The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-11-30

financial history of this country how
the New Hampshire savings banks
were looted by swindling westerners,
and how the sharp work of which the
banks had been victims was discOv-
cred in 1895 and 1896, at a cost to many
people which cannot be estimated In
dollars and cents. Now that the trou-
bic is fairly over, and there is no dan
ger Of a run on any Institution in the
state through fear OF other failures,
men Who have dreaded the advent Of
each day because they were afraid that
fresh news of disaster would come be-
fore nightfall, are willing to tell some
thing Of how the state, for the loss
eventually Will be felt by the common
wealth, came to be robbed By the
sharpers Of the west.
While many banks beside those above
mentioned have been in straits for the
no danger that those which have with
stood the shock to this late day viii be
forced to suspend.
lit has been felt for some months that
if the story of the New Hampshire
savings banks suspensions was print
ed. and the reasons for their failure
given, il would cause such a run on
the solvent institutions, and create SO
great a lack of confidence in them, that
many banks with securities worth dol
lar for dollar would be unable to stand
the strain in the hard times.
Happily, there is no such danger felt
now. and one OF the most prominent
financial men in the state told a repre-
sentative of the Boston Herald today
that he did not think there was a saw
ings institution doing business in the
state but would pay all its depOsitors
in full, and keep on paying them in
terest although a somewhat smaller
rate than has been in vogue. The %
suspended banks and savings institu-
tiOns, q list of which has been given,
had deposits aggregating S17. S66, 791. AS,
Is
that more than from 20 to 70 per cent
viii be paid
This. therefore. involves a loss of s4.
466 69T.S7 Besides this it means that
practically all this vast amount, S4, 44Q.
217s0. has been withheld from the de-
positors since the banks suspended, the
suspensions. of course. coming on diff
ferent dates. Some Of the banks have
had their injunctions modified, and in
some cases arrangements We're made
that small sums should be paid needy
depOsitors UP TO q certain per cent of
their deposits, but as whole, the
amounts in care of the banks haven't
been paid out.
For example, the Keene Guaranty
bank has been permitted to pay out
Is per cent. the Milford is per cent, the
Francestown no per cent, the Hinsdale
10 per cent and the keene Five Cents
Is per cent.
1t must not be understood that the
losses IN every case Will amount TO 81
per cent. This is by no means sure
For example it is estimated that the
Cheshire institution Of keene viii pay
almost dollar for dollar, and in a num-
Der of others about 80 per cent viii be
realized. But in others the loss viii
be much greater, notably the sullivan
Institution for Savings in Claremont.
where nearly all is gone, and ia which
town 50 much suffering exists at pres
emit
So. taking the whole state through, it
is probable that the amounts to be de-
Quoted from the depositors' accounts
viii reach an average Of from 25 TO 30
per cent. Therefore, The Herald's fig-
ures are based On a shrinkage Of the
smaller figure, % per cent. On this
basis the loss to New Hampshire de-
positors will amount to 81 1855 697.s7. and
this is not taking into account that the
money tied up in enjoined institutions
has not earned a dollar Of interest for
from six to eighteen months, not
small sum to lose by any means, when
figured in the aggregate on the total
amount of deposits in the unsound in
situations.