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SAYS a wit: "Last year I saw a watch spring, a note run, a rope walk, a horse fly, and even big trees leave. I even saw a plank walk, and a Third avenue bank run; but the other day I saw a tree box, a catfish, and a stone fence. I am prepared to see the Atlantie coast and the Pacific slope."
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THE SAVINGS BANK FAILURE. AND EXTENT OF THE EMBARRAS MENTS. DOORS CLOSED-WORK OF THE RECEIVERSTATEMENT NEXT WEEK-THE REAL ESTATE THE BANK-FIFTY OR SIXTY PER CENT FOR I POSITORS EXPECTED--CONFIDENCE IN OTH BANKS NOT IMPAIRED-VIEWS OF BANK OF CIALS. The assets and property of the Third Aven Bank were placed in charge of William S. C Receiver, yesterday morning, under an or by Justice A. M. Osborn of the Supreme Cop Albany. The doors were not opened, and the Receive busy all day preparing a statement of assets a bilities for the information of depositors. A notice words following was posted on the front doo closed pursuant to an order of the Supreme Cou on an application of the Attorney-General, request of the Superintendent of the Banking rtment." Twelve to fifteen persons stood around attracted apparently by euriosity. Very few were among them. and there was no exciteme disturbance. reporter of THE TRIBUNE was informed by the that his statement of the bank's affairs would for the public early next week. He declined to f any details at present, but stated that the offic bank were obliged to wind up the business in or all the depositors might be treated fairly. 1 he said, was incumbered with real estate taken which it had been found impossible to dispose great sacrifice. A run would have compel trustees to sell their available securities to pay positors demanding their money, and the result wor been that the few would have been benefited expense of the many. The bank had made a go in 1872, and the trustees had given their individ to the amount of $115,000 to protect the deposit the loss occasioned by the forced sale of securit the run in that year. The bank had not earn money this year, and could not have paid a sal dividend on the 1st of January. Desirous fairly with all the depositors in the distributi the assets, the trustees had decided to go into liquid and had given notice to the Superintendent of 1 Department of their determination for his et eration and approval. After carefully-considering of the bank, the Superintendent h quested the Attorney-General to institute P for the appointment of a receiv Court had granted the application, a property of the bank would be disposed of for t of the depositors as fast ns it could be done wi to all. The amount to be realized would depe much on circumstances, and even an approxim: imate could not be given. the annual report of the Superintendent of the Bar Department for the year 1873, made to the Legis March 1. 1874, shows that the books and affairs bank were examined April 14, 1873, by Geor Reid. William F. Aldrich, and Isane H. Vr Their report showed a deficiency to meet liabilities of $5,735 01. Amo assets were mentioned Kansas State bon 75,000; Louisiana State bonds (levee), $100,00 State bonds. $50.000; Alabama State bon Virginia State bonds and coupons, $3,500; I East Broadway, and Battery Ra Iroad bon The market value of these, however, was et erably lower than the par value. The real esta has been carried by the bank is stated in ti to consist of 92 acres of land at Tarrytown, valu $138,000; five houseson East Forty-sixth-st.,839, at Fifth-ave., Eighty-fifth, and Eighty-sixth-si house, East Forty-seventh-st., $34,000, a No. 36 East Forty-nin b-st., $28,500. In additi the banking-house and adjoining property. bt the bank was prosperous and bad deposits exce $6,000,000. were valued at $200,000. was stated yesterday by a gentleman familiar w property, that it is for the interest of the deposite delay the sale as long as possible. If forced upon 1 at an early day, it is believed that the amou will not exceed one-half the original cost of I official statement shows that the bank was ine rated.in 1854, and began business at Broadway a -second-st. It has had an exceptionsi history. uble, it is well known. originated in a misappropr of its funds years ago, and continued bickerings agreements among the trustees. growing out of str control. It 18 believed by those acquainted with 1 of the securities of the bank turned over to 1 eiver, that in the present depression of business a in values, the depositors may expect to recei 50 to 60 cents on the dollar for their claims. MMENTS OF SAVINGS BANK OFFICERS GENERALI teporters of THE TRIBUNE called yesterday upon 1 of the Security, People's, German, and Manh Savings Banks, the Institution for the Savings rebants Clerks, the Bank for Savings, on Bleeckerother institutions, and conversed with them as failure. They were unanimous in the opinion t) effects would follow beyond the local trouble a of the depositors in the broken bank. The et of the bank. it was stated, had been known for time among bank officials, and measures ha taken by other banks to avert any troul the failure. There was no excitement in the neig and sound banking institutions still had 1 ifidence of the people. The action of the trustees suspended bank in sacrificing securities to meet was commented on unfavorably, and IT was claim it would have been wiser to have closed the doors time than to have attempted to go on with crippl in the face of such persistent opposition. the East River Savings Bank, at No. 3 Chambers-s opinion was expressed that the suspension of t Avenue Bank would have little or no effect eith other banks or on public conddence, as its weak eo had been well known for some time. Its office not prudent in selling securities at & loss
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GENERAL NEWS. DAYTON, Sept. 30.-There were fifteen thousand attending the Southern Ohio fair. One hundred outlaws mostly from the States are in jail here waiting trial at the term of the court. NEW YORK, Sept. 30.-The Board of Directors of the Northern Pacific Railroad today elected Chas. B. Wright of Philadelphia President and George Stark of New Hampshire Vice President. Crowds gathered in front of the Third Avenus' Bank, but dispersed upon notice that the bank was closed pursuant to an order granted by the Supreme Court. BOSTON, Sept. 30. - Lee & Shepard propose to pay twenty cents on the dollar. Their liabilities are over $500,000. MONTREAL, Sept. 30.-The suit brought by the Canadian Institute against the St. Sulpice Cemetery for $2000 in the Guibord case, was dismissed, the two parties dividing the costs. Philadelphia, Sept. 30.-A bateau, containing Goddard Heiss, of Camden, Wm. Randon, of this city, and a child aged four years, name unknown, was run down by the sloop Henrietta, Capt. Goodin, in the Delaware, near Philadelphia. Mr. Randon and the child were drowned. Mr. Heiss clung to the anchor cable, and thus saved himself. INDIANAPOLIS, Sept. 30.-Wm. S. Wood, President of the Greenfield Manufacturing Company, of Greenfield, Ind., committed suicide to-day. Cause financial troubles. He had his life heavily insured. Left a letter stating he had forged a relative's name for $5000.
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ANOTHER BANK SCARE. Considerable excitement was caused in business circles yesterday by a report that the German Uptown Savings Bank, at the corner of Fifty-fifth street and Third avenue, had suspended payments, and that other banks in that vicinity were also in great difficulty, caused by "runs" made by heir-depositors, A tour made by a HERALD reporter among the institutions referred to, proved that the reports were almost enbank reported to have suspended, said:-"The failure of tirely without foundation. Mr. Schwartz, President of the the Third Avenue Bank affected us, as it did all other savings institutions in this part of the city. On Friday, the very day after its doors were closed, our depositors became frightened and drew out $28,000. On Saturday we paid out $55,000; on Monday, $54,000; on Tuesday, $11,000; Wednesday, $10,000 and to-day but $2,794. On Monday we adopted the rule of requiring depositors to give sixty days' notice before drawing on us. That evening we received notices of the intended withdrawal of $6,000; on Tuesday, $32,000; Wednesday, of $37,000 and today, of $15,000. So that we may consider our annoyance past. We never were in any real danger." The officials of several other savings banks up town declared that the distrust existing among a few of their depositors had absolutely been a godsend to them, as it had caused the withdrawal from their hands of a surplus which, in the present state of the money market, they could not invest to good advantage. The President of a large savings bank, in conversation with the writer, said that the banks are paying too high a rate of interest to their depositors. He thought also that the law should forbid any bank to receive more than $2,000 from any one depositor. The savings banks, he said, are now patronized by capitalists who deposit large sums with them, because, under ordinary circumstances, they can draw it out at any time without notice. By this plan they draw six per cent upon their money, whereas, if it were deposited in an ordinary bank it would draw but two or three at most
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Minor Telegrams. The bombardment of San Sebastian by the Carlists has been resumed. News from Bomba report severe outbreaks of cholera in the province of Tinera. Germany will demand this year an addition of six million marks to military estimates. M. De Zannean, one of the Deputies in the French Assembly, from the Loire inferiaure, is dead. Additional circumstances increase the probabllity that Drew committed the Longmade outrage, Five cents per hundred has been added to fourth-class freight on railroads from Chicago to eastern cities, The Third Avenue Bank, of New York, has collapsed, and a run on the German Saving as a consequence. The bank is sound. It was Joseph Behr, instead of Julius Behr, whose body was found in the bayou near Memphis last evening as reported in these dispatches.
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# WENDELL PHILLIPS. The Visionary Massachusetts Agitator Makes a Rambling Reply to Schurz's Letter. BOSTON, Mass., Oct. 9.-Wendell Phillips has written a reply to Carl Schurz's letter of the 8th inst. He says Mr. Schurz wastes half his letter in charging United States paper-money men with ignorance of facts, which we not only know but have been the first to bring out in the discussion, and have been arguing on for two or three years. If he cannot answer. I claim he shall not misrepresent me. I never proposed to abolish the discount power of banks, only to forbid their issuing bills. They may continue to lend all they can at 5 ar 6 per cent, which will be the general rate of interest whenever the Gov- ernment gives only 3.65. I said, "Fewer checks and more greenbacks." He argues as if I had said, "No checks and all greenbacks." Of course, he easily knocks down the absurd image he had set up. Greenbacks and interconvert- ible bonds are more convenient for business- men scattered from the Atlantic to the Pacific. Fewer checks and more greenbacks means money more within the reach of every class of business-men. Everybody knows that it is not true, as Mr. Schurz asserts, that bank facilities are within the reach of the whole mass of business-men. When bankruptcy opens bank ledgers to the public gaze, we see that five or six rich firms have borrowed all the bank lent, as in the case of the Rhode Island banks and the Spragues. Smaller traders are pushed to the wall and bankruptcy. Our system will prevent this. "More greenbacks" means a healthier system of business as to the effect of the currency on prices. Mr. Schurz and his school measure overything by gold. His assertion that our green- back system will ruinously inflate prices is entitled to certain respect; but I did not say, I proved, I did not assert. I demonstrated, -by a long extract from that ablest living economist, Carey, that our war currency was not the cause which made gold vary in price. Mr. Schurz does not and cannot attack these facts. He goes back one hundred years, and indulges in jokes which I put less faith in than in Henry Carey's facts. His refer- ence to Mill seems a simple evasion. If Bonamy Price ever inquires about my path because I be- lieve in greenbacks secured by Government bonds, payable in gold, I will quiet Price by quoting his words. I am not aware of any valid objection which can be urged against this method of guaranteeing convertibility. Since I criticised him, Mr. Schurz recants his assertion that no nation ever anywhere used paper money without ruin. He is forced to confess that England has flourished under paper, which is all I claimed. I said the same of France, and this Mr. Schurz not only allows, but shows that France, having flour- ished under paper, is now preparing to resume specie payment. Whenever our foreign com- merce, like that of France, enables us to pay a neighbor $1,000,000,000 of coin, and have as much left, we may also resume. Until then, French experience teaches us to wait. So far as my allusion to Germany being ludi- crous, be cannot deny that Germany, choked with coin, is yet actually in a crisis, which up- sets his claim that specie basis always saves nations from crises. His explanation lets the bottom out of his whole speech. He tells us that specie guaranteed against panic, and over- trading and inflation brought these on, and then asserts that in Germany the cause of the col- lapse is the overstraining of the credit system, over production, etc., which is always excited by an overabundance of money, etc. The Now York Tribune joins him in this. So it seems that coin and paper, if in excess, are all the same. Where, then, is Schurz's philosophy? Our greenback system has untried elements which seem to promise more security against crises than we ever had. France, with all her $600,000,000 of paper, does not tremble to her centre as does Germany, be- cause she keeps free on silver as a basis, while Germany, with gold as her sole legal-tender, binds herself a slave to the London market, and our bankers are crazy to have us put on similar British charms, and have an ague-fit every time London feels cold. Mr. Schurz calls our greenbacks "irredeem- able." Once they were redeemable in 5-20 bonds, as good as gold, but greedy capital outwitted the people ten years ago, and cut the currency loose. We mean to make them again redeemable in 3.65 bonds, payable finally in gold. Mr. Schurz warns the laborer not to trust us, but, if the laboring men, instead of depositing in institutions like the Third Avenue Bank, of New York, recently suspended, had Kelley's "3.65 bill" been in operation, invested their money in 3.65 bonds, they would always be sure to get their capital and interest. Mr. Phillips closes by saying that workingmen did not complain of their wages during the sea- son of ample currency succeeding the War, and that they and business-men would cheerfully see such times again, when all made money. Now the rich grow richer, and the rest starve.
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In the long list of reports on Government work, covering so much that is inferior and 80 much more that is extravagant, it is a satisfaction to come across one occasionally that records economical and effective service. To this small minority belongs the engineering work executed in our harbor, under the supervision of Gen. John Newton. At Hell Gate and Diamond and Coenties Reefs, all sorts of expensive tomfoolery had been tried during many years, in vain efforts to obtain sufficient depth of water. At length Gen. Newton undertook the work upon a distinctive system. Slowly but certainly it has been carried forward, till now the removal of these obstruetions to New-York's commerce has become a prospect to be counted by months instead of years. When accomplished these noble works will add largely to the impetus of a revival in business after the hard times. A great effort, on grounds which are fully stated in our local columns, will be made by the Committee of Depositors to have a change made in the appointment of a receiver for the Third Avenue Bank. As a rule, all receivers of bankrupt institutions are a frightfully expensive luxury. Mr. Carver's previous connection with the Bank may be objectionable if it can be shown that his management helped to bring it into its present difficulties, though as a rule the men who have been conducting a business are apt to be best qualified for winding it up after failure. But in either
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THE FIGHT OVER THE SKELETON. Quarrelling for what is Left of the Broken Savings Bank. About three hundred Third Avenue Bank depositors met last evening to hear the sugges. tions of the committee of which Edward MalIon is Chairman. Mr. Mailon spoke in vigorous terms against Mr. Ashbel P. Fitch. who had been appointed counsel at the general meeting of Ofteen hundred depositors in Germania Hall. A power of attorney was presented for the depositors to sign. authorizing the Mallon committee to take legal action for the winding up of the bank. Mr. B. A. McDonald. as attorney for several depositors, moved an amendment that the committee be also instructed to begin criminal proceedings against the ex-officiais of the bank, who, he said, had signed perjured reports, nd also to remove Mr. Carman from the receivership. The motion was carried. one excited depositor yelling. Hang the rascals!" Amended powers of att no" were then signed by several persons. A number of then employed in C. E. L. Holmes's foundry demanded that Mr. Holmes be named for the receivership. Others objected. and the meeting adjourned in uproar. Mr. B. A. McDonald said. after the meeting. that he intended to ask for warrants to-day for the arrest of all of the bank's officials who had sworn to reports within three years. To sustain his application he has procured affi davits showing that the Tarrytown property was placed at $1,500 an acre in the bank reports. when it was well known to be worth only $500 an acre, and that stocks. such as Louisiana Levee bonds, notoriously below fifty cents on the dollar, were placed at par. also that other property had been greatly over valued. Messrs. A. P. Fitch and Algernon S. Sullivan will appear before Judge Westbrook in Kingston this afternoon. in relation to the receivership. Mr. Fitch will press for the immediate removal of Mr. Carman, and Mr. Sullivan, representing the Mailon committee, will. is is understood, ask for delay.
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The Savings Bank Laws and the Bank Superintendent. There are over eight thousand depositors in the Third Avenue Bank whose money is held locked up by that institution, and the united amount of their deposits reaches nearly one million five hundred thousand dollars. It is a little absurd, therefore, for a small room full of men, numbering, perhaps, two or three hundred and representing probably less than three hundred thousand dollars of deposits, to undertake to speak and act for this great body of victims. Some other power should be invoked for the protection of the sufferers by this cruel and wicked failure, and that power should be the civil and criminal courts. A single depositor has the right and the privilege to go before a court to institute proceedings against the unfaithful officers of the broken bank and to demand a reversal of the outrageous appointment of one of those officers as receiver. When the courts act, although at the suit of a single victim, they act in the interest and for the protection of all the sufferers. It is much easier to reach the guilty parties in this savings bank iniquity than may be supposed. The law provides that all savings banks shall make reports of their condition to the Bank Superintendent in January of each year. These statements are required to be faithful exhibits of the assets and liabilities of the banks making them; to set forth the true marketable value of their investments, and to be verified by the oath of the two principal officers of the bank. Such a statement was made in January, 1875, by the Third Avenue Bank, and sworn to by John H. Lyon, President, and William H. Carman, Secretary. It set forth the market value of the stocks held by the bank at $400,000, when it was in fact $280,240, and had been of no higher value at any time for two years prior to January last. It set forth the value of the real estate to be $637,000, when an outside valuation would be $400,000. It represented that the bank had an excess of assets over liabilities of $6,960, when, in truth it had a deficit of over $400,000. As we have said, this statement was sworn to by Mr. Lyon, the President of the bank, and Mr. Carman, its then Secretary and present receiver. The law says, "any wilful false swearing in respect to such
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Among the other savings banks there was but little appreciable excitement. The amounts withdrawn in every instance were slightly in advance of the usual daily outgoings, but, as a general rule, the accounts closed were small in number and not sufficient to cause any fear on the part of the presidents and other officials that they would have to sustain a run. The impression among bankers is becoming more and more pronounced that the best course that could be adopted for the benefit and protection of all would be the appointment of receivers to the well known weak banks and their speedy liquidation. This course If adopted, would, it is thought, at once put a stop to the public uneasiness, while at the saine time it would put it beyond the power of the banks to unite the money of depositors by sacrificing their securities in order to sustain a run if such should be made on them. The Bank Superintendent's departure for Albany last Saturday is thought by many to have been with this view. THE THIRD AVENUE BANK. Mr. Carman is still in possession at this bank, Judge Westbrook not yet having appointed his successor. The name of a Mr. Morgan A. Dayton, clerk in the Surrogate's office, is mentioned as the probable new receiver. It is said he is recommended by the depositors' Committee of Thirteen and is friendly to the trustees. In fact it was reported among the depositors that Mr. Dayton had even gone so far as to perfect his bond, which is required as security. His appointment would be received unfavorably by the great mass of depositors, who hope to see some gentleman of position and well known in the community put into the responsible office. THE SECURITY BANK, which suspended last week, is still refusing to receive deposits or to pay out money. From what could be learned yesterday among the largest depositors it appears to be their wish that the bank should resume business again, and that some ten or fifteen of their number should be nlaced on the research ne Associane cam
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THE BROKEN BANKS. THE GERMAN UPTOWN SAVINGS BANK SUSPENSION-A RECEIVER APPOINTED FOR THE THIRD AVENUE BANK. The announcement made, exclusively in yesterday's HERALD, of the sudden collapse of the German Uptown Savings Bank fell like a thunderbolt on depositors who still had money in the bank. It appears, how. ever, that there has been all the year a feeling of doubt as to the solvency of the institution. Since last January over $1,000,000 have been drawn out of the bank by depositors. The counts, as furnished in January in the sworn statement sent to the Bank Department, showed the liabilities to depositors to be then about $2,000,000. Now the amount stands at $835,000, as stated yesterday. At the time of the election of Mr. Henry Claussen, Jr., as president, a report was submitted to the Trustees by a committee of seven, consisting of Henry Claussen, Jr., John D. Crimmins, Anton Hein. A. Michebacher, S. O. A. Murphy, A. J. Kapp and Adolf Levinger, to the effect that they had made a thorough and exhaustive examination, with the result stated below:-
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TELEGRAPHIC SUMMARY. NEW York, Dec. 7.-Samuel H. Hurd has been appointed receiver of the Third Avenue Bank, which recently failed. WASHINGTON, Dec. 7.-A telegram to Senator Sherman from Cardington, Ohio, announces the death at that place of Mr. T. M. Reese, familiarly known in Washington as clerk to the senate committee on finance. NEW YORK, Dec. 7.-The New York chapter of the American Institute of Architects to-day appointed the following gentlemen as a committee on the proper presentation of the work of members at the centennial exhibition: Messrs. Hunt, Bloor, Littell, Hally, Lebrun and Haight. NEW YORK, December 7.-This afternoon Leonard Buell, captain of the schooner Silas Brainerd, lying at Wallabout basin, Brooklyn, was shot dead by the steward, Charles Peterson. Peterson was arrested and when taken to the station house claimed that the shooting was accidental.
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LOOKING FOR THE ASSETS. Bad News from the German Up-town and People's Banks. Christian Schwartz, the President, and Sch: ffuer. the Secretary of the German Up-town Savings Bank. have not been seen at the bank or their usual haunts in the city since the suspension. Every day develops some new fraud or improper transaction. Mr. Schwartz, who has been bankrupt for some months past. was interested in the Empire Laundry Company, to which $19,000 was loaned on very questionable security. A worthless check for $5,600 has also been found among the assets as cash. and $25,000 of unnegoti ble town bonds. The arrest of Adolf Levinger 18 criticlsed LV some of the depositors as injurious to their prospects of obtaining the money for which he is responsible. Levinger is a partner ID H. brewary, and has rich relatives. and It is believed that if allowed to 120 on without exposure be could have settled within a few months. As it is, his business IS ruined. he will propably be thrown over the bar. and his relaLives will have no incentive to save him from the disgrace with which he is already overwhelmed. Orders of arrest are waiting for S. hwar z and Seb as soon as they make their appearance. Mr. Herman Unl. the receiver of the Germ an Up-town, is laboring b ird at the books of the bank. and will-pare noefforts to bring tojustice all who have misused the funds. The stockholders of the Manufacturers' and Builders' Bank, who, In connection with certain ex trustees of the Third Avenue Bank, tried to start a new concern in the Nineteenth Ward. have given up the project, as it received no encouragement. At a meeting of the committee of Third avenue depositors, yesterday afternoon, Mr. Asnoel P. Fitch was instructed to prosecute criminally other trustees of the Third avenue besides hose already arrested. A prominent Republican official who signed one of the bank reports within three years past will, it is Sald, be proceeded against. Mr. W. F. Aldrich. receiver of the Mutual Benefit Savings Bank, has been connected with the St te B oking Department. and was one of the examiners who reported the Third Avenue Bank to be in good condition, when Mr. Hennessy showed it to be insolvent. The depositors of the People's Bank had an exciting meeting, last evening, at 200 Chird avenue. Mr. Richards. of the committee which had been app inted to VISIT Mr. Isaac V. French, the receiver. reported that Mr. French had given him the following statement of the assets and liabilities: ASSETS. $56,000 Bonds and mortgages. about 10,000 Nurca Carolina State Dones, par Jue 47,000 Bonds of trus ees $113,000 Total assets LIABILITIES. $180,000 Due depositors, about Besides the above assets there is about $240 cash on hand. Dedue ing the trustees' bond, which is assumed to be almost worthless, and the North Carolina bonds, which are worth a few nundred dollars, and allowing that the mortgages are all sound, the bank has about $57,000 to meet $180,000. or less toan thirty cents ont e dollar. The cost of winding up the concern must also be taken out of the assets. Dr. seph Morehead, the Chairman, reported that be had visited Mr. French for information, and Mr. French told him that when he wanted his advice he would send for him. Mr. French's lawver said at the same interview that a bank which should pay fifty cents on the dollar would be doing remarkanly well in these times. It was voted to employ counsel to look after the interests of the denositors, and endeavor to
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Real Estate Market. Yesterday. at the Exchange. R. V. Harnett sold. per order 8. H. Hurd, Receiver of the Third Ave. aue Bank, two houses. with lots each 25x100.5, on 11003 south side of Fifty-fourth street, 75 feet west of First avenue, $14,050. The remainder of announced sales were djourned to Aug. 14. A number of foreclosure sales are announced for to day, at the Exchange. -
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RUN ON THE SAVINGS BANKS. Yesterday morning the excitement among the smaller depositors in the savings banks of the east side, which began to manifest itself on Thursday and culminated in a perfect panic on Friday, in no degree abated, but in the afternoon there was a very perceptible decrease in the number of applicants for a settlement of accounts. The cause of this sudden withdrawal of deposits lies in the suspension of the New Amsterdam and Bond street savings banks. When the trustees of these establishments announced their intention of giving over business, but found themsolves unable to go into voluntary liquidation, a doubt of the security of other kindred institutions became broadcast. The recollection of the Third Avenue Bank's failure and the close of the Mutual, the Germania and the Abingdon Square is yet green in the memory of most depositors, and there was consequently a grand rush to the paying telsers' desks. The Dry Dock Bank, at corner of Bowery and Third street, came in for more than a fair sbare of this run. A large gathering had assembied before it at an early hour, and after dark the employés were still busy handing over money to importuning depositors. it seemed to be generally taken for granted that the bank was going to suspend payment, and the only thought in the minds of all comers was how to most readily reach the counters and withdraw such deposits as they had made. However, it was clear that no one bad a definite notion of what they had to fear. nor could any one give any idea of what their doubts were founded on. It was stated by one or two, though on what authority it would be difficult to determine, that the bank officials were unable to pay the interest on the mortgage which they had been obliged to take out in order to complete the building. and that it was consequently to be sold on account of a foreclosure suit. It was claimed by others that the Dry Dock Bank bad large securities invested in those institutions which have recently suspended and that it had its finances further crippled through that means. In conversation with William V. Webster, the secretary of the bank, a HERALD reporter learned that the securities held by the bank could be realized in a short time, and that even if they were sold at the lowest market rate there would be left a surplus of over $60,000. He said that there was no cause whatever for apprehension among the depositors, but that if they persisted in their intentions of withdrawing their deposits the trustees fancied that, far from damaging the bank's interests, they would only be advancing them. "This run," said Mr. Webster, "will be of benefit to us, because we will not only escspe the ob. ligation of paying interest upon the sums withdrawn, but we will be freed from the payment of the State tax, and that of itself is a matter worth considering." The excitement was not confined to depositors of the Dry Dock Bank alone, but circulated among people who had placed their savings in the Bowery, Bleecker Street and Metronolitan Banks. In these there were fewer amounts drawn and the officers in all cases expressed themselves satisfied of their institutions being able to weather the run. However confident these gentlemen may by of their financial security, there is no doubt but that a wide-spread feeling exists that in this crisis every bank whose finances are not on a solid basis will be sorely pushed. The recent suspensions have inspired a lack of confidence, under which many such institutions may succumb if it be not speedily removed.
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OUR SAVINGS BANKS How They Are Managed, Mis. managed and Ruined. MONEY AND CONFIDENCE LOST. in Some Banks. Rxamples of Extravagance and Economy of Those of the public suspended and other who are interested in portant taken strong subject. desire to know Some savings something banks further have on manifested the affairs this of rotten to ascertain, not only trouble, how the therefore, has been public It continues to feel, but also in what depositors concerns, conceded that in the savings past banks in this city. the 18 which institutions were regard losing affairs light for the benefit of the ostensibly called into of these so badly middle and lower existence been suspicion stitutions. upon the managed in many classes, as to have in advantage of the the cers. savings and the integrity circumstances of as to trustees When, honesty many respects. of management Yet, institutions under favorable are of nearly great all savings their off in which they moneys deposited and in are regardless represent do of these their the corporasacredness the uons work people's mischief the but also mind. public they money, in well A known prominent gentleman. of the with nection of the attention set on the year 1819, the first remarkable fact savings bank having failed. 1850, there is no institution record lact covers any from was foot here, the savings New York, drew savings cessful, corporations a period of thirty-on years, As this during remarkable BANK SAVINGS STATISTICS should period. vided trustees there not SOME continue appears faithfully to be discharged rule good for their reason uniformly a much duties, why, longer which suc proThe whole number At this date the out ment the was State 154 which reported of savings to the institutions through. was $535,796,336. 8 of this total the lamount of up their to January 1, 1876. Banking Depart assets excess enermous an was Jum increase showing estimated the as with year. of previous $9,379,455 or on trust banks cash The deposit companies the of with a decrease compared showed in the stock while exhibited year before, and of bonds mortgages, increase to due amount depositors $5,507,832 The time the number $15,324,653. had with been opened accounts why showed which off Savings banks that 12,760. mainly a decrease or of to the want confidence tributable the Third The these in has one which Bank greatly Savings Avenue weakened last The suspension and showed it of $91,494 $1,370,571 $1,000,000 it ba did formerly at the ness to 69. of Butler, receiver and Bank, Builders have been of quite searches deficiency to CHARTERS. The years 1867 10 1970, chartered Third avenue failures 1867 preceding all are porated in old in the business and basis were started ments economically in wildcat's their to officers obliged doors. will in of supervision privileges, and management OFFICERS of one duty great The to protect delicacy his must the and upon action interests or in great success depend to who man the d the which thousend the with plays thoughtlessly his of fellow most citizens important is is trus. that matter claimed. they tees ought from elected bankers. the affairs would managing confided DEPARTMENT. that Intellige complaint his the the from State time and cash account appointm-bl. his other their until close partment when matter Goors. banks should form. get be experts the say this books porters 11 who them might idea, of ould portion enjoy the to none trustees and bank Bach ically, of of the half them month July, the their and the other banks. affairs to De. or in the half month same cember on eco. Unless strictly to nomical run great they a corporation or this does kind capital to cola to can with hope mence hardly the in the State Interior bank possessed its of while $36,787 capital habilite It to had the about same figure. amounted received Balaried could small 14 18 while $3,566,839 the and to but keeping the be cited Havings bank has than $71,388.64 The equal be of way gant doing greatly multiplied. THE of the on The names are Coleman Messes. and Senate, of th the people Assembly as look this for such of public demands." economy STEALING MONEY LETTERS. department
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Mr. Ellis fully developed his theory of defense in the Third Avenue Bank case yesterday. He did not close up the bank on the receipt of the report in March, because he hoped to be able to merge several banks together under a clause in the General Savings Bank law then pending in the Legislature. Then when be found that he could not do this, Duncan, Sherman & Co. failed, and he did not close it for fear of a panic. The first step in the process, though Mr. Ellis did not mention this, took more than two months, for the Legislature adjourned May 22, 1875, and Duncan, Sherman & Co. failed July 26. Then Mr. Ellis did nothing for more than two months more-he called it six weeks in his testimony. And then-and this Mr. Ellis was very careful to say nothing about, just as he was careful to conceal it in his annual report and his letters-the trustees of the bank actually compelled him to close it. Mr. Ellis's theory is an ingenious one, but on his own showing, the depositors in the Third Avenue and all the other banks have reason to wish that there had been a Superintendent in charge who didn't always take two months to do a thing.
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FINANCE AND TRADE. Transactions in Banking Circles Reduced to a Low Figure. The Produce Markets Stendier, with More Activity in Grain. Hogs and Flour Dull-Provisions Firmer -Stocks of Grain Here and at Other Points. FINANCIAL. clearings were smaller than they have situation been The day for acveral months, and the for any the bank was very quiet. The demand trans. among is confined to those of course wet or leans that go on whether the weather is actions business is good or bad. Few applications regular dry for Inana or are received from day but the customers of of discount the banks. were 8@10 per cent a! the the Rates regular customers. OD the streets banks to made. usual New variations York exchange are was sold between banks at 506 75c per $1.000 premium. The clearing* were $2,600, 000. SECRETARY WHERMAN AND THE RESUMPTION OF SPECIE PAYMENTS. But Daily letin. Washington Correspondence May see 10. York Secretary Sherman made out an argument figures, like in Congress and embellished it with and speech he presented to the Cabinet yesterday. to which thought the details 100 complicated It that body actual and dellberate intention. continact upon believed, after long debate, that the any was to be met were too many to organize the rencies absolute and interistible plan of action, and an thus let the matter drop. The Secretary is himCabinet to the necessity. agreed to even by act driven that the best way to do is to of in self, the manner best suited to the wants time country and trade from act the time, and carry out the Resemption pro- HS to and rapidly as he can. lie does not wisely do anything harriedly or rash, makes but pro- a puse to to give ample notice whenever contract be the posas he scouns determined to to currency so as to bring its the diment. as possible, and 10 avoid would surround resumption not legal-tender more; gold ties that as soon but with value It gold is up highpremium. When It is commenced, gilver may a much to anticipate that even yet legaltoo a function in the contraction of seem as perfect violent as such a proposition may tendere, matter of fact. The Administration has no in. a flexible plan beyond that above stated. RUSSIA AS A BORROWER. Rossian Government has lately been bor. which The in London to obtain funds with Nothrowing coupone on the debt soon falling due. pay officially known about the amount borrowed, given the is rate of interest paid, but the account by us or the the Semaine Financiere, and repeated The by is generally believed to be is It sceine, get 8 percent yesterday. pymdicate, Interest correct. pledged and commission. and as security have preper them cent bonds of the Rassian Government, which to 44 per cent bonds of the 1870 loan. of their sumably not nearly all placed, At & cent was nominal value. It Isairo said that the syndicate periods the "call" of this stock at TO for Those has given as six or twelve months. variously briefly the particulars of this transaction circu- as are sundry foreign bankers. and an among members of the Stock near the tenth as a known lated probably to Russia Exchange. carrying cannot They hope on are raise money at a less figure while trade deto with exchanges depressed, ballion. moralized, great war, and coffers almost empty of loan was negotiated before war was declared, times The and shows how low Russian credit stood in of peace. THE NEW YORK BANK SUPERINTENDENT. New York Tribune. Mr. Ellis fully developed his theory of defense He did Avenue Bank case yesterday. in the bank on the receipt of got because he hoped to be to merge Genthe March, close u Third able in the the report In together under a clause Bank law then pending in not when he found that ho did Sherman & Co. in several ture. eral Savings Dudean, Then banks failed, could the first and Legisla- step he do this, it for fear of a panic. The Mr. Ellis did not not the close process, though mention Legislature this, than two mouths, for the May 22, 1875, and Duncan, 20. Then Mr. Ellis took adjourned Co. failed more July did Sherman nothing called than two months more-ho then for more weeks in his testimony. And It six this Mr. Ellis was very care. -and nothing about, just as be was careful ful to any his annual report and his letters-the to trustees conceal of the bank actually compelled him one, Mr. Ellie' theory In an ingenious Third close It. bis own aboving the depositors in the to but on and all the other banks have reason in Avenue that there had been is Superintendent do a thing. wish charge who dian't always take two months to WATER MINING STOCKS. San F rancisco Daily Bullelin declares one stock of The evile connected with the mining the the greatest. the last few years to have been of stocks. The total number leading Comstock the of shares is now 3,481,200. market the watering twenty-six number during mines each is of 24, foot feet This 730; of in . 1 B makes un average of 138% shares to part of and gives each shareholder a minuto companies mine, of the lode. In 1870 the same an inch Issued only 289, 300 shares, and consequently 086 cent. had ILL the Interval the number has increased 1, per BRITISH TRADE FOR APRIL. The returns of the British Board of Trade more for April are declared by the London Times to be fiscal promising than those of any month of the but It is There Is still a decline in exports, down. year. so slight an to confirm the opinion that the ward movement has already lost Its strength. STOCK OPERATORS WANT A HOLIDAY. pending 'bull' movement in stocks is ex- the The by the knowing ourse as on effort through by plained dealers to get outsiders to carry the stock the weather. They calculate that In fall the hot can buy these stocks in again at a reduction, they and in this they are as likely to be right as not. . GOLD AND GREENBACKS. Cold in creenhacks was
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Their Assets, What has been Paid. and What their Depositors May Expect. From the Sunday News The following facts touching the broken savings banks on the east side are the result of careful inquiry, The failure of these banks involves. it will be seen. considerably over $50.000,000. which is distributed among nearly twenty thousand depositors. The Mechanics' and Traders Savings institution. of which Mr. W. J. Best is receiver had 3,400 depositors, with deposits aggregating $1,500,000. Of this amount, 65 per cent. has alrealy been paid in two dividends. The remain ng 8880 is consist of bonds and morta ages and Southern bonds, whereon it is differe to realize at present but a third and last dividend of 10 per cent. will probably be forthcoming in clober. The Third Avenue Bank had 17,500 depositors. and $1,366,688.81 of deposits. Mr. S. H. Hurd. the receiver is striving to 11x responsibility on the trustees of the bank. About 3,500 depositors have not called for their first dividend, and there is about $3,000 in special deposits not claimed. Mr. W. 8. Paine of the Bond Street Savings Bank says that 650 of his depositors have not called for $1,000 in special deposits. The money is in one of the trust companies drawing two per cent. interest The Bond Street Bank failed in September, 1876: depositors, 3,339: deposits, 1,288,660.81. There has been paid 55 per cent. The receiver has $100,000 on hind toward another dividend. The Brooklyn real estate will he sold on the 28th inst., and that in Middletown, N. Y., about the 15th of August. A turthere dividend will be paid in October. 1877. The Peoples' Savings Bank of which Isaae V. From is is perever. failed last winter. with 1.246 depositors, and deposits aggregating $200,000; 335 per cent. has been paid. Mr. Frenchexparts to pay n final dividend of 10or 15 percent. early in the fall. The Mutual Benefit Savings Bank, William F. Aldrien. receiver failed in November, 1875. It has paid 50 per cent. Its assets consist principally of real estate, on which it is slow work to realize Ten per cent. will be paid within three months. Fifteen per cent. will be paid after that but when it is impossible to say.
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SUPERINTENDENT ELLIS' TRIAL. MR. ELLIS TESTIMONY EXPLANATORY OF HIS OFFICIAL ACTION. SARATOGA N. Y., August 7, 1877. In the Ellistrial to-day, at the opening of the Senato, D. C. Ellis, bank superintendent, testified that the first time he ever heard the statement about the Third Avenue Bank, as sworn to by Isake Smith, a clerk in the department, was at Saratoga; don't remember any conversation with Smith about that bank there was a special examination by Reid, Aldrick and others in April, 1873: knew ot the $150,000 bonds which were to be given by the trustees; was influenced by all the lacts in bis knowledge; went to New York the day Duncan, Sberman & Co failed; saw Mr. Cisco, and be counselled delay; saw eight or ten other business men; they said that the market was excited: it continued 80 all the summer: acted on the opinion of these man; anticipated that the closing of this bank would be very disastrous to other banks; at tention was first called to the Mechanics and Traders' Bank by a letter from Roid, in 1874, about the trouble with the Secretary: I immediately went to New York the bank deposits were small; they continued to in. crease to the time of the closing ot the Third Avenue Bank: the complaint was against the management, not against the solvency of the bank; the officers were called set of robbers; examined the President and Finance Committee; found them running on in their own way; gave them the choice to close up or behave themselves; found the bank financially sound; when Reid examined the bank in December, 1874, showing a deficiency, the Secretary came to see me: told the Secretary the trustees must make up the deticiency or 1 would close them up; the letter of Decemi 25 was to know what had been done: received tele. gram saying they had put the bank in shape; Reid re ported in 1876 that the deficiency had been made good: relied on Retd' report, as I had no knowledge to the contrary next had attention called to the bank in August, 1876 Reid said, when told to go and look at the Beach street mortgage books. that they were not systematicali; kept: they seemed all right: was at Rochester when Lamb turned the bank over to the Attorney General, and approved his action instructed Reid to keep a watch on the bauk and others and report;returned the letters sent by Lamb and told him 10 look to the matter in his (Eills' absence. THE CASE OF THE PROPLE'S BANK. In the fall of 1873, on the report Mr. Reid, commenced proceedings to close the People's Savings Bank: some of the officers called and proposed to make up the deficiency, and as the bank had changed its location anticipated bette business; the trustees had put in one bond proposed changing, giving in dividual ones more binding; the suit was prosecu no further then: went to New York and looked Into the matter examined the trustees' bonds and mort gages, and was satisfied the deficiency would be made good in full; Reid and the superintendent called at the bank and made an informal examination of the assets did not make a formal report; only know that Reid reported when the report was produced on trial; the deficiency reported by Reld was more covered by bonds held by the department; thinks be acted under the letter received November 11, and telegraphed Reid to send formal report; wrote the Attorney Gen. eral to close the bank followed the figures of Reid's letter; the Attorney General prepared the summons giving the figueres in the letter: when formal report came, as figures differed, he changed them to agree with the formal report; after the Attorney General had no further control over the bank went with receiver to witness the deposit of the assets the bank the receiver of the Mechanics and Traders Bank found, after some months' work, that the ledgers were not correct as Reid had accepted them. THE LOANERS' BANK. Asked Smith, as he had been in the department many years, if the Loaners' Bank had ever made port; he said " bad made a statement but did not know what had become of it: he had examined and could tind no power to inforce the law Reid went and tried to examine; did not succeed went to New York in April, 1876; the officers told him they were taking of paying up depositors; handed him the opinion of William Tracy, their attorney thought it was before the opinion was put into the hands of the Attorney General the bank was turned over to the receiver: intended leaving the bani to the Attorney General and not put Traoy's opinion against the Attorney General: did not influence him from making un examination: could not walk m and take possession. ABINGDON SQUARE BANK. Never was inside of the Abingdon Square Bank nor saw the officers his only knowledge of this bank from reports and letters it was handed over to the Attorney General July 29, 1876, on the report of Reid by Lamb, Ellis being away has no recollection of hearing of bogus checks until the letter of Reid, when the bank closed; has no knowledge of the Receiver's actions. MORRISANIA GERMAN BANK. His attention was first called to the German Bank, Morrisauia, in March. 1875; Reid's examination men tioned a loan by former president on railroad bonds; the president and counsel of the bank came to Albany and be told them they must make up the deficiency they seemed very cuergetic did not want the bank closed; the former president deposited good collaterals for the oor under the former bank superintendent the officers seemed anxious to do al that the superintendent asked to make the and good General Sigel deficiency the trustees called after the bank had been pue in the hands of the Attorney General and said if there had not been such rnn and a little more time were allowed the depositors would all have been paid: a large proportion of the depositors had signed H petition, prom. ising to let their money lay in the bank it was not put in the hands of a receiver: had information from the Attorney General that be was going to try the ex periment of letting the depositors vote pro rata for a receiver; no lacts came to his knowledge to destroy the confidence in bank. his In the law of 1874 the New York Loan and Trust Company is required to report; examined in February 1875, after the report caine he examined the law and charter by which he could return them to the Attorney General: conversed with the trustees as to the manner of closing up BANK. SECURITY SAVINGS Attention was especially called to the Security Sav ings Bank in November of 1875: considerable excite ment prevailed in New York at the time; Mr. Reid made the examination had a conversation with the President: they had practically closed for a few days while the examination was being made they claimed that they were solveni Mr. Ettis told them the de ficiency must be made up he gave them all the time possible, as they were not doing business the bank was finalty closed by the officers January tive or six banks were closed after the Third Avenue NEW BANKS NURSED WEAK Attension was called to the Mutual Benefit Savings Bauk three or four days before the receiver was pointed Mr. Reid made an examination, found clency and told them they must make it up they asked time to nold meeting of trustees: two day before the time expired they appointed receive without his knowledge the deficiency was small trustees were always allowed to make up deficiency 18. new banks: in fact all new banks have to be propped up by their trustees: If any of banks holding mortgages were put under in the bammer, they would be insolvent time of great de preciation in stocks they might so, but allowed to go on would be right the Superintendent exercised his best discretion regard to these banks; it was that the Security Savings Bank was good and ought to go It not practicable with the force of the department to examine every piece of property the books hold one had 3,200 different mortgages: could only take the papers as they appeared to him they are re ported at face value in the present state of the real estate market; If their mortgages were foreclosed, banks could pay their depos tors; n run would force a foreclosure of mortgages, large proportion of which were taken when real estate was in better condition if let alone they will pull through. The Senate then adjourned.
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Savings Bank at the time he consuitd Mr. Cisco, John A Dix and others, after the failure of Duncan, Sherman & Co., would have been very disastrous to the City of NewYork. He was then cross-examented, and testified as follows, The mischief would have been a run on other banks and moneyed institutions. It was about consulted the financiers, There a run in the Fall of 1875, six in less when of he closing was Aug. banks more 1, 1875, or which there were deficiencies. and putting them into the hands of receivers: he depositors cannot get their He had some would help a money trustees bank back. to some banks. faith that It hurts the stop payment. and depositors would suffer: when they resume and cannot Day at once depositors are certain to suffer. The Third Avenue only twenty per cent on its was sold for thirty cent on estate banking realized house per Bank's cost: its real the sold for more was forced to put it in the reresult, it was afterwards but privately. hands Foresaw of cost a this depositors in the banks of the Bond Street ceiver. if the depositors All the Bank named had suffered: not lost confidence, and the bank had kept on untilre estate became better, they would not have lost so much: in the case of the German and better for the not been felt into ers have had been appointed: Security depositors Banks bound if it to receiv- would take consideration the interests of all depositors: he might find a bank with a deficiency of assets and not hand it over to the Attormey-General: again, he might deem it advisable to do so at once: he was influenced by the advice of financiers and formed opinions of his own. He was preparing a communication to the Attorney-General about the Third Avenue Bank when the committee called to see him the recommendation to the AttorneyGeneral was based on all the facts in his possession. When, in 1875, the report of the Third Avenue Bank came to the Department, he had a conversation with Deputy Lamb: lie agreed that closing that bank would close a number of smaller banks: favored the law of 1875, which allowed smaller banks to consolidate with larger and stronger ones, Some financiers he consulted agreed with him, and others did not. Trades Savings Bank report of regard attention He visited to of its the November, 1875, several and called times the in the Secretary to the mortgages and deficiences, and told him the deficiency must be made up. The Secretary said the trustees wrote that the money had not been were in such a condition that and money. the books Reid proposed paying he could in paid, not the find out about the bank. He saw no reason for closing the bank until he gave the final order. He went to Savings Bank with and Reid examined but know the of 1874, People's he it, Reid, he in the did Fall not made a written report until it was produced on the trial. From conversation with the officers, formed an idea that the were correct: was aware in 1874 Bank required them to bank of the Leaners' reports that report made the charter to by the the department the President claimed that his bank had made a statement every year: never saw any reports; blanks to fill when to inform himself about office ting never to he sent tried them up: all the he laws went rela- into banks: also examined reports and consulte clerks found one hundred and sixty-five savings banks with deposits of $350,000,000 the expenses allowed by the Legislature for his department were about $170,000. Mr. Ellis's direct examination was here resumed. He testified About the bogus checks in the Abingdon Square Bank, July 19, 1876, he left the papers on the table with Deputy Lamb and went out of town on a vacation: could not remember giving Lamb any directions regarding it. To Senator Gerard-He refused to receive personal security from the Trustees of the German Savings Bank of Morrisania because he did not consider it expersonal securities of pedient Avenue Bank the the Third were received by his predecessor: the law of 1875 made a change regarding such securities; did not analyze the reports of banks to see whether items of accrued interest were of interest running for the current year or dead interest overdue: had not wound up any banks before September, 1875; had no experience. To Senator McCarthy-He never made a general order to the clerks of the Department to report all questionable items in statements of banks. To Senator St. John-He found some large banks apparently willing to take the assets of smaller banks and assume their responsibilities. To Senator Prince-If a large bank had taken and held the securities until better times, they might have the small banks in the the depositors of full; delay from paid March in acting on the Third Avenue Bank was caused by waiting for the passage of a general law. If the times had grown better in 1874 and 1875, many banks could have been saved. Many private individuals lost by real estate in those years. To Mr. Chapman, his own counsel-From Reid's letter calling for a report of the Third Avenue Bank, January 1. 1875, it was resolved to close up that bank; it was only und cided as to the best time. To Senator Bixby-He did not regard the Third Avenue Savings Bank as safe for depositors: it did not create much excitement when it closed in July; the public had got used to failures. To Mr. McGuire-When Senator St. John was Superintendent of the Bank Department, mortgages of broken banks sometimes sold for twenty cents on the dollar. To Senator Gerard-He considered Reid an expert, and took his reports as correct.
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SUPERINTENDENT ELLIS. SUMMARY OF THE IMPEACHMENT TRIAL. AS PRESENTED TO THE BANK COMMITTEE THE THE CASE ENATE-EVIDENCE OF WITNESSES AB OF SUPERINTENDENT'S NEGLECT-ADDL TO THE BEFORE THE SENATE-MR. ELLIS'S TIONAL RESPONSIBILITY TESTIMONY FOR DEPOSITORS' LOSSThe ES IN proceedings THE THIRD AVENUE against BANK. Dewitt C. of Ellis, Newthe of Department Banking Impeachment York, are in their general character an two the State Senate. They are in Testimony before the Senate Committee on latter Banks half (2) the (1) Testimony before the Senate itself. The teath though in progress, evinot quite complete. The whole which that voluminois, the Committee filling about 550 printed pages, which the Senate has taken the being general cerNotwithstanding the patience of ordinary newspaper on. in following even therefore the aphie from Albany It 18 features the leading of from its beginning down to the pres at time. details will be made, as these would in evideace and the comparison extent two in case obtained in was this Senate from Gov Robinson. The order points by in their Bank Committee the matter of the first message be and finished before the second one there was In the procedure before the Senate to follow this order. The first message 1877 it reeites charges against Receiver Sept. of furnished by William J. Best. and Trades Savings Institution. They insolwas that the Bank follows: 1874, the deffeiency then being $200,000; the fol made known to Mr. Ellis in that thereupon he examined the Bank reits insolvency that he was frequently but proceedings to protect the creditors, June, to 80 till about two years afterward balance 1876. The proofs offered were as follows a $200,000 showing a defletency of more than July, 1874 this was made by the person keeper of the bank at that date, but it was of in October, 1876 The testimony is given sworn the to trustees of the bank, who, in July, 1874, were by it a committee to ascertain its condition. appointed deficiency of $181,500. Evidence shows these trustees brought this report to Mr. Ellis's several nothat September, 1874, and It was alleged that of urged take action. The annual report things stated widely meanwhite Bank Department different In March, 1875, it ascribed to the bank found plus of the $67,000; in 1876, 89,500. The Receiver points foregoing $350,000. are others deficiency early laid down the Governor's messuinand The trustees were among the witnesses sift. moned sage. by the Bank Committee It appeared, upon that the statement of the two trustees deficiency of $181,500 contained serious erthe omission of the cash on hand (9102.000), otherwise to regarded with some suspicion, Trustees. having been in the Board of Ellis as there alleged frequency of to Mr. eviThe weakness of the bank was disproved by the After them. to said have examining the bank in October, 1874 Mr. Ellis found make deficiency $25,000, and urged the trustees to and its Some bonds of the cities of Brooklyn this good. held by the Bank, shortly afterwards rose the in Rochester, value, and by the January follow ing it appeared testimony that in could actually show a supplus. The of bank there was at that time for COB- of the some value of as opinion for certain of the Bank, as the market thrown the ductuated and doubt of be stocks method of valuing bank securithe Doubtless Department estate stocks and deeline in of the Mr. Ellis'a the On than 1874 the to charges defence was Savinga fairly Institution, dated was April the the the Street, Peoples', The MorGerman the to also Third and Loan State Bank far the was Governor's last are charges the in after insolvtheir hands into neglect the necifications The alleged. abandThird Avenue Bank the of is M Ellis one charge Street Bank and bank the that Mr. testiby sidered had been the bank that the the To charge behands, put into stlat the dividends and given As to o desired. because Bank, Mr Ellis that the apthe not all; it rae was plication the report abowing defleiency to the proved in respect (a regard Similar the Abingdon the Trades of some the Bank Square it to took have illegal had the not bank apthat the posit Over as Department the went to show that line possessed banks Mr used the the Depar uent ingburgh. promptly bank of Lans the New-York resisted bank State Loan and Trust Company the and effort# the The Bank. DV the Depar its suspension struggle made As to the Security took place during that brought to sustain the to make an neglected Mr. Elite rplus suffered before closed with German Savings being the on deficiency Bank, a make actually to have this whole the and the logers, deposMr Ellis had defended himself toterspecific charges, perhaps partly well agminst the there were few witnes for the Third venue Savings of the of The scope easily disposed and made to apply to any the the inquiry condition of the bank from to the date bank time when Mr Eltis closed. became It that the bank the to report Depart= and 1873, April, that there was then prosmade March 1875, show Department of trustees $115,000 besides bank held by the The bonds Attorney till September, reported the this bank had its value increased apparently raised Mr. that before took place to the have increased office he found them. There were that could the in bank various fraudulent could for such instance, them $60,000 cash, when the cash annual the report of 1876. Supt. Eilk says respect. Department March, had bank unpointed Whether in would 1871 instead of 1870, is a seculative mostly
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wishing to keep It from the hands of a receiver. Mr. Ellis used his best judgment in the interest, as he believed, of 800,000 depositors in savings banks. Can a man be removed for a mistake in judgment He found that his predecessors used judgment and discretion in allowing a bank to go on with a deficiency of $115,000. The Attorney General uses his discretion in regard to suits. If the law said that the Superintendent must act forthwith, then is bauk with $12,000,000 assets might, in time of panic, be temporarily deficient $100,000, and the consequence would be that it would have to be closed up. It 16 always necessary to nurse and aid new banks. If the Superintendent finds a bank dellcient and turns It over to the Attorney General, and u subsequent examination shows error, the reputation of the bank IS ruined in the confidence of the depositors. Eight or nine banks which in times past have shown deficiencies now have a surplus. Stocks and real estate have been steadily falling, and It would require Eills to possess powers of omniscience to know every time what banks are doing with their deposits." After referring to the Abingdon Square and Traders' banks Mr. Chapman returned to the Third Avenue Bank, Stating that live months prior to Elhs' going into office experts were examining the bank, and the courts decided not to put it into the hands of a receiver. He sends three men to examine into 118 affairs, and they report a third of oue per cent deficiency of assets and a surplus of income. In a letter they speak of the courage of the managers in meeting a run and how well they have stood 11. Also of a change of trustees, and now prominent financial men had stepped in and taken the places of some of the weaker ones. After seeing that dve of the trustees stood by the bank Ellis expected it to keep running along, and it probably would but for the panic of 1873. The Senate then adjourned until two P. M. to-morrow.
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# POSTAL SAVINGS BANKS. The run upon and failure of some of the St. Louis savings banks, the explosion of the Franklin Bank and State Savings Institution at Chicago, and such scandals as those that attended upon the downfall of Mr. Darling's Third Avenue Bank, have brought into very general notice the postal savings bank system introduced into England in 1861, and since then adopted with some slight modifications in Canada. In England on the 1st of January, 1876, there were over five thousand of these banks, which held £26.127.967 to the credit of their depositors, the average amount deposited by each person being nearly $71 and the business of the year 1875 including 3,132,433 deposits, amounting to £8783,852. The deposits must be made in round pounds and shillings, and not exceeding £30 in one year, £150 in all, or £200 including interest, is received from a single depositor. Depositors are allowed 2½ per cent. interent on sums exceeding £1, the money being invested in the public funds. In Canada the system is somewhat different. Deposits must be in round dollars, 4 per cent. interest is paid, and when the deposit becomes considerable the Receiver-General buys 5 per cent. Dominion bonds and holds them in trust for the depositor. Deposits are exempt from seizure, and are payable anywhere where there is au office. Thus a man may make his deposits at Gaspe and draw them out at Fort Garry, the only delay in the process being the time occupied in sending an application for withdrawal from the local office to Ottawa, where all the accounts are kept, and receiving back the Postmaster-General's check. There is no expense whatever to the depositor. The postal savings bank system went into effect in Canada in April, 1868, when 81 offices were designated for the receival of deposits. There are now 278 such offices-232 in Ontario, 45 in Quebec and one in Manitoba-with, on the 1st of January last, 24,389 depositors. These have at their credit $2.727.910,77, including interest. During the eight years and nine months then ending 307,290 deposits have been made, amounting to $15 741.621, and there have been 153,394 withdrawals, aggregating $12.208.189,20, while further 6,786 investments have been made in Dominion 5 per cents to the amount of $1.617.300. There have been opened 85.971 accounts and closed 61,582, and interest amounting to $811.778,87 has been allowed to depositors. The average to the credit of each depositor is $111,85. The following figures show the progress of the business: