The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-04-24
DEPOSITS IN SAVINGS BANKS.


THE SURPLUS AND WHAT MAY DE DONE WITH THE
INTEREST on SUMS UNCLAIMED UNDER GER
TAIN CIRCUMSTANCES.
TO THE EDITOR OF THE HERALD:--
ON January !. 1874. there were in the State or
New York l55 savings banks. They then owed to
s394T2 deposiors $685. 5200s5. OF these SO are To-
Gated IN the cities or Brooklyn and New YORK, and
owed 60t 939 deposlors s2l3 03O 20S the remaining
% In the various other cities ana towns OF the
state owed at the same date to 234 533 depositors
e72 4Se,s77. The 1855 banks in the whole State had
also surplus amounting TO $2l, 44s9 $50. or nearly
~ per cent on the deposits. Their assets were
sso69e9oS7. The interest on their surplus for the
year OF 1874, at seven per cent would approach
sl.5ooooo. Creating no further surplus AID i'm
proving what they have in ten years IL would be
s4oooo.OOo and In twenty $4,000, 900. Meantime
they could divide among their depositors all the in
terest and income on their deposits remaining
after the payment OF expenses.
In three years-ls71. 1872 and 1s73-the number
Of depositors increased by eighteen per cent and
she amount OF deposits two and q half per cent
The increase In the seven years preceding 1871
was proportionately much greater. the deposits
In January, 1894 being $685. 1884, while In Janu-
ary 1871, they were $3.50, 749 40s-nearly twice and
q nalf as much In seven years.
An annual income or nearly ST. 600 600 Is de-
rived from these savings by $40. 600 persons, while
encouragement Is given to various enterprises by
safe loans toward their prosecution, thus con-
tributing toward the growth and prosperity OF the
state and promoting the welfare OF not the least
worthy OF It's citizens.
Various propositions have been made in the
Legislature TO take from the custody OF the saw
tnss institutions more or less OF the surplus or OF
deposits remaining unclaimed and never likely to
De called Tor, or OF ooth and apply them IN needn't
and meritorIous ways II i am not mistaken 1t was
a
ago, 70 take from me surplus money
bany. thus placing the burden OF expense on
savings OF those least able TO bear 1t and permit
ting the great majority in NUMBERS and wealth to
20 'scot lree." The creation OF surplus was from
time TO time authorized by law Tor the security OF
ueposilors. the theory oil charters being that all
the earnings over expenses should he divided
among them. The "revulsionsn and "pancs,n
whereby the authorized investments became de-
preciated below their par value made such legis-
atlon necessary Tor tile protection OF depositors.
Whatever may be safe about undrawn deposits
winch may never be claimed. surely nothing can
reasonably be urged IN favor OF touching what Is
IN q measure sacred, the surplus laid aside to as
TO be without security. AS 1t Is the properly OF
the depositors, and dlvlsibe among them. in part
or IN whole, wnen no longer deemed necessary Tor
the INTENDED purpose It would be no less than
tnet TO divert any OF 1t to other interests than
theirs. Instances doubtless are not lew where de-
posts not claimed Tor twenty and even thirty
years have been subsequently applied Tor and
paid. Yet IL Is fair to suppose that compared
with the whole. the amount OF such payments is SO
small as hardly to be noted.
Inere are IN the cllle3 oil New 0rK ana BROOK
yn 10 savings banks which have been In opera
ton over twenty years OF these over forty, and
over fifty years. They owed 4o5,s7l depositors
4l56,S49,S37. In cities and towns or the State,
outside OF New York and Brooklyn, there are
~ savings banks which have been dong bust
forty years. They owed, January l. 1874, JAG 81
deposltors $50, 0S5, 6so-making total IN the whole
state OF deposits in Al banks existing over
wenty years s2oe ss4 s77 due 55a e92 depositors
Y Is said that the agreement with depostors is
mat interest Will be duly credited to their ac-
put not beyond that time. II this be so then the
interest received by the banks on all such accum-
years would belong to neither the deposit0rs
themselves nor their legal representatives. Why
snOuld the institutions retain III Would IL not be
JUST. competent and commendable Tor the State 10
direct It's payment 20 the state Treasurer and pro-
distributed TO the charitable institutions IN due
proportion by the Comptroller. as the approprta-
tions In the CHARITY pills have heretofore been.
There can surely be no better, nor any mode SO
good as this, for disposlng OF what snoDody
OWNS" In view OF this IL would hrst become
necessary to ascertaia the amount OF the deposits
oil the forty-one banks above referred to which
the interest not credited TO the accounts Tor the
surplus time over these twenty years on these I'M
claimed SUNS. Inc SUN so ascertained az the
OF one, but or many years, by many oanEs, might
be invested as capital and ITS annual income be
added 70 the future interest received. Tue
amount OF the unclaimed deposits as referred 10,
In the absence OF reported facts, can be but mat
ter or speculation. But when we find that there
are over $50 000 deposlLorB In forty ONT banks,
listing for more than twenty years, ana nearly
100000, 900 due TO these depostors IL IL but
reasonable to suppose that such unclaimed funds
must count mp very high and that tue annual
interest would be q respectable sum toward the
support OF the charities saving at least 10 the tax
payers the usual appropriations Tor these objects.
IL would not be difficult nor very tedious task
tor competent committee properly appointed to
ascertain and report the FACTS, as doubtless The
Institutions have their accounts so arranged as TO
dates that due acllity would be AFFORDED for ac-
curing the Information sought Tor.
The subject IS well worthy the attention OF legs-
at0rs, as without violating any existing contract
tEe work OF charity would receive needful aid and
q direction be given 10 FUNDS without owners
which could not out meet general approval. 1t Ii
to be expected that II the matter be brought to
the attention OF the Legislature IL Will receive at
their hands early and favorable attention. u.