The patron of husbandry. (Columbus, Miss.) 1875-1883, 1881-11-26
The Old STORY.
American Sentry.

AmCTiCdu oChtiJs 81 segl
A figure-head President, couti-
ding directors, an implicityytrusted
cashier, and a national bank robbed
of S. 600, 900. This the brief story
which has set the whole city of
Newark is state Of ferment. snys7
While the public mind is, so natu>
rally excited by the startling evil,
dence Of dishonesty exposed by the
failure OF the Mechanics National
Bank Of Newark, We do not desire
to take any unfair advantage of the
state of the public feeling, Detail
cations have occurred under every
system, and will always occur, un1
der any system, when tho condls
-tions favorable to such rascality
presented by Board OF Directors
who neglect their duty, and by sucp
neglect become actual partners IN
the guilty &C. of robbing innocent
victims. But there are, certain les
sons to be drawn from this incident
in national banking which should,
be Impressed upon the public min d.
One by one the claims Of peculiar.
merits for this banking system have
been put to the test and oyerthrown,
The claim of patriotism during the
war has been -oyerthrown by the
proof that the banks resisted the
governments at every step, and were
only themselves brought to, accept
the government money by the pa
triotism of the people The claim
that the people preferred the cur
rency issued by the national bank
20 that of the government was dis
proved when, in the panic of 1873.
the green backs stood at a prep,i7
um above the bank notes. The
claim-Lhe most prepos terops of all
that the national banks would
provide properly elastic currency,
by Initiating aad contracting their
issues in accordance with the de-
mands of trade, was completely
overthrown by the last report of
United States Treasurer GilfiIlan,
and tho debate upon the Carlisle
amendment. And now we, have a
demonstration of the falsity of the
last claim upon which could be
based any argument for the support
of this iniquitous system, For
every advocate of the ational bank
ing system has rupg the changes
upon the security afforded to depos
itors by the supervision. of the fed
eral officials. The bank examiner,
appointed by the Comptroller of
the Currency, making their exam
nations of the banks at any time
they desired, were supposed to offer
to the people perfect safeguard
against the dishonesty of bank Off
| GERS. But here is case where a
defalcation amounting to four times
the entire capital of the bank has
been successfully screened from the
| eyes Of the examiner, aud the poor
dupes OF sthe best banking system
the world ever saw" have been
| pouring their money into tho bank,
only to be drawn out by trusted
| official, who relied upon the culpa-
BILE carelessness of his supervisors
aud the equally cuIpable1 negli-
9ence of the bank examiner to es-,
cape detection. No word of pallia-
ton can be said for the directors, the
examiner, or the system. If it be
true that the directors lcoult not
avoid being imposed upon by the
cashier then the use of their names
as figure heads is more than useless,
since, by the very force of that en- /,
dorsement, the faithless cashier is
enabled to extend the scope of his
plundering. IF it be true that the
bank examiner was honestly d.
eeived, then there is no use for such
worthless officials, and both the
board of directors and the bank ex-
aminers should be abolished, for
they are only so many snares to de
eeive innocent victimsaV sdi ''5.'''
1t would be difficult to imagine
what new arrangement can cow be
advanced for the further acontinu-
ance of this expensive and corrupt>
ing system, and we shall look with
some interest for the expression of
the ''organs" upon the subject. 1t
will be no argument TO say that
this is an exceptional case. For if a
defaication of over So 900. 900 can be
concealed by one cashier both rom
the bank directors and the govern
ment examiners, then what guar
antee can the public have that in
the smaller banks, sums equally RI
nous TO the stability of the institu>
tons are not also now in the same
way floating through the m aeIstrom
of Wall Street. as the margins of
specializing cashiers The last prop
has fallen. The scales are coping
from the eyes of wronged and
humbugged people, and the Con-
gresham who shall dare to raise
his voice in favor of the perpetual
ton Of the system will sigu bis own
political death warrant 1Hs7 Ho (