New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-04
PRAISES SAYINGS BANKS
Tells of Requirements of This State
for Such Institutions.

prominent official of the Bowery Savings Bank
of New-York in talk with Tribune reporter yes
terday regarding savings banks in this State and
stock corporate bodies doing a savings bank busi-
ness. said:
The savings banks in the State of New-York are
all what might be called trustee savings oank KS
law OF the State. who are the actual managers or
1t is entirely benevolent and altruistic work. and
in TO sense eleemosynary. In this state and some
OF the New England States all the investments
made by savings banks are strictly speclhed by the
sues bS o. Sic Ne & hT are snecied by the
law, and we cannot buy anything else; Ihey are are
market. As matter of course, they are the hIgh-
the savings bank realizes from such bonds is very
much less than could be had on general secuiltl9s
are allowed to invest their money first mortgage
ON ea % b o W9T T0 e % c to B% per cTan a
bonds and certain municipal bonds, and that
ing their money. II any wants to make time
loan from a savings bank he is obliged by the
which the banks are allowed to buy. and nothing
even Of these which shows how rigid the law is in
In the State of New-York savings bank trustee
cannot borrow or be personally interested in the
oaning of any of the funds of an Institution with with
any personal interest in any manner whatever in
the depositors All The money and other property
held by savings banks in this State belong to the
depositors and held in trust for their benefit.
The importance of the surplus which some of the
H6S c AMER S H a1nrcSted in such tines as
these when the depreciation in value of the best
surplus, might leave savings bank with ,o de-
IN ITS b ton OTeT be e5 State Of Ne
York, and the character of the banks managed by
heT uGetoGS oeg the Of
their fellows. and hedged about by the projecting
temptations of who have some personal in
se or no ea ah5sE Of hT the stuon De- IN
1t is only natural and not to be wondered at that
men all over the country have noticed with covet.
Gus eyes the enormous amounts OF money some OF
fded 70 HEIR care and have deVisHd Wavs bV which
M 20 ,r fn1s az the tbrifv In"SerateI we'll
TO do of this country might be collected and op-
Grated from more selfish point of view;
of New-York there few States in the Union
the protection of depositors. and indeed. compare,
tiyey few States have any at all AS natHF5I
lished far and wide. from the Atlantic TO the Pa
gle individual, most generally ten or dozen, with
a capital all the way from 5000 up, rarely over
promise depositors What they like. to invest the
money intrusted to them in all sorts OF schemes
curity possibly large amounts to the officers of the
porations which they have started without let or
hindrance in such manner as to produce the largest
There are hundreds of such banks scattered over
the country and it would be unjust to say that
conducted; but this is due to the good fortune
Of ability and Character On the other hand every
year witnesses the downfall of some stock corpora
the one o6 at Asbury PARK last spring and the one
more recently at Ressemer, Ga The profits which
readily understood when perhaps bank with
$4,000. owned by a few men, under favorable cir
cumstances, accumulate several million dollars
It is this difference between savings banks of
these two characters which places those of the
State of New-York so far and away ahead Of al
that other States for the good Of their citizens
in measure, perhaps the example which the
Eastern States have set