The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-07-05
His Financial Difficulties.

Cincinnati News Journal
The history of the financial embarrassment
of the Archbishop, to be fully understood,
must be taken as far back as those early days
of the diocese when, in its rapid growth,
money was urgently needed for the building
of churches and schools. Deposits were
taken by the Archbishop as early as the year
1915, and interest paid thereon. The Catho-
lies of this diocese we're almost exclusively
composed of foreigners-German aud Irish
who, belonging to the poorer classes, nat
urally sought some safe place where they
might deposit their earnings. 1t is a matter
of history that these deposits were never So
licitej. The thrifty Catholics would rather
have their money saved by the church than
by bank and their action was prompted
by the suppoSition that it would be much
safer in the hands of the head of the diocese
than with any State or national bank. If
this system of deposting money afterward
resulted SO disastrously, II must be acknowl
edged that the Archbishop, looking after the
spiritual wants OF the diocese acted so far in
good faith that he believed the business was
managed honestly and discreetly.
The system of paying interest on deposits
had been in practice some six years when
op, took charge of the financial affairs of the
diocese From that time forth, Bishop Pur-
cell devoted himself exclusively 70 the spir-
itual welfare of his people. For many years
the financial affairs prospered under Father
Edwards management The clerical super
vision of the cathedral and other institu-
tons while building fell to his care, and
through the confidence which his manage
ment inspired the deposits soon equaled that
of hourishing savings bank.
In the course of time, however, the bust
ness grew vast and complicated. Man never
labored under a more mistaken financial
policy than Father Edward Subsequent
events demonstrate how thoroughly iueom-
petent he was for the work which, if proper
ly conducted, would have required the assist
anee of several trained financiers The panic
of 1873 was passed apparently in safe
ty, and the utmost confidence
prevailed in the Archbishops security until
January, 1879, when his paper was heavily
discounted on Third street. Suspicion spread
that all was not right. Anxiety increased
with the failure of Slevin & Co, dry goods
merchants, known to be debtors of the Arch
bishop to the extent of $4,000 or more. This
anxiety gave way to the widest apprehen-
sion when, in few days Hempen's bank, in
which the Arch bishop was supposed to have
large sum on deposit also failed. The ex-
element extended to the whole body Of de-
positors, and caused them to collect in crowds
at the cathedral residence, at which the de-
posts were received. Some went so far as
to throw stones and threaten the life of
Father Edward. The demands of the credit
ors were promptly met as long as there was
a cent in the treasury. The amount on hand,
when the trouble came on, must have been
small, as Father Edward, hoping to satisfy
all demands and restore confidence, had Dor
rowed large sums from individuals, and $685.
600 from New York. But it was merely
drop in the great ocean of debt.
Father Edward could give no estimate of
his Indebtedness, nor did he know the num-
Der of his creditors. He had kept no syste-
matte accounts, and at no time in the forty
years of his stewardship had he known the
exact condition of his affairs. Being pressed
TO place some estimate upon the Indebtedness
he said that $500 would more than cover
the loss As the real estate and other diOce-
san property represented 5000, 600, it was,
therefore, considered an easy matter to cover
the liabilities by bonds with interest bearing
coupons based on the real estate. The arch
bishop made trust deed of his property to
secure payment of his debts. The trustees
appointed for this purpose industriouslv set
to work, issued bonds in the sum of $780, 900,
investigated the accounts, and greatly to
their astonishment discovered that the in
debtednesS. instead of being $3.50, 600, was
So, 651. 342 80. sum equal to the entire capital
of the national banks of the city. The inter-
est paid by Father Edward on deposits for
the eight years preceding the assignment
amounted to $500, 600, and that paid in thirty
years was estimated at 81, $780, 00 Under
these circumstances the bond plan was, of
course, impossible The trustees gave back
the property and resigned. The assignment
followed, J. B. Mannix, prominent young
attorney, being the assignee.
The knowledge of his financial embarrass-
ments was heavy blow to the Archbishop,
whose good name, however. has never once
suffered an attack from any one, however
they may have been injured by the financial
failure. Nearly four years ago, he retired to
the. Convent of st. Martins. in Brown
county, in whose cemetery repose the bodies
of his mother and brother, and there enjov-
ed a season of rest in the evening of a we'll
spent and arduous life, surrounded by living
hearts and hands ready to administer to his
every comfort
Character of the Dead Churchman.
Cincinnati Enquirer.
In many respects the beloved prelate was a