The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-01

One of the banks named in the list published in No
vember 1863 patched up defacaon Of $50 000 the
morning Of its announcement, by depositng in the pay
ing tellers cash drawer check for that amount This
abed the officers of that institution to contradict
statement, far their bank was concerned. The
hers have been provided for in way and the par
ticulars may never meet the public eye.
Defalcations amounting to more than half a million
of dollars have been acknowledged within the past
year. and the probability that.at this moment there
are at undiscovered and unacknowedged defalca
tions existing perhaps double that amount On the
26th Of November 1S53-the day after Thanksgvingwe
made the following remarks relative to the reported
efalcations of that time
In the absence Of operations in fancy stocks and other
movements spectators, and those who congregate
in Wall street, have nothing more interesting or
amusing than the Clear comprehensive and explicit de-
na certain deaosons the wall street bank
These contradictions which appear to have been given
very reluctantly, have evidently been drawn out for
particular purposes and the public take them for
what they worth That they will accomplish the OBJ
ject aimed at at all acquainted with the internal
organizations and management OF the banks Of this city
for moment believe The way these institutions
created and carried on is enough to satisfy any
concerns from head to tail when we look at the class
of men who manage these banks, and many Of the
most extensive fancy stock spectators of the day hold
ing prominent Positions prepared for any deve
lopement however startling and extraordinary it may
be. In relation to the fact stated few days since
quenciss the denials referred to have effect.
They generally believed In and out Of Wall street;
ali the particulars are wen known and freely discussed
Those intimately acquainted with the modus operandi
Of financial and commercial affairs, know that dealca-
items be and have been carried for years without
parties most directly interested having knowledge OF
the fact Forgeres Of extensive character have been
carried along for months and the discovery at last made
by the mcrest accident. In commercial firms, among
partners engaged in mercantile business, we have fire.
quently recorded the grossest swndng operations
| ispd nv Oue unem VIII fOr n me nj
known to the others Individuals have maintained
high credit for years after they have been hopeessy
insovent There at this moment in this city
hundreds Of mercantile houses the members Of which
do not know whether their affairs sound and SOL
many others who believe themselves wealthy, but who,
in fact could not wind up their business and pay Atty
IN financial ana pursuits know that dangers
beset them every sde and that it is impossible to tell
when something may not occur to destroy the best laid
plans, and drain away the product Of long period of
industry appears to be principle pretty generally
acted upon, to keep what you have got and get what
you and to anass wealth, honestly il you cam but
at all events make fortune, with the idea that the
end sanct6es the means The banks practise upon this
principle sste ,S The ~, rapid increase q these
mutation Of private capital in the hands Of private bank
ers, has created rivalry and competition which
danger Instead Of dscountng the best business paper
in the market they loan upon all sorts of fancy stocks
ators of Wall street. instead Of the heaviest and wealth.
lest commercial houses Of the CITY, It is this chang in
the system Of doing business, in connection with The
necessity Of paying large dividends capitals
which has led to the defalcations alluded days
since There in this city hftydve banks with
aggregate capital Of $40 373 42 Five years since
the less than half the number with half the CAPT
tai The amount Of regular, SAFE legitimate business
Offering is enough to sustain all these institutions
and the contest for the custom Of stock spectators has
therefore been very great Those who have got the
most Of it have made rather slim profits far and the
certified, worthless che cks in hand put down TO
the amount Of profit and loss there would be left in
some of these banks mighty small balance for the next
semi-annua dividend. One of the banks named has al
ready passed one dividend account Of losses and 1t
will pass another In another the defacaton was dis
covered few days after the last dividend had been
paid and it will require the suspension Of at least two
semi-annpal dividends to make the loss These are
some Of the results Of direct and Indirect stock pecua
tons, and we may look for many more.
The losses fancy stocks during the year 1854 have
been tenfod greater than during the previous year. and
may therefore look for financial developements
Since the LIST Of July last there has been an average de-
cline in fancy stocks Of full hfty per cent and that de-
cline upon the immense amount Of capital involved in
that class Of securities has swept away nnumerabe for
tunes and actually bankrupted thousands Of spectators
The depreciation in stock securities Of every description
during the past twelve months has been least thirty
million Of dollars That amount Of money has
been lost and there is very little doubt but that the
banks have lost their share directly more than their
share indirectly The losses in speculation In 1852
which led to the extensive dcacatons a the close Of
that year. we're tfing compared with those which have
been realized during the present year. and those who
are posted upon Wall street matters know very well
where large portion Of these losses win ultimately fall
We must te prepared for the most extraordinary
nouncements OF fraud and laundering for they are
to come The Wall street banks arc at the core
ten They may for time longer present fair
terror and manage to psy regular dividends but they
ire corrupt and bankrupt ssd Of those days It win
be made apparent.