The semi-weekly miner., 1882-03-04

broken Banks aud Lax Directors
Mr.. John Burroughs, who unitcs the
cOntemplative life Of u naturalist and
philosopher with the duties of . Govern.
nlent tank examiner, contributes to the
March Century q valuable article on the
shortcomings Ol national bank officers
and directors, in which he says:
Yes, gentlemrn directors, you are
probably the victims Of your own credtl.
lity aud ignorance. Your stock is worth
less, and the stockholders who elected
you are betrayed; you have not done
your duty; you have let your cashier
snub and hO0dwink you. You have not
assumed and exercised the authority
that is rightfulIy yours. The officers are
anlenable to you they are in your enl-
plOy let them understand that every
act Of theirs is to he open % your ins,Hc-
tion, and subject to yLurarprovalor or dis
approval. 1t Is not their bank-it is
your bank its business and funds are
held In trust by YOU for the stockhOltl-
ers who elected you. Do not act as if
you were intcrlOpelH when you appear
III your own bank, or like Passengers" "n
IL train who hesitate long time before
they dare ask the conductor Il question,
and the train must Ike run as yol, say.
and ii the cashier grunlbles put him oft::
When disaster Overtakes u national
bank, it will Ike found, in nearly every
case, that the directors have left its en-.
tire management to its officers. They
have used IL" authority. They have
stood about and timitlly approved Of
what the Officers have done. Their iy-
norance Of bank matters lH.s been on,
source of their tin,i.lity, but their fail
ure properly to arprv. late tIlcdutis's and
and responsibilities has iecn equally
unfortunate.
Directors arc apt to expcc. too much
OF the annual visits of the bank-exa,ni-
ner. rs If hc p0ssCsse.! some clairvuva,,t
insight into the condition of every lank
in lis district. In the first place. the
illsides Of the bank may be entirely cat
en- away between his visits. Secondly.
he is u stranger, and can know little.
except by l,ears:.y, Of the character and
habits Of the bank 8 officers, or of the Sc
curity Of its loans. Hali'th.. discounted;
notes might he fOrgcrics, and the titles
to its real estate worthless. without his
it. Thirdly, the cxami.,a-
ton Of national banks 10y the govern
nlent is not undertaken directly in the
interests Of the stOcki,Oiticra and crcd;-
tors Of the bank. but in the interest o.
the requirements of the law. YIc,,.
banks are organized under ~, act ui
('"ngress, and they sustain !, certain rc-
l:.ti"n to the general governments: an;,
i. is this relation alone that the yny; ~
'nent IS bound to concern i:~:i! about.
:: :: = =:
In the fourth place, while it j., also
clearly the duty o, the bank-rxa,l,inrr
10 see that the funds OF the bank are not
or misappliel hy its officers !
and clerks, yet III the limited time
which he can afford to devote 10 the cx-
animation, he cannot always une..rti,
|rn"ds Of this kind, particularly III the
:;'se OF collu@ion. They may be deeply !
1uri.at il. the various accounts, and care
luily covered UP by false entries, an, !
"rged papers, and unless the examiner !
All take time to aMalyzc ard sift The
lusintss Of the bank for the i..st year as !
shown by its books, which would bc a ,
"''rk Of weeks, he cannot .,c sure the
lank is being r,LInal by its officers.
Bees carry OIL honey from the hive and
cave the comb all intact, ami cashiers
lave been known to exhibit as clean
md straight Il set OF books as need l,c.
wien their accounts We're little more
han an empty comb.