The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-28
OUR SAFE SAVINGS BANKS.
SUPT. KILBURN's REPORT Il ES A
SPLENDID SHOWING.

mo IMPOSES the hOstnt savings hank scheme
Tho Gains I'm Deposits aud Dspositors
for the Year 1s~0s-Criticlsm or Associn.
tions Formed to Lend Money 20 the Poor.
: ALBANY, Feb. 27.-The postal savings scheme,
according to Superintendent Frederick d. Kill
burn Of the State Banking Department.. in his
annual report to be submitted to the Legislature
tomorrow night, lacks two essential require.
ments. He says that the plan would fail to
provide an entirely safe investment Of de-
posits, and that a guarantee against the danger
In trusting SO delicate a business to public Off
cials inexperienced in banking and subject to so
frequent changes would be inadequate. These
objections, which appear to Superintendent
Kilburn insuperable, render the plan impracti-
cable in his opinion.
The savings banks of New York carry over
S100,0oo,0 900 Of United States bonds, or nearly
an eighth of the entire public debt. and they arc
the property of savings banks depositors. This
fact tends to impress upon each depositor, says
tho superintendent. that no is u constituents
factor in the State, that to be q capitalist is not
necessarily criminal, that public debts are an
obligation to be as sacredly met as the under
takinRs Of a private contract. and that tho
comparatively poor, even moro than the ex-
c~essively rich, need that the monetary stand
ard of the country shall be equal to the best
in the world"
AAS MI bdlh Al PIObpcTlIl ~ Lu6
State banks Of deposit and discount last year
was shared in and in some instances exceeded
by the savings banks, trust companies, and
safo deposit companies, "a fact satisfying both
Of Itself and because of what It signifies, since
tho balance sheets Of financial institutions al
ways reflect with sensitive accuracy the general
business condition of their localities"
There are 131 savings banks in the State, and
not one failed last year. Only one institution
shows 4 condition indicating a probably hope.
less struggle for existence. That trouble In
this bank was o,casioned by losses sustained
through the failure of a national bank which
held more than q third of its deposits. The
total amount due depositors in savings banks
on last Jan. 1 was $766, 6s4, ole. a gain during
the year OF $4s. sos, O27 or 800, oS5, 673 more than
was gained during the previous year. At
that time the aggregate resources of these In
situations were $3.50, 751. 244, the total surplus
fund SlO2, 426. 1872, and the number of open
accounts 1905, $50, representing gains since
Jan. !, 1897. of S57,577. GIL in resources. of
$s,772.924 in surplus, and Of 1912 in tho num-
Der OF accounts. Comparing further, the gain
in resources was almost exactly twice as great
in 1897 as in 1896. in surplus considerably
moro than threefold. and IN open accounts
moro than 80 per cent. The average amount of
each account Is $424.71.
Tho number Of open accounts represents
27A per cent. of the entire population Of the
State, though some dcpositors have accounts In
more than one bank. II there be deducted from
the population Of all the sixty counties of the |
State that of the twenty.nine counties which |
contain no savings bank, and from which few
deposits are made, 1t Is shown that Of the peo-
pie of the communities where such institu-
lions are established almost exactly one in
three Is a depositor in a savings bank.
There are twenty safe deposit companies In |
Janized and one went out Of existence. On Jan. !
/ the total resources Of these companies were
O37. At tho same date these companies had
$472,690 In excess Of assets over liabilities.
Five new trust companies were organized last
now forty. Taken in Connection with he otber
financial institutions organized last year. the |
recent years, ".and is impressive evidence, first. |
of increasing business confidence and activity
vestigation establishes the laws OF New York
which govern moneyed corporations"
pa "A ts1 fE last OF Het the a reD9r,s Of the ni,s trust ,ss com:
ports for the preceding. year. shows q gain Of
sssrenty Z; ven millions In the deposits feid BY
divided, profits and of four millions and a quar-.
ter in their surplus "a half million of the latter
year., while their total resources had Increased
nearly eighty,siy millions. The amount of divi.
on a capital OF 1913, 900. 900 was 81, 1854, 55s.'
Forty;seven associations have been organized
unucr chapter go or the Laws OF 1895 to loan
money upon personal property. The effect Of
the statute authorizing these associations is to
pnwpbroking powers and also 10 legaiize
contain a city having a population of more than
1Somsc.r This rIss.i,aaw was passed At the request OF
g avail themselves Of f the BBeoeifiH sn Of 0 aoin9 bnsIy.
%oSld in nos be t sssas% Of R pTiIEn a Tie@ 81 so Which
more than the legal rate OF interest ON money
Ioaned., The effect OF its operation is surprising.
n N tnlk subject fhp rnnnrt EauG.
From the annual reports filed in this DEPART.
mont select hye from which to quote items
the operations OF these associations.
First-Capltalize at 800. 900; received by the cor.
!SassssI J,hG q, year sSr from To- interes, and. discount.
1ilng s1penses, 81. 677lf4; salary Of President s snG
second-The highest rate per cent. on any loan
made Is reported at 10 per cent. per month aud the
Third1capital paid in. sii5t,Sio; received tiG by III.
,oant chS1ses a1 q. 4ss sas y snd f fpp% ar Interest sn apS 4 dc,
esefasl asa e snS%ssa'iS snS q PPs0 gS pledged, sb;ti2
" as for salaries, the President receiving s7'oOc Der
count ehaSsts. s7,sts55aa; f for dra ,%tsse'. ana and nI dls;
eIsm,nst'Sn q property ety pledged, s4.lTO;
lent. So, 300 per year.
cunt charges. si6. ao7.bS; for draWSinRR ' snd n ahd dis.
,eess ann sssmins.ion % properly pledged. s5,ysf.6s;
", 600. '"efreS'uen''
THE statute authorizing these organizations
,onfers upon me no supervisory powers over
hem except In the cent OF their accommodating
surplus amounting TO 30 per cent. OF their can.
tai, n condition which the figures quoted do napt
Indicate will ever. DO permitted 10 occur as long
Is officers can DO found who are willing TO dIaW
The showing Is commended IN The
legislature for such influence upon It's action
" the facis may be thought 10 Justify which, /
rust, win not be an extension OF tho nnnlica.
ION OF the law to any additional counties
NO class OF institutions under the suporyis.
on OF this department makes any where ncar the
OF profits that Is shown by these