Putnam patriot., 1914-01-02
PUTNAM SAVINGS BANK CLOSED
 TEMPORARILY BY BANK COMMISSIONERS
Trouble Due Wholly Depreciation of dope Open for Business in h
 posors Assured Their Money SaCan Borrow Deposit Books

pep0SllOrS ASSuItu IHtfI MUney fS
 The Putnam Savings Bank temporal rily suspended business Monday under restraining order issued by the bank commissioners restraining the bank from paying dividends or receiving de- posits or paying out money to deposi- tors. The measure is a precautionary one due wholly to the depressed condi- tion of the market which so depreciates the bonds held by the bank as to tem- porarily impair the banks finances. The step was taken as a precautionary measure to protect the depositors. As surances from the commissioners and the bank officials have been given out to the effect that depositors will lose none of their principal, and it is hoped that no further loss than one quarters dividend will be sustained. There was no excitement occasioned by the banks closing as it was realized that some- thing of the kind might occur and there seems to be a feeling of conf. denee that everything will come out right and that the step was for the best -est of all concerned. It is hoped
 gre will be a change in the mar
 that by the time of the annual
 { in July the situation will be
 le to allow the bank to resume
 the October dividend was de-
 was upon 12 per cent ba-
 before it hsd always been 4
 This caused number of de-
 make withdrawals and soon
 yave notice .that they would
 itage of clause in the by. .7,-ve raN ring four months notice before ing out money. This brought a larger number of depositors to the bank to give the required notice Many others however had full confidence in the stability of the institutionland not needing money for present needs did not give such notice. If the suspen- sion of payments had not been made, at the end of the four months, period the bank would hove been forced to sell some ot it's holdings at loss, ow- ing to the condition of the market, to meet these obligations, Tine scommis- sioners felt that it wss not fair to the depositors who did not wish to with draw their deposits that this should be allowed to occur so, in the interest of all depositors, they issued the re- straining order.
 That the commissioners have full faith in the stability of the bank is borne out by the fact that they have issued notice to other banks that it will be perfectly safe to loan from so to 20 per cent upon books of depositors in the Putnam Savings Bank. The books ana accounts were found absolutely all right and in this respect the institu- tion is perfect. The administration ex- pense of the bank will be curtailed during such period as it remains closed, but in the meantime the funds of the bank will be invested and rein. vested as occasion requires. While the market value of the large amount of bonds held is depreciated temporarily, they nevertheless continue to bear the regular rate of interest and the earning capacity of the bank is not impaired. At the annual meeting there will no doubt be some sort of a reorganization, among the suggestions. from the com- missioners being the addition of three more trustees making a total of twelve instead of nine as heretofore.
 The statements given out by the bank commissioners and the bank offi- cials are all of nature assuring the depositors that they will suffer no loss of principal on deposit and can be con- fidently relied upon. There will be no litigation, or receivers, or anything of that sort, but Is-Aely temporary sus- -.A.--4ss.i of buSlsess untli sSasSime as the commissioners believe Che situa~ tion has SO far recovered it's normal as- pect as to warrant them in allowing the bank to reopen, which, as already stated, it is hoped will be by the time of the annual meeting in July.
 In an interview with the com mis- sioners Fred P. Holt and Norris $. Lip pit on Monday afternoon they stated that the bank had been closed tempo rarily in the interests of the depositors. The assets of the bank are greatly de- preciated owing to the condition ot the market. No depositor will lose pen ny of his principal and they are to no. tify other state banks that it will be safe to loan on books of depositors in the bank up to 80 or 90 percent of the amount of deposit. The commissioners found everything in an orderly, sys- tematie shape in the institution. They hoped that within six months the bank wonld again open for business as usual with possibly some changes in the organization. They said the de- posits of the 729l depositors amounted . sxiaasssIy rs. 'ee, 900. The as sets of the bank eonsisteco , la'',oau hanas of salo5, 900, municipafsonds of ss5o ooo and only s267, 900 real estate ,nor,aages. The commissioners ssnu- mated that they did not consider II wou,d be fair to allow the depositofS ,.n,, ha ad given the four months notice
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