The Washington herald., 1914-03-14
HISTORY BUILDERS.
The Bank Examiner and the Bag Of
Old Silyerware.
Iwritten Expressly for The Herald9
Nv mn. n. l. EUX ARDS.

lWritten Expressly for The Herald.)I
By DR. Il. J. EDWARDS.
- HE late George s. coe. who was for
many years president Of one OF the
= leading American banks and who
was often In ciyil war days In consuita-
tion with the Secretary OF the Treasury.
Salmon p. Chase. who made Mr.. Goes
once his headquarters when he visited
New York. called mT attention one after.
noon to a large truck which was backed
up in front Of the entrance TO safe
deposit institution upon which were some
fifty bars of the shape Of plg-iron bars.
but which glistened in the sunlight
you viii observe" said Mr.. Coe. that
there seems to be nobody watching that
truck and yet every one of those bars
Is practically pure silver. The weight Of
OF the bars makes watchfulness unneces-
sary. II would take two men to lift one
and then they could not carry 1t at a
more rapid pace that slow walk. II is
bullion.
''Thete was a time In the old days"
continued Mr.. coe. ''before the national
banks were organized, when the State
banks. especially OF New England and
of New York. carried all OF their re-
serves In specie. The specie consisted
usually of about 10 per cent gold and 70
FER cent silver coin.
81 can tell you OF a most amazing incl
dent that occurred In Boston in the year
when Nathaniel r. Banks was governor
OF Massachusetts,. You may remember
that Gov Banks was Speaker fof the
House of Representatives at Washington
a year or two before he became moy',rnor
of Massachusetts,. In after YEA when
he became prominent as commander Of
a nimportant division of the Union army.
he used some times TO tell his friends Of
an important division Of the Union army,
governor. which he never recalled with
out amusement.
"It seems that one OF the State banks
of Massachusetts had as an important
customer a man whose business II was
to buy and Sell precious metals and to
deal in specie. In those days a merchant
who dealt In specie was quite an i'm
portsnt person in the larger financia.
centers.
"Th--e was at that time a State bank
examiner in Massachusetts whose pom
posity, self-consciousness and self-dignity
occasioned a great deal of amusement
and. i expect. amused Gov. Banks him
self He was a man who leaned back
wards almost in his demonstration of his
personal integrity, but he was good
bank examiner One day he appeared 1t
the Office OF a state bank saying that ne
had come to make his customary exami-
nation
First OF all, produce your specie. he
said with great dignity. The specie was
brought in canvas bags which were put
upon the table in the directors room, at
the head of which this. bank examiner
sat. There was one bag considerably
larger than the others. The examiner
reserved that bag until the last, pre-
ferring to open the other bags and count
the specie in them first.
AT last he cut the strings with which
the big bag was tied and then thrust
his hand into the bag, expecting TO bring
out a handful OF specie.
Hey, whats this?' he shouted. What
does this meanT And as he said this he
withdrew from the bag a handful Of
spoons. forks and napkin-rines and other
things and spread them out upon the
table. Then he drew forth another hand
full. and so on until the top OF the table
was fairly well covered with these tninEs.
What does this mean? Did you think
that this old junk would impose upon me
and that would accept your word for
Ii that il contained 50 many dollars OF
silver. as part OF your reserve -
He sat there glaring at the officers
of the bank for some moments. not oh