New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-16

| i
1t is hard to imagine how far the develop
ments lof hidden crime arc to go If the
present financial disturbance lasts much longer.
| A sudden alarm of fire by night gives near
neighbors a more definite idea of each others
nocturnal habits than years of decOrOus mt
| macy could do. The!present shrinkage in values
has already brought to light dozens of detal-
cations which have been for years draining
the life of various financial institutions, and
it is only too certain that the end OF these
revelations has not yet come. If the bed OF
great river were suddenly drained by some
cOnyulsion of nature, we could imagine what
a wealth of Shiny and mOnstrOus life would
be disclosed. Something like this in the bust
ness world has been set before the eyes OF the
public by the sudden withdrawal of ready
money from the channels of speculation.
There is no more kte-fying, no more wash
ing of one hand by the other, no more hood
winking of Peter to find means to satisfy Paul
for the moment. The rascal Secretary, or
Cashier, or clerk, finding it impossible, i'll the
barrenness of the hour, to disguise his thefts
any further, has no refuge but flight or sui
eide.
Hitherto the revelations of rObberies have
been confined to private institutions. But it
was scarcely justifable to expect that the
public service would go entirely unscathed in
the storm. 1t is notorious that the interests
of the State have usually been less jealousy
guarded than those of individuals and private
corporations. There is, it is true, an elabo-
rate system of checks and balances provided
by which the different officers of the State are
supposed to exercise q vigilant control over
each other. But we are too much accustomed
to merely political rule to feel sure that any
elected officer will, as a matter of course, pro-
tect the interests cOnfided to him as if they
were his own. Yet with all this, there will be
a painful emotion of surprise as well as dis
gust throughout the State this morning upon
learning the news of the enormous defalcation
in the State Treasury, reported in The TRIB-
UNE. 1t comes from a department where we
have been accustomed to find honesty. ability,
and vigilance; and it indicates in the person
of the chief criminal a reckless and habitual
rascality for which there can be no palliation,
and in his superiOrs we regret to say, care
lessness which will go far to cancel the honor
able record of years of conspicuous service.
The story is one of which we are all heartily
sick. The defaulting Cashier, Charles H.
Phelps, was highly respected by all who knew
him. lie came with good character from
his last place and was implicitly trusted by
Mr.. Ralnes. He was such an irreproachable gen.
tleman that he was allowed his own sweet will
with the books and accounts of the State, and
when he represented that the elaborate system
of bookkeeping, expressly devised TO prevent
stealing was cumbrOus and unnecessary, he
was allowed to disregard it, and cover up his
thefts in his own way. He gave orders in the
same sense to the general boOkkeeper, and after
having simplified the matter to the last degree,
it was easy to induce this person to take Mr.
Phelps's word for his balances, without the
production of his bank books. He stole what
he liked and charged it to the various banks
where the State had deposits. He worked
with such easy disregard of the law that he
got the money on several drafts of County
Treasurers without the Endorsement of the
Treasurer of the State. When we see with
how free and unchecked q hand this maraud
ing was carried on, and then learn that the
enlightenment AMOUNTS to only about 100000,
we can but wonder at Mr. PhelDs's moderation,
as the British satrap in India wondered at his
| own.
The Treasurer at last discovers there is
something wrong with his cash account and
begins to examine. Of course, Mr.. Phelps
runs away, but attempts to make terms. Give
him two or three months, he airily says, and
he will make the defalcation good He had
used the money in speculations-but in nothing
so vulgar as stocks. He has accomblices, but
though not too honorable to steal, he has
scrnples about mentioning their names. To
MIR. Raines's credit. it must be said that he ad