Morning herald., 1839-12-20

Since the suspension Of the banks in 1857, every,
new development only accelerates the ultiPate
downfall Of the banking system, at present
sed and managed The last fraud Of this character,
Of gigantic magnitude, perPstrated under those
rescripts Of wicedncss called charters, is that just
developed in the Schuylkil Bank in Philadelphia
The following are the facts as far known from the
National Gazette, of Philadelphia
The Dirsetou Of the schuykil Bank have been in
yesterday enabled give round numbers the
Of their iabors These will satisfy the rghul curiosity
.nt can be made The Board have discovered that Mr.
Le-is account sf Kentucky Bank stock shows deficit Of
thirteen thousand shares Besides 1t Is aeertained that
hundred thousand doarsfor large portion Of this howev
er understood security held II dcoered that the
transfers Of the Kentucky Bask stock begun
as far back as January The Schuyk Bank owed
city banks time previous to the bank resumption Of
August sx hundred thousand dollars and the
surpse of many suddenly paid these balances The qu
this may be accounted for BY the
i.sue by Mr. Levis thousand five hundred shares Of
Kentucky stock from February TO October OF that year
(ls3s) There 10 TO Mr. Levi credit the book three
hundred and fifty thousand dollars which he alleges TO be part
In May 1885, according our inornants statement Mr.
MAXWELL the trsnfer clerk in the schuyki Bank
IN the Kentucky Bank stock account overdrswn 10 or
I2c00 shares, by warrants from Mr.. Lewis Mr.. Maxwell
left schulkl Bank in May 1882 and the account
still short 10000 shares To show the nfa,uaien Of
the late cashier in this matter N the bank had had mil
on in gold tits dcposes little tenth Of that
amount) would have been impossible Tor him
deemed fraudulent issues or stock for allowing each
share in the depression Of the arke 10 have
been down 10 60 dollars TO have commenced
shares would have increased their entire value place
considerably over this million.
This most astounding piece Of villainy has been
hitherto concealed by the other banks Of Phadel.
phia, on the principle, doubt, Of common inte.
rest. IL the bank frauds which have been DEVELOPED
in Boston, in New York, in Baltimore, in New Or.
leans, in Philadelphia, during the last four years.
we're put together, they would call to heaven for
vengeance against the whole system Of chartered
banking. As things are shaping themselves,
we know not the day nor the hour when some other
bank, now in high character, may not follow the
venerable footsteps OF the Schuylkill What can we
,e,, ~ the Girard Bank or even of the United
Statesl
Such developments must in time destroy entirely
the public confidence in the banking system and
paper money. The country is gradually becoming
favorable to specie currency-and hostile to paper
money II all kinds. Stocks are low, nor can they
ever rise again, if such developments continue
The extravagance, pride, and folly in social life,
among all those connected with the banking system,
have driven them 10 these frauds in order to support
appearances. But their day is short. Not only is .
revolution going rapidly on in the banking system
but the same revolution pervadcs the social system
the very recesses Of private life. The great
Of the people are becoming locofocos in their opn-
ions-not locofocos to support Van Buren, but Ieco
focos SO far as hostility TO banks and paper money
can express IL. We must all prepare for strange
things.