Putnam patriot. [volume] (Putnam, Conn.) 1872-1962, 1915-04-23
PUTNAM SAVINGS
BANK
Monthly Meeting Of Trustees
Statement of Banks Condition


The monthly meeting of the board of
trustees of the Putnam Savings Bank
was held Monday afternoon. The re-
port of the treasurer showed crafty
ing progress toward eliminating the
deficit disclosed by the appraisal of
July End, 1914. This appraisal was
had presumably to prove the solvency
of the bank but showed an actual def.
cit mot including accrued earningsl of
approximately Sl12, 5l5,40. Basing the
value of the bonds in accordance with
the appraisal made by Ralph w. Cut
Ter, Ferdinand Richter and II. l..
Beadle July End, 1914, the condition of
the bank at the present time, with the
state tax paid and all expenses eharg-
ed of To date, is as follows:
The deposits of the bank are 81, 747,.
296 q and against these are held
Mortgage loans S244, 1000
Collateral loans 1921 Oh
Loans on pass books ll2,92o 81
Loans TO towns ia ,2u0,00
Railroad bonds Per value
of July 2, 1914, l,779, $1,000
Municipal bonds par value
S335,000. Market value
July ?, 1914, 83S, 525 90
Cash in banks 50,09I 80
Suspense or deficit SO, $50 OF
81, IA ,296 u
This shows that, taking the same
appraisal for the valuation of the
bonds, the deficit of July End,
1914, of approximately Sl12,5l5 40
has been reduced to deficit of
$50 ,5S0,01, q reduction of the deficit of
something over S72 200.
The earnings of the bank are normal
and if the bond market were rs strong
as 1t was year ago, the bank would
be warranted in reopening and could
pay out any necessary amount of
money which would be called for by
it's depositors.
But the trustees of the bank are con-
frorted with unusual conditions. Since
this appraisal there has occurred the
most disastrous war the world has ever
witnessed with the result that the
bond market of last July for time
was suspended. This bond market is
now slowly returning to satisfactory
basis and with peace in sight standard
bonds Will again come into their own.
The cash from the current income of
the bank is kept closely invested, a
good rate Of interest is obtained upon
It's deposits in other banks, and with a
reasonably favorable bond market The
bank will soon be upon a satisfactory
basis.
There is no mystery about the pres
ent condition Of the bank nor are there
any concealed assets or liabilities.
From the above it can readily be
seen that the application of the earn
ings to the reduction of the deficit for a
few months longer will result in elm
mating it altogether, provided that ut
that time the market for bonds has re-
turned to the level of July End, 1914,
when the appraisal was made; then
the trustees can authorize the sale of
such securities as are necessary TO meet
all cash demands, and the earnings
after that time can be used in the pay
ment of dividends.
The bank now approaches very near
ly to solvent condition and could
liquidate with very slight loss TO de.
positors, even, upon the present mar
ket. The trustees hope that the condi-
lions will continue TO improve and the
bend market will gradually grow
stronger, so that in the com paratively
near future the bank will be able TO re-
sumo business on q normal basis.