An experienced banker offers the following suggestions to prevent defalcations and embezzlements through the manipulating of the bank's record books: Secure clerks of high character and integrity and have a proper system of accounts with a perfect system of checking everything. If possible keep accounts in duplicate. The balance ledger can be proved to a cent every day, and this should certainly be done. When practicable, it is better to have all differences investigated, and reported upon by some one who is not directly responsible.

A number of banks in the large cities have created the position of auditor of accounts, and it is one of his duties to report to the cashier direct upon all differences. This auditor reconciles accounts-current with out-of-town correspondents, balances and delivers all pass-books, and furnishes information to all depositors respecting their accounts. A great benefit is secured to a bank by the examination of one man's work by another.

Pass-books of active accounts should be written up once a month, and no pass-book should run longer than two months before being balanced. It should be a rule in every bank that no charge entry should be put through the books,except from a proper voucher, that is, a check signed by a depositor, or a charge ticket made out and signed by an officer of the bank. The discount clerk and the collection clerk should not be the same person and neither of them should be the corresponding clerk. The monthly accounts-current rendered by a city correspondent should be reported upon promptly, and any disposition on the part of the bookkeeper to delay or neglect this matter should be corrected.

A very important requisite in modern banking is a system of thorough examination at irregular intervals. No teller, bookkeeper, or other clerk can suffer the slightest harm from having his cash and books examined and found correct. All notes held for collection should be accounted for, and balances due from other banks for collections should be verified. Special deposits of securities held for safe-keeping should be examined occasionally. The more complex the bookkeeping the easier it is to "cook" the accounts.