New-York tribune., 1878-05-01
CRIPPLED SAVINGS BANKS.

REPORT TO THE ASSEMBLY BY ACTING-5UPERIN-
TENpESr LAMB-FAMURE 70 NURSE WEAK
BANKS INTO HEALTHFUL LIFE.
IYRoM THE REGULAR CORRESPONDENT OF TnE TRIBUSE.l
ALBANY, April 3O.-Nlr. ii. c. Lamb, Acting
superintendent of the Banking Department In reply to
request Of the Assembly reported to-day concerning
measures adopted by other States for dealing
with insoyent or embarrassed savings banks. He
submitted correspondence with OF the Bank Com
mi,soners Of Massachusetts in relation to the laws Of
that state on the subject Incidentally, In his report
Mr. Lamb makes the following interesting remarks
respecting nursing sick banks:
Former suporinendents have sought to restore Grip
pcd saving, banks to suundness and 10 nurse the feeble
into healthy and vigorous condition nave urea 20 90
the same work myself OF all the institutions Whlch
not one is now alive aud doing business. OF
those which l have sought 10 save by the
same kind OF treatment during the last eight months,
oneha Of them are In the hands oi receivers IN spite o
remedial nursing efforts, which were adopted ny
trustees and myself and they were placed IN
the hands Of receivers ON the application Of Their
trustees and not by mine The experience IN Newfork
and the careful examination 0 tne results o lhe en-
raised the question in my mind whether In the present
as. state a G PGE PiaE the worst Of Saygs banks and
their officers IL Is possible 10 rescue dlscredted' weak
and crippled institution, aud to put II on sound
footing.
Mr. Lamb gives the results OF correspondence with the
Massachusetts Commissioner and Of his study OF the
administration Of the BanG Department Of Connecticut
and finds there TO believe that weak banks can
De saved by nursing. He adds;
The Superintendent Of the Bank Department OF New
York Is instructed by competent and recognized legal
authority that the statute which prescribes his
duty aud regulates his conduct does not grant him
discretion In dealing with inSolyeut savings banks.
when he finds such conditions In any savings institution
he il compelled to report them 10 the proper officer I'M
trustees promptly make the deficit good. Whether
there need laws IN this state for dealing with
the savings banks which to difficulty IN this extra
ordinary period odepcssio and hrnkage of values sa
uuest1o which respectfully submit 10 the consideration
of your honorable body II the public opinion respecting
the waste OF dcpOsOrs' funds ia the proceedings OF
liquidation by receivers OF sayiust banks be wcH
founded certainly legislation Is demanded for the
protection OF deUO-itOrs Bat am not possessed Of the
requisite Information 10 say definitely that
such opinion IS correct. Receivers do not report
10 tho Bank superintendent / think they
should do. II receivers for savings banks be
a necessity the record OF their transactions should
be regulated TO protect the interests of the dopOs
tors against rapacty mprOvdcncc or ncapacy IN such
custOdans Of ther money.
To-day in the Assembly Mr.. DAILY offered resolution
directing the Committee Banks to report what
measures II any, necessary for the better protection
Of depositor savings banks and also to prohibit
tortionatc charges made by receivers winding up affairs
OF nsolvcnt banks. Adopted.