New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-25
TIE S1YLNGS R1NKS


Superintendent Hepburn's report upon the
condition of the Savings Banks OF the State
covers year of exceptional prosperity, and
il therefore of peculiar interest. The report
is made at an earlier date than is customary,
because of the unusual promptitude of the
banks in transmitting their reports-a habit
which they have been n long time in acquir-
ing, and which, it is to be hoped, they will
not soon lose.
There has been no change in the number of
the banks during the year. They show total
increase in deposits of S34,37I, 1876, and in
surplus of $12,3171I2. The years rise in
values has, of course, strengthened the saw
ings banks. The increase on the estimated
market value of their stock investments alone
is $50. 72O, 1SG. The number of depOslt0rs
was greater by s9,237 January 1, 1SS1, than
on January l, 1850. There were 44,27G more
accounts opened during 1880 than during
1879, and only 9,130 more accounts were
closed than during 1879. The total amount
dcposited during 1850 was $19,791,O77
greater than during 1879, while the
amouns Withdrawn was only $j,S32,9JO more
than during 1879. There was also slight
decrease in expenses which, though not SO
large ms il might have been made, is still an
encouraging sign. The savings bank deposit
ors OF this State now number 9j3, 707, and
their assets have reached the vast total Of
SlOO,91I,3oO. The Superintendent correctly
a.cribes this condition of the banks 10 the
prosperity of the labOriug class. and not to the
use Of savings banks by capitalists. This is
uroycd by the fact that the number OF indi-
yidual accounts has grown 40 rapidly, while
the average amount of each account has
increased only 81 Il. 1t is easier to
realize the vast importance of the saw
ings banks as an element in the life of
the State, when we reflect that, taking the
population at tho latest figures, one out of
every five Of the whole number, including
men, women and children, is a depositor, and
that the sum total OF their savings equals
about one-ffth OF the National debt. There
is no need Of multiplying words to show that
here is an interest which needs the most
careful aud scrupulous management and su-
peryision.
Mr. Hepburn makes recommendations upon
q number of important subjects. The chief
of these is the great problem of the saw
ing5 banks to-day-hOw they shall con-
tinue, with their investments so restricted
by the law and the rate of IN
terest on Government bonds and other
public securities steadily declining, to pay
such rates of interest as will attract deposit
tors. Under the law savings banks in this
State cannot invest in railroad bonds or the
bonds of cities of other States, although such
Investments are permitted In some of the
New England States. Connecticut has a law
ncrmitting banks to buy the first mortgage
bonds of railroads which have paid interest upon
their bonds and dividends upon their stock of
ot least per cent, for five years back. The
enactment of similar law has been suggested
in this State, but Mr.. Hepburn shows that it
would effect nothing. 1t would be I'M
wise to permit investments in the securities
of railroads outside of the State,
into whose validity the Bank Department and
fine Legislature could not make any official
irouiry. Excluding the railroad bonds of
other States and also of leased lines, only two
New-York roads would come under the ope-
ration of such law-the Boston and Albany,
and the lNew-YOrk Central But the bonds
of the frst-named road cannot be bought ut
all and the bonds of the second named rule
at rates which make them hardly preferable
70 Government bonds for tue purposes of the
hanks. Mr. Hepburn holds that to authorize
investments Ill luC CITY bOhuS VI OIHtI DtdJeS
vould be to run the risk of loss by such acts
of Reputation as the cities of Mobile and
Memphis have committed. Perhaps the SupeIin-
tepdent Is correct in deciding against allinyest-
ments in securities OF corporations whose va
"lidity it is beyond the power of this State to
ascertain or guarantee" on the ground that
they would introduce elements of uncertainty
"hardly cOnsonant with proper conduct Of
"savings banks; but when there are so
many municipal securities in other States
which are hardly Jess safe than Government
bonds, it would seem that some selected
classes of them might be laid open to invest
ment under careful restrictions. Commission
of tho leading State officers. for example,
might be constituted to make recommends
tons upon the subject to the Legislature.
There can be no question, however, that the