The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-28
THE TRADES SAVINGS BANK
ITS ROTTENvESss AND MTsMdNAGE-
MEHT HTBROUGHTT TO VIEW.
Dispiritiua Information for the DcIuded De-
positors Tho Wortblessness Of its Invests
meuts-Tbe Exhibit Of the Bank Examiner.

Dispiritina Information for the DcIuded De-
positors Tho Worthlessness Of its Invest-
meuts-The Exhibit Of the Bank Examiner.
The Trades Savings Bank, Mt 2N West
TweDty-thIrd street, was closed on Saturday by
order OF Judge Landon Of the Supreme Court,
on complaint OF Deputy Superintendent Henry
O. Lamb, Of the Banking Department. The
bank Officers are to show cause before the
Judge, II any exists, In Saratoga Springs, Sep
teniber 1, why receiver should not be appoint
ed. An Official examination Of the bank was
recently made by George w. Reid, and 1t
showed that the institution was rotten.
Tho following report shows the condition Of
the bank as Mr.. Reid found Il:
Assets and liabilities upon the Oh day OF August,
soiiiies due depositors tssi 81, with an sSfued
S The to the Bansag Ha
for July !, Is as follows,
Bond Of cities in this state cost i6 700 90
Amounts ioihea on coiisterais iiSS0 90
10Odi o5
1asn On nnnu bHB ~
Interest sue snd accrued qois os
Furniture and nkturos. ZOO 70
Total resources. ....................s07 s07 2os %
The liabilities are given as follows
Prncipsi ses a. inteie:; crr.ite or % "
iaoic S...'..,.,....,.......... ecoo 81
Total liabilities. .so7 POS Os
On July the number Of open accounts was
st2. The mortgage loans are all OF a doubtful
character, aud constitute more than half OF tho
resources. That OF $4,000 on Beach street
property, given by Mr.. A. NJ. Lesley, was found
to really be two mortgages OF 1880 each, given
by Mr.. Lesley to William u. Livingston, and
then given by Livingston to tho bank. Other
property In the name Of the bank is OF doubtful
value. Mr. Reid, In his examination. was
astounded by finding that the surplus was not
over 800 or $40. lie would not credit the bonds
ana mortgages to which no title was shown,
and therefore deducted $2l,ooO from the ao-
counts, aud that calculation leaves the bank
Freese. has for a long time refused to allow an
sIam,1s'ion e., n os,c ana when Mr.: Reid asked I'd
di.oosrteoasiy, ,dn'" and was " told told 'tiHd that
the affairs OF The bank did Lot concern him. IL
Is Thought that the depositors will not receive
was Incorporated May Q, 1870 aud 1t made its
nrst report 10 the Banking Department IN Jsnu-
ary, 1871. AT that time the assets exceeded the
liabilities by over 5000 and since then the as
sets have dwindled gradually. The report for
Jan. 1 1870. showed that the total resources
we're tl2l :sd2, while the surplus was not more
on business at s75 West Twenty-third street. but
six-story building between Eighth and Ninth
avenues. The President, MIR. Alexander NJ. Les
ley. Is dealer IN TefriRerators.
he bank was started at n time whom II was
dlicult to invest money In safe securities, so as
to obtain an interest that would Justify the pay
ment OF even hye per cent. to depositofs The
SAVINGS banks once charged seven per cent on
the loans that they made TO borrowers on secur-
ity; but lately, and particularly within SIX
months, the excess OF money and the decline Of
the rates OF interest In the money market have
caused the old banks to reduce the rate OF In
terest to depositors to I've per cent. TO reach
the wealthy depOsitors IN these banks, the
United States Government IMPOSES a semi
annual tax OF a quarter OF one per cent upon
all deposits exceeding $1,000, and this law. Of
course, aDridges the ability OF the banks
to make tue same returns to their larger
depositors that they do to small ones.
The expenses OF the banks In the payment Of
salaries, rent fuel, lights, and incidentals abb
soro aoonsiderable part Of the interest obtained
on their loans. The practice Is 10 commence
interest on the first OF each month, and make
II PAYABLE semi-annually; but a depositor for
feits interest since the last January or July
whenever he draws the principal. This prac-
tcally reduces the rate OF Interest paid. The
securities in which savings banks may invest
are denned by law, which strictly prohibits
speculation. One Of the most experienced bank
ing men said Yesterday that, In the existing
state of the money market, II was impossible to
invest the funds under his control SO as to Yield
a higher rate Of interest tnan hve and half per
cent. In the face of this state OF things" said
he, the Traces Savings Bank persisted In ad-
yertising payments OF seven per cent. This sys-
tenn OF conducting business astonished nnan-
olal ~ u, and the fall OF the bank Waa foTaaaan