The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-14

HINT ABOUT GOVERNMENT LoASs-pIsTRUsI
OF THE ORDINARY SAVING INSTITUTIONS
II Is estimated that some hing like so 0o3 people in
this city paronizs the savings banks and they repre-
sent many millions Of dollars. Siuce Tho reported tail
ures OF savings banks some twcuy in number, there
has been great falling on in dcpostors, and pco
pie IN midding circumstances have taken to storing
away their money in old stockings and tho Ike The
failure oil the Third Avenue Savings Bank was, per-
haps, tho greatest blow of all TO tho confidence Of de-
postors. People looked wildly around them after that
event 10 where thorc was a safe bank, and MS
they looked and sought for ouch place the
thcm OF other banks tumbng
down all around. Tho result is simply tnis:-That
the working classes who have heretofore been tho
tins OF these rotten institutions have taken to hoard
ing their earnings IN all sorts oil ways.
1t was with view 10 ascertain II any OF thnt large
amount OF money in The possession oil the working
classes had been diverted from The savings banks
invested elsewhere thai the HERALD reparler called
upon Mr.. Jesse Seligman, who is member OF tho
Syndicate 1t should he borne in mind that tho propo
siton to ISSUE small denominations OF city stock was
first started year ago last winter In Albany. but the
Comptroller tho tmo tGreen SAID that it would
vo,yo much additional expense the way OF cer-
ical nTe that II would not pay tor she experiment.
WHERE TIE PEOPLE INVEST.
Now u appears according TO Mr. Soligman. that
OF the savings banks have taken 10 Purchasing tho
fifty dollar aud ono hundred dollar denomination OF
bonds which the Syndicate offers At TOUR per cent
terest Nr. Sclieman says that he has had frequent
calls Tor individual fifty dollar bonds, md, as lie sup
poses. from the very same class Of people who usually
invest their spare cash in savings banks. There Is no
trouble IN he matter The IN, estor in my dollar
bend has SIMPLY 10 leave his o. her address al
the office whore the bond IS purchased and at the
Arst dry In each quarter OF tho yoar the interest
that bond will be promptly remilted. "Phis," said
Mr. Seigman, as going to be The most popular loan
that was ever started. There you have the United
States security aud your money IS consequently
Syndicate spoke 10 the same purpose, as did The pres
,dent OF tue First National Bank, though ut the time
the reporter called he was busily engaged with Sec
rotary Sherman and ex-secretary McCnl!och that he
time enlarge upon The prospects OF The loan.
lie had time enough, however, TO say that the nifty
dollar denomination OF bond was quite popular and
was beng bought large blocks by the savings banks
DOES NOT THE CITY FOLLOW SUIT.
The po,ut OF the subject 10 that the average depos.
tor mas in these government bonds sale and fairly
reasonable investment. Tho thing 10 be regretted Is
similar ana issued stock in denominations of SIS,
$50 and SO on. IL will be remembered with what
iraurdinary enthusiasm the French people bought up
the loan intended 10 pay the Prussian indemnify; but
that loan was so disposed 10 enable tho hunblest
citizen 10 participate IN H. Our city loaps have been
issued exclusively for the benefit OF capitalists, and
few rich bankers have pad the monopoiy Of them
The objection OF Mr.. Green, that tho issuing of
city loan IN small denominations would
involve large clerical expense, WAC frivolous excuse
in view OF the great pubic bcneht that might ba de-
rived from II is very kcy that at the next session
OF the Legislature law will 10 passed authorizing the
Comptroller ia CITY bonds IN such denominations
as will accommodate the working classes. The great
argument IN favor Of such systom IS that the poorer
elias who do all the voting, would evincc q
greutcr interest in having honest and capable city
government. II would DO their chief concern, as an
curty for tho payment OF thoir bonds interest and
principal alike.