New-York tribune., 1910-01-14
BANKS GOOD YEAR
REPORT By CHENEY.
snnerintendent Sees E1dence
oe Gro7cing Conservatism.

ana III
i-,--s,,s growth and prosperity is pointed
y y cheney. state Superintendent
,,s IN his annual report TO the Legs
ssv Even greater cause Tor
.4,,Istion is found in the evidence
-..-,,s-a apuarent of growing conserv-
-, states banking institutions
- ..,,ss-,-atisrrl.'' the superintendent
,,oo5s not only from clearer
p. ,..,sior of the privileges or sound
s-.yy, from the experience OF the
o,rs hui also from a sricter
-r.t,-, Of the spirit of cur banking
~ awakening sense OF the nm
~ the trust assumed oy the dl-
..o-s ~ financial institutions
~, ,,,nion OF superintendent theheS
,arttne law requires only slight reVi-
.ton ar amendment in substantive hlatoeiS
>. ,ro,-ide for the segregation OF SAVINGS
ss-,,s sron, commercial deposits in banks
- ,r,,s- cornpanies; authorization OF state
,a,,s y, issue time certificates OF deposh
.,,9 ,bo revision OF the laws relative 10
ss--tr,cs ana loan associations Ahlpli"ca-
zion of details Of the law relating 10 the
,io,ida-ion Of institutions oy the depart
,ns,, for its clarltcation in certain par
-icr1lars is also recommended
INTEREST DEPARTMENTS
Notwithstanding the provision OF law
rbiob prohibits all banking institutions,
. cent savings banks. from using the word
...avinrs'' in their business, or from solicit
i-s~ or receiving deposits as savings banks,
s,,narinreudeut Cheney says there has been
3 growing tendency on the part OF COM
y,erciaI banks and trust companies 10
create interest departments and say
en- derartnents' and II advertise that
75ev viii receive IN those departments de-
rosite Of from one dollar up, issuing there
far usssbooks similar TO those used by
savings banks. and in many cases assIr-
,rr the depositors IN such departments
,-a+ +beir funds are receiving the same
rare as they would receive If deposited
n savings banks.
..--l,a state Of New York having deemed
., necessary and proper 20 provide ample
protection for the savings or us HIsd4
roor when deposited in savings oanAs'
saws the report. 1T IS certainly neither con-
sisteut nor right 10 permit other lhstl'u-
-iors chartered by the state 10 soiCll a44N
receive similar deposits without requiring
that such deposits shall be gwen IKE pro-
lection"
The superintendent recommends tlaI
hanks and trust companies establishing or
MAINTAINING 1lLcE6SL VI Sc ---S'
rp,4,1ts fo- the benefit Of the provident ana
frugal poor be required 10 invest the depos-
fte IN such departments in accordance with
The laws governing the investment Of saw
;ngs bank funds.
Inasrnuch as the law gives trust conlpa-
mes the right 70 issue time certificates OF
deposit and does not require them TO carry
4 reserve against the sums represented by
certificates not payable within thirty days,
Superintendent Cheney recommends that
70 avoid discrimination state banks be per-
ritted 10 issue tine certificates Of deposit,
provided no such certificate shall be issued
except as representing money actually on
deposit.
ORGANIZE UNDER FIVE LAWS.
The superintendent calls attention TO the
facl that the building and loan and CO.
1Dszative savings and loan associations IN
tais state We're organized under no fewer
-han i've CIf~ergTrr" Tsws, and suggests
general revision and codifcation OF these
statutes. He suggests that the loaning ter
rit0ry OF all such associations should be
restricted, the amount of premium charged
should be- limited by law and that greater
expedition be required IL the payment Of
Withdrawals
Believing mat the principle Of taxing
hanks savings banks, trust companies and
oJler institutions for the expenses OF the
banking department is III advised and in
defensible,-' the superintendent suggests
that since primarily state supervision over
these institutions is for the benefit and
pI election Of the public the state should
provide for the department. support from
It's general revenue funds. The depart
rnents expenses for the last fiscal year
"a. .s.1- 800
preceding year.
The resources OF the savings banks in
the state increased upward OF 81, ,O00, 900
from July 1908, 10 July, 1903: these Of the
trust companies SSlSG10.0G0 from August,
Is)s, TO September, 1909 and those Of the
state banks OF deposit and discount nearly
- s1a,e}9 in the latter period The increase
n resources OF all the institutions under
TIE supervision Of the Banking Department
shown during the fiscal year was S4S5. coo 600.
STATE INSTITUTIONS PROSPER.
During the year" says the report,
there has been a betterment in the actual
condition Of state institutions as a whole.
rs regards both the quality Of their assets
and thei~ readiness, generally. 70 respond
to The efforts OF the department 70 secure
cue obs zrvance OF all restrictions of the
N-t-1----e io1ff a hrcIltE dppL-CidLtOu u lilS
aaugers incident 10 the practice of bidding
FOR deposits by Offering excessive rates of
1rterss- has also been apparent. The av-
erage reader OF rie published statements
~ banking institutions usually notes the
gain IN resources, and disregarding the In
ecitable Increase in Liabilities. believes that
tEe aains represent profits. However much
bankers might wish that this belief were
Justified. .ae fact is that the dividend dis
'riburiou Of earnings Of the state banks
curing rhe twelve months ending with June
last were about q ,e90 900, an amount less
'Lau . per cent on their combined capital
and surplus. After payment of these divi-
oencs there was. however. an increase in
TIE aggregate surplus Of these institutions
approEimarng s.. 000,0 geo, attributable 10
ne apprec alton IN value Of the securities
owned rather than to banking earnings.
THE reports of the trust companies for
TIE calendar year Of 1908 place their gross
earnings ~ s67.I10,02S. with expenses ag-
gregating So. 1888. The amount OF
diriconos declared WAS Sill zoo, 600, or
about AZ per cent on their combined cap
iial and surplus"
The z9I state banks Of deposit and dis
count reported IN September last that their
toial resources showed 4 gain Of SO 000, 900
ever tie previous nigh record The ag-
gfegare surplus and undivided profits oi
fes= Institutions" says the report, SHOW
the handsome increase OF SO, 000 600 for the
FeaE- making this item stand az to capital
i-zi 70 T. while in 1903 the ratio was only