deposit slip or ticket showing the amount of coin, notes, checks and other documents representing money. The receiving teller should verify each item and the total and make sure that all checks, drafts and other negotiable papers are properly dated and indorsed by the depositor before entering the amount of the deposit in the customer's pass book. In some banks the receiving teller writes his initial on both the deposit slip and the pass book for future identification. The receiving teller should be thoroughly familiar with all forms of money and always alert to detect counterfeits. Generally the money received is counted at once to make sure that it tallies with the deposit slip, before the entry is made in the pass book. In cases where the deposit includes a great many small bills, and the teller is pressed for time, he may pass a band about the bills, temporarily accepting the depositor's count as correct, and count them later when he has more time. This is open to the objection that if his later count does not agree with the amount stated on the deposit slip an unpleasant dispute may arise between the bank and the depositor.

The deposit tickets are filed on spindles and after the amounts are entered on the deposit scratcher they are sent to the bookkeeper's desk to be entered in the proper accounts. The receiving teller's "cage" should be supplied with convenient racks for stacking the bills and with trays for coins. At the close of the day the coins, after being counted, are put in bags or wrapped in paper rolls in convenient amounts, and the bills of like denominations are strapped in bundles. After proving his cash, the receiving teller turns it over with a statement to the paying teller, taking a receipt for it.

The checks received are assorted according as they are drawn on other banks in the same town, on the teller's own bank, or on out-of-town banks. After the proper records are made the checks are sent to the clearing house desk, to the individual bookkeeper's desk, or to the foreign or collection desk. In addition to the deposit book in

which is recorded each day's deposits, the receiving teller keeps a proof book. This book contains on one side the receipts from all sources-deposits, money received by express, or turned over by the first or third teller; on the other side are recorded the amount of clearing house ex

changes, checks on his own bank, foreign items, city collections, charges to other tellers and cash in hand. Of course the two sides of the proof book must balance.

94. Note teller.-The note teller, sometimes called the "third teller," has important relations with the receiving teller's department, with the department of collections, and with that of discounts and loans. He shares with the

receiving teller the duty of receiving and accounting for certain of the bank's funds. Some of the deposit items received by the second teller are turned over to the note teller for collection. Usually there are in the larger cities some banks or trust companies that are not members of the clearing house. Checks or sight drafts drawn upon these institutions must be collected by messengers of the bank receiving them. Usually payments may be made either in cash or in checks payable to the collecting bank drawn upon some bank that is a member of the clearing house. The proceeds of these city collections come into the hands of the note teller. He also receives through the correspondence department, money and checks from out-of-town collections, and all payments upon notes discounted or purchased by the bank or deposited by customers for collection. Most large banks have a "transit department" to handle out-of-town cash items.

The collection clerk has charge of such time items as notes and time drafts which are not yet due and which must be held for maturity. When the time comes for collection, however, he turns over to the note teller the items payable in the city, while out-of-town items are turned over to the corresponding clerk. The corresponding clerk sends these items by mail to their proper destination, and where there is no mail teller he receives the remittances which come in from these collections and turns them over to the note teller. Some banks have a mail teller who receives and accounts for these remittances. The larger city banks have a separate coupon clerk who attends to the collection of interest on bonds or of interest coupons. Some of them may be collected by the note teller's messengers and some through the corresponding department, but the receipts. pass into the hands of the note teller.

At the close of each day's work the note teller makes up a record of his receipts and prepares a "proof.' His cash

is turned over to the paying teller, and his checks are sorted and listed on slips to be added to the receiving teller's clearing house "exchange." Many such checks

may come in the early morning mail and in the city banks it requires a large force of clerks to get these remittances ready for the clearing house.1

95. Discount clerk.-The chief duty of the discount clerk is to take charge of the loans and discounts of the bank after they have been negotiated by the proper officers. He keeps a record of the promissory notes and acceptances offered for discount in an Offering Book, and also of the disposition made of them. He records all paper discounted in a "discount register," with the makers' names, and those of the indorsers, if any, the place of payment, the due date, the rate of discount and the amount of the loan. In many banks the offering book and the discount register are combined. The discount clerk also keeps a "tickler," a memorandum book divided into days of the month, in which the notes are recorded under their proper due dates. Great care should be taken in calculating the due date as a mistake of a single day may cause serious loss to the bank. The notes discounted are carefully filed in large wallets arranged in the order of due dates. When the day of payment arrives the notes are turned over to the note teller for collection with a proper exchange of memoranda. The discount clerk also has charge of all securities held to secure collateral loans unless the business is so large as to require a collateral loan clerk.

Collateral loans, that is, loans made upon the security of collateral, such as stocks, bonds, or warehouse receipts, constitute a large item in the business of some city banks, especially those having dealings with stock brokers.2 This type of loan requires daily and hourly watching, especially in times of active speculation. Notes given for collateral loans are generally single-name paper, and the bank's only actual security lies in the collateral. The value of the securities deposited may shift rapidly in an active stock market and the collateral clerk must see that the proper margin of security required by the bank is maintained. 1 See Chapter XIV. 2 See Chapter XVI.

The collaterals are constantly being withdrawn and others substituted, and these must be carefully scrutinized, assigned, receipted for, recorded and filed. In banks having a large business of this nature, the position of collateral clerk is a very responsible one.

96. Bookkeeping of the bank. Having described the principal departments of the bank's work, and having noted briefly the systems of record in each, we may now pass to a brief description of the general bookkeeping department, where the records of the various departments are gathered together and recorded.

The individual ledger is the principal book of record for this department. In it are kept the accounts with the bank's depositors showing the deposits, loans and collections on the one hand, and on the other the withdrawals by check. The individual or deposit ledger usually comprises several volumes in which the names of depositors are arranged alphabetically; volume one may contain the names of depositors from A to E, the next volume F to K, and so on. By this arrangement several bookkeepers can be kept at work at the same time.

The bulk of the credit items come, of course, from the receiving teller's department. After carefully listing on his scratcher the totals of the deposit tickets or slips presented by customers with their deposits during the day, the receiving teller sends the slips to the bookkeeping department where, frequently, they are entered on another scratcher and then posted to the individual ledger. A comparison of the daily proof sheet and scratcher total of the receiving teller with the scratcher total of the bookkeeping department serves as an additional check in the work of bookkeeping.

Other items credited to the account of the depositor arise from the discounting of his notes and drafts. Credit slips covering such transactions are sent to the bookkeeping department by the discount clerk and the amounts are credited to the customer's account in the same way as in the case of items received from the receiving teller. The