New-York tribune., 1876-10-23
the Vth District and Hugh r. Moore, William Joyce
and Michael Tuomey of tle with District
SAYINGS BlYK FAILURES IN EEW-YoRK.
WHY ELEVEN BANKS sUcCUMBED-TnE VIEWS OF
THE BANK DEPARTMENT AT ALBANY

WHY ELEVEN BANKS sUCCUMBED-THE VIEWS OF
THE BANK DEPARTMENT AT ALBANY.
[pROu AZ ,sIoNAL CORRESPONDENT OF rITE rRIB"sE
ALBANY, y. Y, oct. 21.--lt Is reported that
the recent failures OF savincs banks in Eewlolk City
are being used in the present campaign Tor polltcai
effect II Is desirable that the facts In regard 10 ter
falling should be correctly understood in order that II
may b. clearly where the responsibility Of them ics'
The following though not an official statement y 'ho
Banl, Department view of the matter:
There have failed eleven banks They arc the Ihiru
Avenue PEOPLES. Central Pax Mutual Benefit, German
Uptown Security Mechanics ana Traders. Abingdon
Square Trades, Bond Street. and Ncw-Amsterlain' vi
the eleven banks, seven were chartered since l7o'' '
never ought have been chartered at all Ihey never
had chance OF success and their failure was meTeIy
question of time They we're all chartered in the face OF
the constautyrencwed protests OF the superintendent
Of the Bank Department. uttered in his reports to the
Legislature from 1888 1870. II not the fault OF
the Superintendent that such banks existed They were
created spite OF him, ami were subject to no regulating
Law. except their charters, until 1879.
Four oi the banks ought 10 have succeeded Thcy arc
the German Uptown, the Bond Street (onco tine Az
lantic) the Mechanics and Traders, and the Ih'rd
Avenue The last three were organized 20 years ago
They were once prosperous banks They ruined by
the acknowledgement of their officers But those ruhouS
acts done six years ago, ard before there WAS
any law for the examination OF savings banks ana DC
fore there was any wholesome aud effective cheek npoh
tue officers The superintendent had power to exam
inc and sIft the transactions Of the corpora
tions. The officers wrecked these three banks as
well as the German Uptown by their misconduct before
the Legislature gave the Supe rncndnt power 10 Efu
them except alone the last and In the case oi thr A
the conduct was lieysh aud criminal and no vigilance
could have guarded against II. In 1871 b0h the Bona
street Uhcn the Atlantcl and the Mechanics ana
Traders were the subject of special mvcsIatio on ac
count of the losses which had resulted from bad conduct
OF trustees ID. C. Howell the Bank superintendent eN
amincd the Third Avenue and found dehcit IN assets
hut made The give bonds for 100000 to secure
the depostors and let the bank 30 on In september
ISL Judge sutherland appointed Phio T. RuggIes eA
amincr OF tie Bond street Savings Bank, then the
Atlantic He reported to the court and the report was 50
favorable that the bank was authorized 10 continue IN
business So two of these banks crippled during
the administration Of former Supcriucndrnt' ana aitr
extended examinations were permitted To- :" on h''
tnev never recovered from the blows iErn received
Tbc prcsrnt Suuciufcrdtn not bl1mrworthy Tor re-
,,It hrforc Inc mad mo- moro connection
with the department than Ch0c'aw chief Tue l',
cuanics' and Traders savings Bank wa, i''H! Cripple"
by transaction, done during the supcrntr irucy oi Mr.
SCHUYLER ana the trustees did those acts iH thr exercise
pf their law fu puWrr under loose ana VICIOUS ~ -
Of laws The bank then went ON through tnr Whole term
of Mr. Howell and uG.i the present year of Mr Eis'-
tern. But no report by the examiner ever -ho" 81
deficit in asset. until the ono lor tins year 1870 ANA
ont of eleven fair saving banks scv,u ran their career
in spite OF thc Bank Sdrr' ,hd'ht ne can u '''
be- charged with responsibility Tor them oi i'r l '-"-
which ihcy entail. Two oi the Others were lht h'p
condition wAch insured 'Nthtit lahi' nis t"l".' 'l
present superintendent come INTO ohrc. hulh "'lctN
amiued by competent auhotItr- iu ISL hud permitted
fo go on Where !, The Nj! mo- 10 any rN- Tor lhrt con
tiuuaucci The third on was ruined hy tho 'riulu"i
ana kua,ish conduct of uic,r, ana hJ ho neglect oi
The Bank 7upruuttudcut.
Even GOV Il!dcn himself Was willing 70 Keep rshi on
IN making new savings banks iu York "hth thr
law wa. ung 900 1~7I. be- oScITUird tine Truuu-i aurc
f the lsuk -upcIutrudrut Mt iI-, and signed Iu ifi
iucoruor,iug another wildcat -iNuf bank 100 thi- CtN.
Tho Superintendent demonstrated r letter {" tho COY
crucr IN On, words given below, ANA with THIS ln DIS
hands The Governor signed the hu The letter Is as
follows; .-