St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-06

Preventing SenseIess Hoard
ing.
SO much money has been withdrawn
from the Farmers and Mechanics saw
ingS bank, by people who had no other
use for it than to hide it away i'll old
trunks and stockings, that the officers
of the institution have sent the follow
ing sensible circular letter TO each of
the depositorS:
To the depositors of the Farmers and
Mechanics Savings Bank OF Minneap-
! oils, Mimi: at meeting of the board
OF trustees of this bank, held this alter
ternoon, it was unanimously decided To
require depositors to give sixty days
| notice of intended Withdrawals, as au-
! thoriZed by the rules OF this bank.
n depoSitor may, how ever, draw S25
each month without giving notice.
This action has been taken after ma
ture consideration. and not until after
the savings banks in the East, with de-
posts exceeding S1,OOO 900, 600, had
taken a similar step.
1t has been done in the interest of ii
| the depositors in ORDER that the cash
now i'll hand might be paid, a little 10
each, instead of much to few.
The trustees had hoped that the un-
usual demands made upon the bank in
May would cease as soon as the deposit
| orS had time to consider the situation of
affairs generally. and to learn that their
money was alre ady in the safest place
to be found for it.
The confidence of the trustees in the
sound sehse of the banks depositors
WIS not misplaced, so far as the greater
numberwaS concerned.
The mechanics, the clerks, the en-
ployeS -meu and women who constitute
the great majority of The banks de-
positors, ana who own the bulk of its
depOStS-have continued to make de-
posts and Withdrawals in the usual
manner. These constitute the class for
which this bank was created, and that
the confidence they have shown in it
during all the years they have been
building it up has not been disturbed
during the past weeks, has been a
source or qualification to the trustees.
The faith shown in the bank Nv its
small depOsitOrS has not, however, been
shared by many of the lar ger ones.
illus the hope of the trustees that the
drain upon the banks cash would cease
has been rendered vain by the action of
number of well-to-dO and supposedly
intelligent people. These have been
foremost in showing distrust, and by
their continued Withdrawals have
Obliged the trustees 10 take advantage of
rule never before enforced by them,
ana which, except for sucn action. they
would not have been compelled to en-
th,A
alleled financial Stringency.
April 4, of this year, the deposits of
this bank reached high water mark,
So 951, 490.02; at the close of business to-
day there Was on deposit S6,025. 720.07.
July l, three months accrued interest,
amounting to SG6,0l3.SS, was added to
the deposits.
Thus in four months the deposits of
this bank have fallen eff nearly one
million dollars, 1892 6S3.T3.
A portion OF This large amount of
money was paid 10 depositors who re-
qulred it to meet their ordinary wants:
portion of it was paid to small de-
posltOrs made tinid by the foolish talk
of thoughtIess men; tile great portion of
lt.was paid tn large depoSitors to hoard.
10 meet the unusual demand upon the
! bank III May Its cash resources were
! strengthened by sale of bonds effected
at a sacrifice. Notwithstanding the I'M
warranted and foolish action of con-
siderable number of the larger deposit
orS, the trustees had expected to be able
TO realize upon the sale or pledge of
additional securities, and thus avoid the
dlSagreeahie necessity of taking adj
vantage of the siXty-day rule. 10 this
end the president and vice president of
the bank have visited the strongest
financial concerns IN the country and
have offered for sale--Or as security for
loanS-the choicest securities in the
vaults of the bank. Bonus of the CITY
OF Minneapolis and of Hennepin county
could not be sold except at disastrous
sacrifices. Mortgages upon the best
property in this city could not be sold
or pledged upon any terms.
In this condition of affairs, and with
payments daily exceeding receipts, but
one course to pursue remalned-to stop
making large payments, and to pay out
the cash i'll hand cautiously and con-
serYatively 10 those requiring it to meet
their daily wants.
This was only possible by taking ad-
vantage of the stay rule. With the
money now i'll hand, and with such ad-
| ditions as the trustees will be able to
make, they are confident that the bank
| can pay for an indefinite period enough
| money to each depOsitor 10 enable him
| to meet his necessary expenses. More
than this they will not be able to do
| until the present Stringency is at an end.
10 furnish money to meet the neceS-
| sites of the many small depoSitors-
| rather than cater to the fears of few
| large opeS-will be the aim of the trus-
! tees of this bank until general con-
| ttdence is restored and money has re-
| turned to its ordinary channels.
| The trustees of this bank wish to i'm
! press upon each depoSitor:
tirSt-That this bank is as worthy of
| your absolute confidence today as it
| ever has been III the past. Your money
| is invested in the bonds of cities, coun-
! ties and school districts in this great
! Northwest, and in mortgages upon i'm
proved inside property in this city.
| There can be no loss to such securities
| unless your actions shall compel their
slaughter. Jntrinsically they are as
| good as gold.
When anything will sell these Things
will sell, and when we can sell them at
price YOU would say was right they
will be sold to pay your deposits if you
want them paid.
Second That this bank is your prop
erty. We are merely the agents pro-
| vided by law to manage what belongs to
| you. Its future prosperity is In your
hands. 1t you will continue to have the
faith you have shown in the past-if
you will call for money only as you are
obliged to have tiff you will not give
notice OF intention TO withdraw deposits
at the end of sixty days, merely because
you can so do, but only iR~caSes of abso-
lutte necessity, you will assist in hasten
ing the time Wheh the bank can pay all
that it owes you, without notice, and we
will see to it that your confidence has
not been misplaced.
BY order of the Board of Trustees,
E. ii. MoULToN. Treasurer.
| Minneapolis. Aug. 3, 1885,
The bank held another meeting SUBJ
seQuent to the one at which the circular
was voted upon, and unanimously voted
to repay during the next six months.
without notice, any deposits made dur
ing the enforcement of the sixty-day
| rule.