New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-28
DON'T WEAKEN THE BANKS
sTUYVEsANT FISH URGES THE JUSTICE
OF A CHARGE FOR COLLECTION
To tho Editor OF The Tribune

OF CHAkTE IDft 'oIl'bN Wv
To the Editor OF The Tribune
Sir. Permit me word as 10 the rule recently
adopted by the New-Nork Gearing House.
Competition during the recent long period OF dun
ard bad times forced the banks. IL forced others.
to do n great deal Of business at and belo" cost.
In 60 far as the banks quas-public corpora
ticns they are morally bound. ~ far as possible.
10 treat all their customers alike under similar
circumstances Many dealers. In fact. most OF those
in this city. deposit nothing but money and New
York city checks While IL is true that some re-
ceive interest and others do not this j. a matter
Of contract. and We must assume that the banks
exercise a wise discretion and do not pay out more
than they make. The free collection Of oui-of-
town checks is however, a practice from which.
taken by itself the banks can by no possibility
gain anything. ! submit that. disregarding the In
forests OF the stockholders of banks II is grossly
unjust 10 the great mass Of New-Yor6 city de-
positors TO allow for n moment the continuance OF
a practice by which the comparatively small num-
Der OF depostOrs OF ou;-of-tOwn checks are alone
benefited. In so far this useless drain on tho
banks curians their profits it dminishes their
power to protect their dcpostors IN times Of crisis
why should those OF US who deposit only money
and New-York city checks who do not receive in
tercst on balances who seldom borrow and then
only as any strange may. on collateras listed ut
the Stock Exchange have the capacity OF our
banks 70 aid u.s. and others FILTERED away in help
their business a. the banks expense?
Does not common fairness require that the banks
shall charge those who ask for and obtain collec-
lions least so long rs the banks charge Others
with Interest on loans? IT, TO be the ca ~.
certain extra-favored depositors also receive IN
.ercst on these out-of-town checks during the time
IN which tho banks arr. without compensation col
Letting them, the discrimination is by so much the
more Glaring.
Lest il should be thought that. because am a
director and an unsaiaried officer Of Clearing
House bank. this Is written IN behalf OF that bank
or Us associates In the Clearing House. ] beg 20
say that such IS no; the case ! have taken no
advice with my colleagues or with any bank or
Clearing House officer and solely impelled 10
write in my individual capacity. by desire to see
Justice done 10 the great mass Of depostors doing
business as above described and 10 the members
Of the Clearing House, who are trying in good
faith 20 right q wrong.
In common with other securities quoted AZ the
stock Exchange. the shares OF certain banks have
advanced materially OF late. The fact Is that the
business is becoming centralized in the hands Of a
fov That the banks I'm the Clearing House. taken
&c a whole are not making and have not for
many years made. large profits is shown ny Inc
constant reductions in their aggregate capital
which was SSi. 800 % twen;yseven years ago. IN
49, and IS now only SIS 222.Ic
Why should capital be thus largely and 'oniinu-
ouslv Withdrawn unless It failed to earn an ado
quate return?
or taking into accoun; both capital and surplus.
and looking 10 p more recent period A. the close
% 1893 this amounted TO 1892 ols@o and at the
close Of 1895 10 ;l34 90 600 increase Of Eo2l son
or a trine over IL per cent IN five years. being
AZ the rate Of about one-thlrd Of per cent per
annum.
The dividends paid by the banks associated in tho
New-York Clearing House far from being excess
slve when taken as whole. have not been ade-
ouate Especially IS this true when We consider
The stockholders double liability. Their capital
ad eurnlus of sl34Oio coo realized in 1895 dividends
amounting 10 S5730N6 being at tho rate OF 81"
Der cent In 1897 it yielded trife less
is II not high time that these clearing House
hanks on which the financial stability ~ the
whole country ultimately rests should now SGT
their house in order cut OF all losing business ana
accumulate profits which will enable them 10 SAFE
guard the interests Of their depostors ana OF ''r
nation II need be- when the next panic comes
Very respectfully STU hoA.>l ri0"'
New-York, March q, 1899.