The Columbia herald. [volume] (Columbia, Tenn.) 1850-1873, 1873-04-11
THE BANK OF ENGLAND FRAUDS.


tempts to prey upon the complex organ
ization of modern commerce. It is no
isolated fraud committed by an ordina-
ry gang of forgers for the sake of a few
hundred pounds It is as elaborate q
conspiracy as was ever concerted at New
York to gain the command of railway
or the bullion market, and must evident
ly have been carried out by men of con-
siderable acquaintance with commercial
affairs, and commanding large capital.
The manner in which the plot was laid
indicates the possession of very COM
plete informBtiOn respecting the man.
agement of business in the city. The
object was to get forged bills discount
ed. Now, the bank of England exer-
cises very great caution in admitting
new customers to the privilege of OBJ
tanning discount. Any person who de-
sires to open "discount account, "
must be introduced by one of the direc-
tors, and, consequently, very careful in
quiries are made into his responsibility
and solvency. 1t is highly improbable
that the confederate of a gangof forgcrs
would be able to produce sufficiently
satisfactory recommendations to induce
the bank to grant him discount accom-
mediation. But the bank has a branch
in Burlington Gardens, which does an
entirely different kind of business from
the parent establishment in the city. It
is intended for the convenience of gen.
tlemen;and ladies and West end trades
men who might find it inconvenient to
journey to the city in order to transact
their occasional business. It is not,
therefore, ordinarily concerned with
the large bill transactions of city COM
merce, and in consequence is less
bound by strict regulations in dealing
with any business of that nature which
might accidently be brought to it. The
conspirators must have been aware of
this, and they laid their plans for ap-
preaching the bank of England by this
weaker portion of its defenses.
The person, accordingly, who is now
being sought by the police, commenced
by opening a deposit account of the ordi-
nary character with the western branch
of the bank. For this purpose he
would need only an introduction by
some customer, and the only evidence
of solvency the bank would require of
him would be the deposit of a sufficient
cash balance. This was, of course,
forthcoming, and constituted part of the
capital with which the scheme was car
ried on. Of course, all the money thus
invested would. it was expected, ulti-
mately be recovered but the gang
must have been well supplied with
funds in order to keep a large sum of
money invested, as it were, IN the spec
ulation. The manager of the plot was
in no hurry, and took care to gain a
| good footing before he ventured on his
ultimate enterprise. He behaved for
/
er of good resources. He drew upon
his balance and renewed it, but kept it
always at good figure After while
he deposited some bills. They were
good and genuine bills Still he was
careful net to be hasty, and he continu-
| ed his transactions with the bank until
he had acquired the reputation of a per-
son engaged in legitimate commerce
and thoroughly trustworthy. At length
the moment came for the presentation
of forged bills. They were discounted
without hesitation, and the authors of
the fraud had, to all appearance, succeed
ed in safely pocketing about 100000.
Some of the money, it appears, was in
vested in United States bonds, so that
| to the last they might avoid the appear
ance of doing anything unusual. They
are said to be Americans, and what more
natural than that they soould desire
bonds of their own country? All these
arrangements were masterpieces of in
genuity and patience. But the bills
themselves must have required the
greatest amount of labor. In the first
place. many of the large firms upon
whom the bills purported to be drawn
are In the habit of using a peculiar kind
of paper, with certain water-marks and
printed matter. All this would have to
be initiated, and, as the bills were |
drawn on more than one firm, there |
must have been several such limitations. |
There remained the drawing of the bills |
and the afixing of the signatures, and |
each bill must have required a series of |
feats in successful forging. Some bills |
were backed by several acceptors, so |
that there might easily be as many as
half-a-d0zen signatures on a single bill. |
Yet the bills were SO perfect that not |
one of them was questioned on the |
ground of the acceptances not appear |
ing genuine. The plot had, to all ap- |
pearance, a success which its consum- |
mate skill and patience deserved. The |
money was obtained. The bills were |
drawn at three months date no further |
inquiry was likely to be made about |
them until they fell due, and the forger |
would have ample time for placing |
themselves far beyond all risk of cap |
ture. But it is rarely that these con-
spiracies are not marred by sore utter
ly gratuitous oversight, and the execu- |
ton of this scheme was marred by the |
inevitable flaw. The men who had ex- |
erted skill, foresight, and preserver
ance sufficient to insure the unhesitat- |
- r. L. ~
escape one trivial blunder, which re- |
vealed the whole plot. They presented |
two bills in which the date of the ac- |
ceptance had been omitted. The whole |
calendar was at their disposal; they |
knew that single ia the usual formali-
ties would be fatal, and yet they fell |
into the folly of marring their whole |
scheme for lack of date. Inquiry was,
of course, made of the firm whose ac- |
ceptance was thus undated it was dis |
covered that the bill was not genuine,
and the whole series were then found to |
be forgeries. How much further the |
plot might have been carried it is i'm
possible to say.
Thus a conspiracy, which must have |
required months of work, the most pa
tient ingenuity, sustained management,
and the expenditure of large capital,
has suddenly collapsed 1" for lack of a
nail, - and the whole labor is lost. 1t is
difficult to know whether to feel more
surprised at the misdirected energy re-
quired for such scheme, or at the evil
dence it affords of the dangers to which
our elaborate system of commercial fl
nance is necessarily exposed. Consid-
ering the millions which change hands
day by day by the mere process of in
dorsing bits of paper, it is only wonder
full that more forgeries are not attempt
ed. But it requires qualities quite out
of the common to carry out plot of
this magnitude and elaboration. It
was, in the first place, speculation of
the highest rashness. These men stalk
ed large sums of money on the chance
of their being able to pass off success
fully complicated series of forgeries
The same amount of money invested
in legitimate enterprise, and applied
with similar energy, could not have
failed to yield an abundant return.
What is the perversity which drives
men of these talents and opportunities