The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-07-20
National Banks.

made report. They fret took up the case of the
which institution, at the time of it's failure there
wore nearly $766,000 OF public money on deposit.
AT tnat period, and for some time previously, the
to hoaSe use OF Sayne Co.. of Baltimore, indebted
& ~ Inc Dank Tor sum nearly equal to this amount
ms Inis mouse was tho principal debtor, and had al
most al the available funds OF the bank without
having given or been required to give any securi-
" Whatever for their debt, which Was renresented
oy Mr. Huyck, the President of the bank. TO have
many many originated in sever thirty bonds of the
SnlIeu otates, transmitted by tho bank to Baype
d Co. on the 1st Of January last. These bonds
seem to have been made the pretext for n false
ana deceptive statement to the Comptroller of the
Bayne 4 Co: as being in the possession Of the
BANK, while, in fact, they were then beyond con-
All the testimony taken bv tho Committo 20 nrovos
the management of the bank to have been in the
~ hest degree illegal improvident, reckless and
aisnonest, and that the failure caused by the
without security to Bayne & Co., and that tho
failure OF that firm necessarily involved that of
the bank; It is shown that Huyck, as the Trea-
dria Railroad Company, Illegally issued s2s5 600
worth OF it's stock to prop his transa, tions. and
snat the organization certificate Of the bank itself
sented as owning 600 Of the 1000 shares. when he
had not one dollar thus invested No institution
tne committee cay, could be safe in the hands Of
men m so reckless and unscrupulous and the failure
OF this bank, involving 80 considerable a loss Of
Pu6hc money, must be attributed wholly to the
nio dishonsst and criminal conduct sf the men who
The only other loss Of public money deposited
IN nasl0nai bank which has come to the knowl-
edge OF the Committee is in the case Of tho We
mango National Bank, Of Franklin PennsyIyania
which failed on or about the 2Sth Of March. Il
wa WAS depository bank, with $50, 600 in bonds and
oaps geOs as for the deposits its
managed for the benefit Of Culver, Penn & Co., Of
New York, who had nearly all the funds of The
bank their debt to the bank being over 5000 ooo
IN n &h4 g.. ~
bank. " 'ne
Many of the National Banks which were con-
ertions to withdraw their old circulation, and in
many instances pay it out, and take measures to
a aafeP y IN a thereby receiving the bene
the national currency notes received from the bu-
reau or the Comptroller. 1t was stated to the
committee that there we're instances Of banks
circulation had been withdrawn, and again pay-
ing II out In justice to the very large majority
Of National Banks that are honorably conducted,
IL seems right to give In the report all the testi.
miony to the committee on this subject, thouqhi.
Is Is not SO definite as they desired. n-e OF the
sented OF Springfield
in Bank ir Bostss 70 receive their State
Bank currency and put so it again n, in eireula
soa Dy tas aoD,Sas National al
make loans Of their State Bank notes for cirou,
aafa The Bank IS Ega aaa / 6,tY N u
jersey and in the 81 ntsros" shs Ms"tq9 oqq sbe
York to pay out their State Bank issue Some
State Banks do no legitimate banking business;
but appear to have been organized simply for the
benefit OF the circulation. Banks OF this charac-
ter are mostly owned by brokers or private bank
ers, and are carried on in conjunction with their
offclal business. It was stated to the committee
that one bank OF this class, the First National
Bank, OF Fenton, Mich, with a capital OF $50 OOO
was depository for public money; and on the 25th
May last, when it was examined, the only account
on the books was that Of F. E. Spinner, Treasur-
or OF the United States, credited with SIT OS5 for
which the Government holds $50, 900 of United
States bonds as security The National Bank Of
Michigan, at Marshall and another National Bank
at Lansing, both In Michigan, are represented to
be OF similar character to the bank at Fenton
but neither Of them repositories.
The Committee satisfied that the existing
law does not confer the power to correct and pre-.
abuses OF the banking privilege, confessedly the
law to which their attention has been called by
the testimony before them.
The bill the Committee have reported to amend
the National Currency Act contains many pro-
visions to remedy the defects of the existing law
power to restrain banks which he knows to be i'm
properly managed.
In regard to the gross abuse of their trusts as a
depository of public money by the Merchants'
National Bank, the Committee are of the opinion
that legal proceedings should be had for the pun
lshment OF those OF its managers who are respun-
sible for that breach OF trust, and also such pro-
ceedings as may be necessary to recover any por.
tlon OF the money; and as it was mostly money
intrusted to disbursing officers of the War De-
partment, the duty OF instituting and conducting
these proceedings should be committed to the War
Department. They, therefore, report re p)lution
for this purpose