New-York tribune., 1908-09-29


1t is asserted in the report that bills pending for
the creation OF postal savings bank system are
wrong in that the exemption of deposits from legal
process VICIOUS il would provide depository
for funds of the dishonest and the fraudulent.
where they could place their money, draw interest
on IL and be free from attachment which would
prove a serious menace 30 the business interests
OF the country. In the use made by the govern
of the funds coming into its possession
through the postal savings repositories. the pro-
visions OF the bills do not wide and
equitable distribution of the funds deposited, nor
prevent the Capitalization of the peoples money,
which belongs TO and should be retained in their
respective communities No provision being made
for a time notice for Withdrawals, the government
might at times be seriously embarrassed. to the
great detriment Of the general business interests
of the people.
The committee is made up of Colonel Charles E.
Sprague, offs New York; Ex-Governor Myron T.
Herrick, of Cleveland c. La Rue Munson of
Williamsport. Penn, and P. LIE Roy Harwoo6. of
New London.- Conn
The committee finds, however that, although in
its opinion great detrimen will result to the
existing savings bank system from the establish
ment Of postal savings repositories inasmuch
as the present facilities are superior to any that
could be afforded by the government to those
OF the countries where postal savings banks now
exist. yet the previous experiences of the United
States government in conducting banking institu-
tons. and notably in connection with the Freed
mems Savings and Trust Compay, do encour-
age II to believe that the proposed postal savings
system would be managed more wisely or with bet
ter success than the existing savings institutions.
1t believes 1t preferable to educate the newly
rived foreigner TO American methods rather than
TO accommodate methods to his inexperience.
The committee points with pride to the record of
the savings institutions of the United States While
the figures for 1907 not yet available during
the year 1906 the aggregate net loss depostors
was the trivial of. $780, 900. being 3-1OGooaof
per cent total of 50 800 900 900 in savings de-
posfts, whereas the proposed government rate of
per cent would have deprived the depositors of
at least s50000.000 in interest In the same year.
Pierre Jay, Commissioner of Banks in Massachu-
setts, in addressing the convention on the proper
treatment of savings deposits when taken by state
hanks and trust companies. said that in most
states the savings of the country deposited in
classes of institutions which never intended
TO be used as savings banks, viz, state banks.
tional banks and trust companies. And further
more that as the investments of these institutions
are substantially unregulated by law. the invest
me mt of savings deposits in majority of the states
is without legal regulation, and consists for the
most part of commercial paper representing or
dinary business risks. Continuing, Mr. Jay said:
=, Should not all savings deposits be invested in
the same manner by whatever institution they are
have his savings invested in approved securities
or trust companies? This is principle which has
@ oee a adoPted OF fe In and placed on the statute books
pears in less complete way in the banking law
OF OF Michigan. At its convention in June the Ma
tionai Association of Supervisors of State Banks
unanimously resolved to recommend its adoption
working of the principle is this: All savings de-
posits are required to be kept in savings de-
savings department entirely separate from those
of the commercial department or bank proper The
those securities and loans which in each respec-
savings or trust funds In case of failure or dis
solution the savings depositors have first lien on
are insufficient, they have equal claim with
other credit9Ts of the institution on its general
stock and on the stockholders liability, Such
tised cannot fail to Increase the confidence of the
laboring classes in the banks and to bring to them
ton Furthermore. it cannot fail, to increase the
Rer ngs in the BANKS and reny e e
timid in times of stress As the membership of the
tions which have enumerated as engaged in re-
eeiyng savings deposits its members can hardly
of the laws and regulations under which they are
Of the as G @ bank IN .an ' Of
the states and the total lack of it in many others
savings bank
There is nothng. radical in the segregation. plan
tutions It drives no existing institutions out of
from the Of 70 sanss depos 10
The laws of several states. notably Ohio. l1ich
provide that bank may, conduct two separate
ings.. The segregation plan secures legal and
actual separation Of these two fundamentally diff
posts to- be adminsteTed and invested in
which should command the entire confidence
of the public.
J. c. Griswold of the Excelsior Savings Bank of
New York. gave interesting talk the effect of
the recent panic the Eastern mutual savings
banks. pointing out that In the states Of Maine.
New Hampshire Pennsylvania. New York, Mary
land. New Jersey and Delaware there was on de-
post in savings banks about July l. 1907
81 sos 666 Sc, and about July /, 1905 s,S92
2G2.075 95. thus showing decrease in deposits of
only s12.S72590 A. or .0es75 per cent Mr.. Griswod
added that no savings bank located in New York
Connecticut, Massachusetts,. Delaware. New Jersey,
Pennsylvania, New Hampshire. Vermont, Maine
Maryland failed to pay depositors strictly in
accordance with fits legal contract In a few
larger cities and towns centres of bustlins trade
It was deemed by savings bank managers that 1t
was for interests of the depositors and the
community to require thirty, sixty or ninety days
as their bylaws read notice of intent of depostors
to withdraw than $50 to 500.
The report of William Hanhart secretary or the
savings bank section, shows that the membership
of the savings bank section on September aggre-
gated 1523 as against 1224 at the date of the last
convention A considerable proportion of this large
increase in membership (greater than IN any pre-
vious year, is due to the enrolment of many state
and national banks and trust companies already
members of the general association who have large
and fourishing savings departments, and are Keen
" and directly interested in our work. indeed, the
savings business of some of these banks is larger
than their commercial business.
"GO SLOW" SAYS YOAKUM.