Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1897-02-05
BUSINESS HALTS
1T IS NOT BECAUSE OF BANK
FAILURES.

FAILURES
Distrust Il Bred in Other Quarters,
Notably the lingo Corner of the Sem
ate-kansas Makes a Move Against
Wildcat Corporations.
Why Business Revival Is Retarded.
Illinois, followed as 1t was by other
suspensions, until twenty-eight banks
Ind closed their doors, has caused con
siderable comment among those who
supported Bryan in the last election.
They point to these failures and tr!-
umphantly ask when the business re-
vival, promised during the election, is
to begin. As n matter of fact, these
successive failures, numerous though
they may be, have nothing to do with
the general revival of business. They
We're due to purely local and individ-
ual causes, and indicate nothing regard
ing the general trend Of trade.
The National Bank of Illinois was
looked upon as ono of the solid inan-
az VI III COuullSs ~ SSA-
cral was this confidence that the de-
posts amounted to nearly thirteen mil
lions of dollars. The failure resulted
wholly from mismanagement. The af-
fairs of the bank We're directed by the
president, and excessive loans were
made to shaky concerns in which rela-
tives of the president We're Interested.
A sum equal to half the capital Of the
bank was loaned to a company in
which a son-in-law of the president
was a partner, and it is reported that
another half-million dollars was loaned
to another concern in which another
son-in-law was Interested. 1t is report
ed that besides these loans, which can
not be realized upon, there are one mil
lion dollars in bad debts. though wheth-
er any relatives of the accommodating
president We're associated with the diff
ferent concerns does not appear. The
directors, instead of attending to their
duties Of supervision, left everything to
the president to manage, and the long
exercise of absolute power destroyed
the n of responsibility. The fail
ure of the national bank caused the sus-
pension of others, and all of them can
be referred to the reckless mismanage-
ment of one man.
Such failures must occur sc long as it
is impossible to secur more effective
supervision of the affairs of the nation
al banks. The statements presented b.;
the boards of directors must be accept
cd 0S onp.Y,anf on6 onxy irpor,,1o r3f1nc
that do not appear in these statements
cannot be discovered by the Govern
ment officials. An examination of the
affairs of the thousands of national
banks that shall be more than superb
cial would require u staff of officials
and the performance of a mas Of work
that it would be impossible to secure.
The only effective remedy seems to lie
in increasing the responsibility of the
directors and forcing them to become
more than mere figureheads.
The suspensions of these banks do not
account in any way for the postpone
ment in the revival of industry, nor do
they indicate that another era of ex-
IRENE depression is approaching. The
cause is to be sought in another direc-
ton. The demagogic utterances OF
those belligercnt members of the Uni
ted States Senate. who, if they are to
be taken seriously, desire to plunge this
country into an unnecessary war with
Spain, have been the most potent cause
Capital is always timid, and uncertain
ty causes investors and manufacturers
to hesitate. Under modern conditions,
a war is an affair involving the expen-
diture of millions Of dollars. Even
Spain, bankrupt though it may be, and
despised though it is by these Falstaf-
fan statesmen, could continue HOSTILE
ties for a period of more than a year.
During that time the foreign commerce
of this country would be practically
destroyed. Large sums of money would
have to be expended for ornaments
and munitions of var Vast amounts
of property would certainly be destroy
ed. Whatever the outcome, this coun-
try would pay far more than the value
of any results that might be secured.
Business men realize these facts, and
they are unwilling to embark in any ex-
tensive enterprise or to extend their
present undertakings until they know
that the bellicose statesmen of the Sen
ate are to be suppressed.-San Fran
cisco Argonaut.
Mckinley Over Bryan.
The plurality for Mckinley over
Bryan's total on his two tickets is 61S,-
742. In comparing the last election
with previous ones. however, the fact
should not be overlooked that women
..aAaar~. n.a. L. -.