The Elk advocate. [volume] (Ridgway, Elk Co., Pa.) 186?-1868, 1867-08-22
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TFrom the New York Tribune Aug. IL
Yesterday the financial circle of this
city were much startled with rumors of
heavy defalcations by the paying tellers
of the Tradesmen's National Bank, cor
nor of Broadway and Reade street. OF
course, these rumors were, as is usual IN
such cases much exaggerated. Trust
worthy reports, however, show that the
defalcations are indeed large, amounting
in all to about $4,000. The default
ers, James Arnold and Baker, the
first and second tellers, have been en-
ployed in the bank over thirty years.
They have ever, until this week, enjoy
cd the unlimited confidence of the bank
officers. They are both married men,
and both are about fifty years of age
What could have led 20 the crime with
which they are charged is still a mys-
terry. They have both been hitherto
regarded as upright citizens, free from
the dis8ipations which have so often rue
ined men Of their class in this city, and
altogether regarded as really worthy of
the trusts reposed in them. Not sus'
picion of their lack Of integrity bad been
raised till Tuesday of this week. On
that day one Of the clerks Of the bank
found deficiency If the accounts Of the
Receiving Teller Arnold. He commu-
nicatod this to the President of the bank,
who Immediately held an interview with
Arnold. The latter % being question.
cd closely concerning these accounts,
was very much confused, and at last ad-
mitted that he did not know how much
his deficiencies were. This led to clo'
ser examination, when it was found that
the bank had been defrauded by the two
tcllegs in the above named sum Of $685.
eco. The two telars for a long time,
probably for a period Of four or FIVE
years, had been acting in collusion.-
Although the fact that a defalcation had
been committed was known on Tuesday,
il was not certainly known till yesterday
morning that collision had existed be,
tween the two tellcrs. BY any one well
vcrscl in the general management OF
banks it will be perceived that these
frauds could not have been easily cor
rcctcd except by such cOllusion, because
Of the regular balancing Of the books
each day; with such collision concealS
ment could not easily be prevented, so
long as the books Of the two balanced.
Tho General plan Of the two, in brief,
was this: When deposits we're placed
in the hands of the receiving teller, he
would make false entries in his books.
lie frequently postponed balancing his
books till the morning following the
time the deposits were made. The pay
ing teller, of course had ample time to
make his books tally with the receiving
tcllcr's. In banking, as in all other bu-
sincss, Of course trust must be rcposod
lcmcwherc. 1t is simply impossible for
the General officers of bank to know, at
the time, of every deposit made. The
tcllers in this case, of course, were trus
ted. Had one been honest, the crime
of the other could not have escaped
spccdy detection. The Board Of Diroc
tors Of the bank will hold a meeting on
Monday with reference 10 these dclalca'
tions. The dclaulters, for obvious reas'
ons, have not, as yet, been arrested
Tie President of the bank publishes the
following card
TpAEEsMEN's NATIoYAL BANX, I
New York, August IS, 1867.
Exaggerated rumOrs in reference to de
folcotion in this bank being rife, to relieve
the apprehension of the stockholders auC
public | deem it my duty to state that, ow,
inr toihe dishonesty and collusion of the
iwo tellers (who have enjoyed the conf
dcnce of the officers and Directors for a pc
riod of thirty years), they have been ena,
bled to defraud the bank to an amount near
iy equal to the sum of $95 1000. This has
icen effected in manner that no ordinary
foresight of the officers could have preven'
led. and il is a source of sincere regret thai
raeir confidence should have been so abused
The surplus of the bank, upwards Of $3.50.
600, will be effected to the extent OF SO, ,OUI