, 1873-02-03

Now Hampshire is greatly agitated over the
recent defalcation Of 6hnto, the Cashier Of tho
Granite State Bank and tho Treasurer of tho
Savings Bank, at Exeter. Tho entire amount
abstractod from the Savings Bank WAS 9120,65l,
and from the National Bank $4,000. Tho un-
lnwful uae Of tho baul funds had been going on
for q great while. As he WIS the managing off,
Ger Of both insttutions, when an examination OF
the ono WAS mado ho would produce tho securl-
tics Of tic othor to make good the dedcits, aud
pice uersd.
Commenting upon this defalcation, the Boston
Herald makes the worry sensible suggestion that
vacations would bo d safeguard against bank
frauds, and claims that there has not boon sim
glo instance Of defalcation in any bank or Office
in Boston during tho past twenty five years,
where tho defaultor was not constantly at his
post, working from morning to night, anxious
even, to work evenings and Sundays, and always
refusing to take vacations. In view of this fact,
upon thoir employees taking q vacation
onco or twice year. Tho proposition Is an em-
inently prudent ono, aud would undoubtedly
tend to render tho property Of dopositors moro
socuro. Thoro is no dofalcaton, however skill
fully conducted, which could 10 concealed auy
length Of time III tho absence of tho Cashier or
Teller engaged in 1t. Flo must DO in tho bank
constantly, md have uninterrupted possession
Of the books and accounts, to keep It from tho
scrutiny Of others. An honest substitute in q
dishonest Cashiers place for two or three weeks
would bo certain to discover tho deficit in the
bank's accounts Tho Cashier must 10 at his
post unnteruptodly, and no other hand must
prepare statements or balances but Ills to make
auccess complete. Dofalcationa arc not naatters
Of sudden impulae or haaty completion. They
arc male very gradually, and may last through
several yoara boforo thoy accumulate 90 that
longer immunity from detection is impossible.
All this timo the guilty party must DO at his
post. From tho very moment ho commenoes,
he muat give ha unromitting attention in noy~
ering today the trucks lie mado yesterday. To
must keep tho bank funds moving In q novor-
coastng stream, 80 tint tle holo In tho bottom
Of tho measure may not bo dotoctod. But sup
pose thAt tho Cashier or other omploye ia tnform~
ed that iae may have short vacation In winter
and summer, and that ho must improve it, md
that m honest, capable man is employed to do
| his work during his abaanco thon tho regularly
recurring breaks in tlmo strip linn Of
tho opportunity to arrange und per-
feet scheme Of defaloation which cannot
DO instantly discovered. It la not always to the
| credit OF man to work 8G5 days In a year,
| especially whom 1t happens that the vast major
Ity OF iofaulters are the mon who hayo worked
| In this mannor.
| Thore Ia another safeguard which might also
bo thrown about bank property, and that is not
only to give employees who have tho handling Of
tunds an opportunity to onjoy vacations, but to
fix their aalar1os ut ratoa which will make 1t pog-
siblo for them to afford and enjoy vacation, aud
Which will pay them proportionatoly for tho eer-
Vices they ronder. shuto, tho Now Hampshire
aefaulter, who was ono OF tho mon never absent
from his post, received but 81 200 per annum
for his services as Cashior OF the National
Bunk, aud $500 as Treasurer Of tho
| Savings Dank. These salaries wero not pro.