New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-30


tic dcpesi,ors as dividends. The character oil
the Investments is also rigi lily restricted by law
| these characteristics dfferentiate the New-fork
saving. banks from most, il not all, OF the west
ern institutions. There the savings DahKs a'e
corporations and the profits 90 TO the siiaie
holders There is also wide latitude OF invest
mcnt
In New-Yorl< City there twenty-five saw
! ings banks and on January ! last they iad on
deposit s34n, 4OG,GS0, placed there by Slo,@so
dcpositors In Kings County there are fourteen
savings banks. which, on the same date. had
! Sl05. ?31 in the names of 21OO32 depo'itors.
Edward Baker. president of the BOwery Savings
Bank, when seen in the hank yesterday morning,
said We have not enforced the sixty days RUE
1t is "A good rule in case of a panic but not
| otherwise. No action will be taken by this bank
until the trustees have considered the question.
! The officers of the bank will wait for meeting
of the board Of trustees, which will be held early
in the week The trustees will probably take
such action as may be necessary TO empower the
officers in case Of trouble 10 act at once We did
an extra heavy business this morning, but our
depositors were not at all alarmed. The savings
banks experiencing great need Of bills of
small denominations
ALL DEpoSITORS on AN EQUAL FOOTING.
for the Savings of Merchants Clerks, No. 30
Union Square, said: The Board of Trustees
have not met yet, but if we think it necessary
meeting will probably be called for Monday.
We have given notice to our depOsitOrs. and
we will keep in our usual way until the
trustees take action / consider the action Il
good one beneficial both to the savings banks
and the dcpositors 1t will put all the dcpositors
on the same footing. do not think this action
will hay effect
telligent depostors will understand it, Our
Withdrawals of deposits have been only slightly
larger than usual at this time Of the year
Confidence will be readily restored when deposit
ors that they can easily obtain their money
| look upon all the savings banks in this stare
as sound and capable Of paving all they owe ana
having a surplus left. These institutions are
so hedged about by law and their invcStments
are of such a character that it is difficult Tor
depOsitors 10 be injured. The chief purpos" OF
the sXty-day noticc would he TO stop the inn,"-
date withdrawal of the whole amount on de-
post. ! consider it n wise action. ana douo'icss
all the banks will take advantage OF It,
THE TIME CLAUSE ENFORCED.
Colonel Spraguc. president Of the Union Dime
Savings Bank, said There was large increase
in the Withdrawals of deposits from this bank to-
day We are paying 800 on account, and have
availed ourselves of the siXty-day clause IN our
charter The women depositors seem T. b. |Sa
frightened than the men, 1t was rcmarkaoIe,
however, that II per cent Of the money wlthdraWn
immediately fcdepOSlrtl dlWI NV pl"Pi' %"
that we had plenty of cash on hand to pay.
large amount of the money paid ont was Ill gold
DEPosITORs WELL PROTECTED
The provisions of the Banking law protect de-
postors in savings institutions at every step
Bcfore n savings bank can BEGIN business the
Superintendent of the Banking Department must
be satisfied rs TO whether the responsibility ana
character of the organizers are such as 10 com
mand the confidence Of the place in when the
y ol1 -ltnfl nr
savings bank is to be located also as To WILL
the opening of bank, in the place proposed,
will be pl~,iic benefit. Thirteen corpoiators are
necessary. of whom certain number must reside III
the county where the bank l. I! br opcred. ana me
thirteen are subject to the obligations ami dui''
imposed by law on trustees of an express trlsi
No savings bank can receive deposits un.m "
has sent 10 the Banking Department IN" nam.
residence and address of each o. It's ofic"rs IL
is provided that
No trustee Of any such corporation shall h'v" any
interest Indirect, in the gains or profits thereof
nor as such directly indirectly. receive any paw or
cnoluncnt for services hereinafter provided
and no trustee officer Of such corporation shall
directly or indirectly for himself. an AGENT or partner
OF others borrow any funds deposits or In any
manner the except - make such current ana
necessary nvmcnts as authorized by The B'afl Of
Trustees shall trustee officer o. any such cor
poratloa become indorcr or surety or ''c"h" III any
manner an obrer for moneys loaned by or borrowed Of
such corporation.
A trustee who violates this provision, or who
becomes connected with any other savings bank,
forfets his position ipso fact" trustees VINO ac'
As officers or members of the commute" I"
examine vouchers and assets NAV re- Give "A com
pensation whose amount is fixed 10y the majority
of the other members OF the Board
HOW THE MONEY NAY BE INVESTED.
Tn this time Of general deprcciations, the safe |
guards "a 90 the securities in which deposits may
he lawfully invested are specially interesting. |
Those securities are Of six classes a. Government
and District of Columbia Understanding obliga- |
lions, j. O.. bonds notes. e. Understanding 3D.
LEGATIONS of this State: 90 intcrcst-bcaring obi
cations of any State of the Union which has not
dcfaultcd in payment OF principal or interest
within ten years; a. city. town, country, village
and school bonds issued pursuant TO hw in this
State: 20 first mortgages on real estate situated
in this State worth twice the amount loaned
thereon not more than 60 per cent Of all the |
deposits can he loaned in this way. and only 40
per cent its actual value may he loaned on I'M |
improved property: t6j real property necessary |
for the transaction of banking business. ana
such az is purchased AT sales Oh foreclosure or
mortgages owned in the bank.
Tie trustees are prohibited from loaning the |
moneys deposited with them, or any part thereof,
upon notes bills of exchange, drafts, or any other
personal securities whatever" Dealing or trad |
ing in real property otherwise than az mas 17h
indicated, or in .iy goods, wares h'err,idhuec'
or commodities Whatever, buying or selling "N- |
change or gold silver. or collecting promlSsory
notes on time bills or making or issuing any Ger
tiicates of deposit payable either on demand or
at fixed day are also prohibited
CASH ASSETS LIMITED IN AMOUNT
For the purpose Of meeting current expenses, 10
pcr cent Of the amount of the deposits may be
kent in State or National bank or trust com
pany but this amount must not exceed onc-1uarter
Of the capital stock Of such depository. The
current daily of receipts over expenses may
be deposited with bank or trust company until
II can he judcioIsly invested In the classes
Of securities already enumerated. Violation OF
the spirit and intent OF this provision is ground
for - proceedings by the Acknowledgement" Debts
due savings banks under this provision from banks
and trust companies are preferred claims in case
Of insolvency.