New-York tribune., 1885-02-08
SAVINGS BANK DEPOSITS.
THE RATE OF INTEREST PAID ON THEM
WHAT THIS Is DETERMINED BY-SECURrTIx8 IN
WHICH rIINna MAY BE INYESTED.

WHAT THIS Is DETERMINED BY-SECURrTIx6 IN
WHICH FUNDS MAY BE INVESTED
The time is near at hand when, by require
ment OF tho law, the Superintendent Of the Banh
ing Department Of this State will send to the
Legislature his annual report relative to
savings banks, based upon their last SEMI
annual reports which their officers by law transmitted
10 him before February The majority Of these reports
mako favorable showing. Many Of the larger insttu-
tons increased their surplus since last year. when
tho proportion of surplus to liabilities
large. Under the strict and carefully drawn pro-
visions the General Savings Bank act and its amend
ments the guards thrown around the deposits of
tho great masses Of tho people, whose
plus earnings are held by these banks
now amply secure them against any losses
except those caused by the absolute knavey Of bank
officers. for the detection Of which the Banking Depart
has every facility BY that act the Investments OF
the banks limited to securities usually regarded as
the safest such as Government bonds. stocks OF
certain States, city, county, town or village
bonds, Issued IN pursuance Of law In this
State bonds and mortgages on unncumbered real
estate this State worth Mt least twice the amount
loaned thereon tho total OF such loans not to exceed
sixty per cent Of the Deposits, and real estate for
banking purposes, but under careful restrfo-
tions as to the amount. The Superintendent OF
the Banking Department is required to examine every
bank in two years. and much oftener as he may
deem necessary the OF the examinations being
borne by the banks.
The lfe-bood Of savings banks is the interest that
they enabled to draw from investments safely made
Of the utmost Importance that these should be lim
tied the class Of securities Of recognized stability and
that no avodabe risk should be taken for the purpose OF
obtaining large rates OF interest The first object OF
tho depositOrs, who not generally persons
great wealth. is to put their money where 1t VIII be
carefully preserved Tho rate of interest that they
to receive from the banks Is secondary
consideration The rates OF interest upon de-
posits declared by the savings banks this year for
the six months preceding January l are generally the
same as year, the majority Of them paying per
cent and many 3a per The average rate for the
year about the same as Inst year t03o4),
when, of tho I1S banks engaged In
active business, ten paid per cent
+ paid 9 ssn ts psa Ssa Sen pad per-
paid from 3a 10 per centsnd the remaining paid from
The rate Of interest that trustees of bank from
time to time decide TO declare IS largely regulated py the
Ifthey tho for instance OF large quantity
Of Government bonds which Pay little interest athGnsH
w used cash In large Transactions these, together
with their surplus 40 not form pas tpr m sae s, deG1 nT
dent 10 give their depositos II they held less OF snoh
time OF srlngency might not be readily available, but
which pay larger rate Of interest than the Govern
comparison of the financial statements OF two Of the
ean.s VIII ~ make I @ % Pqt No as s7 Baseksr
ST. the largest in the city while the Metropo
tan Savings Bank Nos. and Third ave, does much
smaller business. 1he first Of these. this year, as last
year, pays 3a per cents the latter pays this year ana
paid last year per cent The bank in Bleeekerst had
81 200 invested ia bonds and mortgages according
10 It's last annual report, and owed depo.itors
$50 go 003 H. while the Metropolitan had Slv6i 400
I'm bonds and mortgages and the amount due depostors
was 81 302 05. Thus the bank tha! PAID
90 per cent interest had about onefth OF Its deposits
Invested In securities not Immediately available ih ease
OF panic, but yielding 1t or per cent interest,
and bank that paid per cent had less than one
half deposits thus placed The rest OF the runds OF
institutions were for the most part Invested IN
serurites that were rst class yielded smaller re-
turn.
The officers of tho conservative savings banks repre-
sehtuc oss IB5 32-nore than fortytwo times as
much as Of the rest OF the savings banks
united In 1888 In opposing the Page BILL by when IL was
sought greatly to enlarge the list of securities
I'm which lawful for the banks % invest the savings
OF their million and Of depotors There Il strong
feeling against permitting Investment or these fands IN
auy securities the character o whch tae least DOUBT
or suspicion can attach aud is hoped that although
Institutions hold largo percentage OF their s-ts
uuiuyested further effort Will be made By the LeSs
laturc TO enlarge the scope OF Investments