The New York herald., 1878-10-20

rauus III the manner OF carrying on the business
OF the deiunct institution promise to go beyond
anything that mas yet been imagined This Is as
serted BY those who are best informed They al
lege that when the real facts are laid bare they
WILL throw into the shade the most malicious
rumors concerning the malIeasance OF the direct
ors. No single form OF fraudulent concealment has
been resorted to, ior the single that every
conceivable method OF deception and deceit has
been practised. These FRAUDS have been carried
on with reckless audacity that mocks the con-
lectures OF the most cynical criticism.
GUILTY OF EVERY SIN.
"There is no sin against sound banking honest
bookkeeping. common good faith, which the men
who have managed the defunct bank have not
been guilty o-not once or twice, to conceal an
occasional slip TO tide exceptional dim
Guilty. but carelully deliberately and with a set
purpose. Month after month and year after year
they nave done this to crafty their own selfish
ends, thus serving TO increase the enormtty OF
their offence 1t Is almost impossible to imagine
the sad results Of the wide-reaching mischief ac-
compIshed by these guilty men. They have he'd to
the government IN the matter OF their financial
standing, they have defed the law and they have
deirauded the public. They are the means OF
bringing ruin to hundreds Of helpless men and
women, whose sole crime was that they did not
know that the directors OF the bank were knaves
Of the blacklist dye.
RECKLESS RAsCALITY.
"The directors have encompassed these crmest to
be able to carry on speculations for their own
profit or the enrichment OF their friends. They
viii have ere long to answer for the accumulation
OF msdeed upon mlsdeed-so reckless and suicidal
indeed, that but for the unmistakable evidences OF
deliberate fraud one would be tempted to put the
whole thing down to hopeless dementia No ques-
tion exists but that the directors have done
Tno n haxrA
in a haphazard or unknowing fashion The plea OF
OF having conducted the affairs OF the bank with
rccklessness will not avail them aught The incon-
trovertible facts to be found the records that
they have been impeled solely by selfish objects
Their misdoings almost all, without exception,
Of the most deliberate kind. The pubic can now
note once more how a handful OF unprinclped men
can with facility destroy profitable business. dis
sipate enormous wealth and shake the whole
commercial system to It's base and involve thou
sands OF innocent people in misery and RUN.
SHAMEFUL SHOWING OF rALsEHooD AND
DIsHoNoR-Is THE BANK OF ENGLAND
SOLID?
[BY CABLE TO THE HERALp.1
LONDON, Oct. 10, 1878.
The Times In its financial article, commenting
the official report Of Investigators into the affairs
Oh tue City Oi UlaSROW Duukp sayb.-
Tho shareholders will now have some light thrown
upon the condition OF the banks affairs, and
most somore light u is. Tho bank has lost on
fe, 200 900 1881, 0OoO OOOl THAT Is disastrous
statement Tor the unhappy shareholders, ana
magnitude could never have fallen on the m but for
the reckless mismanagement TO begin with and
ibsrais and long continued fraud practised TO hide
that misma naRement. The story set forth tho
port is one OF the most disgraceful In the history
Of BANKING. Accounts have been deliberately
tale nd NJ Artitl uuln~
gold which, ough. to have been nsld agains,
over f3OO 0O0 The government has been deceived by
falso returns, the shareholders by crooked balance
genuity think OF 10 conceal the corrupt cond
ton Of tho bank until II became national calamity.
mercantile community almost as much as the
news OF the failure and ought 10 be the
signal Tor many much needed banking reforms
merce Of Scotland, bank notable among tho Scotch
banks Tor It's pushing endeavors TO establish branches
all over the northern halt OF the kinGdom throwing
away millions to support hopelsssly rotten Trims In
the East India traae investing In doubtful or alto
gethar speculative securities such Erie shares and
other American railway stocks, buying land In Aus
tralia and Now Zealand aud generally behaving like
TOO FREE WITH OTHER rEopLE's Mos.Y
The managers have lent rather freely on u bad So
our,ty, or have puned up some possibly shrewd and
but over-eager speculator to loss OF
Germ. Tnen their courage failed thcm. They dare
ambi iguous balance Sheets ami tho hrst losses
thus hid Then worse came II Was Decessary
to 60 from one criminal act to smother
out sight until nj last the criminaty reached the
point Of paying splendid dividend and issuing bal
when the funds OF the bank were utterly exhausted
that the managers had TO abstract the gold held
above water Tor q lew more days. No comments
adj to tho force OF facts like these. We
cent pubic and suffering share holders are allowed 10
go unpunished there is an end 70 confidence IN
the credit Of ali banks sucn as must prove m
furious tho mercantile credit OF England. and pun
isninent aloas will not suffice There must be re-
"'ow's THE BASKy"
The Daily Telegraph, in its financial article this
morning. referring to the rumor spread yesterday OF
loan from the Bank OF France 10 the Bank OF Eng
land says:-"rhe stories about the Bank OF England
and The Bank OF France are paipable Inventions II
ono institution required bullion from the other
special arrangements was needed to effect purchase"
The article also says:-s.Somc msohisvous rumors OF
failures also set ahoat but tnsir absurdty
so glaring that tbey did harm, ana were discred-
tied as soon uttered"
BANK AFFAIRS IN LONDON.
Tho Economist says:-
Two and three months bank bills are quoted at 51s
O; tnree months trade bills, OK; ana loans AZ
per cent. Al the Stock Exchange prices continued
droopipg until tue completion OF the settlement on
Wednesday, which caused the failure oil some unim-
portant spectators IN nome railways ana Eric snarcs
On Thursday good effect was producod by tho Bank
OF Engand not raising It's rate OF discount The market
since mas been comparatively hrm especially Tor for
egus, which are being taken for the Continent. Bank
snd discount sharcs ana gas securities contnued de-
pressed. Tho silver market Is duh and unsettled.
Indian exchanges are lower, only about half the
amount OF Council bills offered wsro awarded, not
wubstanding the much lover rate The failures OF
pvate nrms since the failure Of the City Of Glasgow
Bank amount 10 f5 762. .00O
PLorsAM AND JErsAx.
The Liverpool Post, In Its second edition to-day,
nounccs the failure OF James Savers x CO. West