New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-01

turbed. He was even able to deceive and
outwit the National Bank examiners. At last
the day came when the meshes he had
been weaving about himself all thee1 years
caught him fast The fraud was well main
tanned. The very last report OF the bank pur-
ported to show 100000 on deposit with
correspondent banks in New-York, when in
fact the bank had nothing here, and was in
debt 5000, 1000. Since the failure of the Glas-
cow Bank there has been no such disclosure
as this, and this, while much less important
in amount, is far more dramatic revelation
of rascality.
The Mechanics Bank had enjoyed great
confidence, not only because of the wealth
of men interested i'll it, but because this cash
Ter and virtual manager had been peculiarly
trusted, and was considered a man of the high
est integrity and of ample wealth. The bank
had the deposits of well-known and rich insur
ance and manufacturing establishments, and
of some public officers, and its failure may cause
not a little hardship to many individuals
beyond the few who may be seriously involved
1t is thought that all direct advances
to the bank by New-York banks were covered
by securities deposited as collaterals, but some
scattered losses will doubtless be sustained
through the exchanges. In short, the conduct
of one man has once more brought great disaster
to not few persons and firms of good repute,
and losses of more or less importance to many
thousands.
Can it be fairly said that one man only is re-
sponsiblc for all this msfOrtune2 There were
other officers of the bank. They were men Of
wealth and high standing. Great confidence
was placed in the bank in part because it was
believed, with reason, that men of such reputa-
ton and means would not suffer great insti,u-
ton to be unwisely conducted. Yet it is now
shown that the management had for years been
left so largely to Mr. Baldwin, the cashier that
his power to do mischief was practically UNI
limited. If this is so, are not the other officers
blamewOrthyl True, the cashier was a man of
the highest responsibility but it is not the
theory of the National Banking act, nor the
expectation of the public that the vast inter
ests in charge Of such a bank shall be intrusted
to any one man. Have not dcpOstOrs and other
creditors a right to ask, with some Indignation,
why the respectable ana distinguished directors
continued to hold their seats, if they did not
practically exercise that watchfulness and con-
troll which creditors expected from them ?
The first report that the cashier had been
opcrating heavily in Wall Street does not
agree with his own statement. This is, that
the money stolen has been used to sustain the
speculatons Of a wcll-known leather firm.
The head of the firm was arrested last night.
1t remains to be seen how far this statement
NAV be correct. 1t could well be wished that
the rumor could prove true which says that
Baldwin's mind has become unhinged, and that
his accusations of himself are exaggerated.
But the details of the evidence do not seem to
admit of any such happy conclusion. What
ever the amount of the defalcation, however,
there is need of some reform in methods of
corporate management, for all experience has
taught that unlimited confidence is apt to
cause unlimited mischief.