CHAPTER II.

THE SECOND TELLER.

21. The chief work of the second or receiving teller is receiving deposits of dealers. Many banks require all funds received to pass through the receiving teller's hands, thereby making his records a complete exhibit of all cash received by the bank. The plan of this set permits certain exceptions to this practice, as will be noted under the work of the third teller.

22. The Signature Book.-A person desiring to open an account with a bank, makes application to the cashier. If the cashier is satisfied to receive the account, he requests the applicant to write his name in the "signature-book." The signature-book contains columns also in which the cashier enters the applicant's address, occupation, and the name of the person by whom he was introduced. For the convenience of the bank, an additional signature is frequently required to be written upon a card, which card may be filed in a case alphabetically arranged within the counter of the paying teller. Upon the signature or signatures so preserved only are checks to be honored. If the account is opened in the name of a firm, and it is desired that more than one person shall sign checks, the firm's signature must be left with the bank in the handwriting of the several persons who are to have authority to draw.

The applicant is then supplied with a book of blank checks, a number of deposit tickets, and a pass-book. He commences his dealings by making a deposit; the funds deposited and a properly made out deposit ticket being handed, together with the pass-book, to the receiving teller.

23. The Deposit Ticket.-Banks usually require that the deposit ticket must show the amounts in coin and bills separately, as also the separate enumeration of checks or other bankable items. A special column is sometimes provided for the separation of "out of town items. Turning the pass-book face down, and placing the deposit ticket before him with a weight across its top, the teller counts the coin and bills; if found to agree with the amount on the ticket he checks off the items at the left of the amount. Each check, draft, or other item, is then examined to see that it is properly endorsed by the depositor and as approved is checked off and classified as follows: If drawn on a bank which is a member of the Clearing House Association the clearing-house number of that bank is placed opposite the item instead of the check mark; if an out-of-town item (unless a separate column is provided on the ticket) a cross (X) is used, meaning "Foreign"; if payable by a private banking-house, or bank not a member of the clearing-house the letter "O" is used, which signifies "Office," a term meaning "at a banking office in the city"; that is, the item must be sent by messenger and payment received in cash, or, more generally, by acceptance payable at a certain bank, after

which it can then be returned and entered with the exchanges for the clearing-house the following day; and lastly, checks and drafts drawn upon our own bank are indicated by the letter "B.”

[The expression "member of the clearing-house" is intended to include those "sub-banks" which, while not direct members, arrange to "clear" their items through some particular bank which is a member. The letters and symbols here used in checking the deposit ticket are purely arbitrary and differ in different banks. In some large banks where the deposits are heavy the tellers omit all such marking, and merely check each amount by drawing a line through it.] The receipts from depositors then consist of five classes of items:

I.

2.

Coin and bills.

Checks, drafts, orders, etc., payable through the clearing-house,- generally designated "exchanges."

3. Checks or drafts payable out of town.

4.

5.

Checks or drafts payable by bankers in our city who are not members of the clearing-house.
Checks and drafts drawn on our own bank.

24. The Pass Book.-The teller completes the transaction by entering in the pass-book the date, his initial, and the total amount of the ticket, which book the dealer holds in his possession as a voucher, serving as a receipt for his deposit.

25. The Receiving Teller's Records. The number and arrangement of the books kept by the receiving teller depend upon the particular routine of the bank and the classification of the deposit items. In some cases this routine requires an exhibit only of the totals of the deposit tickets, which may be kept upon a sheet of paper and when footed at the close of the day's business, gives only the aggregate of receipts from all sources. In other cases the teller keeps a cash-book or blotter ruled with a number of columns for dividing the receipts according to their character, keeping the receipts in coin, bills, out-of-town items, clearing-house items, etc., separate. The principal purpose of these records is to enable the teller to obtain a proof of his receipts and disbursements at the end of the day.

ledger, after which they are listed upon the dealers' debit book, preparatory to posting to the dealers' accounts in the dealers' ledgers.

26. Listing. The teller assorts the checks and drafts into four divisions: City; Foreign;

Clearing House; and Bank. The clearinghouse items are handed to the "settling clerk," who is usually the first assistant of the receiving teller and has charge of the clearing-house rack. The process of preparing these items for delivery at the clearing-house will be hereafter. explained in the description of the Clearing House.

Separate lists are made by the teller or his assistants of each of the three remaining items. The process of "listing" these items is here suggested, and the aggregate amount of each class is given, which total amount is entered in

the receiving teller's proof at the end of the day. After being listed, the "City Office" items are handed to the note teller; the "Foreign Office" items to the collection clerk; and the checks on our bank to the ledger-keeper, who charges them to the dealers' accounts. It is important that the checks on our bank or "Home Debits"-as they are commonly termed-should be listed immediately and charged to the dealers' accounts without unnecessary delay that the dealers' balances. may be known at any moment.

27. Deposits from Banks.-Deposits from banks, bankers, and individuals at other points. sent either by mail or express properly come within the jurisdiction of the receiving teller, and have been included in the receiving teller's proof for this set. The description of the mail and its treatment has, however, been deferred until later, that the student may keep clear in mind the simple requirements of the second teller's department.

28. The Proof.-At the close of business each day, when the receipts have been received. from all sources, the teller prepares a proof.

2.

Amounts forwarded by banks for credit, consisting of items similar to those deposited

by dealers.

3. Remittances from banks in payment of "foreign office" items previously sent to them. for collection.

4.

5.

Checks and drafts on other banks which have been cashed by the paying teller.

When checks and drafts are received in deposit for which a charge is made for collecting, the amount so charged is deducted from the deposit ticket; this deduction must be then credited under Exchange account.

The debit side represents the character of the receipts and their distribution:

I. Gold certificates, legal-tender notes, National bank notes, and silver certificates.

2. Gold, silver, and copper.

3.

4.

tellers.

Checks on our bank received in the deposits which are to be charged to dealers.
Exchanges to be sent to the clearing-house received in deposits and from first and third'

5.

Checks and drafts on private bankers not payable through the clearing-house.

7. Coin and bills transferred to the paying teller during the day. (Numbers 1 and 2 are transferred at the end of the day.)

[Additional items will sometimes be necessary on the credit side, for instance: "city office" items are presumed to be immediately collected in cash; should any of these items be held over, for any reason, the amount must necessarily be

«credited to offset the previous debit; likewise, should any of the exchanges prove irregular in endorsement or for any other -cause should not be sent to the clearing-house, a corresponding credit would be required.

In medium-sized banks, “city office” and “foreign office" items are usually included in the amount charged to the third teller; the distinction is largely a matter of phraseology, but it is well for the student to be familiar with these terms as ordinarily used in large banks.

Provision also must sometimes be made for “differences"; while amounts to be credited or charged to the other tellers will depend upon circumstances. Cashier's checks and certified checks on this bank received in the deposits may be charged to the third teller and not included in "Checks on Bank."]

After first classifying the deposit tickets from the following memorandum of transactions for the first period, as previously explained (25), the student will prepare a proof on paper, supplying the amounts of Credits A-L and M-Z from his own work, and then foot the columns as indicated in the form illustrated.

MEMORANDUM OF TRANSACTIONS.

29. First Period.-October 2-Received the following deposits, as per tickets:

J. H. Newman, $1292.11....Cooper, Hewitt & Co., $64725.71.... Henry Maillard, $6319.89.... Lord & Taylor, $589.09....A. Iselin, Jr., $5481.75.... New York Rubber Co., $10429.16....Otis Brothers & Co., $2239.98.... Denny, Poor & Co., $5914.50....Elliot L. Butler, $1950.25....J. Selwin Tait, $4599.40. C. H. Pine, Prest., $470.55.... William Clark, $2610.55.... H. Mills, Treas., $284.31.... Andrew McLean & ·Co., $8270.70....G. W. Adams, $2842.17.... Bulkley, Dunton & Co., $3136.97.... Pennsylvania R. R. Co., $24949.14....Chas. H. Baker, $2694.57....Steinway & Sons, $7861.30....H. H. Swasey, $20979.81....G. G. Haven, $1295.60....E. R. Durkee & Co., $59368.45.... Redmond, Kerr & Co., $25484.79....Gilbert Manufacturing Co., $924.50.... Edward King, $967.55.... Morton, Bliss & Co., $13890.60....Western Electric Co., $84963....Geo. C. Flint Co., $6640.59....Knickerbocker Trust Co., $210790.64....United States Leather ·Co., $170950.37.

30. Second Period.-November 1-(In this and the succeeding periods the student will not prepare a proof, but will list the names of depositors as in the first period)-Received the following deposits, as per tickets:

Henry Maillard, $12400.... Lord & Taylor, $17291.83, less exchange, $2.61 (exchange will be deducted in each case and the total carried to the credit of Exchange account from the general credit book)....J. II. Newman, $162.38....C. H. Pine, Prest., $3183.20....J. Selwin Tait, $2439.98, less exchange, 64c.... Elliot L. Butler, $4572.90.... Denny, Poor & Co., $7840.26....Otis Brothers & Co., $3741.93.... New York Rubber ·Co., $14036.20.... A. Iselin, Jr., $5571.84....G. G. Haven, $13170.09....H. H. Swasey, $1897.90.... Pennsylvania R. R. Co., $36238.17....Bulkley, Dunton & Co., $2700....G. W. Adams, $11940.21, less exchange, $4.92.... Andrew McLean & Co., $17948.63.... H. Mills, Treas., $9145, less exchange, $1.38.... William ·Clark, $6550.12 ... Western Electric Co., $95600.... Morton, Bliss & Co., $39720.68.... Edward King, $4321.50 ....Gilbert Manufacturing Co., $3190.85... Redmond, Kerr & Co., $38797.71.. ....E. R. Durkee & Co., $75400.... Knickerbocker Trust Co., $2763450.12....Geo. C. Flint Co., $15748.25.... United States Leather Co., $1186371.38.... John L. Riker, $17000....Samuel Sloan, $35400....Cooper, Hewitt & Co., $78240.50.... Chas. H. Baker, $6500, less exchange, $7.36....Total Exchange credit, $.

31. Third Period.—December 1-Received the following deposits, as per tickets: Pennsylvania R. R. Co., $35127.06.... H. H. Swasey, $2908.01....G. G. Haven, $14281.10.... A. Iselin, Jr., $6682.95, less exchange, $3.94.... New York Rubber Co., $23147.31....Otis Brothers & Co., $2630.82.... Denny, Poor & Co., $8951.37. Elliot L. Butler, $5683.01...J. Selwin Tait, $3328.87, less exchange, $1.21 .C. H. Pine, Prest., $4294.31. J. H. Newman, $750.29. Lord & Taylor, $16182.74, less exchange, $7.38 Henry Maillard, $11925.38....Chas. H. Baker, $5627.91....Cooper, Hewitt & Co., $67139.49....Union Mortgage Co., $35000, less exchange, $14.30....W. F. Wakeman, $5740.... United States Leather Co., $175260.27. ....Geo. C. Flint Co., $16859.36....Knickerbocker Trust Co., $252349.01.... E. R. Durkee & Co., $76324.18.... Redmond, Kerr & Co., $41686.25....Gilbert Manufacturing Co., $4281.96.... Edward King, $5432 61.... Morton, Bliss & Co., $41200....Western Electric Co., $87218.39....William Clark, $7500.... H. Mills, Treas., $11260, less exchange, $4.29.... Andrew McLean & Co., $25237.68....G. W. Adams, $13800.29 ... Bulkley, Dunton & Co., $21950, less exchange, $2.39....Steinway & Sons, $45000.... Total Exchange credit, $.

32. Fourth Period.-December 31-Received the following deposits, as per tickets:

Steinway & Sons. $41725.84.... Bulkley, Dunton & Co., $19849.50 .... G. W. Adams, $17500, less .exchange, $3.78.... Andrew McLean & Co., $34148.79....H. Mills, Treas., $5400, less exchange, $4 19....

....

William Clark, $3140.... Western Electric Co., $96129.45. Morton, Bliss & Co., $62798 75.. Edward King, $6243.72....Gilbert Manufacturing Co., $15972.18.... Redmond, Kerr & Co., $25100....E. R. Durkee & Co., $42728.95.... Knickerbocker Trust Co., $271000....Geo. C. Flint Co., $24748.25.... United States Leather Co., $181750.25.... W. F. Wakeman, $3127.40, less exchange, $2 76... Union Mortgage Co., $47238.20, less exchange, $17.48 ...Cooper, Hewitt & Co., $45210.12....Chas. II. Baker, $2925.40, less exchange, 97c .... Henry Maillard, $12210.50.. Lord & Taylor, $21758.76....J. II. Newman, $2160.54 ...C. H. Pine, Prest., $2100, less exchange, $2.98....J. Selwin Tait, $5725....Elliot L. Butler, $2149.75.... Denny, Poor & Co., $14708.91....Otis Brothers & Co., $7945 90.... New York Rubber Co., $28500.... A. Iselin, Jr., $17620, less exchange, $7.55....G. G. Haven, $35000....H. H. Swasey, $1000.... Pennsylvania R. R. Co., $42140.07 ....Total Exchange credit, $_

....