The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-01
Affairs OF the Bank OF Pennsylvania.


On all sides there suggestions of reforms in
our banks and in banking. The thing is no doubt
needed but the present is not, probably, the most
favorable opportunity for pressing any very radical
changes. The banks are in a crippled condition,
and being 80 interviewer with all the leading inte
rests of the country it would result in widespread
disaster to attempt the imposition OF such condi-
tons as would generally, and at once, put them
out Of existence. So far as Pennsylvania is con-
cerned, there seems to be growing disposition to
limit the lowest denomination OF bank notes to
twenty-five dollars in order to remove all obstacle
to the free circulation Of all denominations of coin,
up to the double eagle. This feature of reform has
been urged for years by those who have been es-
teemed somewhat radical on the subject, but thus
far unsuccessfully, because the proposition has
6se1 the BY s s
Board of Trade Of this city is, on this point, on
the side of the limit to twenty-five dollars as the
lowest paper issue, and learn that very distin-
guished gentleman of city, once prominent in
Office in the federal government at Washington, and
still we believe, acting in concert with the political
party usually found on the side of the banks has
pressed himself in favor of the same limit This re-
form is much desired on many accounts but mainly
that it will remove the great mass of the community
from dependence on banks, and tend to materially
lessen the liability to fluctuations in currency and to
such terrible revulsons as the the effects Of
which we are now suffering from. But there are
reforms that the banks owe it to themselves to
introduce-and, among others, and one that should
claim immediate attention, is that of the election of
directors The meetings of stockholders for this pur
pose will be held in few days. when it is earnestly
hoped that will be taken to secure in the first
place, men Of matured judgment-those who have
shown prudence in the management OF their own bu-
siness and who are more allied in their transactions
to the practical than to the speculative. We have
had too many fast men, and, as general thing
too many young in the directories of our banks.
A bank, just now, IL no place for those who do
dashing business. long and tedious labor is before
our bank officers to bring their respective nstitu-
tons into credit, and in favor with the public What
will be most wanted is sober Judgment and patience
There must be no attempt at inching out of difficult
ty by any hazardous stroke of policy
All persons sympathising with what is known az
adroit nancierng should be shut out of every board
of directors, and their places supplied with plain,
practical propretors Of the respective banks whose
affairs they may be called on to administer. In all
questions of political rights property should have
little to do in the choice of representative But in
all subjects of pecuniary it il important that
pecuniary interest should be consulted All other
things being equal our bank directors should be from
the largest stockholders. 1t has unfortunately not
been so with all our banks. The old Bank of Penn
syiraia trhich hes PROSTATE, svih capital of
81 1915 900, had its directory eight persons icho held
but eghfyf,ro shares in in the stock Of the bank-a
fraction more than an acreage of ten shares each Two
persons held but five shares each; SIX two shares
each; one, ten shares; one twelve shares; one, ff
teen shares; and one twenty three shares Here is
majority OF the board managing and directing near
ly two millions Of capital and pecuniarily interested
in little more than eight thousand dollars of the
stock How much the cause OF the wreck of the
bank may be attributed to this lack Of personal in
terest on the part of the majority Of the directors is
part of our present purpose to show. All that we
desire by calling attention to the fact, is to point
out the improperly, not TO say impolicy of any
such action on the part of the officers of banks
at the coming elections-for it is well known fact
that the officers, to very great extent do make the
directors. Select good men, but let them give the
guarantee Of prudence and honesty of purpose
which is implied in liberal investment Of their own
means.
From the Philadelphia Ledger, Oct SOL
The investigation which has been going on for
week or two past, by the directors of the Bank Of
Pennsylvania. into the affairs Of that institution,
understand has been brought 50 close, that
invitation Yesterday extended to the Presidents
Of the other banks OF the city to examine the result
This declined the ground that the city banks
had appointed a committee Of their number to repre-
sent them on the subject and to interfere in the mat
ter until that committee had made its report would
be indicate and improper We understand, gene
rally however that the exhibit is not favorable The
immediate liabilities OF the bank, in round numbers,
independent Of capital stock, we arc informed, is
about tive millions OF dollars; TO meet which there are
assets appraised at one and threequarter million. IL
this appraisement and amount of liabilities cor
rect, he bank iro,ad seem TO be unable 10 pay
its debts, tearing nothing for stockholders. We
have feared for several days an unfavorable result
of this examination, but did not anticipate one
quite so calamitous as is here reported. The nomi
nal amount Of assets Is, of course, more than the
told there Is a hiatus Of very considerable extent
in the hanks accounts covered by representative
value whatever. In every properly conducted bank
the ledger account will show side all that the
bank owes, including it, capital; the other a that
Is owing to the bank, and the two are made to ba-
lance, something being received TO show for every
dollar expended. This the examination nj the Bank
Of Pennsylvania, we are informed, has not thus far
been able to demonstrate The business of the inst
tuition seems very much az loose ends. Within day
or two assets 81 the value Of a hundred Thousand
dollars said 70 be entirely reliable, were found stuck
in an out Of the way pigeon hole The bank holds
we believe. about Sl75 900 Of its stock; por
ton Of this however, has been pledged to one or
Of the interior banks, through the agency Of
third party, who now stands liable TO the interior
bank for the amount. The committee representing
the city banks in this matter n majority Of IT, is
understood 10 lie averSe to attempt at rcsuscta-
ton, and the indications that " riH 20 into
liquidation, and probably ont If erisfenoe, ieGcing
lille for its shareholders did lis great prototype.
The Bank Of the United STATES. Noteholders and de-
poeitors will probably be paid.
Literary and Theatrical Law Suit.