The times. [volume] (Richmond, Va.) 1890-1903, 1900-11-21
ANOTHER BLACK EYE FOR THE
SYSTEM

i Another good man gone wrong! Scarcely
had the noise of Alvord's gigantic lar
ceny ceased resounding in our ears when
the telegraph brings us the news that high
roller Frank NJ Brown, of the German
National Bank, of Newport, Kentucky,
has bid that institution goodbye, taking
with him more than 100000 of its money.
How can these things 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 it
is such a good one is that our fatherly
government sends it's agents all around
Inspecting eadl Sbank-prying into its ut
most 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 infallble in their
examinations how is it possible for the
cashiers to keep running away with the
savings of a confiding public?
We will tell the people why this is SO.
1t is SO because, instead CT having the
best banking system the world ever saw,
we have the very worst, and because, in
stead of the bank examiners being
guarantee that bank is sound, they are
absolutely worthless and their certificate
that a bank is il, a healthy condition is
not worth the paper it is written on. But
a short time before Alvord's 600 defal-
cation was brought to light the bank eN-
aniner certified that all was we'll in his
bank, and not four weeks back the bank
examiner certified that the German Ma
.ional Bank, of Newport, kentucky, was
all right.
H,w Is It 20 be expected that bank eX-
aminers. appointed as they are, can be
capable of rendering the service expected
of them Tl.s::' are political appointments
who get :lleIr places, not from their knowl-
edge of accounts, but becaus OF the pull
they nave upon their Senators and Repre-
ssrtutires. We doubt whether there is
a single real, bona 1lde accountant, 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 he called upon to perform that is SO
difficult is to make a proper examination
into and report upon q bank. Take one of
our leading Richmond banks, for instance.
TO report upon it properly, the examiner
must g, into the details of all Of its ac-
counts, examine original entries in every
case and inspect the vouchers to see
whether entries are supported by tl,eln.
This must be done if the bank is properly
examined. but when was there ever such
a thing dGTe: Never.
Again, to know what a banks resources
are really worth. every piece Of paper
must be examined and judgment passed
ers. How many bank examiners are cap
able of doing this? There is not one. The
whole theory and system is artificial
cralnpei, distorted and an attempt tc
force business into such channels as era-
pirical philosophers think it should run in
There is but one safeguard for a bank
and that is in the integrity, fidelity and
of its officers and managers.
The artificial safeguards of the National
Banking system are nothing but brakes
upon and enbarrassments to legitimate
business Leave the business to itself
and it will be conducted along the lines
that hold out the best hopes of success.
But artemp, to regulate it by statute law
and nothing Is accomplished but a denial
Of banking privileges to the public. Give
US back our old State banks which grew
out OF the promptings of natural law and
We s,lal! never have any more monetary
troubles in this country
=--------=
THE soUTH's NEED.