The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1877-10-04
Another savings Bank Gone.

The Allegheny Savings Bank closed
is doors yesterday, which Is the third
occurrence Of the kind within q week.
Incidents Of the sort are getting to be SO
numerous that people look for them al.
most daily. A savings bank is rapidly
becoming a synOnyms Tor an unsafe place
to deposit money. The name, like that
Of the numerous "Fidelity" and "Guar.
dian" insurance companies that have
failed Of late, is becoming trAVeSty and
caricNture on The accustomed meaning Of
such words, and people are getting 10
smile Sardonically at the very mention Of
them.
For yehrs to come the probability is
that the numerous unfortunates who
we're besuiled into putting their money
in the savings banks tSt. Louis, Chicago,
New York, aud other cities, where these
failures have occurred, will have holy
horror Of the very name Of "Savings"
bank, and before running similar risks
again will bury their money in their Gel.
lars and do without interest for years
rather than trust the principal in the
keeping Of II Savings bank Thus il ia
that these failures hive done an incnlcu.
liable injury to such savings banks as are
sound.
The question will be asked, how are
We to know good institution? And, by
the way we read only yesterday in a
Pittsburgh paper what purporIed to be
test Of financial soundness oil the part of
a bank. The question was asked, chow
is workman to know the condition Of
his bank" The answer was as follows ::
"a good test Is the amount Of interest
his bank pays for deposits. No bank can
afford to pay six per cent for money these
times aud take the risk OF loaning it at
such rates as are current for good paper
six TO seven per cent Four per cent
is as much as any bank can pay for de.
posits and loan the money safely and
with sufficient margin 10 pay the expen-
seS Of handling il. A bank that deals
largely in paper upon which it charges
nine or ten per cent discount is not safe
place Tor working men and women to
take their money to; and yet bank that
payssix per cent for deposits must charge
that rate to cover risks and pay expen.
ses. The safest plan fOr all is to take
their money where no high rates are
given or charged"
There il, no doubt, good deal in the
foregoing remarks. The banks of this
country, and especially the Savings
banks, have been paying a rate OF inter-
est on deposits which have tempted them
into illegitimate ventures in the hope Of
finding profitable employment for said
deposits. The consequence has been
that they have venLured and lost money,
and, in many caSes, have tied up their
means in deprecated real estate for
which they could find no sale.
The most serious trouble, however,
and it is the most discouraging feature
Of these numerous Savings bank failures,
has been the algrsnt dishonesty or gross
neglect OF the officers. They have pquan-
dered the deposits Of thousand, OF poor
people in the way Of loans to iavorites
OF the bank (perhaps themselves) on
shoddy security, and thus, when the day
Of examination and settlement came, they
have turned out hopcIessly rotten.
There is no security for the depositors
Of any kind OF bank save in the intelli.
gent fidelity with which its affairs are
managed, and inasmuch as Intelligent
fidelity is quality not abundant in :he
markets Of The world the next best
guaranty to deposiIora j, the exercise Of
a severe surveillance on the part Of the
National and State governments over
National and State banks. The National
banks, as we all know, are subjected to
periodical examinations by government
experts, and it is rare that a National
bank fails. They are, so to speak, closely
watched, and in addition 10 these person.
al examinations are required between
times TO make sworn retu rms as to their
condition on given day prior to the
date Of the requirement National
banks therefore know not the day nor the
hour in which they will be called to show
their hand, and hence they are obliged to
be perpstually on their good behavior.
This is great security to the public.
There should be the same security 10 the
public in all kinds Of banking. There
should be rigid periodical examinations
by State experts Of the affairs Of all State
and private banks. Their transactions
should be scrupulously and intelIigently
overhauled at shOrt intervals, and a re.
port Of the same made to the Auditor Of
the Commonwealth, In this way only
can the shaken confidence Of the deposit.
ing public be built up and restored. As
things have been going lately the great
army Of small deposilors throughout the
country will come TO the conclusion that
the only safe investment for their savings
is in the purchase Of real estate.