The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-18
FROM OUR REGULAR CORRESPONDENT.

wAsHISGroN, March II, 1878.
THE MASSACHUSETTS SAVINGS BANKS LEADING
REPRESENTATIVES, IN DEFENCE OF THE STAY
LAW.
Mr.. Grape. the representative from New Bedford,
says that mere indications which would lead to
the beef that the savings Institutions OF Massachu
sets may be beset by eager deposiiors, and
that the Stay law passed by The Massa-
chusetts Legislature will be a great protection
to banks ana creditors The savings insti-
tutions in the state, he says, are in q remarkably
good condition. with perhaps three exceptions
There about $500 900 900 OH deposit, representing
over seven hundred thousand depositors that the
proposed increase OF authority to be exercised by tho
Savings Bank Commissioners may DO regarded a
wise step. Tho Massachusetts savings banks have
been carefully guarded and examined that TO de-
post money In them has been considered the safest
KIND OF an investment. Mr. Grape continued as fol-
lows:-
The money Is loaned on good personal security.
real estate bonds but OF course the Investments
could not be converted into cash on few days
notice. Now the proposed legislation has certainly
very crcditabo features 10 IT, The Commissioners.
with lun knowledge Of the assets Of tho
books us presented. OF course, very great
sIoners, and they have adm instered their trust
with honesty heretofore II Is not to be supposed
lhat they Will abuse II In the event Of having add.
tional powers conferred upon them. Take Tor illus
traitor, tho savings bank N my own city, New Bed
ioru It between $40 000 900 and sll 600 600
vested and suppose Ia very short time could realize
three lou amount cash. Other ola SAVINGS
instt utons are equally we'll protected In Tact. tho
perceut paid on posts has been 10 large usually
namely seven per cent, that has been the OF
trades people generally 10 put their surplus INTO
these institutions IN preferences to investing IN bonds,
they are the people that give the banks
most trouble. IL is not tho factory opera
tives, the seaiaring men, or the servant
girls who cause panics, but the well.todo Glass;
so 10 speak. The law limitIDg the amount which
person may deposit In bank Is evaded IN very many
ways A father may deposit 10 the iu amount ID his
own name then In that OF his wife and each OF all
the children Of the same family, and then the head
OF a iamiy will invest IN trust for somebody
In that way a man may nave $4,000 or $751; 900
deposit aud will be Understood that this class
make the savings institutions serious trouble SO
you will see that the OF all dcpostors
qurc that, la the event oil sudden demand that the
Commiss oners may have discretionary authority 10
restrict payments and limit the cunt that shall be
paid according to the general condition of the
money and real estate markets. IL is 10 the credit
oil the management OF our savings banks that there
has been very ittlo suspicion attached to them.
on contrary, tho great bulk of tho Coz
snv non. Of hc bppx, ,ba, have been wcso
10 badly managed but that they could pay eighty
i've or ninety per cent on the entire deposits.
aud, n len to close on their own account would
pad dollar for doiiar II this can be sad oil these
institutions That we're not rated as rst class, you can
form lust estimate oil the soundness VI the old
tablished banks that have never made wild invest
ments. rns care exercised by tho Commls-
soncrs, their general knowledge oi tho imam
cal stability Of indorsers OF notes aud
their means OF learning the fair valuation
OF securities have saved the institutions embarass
mont time anu again, so that with the additional
power proposed by tho law anu the knowied nc
CURED IN their supervisory capacity, may DO safely
stated that tho will be great protection 10
all classes, and cause no one embarrassment no lar
can see.
Congressman George %. Lorng says that tho law,
understands H. Is not exactly In the OF
stay law. AS the title indicates, II 10 Tor tho
better protection OF depositors In ngs banks and
is not intended soloy Tor the protection Of tho banks
themselves The savings banks are, undoubtedly, In
many Instances carrying very large amount OF
securities, based real estate In the form mort
gage notes. which will, as a general thing DO July
redeemed. lie won't on TO say
have no doubt that savings banks In Massach uscts
viii be abc W pay, cvcn under the most adverse CIR.
cumstanccs, ninety por TO their deposors, and
In most instances the uli amount of their deposits
do not think this condition viii be Ia any way
charged by the act referred tn The last report OF tho
BaDk Commissioners confirms this OPINION aud ~