Morning journal and courier., 1893-08-01

der. bookkeeper at the National, with
their deposits of 1896, 0OO, 900 and total
surplus of $4,000, 900, decided to avail
themselves of the law allowing due notice
to be filed before paying deposits, and the |
provision has been put into force. One of |
those banks has deposits of $43, 000, 900 and |
. surplus of 100000. When New York |
decided on such a measure, the New Haven |
banks had to follow suit.
TREASURER BROWN.
Treasurer R. A. Brown of the New Ha-
ven bank said sour Investments are the
best there are in the land, and we have
money enough on hand to pay
depositoIs for some time to come.
Last week We sold some of our &C.
curities to pay depositors, and 1t Is not
traction of the money market was not uni
versal all over the country, we could OBJ
tain what money we desired. We could
get plenty of currency from New York.
But all are now in the same boat. There
has been drawn from the New York city
banks $149, 600, 900 and sent all over the
country where there Is pressing demand
for money. Under the circumstances we
decided to avail ourselves of four months
notice before paying out any more money,
as our charter provides that we may.
This money is not ours; it is the deposit
ors', and we have done this thing for their
protection. If we could dispose of 81, 000,-
600 of our gilt edge securities in New York
to- day we could not get the currency for
them. For several days past the deposit
ors have been drawing out their money
and placing 1t in the drawers of the safe
deposit vaults. The result is that much
money is being taken from circulation and
1t is very harmful. AS matter of fair
ness to the other depositors, it is no mere
than right that we should require notice
before we pay out any more money. After
the four months notice the depositors who
| apply can get their money. This will
| allow us to get in our money from interest
and deposits and meet all demands. It
| would not do for US to put our securities
| on the market and force a sale. That
| would bankrupt the city.
WHAT HENRY D. WHITE SAYS.
| Henry D. White, one of the trustees of
the New Haven Savings bank, said:
| ssThe deposits in our bank for June
| were more than for the same month last
year. There is no run on the bank to- day,
as most of the people who have called
this morning came to deposit funds. pay
their interest or receive their interest.
Up to noon 17S depositors asked for
their money. They were told the situa-
ton of affairs and seemed satisfied. The
action of the banks in demanding notice
before paying depositors ia all right. 1t
| Is good sound business policy, for the
protection of the banks and of the depos-
itors."
ALL RIGHT-THE SCARE NoNsENsIcAL.
General s. E. Merwin, who is president
of the Yale National and New Haven Saw.
ings banks, said when asked for his opin.
ion about the depositors' scare at the New
Haven, Connecticut and National Savings
banks:
'sThis scare among few of the deposit
ors is the height of nonsense. In my opin
ion these three banks are three of the mos
solvent banking houses in the United
States. There is no ground whatever FOL
any fears and all this talk and uneasinesl
ia uncalled for"
THE ACTION OF THE SAVINGS BANKS.
Last evenings Bridgeport Standard re
marks as follows regarding such action al
has been taken by the New York bank
and by the New Haven banks: There arr
no frmer or more reliable institutions IL
the world than the savings banks of New
| York state, and the same may be said O.
those of New England. They are 81
| guarded and so regulated by law tina
failure Is practically impossible 80 long al
they are not robbed, or their depositors
: the people most interested in their pros
perity, do not precipitate ruin by theil
own action. To guard against this posi-
bi1tty the time rule on deposits has beer
J established and the savings banks of New
York city have recently adopted 1t. Thi
rule is to protect the public from the re
suit of needless panic by protecting tn
banks. Through the operation of the rul,
! time is given for the calling in of loans snt
the converting of securities, which coult
not be done were depositors allowed to cal
for their money all at once. The money
practically safe, and no one need fear t
rashly, through panic and in such way q
to be source of trouble which without
, might not exist. The movement of tn
New York savings banks, therefore, is il
the best interests of the depositors and ais
. in the best interests of the public, and i
not . sign of weakness, but of strength
:. and ought to help out the financial situa
i ton materially.
Should the rule be adopted by New Eng
land banks it would be for the same reaso
and to the same effect, and if the peOpl
, could properly understand and appreciate
| 1t, they would be treasured rather thal
, alarmed thereby.
Our New England savings banks are GU
pride as popular financial Institutions, an
they are carefully and wisely conducte
under laws framed to protect them an
their deposits, and if those laws extern
to the regulation of even the withdrawn
of money by depositors, that is also fo
, the greatest good of the greatest number
and to prevent the sudden precipitation c
trouble by those who are needlessly afraid