New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-04
TIE MINING or TIE FRAUps.

/ lllcNcu.
THE MEANING or The FRAUDS.
Time was when the exposure of such frauds
as those of Morton, in Philadelphia, and I'LL
man. in New-York, would have shaken tho
commercial fabric to its very foundations. 1t
is not altogether a favorable symptom that
these disclosures create so little alarm For 1t
nroves that commercial confidence has sunk so
far that scarcely any dishonesty in men of the
highest stand ne, and scarcely any careIessness
on the part of those who manage the funds OF
others. can depress it much farther. II shows,
i'm short, that there does not exist to the eN-
tent necessary for the prosecution OF a heaithy
business discriminating and well-grouh1eu
confidence, but that we have in Its place
paralyzing timidity the part OF cautious
investors, and rooted habit OF " taking the
"chancesr on the part of those whose fiducl-
ary positions require the greatest care ana pru-
dcnce. These are not the conditions upon
which n solid rebuilding of industry or trade
can be expected
The institutions which suffer by the Gilman
fraud it is known, are "abundantly able 10
"bear the loss" Undoubtedly, the loss OF
money. Whether it will be judged that they
exercised all proper caution, in the manage
ment of funds intrusted to their charge, IS not
vet SO clear The forgeries, it is said, were so
bunglIng and palpable that they must have
been discovered upon ordinary examination.
No individual of prudence, lending his own
money. would have neglected either to exam
inc the script, if familiar with the appear
ance of the genuine, or to make some
incuiry at the Office of the company.
A. hot
handling the money of others, habtually
take risks which the individual Investor
would usually avoidP Have the feeling of ir-
responsibility, and the habit OF taking chances
in the haste and whirl of business life, gone
so far that the average investor had better
trust his own ignorance than the ordinary
methods Of experienced fnanciers7 1t does
not appear that those who happened to be
caught in this case are looked upon ia cxcep-
tionally careless; indeed, it is commonly sad
that nobody would have thought 1t necessary
to scrutinize Gmans collateralS. But that
was also the trouble in Philadelphia. Nobody
seems to have thought to inquire whether
large and continued loans upon the stock OF a
street railroad, meant mischief or not. And
vet. when the fraud is known, all arc amazed
that prudent bankers did not long ago suspect
that there was something wrong What else are
these successful frauds but new proofs that cor
porate management in this country has become,
IA q rule. less careful in the handling OF prop
erty held IN trust than individuals would be IN
handling their own7 Decidedly, we do not be-
lieve that the particular lenders who were
robbed here or in Philadelphia were more in
fanlt than Others. The history of recent rail-
6 aud
bank frauds, and of banking operations in San
Francisco in st. Louis in Chicago. and here,
does not indicate that scrupul0us caution In the
use of fiduciary powers has become the rule in
any branch of business, or III any part OF the
country.
On the other hand, the temptations to COM
nit fraud have been greatly increased not
only by the carelessness which makes 1t
easy, but by the almost invariable escape OF
those who have been detected, and by the Gus
toms of society which press men strongly to
risk everything for the speedy acquisition OF
wealth. The Tweed Ring has compromised;
the Canal Ring has eyaded law; the Nhiskey
Ring does not lanGuish behind prison bars;
rings in various departments of the public
service have been exposed without punishment
of anybody; defalcatiOns, foTgeries, and rob
berries by the hundred have been followed by
successful escapes to Europe, or by quiet COM
promises and now it is said that MIR. Morton
is to make his peace with the cOmmu-
nifty by testfying against the smaller men
who shared his crime. How can we expect to
stop crimes if we punish nobOdyi Society"
makes thieves 10y the thousand An epidemic
of crime is inevitable, when "every door ia
barred with gold, and opens but to golden
"keys." Ii is inevitable, when the plunderer
who escapes the meshes Of the law finds that
his wealth will open doors which are closed to
the poor, however virtuous, or intelligent, or
refined. Opportunity, security, and strong
temptation are combined, and it is no wonder
that many fall. Society must begin to create
fewer knaves, to punish more, and to stenly
require from all who have the management of
corporations greater publicity and greater care
in the discharge of trusts, before we can ex-
pect that industry and trade will permanently
revive.
THE GFRH1 NTOUN CENTENNIAL,