Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1840-06-25
BANK OF VIRGINIA.

Ct" "PPo'h'eu ny the Uovernor to investigate
the condition and management of the Bank Of
Virginia.
The deficit in the cash of the first teller. n
mounts to the sum of $544,II647. 1t was
preceded by overdrafts, early in the year Is3S
on the account of Merrill and Green. which
amounted from the 22nd to the 26th Sept. to
the sum OF $3S, lil OF. These overdrafts had
been partially concealed by false balance
brought forward to the credit of the account.
They are stated to have been discovered at
the date last mentioned, during the temporary
absence OF the book-keeper having charue of
that account. Soon after this discovery. thew
were made good by checks on other banks de-
posted to the credit of the account; which
checks duly came round TO the first teller. and
were suppressed by him. These checks were
not found by us. Onthe 10Th January, 1889.
the cash was counted by a Committee of Di-
rectors. on that day it appears that Green's
account was overdrawn $2i 800 7S, and ano-
Their account of person in his employment
was overdrawn 81 Ill 05. These accounts
were both under charge of the same book
keeper who had previously kept the account
oil Merrill q Green. He was soon after trans
ferred by the Directory to another service in
the Bank,-the Board having no knowledge,
| as we are satisfied, of his previous misconduct
In the keeping of these accounts or that of
| Merrill q Green-but before he left these ac-
counts the overdrafts on them were reduced to
| small amount. In the course this reduce
ton many checks on other Banks were enter
ed to the credit of these accounts, came round
duly to the first teller and were suppressed by
hlm These checks Were found by u.s. From
mat time, as appears by the checks found i'm
the lrst teller's till and vault, the process of
embeZzlement was continued without pause,
except for very brief intervals, down to the
3Oth of January, 1910. The last check so
found bears date February 20, 1910. Nearly
the whole deficit is represented by checks of
Green and others variously connected with
him, which came into the hands of the first
teller and were suppressed and left by him.
A portion OF the deficit is represented by good
notes amounting to 1850 10, which were
found assigned by the first teller to the bank
and tor which headmits that sum of money
short OF their amount was taken by him on the
eve OF his flight. The checks suppressed by
the first teller are drawn on the Bank of Vir-
glnla and the other Banks in Richmond, and
came into his hands in some instances direct
ly, either In his daily settlements or in his ex-
changes with the other banks. 1t is not in
our judgment, necessary or proper to enter in
10 further details upon this subject. Being
clothed with no judicial powers, having had
no authority to summon witnesses or require
the attendance of parties, our statement would
be liable to great errors, and might do much
| injustice. Nor do we deem it necessary to de-
scribe more mlnutely the process by which
this embezzlement has been accomplished.
1t has certainly found greatfacilites in the LONG
established practice of receiving at one Bank
checks upon another, passing them immedi-
ately to the credit of the depositor without en-
qulrlngswhether they are good, and deferring
until the next day the settlement of them
| How lar this practice will admit of change,
without inconvenience, is for the considera-
ton of others. AS at present regulated, it is
liable and has led to great abuses.
In answer to the enquiry which we were
directed to make, whether any ofthe bve-laws
of the bank, or of the general laws regulating
banks, have been violated or neglected, we
have to report, that we have not discovered
any such violation Or neglect deserving notice,
except In the following particulars, which
have reference to the 18th bye-law adopted in
lS01-the 18th and 18th regulations for the
internal government of the bank, adopted i'm
19O5-and certain resolutions of the Board of
the 5th February, lS39-copies of which are
herewith returned.
The 18th bye-law requires that Committee
OF the Board, consisting of at least members
elected monthly by ballot, shall visit the
vaults In which the cash and other effects are
deposited at least once In cvoy month, md
make an inventory of the same, to be compar-
ed with the books in order to ascertain wheth-
or they perfectly agree Herewith.
This bye-Iaw appears never to have been
strictly regarded. Down to the year 1916,
committees were appointed under it varying
In number from to 6, and general ly 3 each
year. In 1877 and 1918 there was no COM
mittee. From that time to 1880 committees
were appointed varying from to 3 each year.
Since that time committee has been annual
iy appointed-and the last examination ofthe
vaults, preceding the flight Of the first teller,
was made on the 10Th of January, 1889. In
practice, for many years past, the examination
of the vaults seems to have been always near
ly contemporaneous with the destruction of
the notes selected as unfit for circulation. and
therefore cancelled. There was an obvious
convenience in this arrangement-and the
two processes requiring no little time and la
J Dor, each was postponed until beth could be
performed.
In respect to the 18th and 18th resolutions
of February 5tb, 1899, we have ascertainsd no
facts worthy in our opinion to be reported, ex-
cept such as relate to the amount of money
placed permitted from time to time to re-
main in the hands of the first teller. Union
this subject our enquiries have not been car
} ried back beyond the year 1895, the reports of
: the vault committees prior to thatyear not be-
ing entered on the minutes. Bv the reports