Los Angeles daily herald., 1876-01-29
Temple & Workman's Bank.


last evening the following very sensi-
bic editorial on matter which is now
absorbing the attention of our citi-
zens-the affairs of TEMPLE & Work
MANS bank. The editor of the RepuJ-
EcGn has had large experience in the
banking business, and he is enabled
thusly to write understandingly on the
subject:
| WE do not desire to create panic,
but 1t is undoubtedly true that Messrs.
Spence and Freeman find Temple &
Workman's books i'm terrible confu-
sion. For two weeks they have been
busy investigating the affairs of the
bank and have had experts at work
and the deeper they get into the busi-
ness the more glaring does the incom-
| potency or criminal carelessness be-
come. The General Ledger has not
| been written up for three years and
when the assignees first commenced
theirresearches an apparent discrepan-
| cy of three hundred thousand dollars
was laid bare, but most of this has
| since been explained as errors in book
| keeping. There were apparent over
drafts of upwards of two hundred
| thousand dollars, but one hundred and
twenty-five thousand of this is in
Cerro Gordo and San lJacinto ac-
counts. The Baldwin mortgage was
for three hundred and ten thousand
dollars yet Temple & WOrkman's
books showed only an account with
two hundred and fifty thousand. But
then in the free and easy style of
bookkeeping adopted in this bank a
little item of sixty thousand dollars Is
a matter of no account. So in every
department of this bank the books
and accounts are in such a condition
that explanations are in order, but
there are SO many ugly features re-
quiring little light that it is about
time a full statement of this damning
financial record be published for the
enlightenment of creditors of the bank
and the public at large. We under
stand that the assignees are getting
heartily sick of their work, as the
secret history of the bank is
being exposed, and the pros
pect of very unsatisfactory
statement becomes apparent. They
even think seriously of resigning, not
desiring to be held responsible by pub
lie opinion for the haZy financial sheet
that they will be forced to present to
the creditors. We earnestly urge
Messrs. Spence and Freeman to con-
tinue the good work ofunravellng this
mysterious system Of banking. JUS
tice to the creditors Of the bank de-
mands that the assignees employ
careful bookkeepers and have the
books rewritten from the commence
ment of Temple & Workman's busi-
ness until the present time. Examine
not only the general accounts of de-
positors but have the bills receivable,
the certificate and exchange accounts
scanned closely. A bank which has
done such large business should
show large profit on discounts of
greenbacks and bills receivable and it
will be easy to ascertain whether the
proper credits we're made, by examin
ING the cash memOrandums for the
amount bought and the probable prof
it on greenbacks, and the bills receiv-
able register for the discount on notes
shaved. The assignees should exam
inc the overdrafts to see if interest has
been charged regularly on the accounts
and the amount duly credited to dis
i
count should be carefully investigated
so that any improper debit to that ac-
count may be detected. The cores
pondents of the bank should be writ
ten to for the purpose OF ascertaining
if any discrepancy ever existed be-
tween their accounts and the books OF
Temple & Workman. This kind of an
investigation is demanded, not only
by the creditors, but by the friends OF
Temple & Workman. The apparent
profits of Temple & Workman should
show largely on the books; though
they may be actually represented in
unfortunate overdrafts or bills receiv-
able of doubtful tenor. The best in
terests of these misguided bankers
will be conserved by ascertaining
where these profits went, whether the
bills receivable and 0verdrafts include
the regular interest and whether the
liabilities are all genuine or whether
watering process has been adopted.
We hear that the statement will fill
two ordinary sized newspapers and
will probably be filed next Monday.
That it will be poor showing there is
no doubt, but the public demand that
the assignees make the statement
full expose of the banks mode of do
ing business, the facts in regard to the
overdrafts, the bills receivable and the
other assets. The endorsers on the
notes should be published, as well as
any collaterals fer overdrafts; in short,
it should be- complete exhibit of the
assets as we'll as liabilities. When
this made the public will draw its con-
clusion quickly, and public opinion
will pick out the real culprit and say,
"Thou art the man,