Omaha daily bee., 1894-02-22
PENALTIES roR DISHONEST BANKERS

PENALTIES FOR DISHONEST BANKERS.
The decision of the judiciary committee
of the house of representatives to report
favorably the bill increasing the penalties for
dishonest national bank officials will be
generally approved. 1t is expected that the
measure will be promptly passed and there
does not appear to be any good reason why
it should meet with opposition. 1t will GER
tainly not be objected to by honest men en-
gagged in banking, who 1t must be assumed
are not onlywllling but desirous that every
possible safeguard shall be thrown around
the business which may be necessary to pro-
tect it against the dishonest and assuredly
no representative of the people will oppose a
proposition which contemplates greater Sc
curty to the interests of depositors in
national banks. OF course the proposed
legislation will not prove an absolute remedy
for dishonesty. Embezzlement and other
criminal practices by bank officials will not
stop altogether after this bill becomes law.
But there can be no doubt that it would have
a deterrent influence, and this is all that
can reasonably be expected of any such
legislation. The present law is undoubtedly
lOO itIllclJ III luc HdlleT Ol peHdilltS, us wen
as in some other respects, and one feature
OF the proposed legislation which is espe-
cialy to be commended is that requiring that
persons arrested under the act shall receive
no better consideration while in custody than
is accorded to other violators of federal laws.
Dishonesty in the banking business is per-
haDs no more general than in other branches
of business, but those engaged in it are sub
ject to greater temptations, while the posi-,
blity of widespread injury from the dishon-
esty of bank officials is also much greater
than in any other business. bank ruined
by the embezzlement of its officials invaria-
bly, carries down with it many people, who
are left helpless and hopeless by the disaster
such as the small depostors who have con,
fided everything they possessed to the care
of the bank. The deliberate robbery OF
these people, everybody will agree, can
hardly be too severely punished, while the
men guilty of such robbery whatever their
previous character social position and in
fuence may have been, should be given no
better consideration than is accorded to any
other class of robbers 1t is travesty on JUS
tice when the genteel bank embezzler, whose
DTdCIlCeS nave WTeCheu Ine lnSIlJuN
tion of which he was trusted official and
brought disaster to hundreds, is allowed spe-
cial privileges because he has wealthy friends
or social or political influence. In other
countries such rascals when discovered take
their place with their kind and they should
do the same here.
1t is probable that the present congress
will make other provisions for the greater
security of the public doing business with
the national banks, such as increasing the
responsibility of directors, prescribing more
stringent conditions under which bank Off
cials will be allowed to borrow from the in
sttutions with which they are connected,
and a stricter and more thorough system of
examination. These provisions have been
recommended by comptrolers of the cur
rency for years, and they are demanded not
from any prejudice against the banks, but
in the interest both of those institutions
and the public. Honest bankers will not
object to them and the friends of the ma
tional banking system will approve of them
as tending to strengthen the system in public |
confidence.