The New York herald., 1873-11-28
Ought We to Return to Specie Payments.-.What
Is Congress Going To Do About It
TIE CHAMBER OF COMMERCE,
WALL STREET,


as an officer In other kindred institutions. The
President OF the Guardian Savings Bank was viii
liam M. Tweed, who was also director in sundry
institutions, one OF which-the Ocean National
Bank-notably came TO grief
' THE BROOKLYN TRUST COMPANY
possessed as q secretary R0dman, who at the
same time was the Deputy Treasurer OF the city OF
Brooklyn, using his position IN the one office to
serve his purposes In or out OF the other. The di
rect0rs OF the concern were men well and favora-
bly, known in the business and social community,
and some of them filed places OF trust IN other
banks and corporations. So in the Union Trust
Company. One OF its chief officers, useful and
prominent man, was an officer in the Western
Union Telegraph Company, New York and Harlem
New York and Mahopac, New York Central and
Hudson River, Lake Shore and Michigan Southern,
Toledo and Wabash, Union Pacific, Dunkirk, Warren
and Pittsburg, and Buffalo ana Pittsburg Railroad
companies. VI two OF the foregoing companies he
was also vice president, and probably, Is identified
with other corporations OF lesser prominence.
How many other men have thus diffused them
selves over the community and are to be found
generously engaged in the management Of
moneyed corporationsY The
EXTREME LIBERALITY
OF these gentlemen In thus giving their time and
services to the stockholders OF the institutions in
which they figure as directors is, indeed worthy
Of all praise; but where do they get the time to at
tend to such multiplicity of affairs and do justice
to each ONCE, to say nothing OF their own large
personal businessf Do they not IN Short delegate
their power to subordinates, and in shirking duty
invite the perpetration OF fraud' The question Is
one OF great moment to all who are interested IN
the stability and security OF financial nstitu-
tions, for unquestionably there does exist a lack
or responsibility the part of such directors to
both stockholders and depositors and, as has been
several times illustrated, criminal careless.
ness In the management OF the trusts which
they are called upon to guard. Who
for moment believes that Mills and
Rodman could have SO successfully depleted the
Brooklyn Trust Company If its directors had done
their dutys or that the Union Trust Company
would have been robbed OF hundreds OF thousands
OF doars9 or thar the Atlantic Bank would have
suffered at the hands Of Taintors In the instance
last named 1t has been stated that man whose
name for years had appeared among the list of
directors never attended q meeting OF the Board.
Can 1t be possible that the names Of these gentle
men are only used as advertisements or as the
yeneeriny that gives glossy outside to
s.3. SHAM REsPECTABILITYq
Now "what is the community going to do about
ita' Heretofore the people have had faith in cor
poratons because OF the integrity OF their officers
but recent events 60 far to demonstrate that this
confidence was delus0n and snare. Frequent
deialcations and breaches of trust have
shaken it to the core. The remedy for this
condition Of affairs is in laws, which first shall
make directors responsible to stockholders for the
faithful performance OF their duties, and second,
prohibit an onlcer director, trustee or manager Of
q financial institution from holding at the same
time two ofices or similar character. This
would prevent the ofncers OF one corporation from
using Its funds for the benefit Of another. IRE
sponsibility and corruption have long enough gone
hand In hand, and the commercial public would
gladly welcome an amendment. The SUBJECTS OF
SPECIE PAYMENTS, REFORM IN OUR CURRENCY AND
t..t, ,.st.t FREE BANKING
will come before Congress for discussion at an
early period of the session. when the doctors Will
report OF Mr.. Spinner, the plans OF General
B. +. Butler and Senator Sumner, and the
memorials Of the New York Chamber OF
Commerce, with scores OF other propositions
Will doubtless engage the attention of both
branches Of the national Legislature for long time
to come and II is to be hoped that out OF the mass
something like feasible and healthy system may
be adopted that will accord with the growth and
growing wants Of our country. meeting OF the
. CHAMBER OF COMMERCE
twill be held tomorrow, to consider various phases
of the financial question: that suggested by the
majority and minority reports OF the committee
The majority report makes the following points,
Ftrst-That the purchase OF United States bonds
be suspended II not already suspended by the force
OF circumstances. .t . f.4o. 44.
Second-That the redemption Of United States
legal tender notes be commenced on the 4th day
OF May but that the power OF reissue be continued
That the Sub-Treasury In New York be the APP
redeem at i other points also, If convenient.
1hfrd-That provision be made for the funding
OF portion Of the greenbacks II the addition or
gold to the other money OF the country should ap-
pear 70 render such measure necessary.
=. That the national banking law be amended in
BY more stringent requirement AZ TO the re.
setse oI 70 per cent or the redemption OF bank In.
He aepHseeness. 30 that the whole shall be N legal
throughout the Union. .l-' ~ ,1f
There care are two practical defects in the existing
part Of the reserve, whether IL is or NOT the prop
ery o. me 6ank and sometimes when it is held as
not the spirit Of the law Again, country bank W "a
required TO hold 10 per cent OF its inde6tedness
bank. The operation Is this country banks de- de-
Roslt, with one or more city banks, $40, ,O00, ,OOO
customers Of the city banks $500 600 ia Sus 70 sne
reserve) Is made TO redeem 600 or Indebted
THE MINORITY REPORT
is to be presented by Mr.. George Opdyke. Il IA an
accepted fact that the condition OF the country de-
mands OF Congress o careful consideration ana the
prompt adoption OF measures Of relief The remote
cause OF our financial trouble is to be found in the
great expansion OF our currency during the late
war and the consequent increase In the prices OF
labor and commodities. Before the war the crcu-
Iatng medium was less than $40 per capita. Dur
ing the war Its volume was increased to $23 per
CAPITA The subsequent withdrawal Of interest
bearing legal tenders and greenbacks, together
with the coincidcnt Increase In our population has