION of the increase in the aggregate OF
deposits held by the savings banks. In En-
gland or Scotland, under condition of in
dustry and trade similar to that now existing
here, the unemployed surplus of deposits in
The discount banks would rapidly increase, the
rate of interest would fall very low, and the
price of consOls and other frst-class interest
bearing securities would rise. Similar eff
fects indeed can now be traced in
this country. The increased demand for
first-class securities has already led to heavy
importation from Europe of United States
bonds, movement winch has direct ten
dency to strengthen the financial position OF
the country. But in the letter which we pub
slract of the forthcoming report of the Bank
Superintendent, it is stated that the unem-
plOycd cash belonging to the various savings
banks has increased during the year from
$l4,158O7j to $193OO,O35, being S5,142,O10, or
more than 80 per cent. Upon this important
fact our correspondent comments as follows:
The reports by the examiners show a very novel and
unusual condition several OF large New
I,
they unable to loan There borrowers offer
ing good security TO whom the banks will loan. The
income Of banks is materially reduced their not
using large sums OF money which lie idle in the vaults
OF the banks waiting for the opportunity for safe and
remunerative Investment Tho fact demonstrates the
superabundance Of capital Of currency tho present
time.
The fact demonstrated, as it seems to ia, is
the dizziness OF trade. The rate of interest,
which in the long run follows and is gov
erned by the rate of profit which can be OBJ
tanned in ordinary business, is now low be-
cause trade is dull. United States five per
cent bonds can still be obtained however for
about par in gold, so that savings bank man
ayers can hardly plead that it is impossible
for them to invest their money to advantage.
1t is their duty to look more to safety than
"a III
funds. Unless we are much mistaken
in our inference from past expe-
rience, the five per cent bonds of the
United States at current prices are most
desirable purchase for any savings bank.
Doubtless many persons suppose that as we
approach the year 1879 the present premium
of fifteen per cent ON gold and United States
bonds will disappear. We question very much
whether the gold premium will disappear I'M
less something is done to make it disappear !;
but even if it does, the premium on five per
cent bonds will outlive the gold premium,
always supposing that we do not get into an
other war, and that the finances are not man
aged any worse than they have been.
Still, the uncertainty which characterizes
the ups and downs of the gold premium
causes an exactly equivalent uncertainty in
regard to the prospective value Of United
States bonds, and it is one of the worst of
the many bad consequences OF having q gold
premium. Were our finances on the same
basis as those of the other great commercial
nations, there would be some certainty about
the future prices of Government bonds. In
Great Britain for many years the price OF
consols has been subject only to trihing
variations. With us the case is exactly
the reverse, and for almost every other nation
on the globe the value of a United States
bond has been steadler than for our own
people. A Frenchman, an Englishman, or a
German can own our bonds without subject
ing himself to the risk of q downward turn
of five or ten per cent in the market price,
but an American cannot disentangle his in
vestment from the changes which occur from
month to month in tho gold value of the
greenback When will the people of the
Limited Stataa discover that ID Ia q