America.  Whoever has seen a self-possessed and sagacious orator handling a tumultuous meeting as Phoebus-Appollo handles his madly plunging steeds, has seen the symbol of popular government, and understands why the sole fact of numerical force and brute power does not explain it.  He who watches the ocean rising into every bay and creek in obedience to celestial attraction, sees in outward nature the law that governs the associated life of men, and which gives the American people faith in their own government, whether they can give a reason, for their faith or not.

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NATIONAL BANK FAILURES.

BY GEORGE H. WOOD.

Occasionally the attention of the daily press of the country is called to the provisions of the National Banking Law by the announcement of the failure of some national banking association, and immediately it teems with comments, and recommendations as to amendments which should be made to render the law effective.  These recommendations and comments usually show the most lamentable ignorance, both as to the actual existing provisions of the law and its practical working, and as regards banking matters generally.  In the case of the failure of the Middletown National Bank of New York, the advice which has been given in the columns of the press seems of itself to be sufficient, if it had been given sooner, to have prevented the disaster.  The Directors have been blamed, very justly too, for they looked on while their President run them into all its difficulties, and as usual the Bank Examiners have been held responsible for the disaster.  Some have even gone so far as to suggest that a provision be added to the National Banking Laws punishing Examiners who do not detect irregularities in the banks which they examine.

The provisions of the National Bank Act as they now stand are as perfect, theoretically, as they can be drawn, to protect both the depositors and the stockholders.  The law provides for the publication of sworn reports, from time to time, of the condition of each national bank.  These reports must be sworn to by the President, or Cashier, and their correctness must be attested by the signatures of at least three Directors.  These reports are required five times a year and it is impossible to see how, if the Directors do their duty fully and honestly, any delinquency on the part of the officers of the bank can fail to be detected by them.  Under the law, the stockholders elect the Directors, at least five in number.  The officers of the bank are elected or appointed by the directors and are subject to them.  Thus far the protection the Act provides is based upon what, so far as financial matters are concerned, is one of the great controlling influences of human nature, viz:  self-interest.  The stockholders, in order to protect themselves, are expected to elect Directors who will look out for the interests of all.