The herald., 1897-07-02
OFFICE OF THE HERALD,


This being the first day of the new fiscal
year, Secretary Gage has been indulging
in a few remarks to the reporters relative
to the country's financial prospects. He
calls attention to the fact that at the end
of the fiscal year 1896 the gold reserve was
only S102 0OO, 900, and that now it amounts
to s141, 900, 900, with not a cloud in sight
as to it's continuance"
The secretary looking through his rose
colored spectacles thinks that the con-
dition of the government is all that can be
desired. The business men, capitalists
and investors, not only OF our own coun-
try, he says, but of the world, are con-
tent with our situation and prospects. He
is also of opinion that former nervous
ness has given way to confidence and with
the passage of the new tariff law the gov
ernment will obtain sufficient revenue for
its needs, doing away with the trouble
some deficit of the past. That the same re-
suit might be achieved by reduction in
the wasteful expenditures of the govern
ment does not seem to occur to the
learned gentleman, as he gives no hint in
that direction, appearing to think that an
increase in protective duties is the
panacea for every form of financial dis
tress.
A prominent corporation of New Bed
ford, Mass, was recently shown to be in
condition of insolvency. 1t had been
heavy borrower at the banks. The latter,
trusting in the integrity of the corpora
tion's treasurer did not believe it neces-
sary to inquire further The treasurer
was an honest man, sd far as known, but
he had been concealing the fact that the
business of the concern had been losing
money for some time. 1t was not an in
stance of trusted official appropriating
to his own uses the funds of the corpora
tion, as the Boston Herald says, but
rather an unwilingness' to have the world
and the shareholders of the company real
ize that its management had not been
profitable one. The banks which are now
suffering losses by reason of their over
confidence in the bare representations of
a single individual will be likely to appre-
ciate the need for a further understand
ing of the actual position of an applicant
for loans than the merely popular feputa-
ton of the applicant in the business world.
They are justified. too, by just such ex
periences as this to require wotlld-be bor-
their general standing, to furnish some
thing more tangible upon which to base
an accommodation. If the concern which
applies for a loan is in proper shape, it
has no reason to withhold a statement of
its condition from the bank; and if it's af-
fairs are not in such shape. the procuring
OF money on the strength of a reputation
which is not justified by the facts, is an
act bordering upon fraud. The banks are
bound to take measures against the prac-
tice of easily yielding up their money and
credit to business men Unfortunately
who happen to be in good repute, for the
wind of popular rumor is not bankable
asset and never will be. 1t is less so to-
day, when new houses are springing up
continuously. Competition has become SO
keen as to undermine and destroy the
business of establishments which have for
years figured in the first rank of success
full enterprises The necessity for closer
communion between banks and borrowers
ought not to need much urgence in the
face of facts patent to all men.
y + y
The official Irish banking statistics late
ly issued show that the deposits and cash
balances in the joint stock banks in De-
cember, 1896, stood at G39. 23S, 900. exclusive
of Ell, $50, 900 government and other public
balances In the Bank of Ireland, being an
increase of f230. 900 or 6 per cent, following
an increase of 81, ,401 900 or 81 per cent, at
close Of 1895. as compared with the amount
for December, 1884, and showing an ad-
vance of go 467, 900, or 31.S per cent on the
amount for December, 1887, since which
period, comparing December with Decem-
ber, there has been continuous annual
increase. The total was the highest
amount yet reached The accumulation Of
small savings in postoffice and trustee
banks in Ireland shows also a very large
fncr6a 10 tnt fol inf
in the savings banks of Ireland being
f8.S19, 900 in December, 1896, as compared
with 97.67S,000 for the corresponding pc
riod of the year 1895, and G6959, 900 in 1894
being an increase of E641 900 for the year,
following the large increase of e719,0O0 in
the preceding year, and 974o,000 in 1894.
+ y y
Americans who go to Mexico should
either take with them sufficient currency
to last them during their stay or they
should have funds in the shape of New
York exchange. 1t is a difficult and often
embarrassing operations to secure money
from an interior United States bank. New
York drafts are readily cashed, but nobody
in Mexico, not even the banks, wants any,
thing to do with a check or draft on
some unknown interior bank.
IT is difficult to lay down any but general
rules relating to the grounds upon which
conveyances of real estate may be set
aside. Each particular case to large
extent, must stand by itself. American In
vestments gives the following points, A
deed may be set aside and annulled:
Where a party has been induced to con-
vey by fraud and deception
When false statements have been made
in ignorance as to their truth or falsity;
Where the existence of an encumbrance
on property proposed to be taken in ex-
change has been concealed;
Where the purchaser has been assured
of good marketable title and such an
one could not be given:
Where facts and information are with
held from distant purchaser which he is
powerless to avoid
Where circumstances of extreme neces-
sity tend to deprive a party from a free
agency;
Where a principal secures an advantage
by a fraud Of his agent.
State Insurance Commissioner Clunie is
signalizing his accession to Office by call
Ing .the attention of life and accident COM
panies to their failure to comply with the
State laws in several important particu-
lars The assessment organizations he
he has written two letters. In the first he
holds that applications made for life,
health, accident, annuity or endowment
isurnace on the assessment plan and all
policies issued for such, insurance must