The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-03-17
A warming.
From the New York Tlmes.]

,esoyn the New York TimesJ
Tho fs;,ure OF the Back Of the State OF
New York fs The greatest disaster that hiss
yot hanpeped to any bank included In the
national systeI. 1t is also one OF The most
diagraceful This bank bad capital OF
az 600 900, and on October 2. 1874, reported
. surplus Of 300. 000 and undivided profits
of s2s1 900. s,s net deposits were then
about $4,000, 900. For the last week the
average OF net deposits reported Is Only
1855, 200. The falling Gil 10 deposits IS NOT
an intall,ble sign that confidence 10 zoe so'-
yency Of a tack is lessened, out "nere !.
takes plaza on so extensive scale Us tn.s u
60 a nretty severe test Of the seundness
~ the management. Unfortunately the man.
SEGMENT Of the Bark Of tire State OF New
YORK was not able 10 stand this test. The
vice.nresideut OF the bank bad lent sum OF
So30 600 to pimself. A concern called the
TIn,ted States A;tritiop Flour Company had
oyerdrawn its account S45e,000, and the
same concern had borrowed In addition the
sum of S425,000. None Of these loans were
fortified by good security A firm In the
nYosuce commission business had also been
permitted &c overdraw Ss50,000, and S240,-
600 of protested paper, besides the sums De-
fore mentioned, arc among the assets. All
these SUMS put together, counted SO q
total loss. do not wipe out the capital
and surplus, suu unless there Is
a great deal more Of wTeck-stuf than
Is now Suspected ehe entire loss VIII De
sustained BY the shareholders. The note
holders capnot possibly lose dollar, and 10
all probability the depositors will be paid 10
full. The details OF the downfall, as or'ehI
summarized above, make up very bad case
against the IN anagement of this bank. TIE
annals OF bauking, however, contain many
quite as bad. and some which are maco
worse. All the rascality of the country 4:
not 10 be laid on the shoulders OF the poiil'
clans.
The enormous fall which bias taken place
, tho mcney ysue of almost all descriptions
of property has thus far resulted 10 sarpras-
inplV few bank failures. When thousands
of fortunes have melted away ana lett 20
trace. IL is TO be expected that baDks should
nil oeca>iops!ip. The business Of hanG rs
to borrow moEey from one set OF men anu
lend il to another. If those who have bor'
rowed do not pay back, the banks toen''
selves may be unable 10 satisfy their credit
ors. But IL The maXims which experience
has 6 aplshed for The safe conduct OF the
banking business are followed it. rarely hap
pens That banks 60 down, even In such
stormy times IA these.
The palIODal Danh act IL I'D eSCtheut u"
but II Is impossible for any governmental
machinery 10 supply character or brains 10
those who are wanting in these respects.
Responsibility must be lodged somewhere,
and where more than thousand million Oh
dollars are placed 10 The bands of boards OIL
bsuR directors, and by them loaned to the
people OF so vast d country as the 'Uniseo
States, too much reliance must not be placed
in the laws or Ulcers OF The Government. The
presidents, cashiers, and active managers OF
The several banks are the persons who
should be held responsible, and they should
lie carefully selected. Care!essness inevita'
Div breeds dishonesty and breaches of trust
tits so in politics, and 1t is the same in Dor
rowing and lending money.