The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-05
OUR SAVINGS BANKS
How They Are Managed, Mis-
managed and Ruined.
MONEY AND CONFIDENCE LOST
Examples Of Extravaganza and Economy
.e~ in Some Banks.


Of suspended other savings banks have manifested
strong desire 10 know something further on this i'm.
portant subject. Some trouble therefore, has been
taken to ascertain only how the losing depositors
OF rotten Institutions feel. but also In what iight the
public continues TO regard savings banks in this CITY,
II is conceded that in the past the affairs OF these
concerns which were ostensiby called into existence
for the benefit OF the middle and lower classes have
been so badly managed in many Instances as to cast
suspicion upon The operations OF nearly all savngs IN
sututons Yet, under favorable circumstances as TO
honesty Of management and the integrity OF their OH
GERS savings institutions OF great advantage IN
many respects wncn however, the trustees OF tho
moneys deposited in the and the interests which they
represent are in themselves reckless and regardless OF
The sacredness Of their trust only do these
uons work mischief by squander,ng the peoples
money, but they also cemoralize the public mind
A prominent gentleman, who Is well known in con-
nection with the banking interests OF New York, drew
the OF the writer to the remarkable fact that
the year 1919. when the first savings institution
foot here until 1850, there is no record OF
any savings bank having tailed AS this remarkable
fact covers period Of thrty-one years. during which
savings corporations to have been uniformly sue
cessfu, there appears be no good reason why pro-
vided trustees faithfully discharged their duties this
should continue to be tho rule for much longer
period.
SOME SAVINGS gASK STATISTICS
The whole number OF savings Institutions through
out the State which reported to the Banking Depart
ment 154 up January l, 1876. At this date the
Total OF their $685. 1876, 1885, and
he excess OF assets over and above this enormous
,um estimated at s33 6S9 7ol, showing an increase
Of s9.379,455 as compared with the previous year.
The cash on deposit in banks or trust companies
showed decrease OF 81 lo2, l39 as compared with The
rear before while the In stock exhibited
m increase OF $l2 304 2l6 bonds and mortgages,
50, 5OT, $50, ana the amount due 10 depositors,
St5. 32i 553, during the same time. The NUMBER OF
accounts WIN oh IN this period had been opened win
savings banks In the state was $685. a3s. which showed
decrease Of u, 100, falling oil that = manly a..
tribuiable to the increasing want OF confidence
IN these corporations The case OF the rnifd
Avenue SAVINGS Bank is one which has greatly
weakened the trust which members OF the retai trade
rnd the working reposed in savings banks
The last report OF this bank before It's suspension
so its be 81 2T9 016 So and Its liabilities
Sl37o57 Is leaving a deficiency of s9L494 So
remarkable incident that while this bank re-
ported assets to the value OF over 600 had in
,as h on hand but IS 1877 As.
Tue Security Savings Bank, which formerly did busl.
the o. Broadway and Thomas street, had
estimated value Of S3iS,673 I3 AID IT'S
liabilities amounted TO S405 $40 ~ leaving IN this com
paratvey small capital The considerable deficiency Of
s21l75 90 IL may be addcd that searches 10 mud the
receiver this bank also Mr.. William A. Butler
receiver OF the Manufacturers and Builders Bank,
have been quite fruitless.
The records snow that during the TOUR years from
1867 1870, Inclusive twenty banks
chartered this city; OF these located
Third avenue, and five Of them are among the recent
failures During the period OF forty-eght Years next
preceding 1867 twenty-five banks were incor-
porateu IN New York city, and they all now doing
business. In the latter Instance the old establish
mcnts started uron n solid basis and conducted
economically, while the former appear 10 have n
vested IN wildcat stocks, pau exravagau saaries
TO their officers, aud consequence obliged to
close their doors The lessons taught by
are likely be forgotten, and VIII cngcnder
conserya,isn as well ne crcumspec,ion in the creation
nf nutn HafE INN a.
TRUSTEES AND PAID OFFICERS
The duty OF n savings bank trustee OF great
decacy and responsibility He volunteers TO protect
the interests OF depostors. and upon his action must
In great depend the success or othcrwlse OF
the concern 10 which he belongs and the man who
thoughtessy accepts irusteesnip plays with the
most important interests OF his fellow citizens. A
matter OF vital import too II 10 claimed, is that trus-
tees should not be paid ocers that they ought TO DO
Bciectcd from retired merchants and bankers, who
would have 20 sake TO grnd'' III managing tho Affairs
connded 10 their care
THE STATE BANKING DEPARTMENT
Intelligent and reliable persons make complaint that
the Bank Examiner did not the Time OF his
appointment examne the liability, cash account and
DINER business matters OF the several banks in MS de-
partment until rotten banks about close their
doors, when he went over their books as matter Of
form. IL Is also asserted that savings banks should
be compelled by law get experts
their books. when, the supporters OF this
idea, 1t night be shown that several OF them who
ENJOY portion OF public confidence would be entitled
to none OF IL Ii is also believed That the trustees OF
bach bank should be called alphabetically, and
the nnairs of their respective banks, and the other
half constrained TO do the same IN the month Of De-
cember OF each year
Unless savings banks be conducted strictly
nomical prnclpes--say those who claim to know
they great danger OF failure; anu II corporation
OIL this Kind does not possess large capital TO
with IL hardly hope to succeed one
bank in the Interior of the State possessed
capital of s36, ISL SO, whic its iabiltics
amounted TO about the figure. IL had a
saaried treasurer VINO, however, received
small compensation; but how such an affair could pay
u rs impossible to say Another savings bank TINS
city showed the vast capital Of S2j2d9 al o. and It's
surplus fund was estimated Mt So, 566 $50 -, while
the expenses OF conducting the business WAS
$5l 100 u annum. Another corporation Of tue
KIND, having mat up s17 lSS 4Sl 81
and surplus fund Of 81, lac, 653 H. laid
but Slf GAG % in expenses Incidental TO keeping the
business IN working order An institution which has
been long time IN existence and upon capital
conducted at an annual expense OF $40 279 90. On
the other hand, single example may DO cited OF
savings bank u this city when, having working
capital OF 40 SOB el6 and surplus only $685. 273 o.
has an annual outlay Tor officers salaries other
expenses which amounts to less than STl 3SS 81.
The Treas urer of this bank enjoys salary that fully
equal TO $4,000 per year Instances this exlrava-
giant way OF dong business could be greatly mut.
y Piled.
TILE BANKING COMMITTEE.
The names OF the legislative committees on banking g
are Messrs Coleman, Welman and ST John IN the
Senate, and Mckee, Baldwin, Iowaip Case aud Clapp
In the Assembly and to hem the people Of this state
look for such sauiary legislation this department
: Of ioca public economy demands.
STEALING MONEY LETTERS.