The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-12-27
RHODE ISLAND SAVINGS BANKS.

VIEWS OF PROMINENT BUSINESS MEN ON THE
DESIRED LEGISLATION FOR THE PROTECTION
OF DEPosrToRs OF THE JUDICIARY
COMMITTEE OF THE HOUSE.
GBY TELEGRAPH TO THE HERALD.
NEWPORT, Dec. &c, 1873.
The Judiciary Committee Of the lower house Of
the State Legislature had . meeting to-day to hear
the views Of parties interested in legislation concern
ing banks and other institutions for savings large
delegation was present.
VIEWS OF CONGRESSMAN BALLoU.
Congressman Ballou believed it would be wise
measure to have law forbiddng any savings bank
making over Eve per cent dividend until it had q
surplus Of perhaps ten per cent on its deposits.
In his experience and judgment the confidence OF the
depositors in savings banks depended assurance
OF regular dividends not necessarily large. In his
opinion If they could have their dividends regularly
and be satisfied that there was surplus to meet
losses from any cause. there would be increased
strength and confidence in such institutions. He
suggested change in the Bank laws that persons
indebted to bank might be eligible to Office in It,
It did not make much difference in the city, where
there so many capable men, but in the country
the men best qualified were the borrowers of money
The men of affairs and those Of wealth were the
debtor class, while the laboring classes. who were
the depositors were chiefly the creditors. II the
former class were taken away from the bank Offices
the institutions would be deprived Of the best at
tainabe talent to manage them.
PROTECTION pEposIToRs
william Goddard, OF the house of Brown & Ives,
said that the dcpositors should be regarded as the
wards OF tho State and in legslating with reference
to the banks every consideration should be taken
into account for inducing these people place their
money them, and tho State should be made to sur
round them with all ncedful protection. In his
opinion immense deposits were often made for tho
purpose of escaping taxation, and he suggested that
corporations, other than religious and charitable
societies. should not be allowed to deposit money.
RATE OF INTEREST.
One gentleman very much in doubt IL it would
be of advantage to fix the percentage low five
per cent At the present time the rates consd-
erably lower than they could possibly remain and it
would unwisc restrict the percentage to less than
ings bank system would be overthrown unless great
care was used in legislation. The deposits should be
fostercd in the interest of the great industries Of the
state but il it intended to fix the rate that
would be for the interest Of the depositors with
draw their money and buy i've per cent securities OF
New York the government 1t would dissipate the
fund and put il out OF the control OF the State.
Some were of the opinion that the trouble with
Rhode Island banks had been the paying of too large
dividends. The establishment Of an Office of bank
examiners. the limiting Of deposits to $4,000. the
limiting of dividends to q certain percentage, the
continued restriction OF trustees from borrowing
money from their institutions. the making Of all de-
postors of 81 of year standing. corporators Of
the banks, and the compensation Of bank officers,
were suggeste and urged.