The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-05-27
The Deposit Of Securities in Bank
Vaults.

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Vaults.
From the N. Y. Financial ChronIcle.)
ANY bank is undoubtedly responsible
for the custody Of the securities left in its
vaults for safekeeping. Even II, as Is al.
legged, It should turn out that the owner
will find it difficult il not impossible to
establish his legal claim on the bank in
such case as this, still there a moral re-
sponsibility; and the directors and officers
OF our city banks will do well to give nj
tention 10 this weak spot Of our banking
methods and 10 contrive some adequate
remedy. Their duties and the obligations
Of the depOsitors Of such securities arc
well set forth by q bank officer OF much
experience in this city. He says:
person putting his bonds or securities in the
reasonably sure Of exemption nom worry on &c.
count OF tho banks debts, and might sleep
nights without dreaming his source o. incomei s
ali run away with. Bat since the Investigation
Into the Administration Of the affairs Of the at.
lAntic National Bank, II seems that special dc.
poSits" Of securities arc not particularly safe,
and are frequently source OF great grief TO
stockholders and business depositoEs, for the
handling Of such securities, OF which no ohicial
record Is kept is direct temptation TO dlshOn'
esty and fraud.
temporary loans to John Smith, Richard Roe
and John Doe, and other imaginary men, and
secures them by placing the securities LEFT with
him "ior safe keeping" As collateral. When the
bank examiner goes through the bank he huds
these collateral loans representing so much
money, and 60 far as the bank 10 concerned,
everything Is perfectly straight. But no has no
authority 10 look into the boxes and envelopes
In the vaults supposed 10 contain securities be-
longing 10 the widow and the orphans. and to
the trustees and retired men who live on their
incomes; nor would he have any means OF know
ing what should DO there, II the law gave him
Then, again, in q case where the securities are
lost, mislald, or misA ppropEiAted, or stolen or
burned up, after having been put in the bank
that the bank lie responsible. This question ig
constantly being mOoted In the courts, and still
Is very unsettled. We cannot in good faith do
otherwise than TO depTecAte tho Practice among
hands OF bank officers "ior safe keeping only"
It 10 not pate for the owner, audit Is not Just to
the weak bank ofieer 10 put temptation into his
hand with 30 safe and inviting means OF hiding.
Two points seem to be suggested by
these facts. First, that banks ought to
take as few Of these special deposits as
possible. They cannot perhaps be refused
10 many cases, and the practice of taking
such deposits Is as old as banking itself.
But now that there are Safe Deposit Com.
panies which for small compensation do
this very business Of receiving the custody
of securities, there Is the more potent rea.
son why bankers and the public should
regard with less favor the keeping OF spe.
Cial deposits in banks; and the custom
would die away much more rapidly il it
were better known how doubtful redress
would be if the securities should be lost or
stole&.
Secondly, it cannot be too earnestly i'm.
pressed on investors to put their money as
far as possible into registered securities.
These cannot be used by thief, as they
ore payable on written orders. They are
as secure as the coupon bonds are unsafe,
II a registered bond Is lost 1t Is Of little
value 10 the finder. Nobody but the real
owner can sell 1t or collect the interest,
and consequently It Is sure to come back
TO him. II coupon bonds must be had for
some specific purpose they should be
placed where they will be in safe keeping,
by which we mesn either In q safe deposit
company or IN hands not used to buy and
sell or to deal in such securities In Wall
street or elsewhere.