The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-07
Our city Savings Banks-Thc Expcn-
siye buildings OF Some of Them.

Our CITY Savings Banks-Thc Expcn-
sive Buildings OF Some of Them.
The time has passed. when costly bank
buildings add either to tho strength or
credit OF the institutions which erect and
occupy them. Next to downright fraud
aud culpnble mislnauagement, extravagant
bank buildings have done more than any
thing else to impair the resources, weaken
the credit, and bring about tho failure of
various collapsed savings banks in this
city.
When, somo twenty odd years ago. the
Third Avenue Savings Bank then called the
Rose Hill Savings Bank, moved from the
west side Of the town to the basement of the
building on the northwest corner OF Third
avenue and Twenty-nfth street, so slender
was its credit that IT was called upon to
give, and did give, security for tho pay
ment of the rent OF even those modest
premises. II was not very long, however,
before il built the costly structure we now
see on tho southwest corner Of Twenty
sixth street and Third avenue, which stands
forlorn aud empty, II monument of warm
ing to ali those who place faith in ex-
pensivo savings bank buildings. After
desperate and criminal struggle to beat the
truth, this bank failed year ago, and so
far the dcpositors have received only ff-
teen per cent IL was appal emily case OF
deliberate swindle. Among those promi-
nent in the management were SPENCER
X. GREEN, WILLIAM A. DARLING and
RICHARp KELLY. RICHARD KELLY and
DARLING are still bright and shining finan-
cial lights on the Third avenue. KEEL
LY is President of the Fifth National Bank,
at the &C ner of Twonty-third street, and
DARLING is President OF n small bank fur
ther up town. They certainly have had
considerable experience i'm the delightful
occupation Of managing, investing, and
taking care of other peoples money. The
greater portion OF the Third Avenue saw
ings Bank investments arc likely, from
present appearance, TO prove PEI manent.
During the last five years n very oonsid-
cradle number Of savings banks in this
city have failed, entailng great grief and
suffering on the most meritorious portion
Of our population, the laborous poor. In
many cases the building OF costly banking
houses has been resorted to simply rs "A
quas-legi climate mode of making away
with large sums Of the deposltors money.
1t has been shown that tho managers.
trustees, officers and their friends have
directly or indirectly profited by such
jobs. Under these circumstances, il can
be readily understood why lots are bought
at high prices, and building contracts let
out at extravagant rates for savings bank
purposes. Whenever there is run on u
savings bank, and these runs have OF late
ha of in Na mi
ably assure the depositors that the bank is
perfectly solvent, that they have no fears
whatever, and that that particular institu-
ton is able to meet any demands from its
deposltors. Occasionally the officers will
volunteer some theory concerning what
they are pleased to term the origin Of the
furry.
Since the failure OF the Third Avenue
Savings Bank, the public have placed very
little faith III all theories and assurances
omanating from official sources. They
prefer TO examine facts and figures for
themselves, and place their own estimate
on the honesty aud ability Of those who
are intlusted with the management Of
their savings. Professions and assurances
go for nothing. by their fruits ye shall
know them" The following tabular state
meut. which gives the total resources, total
liabilities, excess of assets, value of bank
ing house and lot and other real estate at
cost, of some of our principal savings
banks, rs taken from the January report
of the present year, will enable our read
eTs, in each case, to see at glance what
portion OF the surplus or excess of assets Is
tied up in real estate. II is evident that
the use of a surplus is TO guard against q
possible shrnkage Of assets; aud conse-
quently the very questionable policy OF
| investing any considerable portion Of that
surplus in real estate. where it has boon
subjected to a steady shrnkage during the
last three years, is manifest. We may DO
told that in some cases banks have leased
out portions Of their real estate to great
| advantage. Savings banks are not estab-
lished for any such purpose; they are act
| ing 10 II certain extent III n hduciary ca
pacity, and should confine themselves
strictly to their Legitimate busness-the
safe keeping of the moneys intrusted to
| their care;