The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-18


that would make them easily accessible TO
the great mass of savings bank depositors.
The poor men and women who pinch them
g, ives to Law by, out of their scanty earn
ing Y n Dittance for their support in sick
ness. old age, or enforced idleness, ought
to Ia We the means of forming some kind
of All Vinion of the soundness of the in
stitutons to which they intrust their
money. 1'he events of the past few years
show that tue guardianship of State off,
cials Is not to be relied on. When Super
intendent allows concern like the Third
Avenue Savings Bank to continue TO re-
celve deposits long after its rottenness has
been demonstrated by the daily p ess, it is
plain that no help is to be expected from
HIM. Depositors must inquire Themselves
| into the facts of each case, aud If they are
unable to do It they must get some compe-
tent and trustw nrthy person to do it for
them. As n hello TO this proceeding the
superintendent examinations and reports
are useful and we are GLAD to see them In
print.
In selecting savings bank, the great
point for consideration IL the likelihood OF
its being able TO pay back money deposited
in 1t. whenever 1t may be wanted. This is
such manifest truism that 1t seems almost
silly to mention IL and yet how many de-
positors leave 1t altogether out of sight,
and look only ut the rate of interest prom
ised, the nearuess of the bank to their own
residences or pllces OF business, their ao-
quaintanceship with some Of the officers,
or other unimportant mattersp II they
"oulu nut reflect moment they would
first OF all ask themselves: What is the
probability of my getting my money back
again in case OF commercial panic, or a
long continued depression OF busIuessi 1t
must be remembered that a savings bank,
unlike other banks, has no capital stock
which stands rs shield between deposit
tors and misfortune. The depositors ara
themselves virtually the Stockholders, aud
every loss the bank makes II their loss. II
bebooves them, therefore, to inquire what
Is done with their money aud whether 1t Is
so invested that 1t eau be recalled on an
emergency.
An example OF au institution which offers
reasonable certainty of paying It's deposit
ors under all imaginable circums ances,
is the well known aud deservedly pDpu ar
Bowery Savings Bank. This bank has de.
posts to the am ouut OF 81, 100000, and its
assets represent the SIS, 000O)J AN | $780,
600 besides making S3i,O0J,OW Altogether.
The bank can afford, therefore, to lose
1000, 900, and still have enough left to pay
its deposit.rs in full. Moreover, the
chances of its doing as badly as tins are
exceedingly slight. 1t holds a. Invest
ments United States stocks worth Mt par
$4,000 900, bond Is aud rtga2es for $1,000,
0O0 bonds of cities, counties, and towns in
tins state, $5,5J0,0)J stocks OF other States,
$2,jO0,OO0, aud cash on hlni or loaned on
call, $2,0O0,000. Other securities OF like
character represent the remainder of the
t33, 900 900, aud II Is dim ,ult to conceive of
any depreciation whi1h would reduce
their value to the s25,0oC,0)0 which the
bank owes
There are, we are glad to say, other in
stitutions which for all practical purposes
are as sound rs the Bowery Savings Bank.
The old Bank for SIvingsin Blocker street
has $2l, 900 OF deposits, and assets more
than enough to pay them by $500
the Emgrant Industrial Savings Bank has
sl3,750,OOO of deposits. aud an excess OF
assets OF si.5oo,OoO; the Greenwich Savings
Bank, Sll.76OOOO OF deposits, aud an excess
: ing. SIS 600, 900 OF deposits, and s2.0)0, OO1
surplus and the German Savings Bank
: sl32JO.OO0 Of deposits, and II surplus OF
nearly 81 100000 In the same class also
may be placed the Brooklyn and the Will
hamsburgh savings banks, both Of which
have large deposits and an ample surplus
OF assets over Liabilities, aud whose invest
ments are OF u character to make their
solvency under all circumstances US Ger.
tain rs anything human can DO made
Nor would we be understood rs saving
that the banks whose names we here men.
ton, are the only sound ones in thus neigh
) bOrhoOd. We use them merely rs illLstra-
tions of the principle by which such insti
tutions should be judged. Any bank whl
. can exhibit a similar class OF Investment
{ and Il similar proportionate excess of asset
. over liabilities as protection against
losses, IL entitled to the same confidence.
= On the other hand, there are IA number
/ of feeble concerns which, under the name
g OF savings banks, sol oit the patronage of
g the pubic, but which should at once he
1 closed up. Their depo its are small, in.
= deed, but their assets are small likewise
A and thcirlittle margin, Of surplus are liable
!. to he more than wiped ont mt any moment
n When it is considered that no savinss bank
!, can do business at "A Less expense than
f $4,000 annually, il IL PLAIN that one VINO It
n deposits amount 10 no more than few
|, hundred thousand dollars cannot ply six
h or even Ave per cent. interest and keep IL
l.. money safely Invested The present is {
" good time for such weak banks to retire
o from business ana wind up, whereas yea
p. or two from now it may be dIilicult fol
n them to do 50 satisfactorily. We namo nc
= names, but persons Interested can find oul
l. what we mean by consulting the pages o
"a the superintendent report.
II A Rale that Doesn't Work both Ways
~ Enr Il nnnl mlnN Nnars ILn Nm III IL ~ n