The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-17
A Weeks had Record.

Tho past week was bad week for the I'M
sound savings banks and insurance compa-
nies. II opened ominously. On Monday we
got news Of tho appointment Of a receiver
for the German Savings Bank of Chicago; Of
the discovery that an lndiann cashier was
a dcfaulter In the sum of $jO,O0D; and vi
suit brought against the stockholders OF a
broken Iowa bank by indignant dcpostors
who avcrrcd that only 5000 of available
assets could be found tn meet liabilities az
grogating Si,OOO0oO In the middle Of the
week came the astounding news that the
Newark Savings Institution. with Si2,Oc0,OO0
of Assets and sl1,sOO,OOo OF deposits,
was in trouble, had appealed u the
courts, and was paying dcpositors
for the present only IL per cent. of their
money. Tho week. ended IA IL had begun.
On Saturday Receiver BEST made public the
fact that the affairs Of the National Trust
Company OF this city had been mismanaged.
that there hal been Irregularities and
violations Of the charter, and that the
companys Assets had been impaired to
the extent OF 100000. On the same
day, the New York public learned
that the Oriental Savings Bank had put IL
self IN the hands Of the Acknowledgement
"a be closed up; that receiver had been
appointed for the Brewers and Maltsters'
Fire Insurance Company at its own request;
that bctwcon one and two hundred dcpOs-
itors Of the Long Island Savings Bank
had consented to take eighty cents on
the dollar, and had actually received forty
cents; and that good Deacon BROAD
WE'LL Of Clairmout Savings Bank fame
had been arrested on II bench warrant for
perjury. lie is now in the City Prison,
where he has ex-prcsident CASE Of the
Security Life Insurance Company for
neighbor These Incidents, added 90 the de-
vclopmcnts Of the LAMBERT trial. the ar
rest Of the cx-cashier OF the Reading Saw
ings Bank on a charge of ENLIGHTENMENT.
and other recent occurrences Of like
nature. have made deep impression on the
public mind.
1t is not pleasant impression. In its
first, immediate effects IL IL u very painful
impression. These discoveries OF institu-
tional rottennees are discouraging; they are
disquictng. They beSet suspicion and dis
trust shaking confidence, an, alarming tim
idity. Yet, We repeat, the revelations.
astonishing and discredita az some of
them may he, are tn be welcomed II -
bcttcr for the community that the fact-
should come out-the worst Of them. The
disease discovered is not SO dangerous az
the disease unsupported, eating its way in
secret. Both the public morals and the pub
lie pocket will gain 10y the disclosure Of the
past week.
Take the case OF the National Trust Com
| pany II seemed to be- aud was esteemed, a
| sound, safe institution. When street rumur
| fortnight or 50 since, began to whisper
! doubts a.. u it, real condition, its President
| promptly rushed into print with card In
which he affirmed that the company was a.
| solid as granite--or words to that effect
and denounced the street reports a. wickcc
and malicious lies. He was able 10 refer I,
Il report made by an examining COMMITTEES
| Of the trustees as late as Dee 7, IN which
| the company WAS described as solvent, will
a clear surplus Of $4,000 over all liabilities
Yet 1t does not take Special Examiner (nov
Receiver BEST very many hours to discover
4 100000 hole in the company's assets. Nj
| BEST expresses the belief that many u tn
trustees didn't know; thew were surprise,
and indignant when he told them. We dar
say respectable trustees usually are in thesi
cases. As the trustees are personally re
sponsihlc, there is more ground than Their
otherwise would he for his professed conf
dcncc that dcpositQrs will ultimately los
nothing. That is one Of the advantages q
being well-to-do man and depositing som
of your spare money with a trust company
instead Of being poor man and putting
your earnings in n savings bank. But "
think it will be clear TO every reader upon
very little reflection that the exposure Z
such prctentlous sham, Insolvency passin
itself of as soundness, is not thing to b
incurred over but to be rejoiccdin. The fac
Is wholly dcplorable, but the exposure
wholly salutary.