Perth Amboy evening news., 1921-04-12
@6p
FALSE REPORTS.

false report once started on its way car
never be wholly recalled. Rather, 1t gains mo
mentum as it travels from mouth to mouth un'
ill the result is something utterly unanticipated
Such reports apply particularly to financial in
stitutions. There is nothing that the average
person is more panicky about than his money
particularly his savings. Upon the slightest ru'
moi exciting suspicion many will rush to with
draw their money from banks without stopping
70 INQUIRE into the truth or falsity Of what has
been heard.
Sometimes an innocent remark on the part OF
someone will start an entirely different tram OF
thought In the mind of another and this Will
cause an entirely different construction to be
pIaced on what has been heard resulting In I'M
told injury to some person or institution that Is
absolutely unwarranted.
It is because people are particularly sensitive
regarding their money on deposit that the iegis-
lature has seen At to enact rather drastic laws
regarding this matter. Persons found guilty OF
causing a run" on a bank or otherwise exciting
suspicious as to its solvency without any basis
in fact may be severely punished. The whole
purpose of the law is to curb the loose tongue.
Banks-and by banks is meant all financial in
stitutions doing a banking business-are abso-
lhteIy necessary in our present civilization. They
provide a safe place for people to keep their
kmoney and they are the means OF financing
Legitimate trade thus enabling business to be
2 carried on.
But because the bank is caring mainly for
ether peoples money the government has. en-
acted laws governing the management of all fl
nancial institutions. Certain restrictions are
placed upon them and public officials are ap-
pointed to examine them regularly to see that
the public is being properly protected.
In this connection 1t is worthy of note that
only last Thursday night. less than a week ago,
william E.. futile, Jr., the banking and insur-
snce commissioner for the state of New Jersey,
mnder whose Jurisdiction all the state hn&ncial
institutions in New Jersey come, was the guest
of honor of the Perth Amboy Trust Company
and in an address to the enicers and ernpl>yes
81 that institution he said that "the soundness
Of every bank as far as the department knew,
10 unc1iallenged."
n other words. there is not a financial insti-
tuition IN New Jersey that comes under the d.
rection of the Banking and Insurance Depart
ment Of the state but what is absolutely solvent,
Yet. q chance remark made by someone can
10 easily be misconstrued leading up to serious
consequences. 1t IL bad enough when these re-
ports come from irresponsible parties, but when
uttered by persons who ought to be intelligent
enough to know what such remarks are likely
to lead to. there is no excuse. While honest
criticism is one thing, 1t is so easy for someone
to take an altogether different meaning, espec-
lally where a financial institution is concerned
causing results that are based on an entirely Diff
ferent reason than the first criticism made.
Perth Amboy has five well-established banks
and trust companies. All of them are presided
over by men we'll known in this city. Their
statement as to their financial condition are pub
lished frequently and their is not the slightest
reason for suspecting the integrity and reliability
of any of them. All of these institutions have
had a wonderful growth during the past few
years and reflect great credit on the city.
In these days of unrest the first essential is to
play safe. Only yesterday numerous robberies
were reported here. Persons who imagine that