Some of the principal modes of receipts which the teller will be called on to handle have been discussed in the foregoing paragraphs. It is hardly necessary to mention more, but it should be said, while on the subject, that in every well-regulated branch it is strictly laid down that the teller shall not initial the customers' pass books, nor make any entries therein. He is the officer to accept, check, and certify their deposits, but he must not be the one to receipt for them on behalf of the bank. That is the function of the ledger-keeper.

Defalcations By Tellers

This rule is the bank's defence against what is, perhaps, the most frequently practised of all the forms of defalcation - the taking of money by tellers from customer's deposits. This is more apt to occur with savings bank customers than with depositors in current account. It is a very foolish proceeding, and practically certain to be discovered before it runs so very long, but that does not deter short-sighted youths from the practice when they have got themselves into tight corners through extravagant living or crazy speculations.

The method they follow is to select some customer who comes to the bank very infrequently - say, once in five or six months or so - and, on his making a deposit, if circumstances are favorable, to appropriate all or part of it instead of crediting it to the customer on the bank's books. There may be several favoring circumstances permitting this. The customer may have forgotten to bring his pass book, and may not demand any receipt or acknowledgment of his deposit; or he may suffer the teller himself to enter the deposit in his book, the teller being able to do so unnoticed by the other bank officers; or it may be possible because of loose discipline at the branch.

Having taken the money, he must keep a record of the man's name and of the amount stolen, and prevent, as long as he can, the customer's coming to a knowledge of his account as it stands on the bank's books. Then, as other opportunities present themselves, he steals more and more, keeping track of names and amounts. If any of the customers, whose money has been taken, come in to withdraw their funds, or to make fresh deposits, he is careful to keep them away from the ledger-keeper. He honors their demands for cash, if presented, taking fresh money from other depositors to keep up the deception.

As is obvious, the teller's task in concealing his frauds becomes more difficult and complicated as the game goes on, and it is only a question of time before his superiors come to a knowledge of what is occurring. It is sometimes revealed by accident.

These things are most apt to occur in offices where the discipline is lax, the rules loosely observed. In branches which have manager and accountant giving close attention to the office routine, and particular about the bearing and conduct of the staff, the chances are that some one or other of the men will detect the signs of crookedness before it has had time to go very far.