The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-16
NEW YORHs SAYINGS BANKS.
What the Acting superintendent or the Bank
Department Reports.

The Acting Superintendent OF Banks re-
ports that no new savings bank was organized
in this State last year. four savings banks failed
two went Into voluntary liquidation. The saw
ings banks now In tho hands OF receivers are
tho Sixpcnny and Teutonia OF this city, the
Union OF Saratoga Springs. and the Haver-
straw Of Haverstraw. All wore closed on ac-
count OF apparent insolvency; three for mai.
conduct OF tho trustees in addition to insol-
vcncy. known at the time proceedings were in
sttuted. In the other. discoveries were sub
seduen,ly made by the receiver that proved the
graNest misconduct by its trustees and OIL
GERS In their financial transactions. for several
years.
On Jan. 1. 1879. the numbor Of savings banks
reporting 10 the superintendent was / 30 hut two
oithcm were practically closed then. On Jan |
1879, tho number Of savings institutions that
reported WIS l32 but Of these eight were closed
virtually. or were closing. SO that tho whole
huinber OF iye savings banks Is only 12i. The
,asHtst number ,b SS og drportInE was 1853. De-
The features Of the years business are as fol-
Lows: !. The deposits decline Sl3 74S4ta. q
Inc surplus IL Increased R2.502 ia 3. The
number of tepOsitors falls OF 81 533 4. Mort
gage loans have decreased more than II per cent.
3. Investments in Government bontls haye been
Increased about Ia, per cent @. Other stock
iuvesimcnts have shrunk In total amount. :.
hrn estate acquired has Increased 81 81 GOl
:. The total transactions OF the year are approx
matcly l2pcr cent less than in the previous year.
y. Inc falling m in deposits In View York city
N n.
~. Nhue Tue number OF dcpositprs has de-
creased. the apparent decrease il less by 4. 1868
than the number In thefour institutions closed.
tho solvent savings banks show n real increase
IN the number OF depositOrs during tho year.
The aggregate Of deposits would have been
much larger had not many OF the banks taken
stops to decline deposits.
The Acting Superintendent thinks the ex-
penses OF our savings banks arc larger than
they should be- In the majority Of savings banks
there are honesty Of purpose among the trus-
tees. fidelity ia administration. and Intelligence
IN the apprehension OF the true function and
purpose Of a savings bank
Few Of the savings banks which erected bank
ing houses Of large size and at much cost have
iound these buildings remunerative. The
total cost Of savings bank buildings in the State
+ ts5I3,66A2l. The bonds OF towns in the
state hay9 proved to b. one OF tho most
Improbable and unfortunate investments
which savings banks have made. espe-
clally those given in aid OF railroads
The depression In business and tho heavy de,
cline in the rents and value OF real estate have
severely tested the investments Of savings banks
IN mortgages. Tho percentage OF loss has been
small. Loans on churches are especially risky
and factories aud mills are not ~ safe rs dwell
INK houses. farms and stores. The Acting SUI
perlntendont thinks the usury laws should be-
modihed IN respect To the penalty for usury In
~ application e. savings banks. The trustees
should DO punished. not the depositOrs, He also
suggests that mortgage contracts should be
made on n gold basis. Foreclosures in this city
cost too much. he thinks.
The 20 savings banks that have failed in this
state since 1870 owed TO dcpositOrs tl4.9l0 l07
and stand chance OF getting 81 .436A2l more
Every savings bank organized prior TO 1850 Is
now, IN existence. and Is perfectly solvent
While the depositors have LOST in eight years in
the State. by failures of savings banks and
pseudo-sayings banks. not more than IS 400
900. their deposits in the solvent savings banks
have appreciated in four years IN gold value
t4O,OOOOOO In an opinion appended to the re-
port Attorney General Schoonmaker says:
The only rule Of safety Is to adhere rigidly TO
the policy indicated by the statute. to deem a.
ineligible for the position OF trustee officer Of
savings bank all persons who have any pecu-
mary interest whether as owner Of property
subject 10 mortgage held by the bank. or as Dor
rover guarantor. or partner Of debtor TO a
bank. which may influence In any degree the
performance OF offical duty"