New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-19
G1TLNGS INK SECERLTY.

TIE REcEyERsHIP EvIL-A USEFUL BILL BEFORE
THE sENATE-INvEsplENT IL CONVENIENT
CERTIFICATES.
To the Ed ttor Of The TrtbuHs.
SIR: Secretary Shermon's success with his per
cent bonds and later with his $40 certificates, j.
owing TO tIe panic existing throughout New-IOrS
and New-Engand among the depositors of say
ines banks. In this State and New-Encland, the
savings deposits amounted in 1872 TO 1910 600 600,
far outruuning the deposits of the National banks.
As there was a bank department in New-Ycrk and
Massachusetts, with examiners, laws and super
vision. the poor felt long secure. About 1879 how
ever, there were some very bad failures in New
Yorl, savings banks attended with similar failures
in New-Engand. 1t was next charged that many
of these banks bankrupt in New-York had been
uurposely made so, needless panic being excited
hy artificial causes so that some Judge could make
a receiver on petition who received large commits
sions There were about thirty savings banks in
bankruptcy in this State at a recent period whose
deposits had amounted to thirteen and quarter
millions dollars, pTodigious sum when We consider
that it wa, put in by mechanics farm laborers,
want girls. apple women, etc.
Mr.. John Mack, an old savings bank director, who
has been an enthusiast on this subject, shows thar
in the case of the SiXpenny Savings Bank where
the receiver had disburscd about Sl,300,O00, his
commissions were 1000 alone Prior to the law
oflS75, we had 40 such troubles, and no savings
bank failed in the City Of New-York that did not
nay dollar for dollar. Another SAVINGS bank IN New
York is charged TO have had 10 cents IN gold for
every dollar of liability, but still was bounced
II has oven been admitted thar the Bank Commit
Tee of the Assembly has had members on good terms
with tins wTeckug ring. a bank is commonly
closed by an examiner representing as lunrm, and
some judge. selected az random, throws II into
bankruptcy, and occasionally the very examiner
who reported II rotten gets the lar place OF receiver
At once the banks securities dcprecialc' ana
forced sale beng made of them often only "a Few
cents on the dollar are LETT.
BILL TO REACH THIS CASE.
There is a bill, No 40 of the State Senate in
tended to reach this question if it be found and
acted upon. 1t proposes that the chief officer of the
Rank Department shall give bond, and neither
he nor his deputy be interested in any bank, or as
an individual banker. Bank examiners are to take
no gratuity or gift nor are they allowed to be re-
ceivcrs. Mr.. John Mack above referred to, thinks
that section 80 OF the Laws OF 1870. allowing saw
iugs bank trustees to be paid, ought 10 be wiped
out; that they ought to resign as trustees u theV
want to hold salaTled positions lie even advocates
that the State ought 10 make savings bank secur-
ties good after II has taken the banks out OF the
hands of responsible men. About twO-SeyeuthS of
the savings banks of the State OF Ncw-IOTk are
charged not 10 have made their returns in form as
REQUIRED by the Banking laws. The proper way TO
close bank ought TO be by the trustees or direct
o, with the consent Of ma ority Of the depostOIs
and IL ought TO be unaccompanled by other eX-
peuscs than mere clerk hire and stationery.
INVESTMENT IN GOVERNMENT CERTIFICATES.
Heretofore the huge deposits in savings banks
have been available for local loans, but they are
now retiring into the low Government bonds and
the small certificates ISSUED from the Treasury. 1t
begins to be problem to whether money Will not
be tighter. However, the States themselves are re
sposible for this By not taking better of their
savings banks. The whole question comes down 10
the matter OF responsible state supervision. The
United States has frightened its laws and kept ITS
National banks down to tho strict performance of
only their proper duties. that the time may be at
hand when, observing this the whole bulk of Amer
lean small savings will TepOse in the National debt
a. is the case in France and bear stated trustworthy
interest to our poor people. AT.
Ner- lOTk, April 1G 1879.