The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-04
A Serious Charge.

The charge against the treasury depart
ment in connection with the wrecked Key
stone Bank of Philadelphia is very grave
one, and one that should be thoroughly in-
vestigated. The Keystone Bank is a ma
tional bank. and the charge is that the con-
troller Of the currency was informed Of its
rotten condition by the national bank
examiner fully three months before the
banks doors were closed by the treasury
authorities. And during this time the peo-
pie were depositing their money in the
rotten concern. There were a few, how
ever, who were given timely warning Of
the banks condition, and drew their money
out of it.
II this charge is true the treasury de-
partment wholly failed to act In accordance
with the letter and spirit of the national
banking law. And there must have been
some reason for its failure. What was that
reason9 That is the question which hun
dreds Of people who lost their money by the
wrecking of the Keystone bank are asking.
As yet they have received no answer. The
treasury department has offered no explana-
ton of its course.
And, strange as it may seem. when it was
proposed in Philadelphia on Tuesday to send
letter to the President. asking him to
have the m after investigated, the PROPOSE
ton was rejected. Can it be that there is
anything which the treasury department
wants hidden? There certainly ought not
to be.
Not only were hundreds of citizens of
Philadelphia losers by the failure of the
Keystone and Spring Garden national
banks, but Philadelphia lost nearly $500, 200
and Pennsylvania more than 100000.
The two banks were closely connected, and
the doors Of one were closed soon after the
doors Of the other. Both banks were
wrecked. They did not meet with business
misfortunes Some of those entrusted with
the management of them simply robbed
them.
The government cannot afford to remain
silent in the face of the charge which has
been made against the treasury department..
More than once the name Of cabinet officer
has been mentioned in connection with the
wrecked banks, but thus far no evidence has
been produced to show that he is In any
way responsible for any of the acts which
led to their ruin.
But the fact that he has been associated
with them in the minds Of the people shows
the necessity for a full statement by the
treasury department, explaining why the
Keystone bank was permitted to receive de-
posts for ninety days after the controller
of the currency had been notified that it
was insolvent. 1t certainly looks as If the
managers of the bank had friends in Wash
ington who were sufficiently influential in
the treasury department to keep the bank
from being closed until the banks
officers succeeded in accomplishing
certain things which they had in
view. The government cannot
afford to rest under a suspicion that the
treasury department did not pursue
strictly straightforward course in the mat
ter 1t must make a statement. Already
the impression is getting abroad that,
owing to the alleged inactivity of the treas
ury department in the Keystone bank
matter, there is little, if any, more security
for depositors in national banks than there
used to be in the old state banks.