The New York herald., 1878-10-20

frauds In the manner OF carrying on the business
OF the deiunct institution promise TO go beyond
anything that has yet been imagined This is
serted by those who are best informed. They al
lege that when the real facts are laid bare they
VIII 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 decepuon and deceit has
been practised These frauas 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 Oi-not once or twice, to conceal an
occasional slip or 10 tide over an exceptional DIM
Guilty. but carefully, deliberately and with set
purpose. Month after month and year after year
they nave done this to crafty their own selfish
ends, thus serving TO increase the enormity OF
their offence. 1t Is almost impossible to imagine
the sad results Of the wide-reaching mischief ac-
compllshed by these guilty men, They have lied 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 crimes 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 mlsdeed upon mlsdeed-so reckless and suicidal
indeed that but for the unmistakabe 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
wrong. They cannot Plead that they have acted
in q haphazard or unknowing fashion The plea OF
OF having conducted the affairs OF the bank with
rccklessness will not avail them aught The ncon-
trovertbe facts to be found the records that
they have been impelled solely by selfish objects.
Their misdOngs are almost all, without exception,
OF the most delbe rate kind. The pubic can now
note once more how handful OF unprinclpled men
can with facility destroy profitable business, dis
sipate enormous wealth and shake the whole
commercial system to Its base and involve thou
sands oil innocent people in misery and ruin.
DIsHoNoR-Is THE BANK OF ENGLAND
SOLID?
BY CABLE TO THE HERALD
LONDON, Oct. 10, 1878.
The Times, In It's financial article, commenting on
OF the City OF Glasgow Bank, says
Tho shareholders will have some light thrown
upon the condition OF the banks affairs, and
mosera,o and probably avorabs a' .ssimus 1iu Ua
f6,2o0 900 1881, 0O0 0OOl rhat Is most disastrous
% tho nnaPpy .S
magnitude could mover have fallen on them but for
the reckless Encouragement 10 begin with amt
libsrais and long continued fraud practsed 10 hide
that mismanagement. The story set forth tho
port is one OF the most disgraceful in the history
falsaed, securities entered at fictitious values,
bad debts taken as good and the very
the deliberately squandersd to the extent OF
f300, 000 The government has been deceived by
sheets and everything done in short that perverse
genuiy cocid think OF 10 conceal tue corrupt cond
ton Of the bank until II became national calamity.
The revelations o the investigators must ssartle the
mercantile community almost as much the
news OF the failure and ought 70 be the
signal Tor many much needed banking refOrma
Here . bank pr0iessedy occupied wttn the com.
merce OF Scotland, bank notable among tho Scotch
banks Tor pushing endeavors establish branches
all over the northern half OF the kingdom throwing
away millions TO support hopelsssly rotten Trims In
the East India trade, investing doubtful or alto
gethar speculative securities Erie shares and
other American railway stocks, buy land In Aus.
tralia and Now Zealand and generally behaving like
insane gambler.
TOO rREE WITH OTHER pEorLE's xosKY
The managers have lent rather freely on n bad o."
ourity, have puded up some possibly sh rewd and
ron but overeager Spectator TO the loss Of the con-
cern. rnen their courage failed them. They dare
~
ambiguous balance Sheets ana the nrst losses
thus hid. Then worse came 1t was necessary
in order TO keep the ever Increasing losses
out OF sight until At last the cr,minay reacned the
point OF paying splendid Dividend aud Issuing bal
ance sheet showing large surplus a. tho very time
when the funds Of the bank wore utterly exhausted
against ts notes 10 order to keep the concern
above water Tor a lew more days No comments
can add to tho iorcc OF facts like these. We
only repeat that II sucn offences against the
cent pubic and suffering share ehoiders allowed
60 unpunished there Is IN end 70 confidence III
Scotch banking. shock will, indeed, be given to
the credit OF all ban ks sucn must prove IN
furious mercantile OF England, and pun
isnment alone will not sufice There must be re-
form as WELL
"'ow's 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:-.rhs stories about the Bank OF England
and the Bank OF France are paipable Inventions II
ono institution required bullion from the other
special arrangement needed to effect purchase
The article also says:-''Some mschisvous OF
failures also set anoat, but tnsir absurdity
glaring that they did harm. ana discred-
tied as soon uttsrcd."
BANK AFFAIRS IN LONDON.
Tho Economtst says:-
Two and three months bank bills are quoted at 51<
a6; ,nree months trade bills. OK; and iosasa at o
per cent. AT the Stock Exchange prices coutinued
drooDug until tue completion OF the settlement on
Wednesday, whicn caused the failure oil some unim-
portant spectators In home railways and Eric
On Thursday a good effect was produced by the Bank
OF Epgiand raising its rate OF discount. Tho
been comparatively firm, especially tor for
eigus, which being taken for the Continent Bank
anu discount shares ana gas securities ued de-
pressed. Tho silver market Is dun and unsettled.
Indian exchanges are lower, only about half the
cunt OF Council bills offered wsrc awarded not
witbstanding the much lower rate Tho failures OF
pitvate since failure OF the City OF Glasgow
Bank amount to f5, 49,. 900.
JErsAx.