Evening star., 1926-09-05

Eternal vigilence is the price OF
liberty" 1t is also the price OF rec
ord as a successful banker.
Bankers have a saying. :You nave
to trust some one," coupled with you
cannot perfect a plan to beat crook
if one of your trusted men goes
wrong"
It is also true that crooks and com
mon frauds are working night ana day
on schenes by which they may inouce
a banker to part with the circulating
medium, and that thousands or at
tempts are being made all over the
country to get something for nothing.
And to protect themselves against
the ever-present danger the bankers
lean hard on the bonding companies
and the latter exact q heavy fee Tor
their guarantee.
Lesson Is Lost.
1t doesn't matter that the discovery
Of the populations of trusted en-
ploye, honored with the confidence and
respect OF his associates, leads to COM
plete disgrace, prison, loss Of friends.
traversing alleys instead Of sidewalks,
lodging in Railways when an old
friend is sighted. mental and physical
agony and perhaps suicides grave
the lesson is entirely lost on others
similarly inclined. Discovery is sure
always there is a slip-up and then ex-
posure-then police and bonding COM
pany.
Bonding is a costly matter. so much
SO that one Of our leading trust COM
panies has undertaken self-insurance
on forgeries perpetrated by outsiders,
while covering all their employees un-
der big blanket mortgage.
Asked how the scheme worked. an
official Of the company answered:
"'Fine; we have a good balance in the
fund for future use. Furthermore.
believe if the bankers of Washington
would club together and underwrite
their own losses. 1t might be an excel
lent business venture and the saving,
as compared with the bonding charges
would be an appreciable aid to every
Might Try 1t.
Bankers. as a rule. do not feel like
getting out from under the perfect
bonding shield-they sleep sounder
nights because of it. but if it was DEM
onstrated that it could be done with
perfect safety, they might give 1t a
test.
Local bankers are doing many
things these days of cooperation that
are resulting in benefit and actual
gain. They are eliminating unpro6t'
able accounts, imposing checking
charges on too active accounts with
out the required compensating balance
and graduating check kiters and other
similar pests.
some of the latter die very hard.
protesting, promising. etc, but they
die lust the same. when they attempt
to form connections with another bank
and find that their regulations have
preceded them.
Not Covered by Bonds.
A series of forgeries were uncovered
in the trust company underwriting s
losses itself. that will cost few hun
dreds of dollars.
A woman presented a check for a
small .amount-about $40--but the
teller not knowing her asked for iden-
tification, but not being able to give
it, she was referred to one of the Of
ficials and obtained his o. K. to the
check, which was thereupon cashed
by the teller.
Later she appeared with another
check signed by the same depositor,
and later developed a scheme to glut
the account before the bell put a
stop to 1t.
The account became overdraUn.
Notice was sent to the depositor,
which brought him to the bank in
short order with an emphatic protest,
with the statement that he had sew
eral hundred dollars to his credit. His
checks were brought out; the sigma
ture in every case perfect, but only
that on the first check genuine. After
ward the other signatures were care
| fully and ably traced.
While the matter was under con,
sideration the paying teller reported