Deming graphic. (Deming, N.M.) 1903-1948, 1916-10-13

HE 1WU 0I4to u13k q -
Crucoo (ollod December 3, 1914.
wi(h croah ut ~ throuGh the state.
The hank had bon1 looted By he prce'
f1eut Z. u H. smith, md bic crea'
turss. Of somst1iug u excess Of eltS'
rs failure I'm . tran .of misery
and indfonnfton "a the Messila valley
and Il Ill but broke" the New Mexico
olate College Of Agriculture end Me
chanic Ans. funds Of which were de-
poel1od there.
Governor W. c. McDonald and bic
npDolntoe, Howell Ernest, state travel.
ing auditor end hank examiner. had
known Or snon(hs (nat the hank was
knoolvent. Thoy bad known that r.
= Il. 0m11h. hls family and friends
were aoDeoorlaslng tie banks money
and gvinG worthless notes - ~
curity.
The covernor ana his banning de.
partmen( sat by permitting he dear
~ got savings OF STRUGGLING house
holders. farmers. widows snd child
rem . b. conflscnted moneA after
lnonih until there was nothing left 10
srab end the grim travesty on bank
Ing came 10 IN end.
Governor Mcdonald did not 30
much q lit finger to save the near
" coo Innocent deposftors Of the First
SKATE Bank from exploitation and ruin
Although he knew nearly year be-
fore the crash that the hank was
buoted. the governor did not take a
sinsle step 70 project the funds Of the
01ote Agricultural College, Of which
public Institution he. by virtue Of BE-
inG chief executive. was ex.ofiicio 3
regent and the head.
prum Governor Mcdonald and bis
subordinate. the state hank examiner.
10 whom they had the right 10 look
for protection against hank hooters,
the 600 men. women and children who
were depositors Of the First State
Bank got nothing but cruel neglect
aud Indifference. Many Of them we're
poor ranchers and wage-earners.
Ninety-fOur OF them were women. Any
number were wiped out" by the. bank
failure; all the money they had n the
world ives ooaa
Nor did Governor Mcdonald give
any more consideration TO the fate Of
the State College funds. That money.
belonging to the young people Of the
state Of New Mexico for their educa.
ton In agriculture and the practical
arts, went with the rest into the
clutches OF the Smith family. The
governor did not interfere, nor did his
sppointsss. the bank examiner.
Nothing Was done by Governor Nc.
Donald except that. perhaps In CRATE
ful remembrance OF the First State
Banks contribution to his party's cani-
paign fund In 1911. he permitted r.
R. II. smith to continue his ruthless
hank wreckIng. The First State
Bank Of las Cruces financed the
Democratic Pro-McDonald campaign
In Dona Ana county In 1911. later pay
Ing itself back--Wlth Interest from the
atats College sunde.
In October. 1913. the capital Of the
First State Bank was impaired to the
extent of IS per cent The institu
tiou was virtually inrolvent. ON top
OF that, It's president had deceived the
state banking department and had
boon indicted on an endorsement
charge. Bank Examiner Ernest knew
this. Governor Mcdonald knew Il. too
Ernest said he kept the governor ful.
" Informed about the bank. II Is so
stated clearly In the sworn public
record.
BY January. 1914. the impairment Of
the bank's capital, had mounted to $50
per cent Bank Examiner Ernest
stated that bank 50 impaired was In
solvent.
Governor Mcdonald could not help
knowing the condition OF the. bank
them nearly year before the final
smash because he and Ernest went
to Las Cruces In January. 1914. and
investigated. The hank was drenched
with woFthless notes. The bank ex-
aminer said 20 af the time. Yet
neither he nor the governor moved TO
close the institution After the eov.
ernor had meandered down to Las
Cruces that time and learned all over
again that the First State Bank Was
insolvent. he went back TO Santa "
and di1 nothing. Touched by this In
dlcnfI0n that the state authorities
would not interfere with them. T. r. |
H. Smith and his gangsters In ques- |
tIouoblo finance Gobblod more and |
mogo q Tie banks assets-then the
lnovlooG1e collapse.
An this b matter Of public record. |
B q ~ ont II detail IN the report Of |
~ 1c1nt legislative committee AZ |
no1neo1 - investigate the Las Cruces |
knnE allure and The affalrs Of the |
r<o Co1Ioxo This ruDIlc record |