Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-06-27
A UNIFORM CHECK.
Bankers to Throw Safeguards
Around Their Money
AND PREVENT STEALING.
bow the Employees of One First Glass
Bank Handle Funds
CLERKS MUST TAKE A VACATION,
Their Accounts Are Then Examined During
Their Absence.
AND PREVENT STEALING.
CLERKS MUST TAKE A VACATION.
Mr. GRANGER OF GUARANTEECO., TALKS

A scheme is on foot among bank officials of
this city to try and adopt more uniform sys-
tenn of checking their clerks with view of
throwing greater safeguards around them-in
the matter of handling money intrusted to
their care The idea has only been talked of
among a few of the higher officials, whose
names cannot be given at present 1t is very
likely that something will be done about the
matter within few days.
To ascertain what precautions some of the
leading banks of the city have taken to prevent
their employees from stealing money, a reporter
of THE DISPATCH called upon Mr.. Charles F.
Dean, cashier of the Union National Bank, one
of the soundest institutions in the country, and
interrogated him in regard to the matter. Ac-
cording to Mr.. Deans system. it is almost i'm
possible for an employe to steal money, as the
handling of the banks funds is confined to the
fewest possible number of employees. In answer
to an inquiry Mr. Dean said:
Every bank in the city hasi own way of con-
Quoting business but in banks where the same
number of men are employed, the methods are
essentially the same. Here, we have the work
so divided and systematiZed that each division
is in charge Of two men. The books and ac-
counts are so arranged that one
CANNOT FALsIFy FIGURES,
without the other detecting the false entry. In
order to do wrong there would necessarily have
to be collusion between the two employees
1--WE have three tellers, and it is almost i'm
possible for one of them to make mistake
without it being discovered at the end of the
days business. They are the only people al
lowed access TO the cash; the work of the 9TH
ers being so arranged that they do not have to
handle it When money is received from de-
positors 1t goes into the individual ledger. The
accounts are kept by two different bookkeep-
ers, who do not even see the money. The en-
tries in the individual ledger, are put in the
general ledger, and the
TWO BOOKS MUST BALANCE.
''The tellers handle the cash and balance it by
figures furnished by the general bookkeeper.
The individual accounts must agree with the
general bookkeepers balance. There is moth
ing done here but what is ultimately proven by
the two men who verify the work of each
transaction.
1T is a mistake to say that the employees of
nearly every bank Geal in lottery tickets. i
have seen that published as coming from q
bank employe, but, as far as this institution is
concerned, l can say that it is not true. If we
knew that any of our employees dealt in lottery
tickets or invested in stocks, we should ask
them to resign their positions. We believe in
removing temptation from them and they can
not then 60 wrong.
THE first safeguard we throw about the
bank is to investigate the character of our en-
ployes. That is the foundation of honesty.
Once year, each employe in the bank Is COM
PEELED to take vacation of at least ten days.
This is not done exactly for the purpose of in
vestigating his accounts. / assign some one to
take charge of the books of the absent one and
if there is anything crooked it can readily be
discovered. The employe, who is going away.
never knows who will be assigned to look over
his books until alter he is gone.
DEFAJcATIoNs ARE RARE.
"a defalcation in this city is something rare,
every case where there was a defalcation, it
was in bank where all the employees had
access TO the cash. Considering the amount of
money handled it is a wonder that the number
Of defaulters are SO few"
Mr.. W...M Granger, the agent Of the North
American Guarantee Company said yester.
day:
Il would like to see the banks throw greater
safeguards around their employees and make it
for them to do any stealing. When
you consider the large number of bank en-
ployes there are who handle money, and the
large sums that pass through their hands. it is
a wonder to me that there is not more pilfering
done. Our company has over 25,000 men bond |
ed. These men handled over a billion of dol |
lars last year, and out IF this large amount of |
money we had to make good only about $780, |
000 This is a very small loss compared with |
the large amount handled.
II have also noticed that like other things,
defalcations are contagious When one turns |
up in certain locality they become epidemic, |
and it would be well for Pittsburg bank direc- |
tors to look out at the present time"