, 1877-09-23

THE SAVINGS-BANK SYSTEM.

Ihe MYERS bank, as It IS uncovered, PROM
ises to turn out worse proportionntely than
the State. The State had on hand SCI, 900
cash nsainst :2.9o0,00o Of deposits, which
was about forr-ffths of l per cent, while
Myers cash ha'sets-562-a1e but On infinites-
imel percentage of the $500, 600 Of deposits.
The State had, however, other assets, which
it is estimated will swell the percentage to
from so to 40 per cent; but the other assets
Of the MrERs bank, if any, are yet to be
discovered. It seems that Mr.. MrEns was
President, Cashier, Manager, Trustee, book
keeper, and sole stakeholder. He is alone
responsible. As THE TRIBUNE said yester-
day, the tendency Of the present irresponsi-
bic system of savings banks is to their be-
coming the property or within the control Of
one man. The State was bought and sold
until it became SrESoEEis bank; and then
SPENCER took half million and more, and
put up the bank stock to secure the bank.
MYERS, we suppose, will turn over his stock
that is if he kept up the farce Of having any
stock-to the bank for the benefit OF itscred-
itors. Mr. MYEns has always been supposed
to be honest; he certainly enjoyed theconf-
denco Of many respectable persons, many OF
whom were lawyers and men who ought to
hare been able to detect an ordinary fraud.
We are not disposed to pursue him with cpl
theta; but, being sole owner, manager,
cashier, and bookkeeper, he must have known
that his bank was but fraud ana trap,
into which by deceit he was inducing people
to put their money, which he knew they were
never to get out again. The bank was
mere shell. having no other substance than
the rotund and portly form of the President.
That is, however, not available for the pay-
ment Of depositors. One feature about this
bank was q scheme Of investment which no
person other than MYEns was ever able to un-
derstand. It was such monstrositT as
might result from q cross between hydraulic
ram and an I 0 q. The man who put his
money in the bank YVES induced to have it
put into this patent investment, and it will
puzzle even Receiver to discover what be-
came of the money; it IS not in the bank,
it was not savings deposit, and tile invest
ment has probably never had substantial
existence.
Confidence in savings banks has received
shock in this community and in the country
generally from which it will take much time to
recover. A succession Of similar frauds in
England led to the establishment for small
1epositors Of the Post~Ofice savings banks
These Governmental institutions have had
wholesome effect On the private banks,
which must be honest or they would lose
hat part of the business which has not
'1ready left them. Savings banks, or some
'ther form OF institution for the safe-keep-
ng Of the small savings Of the people, arc
Tho man who has five, ten, or
hirty dollars must have some place in which |
can be kept. II carried On the person
n left at home, it is liable to be ]
tolen. Until VIC can have State law i'm
'osing restrnints and penalties upon the Off
ers, and requiring responsibility, and pro-
iding for inspection, with power to close up
Lnsafe institutions, there will be 8 lack of |
onfdence in such banks. Until such laws
re enacted in the several States there arc
no remedies to meet the public necessity;
ne is the reception BY the Government
Trough the Post-Of1ices Of small deposits,
nd the payment thereon Of 3.G5 per cent in
crest; the other is the issue, at par, Of
ong bonds, bearing 3.G5 per cent in
crest, for $50, or any multiple Of that
um. Small deposits, when they reach $50,
light be convertible into a bond Mt the ap-
lication of the depositor. The difficulty of
coping the bond might DO obviated By har-
'g the latter registered. These bonds being
egotiable could be used in IN emergency
5 readily. as currency. Practically, the bonds
ould unite tho advantages Of safe keeping,
caring intanast-a and randy use Of caab,-|