Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-18
qaiIg Ntnnrbet .sournal
AU g U 8 It a.
SATURDAY MORNING. Oct. 10. 1873.
DEFALCATTONS.

The frequency of defalcations is one of
the phenomena of the times. They seem
to be epidemic, breaking out very gener-
ally over the country, the victims in many
cases the last persons in the community
suspected Of dishonesty. Appended to
nearly all notices of such occurrences as
they transpi-e is the announcement that
the cashier or treasurer or whatever he
NAV be was zone ofour most respectable
citizens wei, connected by marriage and
other relationship, having wide circle
of friends, and never suspected Of
the least faint of dishonesty. The last
prominent case of the kind, that of Charles
H. Phelps, in the State Treasurer's office
of New York, is somewhat in doubt as to
the previous character of the defaulter,
the evidence being contradictory. One
account says ''the defaulting cashier had
the entire confidence of all the officers ~
He was appointed "upon strong recon-
mendations," twas a man of inexpensive
habits" with nothing about him to ex-
cite distrust" Another account however
informs us that he had previously been
arrested upon two charges for corrupt
practices while holding an office in the
custom house, for which he had been re-
moved by the Collector, and the editor
suggests that no one will be surprised to
hear that he has stolen the public funds
intrusted to his care. There are some
who are confessed to have shown the
plague spot upon them previously to be-
coming defaulters, but generally they are
very well endorsed as to former charac-
ter and all that Indeed it is requisite
to holding positions of trust, where large
sums of money belonging to the govern
ment, corporations or individuals are
haudled, that the incumbent should be re-
spectacle and honest, or at least believed
to be SO by the community as well as
those Immediately interested. Relation
ship. strong personal or political friend
ship, or corrupt motives, sometimes put
tainted or suspected men in places of
sAuSes wv uouohy q hiuot poSSOSS ~
fair character to obtain and hold such a
position. A bank with known rascal
for cashier would not be likely to enjoy
the public confidence, and without such
confidence the institution would be worth
less.
Why is it then that there are 50 many
defalcations in these times? Are cashiers
and others who are entrusted with large
sums of money not belonging to them
worse than usual? The truth is not very
difficult to find. The temptations to dis
honesty have greatly increased within a
few years. This is the primary cause
Of the growth of dishonesty. Men of the
soundest principle have resisted the lure
to increase their profits, but weak and un.
sound men, who were honest under the
common temptations of life, and fairly en-.
titled to the recommendation of being
men of good character, have been unable
to resist the greater strain upon their vir-
tue and fell. The increased cost of living
while salaries remained the same or near
ly the same has been source of dshon-
esty. An officer finding his salary INSULT
cient to pay MS expenses resorts to wrong
measures to make up the deficiency. He
ventures timidly at first, using carefully
the funds which do not belong to him
providing means of retreat in case O
necessity, and resolving that he will re
turn to the path of rectitude as soon as hi
present necessities are relieved. but tn
first step taken he never stops until he
ruined and another defalcaton is pre-
claimed on the streets.
Beside the temptation of personal ne
cessity comes another in the shape of OPP
portunities to invest in stocks, bonds an
speculative enterprises. His need urge
him to increase his income, and the de
mon whispers in his ear that here is al
opportunity to do it without detection
perhaps to make his fortune, in the fancy
stocks that glitter around him. So hi
takes the money that belongs to others
and which he should keep in trust as
sacredly as life, betrays the confidence OF
his friends and patrons, and launches out
on the stream which brings him at last to
destruction. The temptation to speculate
was never SO great in this country as dur
ing and since the war. 1t has pervaded
all classes who had or could control
money, affecting in its sweep the
cashier who had no means but his
salary as well as those who had
money to risk. Those who have
gone down had the rotten place in their
hearts. Trial proved and exposed them.
The number ofdefalcations does not prove
that men are worse, but that the strain