The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-12-27
PENNsYLYANLA'S WxDC1r nxykS
Uncurbed and without ssexusrA, for the
Protection OF DeIs-Itor.

Uneurbed and without sSerusrA, for tho
Protection OF DeIssltors.
HARRISBURG. Dec. 26-Theeilure Of tho Ty.
rome Bank. one Of the 200 + more private
banking institutions doing buiness in Penn
sylvania uncurbed by any laS is the fourth
concern OF the kind that has goMunder within
the past four months. 1t is the NEURAL result Of
the irresponsible wildcat bankinCtystem of the
STATE which the Legislature haspersistently
refused to place under legal restraot. It is as
easy to start bank in Pennsylvania as It is to
start grocery. All that it is necessary to do is to
hire room and put up a sign that Acre is o
bank within. and there you are. Thesnly law
relating to these banks is one requirinAhem to
make an annual report to the Auditor-Seneral
and pay to the State tax Of three per cnt. on
their not earnings. which must be declared
under oath. Many of the banks are locaAd In
small towns. remote from any national oryeg-
ularly incorporated State banks. and archie
sole repositories of the savings Of the cdp-
munities by which they are supported. 70
establish them no authority from the State ;
required. They have no capital stock. and am
not required to register. make returns to tha
State Of the amount Of capital invested. or fur
nish statements to any person Of their assets
and liabilities There are no means Of know
ing the amount OF money these banks hold ON
deposit in the aggregate but eleven Of them
that failed in the course OF a few years past
lost for their depositors $1.5O0O 900. and from
that it may be inferred that the total amount
S
at AZ very conservative ssr estimate: .u
tive Law. that e only passive; The only Audi
Of the Eesisature the dangerous privisaes q
the system under which these Institutions ex-
s s s9G ss sss sxas
SIS efforts IL that direction while a member Of
ssa ' rsPer. sSpossd II, sbsasd,ty dsnss s:
ers made e him., Besides being I Re:
rom the ls
ports showed that regular and very compre-
sP
y one-half OF the eenterprising bankers per.
N e st
s statements .R q this KIND have been placed BE-
erals who have handled the subject since Gen.
port twenty nine 81 tie SanEs We're quoted as
than SsS m s lean and bNn sw0re that they
sands Of dollars OF other peoples money In
ps y issfsnss sl
sss iii sn s IL sqs e..
to es! as f Ssns saS eoas
"as tSs 81 S1 sassssss
IN Rots n mich a It
Statement Of a Columbia county bank the
i sss4 lacked sa'd only ss aosrs Ss
ether 8 ths private
change business. having met with no loss at
Eli hss but IS 4 Sny EAR
the. years work. A Crawford county bank re-
ass S b VIII IL ssssR 81 tSs
S%!en 5sIs,t .Se q
bank to cap the climax In reporting its ex.
psnsss 70 Offset ths bss5rpnes and save The
s2 and rankIy crested itssI VIII s ths SUM M
OF sRoSSs ifs a Of the
2 previous report had returned $3EO. 900 on
or the next year reported an increas cd amount
OF deposits. but no income. Mr.. Mess re-
port made prominent the Significant fact that
that banker had made no report to him be-
cause since bis last return he had closed his
doors. promising to nay at some timo twenty
cents on the dollar to his deceived depositors.
was believed that this palpable exposition
OF the State would Be. quickly followed at that
session OF the Legislature by the passage Of
some safeguard around depostors. Auditor.
General Niles drafted Q bill to that effect. and
1887 for its passage; His idea was to have q
bank examiner, with authority to Obtain full
banks. so that their. true condition could be
known and made public In the interest Of the
bill Was defeated. and no friend Of II hesitated
70 sllege that the interested private banker
Pending. Since. then there have been many
failures. involving q loss OF Something like
70 prevent others from :pringIng up whenever
II may SUIT me fancy OF men with ambition to