New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-14
Are the Banks SOlyeute

Are tho Banks Solvent.
"SothinS eXtenuata noz augh: set down Il
The bank managers Of this city have com
| bined to tell the public and their depositors
tina: commercial safety lies in their partial
suspension.
There is a common rule in ethics that II
requires two to a bargain; but in this in
stance the bankers who received your de-
posits the day they were contemplating a
suspension. tell you the day after they can
not allow you to use your own money: that
they. alone are the arbiters ct your com.
mercial discretion.
lcontend that the present system Of GER
titled checks is pernicious; replete with evil.
and perhaps intended to disguise insolvency.
Who knows:
By this combination the public are forced
TO receive and circulate certified checks. a
suspected, depreciated issue represen: the
currency deposited in bank.
This medium Of paying debts must bring
down first tho small capstalists. and then
the larger ones must follow. for one and all
can not continue the business Of the city
without confidence and accommodation.
Merchants may find relief TOR time in nu.
tuai accommodation. by a Peter.and Paul
system. but il must end in a general bank.
ruptcy-and that before long.
The banks have no right 70 put an en-.
barge on the circulation of currency. and
certainly no right to control the discretion
Of merchants in the manipulation Of their
capital. OF which they are only the Gus.
todans in trust; and to refuse to pay
check agains. money lodged to meet that
check is clearly an ack of bankruptcy.
II. however. this questionable system Of
certified checks is to be accepted by depcs
itOrs. and imposed on the public. it is only
fair that public meeting should be called.
and commissioners and experts appointed
TO investigate the condition Of the banks.
The public ough: 10 know from each bank
the amoun: OF deposits: TIE amount re.
ceived for stock: il profits have been
made. and how much.
lie: the commercial community know .h
facts and the actual condition of the banks.
and not continue 'to 90 it blind" with bank.
ers and bank managers. who. perhaps. have
abused the public confidence.
1t is to be hoped tina. such an in1estiga.
,ion will at once be Sc. na foot. and shat
he bank managers themselves will be fore
most in showing that they are solvent.
II managers and directors have misap-
Driated the capital and deposits in loans 20
themselves or TO their tavorites engaged in
lotoriously unsafe uadertak ings. they will
De highly ceusurable and cvIminally liable.
The insane policy OF permitting unrelia-
Die managers to continue in the liquidation
of an inso.vent bank whereby they can
,asiiy cover up detslcations tha. ought to |
De exposed to the creditors. is immora! in |
he extreme. !
One case in point: September }. 1856. the |
Royal British Bank. established in London !
n the year iS49. stopped payment. Occa-
ioning much distress u small traders. An |
investigation took place. when it was dis. |
oyered that the funds Of the bank were !
by Mr.. Cameron. the manager.
nd the directors, in loans and discounts to !
and to their favorites engaged
n noterously unsafe undertakings. Cam
ron and the directors were eciminaily in
ieted. and after = patien. trial. lasting
hirteen days. they we're convicted and
to various degrees os impr:ss SON
tent and penal seryitude.
1t i. the practice in Europe. when
anker succumbs in panic or otherwise. to
lace his affairs. withOu. a moments de lay.
the hands of well accredited accountants
nd experts. SO that The public may have
, honorable expose Of al the cireum.
ances that brought about ;he suspension
: bankruptcy.
IL i. TO be presumed that the banks with
le one exceptioDt are solvent and have
othing to conceal; therefore let the public
'niidence be confirmed in them by an in.
estigation OF their affairs to avoid any
saster tina: otherwise may occur in the
Try fnids: Of the business season, when ,
erchants are expanding their operations 5.
I'd entrapped into u hopeless and mex. =,
lcable labyrinth of liabilities. {
have this day received communication
ON Europe asking me. "Are cou. banks
lven,!" What answer can make to this !
Iuiry: ARGUS. i