Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-11-17
STOLE THE BANK DRY
Bank Of EngIaad's Cashier Tried
to A'd His ProfIigate Son
BY SINKING MANY MILLIONS
Loose Management or the Hank Dis-
closed BY iiis Transsctlons--T
Directors Discharged Him

don correspondent cables the following
regarding the trouble 10 the Bank Of
England: Another sensation has burst
upon the financial world, involving 90
less an institution than the Bank of
England, Some DAYS ago il was pub
Iicly announced that Chief Cashier r.
May OF the Bank OF England had re.
signed his post after twenty years Of
service and would retire on pension
literally voted by the directors Ii now
appears that csshier May. so am iu-
formed. not only retires. but his resig-
nation was demanded by the directors
and no pension Is given him for the
reason that he has involved the bank in
heavy loss. The cashier was entrusted
with almost absolute power in making
investments. A short time since. the
directors found cause 10 question the
soundness OF his Judgment. which was
subjecting the bank 10 unaccustomed
loss They voted TO retire him on a
half pension.
Dismissed the Cashier.
After further investigation of the
nature Of bis investments. they decided
TO retire him peremptorily aud refused
10 pension him. liz seems that this Of
icer's son was chairman, or leading
director in some OF the so-called trust
companies. OF which so many have gone
10 the wall during the last twelve
months. revealing lamentnble state OF
financial unsoundnees. In the com
panies in which his son was so deeply
interested. the cashier Of the bank IN
vested large sums OF the banks money,
by virtue OF the power entrusted TO him.
The collapse OF the companies swampcd
these investments OF the Bank OF Eng
lands money. The amount is not yet
definitely known. but i am told that IL
is not less than e1,O00000 and il may
possibly be S2,0O0.Oo0 or S3.0OO.O00. One
Of my informants. whose word Is an
authority In this city. says he believes
the Bank OF England has lost several
hundred thousand pounds. The cashier
has been summarily removed. but the
bank has no means OF proceeding against
him. because there is no proof Of dis
honesty.
Cashier IL Bankrupt
But the revelations will come about in
curious way, for the cashier. being di-
rectly charged. has not penny To his
Z
proceed against him in the bankruptcy
court, where full investigation will be
demanded am also informed that an
application to put him in bankruptcy
| will be- made this week. The papers
are already drawn up. The marvel is
! that the Bank OF England permits this.
J for the result will show how fallible its
/ administration IL and public confidence
will be seriously disturbed. Financial
men cannot understand why the bank
allowed matters to come 10 the verge Of
this dangerous disclosure. Why did not
the bank do for itself in this case. what
il did for the Barings in their historic
dilemmay The obvious course would
have been To have quietly paid their
/ cashiers debts aud so avoided not only
/ the disclosure Of the banks loss. but
I what is even more important. the pccu-
/ liar state OF the administration which
/ gave an individual unquestioned au.
/ thority to exercise faulty and costly
! judgment
Loose Financial Management.
/ Ii reveals a weak spot in the strongest
financial institution in the world and
will not enhance the credit OF English
I financierlng. And this is the result
] nlDoN VI Dt lthlcis AOE llit DEllfcD
I public. IN the present depressed condi.
/ ton Of affairs. should have any reason to
lose single grain Of It's implicit faith in
I the wisdom OF the Bank OF England.
there is 40 foreteliing what the result
would be on this already disturbed com
munity. OF course nobody imagines
T that the Bank OF England could be seii-
ously affected, in q purely monetary
1 point % view. by any loss IN which an
/ unfortunate official may have involved
H. The bank 10 strong enough 10 with
stand many such losses. but 10 abate
ono tithe OF its prestige for sound adj
ministration is another matter. and.
coupled with the strange fact that il
permits its cashier 10 become bank
rupt. with the peculiar disclosures that
follow. IL surely an error in judgment on
the part Of the directors However. il
- not yet too late for the bank 10 pre-
vent the bankruptcy pro weddings against
the 80 long trusted euIpIoye. but IL has
not done 50 yet II Is a strange thing.
give tho rumor for what IL Is worth. but
add that | see no reason 20 doubt its
truth. considering the authority from
whence ID cotnes To- me and the fact that
! have always found the statements
FROM that source absolutely Trustworthy.