New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-30
THEIR COURSE APPROVED.
WISE AND TIMELY ACTION.
SAVINGS BANK PRESIDENTS COMMENDED
ON ALL SIDES
FEW DEPOSITORS GET FRIGHTENED

WITHDRAWALS AT SOME OF THE BANKS HEAv.
Ter THAN USUAL, But NOTHING APPROACH.
ING A RUN sTARTED-wALL STREET
FIRST CRIuCIsES AND THEN
PR,IsEs-wHY The RECON-
MENDATIoN WAS MADE
TRUSTEES NAY ACT
TOMORROW.
The action OF the savings bank presidents OF
this City and Brooklyn in recommending thst
their institutions take advantage of the time
notice ella :, regarding the withdrawal of do
posts was The absorbing topic yesterday In Wall
street and among bankers. Such action was en-
tirely unexpected, and the suddenness of tho
news undoubtedly gave a shock to the financial
community. At first there was disposition mani.
tested TO critcisc the presidents severely The
action was denounced Us unwise and fear was
expressed that the result would be to shatter what
lir5l. confidence there was left
When the subject came to be discussed moro
fully, however, decided change of sentiment
b came apparent. 1t had been feared that the
publication of the news would scare the moro
nervous dcpositors into making a demand for
their money before the rule would be put into
chcct. As the day wore on and no nows Of any
runs received the critics began to wonder
=
Judgment They saw that the depositors had not
taken fright, which was the danger most to b
feared, and it WAS not long before a general ~
vulsion of feeling set In.
WISE AND TIMELY ACTION.
Outsiders. who had not studied the savings-bank
situation carefully, began to take calmer view
of the matter and to inquire more particularly
into the motives that had prompted the recon-
/ me datio
the men intimately associated with the manage.
ment Of the savings institutions, and found
that they were grounded on reason. The result
wls that those who had come to criticise re-
maiped 10 praise. On sober second thought their
verdict that the savings bank presidents had
acted wisely and for the best interests Of AL
! concerned AS one National bank official ex-
pressed it:
Il am q trustee in one OF the savings banks, ana
when | heard what was proposed l objected
strongly ard sent word to the president that
the thing should not be done. They went aheeo
and did it, and to-day am satisfied that they
were right and | WAS wrong. NO pao results
have followed in the shape of runs, and l can
see that with that danger eliminated the In
creased stability that will follow will undcuot.
cdly be welcome relief to the situation ana
of particular benefit TO the deposltors
WHY THE RECOMMENDAIlON WAo "i~DH'
What the argument was which caused tns
change Of feeling and brought to the mines -
those who at first were sccptical the convictaon
that the savings bank presidents had acseo
wisely. is embodied in the following statemen'
by j. Harsen Rhoades president Of the treen-
wich Savings Bank, who presided az fFi"aS
! meeting: s,.;..
In order to give an opportunity 10 ao,i'
the banks throughout the State OF tne ","v.
taken at the meeting of savings bank omcers ne,u
Yesterday, il was thought best that the resui'
of their delibera tions should not be gwen 10 'ne
pubIic before Monday morning. but as t'e aAin
facts have be. ONE known and puonsheo 20
perhaps better that the entire story pe no" 'o,u'
The Executive Committee, representing ''e
s.,;ncs hanks after consultation with each other,
decided that the time had arrived when '"oy
needed the advice and cooperation of the ohicers
Of OTHER leading banks in this city ana DrooANa'
and a number of these were invited 10 mee' VIVA
,ho committee The banks represented at TINS
,.c,in, have on deposit over 1857 100000 and
an .ctual surplus over all liabilities OF Sos,ooo'-
ono Among them were those wh2h constitute
! In. largest in deposits, in surplus revenue anu
/ inherent strength of any within the state Hi'e'
careful comparison of business ana thorough eN
L.rco or view, il was found that, while no panic
nm ,he mart Of depositors had developed IN any
dr.ction there was nevertheless, steady WIN
drawal of moneys, which was rapioy oepieu.s
,b. cash resources of the banks throughout inc
state and making it evident that sales of secur-
! tiles must soon follow
BAD EFFECT OF SELLING SECURITIES
"Th.s, securities consist OF loans upon real e.
tato. United States Government bonds S,a'e
bands and bonds of cities, towns, couhties shu
Villages within this State. All Of these secu1t'es
are recognized as the most secure ana safe II"
thcir character of any class of INVESTMENT Sc
curtics: but il must he borne In nina that ~
far a. State and municipal securities are .on'
! c,rncd the only purchasers in the market our
inc a period of depression, except az serious no
cline in price. are the savings banks thei"Sei' 90
and they being out of the market any at'emP' W
force sales in quantity must result In serious "o
clire in nricc and this condition of affairs ap-
niles with almost equal force TO the seA'ns =.
l;oycrnment bonds affecting alike the crea'' "
the banks aa well as the municipalities
I'd in such sales. ...
.,ro call in psst due loans upon reai e0'a~
orld only fond 10 dcmoraze the marNec ~.
rcal property and add greatly to the uis,res' .a-
ds,rust already existing while 10 "i""'"" W
morcvs doposited with banks and trust co"panio'
would tend to further pressure upon .'e ".'.
.~I.,. and add 70 the difficulty in realizing upon
thc securities necessary to be soio ""i,e 'n
nostion Of many banks located az po'h'' "''a' ,sn
from active money centres rendered IL very I'M
cult if not impossible, for them 10 spee'"s r
| ,hon.eIves and 10 continue In posi'io" '"o' .
D', .,,o ,bon 70 meet constant and STEADY
"'"'' ,ho;r r,sources The law properly ana
',o,r comnels the savings banks to invest ana
VS. vs. ;,y.s,od 90 per cent Of their deposits, 90
-. Aha hanks could not, il they would, retain
~ .,.d q. sum sufficient TO meet at all times
s,ddon and constant demands for payments Tho
.ai,, of currency arises not from short supply
3, .xistence. for the amount is superabundant,
n,. ,,om the necessity the part Of financial