Connecticut western news., 1881-11-09
A BANKS RUIN.
Too Much Confidence in a Cashier

The ruin of the Mechanics' National
 Bank of Newark is, possibly, 8 little
 more complete in its way, and the 'sim- plicit confidence" of the directors in
 the cashier little more obviously bot tomless than usual; otherwise, the case is not unique. The cashier was the cause of the ruin, as other cashiers, en- dowed with full powers and unchecked
 by any directors, have been, from time immemorial Perhaps the apparent strength of the bank. the bigness of the theft, and the spotless character of the thief constitute unusual features of this latest dedication. But it need not be expected that any of these things win rouse anybody to new vigilance, Or will remind anybody that the dnties they are shirking as trustees ore directors ought not to be any longer delegated to another person. These things are constantly happening. The newspapers take up the obvious lesson and read wholesome lecture to the men who take so much pride in what they call their s.business methods. Then matters move on as before. It does not appear whether anybody has profted Ey the exposure of the humbug of the afore- said "business methods. p 'ss4' The Newark defaulter's methadr was. simple. He was the cashier of strong. and popular bank. There was a paid up capital of $500, GOO, 8 surplus of $400, ,o00, undivided profits of more than $65, ,OOO, and heavy depositors in plenty. The concern kept deposit account in New. York City, the balance to it's credit being sometimes as much as S2, 500, 900. Bald win, the cashier, was allowed to draw on that balance whenever he chose. Nn-s body connected - with this admirably managed Newark bank, but Baldwin, knew the condition of the balance to the, banks credit in the New York instit1= tion. If anybody ever had any curiosity about the matter, he asked Baldwin, and this excellent and highly respectabTe cashier gave such answer as suited his plans. And all the while, the cashier was checking out of the New York bank the balance of the Newark bank and using it for his own purposes. While he was reporting to the amiable Direct ors of the Newark concern that million and half of money was on deposit to their credit, he was tampering with that account. Finally, when he had muddled away the handsome sum of $2, ,OOO, ,OOO or so, and there was 8 deficiency of $400, ,000 where there should have been surplus of $1, 500, 900, the explosion came.
 The Directors of the bank-good easy souls-had known Baldwin ever since he was boy. They repeat, with cer- tain plaintiveness, that they had i'm plicit confidence in him; as if he was very much to blame for their implicit confidence, and as if they are wholly ex- onerated from responsibility because they have been deceived. So Baldwin went on with his game, using the de- positors' money for purposes which he elsewhere sets forth. There does not seem to be much to add to this sad and disgraceful story. The sum and sub- stance of the matter is, that certain rep utable citizens built up bank, attracted the deposits of many people, poor and rich, and then left the management of the handsome accumulations, to all in- tents and purposes, in the hands of one man. Succunbing to temptation, this man has betrayed his trust and misap- propriated the money. And yet, the Directors of the bank are shrewd busi- ness men.