The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-08-08
BANKS AND BANKING.
saIr Lake Cftv. August 7. IS


To the Editor of The Herald:
I am obliged to ask little more
space to make clear my meaning in
my communication published in your
issue of this morning.
An old unabridged Websters die
tionary defines a savings bank as
"a bank in which the savings or earn
ings of the poor are deposited and put
to interest for their benefit" L will,
however, state my impression from
recollection, which is that the first in
stituLion founded in this country and
called savings bank was organized
az the suggestion OF, and with the
active cooperation of, Benjamin
Franklin at Philadelphia more than
one hundred years ago, and that it
was what you would call Mutual As
surance company. Names are largely
matter of custom and taste.
Personally I prefer the old-fash-
Toned name of savings bank"
as better describing the insti-
tuition, than your new one. Savings
banks with a guaranty capital, I
think, are a comparatively modern in
stttution. 1 much doubt whether, out
side of three or four OF our largest
United States prior to 1910. In New
Hampshire IN 1875, out of some thirty
institutions called savings banks, one
chartered, 1 think, in 1872 was of this
character. At that time, and 1 think
now, nearly all of the New England
(so-called) savings banks were mu-
tual Institutions
stated that the reason the San
Francisco bank could pay its depositors
gold ba IL
were all payable in gold. If they owe
their depositors $1,000 900 payable in
gold and have S1,100, 900 or 81 200. 600
good gold notes, they will collect that
amount of gold or its equivalent and
can pay their depositors in gold
But how would it be with what YOU
would call the only real savings bank
IN New Hampshire in 1875? The last
l knew of this bank it had 81. 900 900
deposits. 100000 guaranty capitaI and
about $4,000 in undivided profits-s1
10000 assets. A few years ago the
treasurer wrote me that over 20 Der
cent of its assets were on western
farm mortgages in Iowa, Nebraska and
Minnesota mostly. I am very sure
THAT not dollar of this was paya bile
IN anything else but United States
legal tender money, whatever that
might be; nor have 1 any reason to
were
payable in anything else. OF what
use for them to announce that they
Would pay depositors in gold? If we
nave free coinage and the silver dolIs r
keeps at parity with gold-as some
at least, of the silver men beHeve-vrho,
cares whether they pay in gold on.
silver! II, as the gold men claim. in
tne event of free coinage gold
gees up TO 90. go, 20. or 90 per cent.
VI WIss~ use 10 make such AN announce.
ment! Every Intelligent denosifo,
would know they could not keep t6eil
agreement They have 10 make a pa1b
lie showing of their assets AT least orc.
a year. --@--'' oi'''
line Families owing the million to the
San francisco bank have got to nav
IN gold as long as they are good. ever
III gold is ait 200 The New Hamp.
SHIRE bank can only collect S, $50. OOt
lay silver or whatever else is
current money from it's assets
If gold should be above liz
bow could they pay their deposstors
even II the sfnylocks who own the guar
anfy stock and surplus should gener
DUSTY give the whole assets to the de
posftors? If gold should go tc
200 there would only be s575. oOC
In gold TO pay s1,000OOO deposits
However. from my knowledge of tn.
StOOhi!OultTSy WHICH Is very Su2OI-. ant
my opinion probably of little value,
believe that the Stockholders would b.
selfish enough, in case Of a rise in gold
to say any money with the stamp o
the government is good enough to pa,
to our deDosihors and we will keep on
stock and as much of our surplus as w
cam and pay them such money as gov
ernmept says is good enough 20 pa,
us. You say that the fact that tn
San Francisco bank promises 10 pay il
gold shows Chat that institution ma
faith in its ability to pay in gold, wtlicl
faith is founded upon its belief that n.
such conditions rs c. sets forth woul'
arise as the result of the free coinag
of silver" I have no doubt the officer
of the San Francisco bank, if they ar
honest, have faith in their ability t
pay in gold, but I should give differ
ent reason from yours for their faith
which is that they probably have gol
notes enough tflat they consider good
from which to pay off adj tEneir deposit
ors in gued You ask why it would b
any more difficult for the banks to ge
gold when ait 100 to pay deposttoTS
than for the makers of gold notes.
That is a conundrum not germane t
any point raised by me, but there ar
two answers chat might be made 20 u
In the first place, the fact, II IL IS