New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-12-31
.SA WINGS BANKS BIG YEAR.
PRESIDENT RHOADES OF THE GREEN
WICH TALKS OF THE CONDITIONS
OPPOSED TO POSTAL
BANKING SYSTEM

q
highly prosperous during 1892 said President
John Harsen Rhoades Of the Greenwich Savings
Bank, at Sixteenth-st. IN Slxth-ave. to a Tribune
reporter yesterday after loon, and the large in
crease In deposits this year is a sure indication
Of the improved financial condition OF people
who keep their savings in banks. There times
when an increase in deposits does not necessarily
mean general prosperity Such time at
the end Of prosperous period, when the business
pendulum swings backward Then hundreds and
thousands of cautious people. feeling that there
are breakers ahead. withdraw their money from
investments, and put IL into the savings banks
they know financially trustworthy. In that
way 1t OCCURS and over again. just before
hard times period sets in. that the gain in de-
posts at savings banks will be surprisingly large
but. as said before It would indicate general
prosperity
There Is no question about the general pros
perity OF the last year however Nothing
clearly indicates II than the increase in depositors
with this institution. one year ago had 7o.s2l
depostors on our books During the year added
SS9. making total OF 1910 depositors. with
grand total OF over s8s 10000 to their credit.
against S35 $4,000 year ago We have the middle
class here-the shoppers and shopkeepers of the
West Side-and perhaps the growth OF our business
FOR the year is not clearly indication OF
the prosperity Of the laborng people OF the city
figures which could be furnished by the Dry Dock
Savings Bank. for instance. whose patrons are
perhaps less we-todo. But the figures are gen
eral Rough In their character to indicate that the
thrifty people OF New-York have practical reason
for eel bratng the happy New Year. We find in
this part OF the city that there Is large growth
among women depositors. The middle classes as
sometimes call them. are getting into the habit
OF making the wife the mother the financial
manager OF the home. The women come here with
their little accounts. and It makes wonderful DIFF
ference in the dignity of woman whether she
has little money the bank for which she holds
herself responsible as manager of the home. We
note that when a woman once begins TO have
bank account matter how small, she usually
keeps II up. and II usually grows.
FREQUENT WITHDRAWALS.
zone of the curious phases of the savings bank
business is the constant and heavy Withdrawals.
These amount 20 s7,500.o00 year with this bank,
and no doubt the same general statement can be
applied other savings banks OF this city. In this
way more than one-ffth Of the total deposits Is
withdrawn and kept constantly in clrcua ton.
THE best the majority of savings banks can do
in the way OF interest earning is 3l3 per cent for
their depositors There banks which pay more
than this but II Is owing to some unusual cond-
tions which favor their earning capacity The Will
amsburg Savings Bank for instance. pays per
cent, but II Is be they loan their money In
such small sums mortgages that Il is hardly
worth the while Of banks not doing business in
! Williamsburg to compete for the business. There
are thousands OF frame buildings erected each year
| I'm the German section OF Brooklyn. and the mort
! gags on these pay larger rate OF interest than
| il possible to get where the money il loaned out
! in l3rge sums"
"A good many people OF the notion that the
! IDEAL system Of banking. for the poor people, at
last is for the Government to establish the postal
! savings bank system" suggested the reporter.
THAT is an entirely mistaken Idea" said Mr..
! khoades 'The postal savings bank system is not
suited to this country. one Of the principal reasons
why It is not is that the postmasters are likely to
be changed every four years and outside the large
| cities the postmasters are not a rule familiar
enough with banking methods to give the people In
the communities where they live confidence In their
ability to handle their money. second reason why
the postal savings scheme is not suited to this
country is that It would send such volume OF
money to one spot that 1t would prove constant
temptation to Congressman and Senators who are
forever trying experiments with Government FUNDS
The Government would not be able to invest the
peoples money wisely or as judiciously as the
savings banks do at the present time as It could
not be used for public debt purposes as IT is in
England.
The savings banks OF this State contain over
$50 900 What If the savings banks were done
away with and this money were sent on TO Wash.
ington? Is II hard to imagine that a NUMBER or
colossal schemes for the spending OF IL would al
once be evolved by Congressman with fertile I'M
is suited to this country is found In the fact
that the ideal investment. and the safest vital
is the one made at home. where It can be watched
and where quick methods ne used TO prevent
losses in emergencies. The city of New-York is
city having borrowed 100000 from them This
money went into the banks IN niue rvuets 10 use
sands Of umble and thrifty people. For this rea-
city are ectly Interested in good, economical city
governmel II the city government Is wastefuI
and msd ected. the savings OF the people are
jeOpardizet just that extent"
1T is be ieyed by many people that the banks
II was sugg ,sted.
NOT Many UNCLAIMED DEPOSITS.
Yes yes l know all about that" said Mr..
Rhoades. laughing softly. Unclaimed deposits Is
a fine and able bodied bugaboo. 1t is seductive
theme foI some of our newspapers. and 1t never
fails exercise the legislator at Albany BIS are
offered every year disposing OF the unclaimed de-
posts in the savings banks OF the Slate; anu as
regularly killed before they get TO the Governor
The unclaimed deposits in this state. all tod,
amount to 81 OOO and one bank holds the greater
part Of this. The Greenwich bank, WIN deposiies
posts or dormant accounts. as we call them We
keep two busy most OF the time looking up
but who have not been heard from OF late every
once in a while we discover depQst6r supposed 10
ali he had They then get their money back, with
interest During the year we paid out out ZOO 0 on
these dormant accounts showing '"d' '"e' are "o''
after all, unclaimed deposits; Co., J., , =.
,ha, ~ snv OF ber State in the Union. on account
Of it's Limitations in the scope Of investments Atte Yer
comes OF SpG ibeP laws The save
ings banks officials as rule are hosolu,ey, 0p-
,tosed 10 the a1pansion Of the privilege OF taking
deposits and hey are disposed TO have the banks
restricted even more than now we maae an an tnopt
last winter 10 have additional restrictions lncorpo,
rated I'm the State law. but We were threatened
with amendments that would have really sxps pan
the privileges and concluded il was wise 10
leave well enough alone We are limited by law 70
single accounts OF $1,000, except where the deposit
IL a trust account the proceeds OF a judicial sale
We wanted to shut off these last TWO exceptions
and confne deposits to $1,000 under any and all
circumstances.
ICE FROM one COMPANY NOW.
Beginning with the year all the ice output
big cOmnanies Of the CITY VIII be han0led by