Business; Capitalists and financiers -- United States; Speculation; Wall Street (New York, N.Y.)
The capital stock of the bank was $100,000, and it had $4,000,000 of
deposits, all of which was appropriated to speculative use by this smart
young man, who decamped to Canada in company with a Roman Catholic
priest.
Eno happened to have a rich father, who had made his money by thrift and
economy during a long and prosperous life. To his credit, it must be
said, that he came promptly to the rescue of this wayward and erring
son, and paid the bank, of which he was director, three and one-half
millions of dollars, on condition that the other half million should be
contributed by the other directors, all of whom were very rich men. The
directors willingly accepted the proposition, and thus the entire
deficiency was made good by this generous arrangement, so that none of
the depositors suffered the loss of a dollar.
The methods which Mr. John C. Eno, the President, resorted to for the
purpose of capturing the institution root and branch, were ingenious and
unique in their character, inasmuch as they had a tendency to inspire
the fullest confidence in his vigilance and honesty regarding the
affairs of the bank, instead of exciting any suspicion.
He discouraged the custom of keeping the securities of the bank in its
own vaults, on the pretense that they were not sufficiently secure, and
suggested that a safe should be rented in one of the down town safe
deposit companies. This was done at his request. He argued, further,
that the funds on hand being mostly family deposits, the depositors were
not of a class that often required to be accommodated with discounts,
and that the money was not taken by the bank to be locked up and kept on
hand so as to have the name of having it, but to be used to the best
possible advantage consistent with safety, to make profitable returns
through interest. Consequently, he was allowed to use the money of the
bank freely to make loans to Wall Street brokers on interest, with
approved collaterals, and he represented to the directors that he was
carrying out this course.
Public-domain text, read in full here on John Shaqi.
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