New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-19
LOWER INTEREST URGED
1roy Savings Bank President
Saws 4 Per Cent Is Too Much.
SURPLUS ANOTHER PROBLEM
Marcus T. Hun, of Albany, and
O. H. Cheney Both Think 1t
Should Be Increased.

Should Be Increased.
=. che annual meeting in this city yes
=. ~ the New York State Savings
- Association the discussion covered
80 topics-the proper amount OF surplus
..,ich the institutions should maintain ana
-. rate Of interest which should be PAID
.,ncsits The Grady bill now before the
,.sislsture. came IN for good deal oil
.,,,,ent and approval Of certain OF It's
ss..rres was expressed by number OF the
..tsrs. although It was not Endorsed as
whole 100. ~,
49,. ,rssident. Charles F. Hanaman. presi-
~ the Troy Savings Bank. who in his
-.,,,al address urged the strengthening OF
-. surplus funds of the institutions ana
.-,,,cised sharply the policy Of some OF
-. hanks in continuing TO pay per cent
ICES, the demand for this high rate
.o-,nr from comparatively rich depositors
- not from the poor, whose primary re-
-,,,r.n,ents was the unquestioned security
=, heir principal Mr. Hanaman said in
part.
-
II. ,Se assets shall he kept In invested
t,, and where there Is no capital or
..acthoiders' liability. margin or saiety
;. vD,arsntee fund built Up from portion
~ Inc earnings IS necessity. LOT mere Is
o. n.,er source from which protection can
=. Looked for 20 Offset any depreciation that
-. :, CNciir in the cash value Of those assets:
a~5 n was this fact that the trainers OF
- ~ undoubtedly had IN mind when they
s.,roos,cd the accumulation Of a surplus
s'sb they directed the trustees 70 hold
', meet any contingency or loss In its bust
,ess from the depreciation Of securities or
o'Ie' @syiJently did not occur to our law
-atsrs that the time would come when
cc-1r1ercialism would compete with pniian-
,brorv for the possession OF our lnsutu-
49, and security stand in danger OF be-
~. icsr sight OF in a desire for "a large la
me- snd that a mistaken generosity
,o~S develop 20 a point where the surplus
voud face the risk OF being eaten up oy
80 interest" paid 10 Cepositors
We hear it said by the exponents OF
,sv these high rates? We have earned
.%s,, and the earnings belong TO the de
rost,ors. and il is only right that we sho'lo
give this money 20 them.
The rrv for higher interest rates does not
cove from the legitimate depositor. but
from the investor and Spectator VINO 5
..,rr derosltor only for the sake OF the
i.o,,c thst your mistaken generosity Is
gi,ing him at the expense ana risk OF the
fru-al Troy who desire 10 use your institu-
ffon properly. that is 10 say 10Y the &C
c~-,,,iatior and safekeepinC OF their haTd-
earned savings. and no one. rich or poor
s5ou1 have enough money A. AIRY tlIne IN
a savings bank Cor the income 70 be an
object.
Marcus # Hun. president Of the Albany
|. Savings Bank offered the following reso-
luton. which was carried:
Resolved. That the committee which has
been requested 70 report legislation oe re-
Cuested 20 incorporate ~ mat leglslatlon
some provision which will be adequate 10
provide FOR a proper increase in the surplus
o. the savings banks Of this state.
o. n. Cheney the outgoing superintend-
ent Z Banks. who was called upon for an
address. said that If 70 were proper TO pref
ace his remarks with text he might say:
we are here to-day and zone tomorrow.
Nr Cheney urged the upbuiding Of the
surplus q the hanks. saying;
]; seems 20 me that il would be very
feasible % require that q savings bank
having market value surplus OF TO 10
TeT cent lay aside al each dividend period
Ter cent Of its net profits and that one
hayrs market value surplus Of less than
: 1sr cent lay aside 10 per cent of its net
profits II that had been done. the year
lNa would have increased the SURPRISES 2b
We should be getting somewhere.
The association adopted this resolution.
offered ty Andrew Mills. president Of the
D-y Dock Savings institutions
Resolved That the Savings Bank Associa-
ton n the state OF New York favor the
establishment 81 a minimum surplus bv
legislation. and. Resolved. That the counsel
ior the association be instructed 70 en1bOdv
N ne form - bills such suggestions az
NAY 10 made for carrying into effect the
'oregcing resolution and submit them 20 a
SPECIAL meeting Of the association.
Tie Grady Bill was described by Charles
a Miller. counsel Tor the association. and
general discussion OF e. followed This
measure Increases from Is 20 % per cent
\ ne amount Of surplus which a bank NAV
accumulate. and fixes maximum rates Of
Interest. regulated by the amount ~ the
surplus. u also alters the present law by
rovidlng that two reserve funds be kept
" Of per cent. OF which one-halt shall
- held IN tie banks vaults The effect O,
MS requirement M Miller pointed out
would he that the savings banks Of the
state would have 20 hold about SIS. 600 900
ole IN their vaults instead OF about 5000
" as al present resolution was offered
ana carried that the association oppose the
VA IN rs present form. and urge that no
action be taken upon il az the current ses-
son o. the legislature owing 20 the fact
maj TIE session is TOO Far advanced 10 per
MT Of deliberate action
Frank 81 Hurlbut president Of the Union
square Savings Bank. was elected treas
u'a OF the association. 20 succeed Samuel
Stiles who died President Hanaman
eAa other officers were reelected. IN
eaoing vice-presidents. Walter Trimble
PRESIDENT Of the Bank FOR Savings. William
sesingtr. president of the New York Saw
me- Bank. and Robert 8 Donaldson. presi-
cent q the Erie County Savings Bank,
Sshalo. secretary Frederick p Stevens.
Troy.
members o. the association are planning
celebrate IN 1915 tho establishment OF the
Isi savings banks in the United States
ne association went into executive ses-
~n N the afternoon 10 discuss further
e Grady bill. hut at this secret session.
'~cA vas an innovation. nobody volun-
~ any remarks on the subject and a
: >s'eeay adjournment was taken.