The Intermountain Catholic. (Salt Lake City [Utah] ;) 1899-1920, 1902-07-12

account, C'S supposed check is drawn
in favor of B. By manipulating in this
manner, it can be carried out indefi-
nitely without arousing suspicion
This is Jones explanation. Brown
maintains that this is impossible, OIL
maintains that this is impossible
Who is right? Can you explain the
intricacies of banking, or show if it is
impossible to carry out a conspiracy
for a number of years to rob bank
/ in a systematic manner.
OLD MINER.
Park City, July I, 1902.
The above inquiry opens very wide
field land we have not the space to GO
| into the matter as fully as requested
Briefly however, we would answer our
correspondent as follows:
The modern system of banking is in
substance, this: A customer brings
his money to the bank and leaves,
taking simply the promise of the bank
to pay it back to him. There is no
security for this promise Except in the
case OF an investment bank, with
which we are not now dealing) The
promise of the bank to repay the mon
ey is usually in the form of a pass
book, issued by the bank to the GUS
toner. AS the customer wants his
money he signs written orders for it,
usually in the form of checks. These
checks are held by the bank as re-
ceipts. until such time as the custo-
mer brings in his pass book, when they
are returned to the customer, and the
amount thereof entered in the pass
book. This is usually done at the end
of each month. If an employee of the
bank, wishing to steal some of the GUS
TONER'S money, should forge his name
to a check, that check would, in the
ordinary course of business, find its
way to the customer, and thus the
fraud be detected. In order TO cover
his tracks, therefore, the dishonest EN-
ploye must get hold of the pass book
and falsify the entries therein, so that
it will correspond with the amount
actually due the customer. Inasmuch
as all payments of money must pass
through the hands of the paying tel
lefr, it is evident that he must neces-
sarily be party to any such fraud as
above mentioned. He would know
that the check was forged, not only
by the handwriting, but by the cir
cumstances surrounding it's presenta-
ton for payment. The paying teller
should, therefore, never be allowed TO
write UP pass book. Neither should
it be done by the receiving teller, or
the bookkeeper. A third clerk should
do it, and the same clerk should not
be allowed to write up a book twice
in succession. These precautions
would almost surely result in some
customer receiving his pass book
showing a false entry, and then the
whole thing would be made known.
Notwithstanding all these precau-
tons, however, conspiracy might ex-
list among a number OF the employees
of the bank, the paying teller the
bookkeeper, the cashier and the clerks
who wrote up the pass books, and the
money of depositors might be stolen
for years, the shortages being trans
ferred from one account to another in
such a fashion as to escape detection.
OF course if a customer holds security
for his money. he does not care what
the bank officials or employees may do,
because it cannot cause him any loss.
1t is difficult, however, to imagine
any such wholesale rottenness exist
ing for ten years under a competent
manager. The manager of a bank
is usually a good judge of human ma
ture, and in selecting and retaining
employees he considers all of their sur
and habits. He himself
should be a man above reproach in all
Of his dealings, and thus set a good
example to his employees. Like mas
ter, like man. applies particularly to
The young man entering a
bank will naturally pattern after his
employer. If he sees his employer en-
saging in speculative or question: BILE
using the money of de-
positors for such purposes. he will in
initiate that example when he
gets a chance. The moment that the
of a bank learns that an en-
oloye is gambling, either in stocks or
With cards. he should at least caution
lIl to stop it u1eier penalty of dis
nissal, and should thereafter check all |
If his accounts with the utmost care.
# the offense is repeated, dismissal is
he only safe course
The case of lodge, or a railway, is
lot parallel one. In these instances
he money is deposited in a bank, and |
hecks are drawn upon the account |
" the officials of the lodge or railway. |
The pass book shows the amounts of |
deposits and the items drawn against |
he account. Any check drawn by the
odge or railway official for an inn
roper purpose, being matter of per-
nanent record, would be sure to be
detected within few months by those
whose duty it is to examine the ac-
cunts.