Morning journal and courier., 1889-06-01
Regular ana Irregular Banking Busi-
 mess.

mess.
 A prominent New Haven banker yesterday speaking of the Mershants' bank matter said: There are two ways Of doing business, the le- gitimate, which is praoticed by all our New Haven banks, and the illegitimate, or crimi- nal. The legitimate way is as follows: Each bank has a book in which record is kept of discounted notes. In this book are written the names of the persons to whom the money on the note is paid, the name of the indorser the date of presentation at the bank aud the date on which the note is collectabls. At each meeting of the board of directors this counted is read. They are taken one by one and voted upon by the directors, each direc- tor responding "Yes" or ''No" as his name is called. As a result of the vote either an "A" or an "R" is placed after the record, showing that the note has either been accepts ed or rejected. That is the regular way of carrying on the bank business, as far as deal ing in notes Is concerned.
 "Now for the irregular way. Suppose man came into bank with . note say for a thousand dollars; the cashier gives him his money, but he does not make 8 record of the discount of the note. Instead of that he puts the note aside and it is not offered to the board of directors. What do you call thatf Why, just as soon as the cashier secretes that note and keeps all knowledge of it from the board of directors, he is using the funds of the bank in an illegal and improper way The direotors have no knowledge of the pres- ence of the note and in order to keep it's presence hidden from sight the books must be doctored to make the cash on hand balance even. This is nothing more than breaking the rules of regular banking, and whenever an official in bank, either from good or bad motives, or what ever the quality of the paper may be, does hrip fO fha the directors, then he commits crime.
 "One man in 8 bank cannot go ahead and successfully and wrongfully take or use money belonging to the institution. But if the cashier and teller combine, they can car- ry the thing along for some time without be- bank are aware of this, and for this reason are all the more watch ful but they have to take their chances just any business man does. of tripping up over dishonest employe. You cannot appreciate the care with which the unless you attend 8 meeting. They en- deavor to be courteous, of course; but at times the inquiries are such that a sensitive person would be insulted at the questions asked.
 "These are the two systems. One is per- fectly legitimate. The other is nothing less than criminal. It is not true that banks are obliged to resort to the latter system in order to make money. There is a paying, though not large profit, in the regular business, and the irregular system would not be countensnced for a moment by any bank director.h
 WHAT MIR. CONVERSE SAYS.
 President W. ". Converse of the Vim chester armory, who is director of the Merchants, says the bank has $55, ,00O mar gin of surplus left over and above the very outside figure of loss. This he considers modest and moderate statement, and he further says that under no consideration can this amount be reduced so that the bank will not have at least $40, 900 remaining.
 WHAT MIR. ALDEN SAYS.
 By request Mir. Alden, the bank expert who is assisting at the Merchants, we pubs fish the card given below. Mr. Alden last night emphatically verified the bank officers statement as to the extent or rather limit of the banks losses, saying that the capital is intact and that considerable of the surplus will be raised.
 MIR. ALDEN's GARD.
 MERCHANTS NATIONAL BANK,
 NEW HAVEN, Conn, May 31, 1889. Editor of the New Haven Register:
 It has just come to my knowledge through an ar- ticle published in your paper last evening that the merit of the discovery of the irregularities in this bank belongs to and not to Mir. Dooley. the Ma dscaim any credit whatever for the said discovery and desire that you publish this statement in your know of the facts only as they were impartedt ]