Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-07
BANKING REFORMS
4 UVE QUESTION
Next Legislature May Be Called
Upon to Take Up Matter at
Next Session
SEYMOUR STEAL STARTS TALK
Bank Examiners Do Good Work and
Frequently Prevent Questionable
Methods, But Under tho Law There
Arc Some Things They Can Not
observation-disclosures Needed.

Special 10 lIuCo-INSPuOlASosA'
Des Moines, May 7.-Failure OF the
Seymour bank and the ease, seemingly,
with which Cashier Ware covered up
his tracks and escaped detection Is
causing those Interested in the bank
ing business to say that there must be
some legislation when the general as
sembly meets again The efforts OF the
state banks to bring the private banks
under state inspection and the fight OF
the sprivate banks against Inspection
and the efforts of the national banks to
see that the state banks get all that Is
coming to them and little more II
possible so that the nationals VIII nave
the advantage, it Is claimed mas pre-
vented bank legislation OF any sweep
ing kind.
In the mind Of the public the bank
examiner Is frequently held RESPONSE
Bile while under the present state law
the bank examiner is able to do little
more than to see that the bank does a
Legitimate bank business. 1t Is left FOR
the directors to find out whether or not
the notes taken are good and wnetner
the cashier is doing an honest Dusl-
ness. AS a matter of fact the bank ex-
aminers are continually detecting
things that are not exactly right and
dozens of instances could be given
where crookedness has been straight
ened out and bank put on a solid bas-
is by the examiner where, II prosecu-
ton was started, run op the pank
and a collapse would follow. NOW 1t Is
proposed to inaugurate system, II
possible. that will put check on all
bankers so that the cashier cannot IS
sue papers or make move that is not
detected readily.
Bankers say that the cause of the
Seymour trouble, from the newspaper
accountst seems to be due to the fact
that Cashier Ware issued certificates OF
deposit without making any record In
the bank books. He was thus able to
pocket the money. Furthermore 1t -
pointed out that when a deposit SUBJ
iect to check is made at bank the
only record the depositor gets is BRIEF
notation in his bank book that is MOTH
ing more than a memoranda. Many
other transactions in the banking bus
mess are of the same nature. Many
of the patrons of the Seymour bank
who claim to have deposited money to
their account have nothing but the no.
tation in their bank book, which is only
memoranda and cannot be taken as
evidence.
A person closely identified with the
banking business in this city mas
thought out scheme that will check
nine-tenths of the chances for crooked
ness, according to his belief. He pro-
poses that the state have printed and
furnish to the banks at cost a system
of books which instead of being pro-
vided with stubs will be provided to
make carbon copies. The state blanks
only will thereafter be recognized as
Illegal. 1t is his idea that the blanks for
certificates of deposit should be made
something like United States money
order with the carbon attachment SO
that bank clerk or cashier cannot is
sue a certificate without there being
retained in the bank as evidence the
carbon duplicate. The certificates
hwould be numbered consecutively, so
that it would be impossible for a CASH
! ier to issue one without a record and
without detection.
It is proposed to have the same thing
tdone for every kind of deposit and also
for drafts. He would do away with
the bank book or pass book and pro-
vide that every deposit for time or
sight should be receipted for with the
blanks similar to the postoffice money
order. With all deposits and drafts
accounted for in that manner, it is
claimed that the only thing left for a
bank cashier to get crooked on would
be to forge notes. A good forgery
could only be detected by the directors
Of the bank or by communicating with
the person whose name is signed to the
note. andeit is claimed that check
could be put on this by requiring the
bank directors by statute to communi-
cate with the signer Of every note with
in a certain number of days after the
note is dated.
If the bankers thru their associations
should take up some such scheme and
bring it to the attention of the legis-
lature, there is no doubt but that a bill
could be gotten thru, and the matter
will probably be brought to the atten-
ton of the bankers. If they do not, 1t
lis entirely possible that the scheme
may be brought to the attention of the
Legislature anyway
| No report has been made to the audi
/ tor of state with respect to the Sey-
mour bank shortage by Bank Exam
iner Leland Windsor, because the ex-
animation is not perfected. Mr.. Wind
sor expects to return to Seymour next
week to complete the work.
The shortage will amount to about
$4,000 and was effected by the issu-
ance of time deposit certificates, not
recorded and for which the money did
not go to the bank. Cashier Ware has
disclosed the direction in which the
money is said by him to have gone.
| The court inquiry remains to determine