The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1886-09-01
RANK CAsnFxERs.
The English Banking System Com-
pared with the American.

The practice on the part of bank cashiers
of taking trips to Canada and leaving the
depositors and stockholders in more sense
than one points at once to the necessity of
radical reform in that portion of the bank
ing system which makes it so remarkably
easy to get away with the best part of the
available assets. It is said that "oppor-
tunity makes the thief" and it is probably
the laxity and indifference of American
bank directors that leads to SO many Ameri
can bank cashiers becoming bank breakers
In England bank cashier rarely absconds.
and, with very few exceptions, no cashier
has ever stolen enough to shake the posi-
ton of bank, facts which seem to show
that few lessons might be proftably learn
ed from the system of checking which is
universal in the old country.
There are in Great Britain practically four
classes of bankers. The first of these in
cludes the Outstanding proprietary houses
such as Barnett Hoare's, Bosanquet's. Rob
erts, Lubbock 4 Co. and others, which in
time past had monopoly of the banking
business and were backed up, as a rule, by
colossal fortunes. OF comparatively recent
date are the second and now the largest
class of banks-those established on the
joint stock system-and these are rapidly
absorbing the private houses The largest
of this kind is the London and Westminis-
ter, with several large branches next comes
the London and County, with over 200
large and small branches, followed by the
Manchester, Liverpool and District, the
City, Midland and many Others The third
class embrace building society banks, which
are very numerous, and the least sound,
and the fourth include the savings banks.
most of which are Government guaranteed.
But the busAsess of the country is almos,
entirely transacted by the joint stock bank,
and the Bank of England, which latter co
lossal institution, although under, Govern
ment control, is to all intents and purpose
joint stock concern. Most of these banks
are very sound. Occasionally there is a
heavy. failure, SUCH for instance, as that of
the City of Glasgow Bank, which involved
in its fall the absolute ruin of at least q
thousand families. But this was incorpo
rated under AN act since repealed, and its
failure was due to q conspiracy between di
rectors and employees, against which, Of
course, no possible precautions can avail.
Since this failure only small country banks
have gone to the wall, and cashiers embez-
elements have had little to do with them.
The precautions taken to prevent ba-
sconding and theft are remarkably COM
v.lafa pa,canaI bonds ara not oocaptad
every employe giving security through
sound guarantee company, which charges
80 much per cent on the amount guaranteed
and is compelled by its chartar to prosecute
in every case of embezzlement, however
small. This prevents any private settle.
ment being made to cover preculations,
and is so itself good check on dishonesty.
Cashiers do not have anything like the
power they hold in this country. There is
no such thing as tellern in England,
and his work is done by cashiers, some of
whom pay out and some of whom take in,
but who are changed and changed about
continually. Every bank, or branch of
bank, has manager, who except possibly
on the occasion of a special rush of bus.
iness on market or fair days, never handle
any coin or currency. He negotiates loans,
conducts correspondence, and is held re-
sponsible for the good conduct of every sub
ordinate. II there is no sub-manager it is
his duty to call over every item in the books
daily, or at least every other day, and to
satisfy himself that the balances are correct
every night if there is sub-manager that
work is usually deputed TO him, and in very
large banks there are several sub-managers
However this may be, every transaction be-
tween the bank and its customers must be
double licked by an official other than he
who negotiated it. When time Is up for
the day the doors are promptly closed and
each cashier balances his account. If it is cor.
rect the manager sees to the balance being
deposited in the safe in the strong room, tc
which the cashier has no more access thar
an ontsider If there is an inaccuracy any
shortage is made up from special fund te
which oil emplo, es contribute monthly, sc
that tbs exact balance Is invariably deposit
ted. This is the more important as part of
the system of checking is constantly moving
the cashiers. Thus A may be at the re-
ceiving desk on Monday, at the paying-out
department on Tuesday, at the bills payable
ON "wednesday and nerbans in the maraoer,a
room ON Thursday 10 circumvept This
check anv fraud must he not onlv svste.
matte Init universal no n man never krow,
when he enters the hank 70 what desk he
NAV be sent Frequently the change is
made at lunch time and as evidence Of
what NAV resu,t from tb;s the fo,,ow;no in
cident NAV be related.
A iupior clerk WINS sent to n hank in Rir.
minebam to cash a one-hundred- pound
check, He received roll of notes. which
be neplieently omitted to count. On get
ting back to his office he handed his en-
clover the notes who Mt once discovered
there were eleven Of f11 each He gave
the CLARK the surn,ns note IN take back In
the bank. but in the interval the cashiers
bod been cbanoed and the new man declin.
n A.