The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-09-04

TOte Soo15 AooSoo
Tho statement Il will DO scen Is In every respect
surprisingly probable one.
The revelations made at the meeting Of the
/. creditors Of Ketchum, Son Co., Friday last,
were calculated to restore public confidence In
private banking houses, and private banking, not
only this country but elsewhere. may be sad to
have sustained blow in their failure from which IL will
not soon recover. The failure OF the London banking
house Of which Sir John Dean Paul the leading
ber about eight years ago. and the subsequent convic
ton Of the latter for breach Of trust In Incorporating
securities lodged with the bank by one Of It's dcrositor
did much to undermine confidence In private banks
the forgees Of Fauneroy many years before, and for
which, like the notorious clergyman and forg,r Dr..
Dodd, hc suffered the penalty Of death. The bank of
Sir John Dean Paul, strahan Co., in the Strand,
London, of the oldest in England and
its failure and the embeszlemcnt involved
something than nine days wonder More
recently another very old and prominent private banking
house in Manchester overheard although under
such dlscredtable These and other SINH
lar failures have done much towards giving impetus
30 the extension Of the joint stock bank system in Great
Britain and within fow years the progress Il has made
Ia unprecedented in the history Of banking The joint
stock banks have the merit Of publishing of
their assets and Liabilities at stated periods and the de-
posto have the security Of hundreds OF persons where
they have the security Of only under the private
OustnoSs un0er ldUer Stcm Is
stcadi decreasing, while the other Is steadily
Improving. and although corrupt management has
transpred under the joint stock system-as wit
the Royal British Bank Of London and the
Leeds Bank explosions-they have becn on the
whole 90 much has the business Of the
Joint banks lattcry abilities Of
ten Of tho most prominent Of their number London
amounted at the close Of the hafyear ending June 30
last Gsj oS5 and their zoo s12 and
per cont per to i've, the average being about
twenty
According to the letters read at the meeting Of the
creditors Of Ketohum Son Co., referred to, appears
that long since the LIST Of June hast Mr. Swan
o! the junior parnors Of the abstraction OF
securities belonging to the nrm by Edward B. Ketchum
for purposes Of private speculation his part Mr.
Thomas Bclknap Jr another Of the partners In letter
dated August 20, said, I'm looking the loans
and securities about the LIST Of June. Mr.. Swan
found that there missing $500
United States and thrce-tenths per cent
notes. s3soooo United States legal tender Ave per
notes and slo5 900 twenty United States bonds
Upon being taxed BY Mr. Swan with the abstraction Ed
ward admitted IT, and that he Specializing on his
own accounts but asserted that tho securities were
within his control II LITTLE time was Afforded him.
He then goes 10 say that "Mr Swan informed me Of
che case oncc; and further, that mr. Swan and my.
self both OF the opinion that oy holding him the
threat exposure he would be induced retire from
speouatons and make good his distractions; and So
ne continues 1--WE permitted tho matter run aong
but apparently without informing the senior member Of
shs arm OF the condition Of Affairs; for Mr.. Morris
Ketchuu his letter to tho creditors Of the r dated
August 81, says:-
TIL tho morning Of the day after he absconded never
had the slightest doubt OF my sons integrity;
supposed him capable OF doing wrong TO any one and
desst OF all TO mo; even now his conduct Ia nexplcablc
and cannot believe he was In his right mind when hc
90 cruelty wronged you and Since the failure OF
arm the two following letters have been into my
hands: thoy explain themselves The wri could
never have supposed that the taken beyond
the ability Of the house 10 replace, and the secrecy
thorcforc the dictate equally Of good sense and
blindness do not blame them, for they acted accord
ing 70 thoir best Judgment and under trying clrcum.
stances They have filed prominent positions In my
house for many years, having dcscrvcdly my entire
oonAdence unmpaircd by the decision they came 70 in
their efforts 70 regain the securities sbssracted.
- Tho policy Of the two junior members Of the nrm In
Keeping secret from lie senior member facts Of such
grave importance 70 the house and It's creditors
nero Involved open 10 serious criticism and the subse
Quent unqualified approval Of their course BY Mr. Morris
Ketchum sounds strangely enough coming from abanker
OF bin experience and position. II 10 more than
probable that on the LIST Of June last Edward b.
Xssobum had Incorporated only small portion Of the
900 which he known 70 have distracted ana
the forgeres Of gold checks Of more recent DATE
The Inference therefore IL that had the defaung mem
Rs Of W Arm besa broushs promptly 70 N account az