The New York herald., 1868-05-16
THE CITY BANK DEFALCATION.

The Rum0rs Oncernfng the Recovery of a
Large Sum of Money and the Completely of
Number Of the Clerks in the January De-
fnlcatiOn Correct.
In yesterdays HERALD was published the exclusive
intelligence of new and startling development in a
mysterious bank dealcaton, by which the City Bank
81 Wall street, was made loser some time ago to the
extent OF q very large amount 1t will De remem
bered that the morning of the 18th of January last
Wall street. and particularly that financial portion Of
MammOnd0m which had moneyed interests In the
welfare of the City Bank, was thrown into renzied
state of excitement by the announcement that the
second teller OF the bank James II. Leverch by
name, had suddenly taken himself to parts unknown,
after leaving O deficit In his accounts amount
lug In the aggregate to about $49o,OOo. There
were at the time the defacation first made bare
to the light Of day many and conflicting rumors
floating about concerning the unfortunate young
teller who had at one fell blow lost friends name
and honor because, forsooth, he had done what
many others had done before him. but who had the
evil fortune not to acquire the essential part of
others speculative d0ings-,uccess. One Of the
rumors was that the second teller VAS not the only
person in the bank who had been the of using
and losing the banks funds for speculative and
other purposes. Indeed, there was another rumor
that Leverlch was as innocent OF the charges pre-
ferref against him as q child unborn, his nature
being Of that noble compound which made him proof
against "peaching' on his confreres and impelled
him, for sweet cOns.stency's sake, to become q
martyr to fixed principles.
These rumors, like all rumors, seemed at the time
OF their first circulation to be devoid OF all fOunda-
on in fact and were consequently treated with the
utmost dersion on The part OF the public, and par
tcularly by large number Of the clerks in the bank,
VINO gave everybody to understand that poor lie, e.
rich was very black sheep indeed, which all the
friendly shearng in the world couldn't nave rem
dered light Of guilt, and that all tle other clerks
were bless you, ''as pure as the beautiful snOw.n
The month in which the defalcation occurred was
by its sudden publicity died out. Time passed away
as q tale that Is told, yet the rumOrs died
not, but sIumbered and gained new strength
the bank officials Indeed these gentlemen, taking
everything into consideration, few weeks ago
thought It proper their part as guardians OF the
interests Of the bank and as an act OF Justice to those
persons to whom l.umOr poned fling Of condenIn-
alton, to institute thorough investigation into the
accounts Of Oil the clerks In the institution. The in
vestigatiOn was made and resulted in the revelation
that all the rnmors concerning the white sheep hal
not been without solid foundation 1t naturally fol-
lowed that the consequences OF the official inquiry
very disastrous to several clerks Of the bank,
whose who accounts showed plainly that there
ton" las one of the officials terms IT, among
them by which the surface Of their ledger pages
figures Indicated the utmost correctness, whereas
they were only ike ''Joody apples rotten at the
core" SO thorough and complete this com
bnation" that IL lequred the utmost ingenuity and
painstkng labor ON the part OF the Investigators to
probe the frauds to the bottom; but they succeeded
however, In their efforts and were finally enabled to
pr sent the directors with the names OF the guilty
parties and the amounts which had been lost TO the
bank. Tnen, as litting climax 10 the investigation.
two three OF the guilty clerks fndins thai there
was no avenue oil escape from the pit they had dug
for themselves, confessed their completely in the de
falcatiOn.
so as the combination" had been unveiled,
and the fact made evident that James Leverich mad
not been the only guilty party, the directors took
strenuous measures TO see to 1t that the bank should
not be made total loser by the delalcatiOn. To
certain extent their efforts In this particular
successful and, one OF the officials told re.
porter, "a large amount Of the money has been
recovered" 1t Is this amount about 500, QUO,
not more but the bank officials have not as yet given
the precise lgures. II Is supposed that the moneys
recovered were obtained from the bondsmen OF the
dishonest clerks, who nave oil been discharged and
replaced by reliable men. The bank ~ ascOise-
quence IL In more nourlshing condition tiah ever
One of the peculiar features OF tins whole denOu-
ment is that Notwithstanding the fact tina, tlc in
estlgaton and It's results occurred some time agO
outsiders, and particularly the press, we're not
allowed the slightest hint as to the clerical rcyou
ton in the bank ald Its causes.