The daily morning journal and courier., 1899-05-08
THE LOCAL SAVINGS BANKS
AND THE REGENT MEETING OF
 THEIR OFFICIALS.

Their Action Recommending to th'
 Truste the Reduction of the Interes,
 Rate from Four to Three and One Hal
 Per Cent, After the Present Quarter.
 The trustees of the three local savings banks undoubtedly will at their nexi meeting unanimously agree to decrease the rate of interest to be paid by the respective banks from to 31a per cent on deposits aggregating $2000 or less The decrease will begin to apply al New Haven and National Savings banks on July l and at the Connecticut bank July 16, their regular days for in- terest payments. In other words, de- pcsitors will get the same rate of inter- est as heretofore up to those dates, and afterward the new rate will apply This action of the trustees will be taken in accordance with action taken at a meet irg held Of the officers of the respec- tive savings banks and the presidents of various of our discount banks. At this meeting it was unanimously decid- ed to recommend to the trustees of the respective banks to take the action in question.
 Maier Zunder, president of the Con- necticut Savings bank, said last even- ing: "The step in question will no doubt be consummated by the trustees of the several savings banks of this city at their next meeting, and after the first of July the interest will be computed on the new basis. It is a step which was necessary and unavoidable, and banks all over the country either have reduced the rate or will soon be obliged to do so. It is wonder that our banks have done as well as they have. The savings banks have to pay an annual tax of one-quarter of one per cent. tax to the state. Then the annual running expenses of the banks, including sala- rles, gas bills, books, stationery, etc, amount to one-quarter of one per cent. more, and our banks are economically conducted. There's half per cent. to start with that the banks must earn, besides the per cent. they have been paying their depositors, and it is hard nowadays to find investments such as the savings banks are allowed to take that will net 4 per cent The interest yield on sound securities that the banks can invest in has been falling for years past, and 1t has been a tight squeeze for the banks to net per cent. for their depositors, do whatever they might. Then, too, the law requires the savings banks to keep three per cent. surplus in funds readily available or in cash. Thus, with two million dollars deposits a bank must have $60,000 in funds imme- diately available, as a surplus All of our banks have not only maintained the surplus required but much more than that All of our banks are in first class condition, and are a credit to our city, At the meeting held awhile ago at which It was decided to recommend to the boards of trustees of our sav- ings banks to reduce the interest rate there were present President S. F. Mer- win of the Yale National bank and New Haven Savings bank, Henry D. White, Oliver S. White, Willis E. Miller, Pres dent George w. Curtis of the City bank President c. S. Mersick of the Mer- chants bank, President Wilbur F. Day of the National New Haven bank President Burton Mansfield of the Con necticut bank President Maer Zdnder and Treasurer Julius Twiss and MT
 
 Treasurer Elliott Morse and Major T. Attwater Barnes of the Connecticut bank, President E. G. Stoddard of the National County bank, Treasurer Rob- ert A. Brown, F. H. Hooker and other men named above, representatives of the New Haven Savings bank. The discussion was full, covering the ground on all points, and it was the unanimous opinion of the meeting that the step in question was a wise one and they rec commended the action in question to the several boards of trustees. who will no doubt at their coming meeting vote to reduce the rate, commencing with the beginning of the next dividend periods. Therefore, after this our savings banks will pay 31a per cent. on all sums up to $2,000 and } per cent. on sums over that amount, instead of 4 and 3h, as here tofore.
 Treasurer Elliott H. Morse of the Connecticut Savings bank said Saturday morning: "The bank officers have dis cussed the question of reducing the rate of interest, for some time, and it is the unanimous opinion that de- crease must come. We have been pay ing per cent. and owing to the peculiar conditions of the investment market, have been unable to get such return on our money as would make such a ratio advisable In fact, the banks cannot pay per cent. and do business. I think there is every reason to believe that this step will be taken at this time" Treasurer Julius Twiss of the Ma tional Savings bank said: "The bank officials have met and thoroughly dis cussed the question regarding interest rates, and am prepared to say that in all probability the banks will come down in July to 3 1-2 per cent. The question has to be voted upon by the trustees first, of course, but the step | has got to come. Investments for banks which are safe are constantly in- | creasing in price, so that we simply can- | not afford to pay per cent, as the | finances of the country are now. We | will pay per cent. on July 1, but after | that I believe we will pay but 1-2 per cent"
 ARMY-BEEF COURTS REPORT