The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-09-30
THE FIRST NATIONAL BANK.

Bank Examiner Wiswell'S examination of
the First National Bank shows in the first
place deficiency in the account of certif-
Gates of deposits of $75,664.S9. Certificates
of deposit represent money deposited with
the bank on which the bank agrees
to pay interest. The evidences of
each desposit are the entries ON the
banks books and the certificate held by the
depositor The first is in the possession of
the bank and the second in the possession
of the depositor. An examination of the
banks books alone might be never so
thorough without revealing fraud in the
account though it existed in abundance. The
only way in which the correctness or incor-
rectness of this account could be positively
ascertained would be by comparing the ac-
count with the certificates. 1t is easy to see
therefore, that this account furnishes fine
facilities for cloaking fraud. A slight exam
ination of the Bank Examiners statement
will show how Mr.. Gould ayailed himself of
it. Some certificates were entered as paid,
which are still outstanding, and in other
cases very much smaller than the true
amount of the certificate was entered, the
balance presumably being converted by Mr.
Gould to his own use.
In the cashiers checks account there is
deficiency of 1911 ,S2O22. The total deficiency
in these two accounts amounts to $167, 1851.
The principal losses to the bank have oc-
CURED in these two accounts, but there are
other smaller ones. The loss by overdraftS
is estimated at $964.52, and in overdue notes
at 81, 900. The latter loss is one that is
liable to occur in any bank and implies no
dishonesty on the part of the bank officers
The loss of $7,41S96 on forged notes is of
course the result of deliberate crime on some
body's part. The Examiner does not under
take to say who committed the forgeries and
perhaps there is no very conclusive evidence
on this point, though of course the fact that
the cashier has admitted dishonesty in other
things will direct suspicion TO him as the
author OF these forgeries. Then there is loss
Of $7,418.96 on note signed by William E.
Gould consequent upon the depreciation of
bonds which the bank held as security. The
bank has lost also $4,000, consequent upon
the shrinkage of Eastern car trust bonds.
and an Item OF $1,9S0.95 has been car
ried on the books as an asset, which should
have been charged off. The aggregate of
these losses is $3O,963.43. The account there
fore stands thus:
Deficiency in certificates of deposit
account. Observation-Disclosures, TX 66A so
Deficiency In account of Cashiers
cucCho ..''.-'.-'... .........., 81 .S2O.22
Loss Dy forgery. .................... 100000
Other losses....... -.-................ 25,363.43
Total'............................. s19s, 44s.54
To offset these losses are the property con-
veyed by Mr.. Gould to the bank. excess of
security for note of W. E. Gould, held by the
bank, of $4,000, and whatever Mr.. Gould's
bondsmen are liable for. 1t will be seen
that in any event not only will the capital
of the bank be unimpaired, but it will also
still have left very considerable surplus.
The report certainly does not exhibit the
operations of Mr.. Gould in any more favor
able light than they have heretofore been
viewed in. On the contrary, the tendency is
to make them appear darker and more de-
liberate. The books have been mutilated,
false entries have been made, and forgery
has been committed to compass or to conceal
his thefts.