St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-06-03
SAVING THE BANK.
The Bold and Dashng Course Of Young Bank Official
Saves the Institution From Ruin and Makes
a Fortune for Himself.

first time he officially sat down in the
managerial chair of the London and
Calcutta bank.
The new manager was little man,
and, perhaps, not over forty, but look
ing older. He may have been said,
without metaphor, to have been born in
the bank, for his late father had occu-
pied the post of resident porter. AS a
boy he entered the banks service, and
by irreproachable diligence in his
duties-and seniority-had attained
his present position. The dream
of his boyhood was realized,
and yet he was not altogether
happy. After remaining in deep
thought for few minutes, he rose,
and, opening a large safe, took out the
banks private ledger. Turning over
its leaves he came to the account-or
accounts, rather, for they were sew
eral-of MeSSrs. Brownlow, Jones q
Richards. While the accounts were
for widely diverse branches of the SAID
firms business, they presented a strik
ing resemblance in one respectfully
were all heavily overdrawn. Mr. Stor-
mont footed up: the debit balances and
found them to amount to nearly half
million sterling. He then took up the
accounts of some other firms having
equally unsatisfactory totals. Shaking
sigh almost of despair.
lover two millions advanced on Sc
curitieS not worth that" he exclaimed,
swapping his fingers cOntemptuOuSly.
But the bank must tie swaziland I'll
do itr'
If Mr.. Stormont became convinced
that certain measures we're essential TO
the banks welfare, he was not likely to
be deferred by any Squeaming ScrupleS
m thp Iii il hinu Of thpm Hp
Sumed his seat. and while he is await
ing the arrival of Mr.. Theophilus
BrOwnlow, of Brownlow, Jones IL
Richards Ito whom he has sent an
urgent note asking him to calD, we will
take the opportunity of imparting some
information regarding the bank itself.
The London and Calcutta bank had
been founded more than Il century ago,
during the palmy days of the East India
company. 1t prOSpered amazingly, and
in later years was converted into joint
stock concern. The proprietary were
numerous and wealthy, and the paid up
capital was 92.000,0G0. The last balance
sheet showed the capital to be intact,
and there was $4,000 added to the
rest" or reserve fund, which now
stood at 99O5, 0C0. \ dividend of u per
cent was declared, and the directors
were accorded hearty vote of thanks.
UUI WIS IlON lllc Udlth SlUOu OH DID
per. But the actual position was that
sum larger than the banks entire cap
itsl was advanced to customers, who, if
called upon to pay up" would be ut
terly unable to do so, and Of that class
Of debtors were BrOwlow, Jones & Rich
ards. This firm had been long eStab-
iiShed. and two or three generations of
partners had retired from it with hand
some fortunes. But times were changed
now. The SueZ canal was opened; the
Eastern markets We're III daily tele-
graphic communication with London,
and traders profits were reduced to a
minimum. TIE depreciation of the sill
yer rupee, too, exercised disturbing
influence on the trade, and neither Mr..
BrOWnloW nor his partners took care to
adapt themselves to the new state
of affairs. They held on by their
Dld-fashioned notions. They doubted
the advantage of the canal to
British commerce. The Cape route had
answered their purpose admirably, and
they entertained the good old ConSerV-
atiVe theory. that as Britain's glory and
wealth had mainly arisen from the in
finite superiority of her marine, any
shortening of routes (and of necessity
leSSening the number OF ShiDS and sail
orS Employed was inimical to the true
interests of the empire. Mr.. BrOwnlow
was regarded III the city as sound,
shreWd business man, but in reality he
knew little about business matters in
general-and perhaps still less of his
own. He succeeded his father i'll the
firm and let matters continue on the
same old lines. which were altogether
unSuited TO the changed conditions
of the trade. He was an eaSy-going,
benevolent Old gentleman Of about
sixty, tall, stout and ford, and usually
dressed in black. with some of the old
eccentricitieS of city attire about him.
The parlor door opened, and Mr.
BrOWnlOw entered.
Good morning. my dear SirH' said
Mr.. Stormont, shaking hands with
great show of warmth.
''Ah. good morning." replied the
other, in dignitied but courteous way.
Let me congratulate you OH your ac-
ceSSiOn to Office. | may say l always
prophesied well of you. When on the
board used to remark to the other di
rectOrs: Mark my words, that young
fellow. Stormont, will be at the head of
the bank yet But what do you want
to see me about-Want my advice on
some important matter. ell? That's
right. | love to see young men cautious.
and not above taking counsel from their
elders"
"Will you be so good as to take
seat, Mr.. BrownlOw?" was the dry re-
Spouse.
The old gentleman complied, and,
after little general conversation, the
manager went direct to business and
drew the attention Of his visitor to the
various sums standing to his firms
debit.
Il wish these sums repaid, Mr.. Brown
low he quietly said, land that at your
very earliest convenience"
Mr.. BrOWnlOW was aStOunded: not
only at the magnitude of the balance,
but at the managers slightly authori-
tative tone.
"Am-am-I to understand, sir" he
answered, drawing himself up to his
full height, that you are afraid of the
stability OF my firm?''
"Oh, dear, no. Only, you see, money
is tight just now, and-and-in short,
Mr.. Brownlow, must have your ac-
count SOU ared.o
The old gentleman scarcely seemed to
apprehend the full import of the words.
He carefully wiped his eye glasses, and
then attentively regarding the manager,
said:
your Acknowledgements eXtraordi-
nary-remarkS have certainly taken me
by surprise. But after hearing what
you have taken upon yourself to COM
municate, there is but one course open
for me to pursue-one course only-and
that course is, sir" he added in a tone of
voice almost judicial in Its solemnity,
THAT course is-at once to change my
firms account to another bank.";
GA capital plan, Mr.. Brownlou! But
is it practicable? Would not the bank
yOu offered your account to be likely to
set inquiries afoot, and might not the
result of these prove prejudiclal to your
frm?' said MI. Stormont, with genial
smile.
''Well, perhaps there may be some