The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-05-15
Ca:ondelet Street Gossip.

present time have been published and sub
jected to the criticism of a scrutinizing pub
lie, lay open many points for digestion.
Our correspondent who, in the future, if de-
sirOus of an answer to his communications,
will oblige with signature, propounds the
following:
ave had three or four (bank statements)
this morning in the papers. One showing
$500, another $4,000, another $4,000,
another $4,000, and another $4,000 over
drafts in their assets. Could you explain
this item; also the penalties for such in the
National Banking Act?'
If properly construed this item is cash
one, for it is simply call loan and well Sc
cured by unquestionable collaterals. 1t is
very true that strictly liz accordance with
the banking act it is illegal, but the custom
throughout the country, which is general
one, has made it otherwise. Moreover, the
National Bank Examiner has distinctly re-
quested that this item be so specified, show
ing that it receives the sanction of those
with power to act
Banks are partnerships on a large scale,
and every man possessed of stock in the
same is interested as co-partner in the
workings Of the firm!
Now the question arises, Has stock
holder the right to thoroughly examine, and
by so doing post himself as to the value of
stock of an institution in which he is pc
cuniarily interested 7 Does the institution
belong exclusively to the president, board
of dir. ctors or clerks
Common sense teaches different theory,
but we may be at fault and would therefore
prefer to leave the question an open one
Much has been said with reference to the
in which bank statements have
been published, and careful examination
Of those of our State banks which appeared
in last Sundays Republican, cannot but leave
an impression otherwise than unfavorable.;
that is, SO far as the system is concerned.
Bal.k presidents claim that the law requires
simply statement from the books; and
what is the result ? Assets, in the shape
Of stocks, bonds, etc., are set down at valua
tons materially above the market value,
and the consequences of an immediate lqui-
lation would be somewhat disastrous to the
pockets of the stockholders.
TO illustrate this fact we would call the
attention Of our readers to the following:
Under the item-other cash assets, stocks
the Southern Bank is credited with 1884,
500 16. In the notes at the. bottom of the
statement we find 100000 consolidated
city bonds, valued at $454 800; S136, 700 city
seven per cent bonds, valued at $1O2 ,525
$50, COS 80 State bonds and warrants, va
lued at 81, 8O4 16.
This is the statement taken from the
books of the bank!
Now let us see, should this institution be
forced into an immediate liquidation of its
affairs what these assets would bring force0
upon the market
The outside valuation of consolidated
bonds according to the Picayuncs quotation,
is IS cents on the dollar $685. 900 bonds at
this figure would realize $393,900.
Difference between statement from the
books and actual market valuation, $50, 500
Next item: Outside valuation of old city
seven per cent. bonds, SO cents on the dollar
s136, 700 bonds at so would realize sos $50
Difference between statement from books
and market valuation, $34, IT'S. These two
items are certainly sufficient to show the
tallacy Of publishing statement IN accord
NICE acith the law.
And yet, again, another point in connec-
ton with this statement.
A glance at the notes will also show the
A. Louisiana State six par cent. bonds,
s9l $40; Parish of Concordia bonds, $12,714
%; stocks of Galveston Wharf Company,
s9732 IS; stocks, scrips, ETC., $3.50 81
stocks and bonds of the New Orleans, Mo
bile and Texas Railroad Company, $14, 400
3. City Consolidated and Jackson Railroad
company bonds, $4,000. D.. Stocks and
bonds, description not given, S3l5,365 65.
y. Mortgage department. F. Reserved
und.
Now what does all this mean 1t GER
ainly would take a very clear head to un-
lerstand how much security is intended OF
1t what price these assets are set down!
So far as the Southern bank is interested,
like a tangible idea may be form
ID as to their condition, but as for the bal
nee we give it up.
We think that this subject has now re-
eived thorough ventilation, and in closing
hese remarks hope that the spirit of this
Irticle will be received in the light that it
8 intended.
VIENNA WORLDS FAIR. - The elegant
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re just now rendered pointed attractive oy "3r
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