Norwich bulletin., 1913-12-30

sttuton Has High Grade Assets.
 Under a temporary restraining order issued by the bank commissioners of Connecticut, Fred P. Holt and Norris s. Lippitt and by authority given them through an act passed by the legisla- ture of 1913, Chapter 1S7 of the Pub lie Acts of this year, the Putnam Saw ings bank was closed at noon Monday and is restrained from paying out div idends or money or receiving deposits until further notice. The bank is to remain open, however, for the trans action of other business and it's officials retain the right Of reinvesting the funds of the bank, under the direction of the commissioners, so that the in stitution may go on producing earn ings in the largest possible degree.
 Due To One Cause.
 The banks difficulties are due to the depression of the bond market in which the greater part of the assets of railroad and municipal bonds and to no other cause.
 A Precautionary Act.
 The closing of the bank came as a surprise to the people of Putnam, but not as a shock In October last the bank reduced it's dividend rate by one half of one per cent This action was taken to safe guard the depositors' interests and followed a heavy series of withdrawals extending over a peri cd of several months. The action in making the slight reduction in the div dend rate caused a furry, though it was taken for the best interests of all concerned, and almost immediately following the announcement of the re- duction many more depOsitOrs sought to withdraw their funds, this result ing in further action by the bank to protect itself and requiring that de- pOSitorS give four months notice of in tent to withdraw their money. Hun dreds of these orders have since been filed and this fact, in view of the near approach of the eXpirat ton of the mo- tice time limit, is believed to have had some bearing in connection with the action taken by the bank commission CTS Monday: for if those who gave no tice to withdraw had been permitted to do so a heavy drain on the institu- tion's resources would have resulted as it would have been necessary to dis pose of securities that cannot be profit ably or even advantageously disposed of at this time.
 Bond Market May Improve.
 Indications are that the bank will be closed until the annual meeting of the corporatOrs, which comes on the third Monday of July, 1914. In the mean time there is an opportunity for the bond market to improve as there is also for the formulating plans for the reopening of the institution.
 May Pass A Dividend.
 People familiar with the condition of the institution declared Monday afternoon that, according to their best knowledge and judgment there will probably he no greater loss to the de- positors than would be represented by the passing of 2 dividend.
 Income Not Impaired
 Treasurer Jerome Tourtelotte. who has been with the bank in his present capacity since March l, 1880, a period of nearly 34 years, said Monday after noon that the action taken by the bank commissioners was due to the de- pression of the bond market, The in come Of the bank has not been at all impaired, he said, and the dividend for April, 1914, is already nearly earned. MT Tourtelotte was optimistic and ex- pressed the opinion that the banks troubles will be adjusted without any great loss to depositors.
 Would Not Scale Accounts.
 MT Teurtelette said that at a. meet ing of the trustees of the bank Mon day morning a proposition from the bank commissioners that the accounts be sealed 5 per cent was rejected; that the bank holds number of trust ac- counts representing a large sum of money and in the opinion Of the trus- tees it would not be proper to impair the principals ef these trust funds by scaling, but rather, in view Of the sit uatien. to take such small loss as may have to be met by passing a dividend if necessary.
 Bank Comm issieners at Conference.
 Bank Commissioners Holt and Lip pitt spent the greater part of the merning at the bank in conference with