The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-24
at.no time been in such shape that a
total OF the balances could be taken

off,"
Accounts Which Show Peril.
This statement is illustrated by the
following examples taken from of
the ledgers:
Account 17O45. redemption agent,
United States treasurer, national
ban redemption agency. /,
From Feb. / to Aug. 80 the total
credits to this account on the ledger
We're $409,166,569.94 and the total
debts were 386,O92;636.09. No bal
ances nave been entered in this ac-
count since it was started. The diff
ference between the two sides is a
credit Of $23,O7s, 1886, while the bal
ance to the credit Of this account on
that day according to the "cash room'
statement was $2S,617,899.12, a diff
ference OF over five and one-half mil
lions of dollars.
Difference Of $60e, BOG.
Account 1902. Redemption and ex-
change account:
The balance to the credit of this ac-
count, according to the ledger on Aug.
80, was 1885, 288.09. The balance ac-
cording to the cash room on the
same day was $1,863, 094.35, a differ
ence of $500, SOC. 26.
Account 1904. Treasury warrants:
From Feb. / to Aug. 80. $15,041,336.S $50
was charged to this account. One
credit for the insignificant sum of SIS
appears against this heavy, debit. In
other words, OF it's face the account
shows an overdraft of $751; OLA, 321. 6S.
show a credit balance Of So 33, SOC. 81.
according to the daily cash statement
Of Aug. 80.
Cannot State Credits Exactly.
80 much confusion has existed in
these accounts" the report asserts,
that overdrafts have frequently APP
peared, necessitating a re-examina-
ton of all the original items making
up the debts and credits and reveal
ing the fact that the bookkeepers had
been furnished with erroneous data
Tor posting. Counter-entries innumer-
able have been the result, some OF
them for large amounts. .'
Due to the uncertainty Of the cor
RICHNESS Of the balances as shown nv
the books, the, office has been unable
to state authoritatively, in ~espon
to inquiries, the balance Of officers
credit, but of late has been replying
TO such inquiries by. saying that the
amount to the officers credit would
warrant payment of his check for
dollars, with no certainty that this
balance might not be wiped out the
next day through the clearance OF
checks which had been in the treasury
for a week or longer.
These accounts, which are similar
to the accounts Of depositors in a
bank. should be handled with the
same efficiency and promptness and
should be as effectively controlled and
proved as those Of any financial
institution. Until this is done there
can be no assurance Of their correct
ness at aly time"
increase in Depositories Handicap,
Regarding national bank accounts.
the report says that prior to June /,
1913, the treasurer had accounts in
about. 500 active depository banks, but
since that date the number has great
~ increased, until there are now
about 1000 active accounts on the
~treasurer's books, to say nothing of
half as many more. inactive &C.
counts. ..~.
All of these active" banks are re-
ceiving money for the governments
accounts, paying checks issued by Of
ficers Of the government, and trans
ferring moneys in excess Of their
authorized holdings either to the
treasury offices or to other national
banks.
Because Of the magnitude and multi
tude of the transactions of these
agents of the government, and because
thu fidelity Of the custodianship should
be speedily determined, there is neces-
sity for prompt verification of every
charge against it's account.
This, we regret to say" the report
asserts. the treasury Ices not do, and
under present conditions, it cannot do.
At the date Of this writing (Sept. p
the bank accounts have been fully
verified only to June Ia"
Shows Menace of Thefts.
Here the report makes this sensa-
tional statement:
aside from the lack of accurate
knowledge regarding the condition
and correctness of these accounts, OPP
.portunities exist for gross irregulari-
ties, the preparation of which would
seriously reflect upon the administra-
ton of the office. A.
1T would be possible under the CON
ditions in which the accounts now are
for an officer or employee Of an active
d -positary bank to report to the treas
urer that said bank had transferred to
some other bank $4,000 or more as
excess deposits to charge this
dIllol11I ~ Lax . Ca . GC1kCld az
count, to put the money in his pocket,
and to depart for parts unknown,
without this action being discovered
by the ~treasurer's office within two
m~onths-long enough for the abscon-
der to reach the uttermost parts Of
the earth.
Another illustration may serve to
emphasize our statement. If an active
depositary bank should notify it's cor
respondent in New York to deposit
with the assistant treasurer in New
York $50, 900 for it's credit, as a trans
fer of excess deposits, and at the same
notification, and the correspondent
should fail to make III deposit, 1t
would not be discovered by the ac-
counting division for over two
months. In the meantime, If the cor
respondent bank should fail, the treas
urer might have serious difficulty In
holding the. original bank for the
money. The latter undoubtedly would
plead that the treasurer had been
guilty Of contributory negligence, and
therefore could not recover"
Thousands Of Checks Daily.
There are received by the t~reasur-
er's office each day from $4,000 to 40
600 warrants and checks of various
kinds which have been paid by de-
positary banks n treasury offices,
and for which the paying institution
must be given credit and charges
made to the respective accounts
against which the warrants and
checks are drawn.
No definite figures of the amount
Of uncleared checks On hand had been
available, but it was known to be
large.
An investigation showed the high
est amount of checks on hand, on July