New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-27
THE STATE BANKING SYSTEM
SUPERINTENDENT KILBURNs ,>.,..
REPORT TO THIS LEGIsLATr-pr
RECOMMENDATIONS LIMITING SAVINGS RAW
pats AND PROTESTS AGAINST THE NJ
MovAL OF RESTRICTIONS AND THE

RECOMMENDATIONS LIMITING SAVINGS BANK n,
P~sfTs AND PROTESTS AGAINST THE pv
MovAL OF RESTRICTIONS AND THE
TAXING or SAVINGS
Albany. Feb. &c CspeclaD.-The annual rsr,..
the Legislature Of Frederick D. Kliburn sur..,"S
tendent OF Banks. relative To savings bank. ,'N'
| companies. safe deposit companies ana ro,.s.s'
neous corporations WAS made public to-day
After giving statistics Of the savings banks -,
trust companies which. 80 FAR as relates 70 NJ
| York and Brooklyn have been published in p.
! Tribune. Mr.. Kilburn says f. part as follows:
THE LAW AS TO PAWNBROKERs
As indicated in my report Of year ago rsz,,.
ing miscellaneous corporations and again this w.
| in the recommendations accompanying that 80,
OF my report relative to banks Of deposit and A.
count the operation OF the law In question Il /.
general gross peryersion Of the legislative II,
tent which induced its enactment. and consti,n
an abuse a continuance ~ which cauno, h. -
mi,ted II due regard be Aad for the dignity of'I
nec6v then certainly not 10 sanction aTSrms,,,,as
| methods by which they may be- robbed. Wnsres,
| tho law was designed 70 save the poor from n.
snVerjtv Of naWnbrokers' exactOns Or Al less,
| uroyid- agencies Of a charitable character thggigs
| which loans might be made upon easier terms han
formerly. T. mascs possible me organ ztt!on q as
paclly; WI ,hero 20 bero-,,e fbeir Sor, "nos
! The extreme tribute which want and misery can *
| compelled 70 yield when the alternative Is starys
'q" am advised BIZ the Attorncy-Geaera that uus,
| the law as II stands | have no supervision over
these associations, except upon u atitinmsnl q
! no; arise and IL would be IL Illumination y Il vera
| otherwise while my powers regarding them coz
| tinue a. empty as the law now makes them.
| the remedy which deem necessary 70 apply
| contained in "A bill now upon your Mes Il w0gA
| bring the associations ~ question uhl'r a STATE
supervision. the cost OF Wnleh i"'y "e.4G oe ~
| quircd TO pay. and would cnanlt me ~ leasi 10
| moderate cxdctions which haye reason to believe
| some OF them aow practise. and ty "nich some Q.
! them take from their victims tn' lnFafyng rate Of
! pc. cent pe- month for the use " money Desfs
| recurring them 10 pay over and over Tor drawing
panc.s and Inspecting the chaticis pledged as Sc.
There are some associations IN the state formed
with the aim Of charity as "''i ~ OK Pron' wMeh
are doing creditable WORK un'vr 'n' 'am. l an
E bfore Tho LEGISLATURE. against which II seens
| to me- 10 Just objection can Be MADE.
RESTRICTIONS FOR SAVINGS BANKS.
know Of but single measure Of Affirmative
! LEGISLATION needed by the State savings bank syE
| tom or from which benefit would Doc llkey to az
! cruo ANYTHING beyond that az this time would "a
| more likely 10 prove harmful than helpful ia
measure IN question was introduced in the Assem-
| hIy bv Mr. NcEwan II strikes out from one SCI.
| lion ~ the Banking law an I'm 'dl,yh "iIcA
Inconsistent with the unquAHu"l piv''DlttVh 90.
rolned IN a subsequent section AZ il.-l ahy uls's
~ of,c"r of a savings bank becoming Indebted
such bank or in any way an 2osrT ~, 0ns ~
leaves the restriction imposed by t"c Al.-I se,tAa
clear and absolute The pm iIrth,r plD'rss ny i,
- the crcdit Of any individual including aoss o.
posted 10 his own and another 'tst.'' sna'a ~
~ an time exceed s. OO) and also that the aggie.
gst. amount OF all deposits IN any one sdl.hs'
bank to the credit Of any person. go. po.s''C ~ .
societv in trust COR any person "r I'lsv.s' )" ~
eYecnior administrator guardian Or agent o u
anv other duciary character shai! no. 1891 :.
az, inn the same limit. unless suen drpCsln Ns.'
NJ ad nrior TO May J. 1890 The aim Of tnese Pc
~isions is TO prevent the savings banks oelns a.s
sSey ior dieiinctiyey the agents and servants
those whose means are 50 sinaIl - ,ge,t invest,
OppV and Whose inexperience makes them unni
Undertake the care Of their own FUNDS
BILL DIsAPPROvED.
The savings banks carry nearly $l"co"O OF te
debt of the United States, and nearly S-"v"s
~ the bonds issued by the State OF Ne"-i"A -.
re various subdivisions. What the existence u ~,
market for these securities means III 'ne "ay y
establishing a premium for them anu e,"'"
,hor ~ no noated at low rates Of interest u p b..
course impossible 70 measure with ,i ga a.
unGues, .ona ply the peeht II 70 ri,hii, Tor to
lords an appreciate return 70 tns Pose.s uniy
aysmpfions which the savings banks possess u"'N
me T Jaw hanks have in keeping the savings Of "
beimIsss sacred trust. 20 the taithtu s -.
which the State is bound almost elI nn,ln'by law
hanks Il cannot. then in hOnoI sa,,J - yxonH
any investment which business u ~ -, tiu rsg
reject or even hesitate to approx, va. h a Nh
nending in the Legislature. fais 20 i.ee ' bs r.
pecIirSments II would open for savings 0dhs ,,.,
vsstment the bonds of all such rai!Eoads eS s
street railroads, in ten states as mao eroJ and
9od dividends on their stock FOR stated pe'oI A
as had met other specified reqll' l's rV
rbich II i 10 be observed inciuats an! p , Ia
Wn.Ct ,bv shaH nave punctually and regularly pald
their creditors Under the eNss e i.ri dy' could
the bonds OF me sd by saving bank If had de-
fsuIted in interest or principal ~itnn s yen S is
1e, IS Of marketing With savings bank.
nerbaps dshonored bond shall be- anordea w 70 "a
r9ad d msk the bonds Of street railroad con.
NAMES a legal investment for SAVINGS oa INV IN.
il Is understood that street m - @xpendi,ur.
f 5eycnd lbateryed from the sale Of bonds =,
reckless and hazardous nature o. IN. ,e
must be instantly apparent ana a"iH'''''
THE PROPOSITION To TAX SAVINGS
ri. annual ronort Of the state Board Of Tax
commissioners. transmitted 20 the Legislature
summary : 1899. recurs TO the subject OF the -.
attain of savings banks deposits ana deilh'e! ~
o,,nends unless the abolition or az srs thsts
sonalty is to be made the p9H 81 ,,,te proceeding
,ax unon them be prescribed 10y s,"tu,u could b
oaA r. argue that - uoooo annu"lii;- Ss ihis
collected without any one pay - rsbal taxpayers
orer crusade is undertaken 10 m@Isn'ib fsr;uns
on narsonalty from those 80 it'oltt- 53vsrsgrg
rat they have actually amasSed 500 r7 with care
Sa8S oncb / nave searched TN report 49, W, mort
-, ,,iDiy for ,he slightest suggestion ma a. sx.
he made to bring any otner pc PEI 80 uay escap-
prp,ed from taxation that Is I'D any va ~ ks
eiIPleu p,irden 70 the payment OF tribute WI,sI
iaSgat herer and am amazed mar 't's ;, i've s2Ool.
single out this one Interest an, aiu ~ when the COR
,roler Of the State declares that study anu nsT zen,
walton convince him that NO NOR ,''.' ,Sssssssed
Of ne persona Tor morgage loans diminsnsas
with the quotations for hisr-cass o} rais at vhs
Ing continually. with the ,.n',I,i,iy downward ard
wit5 many banks compiled already by asOOs
factors 10 reduce their raps OF diNiu., airly cor
TORS 4, must | think, be PLAIN 10 any t a. mos
sIderaie man or body thu the present Is sor h.
untmely occasion 10 press a ploi'S 80 ,bs trs
taxation of the savings II the poor a.u 'hs,sus
funds of the widow and he orphan s.lnpH ~ ~
m!ngled with these mneys are at live OK,
weil-:n.do These latter no one Nouid el, ss,ss o.
Tho hanks more quickly than l. and me h.,eiy e.
the S;ae Savings Banle As,oGalI'n is - an nis
crtcd in rho Same direction. Bui 10 TAX an,sssna
criminatel; would ne ank injuSii'' "ii s,s N.
10 those who most need and best ~ tn.sriop
states forbearance nd protection. ana yS,t
10 the savings bank system 10 degree '
dread 10 contemplate -
,,rcr,Kr AROrT UNCLAIMED DEPosi'