, 1877-09-16
SPENCER AND TIE NEWSPAPERS,

SPENCER AND TIE NEWSPAPERS.
An impression prevails in The minds Q
some people that the newspapers were awar
OF the real condition of the State Saving
Bank long time before the actual collapse
and That they shirked their duty to the de
positors by neslecting 10 make public an cx
pose Of the mis1naaag cement and dishonest,
which characterized the conduct of til,
President of the concern.
THE TntBpSE is not singled ont in thi:
charge, but the same allegation is made gen
orally against all the Chicago newspapers
and we have no doubt there are some people
who, without believing tie newspapers
knowingly and purposely suppressed an ex,
| posure Of SPENCER and his frauds, still cred.
it the papers in general way with believing
the concern was bankrupt, aud Withholding
this opinion. TIE TRIBUNE eau only speak
with certainty for itself in this matter, but it
imEgines that no newspaper in Chicago had
any information, up to, within few
days Of the assignment, which would
have warranted the publication of any
assertions affecting the banks solvency
or srEScEn;s personal integrity. TEE Tn1D-
uSE certainly had none, but, On the con-
trary, up to a short time before the suspen-
sion, supposed that the State Sarisas Inst;z
tasoR oSr5bge5g abfgSe 'eoncerns Of the kind in the
country, and that its sworn quarterly-pub-
lished statements were correct aud true. Its
careful and conservative management up to
the time that SPENCER bought into it gave it
this reputation, which, upheld SPENCER to
the last. All its public statements sus-
tanned this reputation. The other banks Of
Chicago bad no distinct information that the
State Savings was in q weak or perilous con-
d1tion until SPENCER began going about
among them to solicit Gid few days before
the couspse,-as be had never previously Ind
any relations with then,-which revealed
the nature Of his operations. Indeed, the
payment to the depositors of nearly one
million Of dollars during the run CONSEQUENT
upon the st. Louis bank failures was a cir
c,1mstanca calculated to auay whatever Els
picioa there was floating about; and the
collapse, coming when it did, was more of d
surprise to The banks than if it had occurred
Immediately or soon after the st. Louis fail.
ures.
1t those persons who aro inclined to sl,s-
pect The newspapers of having had long.
previous knowledge of srEScEE's rascaIity
and the banks weakness will stop to think \
moment they will perceive how ridiculous
the assumption is. There were number Of |
gentlemen connected with the State Sayings
Institution who are not suspected of having |
been in collusion with SPENCER, We n,ov !
mention Dr.. Smith, the yice-Pres;dent !
DANIEL Goopw1S, Jr., attorney, one of the !
Trustees, and Judge GRANT, one Of tie LEGAL
advisers These gentlemen were Certainly in
better position to know what was going on
IN the concern than any outsiders. whether
or bankers. They had mr.
cess to tue books, were present Mt mcetings
OF the Board Of Trustees, were in da;lv in.
tefconrso With SPENCER, were personally in
terested IN having an honest and iudicious
administration Of the banks affairs. If such
persons we're ignorant, almost up to the very
asst moment, of the rascality Of the manage
nent, and the extent of the bad jnrest.
nents that had been made, low can
t be supposed that any newspaper.
r its representatives, having no access
0 the books aud no facilities for o1auininp
te assets, should be aware of the rotteuness |
the concern' The bankers of Chicago | Z
'hether National, State, or Savings. had not i,
uch information or suspicion Of the institu. ,
on as warranted them in limiting to tle
ublc that bad failure might be expected E
any moment, notwithstanding their more r
ltlmate relations with the Institution: then | +
on should newspapers arrive at the secrets r
hch SPENCER had succeeded in keeping t
ON those who were actually associated with a
I'M IN the management OF the bank? Those a
no believed that the newspapers knew all c
ooot 1t must credit them with n c1nirvoyant il
over, which, though useful reputation II
'f newspaper under some circumstances r
'qs' oe frankly disarowed for this occasion. IL
1e' US even suppose there had been | II
',2ofs IN circulation year or more aoo raj. {,
naled 10 damage the credit of thc stoto =;
1'1s institution, would it have been the cf
'o''nce OF the newspaper to give such n. y,
ofs Pooncity and circulation We thin1- ~
u. LIE TRIBUNE, for instance, would have r.
"a no means of verifying such rumors, Il -
III heard them. Application to spsScpn ~ ~,
10 other bank officers would have been r,at ~ ~
an emphatic denial of their truth. and ! r,
Stlnct 1ntlmatlon that TaE TR,Bpsr. r. - -,