Norwich bulletin., 1914-04-28


 State Bank Commissioner Fred P. Holt was in Putnam Monday and dur ing his stay here had interviews with persons connected with the Putnam Savings bank, which was closed late in December under a restraining or der issued by the bank commissioners and has since refrained from paying out or receiving money for deposit, thouc' the institution has been allow ed to do other business. Among the persons Commissioner Holt interview ed was the savings bank president, John M. Paine of Woodstock. When seen just as he was about to leave Putnam for Hartford on the af- ternoon express. Commissioner Holt seemed pleased with the condition of the bank at this time and stated that his errand here and previous negotia- sons connected with the bank was toward the end of making arrange ments for the bank to reopen. Before this privilege will be grant ed by the bank commissioners. how ever, there must be some changes in the management of the local institu- tion, Commissioner Holt said. The past policy of the institution in invest ing such great percentage of it's de- posits in bonds and such a small per centage of deposits in other securi- ties. such as real estate loans. for in
 
 of policy is not likely to be brought about under. the present dominating factor in the management of the bank seems to be the opinion of Commis sioner Holt and this appears to be the reason why the reopening of the bank | is being delayed.
 There is no reason why the bank should not be allowed to open on May 1 1 or at any time thereafter" said Com !, missioner Holt. ''if the changes sought ! | the bank will not be allowed to open until July and maybe not until later" Want Treasurer to Resign. 1 Partieularizing, Commissioner Holt | specified that the resignation of Treas at the head of the institution for many | years, was sought by the bank com | missioners, but was not forthcoming { There was nothing said by the com missioner to indicate that MT. Tour 1 telOtteS resignation was sought by l the bank commissioners on any other | grounds than that they do not ap- | prove of his investment policy. MT ! Tourtelotte has been at all times ar | honest trustworthy official. honered as he still is. by all who know him | There have been many. however who have disagreed with the banks policy ! of having such a large percentage oi 1 its deposits in bonds.
 Insists on Changes. | Commissioner Holt did not give out | what his talk with President Paine was | about but said he found him a very cordial man. MT Holt said he has had l conferences with other officials of the | bank during the present month, but 1 these had up to Monday been fruitlesS as to bringing about the changes thai | Commissioner Holt has suggested aS l necessary to secure a release of the , restraining order in effect at the banl l since December.
 1 Commissioner Holt said very plain | lv that if these changes can be mad, | there will be no delay in issuing th' order that will allow the bank to re sume business in full.
 Commissioner Holts willingness t be quoted was wide open as to the req sons why the bank is being kep positors. representing all of the com munities in eastern Connecticut ar interested The closing of the banl has been a hardship to many of them as they never felt any great degree O apprehension, however, and the an nouncement that the institution is nov in such good condition as to be read to open under the terms outlined b, Commissioner Holt will be might pleasant news to them.
 Result of Bond Depreciation.
 The depreciation of the market valu of the bonds held by the bank, whicl has deposits of approximately s2,S0o, GOO. was the reason for the temporar closing of the institution.