Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-17
[specIal 70 the Newark star.l

lllG4N IO1s GU TN ~
report just submitted to Governor John
Franklin Fort, Commissioners of Bank
ing and Insurance Vivian M. Lewis
shows plainly that he does not APP
prove of the plan of some of the bank
ing institutions of the State in offer
ing too high rate of interest on bank
deposits. He predicts that sooner or
later the plan. unless changed, VIII
affect the stability of those
which are paying high rate of interest
and recommends reform in paying in
terest on deposits.
The report shows that the total re-
sources of the combined banking IN
stitutions in the State show an increase
over 1908 of $50, 141, 765, the total re-
sources of the banks at the close OIL
business on November l6 last peihs
s5S5, SS7, 205. The deposits for the same
period amounted to $439, 1881 or an
increase of $4S, 925, 0S5. These hgures
are taken from the reports received at
the department made by the state
banks, trust companies n savings
banks, together with the national
banks at the close of business on mo-
vember Is last, the figures FOR the ma
tional banks being taken from the re-
port of the comptroller of the currency.
The resources of the savings BANKS
as shown by reports made at the close
of business on December 81, were Sloo'-
1856. $50, with deposits TO $685.
939. SOL. The report also shows the re-
sources of the trust companies 10 pe
$500. 4S0. 917 and deposits $l6S,lo 'SSo. Inc
resources of the State banks amounted
- 40 AAa nnf ~ IAAnatfG M I u n -
Thu resources of the national banks
were S237. s34, 946 and deposits amount
ing to s156. 5Ss, 235. The latter figures
show the condition OF the hationa'
banks on November II last.
THE report will be of unusual inn
nortance to the banking institutions,
inasmucb as II contains for the first
time in the history of the department.
tables showing increases and decreases
over the previous year in the MANY
items contained in the report
commissioners Views.
Tn discussing the paying of too hish
rate of interest on bank deposits, the
commissioner says:
..The by the anu
trust ompanies in certain sections Oh
the state of unduly high rates OF m
terest on deposits is a practise ina.
needs reforming. The present maxi
mum rate of 4 pee cent. is excessive
and places too heavy a burden upon
the earnings of the institutions gen
orally. and if maintained VIII teho "
lessen their stability. one Danger u
such a policy is that the ofnclais may
be tempted to depart from their CON
servative methods and endeavor 10 IN
- 1AA ~ az In
crease earnings by making loans or m
vestments promising xtraoroinal
profits. but involving q large clement
of hazard. .
1.-THE situation has been prousn'
about by competition among the an.
ferent institutions for ana ~
develops upon their managers 10 ap-
plv The remedy before serious trouoie
arises. They should get together ana
take concerted action to reduce .he
rate in their COMMON interest.
The condition of the savings banks
on December 81 is set forth in table a,
hereto appended. showing now the 'o'ai
resources of sos, 1S5, $50 are distributed.
i5thar statistical information regarding
savings banks shows that last year
there we're 294, 106 depositors or open ac-
counts. an increase of 1888 over the
nIeceQlnR veal.
of each account was $339.s1, an Increase
OF ss.62. The number of accounts
opened or reopened during the year was
IN 5o7. an increase of 4,904. The number
of accounts closed during the year was
4o.6s7. a decrease of 3,464. The amount
deposited during the year, not including
interest credited, was $40, SIS, 935, an in
crease of 4.S10, $50. The amount with
drawn during the year was $37, 1898, 9s9,
81 decrease of 1896, 1896. The interest
credited during the year was $3,S5s,6e9
an increase of $165, 314. The salaries
Maid for the year were 1905, 440, an in
crease of So, 10s. Other current expenses
for the wear amounted to s165, 929, an in
crease of $40, ISL. Commenting upon the
situation shown by the foregoing fig
ures, Commissioner Lewis says;
Marked Improvement shown.
with normal financial n business
conditions prevailing throughout the
past year, the returns of the savings
banks exhibit a marked Improvement
over the figures for 1908. The gam IN
deposits, which now aggregates sllgntly
less than 500, 900, 900, was $6,012,lOs, con-
trasted with an increase of but sbS9,9o9
in the latter year In the number OF
depositors or open accounts there was
a gain Of 1898, as against 1,4o2 IN lsoS'
The amount deposited, excluding inter-
est credited, exceeded by $2,n6,sS6, the
amount withdrawn, while in the pre-
ceding year there was an excess OF
withdrawals of 81, 49O, 4S0. The aggre-
gate surplus reported, namely, T,92s,-
$50, is within a fraction of 8 per cent.
of the total deposits held.
*. ---- IL Of ~ n n q