New-York tribune., 1907-09-25

discussed; "A smaller reserve may ne found to he
Eastern savings banks , per cent cash reserve is
considered conservative one, and rightly So for
demand. Yet are subject any time. may be
made absolutely subject, to a notice varying from
zen to ninety days
LIFE INSURANCE OPPOSED
Frederic T. Aiken treasurer of the Worcester
County Institution for Savings, Worcester, Mass,
taking the question Of life insurance in savings
banks, said:
am Obliged To confess that can see no merit
ings bank official therefore fairly conservative
in my point OF view, I timd in welcoming such
an innovation but II seems 10 me that il is very De
Srabe that the savings banks. which are pre-emi-
nenty the banks of the thrifty wage Garner should
measure speculative and experimental. as the say
admitted to he. Nv doubts as to the success Of the
plan would perhaps be less clearly defined had
been able to find a single life insurance expert
who believed for one minute that the plan would
succeed or had found the treasurer OF a S'nS ti
The petitioners for this measure have publicly
stated that the extension OF the functions Of the
savings bank industrial life insurance was
because the confidence in which savings banks
held i'm the community would make for the success
of this entirely extraneous bus mess II seems |"
more moral right to use that good viii in exploiting
this proposed business than they have TO use 'ile
tangible assets of the bank.
Postal savings banks the subject of a paper
L. Roy Harwood. treasurer of the Mariners saw
ings Bank Of New London. Conn. was to have
read. He was not present. but the paper he mao
prepared on the subject read by another menl-
ber of the section. 1t WAS as follows:
| have thought for some years that some sort OF
general governmental supervision OF SAVINGS s.; IN M
sttutions would be a good idea B! this 90 .o not
that the government should assume 'dlfer. ,.
carse or supervision of the banks themselves hut
fav@ri me STafe governments. Which should by
all means. have the dIrect snyerHlsoh ol ee oaihs @
hans of bringing about better and more UNIFORM
iTaetr,ent laws and better examination and super
l-TSian of he
its own method of handling this business; some
The Western or Southern & community ,3g to which which
all its moneys for its own development and use;
This money should be gathered together and
notes The rapid DEVELOPMENT of the Eastern
states has been due small part TO this prin-
oriIed ~ these advantages 1t is necessary, there
fore. devise some plan for keeping this money
near home
POSTAL SAVINGS INVESTIGATION
Mr. Harvood. in concluding his address. offered
a resolution providing that the association appoint
a committee TO investigate the question of postal
savings banks in limited territor! and the de-
STABILITY and scope of a government savings bank
commission. 4
William r. Greer. secretary Of tfs Cleveland Saw
inGs and Lean Company, spoke on Uniform Laws
for Savings Banks in the Various States. He
said in part:
Many states have exclusive savings banks. while
in other states the national and commercial banks
1 i itrT sioGlG ne @ d ID ID" re- easonabIe mount
from taxation At present many OF the states place
a tax upon thrift. A rigid uniform law regarding
the investment funds is prime necessity. Make
1t apparent that tse safest place for savings is the
savings banks. and thus save the people from the
In other words, those vital questions. which are
intelIisentIv directed sa wings institutions should
have proper enactment into uniform law in the
various states. thus removing from the field OF con-
lecture all doubts as to whether such rules are a
binding contract
Edward T. Perrtne general manager of the
Audit Company of New York, presented a pro-
gramme for bank examination containing three
main tests. Explaining his plan. he said:
First therefore, let consider the question:
Are the assets intact and the liabilities truly
IS % any d plan eS0n In sS
nection let me mention briefly the methods by
which bank officers or employees steal Generally
II IS according 10 one or more of the following
The theft of money. hiding the act either by
substituting fictitious cash items vouchers
of customers or against expense account. or else,
Dy withholding deposits or receipts of principal or
are Withheld destroyed.
The misapproprlation of stocks and bonds owned
or held collateral. including trust securities and
unyalued securities
The improper transfer Of bank fands by draft
cneck. involving the juggling # clearing house &C
counts 4F or Of balances with other institutions.
III. Ll1iSIer OF Individual credit usually out OF
taTse and fixed deposit accounts. generally into
crate OF an individual bookkeeper
he oyeI-issUe of certificates Of stock or ccrtih-
1t is against practices like these that bank
should be safeguarded by means of frequent
examiners or by directors. for trustees, and
countants As TO the manner of the work apart
from The frequent checking UP by officers of all
mai, matters lntrasted 20 employees several times
upon officers and employees alike. Three o'clock
IA i Ie aIt9rn3on is for several reasons the best
Hour al winch 10 begin TO verify the assets.
FOR sOUNDNEss AND SAFETY.
To al for TapEc and
ffs should certify in writing the amounts of their
oe ascertained what loans have been made during
the period 10 directors trustees. officers
made, directly or Indirectly. upon the shares Of
stock OF the bank examined What notes have
lions are held Whether there is a book record oS
mere mere are no excessive Loans Whether there are
financial statements on file from doubtful custom
having been con1nnnnicafe6 Di,t f., - Irrj,;nn IA,
nit the validity of their paper held by the bank
Whether upon an appraisal of securities they are
xaIue or within the scale of amortization values.
~ Mhcther there are proper margins for loans
Whether mortgages have been made within con
the appraisals On file and all mortgages and
deeds properly recorded. Whether the bank holds
ample bonds upon every officer and employe,
W neither directors; or trustees, and members OF
been as well as whether fhey have been carried
out Whether salaries other official appropria-
tions are truly reflected by the expense accounts
OF the bank Whether there vouchers for all
disbursements, properly approved and receipted.
Whether the last closing of the profit and loss
account Of the bank has been upon a basis of uni
formtty with previous closngs Whether income
has been received upon all loans and investments at
the rates At which they have stood upon the books
whether vaults, safes and cages are strong and
secure. Whether there resolutions providing
Tor a fair arrangement with outside parties from
whom help might be secured in the event of a run
ON the bank. Whether bookkeepers regularly
interchaneed. Whether employees keep accounts
with the bank. and If of what character. What
drafts and overcertificaton have been granted and