New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-01

This exhibit i, not altogether s1ti,iacIofy Iherc u
material increase in TIE aggregate deposits hht the
number of dcpo>tors has not pIoportonall advance"
For the first tune since lsG there Us dimnnii"n ~ Tie
nuiubcr of dcpo.tors as compared with Tie previous
year In cG2 the decline IN the number Of dcrositos
was very smali-0uy l~2-whilr deposits ran '""h
during that year more than S3,ouooJo. Now large
increase in deposits Is accompanied by ie"r'i"h %!
nearly 1900 in dcTo-itor5. The loss III the latter Is
partially explained 10y the failure Of savings hlnSs Ia
y,l. CIV bu; the above exhibit iu,l'ics hc CON
c.ou that the savings banks arc temporarily ut least
ATTRACTING "A new class Of dcrosiiors. The conditions
which refer 10 are the result of the stauai"n IA b7
ness class 81 people who have funds ANA VINO nave
hitherto employed them IN some other WY WIN 'front.'
now hnd 10 oppuIuuiy safe ana leinuh'I' ~ &c
uo-ii ne thc in savings banks II II THIS c',, oi DC
posts pronspy, which SWEET the present artfi' i'a
average deposit has advanced {" ~ year. WHICH ~ ''
largest annual gain in several wears. 49,, -,
The deposit in savings banks oil FUNDS Whlch 'nt o
precision in uu~Ec-s has diverted from lit ti.l''
They have usually moved Is OF l,hcF 10 DC l'IHlI'i,
When which produced is ,r'l are reno"
tlcy ml,t b. ilur kud oi "rPu-l'a WIZ ''"" - -.
former field. IAcir temporary employ Il, i, '"'
banks IS aid to these ,iit9tl"ls el'HH,i lI' u"
prospective. The sdNini bih"- l' u'' mn " 80
vel or loan their deposits upon LEGAL ANA sac Sr'i'-
hence this diversion OF money To th,Nl nom
Il who see no other SD tat ana an A. ,'
rather cubarra--e, the bank, than helps tHcn "hrI
activity arises IN business ana sl't l,' ~,
for money l. heard, the Ncil CLASS VII nm "i H. ~
time spc, the slyius banks FOR pIuhi VIII near le ''
and will pro npty respond 10 H. Ihi1 c'ili'' ~ - "a
br hoped i, casual ana lfHh7I Mt lh' ne 80. - .
that can ne afforded To- saSugs hhuhH AGAINST HyH! ih
DIS selfish 81 lItlu lIl"I W. .'''' as
dlcou. ruics they may check The op rdun- o Ia, '1P
The dlctrs which hcsot most OF the slyines hanis ~
the prcsen situation OF Affairs are tv"iold lhN lmNth
superdUuudsuce Of money offered Tor deposit l'f are
psrpeXcd 10 ana adI" ana t"ld' INV ''''u.u' l'' IT,
ciubaIIsi,snchis require the mort cc'HoMiti H'."L'
ment in the operations OF the banks, unts' tH' nave"
iar.e surplus whose income they can iall "acA upon
10 pay interest To dcposiors, To meet nt''rht *
IA problem banks mud quite hdrd I" solve
II seems iust now To be quite ~ "'d,f IL" ' ~ 81
tT IN
the EXPENSE Of their institutions ana 10 institute iir
most rigorous economy which l. cOinpaiibIe WIN
efficiency ana fidelity ia their operations.
CAUSES or FAILURE.
OF the causes for the failure o. the New-lo
banks, Superintendent Ellis says:
It NAV seem piidoXicai to that some OF the ha".
failed when they were created yri thcie is u'is' '
truth in the statement which VIII b' ca ''l ".' %
Ii {, fact winch cannot De successfully cuu'lo'til'u
because fully proved by The "hg"i A-i'y oi ne
banks ~ the state, thht the multiplication ol h'>' ir'
tuuu- IN localities already nheraly PROVIDED 4o' ms
been Of The greatest sources ni Wchhh'hs w tnr
banks and 81 danger To- lho hAri,I. il an ~,
Of the records II found that during Inc years lNu'
1865. 1902 and 800 twenty new '1t me- ptnhs
chartered 10y the Legislature III tue C'y Oh ora
and commenced business; seven were located on lnn
failed From 1919 when the Bank for savings va,
chartered, 10 lsO1 period oi Is years - new Dahs
ness at that date. 1ney were found 10 ahnid ample
accommodation Tor the public In thr ionr years a9e
~ pertinent mere: what was me cause ol lhl' IaIb'
ana RAPID increased I'D the public necessities require
il Did the business demand II IheFe - no
proof that they aid the entire assct OF The twenty ne"
banks TO-DAY li short OF Tue deposits Oh hsIt psh ol
the better class in the cty. Did ins swarm 81 new banks
spring the pAanthropc desire OF ticli oTislha'"is
10 a the industrial classes in saving their harcarued
gam, by pToyiuiug for them safe d,post0r,s Ii -
greatly feared tat tn motive when HstShti tAe
creation OF many Of these institutions quIte the
verse OF Humanitarian. The history OF some oil The banks
that their Organization was Inspired by thc loves
and mctnest forms Of sturss. savings bank charters
were made OF ymcnt for political SERVICES ana
positions trust and honor IN the banks were often
made the reward merit for purely partisan service.
desire banks became CpIl'in', ANA Inc
Legislature yielding 10 tine earnest 6ohc!iaiions OF
interested parties, granted charters with ltur or no
reference to tie special qualifications oil the hcOrpo
tons keeping the peoples money There was PROB
ably field lor few wCli-OrGdnI"i ne" institutions IN
upper portions Ol the city, bui ihe hunuer should
have been Limited 10 an average Tor Cach year not much
exceeding that Tor the my previous years.
annual reports Of the Suprrinte OF the Bank
ing Department since leo| "h,n tie savings bihhs Oh
the stdlc N'Ie PdC'u lh''i ~, @ ' 'i %
most uninterrupted series O protests against thc pohcy
OF mulp Ing these Institutions Tue reasons were Stc
VITA emphasis ana peI7l' io".e d-lilSt u.'' p"i''
dictiOns, since LncAtiry iWhiird' Were NIUE OF lhe
danger To the integrity Oh tA' ~ h'' ApiehtHu'i us
astcTS were pOllicu OUT epet'"S anu a'lh,n.tlVis
were uttered ca Cdis ycu, 20 MAKE sud drafts
the confidence OF tc people All Was treated "s mean
ngoss Dy lh" dhcH' anu tty VIZ, uI.i @
ny, paratlcd only the advocates OF an inflated am
irredeemabe currency, acted upon the theory that tGe
greater the uGmbcr o banks The greater the safely and
the money for the people.
From careful examination of the practical wurkihgs
OF saYuss banks tEnR u VIII ne iouil ti't lnl-u
creation " them las been the mann cause 81 weak
ness and actual disaster While other cause, have con-
buted, directly and indirectly, to ther iha iiy 70 sue
coed and become prosperous, TINS II tho dominant dhd
II
competition between rival banks Patronage has been
solicited and obtained at the expense OF safely IN
ducemens nave held ont to GopOsOrs bl promises
OF greater dividends tnan the bank was able to pay
This was not matter Of cnoicoi 1t wac necessity.
new bank s ting business IN the midst oi old and well
established institutions must Oner equal or greater III
ducenents 10 the public than those with Nneh they
compete otherwise the enterprise IS hopeless from the
beginning. Overtrading brings disaster IN saw
lngs Institutions well IN mercantile afsl ana an
number OF these institutions begets oyertradns
THE RATE OF INTEREST PAID.
BY the provisions OF the general Savings Bank act,
passed at the session Of the Legislature all savings
banks in the State placed upon equality far
relates TO their "righs, powers, and liabilities" The
maximum Of interest which the banks may pay to
depostors is fixed at six per cent surplus OF ten per
cent their deposits may be kept AS guarantee fund