The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1908-03-18
SAVINGS BANK DEPOSITS
We're Surpassed by Withdrawals to
Amount Of $31 1,6os,se7.


Albany, March ia general re-
vision of the banking laws affecting
cooperative savings and loan asso-
Citations is recommended by Superin-
tendent Clark Williams of the state
bank department in his annual report
TO the Legislature on building and
loan and cooperative loan associa-
tions. The report says that this class
of financial institutions passed
through the recent financial disturb
ance with a greater increase of assets
than in any other period.
In discussing national and local loan
association the report says that 1T
seems almost an absurdity that these
small institutions organized for the
same general purpose should be trans
acting business under no less than
five different laws. There should be
a general revision of the laws relating
to such corporations in order to pro-
mote uniformity and give the public
generally better understanding of
their merits.
Under present conditions, such di-
verse methods were pursued by differ
ent associations that even those who
are fairly familiar with the business
of a particular association have a very
slight comprehension of the methods
pursued by other associations.
1.-THE practice of making loans upon
the divided or second mortgage plan
should be prohibited by law. A limi-
tation might well be placed upon the
loaning territory OF such associations,
and provision made for the rebate OF
gross premiums upon the repayment
of mortgage loans before maturity.
Such associations should also be pro-
hibited from treating unearned gross
premiums as a present profit for the
purpose of paying expenses and de-
claring dividends. The practices,
however, which such amendments
would correct have been largely dis
continued.
Business depression, deprecia-
ton in the value of securities and
other unusual conditions character
ing the year necessarily had their ef-
feet upon the savings banks in COM
mon with other classes of financial
institutions. Though the aggregate
Of amounts deposited had never be-
fore been so large in any one year ex-
cept in 1906, the Withdrawals were
altogether without precedent, exceed
ing the record of any former year by
$43,O00,000, and for the first time
since 1898 overtopping the deposits
| received.
This excess of Withdrawals over
deposits for the year amounted to
$31 sos, ,S97-the deposits having been
s390,095,749, and the Withdrawals
$421,704,646. Dividends credited pre-
vented a decrease for the year in total
resources, which were $1,463, ,295,6 ,667,
a gain of only $344,S44 since the pre-
ceding January, though the amount
due depositors increased $1S,363, ,253
in the same period.
"The surplus of the savings banks,
based on the reported market value
of their stock and bond investments,
decreased 1886, 9S9 during the year,
while the par value surplus gained ST.
80 ,S71; in January, 1907, the market
value Of the stocks and bonds held
was something like $36,OO0,0OO under
cost, and in January. 1908, the differ
ence had increased to nearly $60000,-
900. During the year the number of
savings banks paying interest to de-
positors at the rate of per cent on
at least some part of their deposits
increased from seventy-six to ninety
seven"