The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-01

erroneous idea has In some wnv gained ground
that the Arrhhishops financial difficulties
were caused 10y the loss Of large sums depos-
it'd by him in the two German banking houses
hrmann CO. and Aiae & G.. which have
failed. Ihat H. not the fact. He had At pre-
yious times large sums drposited with Hemann
X Co. but when their failure occurred
he WAS their debtor instead of their creditor
and II may even be- said. truthfully. that their
cuhsHvpr 10 nid him IN tiding over his financial
am uties was one ot the causes that led to their
bankruptcy. They had advanced to him some
$1,000. You Will understand that when say
y him. mean 90 his brother. the Rev. Father
Edward purcelto whose hands this entire bust
e. COO have boon paid-were paid Just about the
time ot thcir failure by the collection on some
oi the $4,000 Qt personal notes given 10 Father
Edward Purcell for loans. and 10y him deposit
ed rs collateral with Hemann 4 Co. The notes
remaining Will. no doubt. cover entirely the
$4,000, or thereabouts, still due 10 that firm aud
leave over sum for application 70 the relief of
the Archbishop. As for the firm of Adae Il
Co., he never had any business transactions
with them. The only way in which the failure
OF those firms could have affected him
was by exciting peoples minds on the
and so precpitating the catastrophe
but the nnancial emharrassment OF the
k"v. Father Purcell as custodian Of those de-
poslts commenced one year ago. Since that
time people have been exhibiting lack Of CON
fldence as 20 the security of their deuosts and
have been drawing out their money 10 such an
extent rs might well have awdGcned anxiety
as 10 the probable result Of anything approx
mating 20 panic among them. IN view Of the
lack of funds to meet the demands. As TO
what has been done with the funds. il is erati-
flying to us TO know. as we do positively know
but simply lack OF business caution and prac,
teal knowledge in their application or .nvcst-
lncnt As To tncir funds having been wasted in
building churches and other institutions for
irish Catholics especially-a charge which has
been widely spread-it has very small founda-
ton IN fact. although il must be admitted that
Of the small proportion thus expended more
did happen TO 70 10 the Irish than 10 the Ger
however. that il the Germans had asked for aid
they could have had it quite rs freely as
the Irish; hut the Germans are A
self helpful people aud wanted little assist,
ance prcuniarly. So II happens that one Irish
church still owes father Purcell $4,000. and an
by any German church which | can rccnll ar"
in one instance $3.50. and in another 5000. 1t
how these affairs stand. The business of re-
ceiving deposits has been going on for forty
years or therrahouts. and in al that time Father
Purcell has actually kept no books, and not even
memoranda Of many transactions. In the last ten
years there has been some attempt al n sort OF
Strengthening out of matters by the calling i'm of
old books, the issuing of bonds and the giving
OF notes 10 clHimAnts: but all the
time new deposits have been coming in.
they are presented To- MS, to 40 upon in arriving
at any conclusion Then, too, the interest upon
10 compound. hns been drawn. and then
redeposited with added savings. In
arriving at an approximate knowlodge
Purcel's memory, and plies of personal notes
to figure from. We have notes 10 the full value
of 1925 .OOO-that is. their face or nominal value
amounts 10 thHt-und ho has destroyed many
more because he became, convinced that they
were vnlucless and nothing could ever be
realized from them. The trustees have now
got in about all OF the claims-as many az we
want 10 see, I'm very surc--and will in Il few
days present full detailed report set
ting forth Just the amount of the Archb shops
liabilities what the assets arc their probable
values and how the missing money has been
disposed Of. When that Is done, then you
will find that the churches have been but minor
accessories in the work Of ruin. Father pur-
cell had many friends he was n kind hearted
man. who could not refuse help where
in his hand TO accord H. and so he lent the de-
positoral funds in small sums 10 people who
were in distress in large sums To merchants and
others engaged in business. and trusted to tho
the money back It was all right; II
he did not, he charged the amount up To profit
ana loss meialhOrlcallY speaking, tor he did
not actually charge up anything. As for the at
when they are convinced that the money raised
10y contribution in the churches will be applied
in some practically helpful way Tor the .pur-
posrs nyowrd in raising il, they will not hesi-
tate to do their fun duty"
From what ] can lcgrn. the facts seem TO be
that the Rev. Father Purcell paid the whole cost
OF tue Cathedral, as now appears, from the de-
postors money. To encourage depos .turs he
paid interest. At first four percent. only hut very
soon thcreait'r six per cent. a rate MS high ns
is paid by solid and well ll-manUged savings
banks to their depOsltorS. Yet he NJ no time in
vested even tithr OF the funds so obtained in
nny way thdt would return him siA per cent.
Father Purcell lent out large sums Of money
to private individuals and business firms
without adequate security. often without
written ACKNOWLEDGEMENT He lent money at
borrowers pleaded poverty. would remit the in
teEest. sometimes tho principal also. Ho would