The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1879-03-14
BAD BANKING.


Archbishop Purcelrs Financial Troubles.
The complete story of the troubles
that have come upon Archbishop Pur-
cell, of Cincinnati, through the dread
full fnanceiring of himself and his
broker, Father Edward Purcell, as told
by the New York Sum. is a pitiable
one-pitiable more when one considers
the victims than the prelate. The
broker began to discharge his duties as
financial agent of the then Bishop in
1888. the year of ordirati In 1850
the Bishop was made Archbishop, and
from that time to this the savings of
the many congregations in his diocese
have been intrusted to the Purcells for
safe keeping. The panic weakened
confidence in them, but the run did not
commence until the recent bank failures
in Cincinnati. Then the scared depss-
itors focked to the Episcopal resi-
dence to get their money, only to find
it gbne. Several prominent persoLs in
Cincinnati and the priests in the do
cese contributed $4,000 for the relief
of the Bishop, not knowing the extent
of the disaster, and supposing it would
be ample aid in the emergency. 1t was
but drop in the bucket, for 90, 000,O00
had gone-an utter, helpless, irretriev-
able loss to the creditors-gone as com
pletely as if he had piled it in a heap
and burned it. The other day we asked
the question what had become of this
money. The Sums article answers it.
The money received has been used as
revenue for church purposes. 1t has
ohrrr hos 70
been expended in support of the Door,
and been squandered in gifts. How
recklessly and cruelty the trust was adj
ministered is shown by the following
statement:
From what / can learn, the facts
seem to be that the Rev. Father Pur-
cell paid the whole cost Of the Cathe-
dral, az now appears, from the deposit
tors money. To encourage depositors
he paid interest, at first per cent. only,
but very soon thereafter 6 per cent.-a
rate as high as is paid by solid anG well
managed savings banks to their deposi-
tors. Yet he ct no time invested even a
1.-THE of the funds so obtained in any
way that would return him 8 per cent.
Father Purcell let out large sums of
money to private individuals and bust
ness firms without adequate security,
! often without written acknowledgment.
He loaned money at stipulated rates of
| interest, and then, when the borrowers
pleaded poverty, would remit the inter
est--sometimes the principal also. He
would receive deposits, give the deposit
tors mere memoranda on bits of paper,
and fail to make any entry of the sums
so received upon records for his own
information. When interest was claimed
he would jot down the amount on the
back of the old memorandum. When
he made loans to churches, in many in
stances he did not take notes or other
records. The Archbishop knew he was
faithful, industrious, frugal, and honest,
and believed him capable, but the Arch
bishop was no Judge of capacity in that
direction. AS one who has known him
for many years said of him to-day: He
knows the difference between the figures
on 50 and a $500 note, but attaches no
more importance to one than the other,
and anything deemed by him deserv-
ing object of charity would get the lat
ter just as readily as the former"
In its extent the disaster exceeds any
of the recent coHapses of insurance
companies or savings banks, as there
are no assets left Suits have been
brought, but nothing can be recovered
unless the church property can be taken,
and none of the plans suggested for re-
lief, such as fairs, lotteries, and national
subscriptions, will commend themselves
to popular favor or come within the
limits of propriety. 1t is a gigantic disas-
ter, with little or nothing to relieve its
misery. Whatever other result may
happen from it, it ought to be solemn
and lasting warning to church authri-
ties to keep out of the banking business,
especially when an utter ignorance of
financieMng will defeat the best and
| most bonast of Intentions