The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-13
THE SAVINGS BANKS.
Superintendent Ellis on Their
Situation.
An ENCOURAGING REPORT THE BANKS SOUND.

Third Avenue Savings BAuk Win the consequent hurry
which that event caused the minds % the depostors
IN i and in other savings banks, coupled with the
strenuous efforts made ~ wan street operators TO
create panic savings bank stocks have aroused pub
lie attention. The people have demanded from the
officers Of those banks Of the actual financial
conditions of those institutions No IN the State
should know more than MIR D. G. Ellis superintend-
81 the Banking Department relative 70 the savings
banks He arrived at the Metropolitan Hotel Monday
evening and yesterday was met by HERALD reporter,
who said 70 him
"win you Be kind enough tell me what you know
about the financial Or the savings banks IN New
York countyff'
"with pleasure: but wish You, as a representative
OF the HERALD would correct false impression made
upon the public mind in reference to my action and
speech relative to the Third Avenue Savings Bank in
this city Il has been reported that knew the bank
10 be insoyent but allowed i 70 continue
UNTIL THE FAILURE,
under the plea that but poor women and working
men would suffer No such conversation took place
with me- neither did know Of until it printed
.'Will the Third Avenue Savings Bank make another
report to you Gifts assets and Liabilities"
mo, sir; il is in the hands Of the courts, and
have nothing to do with its aflars."
'Tcl me as closely as you can what dividend that
bank will pay to depositorssn
man. viii make his report to the Court have looked
liabilities and assets and from the facts shown
Of the opinion that the bank win pay between sixty
and seventy per cent deposits Their bank buildings
cost them 5000 000n
.sThe receiver told me s195, 600"
.Their statements to me are that the two buildings
cost 500 600; Of them, $4,000 and the other,
$4,000 ! believe those statements to be correct
Now PLACING their buildings there at s125, 600 and
their Tarryown and other real At half its alleged
value, am stl Of the impression that
over sixty, and nearly II quite, seventy cent"
'.when dd the trouble with that bank commenceY"
In 1865 under the then existing law, it ad-
vanced as it il had right 70 do, large
Mr. Dlmock of the Atlantic Mail Steamship Company
Then followed the run on the bank in 1872 when il
compelled TO sacrifice securities in order TO meet
demands for money by dcpostors and its deposits
down from six millions to two millions There was no
real necessity for the run but the majority Of deposit
IN city savings banks people Of the lower
class who not capable OF thinking out financial
problems and, i paragraph appears in any one Of the
newspapers rejecting the stability Of bank
such depositors become excited, and instantly
demand their fun deposits They DO not know
think that their interest paid by the bank from
yestments IN bonds stocks and real estate made with
the accumulated deposits, and that sudden demand
for large must necesstate the immediate sale OF
such securities, almost always
A SACRIFICE.
But II they get their money take home they
nothing for the loss OF five months interest
which they would have gained by keeping tranquil but
taking the mooney home they put it under the bed and
have it stolen Or lend It TO friends who never pay it
back.
s.What is your official business in townY''
81 sha remain in the city for several DAYS. During
that time shall make my usual examinations"
Tell what you know Of the actual condition Of the
savings banks Of the state particularly those located
Brooklyn and the county OF New York
Il have hesitation in telling you that the savings
banks throughout the entire State IA good Il not
better condition, than they i've years ago.
ssWhy do you think so ~
'srheir statements prove it, Besides they have been
working under more economical rules than formerly
show many Of the savings banks in the whole State
mot FIVE and the whole Of their dcpos its
would not amount 10 $500, 600"
what has caused their weaknessfn
''They are young banks, started during
TWEED REGIME,
when mushroom banks organized in that
throughout the State Most Of them have passed out
OF existence The few remaining shorn Of their pro-
tcctors have not been aule 70 attract enough deposits
IO ply their expenses -
.'Win the winding up of those few small BANKS you
speak Of have any effect the standing Of the New
York city savings banks ~
Not the leasL''
care you IN favor Of the creation Of any savings
banks ia this StateYn
mo. sir am not. | think there arc too many saw
ings banks now II some Of the small banks could be
consolidated or absorbed by the larger banks il would
tcEd to make tie banking Of this healthier
but when the small banks trouble they don't
want TO be absorbed, and when they get into trouble
say Ike the Third Avenue Savings Bank, none or the
sound banks want take them in To assume their
debts aid run the risks
"What you know about the German Uptown
Savings BankY'
-. up there to-day II is safe II has given sixty
days notice to depositors who demand the withdrawal
81 entire deposits but that done stop an antci
pated run. IL paying all other demands promptly
and it, depostors are safe.
'Have you refused any applications for charters Of
new savings banks ~
yes, three within the last two months Two appIi
cations are now pending One is that OF tho stuy-
yesant, Of Brooklyn rrhe other Is understood 10 Be
the irish American Bank New York