Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-02-25
RELIGIOUS BANKING.


itors of Archbishop Purcell was held, and
it was announced that the liabilities of his
estate were 81, 600, 900, and the assets
about $500, 600. 1t was further stated that
when the necessary legal and other ex-
penses had been met, the available prop |
erty would probably not more than reach |
five per cent. of the Indebtedness. A few
days ago the Union Generate Bank of
France collapsed. 1t was an institution
which had aimed at other than banking
enterprises. 1t projectors had conceived
the idea of enlisting religious sympathy as
support and financial basis, and they
had declared their intention to aid con-
vents and other ecclesiastical machinery
with their funds, and had even spoken of
magnificent plan for establishing great
Catholic newspaper, which was to guide
and speak for the whole Catholic world.
and was to have for contributors Cardinals
and Bishops and great dignitaries of the
Church. The religious enthusiasm of the
Directors was SO great that Pope Plus the
Ninth was induced to give them his bless
ing, and with this Endorsement they were
enabled to enlist the help of number of
Catholic potentates and princes. a dis
patch on Thursday informed our readers
how these reckless children of the Church
were feeced how the Austro-H Hungarian
Emperor, the Count of Chambord, the
Duke of Cumberland, and many more,
have lost their millions of francs; and so
we find these two important experiments
in the line of religious banking brought to
the same melancholy but perfectly natural
end
The instructiveness of these cases lies on
the surface. It is to be observed that in
both instances the religious sentiment was
employed as the substitute for commonsense
business precautions. And it is here thatre-
ligion must always be fatal to similar en-
terprises, for though it may be adequate to
the support of the soul in times of afflic-
ton, its capabilities are of necessity purely
spiritual, and it is no more available to
supply the place of collateral security than
good conscience would be to supply the
place of bridge over a swollen and rapid
river. The good conscience is no doubt an
admirable possession in its way, but it will
not keep it's owners head above water if
| L. foIIo T,et eo so Nth ra1;r;o, II
sannot be relied upon to secure the safe
guard of loans recklessly made without
proper security, nor can it be trusted to
secure a prosperous outcome for ill,judgea
enterprises. In the case of Archbishop
Purcell thousands of poor people put their
earnings in his hands confidently because
be was such good man. But his goodness
did not prevent him from making ducks
and brakes of all this property in the most
headlong way, and at last it turned out
| that if he had been an inveterate gambler
and profigate instead of the benevolent
old gentleman he was, he could not have
more thoroughly and hopelesslY dissipated
the large sums intrusted to his care.
In the case of the Union Generate, the
approval of the Pope and the support of
the Catholic dignitaries and princes were
ayailed of as substitute for prudent
management. It was thought that bank
which could secure the prayers of the
Church at any time need not be restrained
by sordid conventionalities, and in truth
it was not so restrained. Its course was
rapid, and bold and brief 1t relied upon
the religious sentiment. Its managers acted
as though the Pope could multiply it's
resources, upon occasion, in a miraculous
way. And now these managers are in
prison on we'll grounded charges of swim
ding, and the Catholic princes and digni-
taries are bemoaning the utter loss of
their deposits 1t would seem that these
two cases ought TO open the eyes of the
world to the simple fact that business Is
business, and convince even the most
pious that it is impossible to carry on
bank upon any other than sound banking
principles. The principles of safe banking
have been worked out from long experience
of the ways of men, and it has never been
| found that questions of sentiment had any
proper connection with them. Directly,
indeed, banker begins to lend money to
people because they are good, or because
they are of this or that religion, or because
of anything else than his knowledge of
their ability to repay him, and his assur-
ance of his power to compel them so to do
in case of need, that banker ceases to be a
business man, and his ruin becomes a mat
ter of certainty if he proceeds far enough
in this path.
Benevolence and confidence are no doubt
beautiful attributes, but they have no
place in banking. A banker is man who
handles other peoples money, and who
therefore must not have any personal feel.
ings in his business. His only safety lies
in unbending adherence to the principle of
complete security. If he becomes senti-
mental in any direction he is lost banker.
But religious banking introduces sentiment
as recognized principle in the business,
and of course it revolutionizes everything
with what results we have seen in the cases
OF Archbishop Purcell and the Union Gen.
erale. And since in religious banking the
directors hold out what is in effect fraud
ulent expectation, we do not see why this
kind OF folly should be suffered to escape
the penalties which modern civilization
visits upon non-relgious impostures. Take
for instance the case of the Women's Bank
of Boston, wherein Mrs. Howe feeced her
countrywomen so cruelty. In that case
the appeal to confidence was clearly akin
to the instances already cited. Mrs. Howe
deluded her depositors with fables about
mysterious philanthropists. The Union
Generate intimated that the Christian
Church was at its back, Both robbed