New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-25

rRoA REGULAR CORRESPONDENT OF THE TRBUNE.1
ALBANY, May 24.-The legislation of the
te session relative to banking interests though not eov
Hins all tine ground which financial minds have con-
ndered very necessary to the perfection OF the state
banking system, has been very general, and
tends greatly the greater safety, not only OF
kbe' banking institutions, but of their depositers-
The Savings Bank bill which provides for a
sniform system OF organization and management
among all savings institutions Of the State is Of IL
self long step forward in the direction Of greater
sury to that great of the population the savings
depositors 1t has already been signed by the
Governor and Is law. In effect 1t repeats all char
ers Of savings banks in the State which in fern Of
special These charters contained such diverse pro-
visions that few of these important institutions were held
the restrictions granted the same privileges
The present bill authorizes the superintendent OF the
Sank Department to organize savings banks under the
following conditions; ----~
Not less than persons may associate themselves 10
gether, twOthrds of whom reside in the county
the bank be located, and make certificate az
Intention giving the and place of the bank. the ad
sress and business of each Of association.
and declaring that each member accepts such duties and
published four weeks before its issue IN newspaper OF
HE county and OF large circulation copies must also be
died in the County Clerks Office and the BANK Dc
partment, and be sent TO every other saIlngs
lions formation of bank. If they have any
before the Superintendent OF the Bank department VINO
required to ascertain, BY examination OF witnesses
and personal inquiry, the moral character tor lntegr
stees OF the PROPOSED bank and also the necessity Of
mch bank &c if satisfied upon all these points, the
Bank superintendent may issue the authorization to the
Couny Clerk direct the trustees 10 open their
office II satisfied he may Issue certificate OF re-
iusal in the same way, without giving his reasons
therefor
The Improvement upon the old system Of passing special
charters by Of Legislature is evident at glance
ANY Senator according legislative custom, could here
sofore organize bank 1t only necessary TO claim
that he knew the OF the county better than any
Dher Senator and with the aid of similar argument in
the Assembly and before the Governor the bank was
organized The character Of the investments by savings
banks are materially improved Instead of allowing
windmill" stock be taken Of old, the new law
restricts investments stock and bonds for the pay
pen of which the faith OF the United States is pledged
bonds and mortgages, city, town. county, and state
bonds, and the bonds Of other States which have
defaslted payment of interest within the last 10
years Under the noted here OF the banks
have proposed under their old charters 20 invest In
bonds of District OF Columbia but nOrX bstandng
opinion Attorney General Williams that these are
secured by the pledged faith Of the United States Govern
ment, Superintendent Ellis and AttOrneyGener Pratt
have remained in doubt about 1t and have refused to
allow snch investment. The provision is somewhat
broader than the old and supposed to have been
intended these very securities Upon that ques
the superintendent has already asked the opinion OF
The Attorney General The available fund of savings
banks restricted 10 per Of the whole amount Of
deposits and clause is inserted providing that this fund
may only be loaned the class Of securities II
which they are entitled TO invest IL.
of their surplus building, except by permission
of the Banking Superintendent They restricted also
payment of than per cent on deposits
and are required in three years thesurpus ever
10 per cent after paying the g per cent interest," 10
make raable division among the depositors
In the shape OF declared dividend The !
powers Of tie banks also severely restricted
They are prohibited by the new provisions from dls |
counting notes selling exchange or drafts or making
collections of paper The examinations will be
fore that a.
assessed pro rata upon all the banks and reports are TO
be required the LIST Of every January Inc reports
nusttbe a OF surplus, Investments deposits
&C. and shall based upon the certified examnauonoi
the accounts by a committee of three OF the trustees
The superintendent is empowered at his dscretoh 10
change the name and location of savings bank on
the application Of majority OF It's trustees aer Lie
usual publication Of notices Of intention
The act amending the law relative to trust companies
has also been signed by 1t simply provides
that trust COMPANIES nd banks discount under
certain conditions reduce their capital STOCK where
their capital is uninpaired, and pay the overpius 70
stockholders The conditions the assent OF two-thdS
of the stockholders and the passage Oh ResoIu
uoas to that effect by majority OF the
directors the Superintendent of the Banking Depart
,nent To make an examination Of the assets and naDi
ties and direct the reduction be made SATISFIED py
such examination that the safety OF the oanK VIII MOI 10
Unmarried This passed at the suggestion OF MI
Ellis in his last annual report. Under the law as now
euced their capital more available amount ana re-
neyed themselves of a burdensone taxation on tne
remainder. The GerInan-AInerican Bank OF Ne"-Aorh
alone has reduced its capital from @2'ooo'ooo W ,
81 600 600 since the bill became a law.
The mn 10 amend the:genera law relative to Building
sfutnal Loan and Accommodating Fund Assocatohs' |
which passed both Houses, has not yet oeeh Secu Wy
che overnor but probably will be during the next 80
savs The bill gives the supervision OF these assOcatOhs
into the hands of the Superintendent OF Banks thereby
adding new division TO his department. ou' lio~S w
uo power TO make changes IN their melhoo oi Gun
ductipg business. Even If on examlha1loh he nhus
shcir capita 20 be impaired he is empowered
Is, On r,nort tho fact 10 Acknowledgement No pro
vision IL made in the bill for an examination h,o my
tegrity and fitness Of the incorpOraors Inc
are required 10 report u the Bank DeparlIne
OIL ~ g. ~ of January and may declare DIVIDENDS
from their earnings. The bill fOr the lOriatIo H. 1e
o-or 80 irnnoses additional duties OF supervision
upon the superintendent, and also ACES any & icor
Anv five persons, than - IN any one
association organize sale deposit cOnlpih! -
Sonatv or capacity on the part OF the Incorporation or
even certificate from any authOilbeu eA'i ih ,ho Gr
soe'miy Sent ia given over these institutions
T. the power of examination once uh,cs year
81 ,h;r renor three times year and the privilege
he nds business Improperly n Nh ~ ms been
.s r c"ntested by the safe Deposit Companies al
ready In existence and the argument mas Dee t n y
1rc,blY that IN the bill becomes law IL Will open way
for an }ndefue number of bogus companies, wncL "
ipeompetency dishonesty VIII Orlpg aI INC o~''i W
ne ~ the best measures Of reform in banking matters
has failed "a become law, although passed tnJ .
S.nste n was introduced the suggestion OF Suerln-
tendent Ellis, and was intended w 70 names IN bust
ness instead OF continuing under the name 81 The
corporation after its charter has eAp mr. ,here
renort of the superintendent shows tuat tn oro
are - OF 80 @ instance Peeently came under his
h..y ho md he ma