Daily Republican., 1881-11-02
WEDNESDAY, AOvEM Ben 2. 1851.
Crininally Careless Baak Dlree-
lOr0.

The Newark Mechanics Nationa
Bank embezzlement is another instanc
of the care lessness and criminal neglec
Of q Board of Directors, good easy souls
who think they have cashier who il
we'll up to finances and Is sufficiently
able to conduct the affairs Of a Natona
Bank satisfactorily without any as
sistance from them. They were per
fsctly willing to pocket large dividends
declared by the cashier and to certify
that what he said and reported was
strictly correct. 1t requires an explo
sion like clap of thunder from cleal
sky every now and then to convince
careless Directors of monied institutions
that cashiers are nothing more than hui
man beings after all, and that careful
watching is required that they may bt
kept within the bounds of h. nesty
though there are some who are perfect
ly hone.t-neyer did steal or embezZle
and very likely never will.
The long array Of respectable and
honorable men whose names are strung
out as Directors Of Banks is to give the
public confidence in the Bank and
stand as a guarantee that money d.
posted in the institution is safe, anu
will be there when called for, but if
this Newark Bank is a sample of the
manner in which National Banks are
conducted, the conclusion must be ar
rived at that the Directors know moth
ing whatever Of what is done with the
funds of the concern and with the
money of the depositors. Tueir appar-
ent knowledge of the affairs OF the
Bank seem to be derived from the
cashier only-possibly in some cases
another person may he taken into the
confidence of the cashier.
Baldwin, the defaulting cashier of
this Newark broken Bank, seems to
have had things entirely his own way.
No Bank in existence had more pow
erful, wealthy and respectable Board OF
Directors, but they were useless, as
they had popular cashier who was
sharp enough to threw dust in their
eyes, and then when he had spent tf @
whole Of the reserve fund some S2,5O0
600, and had nothing more to spend, he
coolly called the Directors together and
informed them that the bare walls of
the building, and the few feet of ground
upon which it stood, was all that wa
left of the Mechanics National Bank
of New ark. He was cashier of strong
and popular bank. There was a paid
up capital of S500,OO0, surplus of
$4OO, 900, undivided profits of more than
$4,000 and plenty Of heavy depositors.
A deposit account was kept in New
York, tho balance to their credit
being sometimes as high as s., 900, 900.
Baldwin, the cashier, was allowed to
draw upon that balance whenever he
chose. Nobody connected with the
bank, but Baldwin knew the condition
of the balance to the banks credit III
the New York institution. Ii anybody
ever had any curiosity about the mat
ter he asked Baldwin, and this model
trusted cashier gave such answers as
best suited his plans. 1t seems never
haUa anfArAI M. nlt ~ Do -
these cOnhding Directors that Baldwin
might possibly not be like George
washington, 50 conscientious that he
could not tell lie. While they were
coming aud going, and at. t.euding on
discount days to pass notes that Bald.
win laid before them, good easy souls,
Baldwin was checking out the reserve
balance for his own PURPOSES While
he was reporting TO the amiable Direc,
tors that million and half of money
was Oh deposit to their credit and they
were gulping down all he said as truth,
he was tamperng with that account.
Finally, when he had muddled away
the handsome sum Of 5000, 900 or
thereabOuts, and there was deficiency
of 100000, when there should have
been a surplu. Of l,j00, 900, Bald win
could conceal his crime no longer and
the explosion came. The sum and sub
stance of this whole affair is that the
Directors are morally as guilty as the
cashier, and should, if there is any law
to meet the case, be made to pay the
losses incurred by the deposi,Crs. They
had no right to entrust the business of
the bank 10 any one man. The re-
spectaLility and responsibility of their
names at 'ached to the institution as
Directors induced depositors to put
their money in the bank. They would
not have done so had they known that
one man, aud he tho cashier, ran the
bank. We hope that New Jersey, with
her many excellent laws, has upon her
statute books one that will compel thsse
Directors to make good the losses of the
depositors, as their criminal careless
ness Is the cause Of the loss.
B smishers for Supr eme ad 2.
We second the suggestion that Hon.
Nathaniel b. Smithers be appointed by
President Arthur as Associate Justice
of the Supreme conrS Of the United
c,n<,. NJ Sp,;tlaru ia in tho ,,ary