The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1916-10-20
The Bank WreCker
BY WILLIAM ATHERTON DU PUY
Copyright by W. @. Chapman

Y. @. Chapman
no record of It except In the pass
books. He got nearly all the money
that came in for two months before he
was found out"
There are a lot of ways in which a
bookkeeper may hide the facts with
relation to bank" continued the spe
cial agent. 1T is pretty safe to charge
anything to the inactive account of an
estate or an endowed institution
These are not often looked into. The
accounts balance for the examiner. I'll
bet there isn't one bank in dozen
that doesn't fool the examiner"
ITS the easiest thing in the
world" volunteered Sloan, ito take
the necessary number of leaves out OF
the loose-leaf ledger to counter-balance
1t If the cash Is short, and hide the
leaves until the examiner is gone"
did you ever know that to be
done?" abruptly asked the special
agent.
The bookkeeper colored to his tenn
pies and was noticeably confused al
the question. Then he said he had
heard of its being done. The sleuth
would have sworn he had led the book.
keeper into a confession.
Nothing was more natural than that
these two bank bookkeepers>should re.
cur occasionally to the possibility OF
SO arranging accounts that were in
questionable condition that they would
be passed by the examiner. Gard
would lead to this in such a way that
the bookkeeper would seem to have
begun these discussions. Then he
would talk freely. He would tell so
many stories that the timid Sloan
would want to relate q few in furnish.
ing his part of the entertainment. But
Gard knew that the bookkeeper was a
man without imagination and that he
could relate only what had happened
in his experience. So, he was all ears
when Sloan one night gave his opin.
ions on the subject of kiting.
"Of course" he said, "all banks have
depositors who kite their checks and
thereby get hold of money which they
may use for week before they have
to make good. A deposition may turn
in a check for a thousand dollars,
drawn on New York bank where he
has no money. At the same time he
sends the New York bank a check for
the same amount, drawn on you. This
causes the New York bank to honor
the check drawn against it. The check
drawn on you has to find its way
through the clearing house and it will
be week before it gets back. In the
meantime the depositor has had the
use of thousand dollars"
"But when it comes to real kiting,"
continued the bookkeeper, ut is the
banks themselves that do it. If bank
has a sudden call for 100000 and
hasn't the money, all it has to do is to
send messenger with a check to a
friendly bank around the corner. The
messenger gets the whole amount in
cash. 1t appears as an asset of the
bank. It will be two or three days be.
fore the check will come back through
the clearing house and appear as a
liability, or the friendly bank may hold
1t up for a day or two. The banks may
be swapping this sort Of favors. The
bank examiner does not know of the
outstanding check. He is out of town
before 1t appears"
Special Agent Billy Gard was again
practically certain he had here been
told chapter out of the experiences
Of the Second National. He began to
see his way clear to denouement.
That same night events were tran.
spring Of which he was to know a
week later but which as yet were held
in confidence among the directors OF
the Second National. They took place
at a meeting Of these same directors
called by minority which was dis.
satisfied with certain features of it's
management. Director Hinton. q
sprightly and quick-tempered little
man, was the leader of the revolt Sen.
ator Bothdoldt was present as q sup.
porter of the management of the bank
as represented by the suave. forceful
cashier, Bayard Alexander, whose
hand sometimes shook at breakfast.
L want to protest." Hinton began
by launching directly into the heart OF
the matter in hand, against this new
loan to the McGrath Construction com.
pany. 1t has been three years now
that we have been pouring out our
money to these people. We have $780,.
600 of their paper and I want to be
shown that we can realize on It. It is
time to call a halt"
"And there are the notes of the Old.
man Mercantile company" somewhat
heatedly argued a second disaffected
director. Il have been reliably In
formed within the last two days that
they are in danger Of going to the
| wall"
And we. as directors, ane responsf
BILE for the bank" said Mr.. Isaacs, who
was conservative.
Il for one," said Mr.. Hinton, have
reached the point where insist on q
new management. would like to know
the sentiment Of the board upon this
question"
But the cashier asked for a word OF
explanation. Broad-shouldered and up.
standing he rose among these heavy,
sleek, bald-headed business men. His
high and Intellectual brow and clear.
cut features gave him a distinction
that always made its impression. But
the firm mouth and the damp curls
were those Of man Of physical force
and determination. His voice was al.
Turing and convincing as he made hts
plea and there was now NO tremble of