New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-27

| accOuntsu...... sio.83Sl $4,000 5,OS5 .'.'."
N opened .. aoo 1897 IsaAGl 42l6
' eIaseG y. ~. si,309 1886 1858 ........"
Amt deposited,
| including inter. - 49,. .. -. .-.o-ot
A rs, wIian at2s
| Amt Of interest
postors 1Gl57,3i7 1926 sGs $780, 7o ....."...
The report further says that the total deposits in the
savings institutions have declined during the last year,
they did In the preceding one; the aggregate number
OF depOsors is also slightly less. a. The deposits fell
of nearly four millions of dollars III the last year ca
The transactions Of the year were smaller In their vol
umc than In other recent years 81 More accountswee
opened than closed. a. The average amount OK
each deposit declined. o.. The surplus Of the insttu-
tons reckcned on market values Of investments in Sc
curitics shrunk Mr. Lamb finds in these facts proofs
only that the savings banks are coming back to sound
rules in administrations that they command the reason
able confidence Of depositors and. IN spite OF the great
shrnkage in values they are still substantially and en-
couragngly sound III respect TO Their financial cohtoh
and prospects"
Since 1878 the wage5earnDs class who deposit money
In the savings banks. have not been able generally to
make such deposits they did for the five years proceed
ing Yet the deposits In savings banks have III
creased The average has increased So 60 or nearly
10 per cent For four years capitalist class have been
placing funds in savings banks rs the securet and most
profit aule Investment that they could make of their
money This is why deposits had largely Increased since
1873 and why the average account had advanced more
than $50 Dnrlhg the last OF the Legislature an
act was passed which limited the maximum rate OF in-
tercst paid by savings banks to per cent per annm,
which is | per cent lower than the former rate.
The immediate effect of this net was to cause the
withdrawal OF a large amount Of the capitalist
accounts savings banks; and the falling OIL IN de-
posts was also attended By decline in the average de-
posit During the year more than $4,000 more accounts
were opened closed by the institutions which
reported both years. THIS. Mr.. Lamb says, is rather
significant Indication OF the hold that the savings banks
still have among the people" In respect the hnan-
cal condition OF the savings banks has changed Their
have been placed to some degree In new secr
ties and this fact he regards one Of the evidences of
tie vigilance and prudence Of trustees. Thus, IN 1871
the mortgage securities reduced over eight millions
OF dollars while the stock investments have risen more
than five and one-thnl millions. "And stock invest
ments or loans upon stock, made since the gem
era Act OF SO passed are among the best secur
ties which tho conntry Affords ON the lst OF January
1870 the loans coaeral nearly all Of which could
not be made under general Act Of 1875. $780,,
600. ON the ist of January 1873, these loans were
appro xmately SI2 OOO that Sl $4,000 OF old loans
have been changed from the poorer securities 20 those
unqne,tionably good and almost oDchalf Of the out
standing old loans In few savings banks. M
Lamb IN this fact also proof of tho attention Of the
attention and diligence OF trustees. There compel
/ mcnis legally made before that law was passed
Taking the savings banks together" says Mr.. Lamb
spite OF failures shrinkaSc In values and the with
drawa Of funds By unemployed dcpositors, the sum o
deposits has gained twentyseyen millions OF dollars In
the last four years. Mortgage investments have de-
cned three millions: the stock investments have in
creased over thiry.ght and threequarler millions Of
dollars and the surplus OF the institutions has increased
more than ten and onc-ha millions Of dollars, placing
real owned ny the savings banks nj its cost in
SECS. During tins period all savings banks which are
now operation have paid interest to dcposltors These
are facts which dispute Can II be fairly said
that savings bank system is faurci Can it indeed
bc claimed that any other class OF oOrp0raons present
. record which ia to-day comparable with tlisP
or the nine failures OF savings banks III 1877, five OF
the institutions were located IN Newly ork Ci'y and mot
one of them should have been organized" The
losses OF depositos, however IN these ~ III az he h,
result from mprudeut investments. or - the knayish
conddct. gross mprOyidence OF trustees" These
banks owed dcpOsItors $I,GOi,7l9 "a. Some of them
Will pay little nothing for their resources were stolen
cents Mr. Lamb is Of the opinion That saving banks
Will not again be established In this state by the Dozen
ton r, 10. o n"c h,nesor men and women
The superintendent has found reason III former reports
To crclse the prOdigalty shown III the expenses OF
some savings banks during the last year there was
duction total expenses ~ all the savings banks III
the OF SlO7GG7 In few cases.whcre 1t seemed TO
that there should be Immediate reduction IN saa
res OF officers of savings banks, he has made the sug
cesion directly 10 the boards Of trustees OF such insi
tutons In only one instance any reluctance shown
10 entertain the proposition ana To take steps To comply
with such advice
Experience demonstrates the report, that the
sure At test OF the financial condition and the Official
duct of savings institution Is to be found in careful,
thorough aud searching examination The examinations
have shown during the past year the Insolvency of
several savings winch seemed TO be solvent udg
ing by reports The examinations during the past
have also shown situation IN several savings
banks which required corrective measures that were
Piled by the superintendent to curb bad ten
denotes In administrations. The exact cost OF reg
ar M oo%s ' eS eaT s o ls ss
1874, $10.s75 1879, $i,0lj Is 1876 $4,000 1877.
S22J. IL is practical question whether the eXamina
tons be done well they should be tor the
amount paid In late years. Hitherto the examining
corps has been something auxiliary branch U the
department. Mr.. L;tnb thinks that the greatest
efficiency and the best service will be attained by
changing this and bringing the examiners into the Office
stan.
OF the proposed postal savings banks Mr. Lamb
This seems to be presented In the form of
cent such proposition does not appear 10 be parcu-
larry favorable To the dcposors In the savings banks III
this State. What will the poor deposition do with his
safely thieyesi The maximum rate of interest
the proposed bonds.is per cent the maximum
. per cent. Upon tho deposits in the savings
banks In New-York the difference IN income be-
tween 4 per cent and per cent IN
lions OF dollars every year. This differ
enoe annually approximates the total loss
~ depositOrs IN savings banks In the State during
the last decade In view of the risk o loss OF bonds by
theft aud the smaller income from the investment /
think the savings bans In NcwYork nave
to apprehend any material dimnuton OF then deposits
the purpose OF investment In postal bonds Savings
banks may yet fail The present time is Of
pied trial for all stmrut- made years ago The
mgs banks Oi NewYOrk stronger to-day than they
la 1873 Their assets IN better shape and
worth more money In the market tian they were then
Where nearly $3.50 100000 invested Ia other ways
OF which the Ire truly said The Act ot 1873
regulation OF the savings banks proved by
cults to be judcious salutary and effective"
BROOKLYN BANKS