7529. Bank of Minden (Minden, LA)

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DROP THE BANK INDICTMENTS (Continued from page one.) fully considered by the Grand Jury, made up of representative citizens. The testimony of many people was taken. Every angle of the matter was thoroughly investigated. And the only charge that seemed to be justified was that the directors "assented to deposits" after the bank had become insolvent. In fairness to the directors, it should be conceded that it is not an easy thing to determine the day on which an institution of this kind becomes insolvent. A man on the street says it is a mere matter of bookkeeping, and that one needs but to look on the ledger to learn how the bank stands. In our opinion, it is not easy. Values are hard to determine in abnormal times. There is no reliable standard of valuation. Besides, in the shift of circumstance, elements of character become involved which are worth more than collateral, but which cannot be listed as security. The acute situation was brought about by the fact, as one official expressed it, that the depositors drew out money faster than the bank could collect it. The trouble, then, seems to have been not so much that the bank was insolvent as the fact that so many of the bank's debtors had become insolvent after the bank had favored them. As every one knows, the only way in which a bank can function is for it to lend money. It cannot keep deposits lying idle in the vault until they are called for, and perhaps pay interest. In fact, it has been charged that one cause of the present financial stringency is the hoarding of money. The bank is expected to lend its money to responsible persons and institutions. This it is to do in the light of the best judgment available at the time. It is easy enough, after events have taken their course, to point out errors of judgment. Even the simplest of us can do that. It is quite a different matter to make wise decisions always under the most unusual conditions known to any of us. It should not be forgotten that the acute situation developed in the affairs of the Bank of Minden in probably the darkest period in the banking history of this country. Directors everywhere were struggling desperately to keep their institutions going and thereby preserve the liquidity of the accounts intrusted to them. Thousands of banks were collapsing, some of them being gigantic institutions. Under the circumstances, we fail to see where there was anything at all criminal in the effort of the local directors to keep their institution alive in the hour of unprecedented crisis. To convict these men, when not accused of acts of moral turpitude, on a charge involving a minimum sentence of five years in the penitentiary would, in our judgment, be grossly unfair. In fact, we do not believe that a jury of fair-minded men would do that; particularly in face of the fact that a representative of the State Banking Department is alleged to have said that he would not have ordered the bank closed when the directors closed it. Some talk as though they thought it possible for a bank to decline to receive deposits and still stay open. As a matter of fact, the moment a deposit is declined on the ground that the bank may not be solvent, the way is opened for a run on that bank were its doors not closed immediately. Therefore the interests of former depositors make it necessary that the bank continue to receive deposits until it is definitely decided by those in control that the institution should be closed. So far as we can see, there is no evidence presented in the report of the auditors (a copy of which is now on file in the Clerk's office) that the prolongation of the life of the bank served to the advantage of the officials and directors. The Grand Jury found no occasion to charge them with having profited by actions growing out of any fears or knowledge they may have had concerning the future of the bank. In fact, we cannot see that any particular advantage or disadvantage was experienced by the bank or its depositors as a whole by the continuance of business through the last few days. Whether one was an early depositor or a late depositor doesn't seem to us to make much difference. We are not asking that any intentionally unfair or dishonest proceeding be condoned. But we are asking that, since no official accusation of the sort has been brought against these men and since the unhappy fate of the Bank of Minden (as well as that of SO many other banks and institutions of trust at that time) was determined by a course of events over which these men had no control, these men not be made the scape-goats for the misdeeds and mistakes of erring humanity in general. house number and name of with route number, and typed or plain- den: Mrs ENVELOPS, OR IN COLORED VERY SMALL ENVELOPS. Fragile Articles Articles broken or crusheasily be securely wrapped and ed must crated or boxed. Use liberal quantities of excelsior, or like material, in, around, and between the articles and the outside container. Glassware, fragile toys, or must be packed so as to crockery prevent the escape of particles or pieces if broken in transit. Cigars: Ordinary boxes of wrapped in only will cigars paper not be accepted. Pack in man ner to prevent damage by shock or jar. Wrap in corrugated pasteboard or similar material. Cigars must be in good shipping condition. All articles easily broken or damaged must be plainly marked "FRAGILE."