The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1912-03-27
STATE BANK LAW
SORELY EEEDEO
Failure Of MoHenry Bank Emphasizes
the Need of Legislation on
Subject.
(By C. U. Porter)

lorn crowd. with shipwrecked spirits, /
gathered in gloomy groups at an early
hour yesterday morning to cuss and
discuss the fate of the dismayed de-
positors in the Inflated, mismanaged
State Bank of McHenry, to whom its
doors were closed and Dramatically
sealed sometime during the shank end
of Friday, the 22nd, inst. The long
period of suspense terminated with
the arrival of the Daily Herald of Gulf
port which under the caption, INC
Henry Bank Again Closed" delivered
the cheering message, The State
Bank of McHenry has closed its doors
and J, L. Taylor of this city has been
appointed by Chancellor T. A. Wood |
as receiver j. l.. Taylor made bond |
| today in the sum of twenty thousand |
! dollars and left for McHenry. The |
banks liabilities are placed at about |
$12S,0O0 with assets of about $63,50O
1t is claimed the bank has been in
solvent two years and that the records
have been falsified. There is also
claimed to be owing depositors $7O.-
O0O."
Insistent persistence and persistent
insistence had failed to CLEAN so much
as the slightest intimation of the status
of the banks affairs and hope deferred
had made the hearts of depositors
sick: SO, the first intimation, as indi-
Gated above, fell with full force and eff
feet upon the disturbed minds of the
weary walters therefor.
The hardship imposed upon the pa
irons of this bank by this wholly UNI
expected disclosure of its reeking rot
tenness, is peculiarly distressing as it
is the result of betrayed confidence.
Repeated assurance had been given
by it's officials to depositors that the
bank was safe and solvent and no
risk of loss was incurred by deposi
tors using it as a depositary.
The depositors regarded the direc
in them perfect trust in their sterling
[ integrity, unquestioned honesty and
+ untarnished honor. Even now in the
a midnight melancholy of our mood, the
S rugged honesty of the board of direc-
y tors is not for an instant questioned
l. but, to some of us the fact has long
f board had UNNECESSARILY more hon
t esty of purpose than knowledge of the
o banking business. With the knowl-
II edge that the members of the board
! of directors could understand the con
dition of the banks affairs as well by
" looking at the cover of it's books as
n they could by scanning their pages
IL we relied upon the impress of theil
IL honesty upon the management of the
a banks business for our refuge.
" The folly of grieving over split mill
10 is fully recognized and the scantines'
d of comfort in complaining is appreci
ated to the full, but since an objec
lesson is furnished so early after thu
adjournment of the greatest aggrega
ton of assininity ever assembled ur
der the same area and superficial fee
of roofing we yield to the impulse t
complain of the criminal omission t
discharge a manifest duty when tn
'e January gentlemen adjourned withou
Ip- enacting a stringent law requirin
'u- frequent and rigid inspection of stat
us banks doing business in this stat,
eli (January gentlemen in lieu of "Augus
on body.D
all If in the occasional lull of Sullen
and Senate swapping and snarling, an
brief periods when the surging billoW
in the House ceased to roll, law
just one law-one specimen of sal
and sane legislation-(a law requirin
I'D rigid inspection of state banks wou1
have been SUCH had come, as a toxic
EN- 90
tlemen, to the people who desired al
80 greatly needed it, then the shades
~ Mississippi's illustrious statesme
might have been importuned not
view their assininity with a crit,
eye, but pityingly pass their stupidi
by.
With the record of six state bar
failures in Mississippi in one ye
staring our King Solomons in the fac
it was a criminal omission to faithfl
DIS ly discharge a solemn obligation,
an failing or refusing to enact law
Ver protect depositors in state banks
ian the state
as Had the banks of Summit and N
fou Henry, which are the latest induces
needed legislation indicated abo,
| been oDeratad under cucb q who