Bonding employes;

              Bulletin HASKINS & SELLS 61
Bonding Employes
THE present epidemic of embezzlements
has drawn attention, among other
things, to the bonding of employes. Not­withstanding
the large volume of business
being done every year by the numerous
surety companies, it has developed that in
too many instances firms and companies
suffer serious losses through defalcations by
employes who are not sufficiently bonded,
or are not bonded at all.
Cases such as one which occurred not
long ago are rare. A cashier had been
misappropriating various amounts of his
employer's funds over a considerable pe­riod
of time, and had been depositing them
intact in his savings account until he could
accumulate enough for the purchase of a
house. He suffered the misfortune, how­ever,
of being discovered in his nefarious
scheme just as he had reached his goal and
was about to spend the money. Under the
circumstances complete recovery was easily
effected.
It is almost a commonplace that em­ployes
and officials occupying positions of
trust should be bonded. Frequently em­ployers
have been restrained from re­questing
bonds by a fear that those in their
service might consider such requests as
serious affronts to their integrity. Never­theless,
in many instances these same em­ployers
have permitted employes to work
under conditions affording ideal opportu­nities
and even temptations to dishonesty.
The widespread use of fidelity bonds
should serve as a reassurance to an em­ploye
that his honesty is not being violated
by a request that he furnish a bond. The
recent extensive defalcations, many perpe­trated,
unfortunately, by most trusted