Uncle Sam, Detective

by William Atherton DuPuy

"I am going to pay these notes almost immediately," he said confidently. "You know that I am now the local representative of a New York insurance company. I am doing a great business. In fact, I can promise a payment to-morrow."

"But," urged a director, "your personal account is also overdrawn."

"That will not be necessary any more," said Caviness. "I am now on a firm financial basis. I am now in a position to throw new business to the bank instead of being a burden to it."

With these assurances the directors parted with young Caviness on the friendliest of terms. They wanted to believe in what he said, as this would save the bank money and themselves embarrassment. Further than this there seemed nothing that could be done, and the boundless optimism of the young man created confidence.

The next day the insurance agent deposited for discount a sixty-day note for $300, given him by a man for whom he had written a policy. He drew $50 in cash, and allowed the balance to be placed to his credit. The directors were encouraged. The insurance man continued such operations, much of his paper being perfectly good. It would appear that he was on the way toward clearing up his affairs, but Caviness spent much money, some of it going toward the entertainment of sons and daughters of the directors. If they stopped him at any time it would have meant the absolute loss of the amount he already owed. As illogical as it might seem, more and more credit was extended.

In addition to the liberties that Caviness thus took with the directors of the bank, he had also established a sort of dominance over Homer Kester, its young cashier. The dominant insurance man had been a leader among their mutual associates from youth, was the social lion of the town, and always patronized the cashier. That timid youth had allowed his friend to overdraw his account when his father was a director, and it therefore seemed safe. This fact made it easier afterward when it was unsafe.

Finally the directors awoke to the fact that George Caviness owed the bank $10,000. Homer Kester, the cashier, so reported. The directors were appalled. This was the end.

Caviness was contrite. He made new notes for the whole amount. These would at least appear in the assets of the bank when the examiner came around. He promised he would in future deposit only cash and certified checks. The hope of recovering some of the money led the directors to keep the account open. There seemed no other way.