New-York tribune., 1877-09-19
THE BROKEN SAYINGS BANRS.

| THE BROKEN SAVINGS BANKS.
Considering its small size, the ClairmOnt Saw
ings Bank covered a remarkably large pile of
wickedness. Since shrewd old Jeremy Beutham
first conceived the idea of Frugality banks
there has been no savings institution That mas
more completely illustrated the converse of his
views, by showing exactly what such concern
ought not to be- The rest of the community is
fortunate in the fact that the bank was such n
little one but not the less will its one thousand
depositors mourn at its tomb, without hope OF
its resurrection. They are of class most OF
all others deserving of piy-the frugal poor.
| The official statement last Spring showed that
the largest depositor had at his credit $4,000.
The evenness of the sum indicates that this
referred to some exceptional transaction; per-
haps a deposit made temporarily at the time
of rendering the statement Dividing the
amount of deposits by the number OF deposit
tors. we have little over 800 apiece rs the aver
age of each account. Very few savings banks
in this city show so small an average; taking
the accounts of all depositOrs together, they
exceed $500 piece 1t is, therefore, certain
that the ClairmOnt Bank was handling the
money Of exceptionally poor people-probaby
directors should have been bound by their
knowledge OF this fact to invest the funds
with the most scrupulous care.
On the contrary, the management was n
marvel of bad faith. The concern was run
for the accommodation of broker near at
hand, to whom part of the money received
each day was turned over. The bank was to
share with him in the profits of his operations
with the funds. The officers of the bank also
took hand i'll specializing with the money;
perhaps with what was left after handing
50 900 a day to the broker. The result of
these performances was that gradually the
cash drawer became filed with overdue
notes, unpaid bills of exchange, protest
ed paper, returned checks, memorandums,
tickets for borrowed money, and similar trash ;
and this worthless stuff took the place OF the
greenbacks which the poor depOsitOrs had
handed in, and was represented as cash
on hand, in the statements to the Bank
Department. The list Of this trash would
he ludcrous if it were not so mel
ancholy. 1t is needless to say that
the whole performance was in violation of
plain law, which forbids the trustees to lend
money upon notes, bills Of exchange, drafts,
cor any other personal securities whatever"
and provides that such risky investments
shall be deemed a misdemeanor on the part
/" of the trustees authorizing or officers making
4" the same" and subjects them to prosecution and
punishment. Let us hope that in this instance the
prosecution will be prompt and the punishment
severe. The stcrnest justice, meted out to
the managers of the Clairmont Savings Bank,
will be mercy and kindness to the honest,
hard working poor of this city, who may
thereby be saved in the future from outrageous
swindling.
The operations of the Directors OF the Long
Island Savings Bank were not so thoroughly
vicious, but as the past transactions OF
that concern come to be investigated,
they, too, seem of doubtful honesty.
The statement in another column of the
transactions with the Bank Department which
preceded the appointment of receiver for the
Long Island Savings Bank, puts new and
graver face upon the matter. Up to this time,
it has been supposed that the affair involved
nothing worse than an error of Judgment, and
no one has suspected that any discovery would
be made under the administration of the sub
stantial men of Brooklyn who had this
bank in charge, of the practices which
the reign of municipal corruption and
general initiation foStered in so many savings
banks in this city. But now it would seem
and the authority on which these statements
are made admits OF no questiOn-that the books
of the bank have been manipulated for years
to make a false surplus, and that the recent
appointment of a receiver was obtained by an
undoubted breach of faith with the Bank De-
partment, and probably by collusiOn. These
are grave accusations, which, unfortunately,
there seems to be no room to doubt. The
prospect of contest in the courts as to the
appointment of a receiver will bring the sick
ness of hope deferred to the depOsitOrs. At
best they will have to endure additional delay
of the first " dividend"-as the return of their
money is almost in mockery) called. They
will be fortunate if the litigation, like the sim
liar one in the case of the Continental Life
Insurance Company, does not eat a larger hole
than even the previous mismanagement.
THE DEMAND FOR SILVER