New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-03-06
THE SAVINGS BANKS.

THAN WAS DEPosIrED-cAUsEs or THE PAIL
unEs OF THE NEUTRALITY-SUSPICIOUS. ELLIs's
RECOMMENDATIONS.
lYRoM TIE REGULAR CORRESPONDENT OF THE TRIBUNEl
ALBANY, March Tho year 1875 was one Of ex-
ceptional importance to the savings banks of tins
State Half a dozen banks failed in New-York City,
where shreo-fths in amount of deposits of the saw
ings banks of the State are conferred and produced
widespread distrust in the community. Further
more it was during that year that the General Saw
ings Bank act went into operation. This act was
expected to remedy many existing defects in the
management of these repositories of savings. 1t
cnrtailed very much the power of trustees. and
erected numerous safeguards Of the rights of depos-
TORS The available fund" which under the old
charters ranged from 10 to 33l3 per cent
of the deposits and was often lent on secu-
rites in which the trustees were per
sonally interested was reduced to 10 per cent and
its investment limited to the first four classes OF
stocks enumerated in the accompanying table at 30
per cent Of the market value. The banks were com
pelled to mako a clearer and less partial statement
of their affairs to the Bank Department than for
merly They were required TO return all stocks and
also at cost which under tho various charters was
returned Mt market value at cost, either was
teonired In ether ways tho returns under the new
law make much fairer showing of resources, and
render Just comparisons possible and easy. There
probably never has been mc in the history OF the
savings banks of the State when full and trust
worthy returns of their condition Interested
greater number of people. The reports are for the
fiscal year ending Dec 81. 1879 The tables given
herewith arc not to be found in tho annual reports
of the Superintendent in this summarized FORM
The savings banks of Eew-York City received de-
posts during tho year 1878 90 the amount of 1884,,
1Ss,216. an increase of $4,177,513 over
the deposits Of the preceding year. not
withstanding the failure of five banks with
So, 500. 900 of deposits. The aggregate resources
show an increase of more than SlOOOO,OOO, aud the
surplus an increase Of moro than $5.5OO,OO0. On
the other hand the number of open accounts has
decreased %, 1000, nearly 10000 OF which belong
to the five banks which failed before tho LIST of
January-the Central Park. German Uptown
Mutual Benefit, Peoples and Third Avenue Savings
banks The average increase IN the number OF open
accounts has been 16, 800 a year for tho last 10
years and the fact that there is decrease OF 1000
accounts on last years figures leaving those of the
closed banks out of consideration. shows that
largo number of depostors, either through fear or
from necessity have dropped of. The amount OF
tho average account for the year was $}94 10. al
increase of $50 on last year, the largest since 1872
showing that it was the smaller depositOrs who
closed their accounts. A brief retrospect OF the
New-York City banks for the last 10 years shows an
increase in the number of banks from % to 40 at
the present date, in tho average deposit from
$50 to 1891 70 in the resources from $93-
41S,9l7 to $205,415,447. in tho deposits
of SSG, 574,343 to $1S4,1S8216, in the
surplus of Se,S44.592 to S2O.6S7. 722, and in
the number of open accounts from 307,592 to
ass 652. The banks of Kings County show in the
Same period an increase in number from 10 70 IL,
in the total amount of their resources from SlS,-
41Z617 to SJ3 SIS 37S, in the deposits from Sl7.-
1eO.474 to S4s, 391 96i, in the surplus from
81 ,256 100 to s.. 1872, 40, in the number Of open
accounts from CO. 413 to 1878 and in the amount
of the average deposit from January, 1871, to Janu
airy, 1876. from 1913 G2 to $3.50 %. Within the
same period the total amount of the resources OF all
the banks in the State has increased from 81 H.
634,515 70 1928. %, 735 in 1874, the returns for
1875 from tho entire State not being yet made up;
the deposits have increased from Sl31. 769074 to
1903 g35. Gi9 the surplus from 81. s65,441 to S24
3IOOS6. thc open accounts from 4oS,5Oi to o72.49S
and the average account, from 1869 to 1876. in
creased from 1898 81 to S34S 30.
Since the year 1857 when the savings banks were
placed under the charge of the Bank Department,
the aggregate deposits of all tho banks in the State
have increased-up to Jan. j, 1S73-trom Sll 'OOO'-
600 to $3O3, OOO, 900, the aggregate surplus from
So 400, 900 to $4,000, 900, and the number OF de-
postOrs from 2O3 900 to S72,00
During tho year 1875 the savings banks Of New
York and Brooklyn combined hold $500, $50 80 of
deposits $3.50 293, so of resources $26.O7OlG2 IN
surplus, and had COG, 7S4 open accounts Some idea
Of the proportion the Eew-York and Kings County
banks hol to tho rest Of the State may be gathered
from the returns for the year ending Dec. 81 1874,
which show that ont Of 1929. 100000 Of resources
for the whole State the Now York and Kings County
banks held $244. 900 900; out of S303, 100000 de-
posits they hold 1921, 100000; cut of 50 100000
of surplus they held S19,00O,000; and OF S72,49S
depOsitors they represented 62o,S29.
The returns for the two great cities show very
clearly the movement that seems TO have been TAX
ing place in their deposits since the panic OF 1873
I'm Now-York the number Of dopOsitors increased
more than onc-half tho average rate during 1878.
while the aggregate deposits increased barely mil
lion and half and tho size of the average deposit
dropped from $500 to 1856. so in Brooklyn, the
aggregate deposits actually fell below the total of
the wear before while the number of depositorS
showed a considerable increase. and the amount OF
the average deposit dropped from $3.50 to SS26'
This would seem to indicate that tho larger deposit
ors were compelled 70 draw out their money. while
the number Of the smaller depOst0rs increased
Now the reverse seems to be the case. In hew-YOrk
the number OF dcpositOIs instead Of increasing
nearly 10000. as has been the rule, fell off more
than 25 600 half only Of the total loss being due to
the fixture of the banks above referred to. At
the same time tine aggregate deposits IN
creased four Millions and the average deposit nine
per cent These figures clearly indicate tho presence