Democratic Sentinel, Volume 3, Number 5, Rensselaer, Jasper County, 14 March 1879 — BAD BANKING. [ARTICLE]

BAD BANKING.

Archbishop Purcell’s Financial Troubles. The complete story of the troubles that have come upon Archbishop Purcell, of Cincinnati, through the dreadful financeiring of himself and his broker, Father Edward Purcell, as told by the New York Sun, is a pitiable one—pitiable more when one considers the victims than the prelate. The broker began to discharge his duties as financial agent of the then Bishop in 1838, the year of ordination. In 1850 the Bishop was made Archbishop, and from that time to this the savings of the many congregations in his diocese have been intrusted to the Purcells for safe keeping. The panic weakened confidence in them, but the run did not commence until the recent bank failures in Cincinnati. Then the scared depositors flocked to the Episcopal residence to get their money, only to find it gone. Several prominent persons in Cincinnati and the priests in the diocese contributed $40,000 for the relief of the Bishop, not knowing the extent ot the disaster, and supposing it would be ample aid in the emergency. It was but a drop in the bucket, for $6,000,000 had gone— an utter, helpless, irretrievable loss to the creditors—gone as completely as if he had piled it in a heap and burned it. The other day we asked the question what had become of this money. The Sun’s article answers it. The money received has been used as revenue for church purposes. It has built churches, schools, and convents, been expended in support of the poor, and been squandered in gifts. How recklessly and cruelly the trust was administered is shown by the following statement:

“ From what I can learn, the facts seem to be that the Rev. Father Purcell paid the whole cost of the Cathedral, as now appears, from the depositors’ money. To encourage depositors he paid interest, at first 4 per cent, only, but very soon thereafter 6 per cent.—a rate as high as is paid by solid and wellmanaged savings banks to their depositors. Yet he at no time invested even a tithe of the funds so obtained in any way that would return him 6 per cent. Father Purcell let out large sums of money to private individuals and business firms without adequate security, often without written acknowledgment. He loaned money at stipulated rates of interest, and then, when the borrowers pleaded poverty, would remit the interest—sometimes the principal also. He would receive deposits, give the depositors mere memoranda on bits of paper, and fail to make any entry of the sums so received upon records for his own information. When interest was claimed he would jot down the amount on the back of the old memorandum. When he made loans to churches, in many instances he did not take notes or other records. The Archbishop knew he was faithful, industrious, frugal, and honest, and believed him capable, but the Archbishop was no judge of capacity in that direction. As one who has known him for many years said of him to-day: ‘He knows the difference between the figures on a $5 and a SSOO note, but attaches no more importance to one than the other, and anything deemed by him a deserving object of charity would get the latter just as readily as the former.’ ” In its extent the disaster exceeds any of the recent collapses of insurance companies or savings banks, as there are no assets left. Suits have been brought, but nothing can be recovered unless the church property can be taken, and none of the plana, suggested for relief, such as fairs, lotteries, and national subscriptions, will commend themselves to popular favor or come within the limits of propriety. It is a gigantic disaster, with little or nothing to relieve its misery. Whatever other result may happen from it, it ought to be a solemn and lasting warning to church authrities to keep out of the banking business, especially when an utter ignorance of financiering will defeat the best and most honest of intentions.

A greenback party has been organized in Canada. It wants the Dominion Government to have legal tenders.