Morning journal and courier., 1893-08-01
BUT LITTLE EXCITEMENT


panic expressed fear and uneasi-
ness, but the depositors with the largest
sums in the banks were the least con-
cerned. That there is not the slight
est occasion for alarm Is mani
fest. The - banks are all as
sound as nut, and can pay
dollar for dollar, and have fine surplus
left after doing so. The reasons for the
action of the banks are we'll set forth be-
low in the remarks made by Governor
Morris, Hoadley B. Ives, R. A: Brown,
Treasurer Morse, NJ. Zunder and others.
When the placsrds announcing that notice
must be given were posted up in the banks
yesterday morning the news soon spread
among depositors, but occasioned little ex-
element, as the general feeling In the city
among the people is that the banks are all
right and that the trouble is the tightness
of money and the difficulty of quick real
isation of assets and of getting fair returns
for the same in the present state of the
money market.
THE MEETING OF THE BANKERS.
The vote adopted at the meeting of the
bank men Saturday evening is as follows:
At meeting of the officers of all the savings
OF July, 1885, pursuant to direction of the boards
Of trustees Of said banks, it was unanimously
voted: That the banks will, until further notice,
avail themselves of the provisions in their char.
tors to require notice from depositors intending
to withdraw their deposits.
New Haven savings bank-Samuel E. Merwin,
president; Robert A. Brown treasurer.
Connecticut savings bank.Luzon B. MorrIs,pr
ident; Elliott H. Morse, treasurer.
National savings bank-Maier Zuuder, president;
Hoadley B. Ives, treasurer.
AT THE BANKS.
Only small number applied at the
National Savings bank for their money
yesterday. About 200 gave notice at the
Connecticut bank and about $50 at the
New Haven Savings bank. Those apply
ing were mostly depositors having but lit
tie Gums on deposit. By the time the
notices mature it is likely thsy will be re-
voked.
As is well understood big part of the
assets of the banks consist of mortgages
on real estate worth great deal more than
the loans. As Governor Morris said, the
banks can't realize on these loans in ten
minutes nor ten days. In fact, 1t takes
months to 60 through the process of fore
closure. To foreclose these mortgages
would be In most cases cruel and unjust
and cause untold misery and ruin, w1pine
out the savings of life time. The rest Of
the banks assets consist Of good securities
gild-edged, but which in these times can
not be realized upon without serious sacri
fee, money being so tight.
No serious excitement Is, however, an
ticipated, as the precautionary measur,
taken by the banks commends itself to al
thinking people.
Another fact is that all three of the bank
~AG {o1~ L,
the states bank commissioners and all wer,
found In first class condition.
Said depositor in all three of the saw
ings banks last night: am right glad tn.
banks have done as they have. It secure.
me my money and that of all other depo
sitors. If they had not done 80 they wonlc
have been lacking. They would have beer
highly censurable in not providing 30 thai
the depositors' money would be secure anG
not jeopardIzed by senseless runs on tn,
banks which would have imperilled them
Now everybody can rest easy, sure that tn
deposits are all right.
GOVERNOR NORRIS ON THE SUBJECT. -
Governor Morris, president of the Con
necticut Savings bank, ssid 'These thre
banks are good beyond all question, bu
the action of the New York savings banks
requiring notice from depositors, practical
ly forced the same action on these banks
Deposits being drawn largely by deposit
ors, necessitates procuring currency to pa.
these depositors, and however good tn
assets of the bank are, 1t is almost impos
sibls to sell the securities and realize cur
law requires savings banks to loan at leas
one half of their deposits on frat mortgage
security on real estate. Now If q banl
undertakes to realize on those securities
only the people can't pay, that is all. Th
people can't at once meet such demands
The result would be foreclosures that woult
produce very great distress.
"We don't want to deceive the people
| In my judgment there Is not saving
| bank in Connecticut that is not In sol
vent condition. The bank examiners o
the state have been here quite recent
| ly and found everything satisfactory, q
least there has been no notice to the con
trary."
| The governor referred to the panic o
| 1878 period that included s'Black Friday.
He said: 1--WE haven't required the motto
to depositors before since the panic of 1879
At that time we required notice and, tn
result was we received large number O
notices to withdraw at the expiration o
three months. After about a week tn
depositors ceased to give notices. and a
tho expiration of the three months ther
were practically no Withdrawals of tn
principal.
TREASURER MORSE.
Treasurer Morse of the Connection
bank said: 1--WE number among our boz
rowers the very best and most thrifty me,
in New Haven. It would be wicked-yes
a crime-to come down on them at ono
and say to them, you must meet your oh
legation to the bank Immediately Tina
would be very unjust. They will pay thei
loans, every cent of them. But 1t Is onl,
fair on the part of the bank to give then
reasonable time to do 80. Suppose W
went into the market now with our yer,
best securities; we would have to dispos
of them very likely at loss. That woul,
mean loss to the bank and to the depos
itor."
Gin my Judgment" added Mr.. Morse
''this is only short-Hved scare and In
| week will have blown over. Cooler judg
| ment will come to the foreground. TAX
the men who are the head of these banks
There is Governor Morris. president of tn
Connecticut bank, a careful and as keen
fnancier as there is in the state. The,
take Mr.. Ives of the National Saving
bank, one of the shrewdest banking men t,
be found, person who is always on tn
alert against anything of speculativ
character. Then there is Mr.. Brown ant
the other officers of the Orange street bsnl
who are men thoroughly versed in finance
and who are known to be thoroughly eau
tious and conservative men,"
WHAT HoADLEY B. IVES SAID.
Hoadley B. Ives, treasurer of the Ma
tional Savings bank, said:
1.-THE representatives from our three New
Haven savings banks, the New Haven, tn,
Connecticut and the National, held meet
ing Saturday evening to consider the stu
alton. There were present Governor Nor
| ris, General 8. E. Merwin, Wilbur f. Day
Maier Zunder, myself and several others
The meeting was held owing to the actiol
of the New York savings banks, who hav
voted to fall back upon their privilege o
requiring notice from depositors befor
paying out funds. On account of this &C
ton in New York we could not do an
different as matter of protection than t
fall back on ninety days notice, such .
our charters give us the privilege. Afte
the matter was talked over, it was de
oided to require q notice of ninety day
from depositors before paying out fund
on demand.
| "Agrseably to the action of this meet
| ing, each of the banks held q meetin
before bank hours this morning and vote
| to confirm the action of the meeting. s
depositors will be compelled to give tn
ninety days notice If they wish to dray
cut their money. It was Q proper thin
| for the banks to do to prevent any rul
| that might be made. But the banks AZ