Rensselaer Union, Volume 7, Number 43, Rensselaer, Jasper County, 15 July 1875 — The Government Redemption Agency. [ARTICLE]

The Government Redemption Agency.

All money forwarded for cancellation and redemption by National Banks is sent to the Redemption Agency, where it receives the first count and .verification,- Tluu\ are over 2,IKK) National Banks in the United States, and it will be readily understood that tin- daily remittances are not only of great value, but the number of separate notes to lie examined and counted is immense. The money thus forwarded by National Banks is received by express in sealed packages, with the amount of each separate bundle market! upon the strap in which it is bound by the forwarding hank teller. The counting at the Redemption Agency is performed by ladies of tried honesty and large experience in handling and counting money. The packages are delivered to them sealed, as received from the bank, and they* sign receipts for each package. A second package is never given the same counter until the first has been returned properly verified ; nor is a counter permitted, under any circumstances, to have more than one package, or the straps of more than one package, on her desk at the same time. No two counters are ever permitted to work upon the same package. When a “ short" is discovered, the fact is reported to the teller and the entire remittance is given another counter for verification. The experience of those employed in the Redemption Agency and the great care and perfect svstem with which its operations are conducted render its countings absolutely correct, if absolute correctness is jpossible.

Of the honesty of the counters then* can be no question. That is beyond all speculation, and is recorded in the volumes of daily reports of operation# of the agency. A glance at the daily reconi shows that counters who have reported packages to lx $1 “ short” have reported others to be “over” in various sums running up to $7,000, and not unfrequentlv such shorts and overs are reported upon the same day. Were they disposed to be dishonest they would not make a package “short” W abstracting one note, with danger of detection imminent, when they have daily opportunities of abstracting one or more notes from packages that contain stuns in excess of that claimed by the bank forwarding the money. The record shows that the number of “ overs” is far greater in number and value than the “ shorts.” and the fact is strong presumptive evidence of the honesty of the counters. In addition to the daily record of the counter's work, a record is kept against each bank forwarding money, which shows whether the money forwarded was found to be correct as stated by the letter ■of advice and the marks on the straps. A consolidated report of the banks of New York city, according to that record, shows that a few of them invariably send their packages “short.” The “shorts” vary from $ 1 to SIOO, and sometimes they reach a larger sum. The “ shorts” of SIOO and •over are generally discovered and admitted to be mistakes by the banks, but in many instances the saihe banks will insist upon the corn:ctne?S”T»f their count when informed that their package is short -$5, $lO or S2O. While bank officers are not slow to cast

suspicion upon the counters of the Redemption Agency they never suppose for an instant lliat the tellers who put up packages in their own banking houses may be occasionally filching a note or a number of notes from the remittance! before they seal and forward them for redemption. Bank tellers, charged with the duty of preparing packages lor redemption, if disposed to l»e dishonest, have opportunity to make the rlpiittauce “short" and would lie encouraged to do so by the fact that there is no check.On their count and the consideration that the responsibility may Ik- charged upon the Redemption Agency, which is certain to lie done if the bank has confidence in its officer. Very recently a package, forwarded by a New York bank, was found to contain $3,000 more than was claimed in the letter of advice or the amount marked on the package., The bank was notified of the discrepancy and the amount of the excess was accepted without further notice. Shortly after that transaction a package forwarded by the same bank was found to be $lO short arid by the same counter who had reported the $5,000 over. Upon being notified of the “short" the bank replied that they were confident the package contained the exact amount stated when it was forwarded. Thus an unjust suspicion was cast upon a lady of character and she was charged w itii -pilfering a note in face of the fact that she declined a favorable opportunity to abstract SI,OOO or $5,000 a few days before from a package the exact amount of which was known only to herself. Here is another instance which occurred with a New York city bank; In a remittance a “ short" of SSO was discovered and reported,Jo the bank. The teller of the bank immediately made affidavit that lie knew the money was correct when, sent by him, and described in detail the manner in which he had put the money up. An investigation at tlie Redemption- Agency- showed his memory to be entirely at fault as to -the manner iu which that particular package lmd been put up. The bank would not be convinced that the package was short, and declared that its teller could not be mistaken. A short time after this incident a pnekage put up by the same teller w as received from tint same bank, which was discovered to be $1,475 over. Tlie fact was telegraphed the bank by the agency, and inquiry made whether affidavits would be required from the counters to convince the bank of the error in their package. The bank acknowledged the receipt of the $1,475, and admitted that a mistake had been made in that case. Another New York bank was continually over in tbe amounts of its remittances. These “overs” were always small iu amount, but aggregated over SIOO, and were accepted by the bank w ithout question. Finally a “short” of $lO was reported against the same bank, when a reply was received from tlie officers, protesting that the remittance was correct when sent, and plainly intimating that the $lO short had been stolen at theßedemption Agency. The agency pointed to tlie previous “overs” returned the bank, and declared that if the bank was willing to settle on the basis of its own infallibility the agency would willingly join in the agreement. These instances will suffice to show the character and groundlessness of tlie complaints against the Redemption Agency, and would suggest to bank officers that a system of chec ks upon those of their own officers charged with preparing and forwarding money far redemption might decrease their liability to loss from “shorts” in siich remittances.

It is a singular fact that if a “short" of a large amount is reported against a bank reply is immediately made that the cash of the bank upon that day balanced correctly, and that its tellers,,therefore, could not have been mistaken. That answer is invariably made to such notices froth *the Redemption Agency. When “ overs" are reported against the same hanks the jbaU atieirig of its cash and the infallibility of their tellers do not stop them from accepting the amount of “over” always forwarded. Bank officers who will inspect the mode of conducting business in the Redemption Bureau will become -satisfied of the correctness and honesty of its employes. Each of its lady counters has a character for unswerving honesty which is recorded in the books of tlte department, and which may be read by all men. Such a record cannot be brushed away by the breath of suspicion nor sullied by unreasonable allegations. Theirs is not a mere profession of honesty but the honesty that lias passed through a protracted ordeal. In the first counting of the money received for redemption to verify the values reported bv the banks something has to be trusted to the honor of the persons charged with thatyduty. The opportunities for theft are, nevertheless, reduced to the minimum. After the money has been first counted it is canceled before it goes to the assorters and a series of checks is so arranged that pilfering without detection is impossible.— Washington Cor. JS'etr York Timas. ' ’