The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1877-06-01
Life Insurance and Savings
Banks Assets.

Speaking of the damage to trust
funds from the continual shrinkage
of real estate values, the New York
Tribune says:
On the 1st of January, 1876, the in
surance companies of the City of New
York had upward of $l22, 600, 900 loan
ed on bond and mortgage. Nearly all
of this amount must be loaned in this
city or its near neighborhood, while
it Is probable that some of the outside
companies, largely those of New Jer-
sey and Connecticut, have added to
the real estate loan fund out of their
great accumulations. Three city COM
panies-the Mutual, Equitable, and
New York-have an aggregate of $685.
000, 900 so invested. The united mort
gage loans of savings banks and life
insurance companies of New York
are now therefore little short of $780,
100000. These are the formidable
facts. What Is the remedy?
If the remedy which the Tribune
asks for but does not undertake to
perscribe, is the specie payment policy
it advocates, then it should rejoice to
see the shrinkage ofreal estate values
continue until most of the $122, 000,-
600 of lie insurance company real
estate loans become worthless assets,
and the present and prospective wild
ows and orphans for whose benefit
these assets exist are deprived OF
their sole reliance. And the Tribune
should also rejoice that a similar ca
lamity is overtaking the savings
banks assets, and that the prudent and
economical people who have Invested
their savings in those institutions,
against ga rainy day." are on the
road to bankruptcy and want. The
Tribune says of the savings banks:
An Intelligent savings bank man.
ager of Massachusetts some time age
sailed attention to the great increase
| in the volume OF loans made by saw
ings banks in that state on mortgage
security. In the ten years from 1866
| to 1875 these loans rose from SIS 700,
900 to $l20 200, 900, while the total de-
posits in savings banks in the same
period rose from 100000, 900 to $685..
600, 900. 1t appears that the proper
ton OF deposits invested in mortgage
increased from one quarter to One-half
and that at the end of the ten year,
the mortgage loans were double thu
entire deposits at the beginning o
that period. The same writer state
that whereas in 1868 the savings bank:
held about 80, 900 900 in United State
bonds, in 1875 they held only 1900,
600. In Connecticut we learn from
Mr.. Keys valuable treatise on saw
ings banks, that out of total deposi
of $71 ,000, 900 on the 1st of January
1874, $47, 200, 900 were loaned on bont
and mortgage. In Rhode Island, on
of deposit of $47 200, 200, 1900 ,00
were invested in the same manner
In these three New England States
the aggregate of deposits in saving
banks in 1865 was about $50, 000, 900; Il
1873 1t was $3lS, 100000, which $l71,
O00, 900, or 81 per cent, were loaneC
on mortgage. The amount now ex
ceeds $500, 100000.
And the Tribune goes on philosophi
cally to remark:
Hitherto there have been very fev
failures of savings banks in New Eng
land, for they are generally honestl
and ably managed and under tn
supervision of capable State officer
who examine their condition periOdi
cally, not by the inspection of swOr
returns, but by personal investigator
on the spot, the only mode of examins
, ton which is worth anything. twill
however, be very extraordinary
= this class of property escapes the uni
veral shrinkage, which is bringing tn
country down to normal values
through it has not yet restored it to
Q sound currency. There is not mort
gage debtor whose real estate has Nc
frightfully shrunk, and many a ma
I who was believed to be beyond til
reach of catastrophe five years az
is now utterly impoverished by th
fading away of all the margin aboV
4 his mortgages"
And when the savings banks de
D posItors and the life insurance ward
D have lost their reliance against poN
= erty and restitution, and most of tn
Z real estate owners In the country haV
been ruined for the crime of ownir
F real estate, we hope the TribuI
will be satisfied with the results {
the financial policy it advocates, al
It finally comprehend the fact that the
: are other and better ways of restoriT
a "sound currency" than by improve
d ishing nine-tenths of the industriol
d and frugal people of the United State