Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-04-20
A BANK RETIRES.
TT PAYS ITS DEPosIToRs AND DECLARES
EXTRA DIVIDENDS.
But the New Constitution Makes it Un-
profitable to Continue the Business.

Notice is given that the Sacramento Saw
ings Bank ceases to do business. II gives no.
tice to its depositors that it will, from and
after May 1, 1880, be prepared to repay all
deposits on demand, with dividend of the
earnings from January LIST to May l, 1880, at
the rate of six per cent. per annum, as well
as an extra dividend of the reserve fund of
four and half per cent. on all deposits in
bank April 80, 1880. This bank was organ
lied March 10, 1867, with C. H. Swift Presi-
dent and Edward r. Hamilton Cashier and
Board of Directors composed of G. II.
Swift, Newton Booth. James Carolan, Leon
ard Goss and William P Coleman, of which
number G. H. Swift and William 2. Cole
man only remain, the others having removed
from the city, and their places being now
filed by f. Birdsall, 2. Scheldt and f. +.
Dray, Ed. r. Hamilton still being Cashier.
This bank has been in existence over thirteen
years, and during that time has handled over
Sl5, 600, 600 of deposits and has repaid its
ten thousand and twenty depositors over
81 400, 900 in dividends, and now closes a
career of which its managers are exceedingly
proud by repaying its depositors on demand
in full, with current rate OF interest, beside
an extra dividend of the surplus fund, as
stated. This statement, brief as it is, reflects
great credit on the management, and must be
besides very satisfactory to its customers, and
stands as a record of character out
CT the usual order in the history of
is also creditable to the community
where so successful business has been prose-
cuted. 1t is announced also that the Sacra-
mento Bank succeeds to the Sacramento
Savings Bank, with these officers: q. H.
Swift, President; VIM. 7. Coleman, Presi-
dent pro tenn. Ed. r. Hamilton, Cashier;
T. r. Dray, Surveyor. Board of Directors
c.. H. Swift, VIM. 2. Coleman, +. Birdsall,
P. Scheldt, +. r. Dray. The successor is to
do general banking business, but will en-
gage in no commercial transactions. A con-
versation with the bank officers discloses the
reason for the Sacramento Savings Bank dis
provisions of the new Constitution and the
revenue laws are oppressive and unjust
where they apply to savings banks,
and hold that the depositor in mutual
savings bank is taxed on his deposit, and the
bank, which is merely the agent of such de-
pOsitOr, is taxed again on the same money,
thereby levying double tribute ON the same
property, and discriminating against the
savings of the mechanic, laborer servant
girl, and that portion of the community
whose accumulations, although Individually
small, when combined aggregate largely.
The officers found that the law will work in
juriously to the bank, and that under its ar
ticles of incorporation it was only question
of time when it would be compelled to close
its business. Hence they say "we have de.
cided to do so in advance and being fully
prepared for it, will do it at once"
They add, in reply to inquiry, that the sue
cessor to the savings bank is organized under
the general law and will continue under the
management that has so long operated the
savings bank, but by the succession named
the onerous burdens imposed on savings
banks are avoided, and this is the modus
operandi The bank will receive the money
of its customers and will make the invest
ments direct for them and in their names,
merely acting as their agent, agreeing to
guarantee the security and the repayment of
principal and interest, and charging a reason
able commission for so doing. In this way
the mortgages will be assessed direct to the
customer, thereby saving the one tax for the
investment, the bank merely acting as any
real estate agent would do. The experience
of the management with the old bank will
avail them much in conducting the new sys-
tenn, and the change will not result in any
financial shock to the community whatever.
1t will be remembered in this connection
that the Sacramento Savings Bank was one
of the business institutions which, during the
constitutional campaign, notified its custom
ers that its managers believed the adoption
of the new instrument would force it out of
business. Opponents of that theory laughed
at the idea, and not few wagers were offered
that it would not discontinue. The sequel
proves who has lost