The morning star and Catholic messenger., 1878-12-29
NEW ORLEANS, SUNDAY MORNING, DECEMBER 20, 1878


The facts seem to be about as follows Fo
n3auy years the Archbishop-or rather hi
brother. the Rev. Edward Purcell, Chancello
| of the Diocese, snd in charge of its fiaanes
| affairs-hss been doing a sort of banking
| business, receiving the savings from the mem
bers of the church ~ho wished to deposit tasi
| extra funds with him, in return giving notes
| some of them bsaring interest, and then loan
| ing CT Investing the funds as the case might
be, and paying depositors upon call Or q rea
| Sensible notice. Many Catholics, coming &c
| this country from Europe, were recommended
by the Church authorities abroad to place con
1 hieEce, financial as we'll as spiritual, in the
| Archbishop and his financial associate, and
| they did go. The result has been that between
the daposits of these aud the Eeeidents of the
rooms in the Cathedral residep ce became a
savings bank, with probably q larger number
of depositors than any savings institution in
the city. Day and night the toilers came
tbither with their little earnings. and so the
money accumulated until the hundreds grew
to thousands and the thousands to millions.
On some of these deposits-many of them. in
Of paying interest,", q proceeding which
bankers admit to have been at least an
unsafe ehe. This money was loaned ont 10
ts saTTaass IsS psEissss shia
and others who would pay good rates of inter
est Still the money increased upon their
hands, and few years ago, when prices were
high, they invested o round million in real
estate in the oty. Then came the financial pres.
sure, followed by the crash, and the value of
securities and real estate depreoiated by more
than half. Congregations were unable to
meet their engagements, parishioners were
unable to find employment, and. instead of
depositing, obliged to withdraw their
funds, ard the tide turned.
For years Father Purcell has done his bank
ing business with Joseph A. Hemsnu. Gar
man banker. just at this inauspicious mo-
ment, three months ago, the bank OF Joseph
Hemspn failed-failed badly with quarter
n q
to a small proportion of that sum. The result
was IN alarm among the depositors with the
Arch bishop, and they began to withdraw their
deposits, Bishop Purcell had not really lost any
money by the failure of Hsmsnns Bank, bnt
the people did not understand this, and many |
of them (Catholios) having lost by that fail
ure, the alarm became general, and the run |
began in earnest npou Father Edward. A.
hrSt the demands were met promptly, bat |
pretty soon the excheq1er began to feel the |
pressure, aDd az there were no more deposits
and the demand continued, it twas obliged to |
go ucoumb. and Father Edward began to make
excuses and plead for delay in various ways
This increased the agitation, and the depositors
began TO grow more impatient, until for the
past week more they have been visiting the
residence in crowds, numbered, it is said, by
hundreds. They usually informed by Fs
ther Edward that while he ocnnot pay at once,
they shall have their money in foil as soon as
possible. Sometimes his promises are for to
morrow sometimes for next week, and some-
times indefinite, bat he insists that while he
|
will pay soon.
The excitement among the sufferers by the
lelay s not of the boisterous order, but runs
leep, as is evidenced by The continual demand
svery direction. The depostors mostly
lmopR the Germaus, many Of them the wives
If mechanics or small tradesmen, and the de.
IositS range all the way from q few dollars to
thousands. The number OF depositorB Is v0ri
uely estimated at from 5000 to twice that
number, and the liabilities are guessed at q
million. These figures are only estimates. for ,
father Edward refuses to talk Of the details,
nd the Archbishop really knows little regard ,
19 these matters, for he has intrusted all the ,
1siness affairs to his brother, the Chancellor. >
Tho Suns correspondent tonight called upon c
number of business men, bankers. and others, | {
nd tho general impression seemed to be that {
,hiIe the Arcbbishop's affairs were in bad con- |
ition jest now, they would finally be adjusted
Tithout loss to the deposit tors though this =
light be come time in the future. The notes,
t least many of those given for borrowed
lOney-for Father Parcell has been obliged of
tie to borrow considerable sums-are signed
y j. Purcell, the Archbishop, and, it 10
lid, in some cases with bis ottioial signature,
nd the impression prevails among the bankers @
ere that the church property is liable for all n
lese debts, perhaps for oil debts, whether de- Il
osits or borrowed money. In regard to this q
lere is difference of opinion, some holding n
lat the property of the Church cannot be y
sde liable for individual transactions Of the
or the Chancellor. Should the "
rmer opinion, however, prove correct, there n
ould be ample property to secure all debts: :,
besides the millions Of dollars' worth of "
operty the church owns in Cincinnati, the hi
urch property in the whole diocese, cover te
z on De-third Of the State would be respOnsi n
O. Besides this-aud this is really the most ~
opeful feature of the case-there are many II;
saltby members Of the church here who W
ouid doubtless come forward to aid the Arch- tH
shop, who is beloved By all, in this time of ht
oubie, and, indeed, it is said pretty good tv
tbority that the venerable Reuben Springer, te
hose magnificent donations TO the Cincinnati IL,
blic and to art in Cincinnati have made him iot
nous. has declared that the Archbishop shall go
t softer financially, even il it cost him 80 80
md million.
It is asserted that Mr.. Springer has already vi