Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-12-19
NATIONAL BANKS.


The Baltimore Gazette says that one o
the most plausible arguments used in ia
vor of the organization of National bank
was the almost perfect security thai the.
would cfer to persons holding their note
and having dealings with them. So ia
as the notes In circulation are concerned
the bonds deposited with the cOmptrolle
of the currency, and upon which the not
circulation is based, may be regarded a
protecting ~nets-holders nom ultimst'
loss, But It was further argued that thu
rigid supervision exercised over the op
CREATIONS Of the banks, by the official ex'
sminer, appointed by the United States
and making regular reports Of their con
dition, would insure the safety OF b
funds to depositors, and guard At the
same time the interests Of the stockhold'
ers. such were the arguments sd'
vancsd by the advocates Of National
banks, and they made g deer
impression upon the public mind
even to the extent of believing that Inn
plicit confidence might be reposed In
trust so administered and 30 ngidly
watched over. With ample security
lodged with the comptroller of the cur
rency for the redemption OF the notes
with the banks called upon to make s re
port Of their condition, not at stated times
but on any given day the comptroller
might select, and with special govern
msnt official duly empowered to make
the most searching inquisition into the
manner in which the banks were con-
Quoted, the correctness Of their books, the
extent of their loans, and the character OF
their securities, it was easy to ssk Whist
more could possibly be needed.
We now see, by the failure OF the
Ocean, National bank of New York, and
the subsequent failures OF the Union
square and Eighth National banks Of the
same city, that the entire value Of this
system of checks and guards, which was
thought to be so perfect, d~epended-so far
IS the depositors, the stockholders and
the creditors OF the National banks,
other thar the holders Of the
banknote currency, we're concerned
upon the integrity of n man; that man
being the United States Examiner, Mr..
Calender. It must be obvious that to re-
tain the confidence Of the public, such a
man should not only be q thorough &C.
countant, but proof alike sgsinst the
wiles of bank presidents and the bland
ishments of bank directors. 1t
must be still more obvious that, from
the moment it is known thst he
has been mixed up with bank transactions
of 8 questionable kind, every official re-
port made by HIM to the department at
Washington becomes tainted with suspi-
cion, and his career Of usefulness is over.
II, in addition, he certifes under his
own hand to the soundness Of 8 bank
which soon afterwsrd proves to be rotten,
it is as difficult to chsrscberizs the gravity
of his offence in fitting terms as it would
be to fix a limit TO the scope of the injury
that such misrepresentation are cslculs-
ted to in iict.
Now it is charged that Mr.. Calender
has lone both these things.
The Ocean bank is said to have csshed,
anu W INV uOAu LIS CAOCA5 ~ sAO ahAOAAh
of from sixty to seventy thousand dollars;
this money having been advanced to him
Hypothetical Western securities of
equivOcsl value. Ii is also known, that
only some two months ago he certified
that the bank was perfectly sound and
of credit - although for eight
past, its standing has been re-
gsrded with distrust In financial circles,
and cautious depositors we're withdrawing
their accounts.
The tendency Of these revelations is to
work an injury to the National bank sys-
tenn, by showing how easily distrust Of
one MANTLE bank examiner, who is the
pivot upon which the system turns-msy
popular confidence in the whole Of
the National banks. II Mr.. Callehder's
statements are proven to be false in re-
spect to the condition of M National
bank, 1t is 3 reasonable inference that
they may be equally false in regard TO
The Impeachment of his truthful
ness in one instance goes far towards de-
stroying his credibility in all other instsn-
oes, and as a natural result the National
banks, whether prudently or rashly con-
tucted, whether solvent or insolvent, are
grouped together in the public mind, and
are more or less injured thereby.