New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-02-27
ALBANY.
, GENERAL SAVINGS BANK LAW.

GENERAL. SAVINGS BANK LAW.
AN ACT TO PREVENT SAVINGS BANKS FROM ACTING
AS BANKS OF pIscoUNT-TRusrEEs NOT 10 bE
INTERESTED IN THEIR BANKS EXCEPT AS DE-
pos,ross-KOw DEPOSITS NAY BE INVESTED.
VRoM rss REGULAR CORRESPONDENT OF ihh 'h"oN'
AIatSy. Feb. @-Mr. Schuyler, Chairman OF the
Bank Committee, reported a general savings banks
hill which is fusion of various parts OF MI
Princes bill and the Senate bill, with numerous
suggestions Of the Committee. IL is designed 10
'n,event savings banks from operating as banks OF
discount and TO restrict them as nearly as possible
10 their legitimate functions as repositories OF the
.av;nrs of the door, as well as 10 put them under
The control of the Bank Superintendent and push
them away from the doors of the Legislature. Mr..
sehuyler's experience as Bank Superintendent mas
contributed largely to the work OF the committee
The bill provides for the organization OF savings
hanks and for the proper regulation OF those now IN
existence the first section making all existing saw
ipps banks subject to the provisions OF the act III
is provided that banks may be organized only with
the approval Of the Superintendent OF the BANK De-
partment whose decision is final. Trustees are Tor
hidden to be interested directly or indirectly In the
bank with which they are connected, or to borrow
its money either directly or through partners OF
Others but are allowed to become depositors In
yestInents of the bank are required to be made IN
cations of States that have not made any de1auit III
the payment of interest during the last ten years. OF
IN the bonds of cities counties towns or villages OF
this State except those that have been Issued In ana
of railroads or other corporations, or in bonds ana
marriages worth twice the amount lent Ten per
cent of the deposits may be kept on hand 1or USE
Seposited either IN a bank or trust company-ln no
case the deposit in any one bank or trust company
exceeding one-quarter of the deposits of that bank
or loaned upon call upon collateral securetis which
shall be the same as those in which banks are
allowed to invest The rate of interest is not to
exceed per cent and individual deposits are limited
TO $500 Banks are allowed to accumulate not
more than 10 per cent of the amount of deposits as
surplus which may be used. in the erection or pur-
chase of a bank building. Any surplus over 10 per
cent is to be eQuitaby divided among the depositors
every three years. Any savings bank may change
its name and site with the consent of the Bank
Superintendent, and not otherwise. The Super
iptendent is required to examine each bank at least
once in two years, and on finding that bank is
conducting its business in violation OF the law TO
inform the Attorney General, who shall take pro-
ceedings 10 wind up the bank. Savings banks are
not allowed to pay any money TO deposltors on
checks or other papers except on passbooks OF other
certificates of deposit and other provisions are made
to prevent savings institutions from acting as banks
of discount. 1t is also made misdemeanor for any
bank OF banking association not duly chartered as
savings bank, TO advertise itself as such.