The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-22

dered to the Comptroller OF the Currency and that
the legal tender money In the bank was Sl4 9iS
less than the amount required by law. Notwith-
standing these facts, attested by the signature OF
the Comptroller and the report Of the bank ex.
the directors took any effectual means to correct
them.
bank reserve s good ground to forfeit the charter
Of the association; and while it may be that such
penalty should not be inflicted in the case OF tenn
porary or accidental deficiency of this nature,
yet had the Comptroller at that time performed
his duty he would have found such condition of
part. Not only did the Comptroller not take any
vigorous measures to protect the interests OF the
om and but
that he actually assisted the Presi:
dent and Cashier in concealing the real
condition OF the association from the directors AS
q result the bank failed a few weeks since; and in.
vestigation shows that not only has its entire capt.
the stockholders must make good; while large
sums have been lost by special dePositOrs. 1t ap-
pears that the affairs of the bank were conducted
IN very loose, unbusiness-like and negligent man
ner. The Cashier was deiauter and fugitive from
justice and frequently absent from the bank Tor
the institution were left in charge Of a teller,
Q mere youth, of little or no experience
have been directly implicated with the CASHIER in
embezzling and converting the funds of the asso-
citation, The Vice President and directors compos-
negligent in their duty TO an unaccOuntable de-
gree. The evidence clearly shows that Tor period
rupt, and that the most superficial examination OF
the affairs OF the bank by the examining committee
must nave made it entirely clear to any ordinary
mind that the association was insolvent yet that
committee claim to have examined the bank
twice year without discovering anything
to ''" the extreme me- apathy and indifference inference
displayed by the directors and other parties inter-
ested IN prosecuting the President and Cashier OF
who seems to have done his full duty. They appear
to have rather wished to shield the dishonest OIL
hnr Tn nrn n fhnnN nr thntn riVVn
bank examiner appointed by the Comptroller OF the
Currency seems to have regarded himself as having
We are compelled to say THAT while there has not
as yet been evidence submitted sufficient to make
answersbe to the Criminal sections Of the
they are moi Morally Responsible for the osses
falling on the innocent dealers and special depOs
itOrs of the bank. With TINS example before us we
feel obliged to recommend TO the Comptroller Of
and especially to the directors of national banks
more careful supervision of the interests committed
to their care and more stringent measures In the
discovery and correction Of any infractlOn OF the
law; and we earnestly recommend that the Ma
tiona Banking act be amended. defining more di-
recty and explicitly the duties OF persons appointed
under said act, and known as national bank exam
iners; and to that effect we make the following
Fnst-That said examiners be made officers of
the United States, and as such officers, subject to
the provisions OF the general statutes OF the United
States, defining their responsibilities and punish
ing any offences they may commit.
Second-That said examiners be required, when
ever they discover any violation of the penal Sec
ton OF the Banking act, to proceed forthwith be-
lore the United States Attorney for the district in
which said violation occurred and lodge q COM
plant against any and all PERSONS committing
such violations.
Thtrd-That said examiners be paid by the gov
eminent and not by the banks they are appointed
to examine. JOHN ii. HALL Foreman.
w. b. GARDINER, Sec'y pro tenn.
GEORGE BLISS Jr United states Attorney.
ORDER BY JUDGE BLATcHFoRD.
On the above presenment Judge Blatchford has
made the following order:-
Ordered that the Clerk transmit a certified copy
of the within presentment to each OF the following
persons THE Comptroller Of the Currency, the
Secretary Of the Treasury, the Chair Of the Commit
tee on Banking OF the United States Senate and the
Chairman OF the Committee on Banking Of the
House OF Representatives OF the United States.