Clarke courier. [volume] (Berryville, Va.) 1869-1997, 1900-11-28
Something Wrong with Our Ma
tional Bank System.

Wine, women, and cards seem to
have been the cause of the downfall
of Frank NJ. Brown, 5ookkeeper of
the German National Bank, of New
port, Ky. 1t is announced that his
defslcstions will reach $4,000 at
least, and possibly more. The en-
bezzlements have extended over
period of years, and it has not yet
been learned when he began con
verting the funds of the bank to his
own uses. The bank has been closed
by the bank examiners.
60
AnOther good man gone wrong
Scarcely had the noise of Alvord's
gigantic lsrcency ceased resoundiug
in our ears when the telegraph brings
us the news that high-roller Frank
Nj. Brown, of Newport, Ky, has
bid that institution good bye, taking
with him more than 100000 of its
money.
How can these thugs be One
can hear it certified to upon every
street corner that we have the best
banking system the world ever saw,
and the great reason 1t is such good
one is that our fstherly government
sends its agents all around inspecting
each bank-prylug into its utmost
recesses-and these certify to trust
ing people all the banks that are
worthy of their confidence while they
expose to them all those that would
lure them to their destruction. Since
our banking system is the best the
world ever saw. and our inspectors
are infallibe in their examinations,
how is it possible for the cashiers to
keep running away with the savings
of cOntidiug public:
We will tell the people why this is
go. 1t is so because, instead of has
ing the best banking system the
world ever saw, we have the very
worst, and because, instead of the
bank examiners being guarantee
that a bank is SOUND, they are abso-
lutely worthless, and their certificate
that a bank is in a healthy condition
is not worth the paper it is written
on. But short time before Alvord' 5
/ 100000 defalcation was brought to
light the bank examiner certified
that all was well in his bank, and
not four weeks back the bank exam
iner certified that the German Ma
tional Bank, Of Newport, Kentucky,
was all right.
How is it to be expected that bank
examiners, appointed as they are, can
be capable of rendering the service
expected of them: They are politi-
cal appointments who get their
places, not from their knowledge of
accounts, but because of the "pull"
they have upon their Senator'S aud
Representatives. We doubt whether
there is a single real, bona fde ac-
countant, such as a great concern
would have in charge of its affairs,
In the whole lot.
And yet there is no task
an accountant can be called
upon to perform that is so difficult
as to make proper examination into
and report upon bank. Take one
of our leading Richmond banks, for
instance. To report upon it proper
ly, the examiner must go into details
of all of its accounts, examine origi-
nal entries in every case and inspect
the vouchers to see whether entries
are supported by them. This must
be done if the bank is properly ex-
amined, but when was there was ev-
er such a thing done? Never.
Again, to know what a banks re-
sources are really worth, every piece
of paper must be examined and
judgment passed upon the solvency
of makers and endorsers. How many
bunk examiners are capable of doing
this! There is not one. The whole
theory and system is artificial,
cramped, distorted and an attempt to
force business into such channels as
empirical philosophers think it should
run in. There is but one safeguard
for bank and that is in the integ-
rity, fidelity and intelligence of its