New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-27
WANTS LOWER INTEREST
Cheney Warns Savings Banks
Men at State Body's Meeting.
SURPLUS DECREASE REASON
superintendent Says Desire for
Deposits Should Not Blind
Trustees to the Facts.

O. H Cheney. State Superintendent of
Banks. at the annual meeting of the Saw
ings Bank Association of the State of New
YORK yesterday at the Chamber of Com
merce advocated concerted action on the
part of the trustees of all savings institu-
tions in the state in lowering the interest
rade from per cent, in view of present
investment conditions.
At the business session. which preceded
the speaking, a resolution opposing the
proposed income tax amendment to the
federal Constitution was adopted officers
for the coming year were elected as fol-
lows: President. Charles E Hanaman
president of the Troy Savings Bank. sue
ceeding Thomas M. Mulry; first vice-presi-
dent, Walter Trimble. president of the
Bank for Savings; second vice-president,
William Felsinger. president of the New
York Savings Bank; third vice-president.
Robert S. Donaldson. president of the Erie
County Savings Bank: secretary, Frederick
b Stevens, treasurer of the National Saw
ings Bank Of Albany: treasurer. Samuel B.
Styles. president of the North River Saw
ings Bank. Executive committee. to serve
three years, William J. Coombs, president
of the South Brooklyn Savings Institution;
Charles E. Sprague. president of the Union
Dime Savings Bank; David Hoyt. secretary
of the Monroe County Savings Bank. To
serve one year, Casimir Tag.
The new president Mr.. Hanaman, spoke
briefly of the growing tendency among the
savings banks TO attract deposits by Civ
ing a high rate of interest rather than by
building up their surplus, and introduced
Superintendent Cheney as the first speaker.
Mr.. Cheney said, in part
The large gain in savings, bank deposits
during the year 1909 has been called to
your attention and l need not dwell upon
that marvellous growth. AT the same time
the amount of interest paid depositors was
SO great that the ratio of surplus to de-
posts decreased more than one-third OF
l per cent.
For the last twenty years there has been
an annual decrease in the savings bank
surplus. that to-day the percentage is
less than one-half of what it was in 1890.
While this condition has not heretofore
proved disturbing. I personally am CON
WINGED that the time has now arrived when
steps should be taken to prevent further
reduction.
1t is my opinion that under present con-
ditions only q limited number of our saw
ings banks are in a position warrantlng
continuance of the 4 per cent rate. Yet.
even If I were trustee of one of these
institutions with sufficient surplus | would
consider IL my duty to the individual de-
positors Of my bank to help strengthen me
whole savings bank system by voting TO
reduce the prevailing rate for time al
least Pride in ones own institution or a
desire to get some one else's deposits should
blind no one to the conditions which at
present exist
Pierre Jay. vice-president of the Bank
of the Manhattan Company and formerly
Bank Commissioner of Massachusetts, took
as his topic. Savings Bank Extensions.
The present savings bank system. in the
opinion of the speaker, is "a little rigid
and in1exible.'' not expanding with the
expanding country and not reaching out
into all communities of substantial size.
William F. Dix. secretary of the Mutual
Life Insurance Company, the last speaker
discussed the subject Of The Theory ana
Practice of Savings Bank Insurance.