The Palatka daily news. (Palatka, Fla.) 1884-1888, 1886-10-02

Record OF the National Banks for
Twenty-three Years Comptroller
Trenholm on Their Record.
Comptroller Trenholm has not yet re-
ceived the report of the Bank Examiner
who was sent to investigate the condi-
ton of the First National Bank of Port
land. Though 1t is not supposed the
credit Of the bank has really been i'm
paired, the examiners duty extends to
discovering whether any of the officials
are criminally responsible for the defal-
cation. If so the examiner Ia bound to
give the Information to the United
States District Attorney and to the Mar
shall also, that he may cause the arrest
of the officials charged with completely
in the defalcation. All this has been
done, and the defaulting cashier, Mr..
William L. Gould, is now prisoner in
Portland Jail, failing to get $50, 900 bail.
Referring to this incident in connec-
ton with the Fish and Ward matter in
New York, Comptroller Trenholm was
asked if he did not sometimes doubt the
integrity of all the national bank Off
Gals.
why do you ask that question: he
replied.
bcCduSS uCldACaltDLS are IO" KNOW j
as the great American crime, and it ap-
pears from daily developments that the
most honored and most trusted have be-
come robbers and defaulters. Why
should national banks be an exception:
| They have furnished abundant material
for suspicion"
THE RECORD OF TwENTY-THREE YEARS.
Turning quickly IN his chair, the
| Comptroller reached for something.
Could it be possible he intended violence
for breathing such a remark. He, who
is the embodiment of gentleness, cour-
tesy and suavity certainly could not har-
Dor such thought.
please hand me that paper, just be-
yond my reach" he asked of his clerk.
Holding it up, Comptroller Trenholm
said: "The National Banking act has
been in operation twenty-three years;
during that time 1862 banks have been
organized. Now, how many of this
number DO you suppose have become in
solvent from all causes combined?'
This was the first time your CORES
gentleman for Mr.. Trenholm is from
the ill-fated city of Charleston-follow
the Yankee plan of answering a ques-
ton by asking another. He was evil
IDENTIFY able to speak with accuracy, for
he had the figures before him; and
to give him the opportunity of de
Tending the character of the national
banking Off cials, ''forty-eight" was the
reply made TO this question.
NUMBER OF ISsoLvENT BANKS.
''Of the 1862 national banks organ
lied since 1868 only liz have become
insoIvent from all causes combined.
Eliminate all who have paid their de-
positors in full, and presume you would
have about the number you said as hav-
ing proved disastrous to those who
trust ed them. The liz from all causes
combined includes the recent failure Of
the Abingdon National Bank in Massa-
chuSetts. An examination of the assets
of the bank shows a very remarkable
financial state. There was never the
slightest cause for the suspension. The
depositors will be paid in sixty days.
principal and interest, all that is owed
them, and there will still be a hand
some surplus for the stockholders. The
flight of the cashier seems TO have
caused panic among the directors of
the bank, and suspension promptly fol-
lowed. The Arlington Bank is a sam
pc of many others which have closed
without any real cause for so doing.
So when the number of organization
that have paid in full is deducted from
1l2. it is perhaps safe to say one-half
or fifty-siN banks have had dishonest
officials. That is an average of but one
every six months for the past twenty
three years out of 5000 organizations.
Considering the immense amount OF
money handled in that time and the
temptation in every direction to epecu-
late and take advantage Of places Of
trust. l think the record Of the national
l-;,r sretay,, IL eoy,, - hin O m r. pro,,d