New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-05-14
,xrrREsTING INFORMATION.

The United States Bank Examiner, appointed by the
Controller of the Currency on the common principle
of locking the stable-door after the horse is stolen,
has made report upon the recent failure OF the Mer
chants National Bank of Washington. The cause OF
the failure was the suspension of Bayne Co. oil Bal
timore-Bayne & Co. having got deeply into specula-
tons, and so on. The circulation of the bank is fully
assured so that billholders will lose nothing, which
is comfort. The United States Government now
ever il the creditor of the bank for S7623 81, the
most Of the money coming from officers oil the ray
Department Lieut.. Colonel Paulding alone deposit
ed over half million. To meet this deficiency the
Government holds securities of the bank to the amount
of 100000
There can be little objection to any officer OF the
Government depostng money in duly authorized
banks. Some of these deposits however were made
by Government agents for the purpose OF saving he
hank The Examiner mentions that at meeting oi
cerain friends of the bank it was stated that unless
Ravne 4 Co. could secure from $3.50, 900 to s2oO-
900 without delay, they must fail, and that this fall
pre would involve the failure Of the bank. Al this
meeting held April 30, Liout.-Col. +. +. Paulding
Psvmaster. L. S. A., was present He proceeded next
dav TO place 5000 900 in the bank two other officers
Of the Paw Department adding $4,000 more. When
the failure came it was found that Col Paulding had
$500 so 70 the bank the Others having drawn out
the best portion Of their deposits The amount oil H.
Iiydual deposits was only SJS6lO ~ OF loans
sli5. 200; while there was duo other banks and
bankers only s65,-72 26
To make this palmer, we find bank, certainly not
regarded as particularly d" safe" by the people, nor
even by the other banks Gas we may see from the
small amount of deposits and Credits permitted
upon capital of 1906, O0O to issue $780, 900 in notes
and receive 1852 3l2 81 from the Government i'll de-
posits. The Treasury Department, or rather the
Controller OF the Currency, permits bank to run
over $500 900 in debt to the Government, when the
least inquiry would have shown that this debt was
being incurred to help the house of Bayne a Co.
in baltimore which house alone had STA 900 Of the
money of the bank or rather the money of the United
States. obtained through the bank, and gone, Heaven
knows where,
The whole thing looks bad-yery bad-and reflects
sadly upon certain Government officers Lieut-Coi
Pauldng WILL we fear, find it embarrassing to eX-
plain his acknowledgements to " Bayne a Co.. de-
posted to help " Bayne 4 Co., for whom help was
HOMELESS The Controller of the Currency might, be
amably asked whether it Is customary to send Bank
Examiners only to morbund banks, and whether an
institution having but S3s $40 % of ordinary business
deposits--showing what businessmen think of the
concern--s to have the best part of million from IN
Gle Sam-to fly the kites of certain " Bayne Co.'S.
Other officers of tho Government in the Indian De-
partment, tho Treasury Department, the Post-Otfee
Department and the Pay Department, might be
asked whether they do not find accommodation enough
in the Treasury for their funds without getting into
the affairs of " Bayne Il Co.'S" Altogether there Is
fine field for painfully interesting inquiry.