New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-10-27
OUR INEFFICIENT BANKING DEPARTMENT

OUR INEFFICIENT BANKING DEPdRTuENI
The Banking Department is conce6edly one
of the most important departments of our State
government. Charged with the supervision Of
the banking institutions of this great Common
wealth, the gravity of the trust committed to it
can hardly be overestimated. The present
Superintendent of the Department is Charles NJ.
Preston, one of Governor Hills appointees. How
has he been dscharging his official duties since
December, 1889, when they began? 50 as to
win the confidence of the great multitude whose
savings are intrusted to the banks? So as to
commend himself to SAFE conservative bank
ers SO as to make level-headed voters desire
to continue the Democratic supremacy at AL
bany by the election of Roswell p. Flower?
In the letter from Albany which we print
this morning these questions are answered. Let
every citizen who for any reason takes an in
terest in the Banking Department carefully Rad
it. Our correspondent shows by plain preSenta-
ton of facts that the department under Mr.
Preston affords supervision which does not super
wise That is the long and short OF it. The
Superintendent is an active politician, and may
excel as Democratic boss. But as the head Of
the Banking Department he is conspicuous
and costly failure. He is nothing OF "watch-
dog" not he; but then he is not bad at locking
up the stable after the horse is stolen. He is
that sort of Democratic ofical-and ne shouts
the battle-uy of Tammany nominees Flower
and Sheehan. What does his official record
show? Why it shows that during his admins
tration two prominent banking institutions have
suffered great losses, and that owing to want
of thorough supervision on his part these losses
were far greater than they need to have been.
One of the banks in question was reported to
the public by the Banking Department about this
time last year as having a surplus of nearly
S136, 600, and yet four months later it was
discovered to have deficiency of $650,000.
Does supervision supervise? The other bank
was reported to the public BY the Banking De-
partment in January, 1890 as having a surplus
of nearly $26S,0O0. And yet several weeks
ago it went under with deficiency of $3.50, 900.
Does supervision supervise? Superintendent
prestons course in regard to the last mentioned,
the Kingston Bank, was so Ieprehensible that
if Governor Hill appreciated what he owed to
the people he would remove him from office.
When Superintendent Preston learned that this
unfortunate institution admitted that it had lost
by the rascality of one OF its officials $4,000
what did he do? Did he promptly send down
the expert bank examiners from Albany, direct
ing them to make thorough Investigation No
he did nothing. AT least nothing of that sort
possibly he had too much Democratic politics on
hand just then, 50 thai Banking Department
business had 10 wait. lie did nothing in view
of this robbery of $4,000 of the depOsitCrS'
money, although he was in Kingston when it
was brought to light 1t was not until eleven
days later that his tardy examiners put in an
appearance only TO find that the robbery amount
ed, not to SIS, 900, but to S450,000. a num-
Der Of depOsitors dew their money out of the
bank when they first heard that the bank was in
trouble, but on receiving the emphatic assurance
that the loss would not exceed $4,000 they
redepO,ited their mOney-and lost it. Does
supervision supervise?
Superintendent Preston is labOring for the cleo
ton of Flower, Sheehan and the rest Of the
Democratic ticket. And doubtless Governor
Hill, Ed. Murphy and the other Democratic lead
ers who combined last year to prevent the cor
rupt canal ring from being investigated have
no fault to find with him. But citizens with
deposits in savings banks, taxpayers and all other
voters who aim for efficient management OF pub
lie affairs will be apt to decide that it is high
time an end was put to Democratic supremacy at
Albany.