New-York tribune., 1900-01-02
PROSPERITY OF STATE BANKS
MARKED IMPROVEMENT IN THEIR CON
DITIoN-sTARTLING DISCLOSURES
IN BUILDING AND LOAN
.ccor,r

y bankers. The report says in part
beB of Of the e sea 2t a me & siai s9d
September 30 last, Of the affairs OF the institu
attention centres first upon two general facts as
surpas ssing al others in interest add Importance
IN question has been unusual, and the increase in
| Upon The other hand there has been no time in
! Banks when so many starting disclosures have
/ been made regarding the extravaganza in manage
Who make BUSINESS Of ACQUIRING q oorr6i Of buId
| ing ana loan associations only 10 plumber and
II Tested BY the reports submitted By themselves
millions MIL. OF dollars in resources durnE the yeaE or
has been in the Pe same time consideba s1iTa
/ tion from their statements OF assets which had
the quality Of those which remain is believed be
%GouPtess % been even greater than is suggested Dy
IT The s Tes9 roLces gIyen ., tho ss,s a. Increased
equals the gain ns5 m 70 rem ny; 3;,riT The eTtirs
year 1895 and The nIIr5e s I'm ~ omen en- ascotHts was
augmented by over sixty-fve thousand in the same
six months, whereas the total Increase in 1895 vas
/ available Of later date than July, there is no
periencihg continuing growth.
! GREAT TRUST COMPANY MOVEMENT.
/ Eight new trust companies were organized during
te seal year ana aufhorlaed 10 transact business
ana at least i've others were in the course OF or
Ganization when the year closed. The combined
d poraons a Pao in srpaz m 81 he % y~o
gap 9 m M m M & 200 m naG more tba9 was re-
ported by the forty nine companies IN business at
this development has ever before been known, and
ii engages wide discussion and speculation in hnan-
| cial circles regarding its significance and possible
| consequences.
Ihe apprehension sometimes ayowed, though
| rarely that in the mere fact Of the multiplication
! Of trust companies there may lie possible cause
of collapse and serious general disturbance seems
| to to be wholly without basis to justify it, The
| recent suspension Of the Produce Exchange Trust
of w f s d9s oT HGt the m al
| ment of the institution was entirely the conse-
making loans nearly s. 100000 having been tied up
| ~ nnsvaiIabie loans and upon collateral upon
! which it could not readily realize. No trust COM
panv can be organized in New-York CITY, where
| Gated With a capital of less than 100000 which
must paid in in cash and invested in the highest
The scandals in building and lean ASSOCIATION %
| iessIv improvident management which had been
| for some time continuing, in dehance ot Ieilon -
tive measures by the Superintendent of Banks, and
| which were detected by the Departments examin-
ers and thwarted In one at Ieas & ot fne 1stitrted
against the consPirators and ] as the H thfs ed Of
! work a saving of s350O00 or more appears to have
been effected for the members OF the aSSocid lions
! mted to continue to associations Of TINS & cnar+
aeteT ny aTe Which they are
| designed promote, and make them means means d LOT
for specuIations wherefrom the shareholders suher
ag e snf total resourceS Of the institutions under the
supervision of this Department, as shown oy their
Of deposit and discount September .oo os9 ,ss
sayinss t'ts Banks July l. soa 9gS 97S s5 1s5
companies. July l. 1s90 - o9 90 90
safe deposit companies July J. ls9 900 zy$ re IN
building ana associations, January l. c,-,eeaa
1899 -----'---'
IT,, 14G9ss. SOL
IN r,n foT9@Tson with !ne previous 248423
! A decision handed down by the Court of Appeals
In March last declared that the statutory eNemp11
ion of savings banks from taXs ton appIies ana
gvnFa Wai BaHfs to as t6 the BANK the
question had long @ been t60cr Opinions in
regard to H. The law in the case having now Desn
! Legislature will be importuned amend it. The
search for new sources OF tax Tevee66 6 eaItb in
the savings banks. where it can be easily ana ana
hunters as rich field for exploitation Taxed at
merely nominal rate, 1t might yield million i or
and private bankers their deposits at the same
could he made to bear uniformly upon all there
might be Justification in taxing the savings banks
were not wise an reimbursement TO provloence
and thrift to forbear taxing the small accunn&ta- "a
tions of the wage worker or the pttance OF the
All who give e an intelligent consideration TO the
needs of the savings bank system. with sincere
I M sgreed ha the two
to those s o the m 'e
! of that condition that persistent and sue
institutions to reduce the amount of their dormant
/ accounts by discovery of the owners of them and
the active state and that to the largest practicable
! extent the accounts which the savings banks no.
! / cannot too strongly urge upon the Legislature
/ the Importance Of radically amending the law au-
] thorizing the organization Of associations FOR
Ioaning money upon the pledge or or mortgage St c per
ASSOCIATE ions The act as II now Stanas PerlnitS Pt
ing under 1t to exact whatever rate Of interest. up
! 20 the maxmum named In the statute maj I 'ite ne
consent to pay.
! BUILDING AND LOAN ASSOCIATIONS.
! There has always been considerable prejudalcee
in building and loan s,ia6 erGs sSond
be abolished relaxed can be only an acaQetlte ne
practical test afforded by experience or even OF
examination upon all o Che meriJs of the case. II
rests almost wholly upon the representation that
few associations Of this class have general credit
to any large amount ana @ tHa5 wRefaer fa a 6nfy
aged Is the concern exclusively OF their members
WHile it is true in theory that every member of
building and loan ASSOCIATION IS a stoGkhoIgeF % aIs
access TO the books and accounts for information
in nractice such is not ;he case ALL These as
sociatons in New-York have an aggregate OF
nearly one hundred and seventy th9,usand mem, mem
i ,tbiI fn the Larger associations the mem
bership is so widely that there Is in Tact
sonal examination of institutions affairs, and
the system of elections almost necessa.rlIy onLaIn-
ing Moreover. the members and the pubic, mis-
led by alluring adyertlslns anu oy srpaTv Ie
conceive their relations TO the ssociatlons' @ ena
believe their investments in them TO rest more upon
the basis Of deposit in a savings bank th2h
upon a partnership venture EhIca IL 1 reaHE -.
Consequently state SUPERVISION Is hoI meIeF JuS''
fed but is made an imperative ooiigatoRs; ,,.,+.
sHn5Ie in brooklyn. whereby the promise OF the
impossible rate Of interest OF SZ Per cen. Eea
FeU geeks - deposits approaching 100000 empha
sizes the nseessi'y Tor Tor tnr So long as is
norance and knavishness exist they propaoiE can
cafe Is far from standing alone evidence that