The herald., 1896-08-01

Henry Ciews

NitWb
Editor Herald: Almost everybody has
become acquainted with the name of
Henry Clews, whose weekly letters on
finance appear in a very large per cent
of the newspapers of the country. To a
great many people Henry Clews is
known as a great banker and financier
OF New York. There is a certain awe,
Difference and condecension inspired by
his name in certain quarters, and his
aforesaid letters are looked to as point
ing to the exact state of the financial
health, or pulse of prosperity, just as
the hands of our time pieces indicate
the minutes and hours. Whether Mr.
Ciews has really attained such position
in the world or not, he nevertheless
poses as having attained the exalted
position of debating, and being COM
petent to dictate thumbs up" and
thumbs down" in the financial and com.
mercial affairs OF this country. His sub
ject necessarily leads him to express
political views, especially at this time,
when finance and politics are nearly in
Interchangeable terms, and he has recent
ly devoted great deal of time and space
TO commencing the st. Louis gold plat
| form, and giving the minutest fiuctua-
tons of the pulse of prosperity, both in
Europe and this country, occasioned by
the actions of the respective political
| conventions. He has in unrefined
English told us that this bowling silver
craze means reputation of honest debts
and an attempt to pay hundred cent dol
lars with fifty cent dollars. He cants
and discants at length upon national
and private honor in a manner insinua-
ting that he carries about him the spot
less purity and nobility of an angel-as
though his daily bath was in fountain
of honor, and as though his inspiration
was the soul of patriotiSm-his mission
the salvation of his country from the
threatened crime of repudiating or seal
ing of our Indebtedness.
1t might not look charitable for me to
say that Henry Clews is today different
from what he represents himself to be,
for l am a believer in the possibilities
of reformation: but will say that think
there are no marked cases of reforma-
ton except upon a change of environ
ments and associations. Now propose
to reveal chapter in the life of Henry
Clews extending from 1871 TO 1874 and
will premise by saying that as Henry
Clews is still in business at the old stand
and is still subject to the same environ
ments. 1 am entitled to assume that if
tainted with moral leprosy then, time
has not ameliorated his disease. Here
is the chapter in his personal history
In 1871 at the city of New York Henry
CleWs and Fowler were bankers under
the name of Henry Clews & Co., with
branch house in London. The firm or
Hennequin & Co, doing business in
New York and Paris. desired exchange
accommodations with London, and they
arranged with Clews & Co. for permits
sion to draw on the London house in diff
ferent sums, covering a period of time,
TO the extent of $4,000. or about $4,000,
agreeing that by the maturity of each
draft they would have the money de-
posted at the bank in London to take up
the drafts. and would not expect Clews
e. Co to advance any actual money at
all. To secure Clews & Co, however. In
case Hennequin G. Co. did not have the
money ready to meet their drafts, the
latter deposited with the New York house
certain bonds worth upwards of $50, 600
as collateral security.
The business was transacted as agreed
upon, Hennequin & Co. having their
money always ready to meet their drafts.
and Clews & Co. did not at any time
have to advance anything on their ac-
count, and when the bills were all taken
up Henneouin G. Co. demanded the re-
turn Of the bonds deposited as collateral.
1t was then revealed that directly after
the bonds had been deposited Clews &
Co. had, without any right or authority,
to do so, borrowed money for their own
necessities from third parties and turn
ed over Hennequin q Co.'S bonds as
collateral therefor. ClewS & Co. failed
to meet their debts and lost the bonds
and went into bankruptcy. HenneQuin
& Co. brought suit in the New York SUI
perior court to recover their bonds or
their value. Clews & Co. answered and
got the cause delayed and continued I'M
til they succeeded in getting a discharge
in bankruptcy and then they amended
their answer and set up the discharge in
bankruptcy and succeeded in swindling
Hennequin & Co. out of the entire
amount. 1S74) No doubt HenneQuin
& Co. would have been glad to receive
fifty cent dollars in payment, but this
veritable history affords no intimation
that Henry Clews ever paid one cent on
the dollar for the bonds he had morally
stolen and devoted to his own private
ends.
This sketch is taken from the case of
Hennequin VS.. Clews Oil United States
supreme court reports, page SIC, and the
New ork case there referred to).
Very truly, W. F. HENNING.
Los Angeles, July %, 1896.