The Providence news. (Providence [R.I.]) 1891-1906, 1899-01-26
BANK men ON
SALE OF BONDS.
Opinions as TO Wisdom Of State
T!easursr's Course.
SOME DOUBT ITS SUCCESS.
4 n.l .l... TIL TIL. z.
They do Not Believe That This Is 0rpOrtune
Time 10 Make the Sale.
FEAR THAT LOSSES WILL Be. HEAVY.
Better Course Would Be 10 Dispose Of The Shares
al Private Sale as The Opportunity Offers.
Some Other Views.

The fact that General Treasurer Read !
has decided TO sell the holdings of the /
permanent school fund in national bank |
stock has created quite a deal of in
terest i'm local banking circles, and
opinion is more or less divided as TO
the wisdom of the proposed plan, par
ticularly at this time and at auction
sale. quite a number of prominent local
financiers believing that the loss to the
state will be much larger than is gem
orally believed. AS was stated yester-
day, Treasurer Read has decided upon
this course i'm order to avoid a further
depreciation of the fund and has ar
rived at such "A conclusion after con-
sultation with several gentlemen who
have given the subject much thought.
A News reporter called upon several
local bankers this morning for the pur-
pose of ascertaining their views upon
the matter, and IL was very evident
that, while many of them were willing
TO express an opinion, very few were
willing TO be quoted by name, giving
as their reason that IL was not Gus
tomary for one banking institution To
criticize the affairs of another.
Mr. George L. Littlefield. president
of the First National bank, said that
he had not given the matter any serious
/ thought as his bank was not concerned
| in the matter. In regard TO the wisdom
| OF the state i'm selling it's stock just at
present he said that If the state knew
| exactly where and how to reinVest the
proceeds of the sale To better advan-
| tage ne thought II was wise 10 sell at
| once. OF course, there would be n loss
| a. 4. ,,I hA saf1ln INF nf tG
! loss would be ascertained when the
| sale was completed. State and town
| bonds while not very remunerative.
| w are a safe investment. and he did not
| think that the banks holding the stock
| would be affected by the action of the
1 state in. selling out. He did not Know
| when national bank stock would rise.
| but he thought IL might rise with real
estate, which was generally the last III
line.
| A prominent officer of the Industrial
Trust company was of the opinion that
| If the general treasurer was authorized
| To make such a sale that investment
| in state and town bonds was safe
venture. He thought that the sale of
| such large number of stocks
| would have a tendency, if they were
! bought by the right people. TO bring
about the consolidation of certain bank
ing institutions, and he did not doubt
\
much of loss the state would have 10
stand by such a sale at auction he did
not know, and this could only be learn
ed after the sale.
Mr.. c. H. Sheldon, Of the National
Exchange Bank, had very little TO say
beyond the fact that he thought some
of the stock would sell better than
some people seemed To believe. He did
not consider that it was a judicious
move TO sell at this time. but was OF the
opinion that a sale Of the stock, If II
was deemed necessary by the state
could have been carried out more pro-
fitably by selling it as the occasion or
fered itself at private sale.
The president of one of the principal
national banks who declined to have
mis- name used. said that the pubic mac
received an impression that nationa
bank stock was very much depressed
at the present time, ana there was
some truth i'm the idea. But it should
be borne i'm mind that national banI
stock has not deprecated any mor'
than any other line of stocks, ana, II
fact i'm many instances, not as mucf
. as these The Providence banks as
whole made a very good showing IN
deed, particularly when compared witt
= those of Boston, and II can be satell
said that while there has been deple
citation i'm the stock of national banks
i'm this city they have not suffered NOR
{ than other lines of investment.
{ | I'm regard to the policy of the state u
, ! selling it's stock at auction he coul'
: ! hardly consider il a wise move, partic
| ularly at this time of depression Whel
the purchase of national. bank stock
was not eagerly sought for He suppos
. ed. however that the general treasure
;. had considered the matter carefull
n and he did not desire 10 offer any spe
. cial criticism at this time. Later n
4 might have more To say.
Mr.. Barker of the commercial Ma
tional Bank thought that ii would u
better for the state to wait until TN
stock of tho banks i'm question appro
ciated or until something towards liq
+ uidation was done, for he believed ina
The loss upon an enforced sale woul
no very large. Of course. he only wa
: able to- Judge from what he knew 9
u quotations Of prices. but he thought n
would be advisable To hold the 'stoc
:, for a while longer because ne believe
bv so doing that the state would be
y gamer.
n An officer of the Rhode Island Na
10 tionaI Bank said that. without haNln
70 gone deeply into the matterhe thougf
4 that the state had held on TO It's ne
m tIonal bank stock up 10 the very TIN
~ vhen A should not let u go. Further