The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-05-21
1rs DISHONEST, SAYS RHoADEs.
ne scores the Rushing Into Debt OF Towns
About 70 ne Annexed.

Tho fourth annual meeting Of tho Savings
Banks Association Of the State Of New York.
held in the rooms Of the Chamber OF
yesterday, applauded President J. Harsen
Rhoades when he said to tho 200 delegates
present:
~ feel that 1 can congratulate you. and
through you tho depositors In the banks, that
the country has for the time being escaped the
peril Of reputation and the losses that repudia-
ton would bring to the working classes In this
State and throughout the entire country. Never
since savings banks we're established, and, in
deed. since the republic was founded. have such
grave disasters been threatened to the material
industries of tho country as were threatened In
the year which has just closed"
Mr.. Rhoades spoke at length in regard TO the
relief that was generally felt becauseof the re-
suit of the election. Then he touched upon the
proposal for a postal savings bank system and
remarked that although he and other savings
hank officers were not opposed to any system
that would lead to an increase Of thrift on the
part Of the people he would like to see an answer
to the question: what will tho Government
do with and how will 1t invest and keep safely
invested the millions Of dollars which must como
into its hands through q postal savings bank
law T. Mr.. Rhoadcs also called attention, in con-
nection with the fact that the savings banks were
carrying over 80 per cent. Of the entire NUM-
cipal debts of the State, to 1.-The rush by the
smaller villages and towns about 10 be absorbed
in the Greater New York to create new and
large Indebtedness In amount. sufficient to ruin
them rs they now exist, in order that public i'm
provements far beyond the existing needs OF a
small population can DO carried out and the
debt assumed by the city into which they are to
be merged"
| taken in the hope and expectation OF reaping
large profits in selling them to the savings
banks, under tho delusion that such bonds will
be assumed by the Greater New York under Its
new charter. II such acts as these are not
| morally dishonest, they tread closely upon the
heels OF dishonesty, and 1t is a marvel to my
mind how the authorities of these cities viii
eyes without an injunction restraining such
acts. They certainly will, be neglectful Of their
duty to the public and the taxpayers II the le-
gality Of tho volume Of the debt SO created is
not tested by the higher courts before, being as
sumed in the general equalization OF debt.
The report OF the executive committee, which
was read by Samuel r.. Rainey. referred to the
work of the association In defeating proposed
legislation at Albany etriment to the inter
ests Of the savings banks and their .depositors.
and dealt with the general work Of the associa-
| tion and the condition Of the banks.
All the old general officers OF the association
were reelected. After a recess for luncheon. ad-
dresses were made by Edward Atkinson on "One
| Function of the Savings Bank: Its Importance as
a Lender or Distributor of Capital and by for
mer Comptroller of the Currency, William /.
Trenholm. on Tho Savings Bank as q Public
School of Primary Economic Instruction"