Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-06-07
prOapccfus.

Statistics show that during the past
ten years bank wreckers. embcZzlers, and
defauters have robbed the people OF this
country OF over one hundred million dol
lars. an average of over ten millions OF
dollars per annum, and this state OF
things has been growing worse the past
two years. for the year 1899 shows rob
berries by the aforementioned methods
Of about nine million dollars, while 1898
shows about nineteen million dollars; 1894
about twenty-five million dollars and 1880
shows over four million dollars to
July lst.
Any state Of affairs which will allow
the robbery of over one hundred mil
lions Of dollars in ten years IS certainly
appalling, and calls for active measures
first. TO ascertain the cause. and next 70
provide the prevention. The cause may
be attributed to that desire which seems
10 pervade all casses-to 'get rich quick
ly." and TO live cxtravagantly. The
means by which the riches are obtained
are too little considered.
How to prevent the populations en-
bezzlemcnt. and Justification Of accounts
by employees has been the subject Of
much thought by bank officers. Some
employ the expensive method OF keeping
a double force Of clerks-one set working
Al night 10 verify the work of those en-
ployed during the day: some shift the
clerks from desk to desk AT uncertain
periods; some organize an examining com
mittee among the clerks; some employ
experts to make complete audit once
or twice a year. and some contract with
an expert to examine and audit one de-
partment a month; no one not even the
bank officers. knowing which depart
ment Will be examined next OF the
Iar anl lfr oct
satisfactory results obtained from that
Of employing experts to make an audit
either a general audit or by departments
monthly. An audit made by experienced
men, who have no interest in shielding
any one. and who will thoroughly examine
and prove each department and make
an honest report. Is certainly one of the
most satisfactory safeguards a bank can
employ. How TO prevent the robbcries
by officers Of financial institutions and
public officers Is a more complex uues-
ton, but n complete and impartial audit
by outside and disinterested parties, at
irregular periods, is the best safeguard
known.
THE FAILURES OF FINANCIAL IN
STITUTIONS SHAKE THE CONFI-
DENCE OF THE PEOPLE. AND
EVERYTHING SHOULD BE DONE TO
WARD OFF SUCH A CALAMITY.
In so many cases it has occurred thai
an investigation. after the failure OF a
bank, has developed the fact that fraudu-
lent acts have been committed for seve-
raj years, and apparently successfully
concealed
BANKS ARE PUBLIC INSTITUTIONS
INSTITUTIONS or TRUST. AND THE
PUBLIC HAVE THE RIGHT TO FEEL
THAT THEIR INTERESTS ARE Full
LY PROTECTED THERE.
In organizing this company we feel
that. i'm the territory It will operate. II
will fill grcatly-needed want. We will
furnish, upon application duly signed an
experienced examiner and expert ac-
countant.
We are also prepared to examine--in
addition TO banks-the books Of insur-
ance building and loan, railway com
panies. cities. towns. etc. All examina-
lions will be conducted under oath, and
publication made. when so desired.
Very respectfully,
THE SOUTHERN STATES
GUARANTEE EXAMINING co.
Il. b. Harding. late United States Ma
tional-Bank Examiner. Manager. Rich
mond. Va. Jefferson HoteD.
References (by pormission)-Jam n
Boyd. president First National Bank.
Richmond; First National Bank. Rca-
noke; Bank of Charleston. Charleston,
$. c.: the National Valley Bank. Of Staun-
ton, Va the Atlantic National Bank.
Wilmington. n. c.; the First National
Bank, Parkersburg. w. Va: the First
National Bank, Huntington. w. Va: the
Norfolk National Bank. Norfolk, Va.