New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-17
MAYS NAME DISTRUSTED.
REFUSALS TO CASH BANK OF ENGLAND
NOTES SIGNED BY THE CASHIER.

THE BANK REPORTED TO HAVE LOST
SEVERAL HUNDRED THOUSAND POUNDS
by HIS INVESTMENTS OF ITS
FUNDS IN HIS SONS
BUSINESS VENTURES.
London. Nov. 1S.-Owing to the reported ir-
regularities in the management Of the Bank OF
England, several cases have occurred where
refusals have been given to cash Bank OF Eng
land notes bearing the autograph Of Frank
May late Chief Cashier of the Bank. Mr. May
was involved it was said. in the operations OF
the firm of Coleman & May, the Junior member
of which is the of Mr.. May. The firm got
into trouble. and the governors of the Bank OF
England decided that their cashier had better
retire from their employ.
Boston, Nov. 16-"The Herads' London
correspondent cables the following regard
ing the trouble in the Bank of England:
Another sensation has burst upon the finan-
cia world. involving less an institution
than the Bank of England. Some days ago IL
was publicly announced that Chief Cashier r.
May Of the Bank of England had resigned his
post after twenty years of service. and would
retire on a pension, literally voted by the di-
rectors 1t now appears that Cashier May, so
/ am informed not only retres. but his resigna-
ton was demanded by the directors. 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 short tlme
since the directors found cause to question the
soundness of his Judgment which was sub
jecting the bank to unaccustomed loss. They
voted to retire him half-pension.
After further investigation of the nature
of his Investments they decided to retire him
peremptorily and refused TO pension him. 1t
seems that this officers chairman or
leading director in some of the sO-caled trust
companies of which so many have gone To the
wall during the last twelve months, revealing
iamentable state Of financial unsoundness. In
the companies in which his son was so deeply
interested the cashier of the Bank of England
invested large sums of the Banks money by
virtue of the discretionary power intrusted TO
him. The collapse of the companies swamped
these investments of the Bank of Englands
money. The amount is not yet definitely known
but am told that it is not less than O00
and Il may possibly be s2000,OOO or S3OOOOO0
One Of my informants, whcss word is an
authority in this city, says he believes the Bank
of England has lost several hundred thousand
pounds.
THE cashier has been summariy removed. but
the Bank probably has no means OF proceed
ing against him, because there is no indication
of dishonesty his part, but only OF exceeding
bad judgment; and it is said he acted within
the limits of his authority. But the revelations
will come about in a curious way, for the
cashier. being discharged, has not penny to
his name and his creditors about to proceed
against him in the Bankruptcy Court, where
full investigation will be demanded.
Il am also Informed that an -applicationto
bankruptcy will be made this week. The cred
itors' papers are already drawn up The
vel Is that the Bank Of England permits this
for the result must show how fallible its ad-
minjstration is. and public confidence will be
seriously disturbed Financial men cannot un-
dcrstand why the bank allowed matters to
come to the verge of this dangerous disclosure
Why did not the bank do for Itself in this case
what 1t did for the Barings in their historic
dilemma? The obvious course would have been
to have quietly paid their cashiers debts. and
so avoided not only the disclosure Of the banks
loss. but what is even more important the Pc
cuar state of the administration, which gave
an individual unquestoned authority TO eXer-
else faulty and costly judgment.
1T reveals weak spot in the strongest fnan-
cial institution in the world and will not en-
hance the credit Of English financiering. And
this is the result most to be feared. for II
the British public, in the present depressed con-
dition of affairs. should have any reason to
lose a single grain Of its implicit faith in the
wisdom Of the Bank OF England, there Is no
foretelling the result on this already disturbed
community.
"Of course nobody imagines that the Bank Of
England could be seriously affected in purely
monetary point of view, by any loss in which
an unfortunate official may have involved 1t.
The bank is strong enough TO withstand many
such losses but TO abate one little Of its prestige
for sound administration is another matter and
couple this with the strange faulty whHfi
permits it's ex-cashier to be subjected TO bank
ruptcy proceedings with the curious dsco-
sures of the banks management which must
of necessity ensue. Us surely an error in judg-
ment the part Of the directors However. 1t
Is not too late for the bank to prevent the
bankruptcy proceedings against its long-trusted
cashier. but IL has not done yet II Is a
strange thing. / give the rumor for what 1t is
worth, but add that | see reason to doubt
its truth. considering the authority from whence
1t comes to and the fact that have always
found statements from that source absolutely
Trustworthy"
The reports from London of the discovery of
Irregularities in the management of collateral
curies by Mr.. May formerly cashier OF the Bank
OF England have not been fully credited in Wall
Street. A visit to Drexei. Morgan & Co., J. & w.
Seligman & Co., Ladenburg. Thalmann & Co.. Hail.
garten & Co.. and other houses with foreign con-
nections brought out the statement that these
firms were ignorant of the facts except they had
been published In the newspapers 1t pointed
out that the Irregularities could not be serious.
they would have been reflected In weaker English
markets. Bankers said that they expected un-
happy consequence from the reports although 1t
owing to the sensitveness of sentiment in the
present unsettled state OF Internal tonal finances.
Mr. Mays signature as cashier had been refused
In London discredted 1t declared that
ignorant persons concerned A London special
cable dispatch reported that Bank Of England
decline OF six points in five days.