New-York tribune., 1900-11-21
COSTLY IGNORANCE.

Some statements Of special interest are made
in connection with the robbery of the German
National Bank at Newport Ky, by its assist
ant cashier, which, in proportion to the re-
sources of the institution and the size of the
place in which 1t was doing business, one
of the most complete performances on record
The other officers Of the bank are astonished
They had never dreamed of such n possibility
Everything appeared to be all right, and they
supposed that the assistant cashier was living
honestly and decorously on his modest salary
of $1,000 a year. But no sooner is the rela-
lively enormous defacaton discovered through
the agency, it Is said OF a profigate woman
than numerous competent witnesses come for
ward to tell facts Of which the defaulter's con-
fiding associates in the bank were strangely
ignorant. His habits, they say, were irregular
and extravagant. The game Of poker was his
delight, and a high limit was the next best
thing to no limit at all. Cases are now cited
where he spent more than his salary in one
day" and, altogether, the impression is con-
veyed that it would have been entirely reason
able TO expect his downfall long ago. We have
said that such statements as these are narticu-
larly interesting But that is not because Of
their novelty. 1t Is rather because they are
common and familiar in the history of large
defalcatiOns.
1t is said, doubtless with truth that a bank
examiners Investigations must necessarily he
more or less superfcial; that he cannot possibly
trace every item of account explore everv
transaction and verify every record submitted
TO his scrutiny. II is urged also in behalf of
the responsible heads of financial institutions
that when they have established nil the sofa
guards which experience suggests they are still
compelled to repOse a large measure of conf
dence in their subordinates, and that conse
quently, human nature being what it is an
occasional breach of trust must be reckonod
among the chances to which such institutions
are inevitably exposed. This plea holds good
to a certain extent, but a tendency to strain
it is sometimes observable when faith has been
disastrousy betrayed. In many such cases
it appears to the outside public and is acknoN,l-
edged by experts that the omission Of some
simple precaution, like a frequent exchange or
desks, was the weak point in an elaborate
system. But this is not the sort of Negligence
which is Illustrated by the quick and easy OK
posure of the Kentucky defaulter's charactar
and habits, though i'll that instance also ade-
quate conditions of security do not seem to
have been maintained within the bank. The
reflection which is first suggested by the local
accounts of his associations and mannor oF
life is that his superors ought not 10 have
been ignorant OF circumstances with which so
many others were acquainted
The responsible officers of a bank may no+u-
rally shrink from applying inouisitorial nroo-
esses TO an employe whom they like and ra-
spect though we not sure that they are
not bound to do that very thing within rea
sonabe limits. But they are assuredly at fauIt
when they fail to suspect or choose to ipnora
notorious facts prejudical to the reputation and
character of individuals to whom they intrnst
the care OF other peoples money. Nobody can
have failed to observe how often and with
what facility and general accuracy the news
papers within few hours after defalcation
ascertain the uses to which the criminal put his
stealings Frequently. indeed the facts are
rather thrust into their possession than oh
tanned by their efforts. A mass of evidence