The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-09-17

given reports, have reached us that the assets
OF the bank are not so valuable as was esti-
mated and until the official figures are pub
lished, the real facts will not be positively
known. A dividend, we believe, may, how
ever, be looked for of some so per cent.
within six months, part of which will pro-
baby be paid in two or three months.
These two events are suggestive at the pre-
sent moment. To the managers of our banks
throughout the country they show very clearly
that the loose management which under the
State bank system might pass undetected and
uDpunished, cannot long survive the checks
and restraints imposed by the National Bank
ing law. The publicity which is secured by
the monthly and quarterly reports, and
by the frequent visits of the official
examiners, who go through the books
and cash of every bank in the country at fire.
quent intervals, give admonition to such in
stitutions as know themselves to be unsound
to amend their ways, or prepare to have their
doors closed by the salutary action of the law
for the preservation of the public interests and
of the public credit.
Secondly, we have evidence that cut of the
1000 banks which make up our national sys-
tenn, the great majority are sound. More was
not to be expected than this. For during the
stimulus of the war initiation, amid financial
excitement greater than ever before pervaded
this country, there was the greatest possible
inducement to sanguine speculative men igno-
rant of banking, and unprovided with adequate
means to avail themselves of the golden facili-
ties which the new national banking
scheme seemed to otfer to get wealth
without working hard to earn it, Such in
stances there were. Less than score of such
national banks have failed in consequences
during the past three years. And there is
every reason to be assured that the weak, in
solvent institutions which are left are ex-
tremely few, well known, and closely watched.
Thirdly, the directors of national banks
should remember that their Office is not nomi-
nall but requires that they look closely into
the affairs of the institutions under their
charge. A card has been issued by the
Directors of the Brooklyn bank aboye-men-
toned, stating that they were not aware that
the Comptroller OF the Currency had warned
their bank of the defective reserve This de-
Tense is only an aggravation of their offense.
For each of these directors made oath, on re-
ceiying his appointment that he would
diligently and honestly administer the affairs
OF the bank" and that he would "not
knowingly violate or willingly permit
to be violated any of the provisions of the act
OF Congress" under which the bank was
organized. Now these gentlemen either ne
elected utterly to look into the books of the
bank, or they knew that the bank was short
OF Its reserve. And in either case they vio-
lated the solemn obligation assumed when
they accepted office. What penal conse-
quences may in such cases be incurred we do
not here inquire. The offense, in q moral
point of view, is sufficiently heinous. The
directors are by law appointed the sworn
guardians of the property of the depositors
and stockholders, to whom they are RESPONSE
BILE. The stockholders themselves, moreover.
should, from these failures, accept an admoni
ton. For when the capital of their bank is
lost, if there should be anv deficiencv tbav
must make it up out of their own pockets.
So far as the public is concerned
these responsibilities attaching to stock
holders and directors, and the mo-
uyes urging them to satisfy them
selves as to the sound management of
the banks in which they are interested
ot1er so many guarantees, besides those which
are secured by publicity and Government in
spection, that the banking institutions which
are so vital part of the financial organism of
the country Will be kept sound and trust
worthy Our national banking system is still
IN its infancy and needs improvement. But
such as it is, it will compare favorablv with
any this country has ever had before-witb
any OF similar magnitude and rapidity of crea-
tlon that has ever been established in any
oth,r country.
some OF those persons who are anxious and
concerned that few national banks here and
there should fail, may be reassured bv the
fact that these institutions fail because they
cannot comply with the searching provisions
OF the law, and that this law, while by its
stern application it destroys the rotten parts
OF the financial machinery, only does so in
order that the rest of the fabric may have
iorce and elasticity enough to resist all the
shocks with which future monetary revuIsions
may try its stability and strength.