New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-26
TIE EPIDEMIC or BINK FRAUDS.


Scarcely a day has passed for some time with
out bringing It's record of dclalcatlon, and the
number of frauds occurring in banks and com
mitted by bank officers is startling. But II
would be a mistake to conclude that an epidemic
OF crime is upon us. or that the men whose
fathlesSness to their trust is being brought 10
light are monsters. We must look Tor more
natural and reasonable explanations, and we
can find such without having very far to GO
The reason why so many dcialcations are just
now coming to light is, primarily. that recent
events have startled every bank corporation III
New-York out of its fanccd security, ana
caused a general ovcrhauling of accounts. Inc
second explanation is that there has been Il cuI-
pablo laxity in the management OF many none
tary Institutions for some time past, and that
through this laxity individuals have been III
many cases brought into the presence of temp
tations which they had not the strength 10
resist. II is idle to say that the characters OF
these bank officers ought to have JUSTIFIED inc
dangerous latitude permitted them. The PLAIN
truth is that no mans character ever ought 10
be subjected tn such a strain. ana that lhose
who nut the temptation in the path OF their lei
lows have themselves TO blame for the outcome
The experience of ages Is ut the back Oh thls
conclusion. In financial affairs systems anu
machines may sometimes be safely trusted bu'
men never. Good easy going directors are APT
to shift responsibility on to the active business
man of the establishment be he president
manager, cashier or paying teller. lhhgs go
along so smoothly in his hands that they
gradually relax and at last abandon their
precautions and their watchtuness Ith
every such relaxation, however, the danger Is III
crcasirr. and when all the business has got
into one pair OF hands calamity Is not far oil.
In every one Of the recent cases cool analysis
shows that the final collapse, the heavy
dcfalcation. the malyersation of trust funds,
has been made possible only by the neglect OF
the system which was supposed to be III force,
or lv the failure Of others than the actual
deiaulter to perform duties mtrusted to them.
And that which justticS popular distruaJ IN
der the circumstances is not 50 much the tac's
of the dcfalcations being revealed, a the nler-
oncc inevitable from those facts that tie honest
officers of the crippled bauks have been open
ING the door wide to fraud and theft by Il neg
!jgcuce which. III view OF Its consequences
may well be termed criminal.
, Nor will this popular diStru>t be likely to
pass away until better guarantees are gwen
for the faithful guardianship of the interests OF
dcpo>itors Neither names nor regulations
will hencoforth avail to conceal slovenly man
a,.cmcnt The public will demand such checks
and balances. so vigorously and pelpetually ap-
plicd. that it will be as impossible for the
president rs for the porter to NEEDLE with the
deposits. The pnbhc have learned that con-
Centration of power and Of responsibility Ill q
banking business is fatal to security. Respon-
sibilby and power must be divided for the
sake of insuring safety, and in no other way
can it De bad certainly. To reoommence on the
old footing would be futile. 1t is not ques-
ton nearly so much of individuals as OF
method, Of working. 1t will therefore be Of
10 use 10 seek remedy in men; the systems
will have TO be changed so that dependence is
10 longer put upon 50 unstable and precarious
a iaclo, as human character.