The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-11-23
Friday, Nov. %. 1877.
ROTTEN SAVINGS BANKS.

ROTTEN SAVINGS BANKS.
The recent simultaneous explosion Of
several 80 sailed Savings Banks 10 San
Frapcisco, should not be without its les.
son TO the masses. Out Of dozen in.
stisutions of this kind in that city, not
over four had any capital to begin with,
their only banking funds beng what
was contributed by the poor dupes who
deposited their hard earnings therein.
One Of these rose-waser banks was &C.
tually closed by q furniture dealer
whose importuDate demands for the
price Of bis desk and oil-cIoth caused
the collapse of the bank. 1t takes
money, aud hard money at that, to
start hank; and it also takes money
to maintain one. And with the trsgical
end of Ralston fresh 10 our memory,
we have no terror Of "old fogy" bankers
who demand the best of security be
fore they will loan dollar. In fact.
the only unsafe guardians Of the funds
Of an industrious community are thoss
who are ready 70 accommodate, regard.
LEES Of the collateral offered.
The local press Of San Francisco do
not show up to any part,culsr advan-
tags in this nasty MIDDLE. The inse.
cure conditioned more than one Of the
lately.collspsed banks. had been . mat
tor Of common town talk Tor the pssl
two years and no mercantile man ever
crossed their thresholds, except it Wa
to borrow money. Nearly oil the d.
rectors Of these banks were engaged in
mining enterprises in Utah. Nevada or
Arizona; and these directors experience
ed no difficulty in borrowing the hard
earnings Of the widows and orphans. to
put them into holes in the ground. OF
all the risky collaterals. mining stocks
arc the most insecure; and the duration
Of any bank which would advance any
IN 'ney whstever upon them. Is only .
question Of time. It i'll becomes The
San Francisco dsilies at this time.
therefore. to publish with sensational
headings tho peccadillocs Of the default.
ing Duncan or the levanting Lcwarne,
after they have Asd beyond extradition
with the money of their dupes. But ~
long as shese rotten banks would adver-
tise their dens in the daily papers At
the rate Of ten or twenty dollars per
month. these fesrlessly virtuous organs
had nothing to say. Now. when the
poor dcpositors are robbed beyond oil
chance of recovery. they hold ny their
former patrons to the public gaze ~
villains Of tho darkss. dye.
We should like to see a savings bank
started In this city which would pay
i've per cent. per annum to depositors.
who would allow their money to re-
main without call for at least eight
months; but We should hate to see any
such bank started with less than $780,
600 Of paid-up capital. Without that
we shosld oppose the scheme AS beng
directly antagonistic to the best inter
ests VI the community. II 10 notorious
fact that one Of the Savings Banks
in San Frsncisco which with
stood the run" Of last month,
WAS started with a capital If one
hundred thousand dollars. Five years
Afterwards. it increased It's capital
stock to $25O. 900. and 6ve pears later to
440O. 900. though not IN additional dol
lar has hscn raid in BY the stock
holders. The fact was accomplished b.
the American art If "vatesine : ~
stock, which shoald b made Hsnitsa.
tisry offence. Il has but one result-
making the Directors richer and the
depositors psorr.
The aggregate capital Of ell the Say.
ings Banks in San Francisco. is q. ll6.-
O00. while the moneys depositsd In
them is computed 1t oes.6e5. 90. So
il will DO seen that their actual capital
is less than six per. cent Of the money
which they are handling 70 thar own
aggandiscments. Any law which
gives any set Of men the handbag VI
sixteen times their own money. without
bonds or other securities for the dcposi-
tors. = an aoeessnry 20 robbery and
should b expuaged from the Statute
books Of any State. We look for leRis-
lation On this pint Il SAcramsato. atsss
the seaatorial electioa 10 disposed Of.
Thee = no sshjsst npaa Which stsia-
gent laws ara st preseat ~ urgently
demanded.
UxsEAw0arHr srEAMsRs. = The
Victoria papers arc having qaits :