Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1901-04-18

As usual. he is every prominent, =
"highly popular "honest beyond
SUSPICION there's the rub On
account of his prominence, popularity
and reputation, nobody thought il
worth while to watch him. lie was
given a free hand. He stole every
thing excepting the vaults, and was
accountable only to his own sense OF
moderation in leaving those.
Capital stock. 100000; deposits,
500, 600; total assets, sl2O, 000 defal-
cation, 100000. The stockholders
lose all they put in and are liable to an
assessment of 100 per cent, if necessary
to pay the depositors. What a com
mentary on banking methods is this
We are told that the peculations
covered a period of years. So much
the worse. If the crash had come as
the result of a single big forgery, the
cashier only would have been cul-
pable. But to let him make off with
all the capital stock and half the
deposits, little by little, and live out
the proceeds in their very faces,
argues the most shameful incapacity
or worse in the bank directors. The
men are not so numerous as one
would think. who, handling large
sums of money, day by day, will
not pilfer if they have unlimited
opportunity. Their temptation is
great. Many OF them are relatively
poor, serving on salary, with no
pecuniary interest in the institution.
Directors represent the stockholders
and the public. Their duty is to safe
guard the banks interests in every
way. Their oversight should be
constantly critical, and should include,
first of all, the most careful scrutiny,
even espionage, OF the man at the
money drawer 1t taxes eredulity to
assert that the Vergennes bank
directors have done their duty. The
most skilful manipulation could not so
long and so badly mislead men of
average intelligence, bent on learning
the facts.
The government mas on its payroll
at good salary, man supposed to
be an expert in banking matters, whose
entire duty consists of inspecting the
national banks of Vermont, to guard
against just such occurrences as these.
He makes periodic examinations of
the books and takes any other means
he may desire to test the correctness
of his findings We do not know how
intricate a task it is to prove the
financial standing of bank, but
results are not very flattering
Apparently, this official, whoever he
may be, is easily gulled, He some
times discovers that the bank is
but seldom that it is being
He notifies the public OF
the horses disappearance, but does
not lock the barn door in season to
prevent the theft of the animal. It's
no wonder that the public is becoming
disgusted and asking, what is a
bank examiner for !"
Seldom does the public note the
discharge of bank cashier or teller
because he has been detected by the |
directors or the examiner in the
of Irregularities The
regulations 90 on and on until the
bank "busts,n when the shocking
discovery is made that the trusted
official Ihas converted immense sums
o his own benefit, without raising a
suspicion of dishonesty. No other
business concern could wade deep
nto insolvency and maintain its
,redit all the while. No cashier of a
house could succeed ia
svading the vigilance of his employers
rs bank cashiers do. Apparently, it is
quite possible for any who steal to so
over their tracks as to ward off
detection until the crash comes.
Whether this is due to the shrewdncss
II the defaulters or the laxity of their
1yerseers there is room for difference
Dt opinion. As it is, our banks seem
o be in more danger from within than
rom without. AS one after another is
wrecked in this way, the wonder
grows if there is nothing save the
honor of one man under constant
that stands as a guaranty
70 investors and depositors that the
faith will be kept.
All the more honor to the great
majority of bank cashiers who are and
will remain honest unto the end!
Pyny-Pectoral soothes Sore Lunss
and makes tender throats well and strong.