Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-25

1e6, 5s9.94 and the total debts were $3.50,
0S2. 6S6. %. No balances have been entere,
in this account since 1t was started. TIL,
difference between the two sides Is
credit Of S23, or, 933. IS, while the balanc,
to the credit Of this account on that .da,
according to the "'cash room Statement
was s$2S,617 ,S99 10. a difference OF owe
fvfie and one-half millions OF dollars.
Account 17o42. Redemption and ex.
change account. sS5
The balaice to the credit OF this &C.
count accordingto the ledger on Aug. &
was $1.256, 2s8. 09. The balance according
to the cash room on the SAM day, was
$l.S63, 094.35, a difference of $606,sO6. 90. I
s much confusion has existed In
these accounts the report asserts. .'that
overdrafts have frequently appeared, ne
cessitating q denomination of4all the
original items making up the debts and
credits and revealing the fact that the
bookkeepers had been furnished with er.
roneous data for posting Counter-entries
innumerable have been the result, some
of them for large amounts.
due to the uncertainty Of the correct
ness Of the balances as shown by the
books. the office has been unable to state
authOritatively, in response to inquiries,
the balance to 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 treas
ury for a week or longer.
These acco, nts, which are similar to
the accounts Of depositors in a bank,
should be handled with the same eff.
cieicy and pr mptness nd sh uld be
as effectively controlled and proved as
those Of any financial institution. Until
this is done there can be no assurance OF
their correctness at any time"
Regarding national bank accounts, the
report says that prior to June i, 1913, the
treasurer had accounts in shout 500 ac-
tive depository banks, but since that date
the number has greatly increased, until
there are now about 1000 active accounts
on the treasurer's books. to say nothing
OF half as many more inactive accounts
All of these active" banks are receiv.
Ing money for the governments accounts
paying checks issued by officers Of the
government, and transferring moneys In
excess of their authorized holdings either
to the treasury offices or to other ma
tional banks.
Because of the magnitude and multi
tude of the transactions Of these agents
OF the cu%stodianship should be speedily
determined, there is necessity for prompt
verification of every charge against its
account.
This. We regret to say" the report
asserts. the treasury does not do. and
under present conditions, 1t cannot do.
At the date OF this writing '(Sept. y the
bank accounts have been fully verified
only to June H.
Here the report makes this sensational
statement:
Aside from the lack Of accurate knowl
edge regarding the condition and cor
rectness OF these accounts, opportunities
exist for gross Irregularities. the perpe.
tration Of which would. seriously reflect
upon the administration Of the office.
1T would be possible under the condi-
tions in which the accounts now are for
an officer or employe of an active de.
positary bank to report to The treasurer
that said bank had transferred to some
other bank $4,000 or more as excess de-
posits.' TO charge this amount to the
treasurer's general account. to put the
money in his pocket, and to depart for
parts unknown, without this action being
discovered by the treasurer's Office with
in two months-long enough for the alb
1scorder to reach the uttermost parts Of
the earth.
Another Illustration may serve to EN-.
'phasize u statement. If an active de-
.positary bank should notify it's CORES.
.pOndent in New York to deposit with the
treasurer in New York 10000
for It's credit, as a transfer Of excess de-
posts, and at the same time advise the
treasury Of such notification, and the cor
respondent should fail to make such de-
post. It would not be discovered BY the
accounting division for over two months.
In the meantime, it the correspondent
bank should fail, the treasurer might
have serious difficulty in holding the or
iginal bank for the money. The latter
undoubtedly would plead that the treas.
urer had beer guilty Of contributors. neg:
tligence. and therefore could not recover
There are received by the t~reasurer's
office each day from $4,000 to 10000 war.
rants and checks of various kinds which
have ben paid BY depositary banks and
offices, and for which the pay
Institution must be given credit and
charges made to the respective accounts