New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-06
HOW TO RUN 4 BANK AND AHHf
PUBLIC TREASURY

Tbis sooms IN he a good time for nnancia'
ovomirot,ons. When Mr.. Secretary Oari.oh
ron o,vav with 100000 of the money Oh 'ne
Union Trnst Company and it was thereupoh
discovered that he had been using the funds
of the Institution in private specuiations "i'
inc a period of some years, there was gen
eral exclamation of amazement. Inc DIRECTORS
were severely and very justly censureu ior
leaving their business at such loose ends tna'
any employe could systematically TOD theni
pnder their very noses and the question was
ostad whether after all it came to this, that
the man who put his money INTO q Dahk OF
trust company had no security LOT iVs sale.
keeping except the personal integrity OF
officials whom he knew nothing about. 1t turns
ont. however. that the Union Trust Company
was not worse managed than other institutions
The Merchants Union Bank OF Dubuque,
Iowa, has just gone into liquidation atter inc
discovery oha theft of $33O,OOO, by the fresi-
dent and the Cashier This defaicatloh aiso
must have been going on for a consideraoic
time. 1t was managed partly by over-dratts'
nar,ly bv discounting worthless notes, partly
by simple till-tapping covered up by false
entries. OF course if there had been an occa-
sional examination of the affairs OF the DahK
the robbery must have been discovered; out
the Directors of the Dubuque bank trusted
their President and Cashier exactly as the
officers of the Trust Company trusted their
Secretary. No one will be surprised if IN
clearing up the traces of damage by the re-
cent financial storm great many more delai-
cations and irregularities" are brought 10
light for it would almost seem as IL the
banking system of the United States rests
upon boundless belief in everyb0dys honesty
In public offices things seem to be no better.
The Treasurer and Assistant Treasurer OF
BROOKLYN are under arrest and indictment ior
theft. A clerk in the Brooklyn Controller
Office has been arrested for stealing city bonds
and an investigation has since shown that
other bonds are missing, and the office is more
or less in disorder. How far the thefts have
gone cannot yet be ascertained. The inquiry
is still proceeding. The most alarming deyel-
opment of the time. however, is an irIegularlty
in the Treasury of the United States. By the
failure of the First National Bank OF wash
ington the fact came to light that Mr.. Secre-
tary Richardson had deposited i'll that institu-
ton slS7,782 of the public money without
security. We call this an irregltlarity; is it not
worse; is it not distinct violation OF the
Banking act which makes it obligatory upon
the Secretary to require Of the banks
chosen as repositories of the public
money satisfactory security by the deposit
of United States bonds or otherwise" for its
" safe keeping and prompt paymentP" Mr..
Richardson allowed the bank to hold S2S7, 1882
of the public money on the security of only
100000 in bonds and it is charged that he
did this against the circumstances of Treasurer
Spinner, after the unsOundness of the bank
had been ascertained by the official examiner.
The defaulting presidents, and cashiers,
and secretaries, and clerks can be punished
by the law if they are ever caught.
The loosely managed banks and other
institutions must pay the penalty of mis-
management in financial loss and the ruin of
their business. But what shall be done with a
Secretary of the Treasury who, by disregard
ing the imperative provisions OF the statute
for the benefit of political friend, allows the
funds of the United States to be swallowed up
in bankrupt institution If President Grant
has any regard for public sentiment and any
desire to regain the confidence of business
men, he will deal with Mr.. Richardson's
delinquency promptly and sharply.