The sun., 1910-05-26

This table. read IN connection with the
Law tells The whole story, said an Oftcer
~ one ~ tho hanks ol,pOsinga Reduction
The law provides that delpositOrs shall
recPive az nearly as may be all the profits
zftar necessary sxpenses, amortization
u. premiums and discounts un securities
and conservation u reserve fund SUI
f-isnf - meet any contingency or loss
In its business from the depreciation of
~ securities or otherwise. The table
shows that many ~ the hanks which have
most diligently increased their deposits
have much sn,a Her surplus funds over the
amount owing their depositOrs than have
many others which made only small
increases IN Deposits last year or actually
sustained a loss. The table also shows
individually that many hanks should not
ray a. high a rate as r-sr cent, until
the surplus funds are increased.
The law SAYS that the State Superln-
tendent n the Judge u the amount u the
euYIrlua fund which a hank must hold 10
meet contingencies. IN my opinion the
Superintendent should insist that hanks
With smell reserves should cut down the
Iayments ~ depoait0rs and he should also
l.srrnit OF insist upon hanks with hg
reserves paving q higher rRia than -
nreseut. The depUaitors. the iaU saya. are
entitled 10 the earninga know the
prediction is made that Mr. Cheney will
not do this but Nill recommend instead
= hon zontal reduction of the interest rate.
But ] cannot cUnvince myself that the
report IL oorreUt. espeoiRlly ~ ms time
when the inrnue Of depositJrs IN al inRti-
trtions he's Glreedy been grer'ly i'm
paired nv the high cost Of living.
quite a. emphatic opinions Ee7e ex-
pressed hv other very prominent bankers,
Who believed the rate should be curtailed.
kloh artIon. Il was oontended. was IN the
interest q the depOaBors Ot all the savings
banks thvrughOtit the State. 4 moderate
oyni1n was expFesaeA hy Henry VI
schsnck PRESIDENT Of the Bowery savings
BaHk which reduced itH interest rate
from { % y Per cent. last Jsunary.
he sd
This reduction. a. the trustees and
myself have found. Was the result Of
good business judgment. The BoWery
Savings Rank shows earnings and has
surplus sufficient % pay Z per cent. nut
ne hrge savings bank should be an eN-
annie ~ 'he smaller one. Smaller banks
which 10y We cannot reduce our rate
o. o. 0er cent because btg nvings banks
raw ner rent and which are unable
o. paw the higher rate without impair
rent u earnings and surplus. should
have reiore them the examplf 81 large
hanks Voluntarily reducing their interest
fa'as
Tna big depreciation in securities,
O. '1e holding ~ which Swings banks
So limited such a. Stlte, New YORK city.
other city and high class railroad bonds.
is behind the reduction. These, h =
veil Snown. need n appreciate oOnsid-
srF.r before the -avtDgs banks ~
natter q good business should begin
.. fav per cent. 10 say nothing oi con-
t..rg tie uLta.
The Vew York state Savings Bank
As-H 'I1n has no power - compel any
90 .ts members q reduce their rate. u
rtr ruly exercise moral force. what
ever ~ asti0n and whatever puDheltY
j. given - the reduction In interest," rate.
many swings Ranks presidents ana
'mrf oilers have intimated that their
grHa vail reduce rates beginning July !
I' fIH no impossible 10 ~ just Whion
T.. .I 10 this PRIOR N the pu1hca gloF
A" their .dvertIsemants because trustees
nov veto the Dnns " the president or
r"Er rHIIer. who have made up theif
H. H- reduce the rate
I.f the sake of the savings hanks VINO
a' In.Hls o. keep up tho higher rate,
-.Hs gOwer such a. the View YORK Gear
Ht House eHsroisea over ~ members
T -' boo brought tp hear Perhaps whole
n rrigriI1n by the larger swings m
-.-s is tho only remedy
a.If'- Nlr Cheney the men acheduAeo
..s. 20 fs-iay's meeting ere Pierre
d.. ..a urFsident n the Bank u ne Man
,a''.- mpany. and William FTederlck
I.h -H. reflrv u tho Mutual Life In
'.-t.." 0pmrany Mr. DiK's gibjeoi
= '" w"ory and pTactios of saving,
.aNs '- Htuoe