The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-05-25
SAVINGS, IPVU CENT. OUS l-SY
SAVINGS BANK MEETING HERE
GOING 10 RE INTERESTING.

aupsrlntens'ent q naaks EIaa AdvlseSi
I.sWsFin9 the nate Aad ssme - the
Danks NFF fog 1t others vim large
aarplaaea See Ne = asaa 10 Asssat.
More representatives, Of the savings
banks of this State than ordinarily attend
an annual meeting Of the Savings Bank
Association Of che State Of New York are
expected AZ the 1910 meeting. which will
b. held In the Chamber % Commerce. to-
morrow The meeting will also be Of
greater interest than any other Of recent
years TO the .Ssi 30 dspOaitOrs. for whom
the savings banks Of this State held On
January l last a total Of o. tss.tls tsi;
for the principal matter Of discussion.
according 10 the talk IN savings banks IN
this city yesterday. will be whether ~
not the interest rate shall be cut from the
generally prevailing rate Of per cent.
20 81 per osnt. or below.
OTin n. Cheney, stats Superintendent
~ nauAAs VIII w Vuu ~ Nho FsNuNiF@a
speakers In HE annual report 70 tho
Legislature Mr.. Cheney said u was mo
secret thai even among the institutions
nov paying Z psr cent. interest the con-
victiOn obtains that this rate cannot
wisely obtain much longer Many 81
these institutions. he added. would wei
cOme a return 10 81 per cent. basis 70
the precedent could IL established. IN
this intimation of his opinions Mr.. Cheney
followed a suggestion made by his prede-
ceasoT. Clark Williams. in the latter's
1909 report 90 tho Legislature. On that
account Representatives Of some % the
oldest and strongest savings hanks Of
the city Apprehend an endeavOr 90 secure
from the state organization the rec0m-
mendation u q lower interest rate
Bankers who oppose q reduction say
that while the cost Of living has increased
and IN increasing the State should not
compel depJsitOrs 10 Accept . smaller
return from their savings deposited and
invested in state institutions. They adj
nit the contention that . lower rate would
he advisable for aoms institutions whose
surplus 10 lower than IL custOmarily con-
sideTsd to warrant In good banking the
payment Of q par cent. rate. but insist
that no ruls decreasing the interest rate
should apply % tho-s institutions
AbundAntly willing 10 pay per cont.
or more and still show ample protection
for every disposition.
Fhs section 81 the lAW relating 10 the
payment u interest reads a. follows
Ths trusfees Of every such corporation
shah regulate the rate Of Interest OF divi-
dends. not 70 exceed s per cent. upon the
deposits 10 surh manner that depOsitors
shall Feceive ~ nearly ~ may b. all tho
profits Of such corporation after necessary
expenses and providing In a manner sp-
proved by the Superintendent Of Ranks
f5r the amOftIyatiOr Or gradual eXtinCtisn
~ preminms or discounts on ~ secuFities
owned By such corporation % o. 10 bring
them TO par at maturity aud reserving sitch
amounts a. mo trustees may deem eNDedient
~ a surplus fund for the security Of the
depOutor-. whirh 10 the amount Of Is per
cent Of ~ deposits the trustees nav aradu-
ally accumulafe and hold 70 mest any ron
iinEency Or loss In ~ business from The
some o. he institutions which have a
relatively large surplus contend that Il
would 10 an injustice 10 their deposit0rs
10 deprive them Of the results accrlIing
from prudent and careful management.
Deposits have besn left with them. they
say. on the understanding that per cent
interest will he paid. aud they consider
IL unjust that hanks abundantly able 20
pay q high rate should be obliged 20 dis
appoint and injure their customers
The position Of the bankers who favor
a general reduction in the rate as gen
orally stated yesterday IL that anything
except a uniform rate of interest would
throw the entire business into confusion
by prsoipiiating transfer u deposits from
the low rate hanks 10 the high rate hanks.
With various hanks declaring various
rates Of interest. Il was maintained. none
Of them could feel secure against a run
At any VI the times when the semi annual
interest IL declared.
To this contention the retOFt from che |
was that depOsitOrs ordinarily |
examined or should examine. the surplus
and resources Of bank before making |
their deposits and need not 90 TO q bank !
that cannot afford 20 pay Z per cent |
Furthermore II was asserted that no bank |
paying a higher rate Of interest than any
other would bod for the others deposits. /
for the simple reason that q considerable l
increase Of deposits would speedily de-
crease the banks ratio Of surplus 10 de- !
posts. Other arguments in detail on !
both sides Of the question were In course |
Of preparation yesterday and all indi-
cations pointed 20 one Of the liveliest and |
most important meetings in the history |