The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-08-25

the customs demand promised to accumulate
gold rapidly in the Treasury, always holding
about $35, 0O0, 900, and It was believed this de-
mand would 80 continue through the month
of August as to advance the price Of gold in
the open market, from the comparative scare
ity of supplies outside the large sum already
monopolized by this speculation. 1t was then
that the Secretary Of the Treasury determined
to convert portion of his surplus into cur.
rency at market rates, and it was then, also,
that the spectators are supposed to have re-
solved, at any cost, to take all the gold the
government would sell, and advance the price
afterward. These facts have served to render
the house unpopular among the supporters of
the government, and have done much toward
modifying the sympathy felt for them on the
street.
Mr.. Morris Ketchum, an elderly gentleman,
has been out of town for some time past, and
during his absence the management of affairs
devolved upon Edward. The young man was
disposed to 60 it alone Outside of the parental
house, and employed brokerage house,
Messrs. Charles Graham & Co.-one Of the
best known and most highly respected firms
in the businese-to do his work. Through
the medium of these people he has done an
enormous business; millions upon millions
were as nothing to him, and at first he was
very successful.
For the convenience of themselves. certain
brokers or dealers resolved TO consider the
Bank Of New York AZ the bank of actual de-
p0eit OF gold, and an arrangement was made
with the bank whereby it agreed for the sum
of 81 900 from each dealer, to receive, count,
guard and pay ont the gold, on paper known
GOLD CHECKS,
Which are in all essentials like any other, only
that they are numbered, and need, before they
1 The s;onofTro If thu 1rauor p 1859
2. The signature Of the registrar.
8. The signature of the teller. M,
4. The signature of the payer. 49,.
Upon the payment of $1,000, any one has
the right to deposit and check on gold, receiv-
ing from the bank . book filled with 5000
checks each one Of which has it's peculiar
number. It 10 necessary that these facts be
Sss0 that the reader may understand clearly
HISTORY OF THE FORCED CHECKS.
Mr.. Edward Ketchum was in the habit of
getting ordinary checks from Aessrs. Graham
& Co, for purposes Of exchange, accommoda-
ton, or whatever, and On one occasion he OBJ
tanned check for d, 600. He then made ap-
plication to Mr.. Liverich, the President Of the
Bank of New York, for the opening of q gold
account in the name OF Charles Graham, re-
went off Continuing. his daily operations,
and needing money for margin with which to
carry gold, he has from time to time deposited
with Charles Graham & Co, gold checks,
drawn, apparently, by well-known houses ON
the street, which checks were to be held a.
security, not presented at bank. and of course,
not detected as fraudulent These forgeries
were employed. as far a. we are advised, only
~ margins to money loans made upon genu-
inc gold checks. Thus, on million of dollars
of gold represented by genuine checks, and on
$3.50, 600 represented by forged checks, say
about 81, 450, 600 in currency would be Dor
rOwed, being the market cost of the genuine
million Of dollars. And, in like proportion
with other loans, the forgeries representing
merely the margins between the amount
which should have been advanced on the gen.
uine checks and the market cost of gold. The
stipulation with the money lenders was in all
cases that none of the checks should be put in
circulation or in any way used, except insde.
fault or the repayment OF the loan after notice.
THE BuNGLING MANNER
in which the forgeries were done is most sim
gular and suggestive. As shown above, four
signatures are needed to check before it is of
the slightest value. The book given to Ketch-
um by the Bank of New York, contained five
hundred blank checks, ranging from No. S.
501 to No. $1,000, inclusive, so that the pos
with this book alone. The signatures then to
these checks, one would suppose, would need
to be either genuine, or SO nearly like the gen.
uine, as to pass close scrutiny. They were
neither.
The names were not spelled correctly, nor
was there the least attempt tocounterfeit the
handwriting of the parties on whom the fraud
was committed. How careful business men
could permit millions of dollars to pass in and
out of their hands, on pieces OF paper which
were not only not genuine. but didn't even
look like genuine checks, passes our compre-
hension. 5s etis So
& The name of Mr.. Rucker, one of the most
careful exact and precise of tellers, was writ
ten K. Bunner.; the name of BrOcklemon I'm.
ger q Co., was written Bokelman, Ungar s.
Co., and SO ON through the entire list. This
may be susceptible Of explanation, but to peo-
pie who don't handle gold checks every day,
IL seems, 70 say the least, strange that such
enormous stupidities, such absolute blunders.
cou1d so successfully be palmed upon shrewd,
observing. money grasping men, as are the
brokers of Wall and kindred streets. Banks,
successful success. A forgery in result, but
not in appearance, has mulched the
FOURTH NATIONAL BANK
20 the tune of about ESQ, 900. We learn that
this bank actually accepted as valid c0llaterals,
checks representing the amount Of S250.O0e
-checks not worth rush. What kind OF
scrutiny DO these bank officials suo]ed paper
to-?
WHAT CONSTITUTES GOLD CHEcga
We CLIP the following accounted COLO cheeEs
from the Herald:
Gold checks, - explained by those who are
deeply versed in the arts and sciences apper-
tanning TO the transaction Of business pp0n
Wall street. are simply certified checks Of
the Bank of New York. supposed TO stand IN
the place of the precious metal stored BY the
parties Obtaining the certificates IN the capa-
cious vaults of that establishment-that is.
to be moro explicit party having five thou
saud dollars in gold or larger or a smaller
sum. would take the same to the Bank II
New York, deposit it there and receive for
the same = cerfain form of certificate of AZ.
poait. Specifying the date and there placed Ia
his credit ne Enforcement Of the o6icers
of the New York Bank or clearing bone f,r
pol1. made the check in ef5ect pod.
and a. such the document 1900
from bang to bank, and from indiyidual
to Individual, % gold De fado. This was
deemed necessary, some time siuce, to prevent
| los By swindlerA who carried Lad e their