The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-02
THE SAVINGS BANKS.


IN COMMEHtIAL SENSE.
Interviews with President CuberBator Of
the Citizens savings Bank, ana with
Presid.nt UTQnhart Of the New Or
leans Savings Institution.
The run on the New Orleans Savings Insti-
tuition increased In magnitude yesterday.
The depoeitore crowded the sidewalks and
the porch OF the bank. and although many
showed anxiety In their faces. there was no
departure from tho decorous bearing OF the
previous day There was even little pressing
to obtain admission within the doors Of the
bank, guarded by two policemen, who per-
mitted one or two depositors at q time to 20
In; for the bank continued the entire day to
pay 10 per cent on deposits Outside several
persons, depositors In the institution, met
friends, also depository. and In not few
cases dlssuaded them from Attempting TO
Withdraw their money from tho institution.
Among the former there Was one In particular
who was emphatic In the expression of his
confidence that everything would turn out all
right, and he asserted that he had been offered
by Car, ndelet street broker sfnety cents on
the dollar for bis claim against the bank,
which he had refused, with the reflection that
II deposit In the Now Orleans Savings In
stitution were worth 30 per cent to a broker,
&c was worth ninety-six to him, the depositor,
who was satisfied OF ultimately getting back
his capital and the Q per cent annual interest
allowed on IL.
After banking hours we had the pleasure OF
a conversation with President Urquhart.
This gentleman appeared much relieved after
his heavy days work. with the result Of
IN
81 kept the doors of the bank open to-day"
said he, "till A o'cock In the Afternoon.
The clerks, at 3 o'clock. were Almost pros
trate with fatigue. having been mp since
morning paying the deposttors who came to
claim their Is per cent. When told them
that they had to continue their work one full
hour more, they begged to be let Oh, but
stood firm apd only permitted one to 20. he
being really sick with exhaustion and fatigue.
/ took his place and tho payments continued.
At o'clock there were thirty more deposit
tors before the door called them all In and
paid them"
The bank has now satisfied all the deposd-
tors who wished to avail themselves Of the
payment Of Is per cent This has been ac-
cornplished without tho bank borrowing
money for the purpose, though assistance was
freely offered by the presidents OF the other
banks ut O meeting held yesterday evening.
1t is great pity. that this senseless run
could not DO stopped. as the bank is now
forced TO realize It's available assets, composed
to great extent of property and mortgage
notes. A large amount Of real estate will
be thereby thrown upon the market, which
will certainly not DO d benefit to the commu-
nifty In general. Among the mortgages are
some for considerable sums resting on prop
erty belonging to our most prominent
churches and greatest charitable institutions.
The GitIzens' savings Hank.
During the day what had been expected
would be- the case with the Citizens Savings
Bank occurred. This bank. which is located
at the northwest corner OF Baronne and
Crayier streets, received the visit Of a large
number OF depositors. but were Informed that,
availing themselves Of the provisions OF their
charter and the printed contract contained
In the depositors' books, the bank directors
had concluded to require sixty days notice
from the depostors before paying them.
Nevertheless, In order TO accommodate the
patrons OF the Institution and to avoid pos
sible hardships In certain cases. the pahk
would pay Is per cent TO all applicants. The
announcement seemed to have III excellent
effect, for during the day not more than $4,000
was paid out at that rate.
A Representative Of the DEMOCRAT In the
afternoon interviewed the president OF the
institution,
MR. J. T.. GUBERNAToH,
on the subject Mr.. Gubernator said that the
run on the New Orleans Savings Institution
had forewamed the directory Of the Citlztns
Savings Bank, and the resolution had been
adopted on the previous day TO pay only III
accordance will the SIXTY days notice RUE.
pension In he commercial sense vi the term
Mr.. G.-Nut at all.
Rep.-Would you call the stoppage Of full
payment by the New Orleans Savings Insu-
tntion a suspension, In the same sense
Mr. G-Certainly not. The New Orleans
Savings Institutio. has only awaited itself Of
its right In an extraordinary emergency, ana
it Is my opinion that IL should have exercised
that right as soon as 1t became apparent
that run would be made upon 1t. No savings
bank can stand a run epOn 1t. for they have
no reserve fund from which 10 draw upon In
an emerg, Dcy.
The money which Is placed In the bank by
deposi,ors is invested In securities, such AS
first-class mortgages and paper, or lent ON
the best collateras. with large marquis, ana
liz kept constantly working, sufficient
amount In cash being necessarily on hand 10
But II all the depositors should call on the
same day for the full amount Of their de-
rosits, it would then become necessary TO
forecose all mortgages and other contracts
with persons to whom money has been lent
by the bank, which would be an impossi-
bility.
Even though 1t were possible it would have
to be done at an extraordinary sacrifice; and
that was why the clause was inserted in their
charter, that persons depositing money at in
terest In these savings banks must give sixty
or ninety days notice Of their intention to
withdraw their money. Ordinarily the bank
Is ready to pay large sums ON the simple de-
mapd of the depositor, which Is done simply
to accommodate it's patrons. In extraordi-
nary cases such as that which now presents
itself, the sixty or ninety days are necessary
to permit the bank to convert It's securities
into cash In order to meet the unusual de-
mand OF its depositOrs.
The present condition OF affairs, added
MIR. Gubernator. will have to be checked, and
he was satisfied that 1t would, through the
Influence OF the leading financial men OF
the CITY who were tno deeuiy interested In