New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-28

quent, and have revealed In some cases gross
betrayal Of trust. The proper remedy ior
every sound bank Is to make its condition
fully known. But the stay law must tend to
increase dIstrust, to destroy that confidence
which has made the savings banks OF Massa-
chusetts generally so useful and successful,
and, in the end, to increase Withdrawal OF
funds, diminution of deposits, care OF savings
by boarding or small investments. Ultimately,
failure of many savings banks may result
from this very law.
1t has been Justly praised feature IN the
conduct of Massachusetts, that its legislation
has so greatly stimulated the accumulation OF
savings. That page of the record "hich
showed the growth of savings banks IN the
State, the great number Of depositors, ana the
large amount of deposits, was deemed one Oh
the proudest. From 1880 to 1s4O the de-
posts more than doubled; in the next decade
the gain was still greater; from 1850 to leoo
the deposits more than trebled between looo
and 1870 they rose from S45,OOo,Ooo TO
S135,745, 600; and in 1875 the amount had
risen to S234,OOO,OO0. Over 100000 de-
positors in a State of 100000 population
this was indeed proof of thrift, industry ana
wise legislation. Under the influence OF
stay law, who can doubt that the records OF
two years hence will exhibit great decline
in the number of deposits and the amount OF
savings thus invested
Recent Withdrawals of deposits have been by
no means altogether the result OF unreasoning
alarm. In some cases, distrust of banks has
been justified, But far more potent cause,
it is probable, has been the desire to make
N IN ont hopds which
have been recently offered in large amounts,
and on terms peculiarly attractive to purchas-
ers of small means. Not only were the bonds
comparatively cheap, but it was seen that II
the Silver Bill should presently cause depre-
citation of currency. the bonds might advance
in currency price, while deposits III banks, II
made payable in silver, would virtually shrink
in real value. These considerations, with the
growing distrust III corporate management,
naturally led to large Withdrawals of deposits
But there was no reason to apprehend that
these influences would have caused removal
of the great body of deposits by the poorer
class, except from peculiarly distrusted banks.
A mere panic il was possible TO check under
previous legislation, and by the terms of the
contract with depO,itors. The sound banks
would have passed through the temporary
emergency, and found themselves the stronger
in the end. If the unsOund banks had been
forced to close, that would not have been a
misfortune to the commonwealth.
The remedy adopted was not only the worst
for the commonwealth. aud the worst for the
sound banks it will have most disastrous
influence elsewhere. Already Western jour
nails are quoting the act of Massachusetts, az
justification Of measures Of relief" which,
they say with force, are not the more otjec-
tionable because they apply equally to all
classes. When stay laws are proposed at the
West, how can the Bay State now point TO
them as proof OF low civilization, defective
morals, or inferior intellect Creditors in
Massachusetts,, when they appeal to the rea-
son or integrity of Western communities
against measures mistakenly called for IRE
chef" will very often hear of this act. In
any region where bondhollers are hated and
regulators thrive, such seed as this, cast
upon a soil SO fruitful, will be apt to yield a
plentiful crop of mischief. Men who spurn
the example of Massachusetts, in all else will
make haste to follow it here, and to shelter
themselves behind the name and fame 80 long