The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-11-16
CASHIER MAYS DISGRACE.
Forced From the Bank of England
Without a Pension.

BOSTON, Nov. 16, 1s9S.-The Herald's
London correspondent cables the follow
ing regarding the trouble In the Bank of
England:-Another sensation has burst
upop the financial world Involving no less
an Institution thau the Bank of England.
Some days ago it was publicly announced
that Chief Cashier F, May of the Bank
of England had resigned his post after
twenty years of service. aud would re.
tire on a pension liberally voted by the
directors.
It now appears that Cashier May. so I
am Informed, not only relires. but his
resignation was demanded by the Direc-
tors, and no pension is given him for the
reason that ne has involved the bank In
heavy loss. The cashier was
intrusted with almost absolute power in
making Investments. A short time
suce the directors found cause to ques~
ion the soundness of his Judgment.
which was subjecting the bank to un-
accustomed loss. They voted to retire
him on half-pepsion.
RETIRED PEREMPToRILY.
After further investigation OF the
nature of his investment, they decided TO
retire him peremptorily aud refused to
pension him. 1t seems that this
officers sou was Chairman or leading
Director in some of the so-called
trust companies, of which SO many have
gone to the wall during the last twelve
months. revealing lamentab1s state oe
financial unsouudness. In the companies
in which his son was deeply interested,
the Cashier of the Bank of England
Invested lsrge sums OF the banks money
by virtue OF the discretionary power en-
trusted TO him.
The collapse of the companies swamped
these Investments of the Bank of
England's money. The amount is not
AaH Init al hnn hr1f I fn16 Oh
1t is not less than S1.000.00O, and IL may
possibly be $1,000 600 or $3 600. 900.
Que of the informanrs. whose word Is an
authority in this city, says he believes
the Bank of England has lost several
hundred thousand POUNDS.
The cashier has bssn summarify re-
moved, but the bank probably has no
means of proceeding against him, be-.
cause there is no indication of dishonesty
on his part, but only of exceeding bad
judgment. and it is said he acted within
the limits OF his authority.
NOT A PENNY TO HIS NAME.
But the revelations will come about In
curious way, for the cashier, being dis
charged, has not penny to his name.
and his creditors are about to proceed
ag ainst him in the Bankruptcy Court,
where full investigation will be de-
manded.
L am also informed that an application
10 UAukTupJCy Will Oo mAQo tHlS
week. The papers are already
drawn up. The marvel Is that the Bank,
OF England permits this for the result
must show how fallible its administra-
tion is and public confidence will be
ser ousIy disturbed.
Financial men cannot understand why
the bank allowed matters to coma to the
verge of this dangerous disclosure
Why did not the bank do foe itself in
this case what 1t did for the
Barings inn their historic dilemmas
TIE obvious course would have been TO
have quietly paid their cashier's debts,
and so avoided. not only ths disclosure
of the banks loss, but what is even more
important. the peculiar state of the
administration which gave an indi-
vidual unquestioned authority to exers
else faulty aud ,stly Judgment.
1t reveals weak sDot iu the strongest
financial institution In the world aud
Will not enhance the credit OF English
financiering. And this is the result
most to be feared. for If the British
public. in the present depressed
condition of affairs, should have any
reason to lose single grain ollts lin-
pliciG faith In the wisdom of the Bank OF
England, there is no forstalllng the
result on this already DISTURBED COM
munity.