The Express.
London, England, 1861-11-25 00:00:00

NT. JAMIOCR.

Tun Er.verso, A 4L Mr. O. Vining and
1111, Kate Terry.—THE POOR NionLCar% N. Mr. A. W WYO.
All.l RILL SIR C1'81:. Mend& 11:111.1.4M. Co.kervll,
Y. Matthr•.. firs Maithrwa—CoarnardeeatTi.

I:ItIr4N.SIA.

foes Evizcinn. THE 417i.e3. mks F: Claytqn
Sal llorke)•—M. illutr. Wine.
,tryikau.—Ur. J. Plusepton. THE WILPM",I noN.
Airs. A. lane. - Cuninvelier 14 61.

IUeIWATIR AT WXDOW WOOL

-
11118 Oat CL Abonarsa M. Ile.
TO-31•1110W.41knieles, 1.61 c

LONDON, MONDAY, NOV. 26.

Acs rxrouri. as the public have become to the
frauds and ruinous mismanagement ..f public com-
panies, the perusal of the report made by the
aceountante on the affairs of the " Bank of De-
"posit''—the real name of which, as it now appears,
is, "The National Assurance and Investment Ammo-
" citifies "—will be followed by an universal burst
.4 indignation and a demand for the signal punish-
ment of those implicated in the scandalous misap-
propriations disclosed.
Notwithstanding an intricacy and involution well
devised to conceal fraud, the facts are very simple.
The bank, on its promise of paying 5 per cent.
interest, has received deposits to the amount of
.102,5971. 15s. 7i1., and it has closed with assets
of 65,0801. 13s. 4d. Although bound by the
provision% of its deed to pay interest
wily out of profits, it has never had any
profits out of which to pay the 5 per cent. it
promised. In every year the total amount paid
to depositors for interest has so largely exceeded
the interest received from borrowers, that in the
ten years 1831-1061 the sum paid out of capital
for interest to the former reached the largo sum of
110,3471. 13s. 10d. Here, then, there has clearly
been such a misappropriation of funds by the
directors, or by the managing director, as IVA
it is sincerely to be hoped, bring the guilty
laity or parties within the jurisdiction of the
criminal LW of the country ; and in such a
one as this, where there is no one to act promptly
ill behalf of pubic justice, it is the bounden duty
of the Executive Government to see if punish-
uient may not quickly follow the exposure of such
a fraud.

The payment of 60,3471. 13s. 10d., large as
that sum is, for interest out of capital, lasses, of
worse, a much larger dshcioncy of loss to be ascer-
tained. Unfortunately, it is readily accounted for
by the following items:

Preliminary expel...a 1:20,175 1 0
1:1;,.....-, .4 nauarnme.t 14.613 19 10
1...- ..r. Ausuity meows% :10,772 3 5
4411.4 1....~11
1.12.•‘1.1..t00d deacifsacy

So that, in ton years, while the losses from mis-
management were 148,6441. 18s. 101., the ex-,
ponies of what is called management were
174,790/. Is. 6d. It will surprise no one that in
this decade, the managing director, who was thus
actively empllyed in ruining the depositors, re-
mired for commission in lieu of salary and for
fees as a director, 10,1281. 11s. Id.; not to
mention that, in addition, his cash account with
the company shows a balance against him of 1,2351.
11s. 7d.; mat:Ling tojether the very handsome sum of
11,3231. 2a. HI as his share, so far as has yet
been discovered.

The sue, as disclosed by the Aoconntanta' re-
port, is one which never admitted of the smallest
self-deception or delusion. Mr. Prue Moaat-
soN and his associates never could have been under
the mistake that they were earning out of any
profits sufficient to discharge the interest they
undertook to pay depositors; for year after year
they half-yearly took—unlawfully of course—

large smut from capital to enable them to fulfil their
promises. They knew very well that all their invest-
ments were bad and unprofitable ; they seem, in-
deed, to have had an utter abhorrence of any in-
vestment that was moderately good ; they must'
have been well aware that us making advances
to the fortunate M. JULIAN Remiss° on
his boot and shoe patent, and to a succession
of insolvent life insurance companies; in
subscribing to shares in societies which no man
who valued his own character would have touched
with a pair of tongs and in lending the Company's
money to each other ; in entering into banking
affairs at Leghorn, and annuity business in
Paris, they were trespassing beyond the limits
assigned to them by the legal constitution of their
enterprise. They knew that in spending in ten
years the immense sums they did in salaries, print-
ing, travelling expanses, directors' fees, commission
to agents, ke., they wore wasting and dissipating
funds entrusted for other purposes to them.
Thu case is not ore of delusion, but of knowledge
and deliberation ; it is not one of mistake or error,
it is one of persistent and consistent inalversa-
ton. And if there be justice in England, the
crime ought to be signally, severely—we will
aid, promptly, punished. It is not one for the
Curt of Chancery, or the Court of Bankruptcy,
where at most three shillings in the pound, on
3,-.4,0381. 3s. Id. may, sooner or later, lie ob-
tained ; it is for the Ciudad Criminal Court, where
all implicated ought, if it be possible, to be forth-
with arraigned.

.%ITENTION Ms beta egad on former occasions
i 3 this column to the important financial effects
wl.i.h were prodnced by tho bad harvest of 1860.
Apart from the beery foreign outlay which its
deficiency occasioned, the twelve months which
elapsed b•tween the ingstherixig of the crops of
1860 and those of the present year was marked
1•y • servo, hoop pressure upon the banking inte-
rest. The sir:cultural classes were straitened by
causes too obvious to be further referred to, whilst
I.lanufactirers and importers suffered from the
check to cumuleption and from the slowness with
which goods were sold. These circumstances

naturally led to a heavy demand for money upon
the hanks. Manufacturers and importers required
help to holil their goods, and farmers to keep their
heads water in an exceptional season. Agri-
oiltnrists, aho usually had large balances at their
bankers, oln.w them out, and even in many cases
hecasse ts.miwers, whilst the dittinitties of the
poi.ter ela, of farmers eal..Nl them to lean upon
the country banker % to an ei.tent not witnessed