Daily Republican., 1884-05-22
A Check Needed.

The furry in Wall street ought t.
convince the bankers of the country,
that officers of banks should be required
TO devote their whole energy to theiI
duty, abstaining not only from specula-
tion, but from all outside business.
There was neither the failure of any
bank nor the trouble of any bank which
was not brought about by its President
being rather more of speculator on
his own account than man OF strict
business methods on account OF the
bank. In each and every case the
President used the money of the bank
with which to speculate, and the sur,
prising part of it all was that he was
freely permitted to do it by the di-
rectors, whose least concern either for
themselves or the customers of the
bank were its interests. If the Direc-
tors have any duty whatever, it is that
of directing the affairs Of the institution
with which they are connected. But,
by the several cases of the failures OF
embarras sments of the New York banks
during the recent Hurried times, it was
made apparent that the Board Of Direc.
tors let. the entire direction to their re-
spective Presidents and that the Presi-
dents made it their business chiefly or
solely to use the banks and their depoS-
its for their own pecuniary profit. II
they were in the game of speculation
the banks prOHted nothing if they lost
-, \, Il Il 1,s-i
everything
There is but one safe rule in such
cases. and that is to give the principal
officers of banks proper liberal SALARIES,
and confine them solely in their business
operations TO the business OF the banks.
Should such rule be adopted it would
greatly strengthen public confidence
and prevent IN futnre the property OF
stockholders and the money Of deposi-
tors from being flung into the whirlpool
of Wall street by gamblers made reck-
less by using funds which are not theiI
own.
Men who have only their OWL money
to risk in such dangerous chances are
not So apt to risk ii. But men who
have to draw a check upon the money
of others in order to get it, eliminate
the element of caution from their opera
tions, and speculate with it as reckless
ly, blindly and ruinously as the spend
thrift spends his fortune.
During the past two weeks of bank
wrecking that has been going on, in
which national and private banks and
saving funds have tunbled into ruin,
there has been no trouble in our own
city of Wilmington. We are free to
say that we do not believe there is IA
city in the Union with sOuuder bank
ing institutions than Wilmington has
At no day nor hour during the last fort
night of bank bursting in New York
not a single bank or banking institu-
ZION i'll our city rested under shadow
of suspicion. No pressure whatever has
been brought to bear upon them. The
directors Of our banks are gentlemen
who direct and are not Spectators on
other peoples money.
This condition of soundnesS and hon
esty has not been brought about by any
special law compelling men to be hon
est, but because the directors and bank
officers are honest, ght-forward
business men from principle, no matter
what laws are in existence. But New
York is in "A different dilemma. In
snch whirling vortex of speculation
rs Wall street the temptation to do
wrong is greater, and there stringent
laws are needed to compel directors OF
banks and other bank officers to act
hone silly, even ifthey are not honest in
principle.