Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1874-03-04

No greater swindlc was ever perpe:
tratcd upon the people Of the United
Statcs than that Of these Comment
Christian Bankers, ," Jay Cooke h Coz
The fraud Is = hugo one snd every
days investigation expands 10 pro-
portions. Alfcr tho concern hae boon
thrown into bankruptcy BY privsts
creditors, "the government" . now
beginning to look aner its interests
The New York Sun Of Friday in al
luding to those banking brigands sayss
"A resolution was adopted by The
House of Representatives on Tuesday
directing the Committee on Banking
and Currency to examine into the con-
dtion of tho First National Bank Of
the city Of Washington at the time Of
its failure, and into its prior transao<
tions and general management, with
authority 10 send fol. persons and pa
pears. vs '.l tf1f oia
This investigation is eminently pro.
per, but what II may end in is quite
another question. The composition
of tho committee is not favorable to
such scrutiny as the occasion de.
mands, or to such treatment a. out
ragged Justice requires. Mr.. Maynard,
the Chairman, will necessarily give
the direction TO the inquiry, and he is
not jealous for bringing Jay Cook and
bis confederatcs TO account
Tho First National Bank was d
mere branch OF Jay Cooke 4 Co. at
the capital, under another name, and
was Used to .s...ract deposits from the
Treasury and officials for the use of
the parent firm. Henry D. Cooke was
the President of this bank and men,
ber of Jay Cooke 4 Co., and both con.
Germs occupied the same building.
The capital Of the bank was $780,
000. In section 29 of the National
Currency net, it is enacted "that the
total liabilities TO any association, of
any person, or of any company, cor
poraiion, or firm, for money borrowed,
including 10 the liabilities of CON-
pany or firm the liabilities Of the sew
eral members thereof, shall at no time
exceed one-tenh part of the amount of
the capital stock Of such association
actually paid in" ta iaa43
Thus, if Jay Cooke & Co. had owned
the entire stock of this bank they
could not have borrowed more than
$50 900, or tenth part Of the capital.
So much is positive. Now according
TO the report of the receiver, made on
The 26th of September, 1873, 1t ap-
pears that every dollar OF the capital
and more than half Us much ia ad-
dition belonging to depositors were
drawn by Jay Cooke & Co. The ex-
act figures are as follows: H.a
Due from Jay Cooke a Co: llq
Coin .-......-..-..--.......... S6o,7b6 Sd
Currency" 6sO66o 6V
Total.................... ....-......... S756,453 45
1t was wholly impracticable, with
out collusion between the office Of the
Comptroller Of the Currency and the
Cookies, that this drain ever could
have occurred. The facts must have
been known, or the Comptroller will
fully closed bis eyes TO a knowledge
which stared him in the face at every
examination Of the books.
There is another feature 10 this bust
ness which Is full Of suspicious signif-
cance. As President of the bank up
stairs, Henry d. Cooke transferred to
the firm of Jay Cooke & Co., of which
be was partner, down stairs, this
three quarters of million of dollars.
But be did not stop there, for the re-
port Of assets made and sworn TO by
Jay Cooke 4 Co. on the 23d Of Decem-
Der last charges nearly half million
against him individually, Here are
the fguros:
Henry d. Cocke.............-........ $4,000 90
Henry d. Cooke. 1885 90
Henry d. Cooke, with collateral ...... 55,s25 Al
Henry d. Cooke, treasurer-............ $4,000 90
This last item of "treasurer" is SIM
ply disgraceful. As Governor of the
District be was treasurer Of the reform
school, for which Congress had pro-
vided literally. In tha. capacity he
deposited $4,000 with Jay Cooke 4
Co., and then dreio IL out for his opn
use, leaving the school among the help
less creditors.
1t it thus seen that one member Of
the firm, who ran both machines at
Washington, contrived TO appropriate
the whole capital of the bank to his
own account, and turned in quarter
of million more for tho benefit Of the
firm of which he was member
What became of this half million is
yet to be discovered. IL is certainly
not to be found among the trumpery
Of "assets," in which the notorious
Seneca Sandstone Company figures
for 100000 in round mum bers, which
were turned into the spolisted credi-
tors.
Among the liabilities is one item
which has heretofore excited comment.
1t is as follows:
United States deposits secured partially by bonds
as stated above under caption ofre-
sources) ......-.$2s7,7s2 ~
II is known that fully 100000 of
this amount was deposited with the
First National by the Secretary Of
the Treasury, and as is believed,
against the protest of the United
States Treasurer, few days before
the failure. This was done without
security of any kind, although the law
explicitly forbids any such discretion.
The 45th section Of the Currency act
provides in these words:
"And the Secretary Of the Treasury shall re-
quirs Of the associations thus designated satisac-
tory security by the deposit Of United States
bonds and otherwise, for the safe keeping and
prompt payment OF the public money deposited
with them. .and for the faithful performance Of
their duties as financial agents Of he Govern
ment."
If the committee are disposed to do
their duty and to let the public see
how far official favofitism has gone in
sustaining the grossest infractions of
Ia ox..o doaif,naJ for tha ,,rof ant ION Of fha