New-York tribune., 1874-04-25

REPORT or BANK ] HAMMER MElGS-IIlE lNSIIIO-
TIoN IN VERY BAD CONDITIoN-EFFoRTs TO
KEEP THE INFORMATION FROM THE PUBLIC
LIABILITIES IL EXCESS OF RESOURCES TO THE
AMOUNT OF $217, ,SS6-A LIST OF LOANS MiDE BY
TILE BANK.
lBY TELEGRAPH To TIE TRIBUNEl
WASHINGTON, April q. - The report Of Bank
Examiner Meigs, on the Freedmens Savings Bank,
e rtto the House to-day by the Secretary of the
Treasury shows that institution to be in very bad
condition its liabilities exceeding its resources to
the amount of S217. $50. The Committee on Banking
and Currency, which is investigating the affairs Of
the bank and its branches, has endeavored with
the best intentions, doubt, TO keep all the IN
formation about its condition from getting to the
public. The investigation was ordered by the
House at the instance of Mr. BrOmberg Of Alabama,
and at his request the Committee called on Con-
troler Knox for Mr. Meigss report, and it was sent
70 them instead Of TO the House, as Is customary,
for printing and reference. Mr.. Bromberg thought
the light ought 10 be let in upon the management OF
the bank, and got resolution passed directing the
Secretary of the Treasury to furnish the
House with a copy of the report. 1t
was this copy - which is duplicate of
that previously sent TO the Committee - that
came IN to-day. AT the instance, it is supposed, OF
the Chairman of the Committee, and by the co0pe-
ton Of the Speaker and the clerks at the desk, an
attempt was made TO smother the document by
Outting the customary order to print, and sending
htot the Committee before any of the correspond
sns could see it. 1t was repetition of the trick
practioed with the report the SanborD contracts
The reading clerk read only small part of the in
dorSement on the back of the document so that no
one should have his attention attracted to it, The
Speaker ordered its reference without saying any,
thing about printing and Immediately had the titles
Of other Executive communications read. The clerk
concealed the document behind him instead of plac
ing il on the table; the journal clerk Journalized it
BY stealth; the entry clerk was sent for to copy the
hte and enter it IN his book, without taking the
document TO his room, where it would have been
Been by the newspaper men; and, finally, orders
were given that the papers should 20 at once to the
oommittee-room.
From the report Of Examiner Meigs upon the
bank and branches, 1t appears that it's total liza
bts are S3 838 S9 and its net resources S3 121 OO6
Of which S1O6,500 consists of bad and doubtful
Debts, showing q deficiency of $2l7.8S6. In other
words, the depositors secured TO the amount of
about % cents on the dollar The causes which
have led 10 this deficiency appear to be, First /:
Erection and maintenance of branches which have
hot been sef-sustsining; Second Losses arising from
the authority originally given to the directors of
mercantile transactions not belonging to
the business of legitimate savings bank !;
IArd: An effort TO follow the example OF other
savings banks and allow per cent interest on de-
pOsits. 81 consider this practice of allowing high
sies Of interest upon savings deposits" the Exam
iner says. as entirely wrong dIverting attention
non the safety Of the deposit, which should be the
'hief consideration in guarding the savings OF the
pT" Fourth 1: Sacrifices made 10 raise money
ourng the late panic aud shrinkage in investments
ihefe is discrepancy in the amount due depositors
~ between the deposit ledger aud the general
,edger, Of about $4,000. The Examiner says But
HOm careful examination of these ledgers am
inclined to the opinion that this is merely result
ic~felessness IN carrying accounts forward and in
O'tnlng different accounts The Examiner recon-
.sndS that the manager. in future. be required
"~here more strictly to the requirements of law
''suia'lng. the character Of investments. The by