Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-04-02
National Banks as Bribers.
[Boston Herald

The most serious phase of the Pitts
burg graft scandal is the part which
the national banks have played in it.
According to the confessions Of the
grafters. over 100000 was received In
brides from the national and savigs
brides from the national and savings
deposits, with their heavy daily ball
ances. In the early, part OF this in
vestigation theF attention of federal
authorities was directed to the situa-
ton, and national bank examiners were
detailed to a special ~investiga ton.
What was developed by that investiga-
ton has not been made public. One
bank president has been sent to prison.
another president has been arrested on
charges of conspiracy and perjury and
It now seems likely. thru confession OF
the chief CRATER, that other bank Of
ficials may be brought to book, and be
forced to face trial and suffer the pen
atty Of the law for corrupting govern
ment What there is of the spirit Of
civic honesty in Pittsburg seems to be
aroused to such degree that it is like
ly that offenders, whether high or low,
will be held to account. The people Of
Pittsburg may be left to deal with that
phase of the situation.
know what the federal authorities.
having control of the national banking
system and responsible for its integ-
rity in Pittsburg. as well as in other
parts of the United States, have to say
or propose to do concerning a situa-
ton which reflects on the entire bank
| ing system. BY what means was this
corruption fund raised among the Of
offending national banks? If the funds
Of the banks were so used, is 1t to be
| inferred that it is possible for national
bank funds to be so easily diverted to
improper uses without exciting detec-
ton or even suspicion on the part of
the official examiners? Or II this cor
ruption fund were not raised by direct
contributions from the bank earnings,
| by what means did the individual con-
tributors recompense themselves for
their generous payments in behalf of
the institutions? There is a trail of il
legal transactions here which the fed
eral authorities are in duty bound to
follow in defense Of the honor and rep
utation of the national banking system
Comptroller Murray's recent unqual-
flied Endorsement Of the national banks
Of the country has been called in ques-
ton several times of late. There is
less faith in the system of bank exam
/ nation than there was. It is serious
| enough to know that subordinate en-
ployes of national banks may divert
funds to their private uses thruout a
period Of years without discovery. It is
even more serious to know that the
presidents and directors OF banks may
divert the banks resources. which ARE
nothing more or less than trust funds
to corrupt purposes for their individ-
ual gain. The strength of the nationa
banking system is in the confidence OF
the people which 1t enjoys. Establish
the fact that it can be controlled b5
men who own no responsibility except
to their own interests, who use thei,
position to corrupt government, whose
sense of financial integrity permits
them to bolster up their transaction.
with brides, and announces that thers
is no system Of official supervision
which will detect such criminality ant
keep such biacklegs from positions o
thrust and the confidence OF the people
is attacked. Pittsburg is cleaning it
municipal house. The comptroller O
} the currency has urgent business II
Pittsburg also. The good name OF thu
national banking system is involved fl
this mess.