The state herald., 1893-08-04
WALL STREET NEXT.
Seventeen New York savings Baaks
Decline to Pay,

Seventeen New York savings Baaks
Decline to Pay.
Tho publication Of the intended action Of
the savings banks and installations to put into
practice tho law emitting them 10 sixty days
notice from deposltors Of intended with.
drawals Of money precipitated q run on
tho morning Of tho Goth. Some of the banks
paid tho amounts 10 full and thus sought To
restore confidence Others required notice,
tho time ranging from ten TO ninety days, 10.
cording 70 the period specified In the by
laws
Tho meeting Of the presidents at the I'm
migrant Industrial Savings bank Friday At.
ternoon was called, said President Jane,
Mcmahon Of that bank to consider what
action would be advisable to relieve the
heavy drain that has been made since the
present financial depression commenced.
Each president was invited to give his ex.
perience since tho drain began and what, In
his opinion, should be done to stay It. They
all agreed that the withdrawal Of the deposits
was In much greater proportion than the
money coming In.
1--WE cannot do business" said one, with
$50, 900 being taken out daily and only &c.
600 being deposited"
1t was the eoncensus Of opinion that tho en-.
forcement Of the sixty-day clause would DO
the only relief. Tho executive committee Of
the associated banks have been consider
ing the situation OF the savings banks for
some time. The Withdrawals Of deposits have
not been in large sums, but 1t has
been steady drain throughout the
vnopth ~ y,ly Whit. th.ro h.. cot
been anything like . run, tho drain
has been constant and heavy, and the
cash holdings OF some OF the banks
were getting low. They found that 1t was
advisable to do something. They deemed II
better 10 counsel concerted rather than indl.
vidual action. They had choice between
the good and bad securities, which in the
present state Of the market meant sacrifice
or the taking advantage Of their lawful right
to require sixty days notice Of intended dc.
posit Withdrawals. This, then, was advised,
and they have sent out notice to banks
throughout the state.
Seventeen savings banks were represented
In yesterdays meetirS, representing $751;.
400, 900 and . surplus Of $457, SOS 900.
Chairman Of the committee, President
nuOhues, vi INC Olu uTcenWlcu uauk, salu
this afternoon:
sour decision Is not binding on any one,
and l have no doubt many will not avail them.
selves Of the action. But the stronger ones
will, and will do SO to introduce the policy.
Ny bank Is In IN excellent sound position,
but on Monday shall lead the way.
1--WE had the broad interests Of the whole
financial community In mind when We came
to our conclusion. II is said that the money
withdrawn from, the savings institutions went
to Wall street and elsewhere 10 investments.
No doubt small portion did go thither, but
It is absurd TO suppose that the people who
arc depositors In our banks buy many sccuri-
ties in Wall street.
"Thcy hoard, and the greater part Of our
cash losses was put In hiding and was Of no
use to any one. We have Of late been send.
ing TO the down town banks and trust compa.
nies every day or two for go, 900, s25 900 and
100000. This made our drain eventually a
drag on the whole money market Our &C.
tion, or rather our advised course, will thus
put stop In measure to one hole In the
commuuity's cash resources. II our plan Of
formal announcement had been followed
from the FIRST 1t would have caused no alarm
and no confusion"