The Republican. [volume] (Oakland, Md.) 1877-current, 1883-01-20
Peculiar foundations,

through the uetalcdJlOH OF their cnleI OH
GERS brings up the old story again of
men who are uuable'to withstand the
temptation of trying to grow rich in a
day by the use of other peoples money.
The failure of the Second National Bank
of jefferson. Ohio, is dramatic in its sur
roundings, for the cashier is fugitive
and his assistant was smitten with
PARALYSIS when he learned that his mis-
deeds were discovered. The approsria-
ton to his own use of $3.50, 600 by the
President of the City Bank of Rochester
is startling in its magnitude, but does
not differ in its essential features from a
dozen other similar operations that have
been brought to light within the last
five wears. How many cases there are
of the same kind which are concealed
by fortunate turn in the speculations
into which the officials have ventured,
or which are quietly arranged by con-
trbutions of friends to save apublic ex-
posure, it would be hard to guess.
Reasoning from analogy, and from
what we know of the springs OF human
action, the number Of such must be very
considerable.
1t is only few days since r. Porter
Lee, former President of the defunct
First National Bank of Buffalo, was
sentenced to a term of imprisonment for
misrepresentation of the funds of the
bank for purposes of speculation. but
Lees disgrace appears to have had no
effect upon Mr.. Upton in the neighbor-
ing city of Rochester, whose unlawful
use of the deposits under his control
probably does not reach back to the time
of Lees arrest. Lee speculated in Wall
Street stocks; Upton in oil, and it may
be fairly presumed that the Ohio cashier
and his assistant sguandered the $50, 900
or more which they took by speculation
in stocks, oil or grain.
The Bank President who goes wrong
is almost never a gambler in the or
binary sense of the word. A habit of
playing for money would be accounted
sufficient reason in any community for
removing him from his position of trust.
Depositors may nearly always feel sure
that the officers OF bank are ''men of
good business habits They cannot
visit gambling houses or form habit of
playing for money anywhere without
losing just that sort of reputation for
trustworthiness which banker must
have. But they can buy grain, oil or
any other commodity in the way of spec
ulation, or buy and sell stocks which
they never really owned, and still main
tain their position among commercial
men. We do not mean that the report
of such transactions may not affect their
standing, especially when it becomes
known that their operations are greatly
out of proportion to their means; but
ha 10 Not
destroy man s status as q banker to
have it known that he is to some extent
engaged in stock gambling, or grain
gambling, or oil gambling. Such deal
ings may be dangerous, but they are re-
spectacle
1t is Just this feature of mercantile
gambling that makes it such terrible
temptation to those who control large
sums of trust money which they know
they can use for few days without its
being missed. They do not deliberately
set about plan for plundering the bank
or its depositors. They are not thieves
and do not intend to become robbers.
They simply undertake to accomplish
in week or q month with the aid OF
capital within their reach, but belonging
to others, result that, without such
help, would be the work of lifetime. 4
They think they see q way clear to
greatly benefit themselves and then re-
turn the funds without injury to any one.
No doubt they sometimes succeed in
doing this; but there is no doubt either
that q man who enters upon this course
is pretty. sure in the long run to become
defaulter and commercial and social
Outcast.
Everybody knows by heart the lesson
that is just now being enforced by the
catastrophes at Rochester and jefferson,
and none know it better than bank
Presidents and cashiers. They, of all
men, would be the first to take the
alarm, knowing that one of their fellows
was engaged in any hazardous enterprise
outside of his office, and yet it cannot be
doubted that there are multitudes of them
who are doing-perhaps not to an extent
that is at present very dangerous-iust
the things that Lee and Upton did with
such painful consequences. II requires
greater moral stamina than most men
have to withstand the temptation to enter
into speculations which are constantly
brought to their notice. in the course of
their daily business, if they can COM
mand the requisite means, and it has
become evident enough that even
bankers, who are supposed to be superior
to many sinister influences which beset |
and overcome ordinary mortals, are but
too prone to fall by the way. Mr.. Lee
or MIR. Upton would have said year
ago that no man who would to the
slightest extent dabble in stocks or oil
in the way of speculation was fit to be
the chief officer of bank, and every
man OF financial ability in the country
would say the same thing TO-DAY; but
banks will nevertheless keep on being
wrecked by their trusted officers until
some check can be brought to bear
which is more potent than the mere
danger of financial ruin.
There are as many as half dozen
Bank Presidents now serving terms of |
imprisonment in the different States, and |
yet the special crime of which they are
all guilty seems to be on the increase
1t will disappear-if ever that time
comes-when the mania for sudden |
wealth passes away. OF course de-
linquents Of the grade of Bank Presi-
dents should be visited with the full |