The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1908-11-21

were not, but because Il has been my
experience of many years that these
periods OF defalcat.on come In cycles.
Whatever the cause. there are cycles
OF honesty and cycles of dishonesty;
and the present is cycle OF dishon-
esty with its cause In modern stand.
ards of enjoyable living.
Laws Not Enforced.
And let me make my opinion en-
phatic that the laxity with which the
criminal laws of our land are enforced
by many of the judges of our courts
has much to do with encouraging bank
officers to misuse the funds in their
keeping These officers see too many
cases of the difficulty in convicting a
dishonest bank official when defended
by shrewd criminal lawyer, and they
are therefore willing to take the
chances of detection. and even the
results of a trial, before the too fire.
quent judge whose Interpretation OF
the law, admitting of evidence and
charge to the jury, are all In favor of
the accused.
There are many direct causes for
bank defalcations. but the primal
cause Is the desire for luxury fostered
in the great cities. or late years the
chief immediate cause Is the using of
the banks funds to promote enter.
prises in which the banks officers
have interested themselves. In many
cases the bank officer is made an
officer of the outside corporation,
which fact is heralded to the world
with all the advertising skill of the
promoter, and upon the reputation of
stock. Now, one of the main reasons
which animated the promoter in finan-
cially interesting the banker was that
If at any time the concern required
financial assistance-which is inyari-
ably the case-it could readily be
obtained through him from the bank
of which he was an honored and
trusted officer. Experience shows
that what was at first small loan
soon Increases in amount until a
point Is reached which means disas-
ter to all parties interested II addi-
tional aid is not given. Then it is
that the demand for money must be
met to prevent the bankruptcy of the
new corporation and the consequent
loss not only of the money invested
by the banker and his many friends,
but also the loss of his own reputa-
ton as financier and man of in
tegrity.
Glitter of Speculation.
"Then, too, 1t often happens that
instead of becoming financially inter-
ested in new projects or outside bust
ness enterprises the bank officer sue.
cumbs to the seductive influences Of
speculation. He tries his hand in the
stock, grain or cotton market with the
belief that in this way he can amass
fortune in a short time and without
effort.
"He pursues the same method that
is followed by those who buy or sell
stocks, grain or cotton on a margin.
His whole idea is to get rich quick,
and in order to accomplish this he
either buys or sells the largest
amount possible with the smallest
amount that his broker will accept as
margin. A slight adverse change in
the market price of the commodity
or security in which he is specializing
wipes out his margin, ana call from
his broker for additional margin to
carry the transaction must be met.
Having exhausted his own money,
and being convinced that his ideas
as to the future course of the market
are correct, he makes the false step
Of borrowing money from the bank
and using it as margin with his
broker.
1T is only a question of time, vary