The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-20

Increase OF the epidemic.
Flsstsr Among the National Bssks.
Tho revelations made In the HHRALD through
our special correspondence from the West, with
regard to tho condition and management Of the
national banks, have produced flutter among
the managers and defenders Of these institu-
Hona In ono Of the letters Of our correspond
snt the banks of Detroit are spoken of and their
former irregularities exposed He referred par
ticularly In one case TO tho reported doings Of
cashier of one Of them The presidents Of
four banks In Detroit have thought proper to
publish card over their signatures, stating
that mono Of their cashiers are guilty Of small
feasanoe In ONCE" Our very careful CORES
pondens who Is so impartial that In the same
letter referred to he speaks of the banks of
Michigan as being generally considered in
healthy and fourishing condition." does not
use the expression "malfeasance in Office"
and does not speak Of the present time He
speaks Of what was reported as having occurred
before, and expressly states that the irregulari-
ties Of this cashier with the bank had been ad-
justed. The shot of our correspondent was
effective, - is seen by the squirming Of these
national banks; but the quadruple shots Of the
four bank presidents have fallen short Of the
mark. They were SO anxious, in fact, to de-
fend their corrupt and infamous national bank
system against the exposures made about 1t
that they fred when there was no object to aim
at II Ii the wounded In battle only who cry
out with pain. Considering the rotten condi-
ton and mismanagement' Of the banks In the
West we may expect to see a great deal more
squirming from the exposures our reliable cor
respondent Is making.
We notice, too, In certain Washington cor
respondence, evidences that the Treasury
Department also Is becoming alarmed ct
the revelations made through the HERALD
It is said the Treasury is simply secured for
it, deposits In the banks by the government
securities lodged with it This naked and ire
sponsible statement may well be questioned.
We believe the contrary is the fact. But who
d to secure the poor dspOsisors and those doing
business with the banks, when they failf The
government and its organs are acting infa-
mously by attempting to delude the public a.
TO the security of the banks, whom It ought to
be made known that they are no more safe than
any other specializing private firms. The gov
eminent ID mot responsible to depositors nor
for the way In which the banks manage their
business. Even In those matters In which the
National Bank sot gives the government SUI
pervision or authority to act nothing Is done.
It b shown I'm our correspondence that the
agents Of the Treasury Department, whose
duty il Is to inspect the banks, too often neg
lect their duty, and sometimes connive at
irregularities. We could hardly expect any
thing else, when we look 1t the vast power and
means Of this gigantic monopoly.
As soon as the people learn-and 1t cannot
be long before they win learn-that the high
price Of provisions, as we'll Is Of most things
that enter into general consumption. may be
traced to the national bsnks-to the power for
forestalling and controlling the markets which
the government has given them-there will be
. general demand for the repeal Of the act
creating them. The very deposits which Mr..
McCulloch places In the hands Of the banks are
used to forestall and control the markets and to
Cypress the people. Yes, the peoples money
is used 10 increase unnecessarily and largely
the cost Of living. Taking the national bank
system altogether it Is the most powerful and
grinding monopoly ever instituted or fostered
by government It is, in this republic, where
the people are supposed to rule, an Incredible
anomaly. Congress should lose no time in
breaking It up, root and branch, before It be-
comes too firmly established. If the present
Congress has not the patriotism and sagacity
to do this the public will soon call the unwor-
thy representatives to account and send better
and ADLER men to make the much needed
reform.