Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-05-09
Lancaster .gntelligenc cr
New York Men and Methods.

New York Men and Methods.
The collapse of the firm Of Grant &
Ward sffords a great deal Of food
for talk and thought, because of the
light 1t throws upon the business meth
ois OF tho metropolis, upon the way its
fortunes are made and lost, and upon the
plunging career Of the Grant family,
which came near to being our royal
family.
The general and his three stalwsrt
s)ns seem to have been in financial
Glover since he retired from the presi-
dency; the assignments made by the
sons, who range in age from thirty five
to twenty seven, indicate that each
had possession of hundreds of thou
sand Of dollars. The eldest was
a colonel in the army, got married,
and resigned that fat Office for fatter
pursuits. The second married rich
mans daughter. The third picked up
four hundred thousand dollars with
speed and ease. The general, enjoying
the income of the two hundred and ffty
thousand contributed by his rich friends
for his endowment, was as fortunate as
his sons in his speculations, and amassed
wealth. The family seems to have re-
clined upon Mr.. Ferdinand Ward, a
young man who had in few years
achieved large fortune and the
reputation of skillful finaucier,
Mr.. Ward has succeeded in wrecking the
fortunes of the family and himself ;
which shows that their trust in him was
not merited and the plain lesson to be
dsduced is that it is not prudent to trust
anyone else to make your money for you
OF lose it, The general and his sons were
too condding. Their partner turned out
t. be scamp, and while all the fortunes
OF the family are swept away, their cred
itors doubtless will still suffer. The
result is not creditable to the business
sagacity OF General Grant and his
sons, though no imputation is
made upon their own business honor.
Nor are the business methods of New
York iinanciers generally much COM
mended by these developments. The
Marine bank failed because its president
allowed an immense Oyerdraft to Ne made
upon it by Ward, under the promise to
deposit security TO protect it. From
which it appears that New York banks
will accept promises in lieu of perform.
ances, just as any coudiing country
pumpkin might do.
1t also appears that Mt. Ward, having
deposit in one bank Of 81 200, drew u
check for S2lO 600 against it, for which he
got credit in the Marine bank, and that
bank got credit for 1t in the clearing house
without leave or license from the bank
upon which it was drawn and against
whose balance in the clearing house II
was cOOlly charged such calm robbery
as that would not be submitted to by
the stupidest pumpkin the country ever
grew. The idea of a bank being com.
PEELED TO pay check of depositOr who
has not funds to meet It, is something
entirely novel, and we would venture tC
say even ridiculous, were it not that the
thing is actually done in the assumed
c,ntTe of financial light and intelligence
Another striking thing in New York
filauciering discovered in these proceed.
ings is that owners Of valuable securi
ties deposit them confdingly with money
lenders, without security that they will
ever see them again. 1t appears that it
is the habit Of mOuey lenders in NV
York, as elsewhere, to require security
as collateral for their loans. In this
case Mr.. Vanderbilt, president Of rail-
road, borrowed S70O,O0O from Grant
and Ward aud gave them twice that
sum IN second mortgage bonds o
his road as security; wheTeupon Ware
used the bonds to borrow larger sun
than the amount he had loaned 1t wouC
seem that there is a great deal Of con-
tiding curlOusly mixed with a great dea
of doubling in New York fnancering
and plenty Of room for the confidence
man to flourish.