The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-02
THE CITY SAYINGS BANKS.
SURF. ELLTS'S ANIMAL REPORT OF
THEIR CONDITION.

Their Prosperity Compared with that Of n
fenr AGO Misma nREement TINT has Re
sulted Accommodations.
ALBANY, March 1.-Superintendent Ellis
Of the Banking Department has received the
statements OF nearly all the savings banks in tho
State. and his report is to be sent to- the leeis-
attlre as soon AZ IL can be prepared. Mr.. Ellis Is
confident that these statemen will show that
the savings banks OF the state are In better
condition to-day than for many years plst. The
reason for this Ia that the law Of last year, tx
ing the class Of securities In which these banks
may Invest. has been strictly enforced, and all
banks In making returns OF their assets have
been required to put them in at their estimated
market value as well as the original cost. In
this way the investments in Southern State
bonds, fancy railroad and other schemes, which
II has been customary to return at tho price
paid for them originally by the Dank, have been
cut down to their actual value, In some In
stances Involving areduction upon their original
cost OF over seventy five per cent. Previous to
last year these banks could invest one-four tn or
one-third OF their capital In any securities that
the directors or trustees might fancy, aud II was
under this provision that all the disastrous loans
have heretofore been made but the law Of last
year repealed that provision and loans are now
sestsicted TO permanent Investments with
thinks Is one Of tho best provisions Of the pres
ent law.
why BANKS HAVE nEBN EMBARRASSED.
One Of the PRINCIPAL causes which have oper-
htod To embarrtlss savings banks OF late, in the
opinion OF Mr. Ellis, has been the rapid and Alto
gether unwarranted increase In their mum Der
that during the years 1904 1880. and 1870 twenty
new savings banks were chartered In New York
shs, " risS ,n many "a nsd been chartered IN
that date. This had been done by the Legisla-
ture, not Notwithstanding the protest of every Bank
superintendent since 1897, when the banks were
nut under the MANAGEMENT Of the present de-
partment, against their un warranted multiplica-
tion. IL had become the practice to grant
charters for savings banks TO political favOrites
In payment for services rendered, or 20 make a
place for some decaved old gentlemen as Presi-
dents, who had no money, but frIe nds, who took
this way To- provide for their support at the ex-
pense OF the punlic.
MIR. Kills Is OF the opinion that the lessons OF
the past year will have the effect TO do away with
thl. system, and that " the law regulating the
Infringement ~ these institutions ~ hereafter
strictly complied with, they will enter upon a
new era OF prosperity, and be what 4 was in
SAVINGS Of the poorer classes. lie also looks
favorably upon the proposition that the savings
banks should limit the amount OF deposits
witch they will receive from any one Individual
A large amount OF the money now deposited in
those banks he is OF the opinion belongs to
wealthy men. who find them about the best in
yestment they c-n make, being certain of six
per cent interest, which Is much better than
they can rcapze IN investments generally The
savings banks were created Tor the protection
and benent of the men ~ small means, me-
chanics and lahorers, and he thinks they ought
to be managed with that view solely.
RECKLESS MANAGEMENT.
The report will deal quite largely with the re-
cent failures Ia New York. and the reckless
management by which those results were
brought ABOUT will be fully commented upon. A
detailed history OF the Central Park Savings Bank
and Its management will be gwen to illustrate
the utter lack OF business principles with which
those institutions have sometimes been conduct
ed, even when there was no suspicion OF fraud
In their management. The Superintendent Will
probably also recommend some additional legis-
lation With regard 10 trustees OF savings banks
men TOO often accepting those positions and
ergiying the slightest attention to the details
OF the business. leaving that entirely In the hands
OF the bank officials, with perhaps one or two
trustees thus making II possible for bad men to
mis- ippropriate the funds. During his investi-
quentlv met with the reply. when calling upon
gentlemen Of standing as to Information about
banks OF which they were trustees, that they
knew uouinR about them their time so
mucn taken mp with their own business that
they had no time to attend to that duty. All
such trustees, Mr.. Ellis thinks, should be I'm
mediateiy made 10 ind time to write their resfg-
nations, and something should be done to COM
pei men accepting those trusts to discharge
their duties. OF savings banks In New York
and vicinity, six-the Third Avenue, Peoples,
Mutual BENEFIT. Central PARK. German Uptown,
and Securty-are now In the hands OF receivers,
and from them, OF course. no statement hi Ne
been received According TO the returns OF tho
others, their resources, liabilities and surplus
are as follows
CONDITION OF CITY RANKS
dfeTnrn or ne Resourcss. Lfdbfthes ana Sarplus OF
morning a jan /. 1870 BEFORE he COMMENCEMENT or
business on hdi day