Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1860-01-31

uumOer ID Tue tOWO Win
EDlroRs DzxocRAT AND News s:-The
folio wing communication was prepared for the
Auscatine Lo~ssal. every word Of which the
writer has reason to believe 10 trua, and is %
regarded by this community. You have no
ticed the course Of the Journal for the last two
years, and will remember how much it hss had
to cay about the insolvency Of men and institu
tions in neighboting cities. but now when II
comes home to our own city, the Journal has
not . word to say. and refuses TO publish this
article. on the principle that it would sound
bad abroad. ED must be hushed up. for the
credit of our city:
MUecArINg, Jan. 2sth, 1860
Editors .ournal-Why 10 it that you. pub
lie Journalistic. have had nothing to say about
the recent events that have trsnspired in our
midst, events Of much importance 10 the busi-
ness men Of this community. 10 it that you,
Rip Van Winkle like, have been aslssp, and
have net heard the news? Fearing such may
be the case, permit me 70 call your attention to
the past and present condition II the Muscs-
tine Branch OF the State Bank Of Iowa.
Organized some twelve months ago with .
paid up capital Of $4,000. (lsrger with one
exception than any other branch in the state,
enjoying the confidence Of this community,
which is one Of the most wealthy and reliable
in the state, with every prospect before them
of doing 40 honorable business. profitable alike
to themselves and to the pubic commencingim
medistely after the Isvulsion of 1873. when
all men had been taught caution. under the
- Al,
seem as If its career must be long one. and its
futu, bright with success.
What has been the result Their board Of
directors. guided by motives which they alone
can explain. folsted into notice and placed in
positions of responsibility. persons whose repu
tation % bankers was far from enviabls, we're
without cash means. known 10 be heavy Dor
rowers. . d then permitted them to have and
II aintain an undue control Of the affairs Of the
branch, although they published month after
month, statements Of the condition Of the bank
! hat every sensible man knew were unnatural
il not false. Still those to whom the stock-
holders had entrusted the affairs of the bank
aud all their interests, slept on or "winked" at
it that latter l should cay. as | am rei ably
informed that thew loaned $4,000. about three
fourths Of the capital stock, to two of their
ockhOlders
During the first week Of this year, Price Of
Davenport, and Clark Of Iowa City finance m
mittee of state board. spent three or four days
examining into the condition of this branch =
They reported to the stockholders that their
capital stock was, by bad msnae sment and
stealings, all lost. and that the branch must be
wound UP, but on further consultation, and in
confederation Of certain mortgage, which are
much like the bonds and promises Of Cook 4
Sargent tvo years ago when they fret failed
they concluded to let it rnL for the present.
1t 10 claimed by the State Bank men that it
ie to the interest OF oil business men in Musca,
tine to keep up the branch, that its failure
would be heavy blow to our city, which has
so bravsly gone through the recent depression,
and with 60 much credit to her citizens that
after all she has said about wild cat" and ire
sponsible institute ne. she could not stand such
a blow.
am quite ready to ackno owledge that it is
q severe blow to Muscatine and each and,every
ci:iz n, that the Branch should fail. but the
time to raise that question has gone by it has
practically already failed. and the question is
whether 10 her present conditi IN it 10 better to
wind it up or attempt to sustain il. l think
this question is easily answered 10 there a
business man in this ETY. who does not believe
e,
if Cook d Sargent had closed their doors two
years ago when they were practically broken.
than to have "kited" it until this winterl The
citizens Of Davenport can answer this questic o,
f the business men Of Muscatine cannot 1t is
folly. worse than FOLLY to attempt to sustain q
broken institution, the sooner it is wiped out"
and we know where We stand, the better for
u.s. The strength Of Muscatins during the late
depression vas the fact that her business men
knew where they etood and that the foundation
vas firm when the hard times set in they
came down to this basis determined to 70
through.
Do such institutions as this branch assist bu
siness men through such times - the winter Of
1878. 1t would only bury them in its own
rubbish: An institution that could not live
through the year 1889, where would it have
been in the winter Of 1887 e, when strong men
trembled? 1t 10 uselses for them to indict Ger
tain officers, and endeavor to hide behind their
evil deeds Will this Indictment of one man
satisfy our citxsnsf II the managers had
used ordinary diligence, and displayed ordins.
~ business capacity, these things would not
have been the just penalty has come home to
them, they suffer in their pockets, and what is
far worse. those who con ded in their ability
to manage the institution. have had that conf
dence betrayed. Men who attend to other
peoples business. and are "Jacks Of al trades, y
generally neglect their own. but they must no
shirk the responsibility. Bsnks and bankers
must have capital, bona fds capital. Bonds
and mortgages are good in their way. ~ is
faith. but are poor things to bank upon. An
other instance where these gentlemen have
shown their incompeteney, or else have suffer
ed . great wrong to be perpstrAt~d. and snoth>
er reason Why this institution should not re-.
eeivs the cont Ltsnancs and support of the husi-
ness men Of this place, 10 that during the last
twelve months they have permitted certain
members Of their organisation. standing behind
the counter. to carry on perfect system OIL
can call it nothing but fraud.
When psrsons ignorant Of business have call
ed at the Branch Bank, with money, desiring
to deposit it on time and receive interest for the
same. they have been met BY these men and
even clerks 10 the employ Of the bank, with
proposals that II they would leave the money
so long. they would pay them rates-rather
steep. Certificates Of deposit have been re-
ceived and in blissful ignorancs. but what their
funds were safely placed In chartered insti.
tuition, these poor persons have gone their
way. Do the msnsgsrs say they we're not
aware of such systsm A bright set of men.
Why it has been the town talk. Will they
cay they knew it I then the verdict 10 ''euil.
W" Above have said their entire capital
was !oss. how much more. reports vary; but
t, show the entire rottenness Of the branch,
it is liab'e for oil these certificates, vhe, her
responsible and able to pay them 10 another
ques ioo How much these certificates amount
TO do not know and would like to see the
man Who does While you are slespius. Mr.
editor, will occasionally note the pseuliaritiss
- the thing unwinds. and post you.
rRIeND TO TIE Taus lnf.a.sn 81 AuscATIXs.