Crawford avalanche. (Grayling, Mich.) 1879-19??, 1897-01-28
WHY BUSINESS HALTS
sT Us NOT BECAUSE OF BANK
FAILURES.
Oistrust fs Bred in other Quarters,
Notably the lingo Corner of the SEN
ate-Kansas Makes Move Against
wildcat Corporations.

!.
wtld-cat Corporations.
why business Revival Is Retarded.
The failure OF the National Bank Of
Illinois, followed as 1t was by other
suspensions, until twenty-eight banks
had closed their doors, has caused con-
siderable comment among those who
supported Bryan In the last election.
They point TO these failures and trs-
umphantly ask when the business re-
yival, promised during the election, Is
to begin. AS a matter of fact, these
successive failures, numerous though
they may be, have nothing to do with
the general revival of business. They
were due to purely local and individ-
rual,causes, and indicate nothing regard
ing the general trend of trade.
The National Bank Of Illinois was
looked upon as one of the solid finan-
cial alinstitutions of the country. So gen
'cral was this confidence that the de-
posts. amounted to nearly thirteen mil
wholly from mismanagement. The af-
fairs of the bank were directed by the
president, and excessive loans were
made to ,shaky concerns In which rela-
tives of the president were interested.
A sum equal to. half the capital of the
bank was loaned to company In
which eson-in-law of the president
was a partner, and 1t is reported that
another half-million dollars was loaned
to another concern in which another
,sonrin-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 whetll-
,er any relatives OF the accommodating
president were 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 sense 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-
iment of one man.
Such failures must occur so long as it
rs impossible to secure more effective
supervision Of the affairs Of the nation
al banks. The statements presented by
the boards of directors must be accept
ed as correct, and any Irregularities
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 "a staff of officials
and the performance of a mass of work
that it would be impossible to secure.
The only effective remedy seems to lie
dn increasing the responsibility Of the
directors and forcing them to become
more than mere figureheads.
The suspensions f,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-
dreme depression rs approaching. The
cause is to be sought in another direc-
ton. The demagogic utterances OF
those 'belligerent members of the Uni
ted States Senate, who, If they are to
be taken seriously, desire toiulnnge 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,
n war Us an affair involving the ,eXpen-
diture of millions of dollars. Even
Spain, bankrupt though 1t may be, and
deepised though it Is by these Falstaf-
IAN statesmen, could continue hOstlli-
ties for n 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 armaments
and munitions of war. 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 Seu-
ate are to be suppressed.-San Fran
cisco Argonaut.