Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-01-04

heq the entire confidence of the ofcors of The
Bank, might have committed some srrorsin IN, nc
count; and IL not, that he would be the more allie r.
'nouec dreen TO secure the amount would be bette,
not 10 mention the subject to the Cashier until Mai
iory's return;-thst when he returned aud the over
drait was admitted on the 2d Of October 49, he in.
formed those who enqured, that Green had mad,
good the deficit; and that this statement was mpl..
city eonided In; aud therefore no further exnm,na
ton was made into the subject. IL was stated by
MR.. Cowing that about this period or very soon al
"'"eIus, nc informed the late Cashier of Green,
oserdrait and subsequent repaymen,-a fact. q
which the CASHIER says he has no recollection. bu,
auos, mat II he were so informed he made no uo al.
ry' because he conhded in the allegation that The
amount OF the defalcsuon had already been paid
| As the Executive Commissioners have a xnressed
the opinion that the fact was So your Commi,tee
oeg leave to state the which have condu c,cd
them to different conclusion; and 10 the cor fden N,
oehef that, II the Cashier had then examined Aler.
rlI = Green's account, he would readily have Disco
yeiea Their Indebtedness. lappears that on the 9Th
July 1888, when the first ledger of that wear was
closed, Merrill & Green were overchecked abou,
so,ooo, and that Mallory instead of bringing for
"stu that balance against them into the second
ieuser, commencing that day, falsely brought for
ward balance of 81, IS IS in their favor but vet
win this apparent amount at their credit they were
oreIcheeked on the eSlh Sept, 49, for about the sum
oil s2lOOO. From hat time till the end OF the year
no o'her checks of theirs were paddle none were
charged on their account. On the I'd of October and
occ 'sonally till the expiration of the year. various
sums were placed TO their credit, for the most part
Tor checks in the Farmers Bank; and yet, on the
9IsI december the apparent balance against them,
even with the fraudulent transe fer To their credit in
July was S793 09. II the account had Teen EXAM
lned' al any Time during those three months, The fact
OF overwhelming would have been discovered on tho
race oi u; and proper investigation would have
eashy detected the balance iraudulon,y brought
forward oy MaltIfy. a comparison OF their account
wIlh the entries in the scralcher (Which is
OF day book) would have shewu the further fact,
that nearly oil their large deposiies were in check, on
the aTme's Bank. lnstead OF prompt examina-
uon' however, the mere assertion Of Mallory, who
hau enher care!essy or intentionally permitted over
uraitsto the admitted amount OF more than $50 900
was taken as all'sufcient evidence OF the payment
Of that large sum.
Is bare justice 10 the President to say that there
does not appear TO be the least reason TO induce n
belief, that he ever had any know ledge or suspicion
even, that tins over checking had been allowed
Alter this, the embezzl. ment progressed in the
manner stated by the Executive Commissioners
The 9Th bylaw OF the Stockholders made in
i9oi, requires, that Committee Of the Board of
Directors, shall at least once month, visit the
vaults, IN which the cash and other effects are de-
pos'ted, and make an inventory of the same, 10 be
compared with the books, in order TO ascertain
whet"er they perfectly agree herewith. The Act
prescribing general regulations, sc. for B,nks re-
quires such examinations to be made once in three
months. The former seems 10 have been Sc FAR dis
regarded that for long period, such examinations
nave oeen made only once year, sometimes not
SO often; and the latter from the time oil its adop-
ton o, the new charter IN May 49, to that Of Dab.
neys fight IN April 40, appears never TO have been
acted on. But IN truth, the examinations which
were made, rs Is manifested by that Of January
80, the last one which preceded u c discovery III
ms large defalcaIlon, must have been exceedingly
delusive. e'
The Cashier did not inspect the tellcr's accounts.
or settlements or examine his cash, because IL was
not customary, and to have done so would have inn
led nj fka
II they were, no balance sheets were made out or
exhibited because It was not deemed necessary
When therefore the Committee of Directors cyan.
med the Iellers vault Green's checks ifthey were
exnioited at ALL told as well, and were counted as
easily as any other money there: And hence at the
examination OF Jan. '39, although two accounts of
Merrill ond Green, and an agent of the latter were
overdrawn for more than s35, 900, no suspicion OF
the Tact was ELECTED! IL were a waste of words 10
attempt 10 prove that such results in large bank
ing institution, must proceed from extreme nesli-
gence his brings us To the inquiry who is charee
aoe, IN either the greater lesser degree with that
negligencel
The 18th regulation ordained by the Directors in
1913, requires the Cashier, among ether things 60
take charge Of all the specie in the Bank so much
excepted as he may judge necessary TO be lett for
ordinary business in the hands OF the teller n"o
register OF all bank so issued;n $50 inspect
from Tune 10 Tune such individuals accounts as he
may thlnk proper; TO inspect The te!eTs settlements
issue TO hun from lime time bank noes for circu
laon, and deliver 10 hnf specie necessary for ordina
~ daily transactions, 10 have the general super
attendance OF tie officers clerks and servants of the
bank; and with the consent of the President TO he
such more minute regulations as may be necessary
tor conducting the business of the bank: TO prenoTe
an inventory OF all the stock, debts and funds Of lie
bank, IN as detailed and minute manner as possi
bic, as they may stand on the LIST January in every
year, which shall be kept in n book provided for
that purpose" Farther and plenary nowers Ivere
conferred on the Cashier at his own instance in Feb
39-See doc. no. I, p. IL.
What the late Cashier did, and what he emitted
70 do,under these acquisitions and powers and his
reasons for the one the other, will appear bv his
testimony before referred to.
In respect 10 the President, besides the duties de-
volvins on him as ono Of the Directors more espe-
cllliy as the head Of the institution high salaried
officer, and almost a permanent member of the
board, 1t will be seen, by the 18Th of the before
mentioned regulations, that is made "the duty Of
the President TO supc-ntend the conduct of all per-
sons employed in the Lank;n and by the I5th regu-
aion, that ali the officers of the bank are directed
ito do and perform all such duties and services as
may, from Time 10 time, be required Of them re-
speetlvely, by the President and CASHIER" Under
these provisions well ON tie character of his
Office, It became the duty of the President to exer-
cise general superintendent and control over the
conduct OF oil the officers OF the bank, from tho
CASHIER down. The order Of the board of the 5lh
February, 80, Showed very conclusvely the neees-
sity oil increased diligence that respect II stated
that the business Of the bank in arrear and mn
thorized the President and Cashier TO emnlov two
clerks temporarily, at SlI00 per annum, and II rs.
CURED that oil its accounts be balanced uuarterIv.
mas been thought that this order, enionins ear
nesty those and other duties on the Cashier might
h'Ve been considered by the President as relieving
MIN, IN some degree, from his general duties in that
respect. But II cannot be regarded in this ght IL
contains nothing TO discharge him from the imncra
tive obligation before mentioned TO superintend the
conduct OF all the officers OF the bank. Nor does n
IN fact, impose new duties or confer new powers to
any material extent, on the Cashier. The matters
then required TO be dong ought 70 have been done
IN effect, long before; and this new and emphatS
order and injunction on the subject ought TO have
prompted the President to increased vigilance 10
experimenting its execution, afi TsG;;:ag i,s full
plinent, by the Cashier and Clerks But instead
9 TINS, u seems 10 have been regarded bv both tbe
PRESIDENT and Cashier, dead letter in every re-
spect, except the requirement Of two new clerks
VINO were promptly appointed, and thereafter The
affairs OF The Plnk went on as before Neither the
general nor the individual accounts ofthe baok vere
stated or settled quarterly, as required. The gene
raj accounts were settled from The date OF the
order TIL Dabney's fight. Instead Of the Cashiers
inspecting daily the cash accounts Of the bank or
examining the tellor's settlements and eomparino
the same with the cash account he who proeute ,hs
passage OF the order for TINT purpose most unac.
coiniably neglected all action under H. And the
Ire'lient seems never 10 hnyo required his atten-
ton 70 TINS obviously important duty.
III appears, by the examination Of the Direeiorq
that none Of them recOllect any instance in which
the President called their attention To the reou;,o
ment OF the bylaws and the new charter for nontb
~ and quarterly examinations Of the cash and funds
OF tne BANK, except on the occasions on which com.