New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-21
SAYINGS RANKS lNHESTMENrS.

II has been evident for q number OF years
mast TINT some method must be devised Oh
widening the scope Of savings bank invest
men,s The rate of interest upon oil classes OF
securities in which the savings banks OF this
State are now allowed to invest their funds has
fonon 60 low that the rate which can be paid
70 depositors is steadily shrinking. Almost all
the savings banks OF this city have lowered
their rate of interest to 3l-2 per cent ana IL
is intimated that unless some measure OF reileI
be- adopted. the rate must be sali lurVner re-
duced. 1t hardly admits OF argument that u
would be a public calamity il the rate should
falI 50 low as to diminish the stimulus to de-
positors to exercise economy, and put their
accommodations in these places oil sate-keeplng'
II is unouestionably true that the first consid-
grafton In this matter should be that OF safety,
and that view was wisely advanced by Gov
ernor Cleveland when he vetoed dangerous
bill loosely extending the limits OF savings
hank investments. But it is equally certain
that the size OF the return which the depoStor
IL 10 receive upon his money does much to en-
courage thrift, and so has a potent influence
for good. II ought not to be impracticabe
70 keen both of these requirements in sight in
granting RfbdUF idNlbuuO w INV A"'N'N''''~
in placing tho moneys under their control
A bill which seems likely TO accomplish this
result has been introduced in the Assembly by
Mr.. Rhodes, of WestcheSter, and has been APP
proved not only by the Superintendent OF the
Banking Department but by the officers OF the
various savings banks throughout the state
with il is said, almost entire unanimtty As
the law now stands, investments Of their de-
posts are restricted TO the bonds OF the United
States. and the District Of Columbia three
sixty.fves, bonds Of States that have
not defaulted in the payment Of either interest
or principal of any debt within ten years bonds
Of any city, county, town or village, school
district bonds, and union free school district
bonds, issued for school purposes; bonds OF any
city or county Of this State, and bonds and
mortgages upon real estate. The new law pro
noses TO authorize the banks 10 invest in bonds
Of any incorporated city having more than
$4,000 inhabitants in any Of the New-England
States, in New-Jersey, Pennsylvania, Ohio, IL
linois, Wisconsin, Michigan, Missouri or Col
oIado, provided that its total indebtedness, in
Guiding the bonds in which investment Is made,
does not exceed per cent Of the valuation OF
taxable property, and provided that neither the
city nor the State in which the city is situated
has defaulted in either principal or interest OF
any obligation within ten years. No saving
bank Is to be permitted TO invest more than
one-fodrth OF it's assets in the bends OF cities
outside Of New-York State nor more than 2 IL
per cent in the bonds Of any one such city, nor
to buy more than per cent Of all the stocks
and bonds issued by any one such city, nor to
buy any bonds Of city outside Of New-York
State issued in aid Of railroad.
II will be seen that while there Is con-
siderable enlargement Of discretion here, 1t is
surrounded with many safeguards. Invest
ment is limited to cities Of considerable sizo
in certain specified States whose credit is OF the
very highest and to cities having debts that
are not excessive. No savings bank can buy
more than small proportion Of the obligations
issued by any one city, and the total of its in
veStments in this direction is kept within n
moderate amount These restrictions will en-
force wide, as we'll az careful. distribution OF
such investments. The banks will be COM
PEELED to put their eggs in number OF baskets.
The proposed law seems to provide every neces-
sary element Of safety, and will strengthen tho
savings banks by making it possible for them TO
pay depOsitors an attractive rate offnterest