The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-09-24

TALK OF
SAVINGS
CONTINUED from First Pase.)

III AItoE htBdi tNtiA III bB btbiNEuANh
and invested in the usual Eastern savings
bank proportion, that is. say 60 per cent.
In loans on bond and mortgage on a 50
per cent. valuation, and the remaining 40
per cent. in United States, State, munich
pal and frs, mortgage railroad bonds.
This would give a great security and sta
billy to that branch of the business. and
at the same time and to a certain extent
accomplish an object which has been the
subject of much discussion within. the last
few years-that Is, the investment of de-
posits In national banks in loans on real
estate. Such Legislation as | propose, while
committing national banks to invest in
realty loans, would p%erforce limit the
amount of such investments to 60 per cent.
of their savings deposits, and no ono, 1
think, would seriously object to this
''The cash reserves he said further. II
think should be kept on the same per-
eentage basis as their other deposits, al
though smaller reserve may be found to be
our large Eastern savings banks 5 per cent.
cash reserve Is considered a conservative
one, and rightly so, for savings banks de-
yet are subject at any time, or may be
made absolutely subject, to a notice vary
ing from ten to ninety days"
William r. Greer, secretary of the Cleve-
land Savings and Loan 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, as we'll as trust
companies, have savings departments. To
properly safeguard the interests Of de-
for the guidance and control of the exclu-
sive savings institutions, but these laws
should apply with equal force and be Just
as binding upo any bank or firm that
~solicits or accepts savings deposits, whether
1t be a national. State or savings bank,
trust company, private bank, or depart
ment store. 1t is apparent that only on
basic and vital questions can laws be
framed that can be enacted uniformly In
the various states, as II Is hardly possible
to draft a savings bank bill in its entirety
that could meet local conditions the coun-
try over. There should be a law in every
State exempting savings deposits up to a
reasonable amount from taxation. AT
present many of the States place a tax
upon thrift"
Alfred L. Aiken. treasurer of the Wor-
cester County Institution for Savings, of
Worcester. Mass, described the new law
passed by the Massachusetts Legislature,
permitting the establishment Of a life in
surance department by savings banks.
Commenting thereon, he said:
~ am obliged to confess that I can see
no merit in 1t beyond that of ingenuity,
Perhaps as a savings bank official and
therefore fairly conservative in my point
Of view. I am timld in welcoming such
an Innovation. but it seems to me that 1t
Is very desirable that the savings banks,
which are prominently the banks Of the
thrifty wage-earner, should be kept free
from any undertaking that is in a measure
speculative and experimental, as the saw
ings bank insurance plan, even by Its
friends. Is admitted to be. The entrance
upon any experimental field would be
looked upon with great suspicion by all
classes Of depositors and would create a
feeling Of distrust which has heretofore
been conspicuous by It's absence. Ny
doubts as to the success of the plan would
perhaps be less clearly defined had I been
able TO find a single life insurance expert
who believed for one minute that the plan
would succeed or had I found the treasurer
OF a single large and active savings bank
who indorsed the bill"
Mr.. Aiken said the attempt of the British
postofflce to carry on a life insurance busi-
ness was unsuccessful. The results there,
he said. were positively laughable to the
active insurance men and must discourage
the optimist who longs for savings insur-
ance banks.
w. M. Kern. the secretary Of the Dollar
Savings Bank Of New York city, deliv-
cred an address on Deposits Received
Evenings" His comments. he said, were
based on the customs and experiences OF
eighty one savings banks in or within com
muting distance Of New York city. He
said:
Considerable difference In the nature OF
the deposits can be noticed between a Mon
day or n Saturday evening. With a typical
growing bank that is open both Saturday
and Monday evenings, the business Satur-
day Is easily twice as heavy as that of
any day, but Of little value to the bank
except as an advertisement. Many people,
especially women, purposely leave their
banking duties until Saturday night, who
ought to come during the week. Young
people are attracted In to open accounts
whose income is insufficient to allow them
to save, and their accounts are soon closed.
There is q tendency for all accounts ID
degenerate from savings accounts to
ipocketbook accounts, on account of the adj
dltional opportunities to withdraw.
I'm theory" he continued. Saturday
night should be the best night for the
savings banks to be open. that the wage.
Garner may be induced to adopt the rule
Of bringing a part of his earnings to the
bank at once, confine his expenses to the re-
mainder, and retain no pocket money to
s%quander. In practise, however, he is
apt to deposit several dollars more than
he can spare, partly in hope that he may
get along without 1t, and partly to pro-
tect him from his borrowing neighbors.
and depend upon the convenient hours of
the bank for himself or wife to call during
the week and withdraw a part Of It, If
needed, which 1t almost always Is.
1T is of interest to inquire" he said in
conclusion. Twill the evening hours in
crease and also, should they? They may
be demanded. but 1 believe they should
be opposed. The better education OF the
people and the facilities for investment,
combined with the c0mpetlt1On or DuSt-
ness banks and trust companies allowing
interest In their savings departments, and
upon their daily balances, are attracting
the larger deposits. leaving for the saw
ings banks to grow on the class Of de-
positors who require evening accommoda-
tions. With the bank additional evening
work adds expense, causes losses by tired
%tellers, and leads to o~ver-depositing and
frequent Withdrawing"
Mr.. Perrine presented a program for
bank examination containing three main
tests. Explaining his plan, he said:
First, let us consider the question:
Are the assets intact and the liabilities truly
shown by the books. The plain question in
volved is whether any defalcation exists.
In this connection let me mention briefly
the methods by which bank officers or
employees steal. Generally 1t is accord
ing to one or more of the following prac-
tises:
''The theft of money, hiding the act either
by substituting fictitious cash items OF
vouchers which are not proper charges
against tbs accounts of customers or
against the expense account, cor else by
Withholding deposits or receipts of prin-
cipal or income, In which case the proper
credit vouchers are withheld or destroyed.
The transportation of stocks and
bonds owned or held as collateral. including
trust securities and unvalued securities.
"The improper transfer of bank funds by
draft or check, involving the juggling Of
clearing house accounts, or Of balances
with other institutions.
THE transfer of Individual credit, usual
ly out Of large and fixed deposit accounts,
genarallv into tha name of Soma outsider