The Express.
London, England, 1857-05-28 00:00:00

THE DANK DEFALCATION AT FALKIRK.

Mr. Henry Salmon, who for a pericsl of nearly 40
years leas been agent for the Conituercial Bank here, has
been charged with the embezzlement of lsrge sumo of money
bel coring is the bank. Mort of our readers know the posi-
tion Mr. Selman held in the town. He wee fl justice of the
peace, an elder of the church, until recently he held the situ-
ation of peatinamter, he Las been for the last ten years chair-
loan of the parochial beard, and was at one time proceed of
the burgh. He woo, and has been for a long time chairman
of the femme ; he woo a landed proprietor in the parish, and
took an active jort in all public affairs connected with the
town. Mr. Salmon was the metre of raising the money for
defraying the expense of putting the High-street into its
present excellent condition ; and be had his por-
trait painted by the president of the Scottish Aca-
demy, and a valuable Ancor ipergne presented to him
by the inhabitants for the exertion.. he made for street
improvements. It appears, however, that while be
occupied such an influential pooition in relation to the public,
and while ho war oaten/ably so actively engaged in the pub-
lic service, he had been pursuing a systematic course of fraud
with reference to the bank with which he was connected.
}tumour asserts that his defideatione amount to between
23,000/. and 26,000 L, and as this has not been officially con-
tradicted, there is every reason to believe that the aincomthes
not been overstated. The defalcation during the last year is
set down at 2,0001., and it is said that the embezzlement ex-
tends over a period of seventeen years. There have been a
gnat many hypothesirw advanced with the view of accounting
for the manner in which Mr. Salmon succeeded in concealing
his frauds from the bank. It is well known that the system
of inspection followed by the Scotch banks is of the most rigid
choracter, and itis difficult to conceive how he could have con-
trived to shield his delinquencies from such a scrutiny. By
the system which is said to have been pursued by Mr. balmon,
however, the money, or at all events a considerable portion
of it, did not appear in the bank books at all; 00 that no
inspection, however minutely conducted, could detect the
fraud, and it was by accident it was ultimately diroovered.
On Tuesday week while Mr. Salmon was Arent at Stirling,
attending the Licensing Court as a justice of the peace, the
tank inspector arrived at Falkirk on an inspecting tour. In
the book safe, it is raid, he discovered a book or sheet which
revealed, to Nome extent, the true position in which Mr.
Salmon stood to the bank. The inspector at once communi-
cated with the management in Edinburgh, and the conse-
quence was the immediate suspension of Mr. Salmon from
his office of agent. The whole of this tninopired while he
was at Stirling adminietering justice, and ho was
trot mode acquainted with the disarm...l6lo facts
by one of his sons, who drove from Falkirk to
lethal, intercepted his father at that station. and
conveyed him beck in a gig to the bridge of
Allan. On the Wednesday following Mr. Salmon left
• Falkirk fur Edinbmwh by the mid-day train, since when
his movements are involved in mystery. On Saturday
onorrmmnngg circular. were sent to the various polio() stations,
inting the embeezlement, descriptive of the prison
and dress of the delinquent, and requesting all °Mono 01 the
law to use every mean, for his apprehension. While we
write, he is still free, as far as is known ; but if the hank be
determined to prosecute the ease, it seems impossible that he
can ultimately serape. The event has created • painful excite-
mein in the town, and coming, salt has done, upon the heel, of
• others id a similar character in England, it tends to confirm
the belief that the foundations of our commercial morality
have been entirely shaken by the ruinous system of social
competition which has been developed amou; the commer-
cial dames We learn with regret that come of tho mer-
chants in the town will be Imes to a conoiderabla amount
by Mr. Salmon, as it appears that he was largely indebted to
many of them: —Felkiek 'Jerald.

-8E11101:4 CILtRGE.—Two soldiers of the s:h
Dragoon Guards have been apprehended and remitted to the
Proviretcr-Fiscal for examination on a charge of ripe or
criminal assault, said to have been committed at Picrabill
Barracks, Edinburgh, on Sunday evening lost, on the
person of a very respectable young woman in domeatie
service. The unfortunate victim, with o companion, Led
been arcuated by the prisoners, still induced by dam to go
with them into.the canteen of the barracka. Ono of the
women, Liking idirio, savieded in escaping from them,. bat
the other, it is said, wee dragged or decot el into the bar-
racks a lib them, and the offence then committeJ. The
young woman is., it is raid, sufficing seretely from the alerts
of the treatment the reteived.

elo en:m*oo*

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LONDON, THURSDAY, NAY 26.

TO OUR

A DOUBLE NUMBER et the EXPRESS will
M published is usual ON SATURDAYS.

Thaws are few subjeets in which the public
ate wore directly interested than in a wand con-

dition of our Banking

; and one of

the essential elements of that soundness is a general
and well-grounded confidence in their stability and
good management. Whatever the real position of
a Bank may be, any suspicion as to its means of meet-
ing its liabilities is a serious injury, not only to the
Bank itself, but to those of its customers to whoa it
lends money either by advances on security or by way
of discount; and their temporary embarraasnaent reads

upon all with whom they are connected in bovines.
If the Bank, although perhetly solvent, should not be
in a condition at once to command sufficient re-
sources immediately convertible, the evil is rendered
far mare intense, and may, in addition to the injury
we have already alluded to, compel a winding-cap,
and involve, by the mere delay incident to such
an operation, hundreds of persons, shareholders
and depositors, in ruin. The Legislature may
frame laws to punish dishonest administrators, bat
it is equally important to secure, as 6r as possible,
Joint-Stock Banks from those rumours injurious to
their credit which idle or mischievous gossips are
at all times of monetary pressure only too ready to
circulate. It is inconceivable to us why the Directors
and Shareholders of these establishments have not
long ago adopted so simple • remedy against that
danger as a better and more detailed form of belance-
sheet. Banking statements, those more especially
which figure occasionally in the London oa:etto,
are by no means calculated to impress the public
with • conviction that the available assets bear a
sound and legitimate proportion to the current
liabilities. And the more successful the Bank may
be as • trading speculation the greater the necessity
that the public should be satisfied on that point;
inasmuch as they are only too prone, if they think
at all on the subject, or if such a train of ideas be
suggested to them, to assume that fifteen or twenty
per cent dividend on the capital cannot have been
obtained without considerable risk. We will even
go further. If the Banks themselves do not volun-
tarily adopt such a form of published accounts as
shall afford the desired information, it should be
made compulsory on them to do so. It is thought
by many that such accounts would be tamed to
mischievous uses by rival establishments; but we

cannot undmatand.how, if a Bank be redly sound
and well managed, and if such a state of things
be demonstrated by the items of its Balance-Sheet,

thew facts can be made use of to its disad-
vantage. To as it appears that of all modem of
advertising that would be the most legitimate, and
the most likely to attract customers. If, en the
contrary, the weakness or ill-management of alas&
were betrayed by its accounts, every possible induce-
nest would exist to check and avert the danger
before it became unmanageable; or at the wont the
necessity of bringing its affairs to a awe bake
they had become hopelessly involved mold be fared
upon its Directors, and the lass coannaset on its in.
judicious or unlucky management would be confined
within the narrowest compass.

No one whose attenCon has been directed to the
subject can forget how seriously the Money Market
has been from time to time affected, when rowan

have been abroad shaking the public confidence in
Joint.litock Banks. Within the last few months,
even, we have felt the effects of them, and of the
singular reports and guesses to which they give
rise. In the Provinces the effect is still greater than
in London, and when such rumours are rife the
Bankers are compelled to fortify their reserves of
gold, diminishing the amount of bullion held
by the Bank of England, and the sums at its
disposal for its ordinary advances. It will be
easily understood that this process, when car-
ried on by several Banks having a considerable
ante circulation, may easily produce most serious
consequences. In the awe of London Banks, not
circulating their own notes, the evil takes another
form, compelling them to cripple general mamma
by restricting their advances and discounts. We have
more than once alluded to this subject, and we trust,
now that the Legislature is occupied with devising
additional securities against frauds by Directors and
Trustees of Joint-Stock Companies, the banking world
will not neglect so favourable an opportunity of de-
vising and adopting sane general form of balance-
sheets and statements which will tend still farther
to establish public confidence in institutions the
value of which, we think, can hardly be over-rated.

THAT " they° is sae law for the rich and another
for the poor" is so often practically illustrated in
England as to piece the fact beyond dispute. And
while undeniable as regards the community at large,
it is no lass trate ss regards particular amass. In
the army it easy to stated la tide ken that whim
them is ens law for the Guards, there is assert fie
the UM." It is now very nearly three years mines
we directed public attention to an augmentation
being made to the Guard, of twelve companies, alas
=pew to the public of above 6,0001. • year awe
than would have born required to provide the saw
number deicers and IWO in the Line. The awe.
iity tor raking a lame free to maul oat Is the East
and tar doing so in the moat expeditious inannsr, re-
aardleia of expense, over-ruled all objections to this
SUlpientatias. But peace has now been concladed
opwarde el twelve months, and there is as yet no

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