identical with that used in New York, a description of it is unnec

essary.

In Fig. 201 is shown the settling clerk's statement, which, as is seen, is much simpler than any before shown.

Fig. 202 shows the credit ticket, or teller's ticket as it is called in this city. This is made out and signed by the teller of the bank and given to the messenger, who deposits it with the Manager on entering the clearing-house.

Fig. 203 is the balance ticket used. This is similar to the same in use in other cities, and is made up by the settling clerk after the exchanges have been made, and is given to the Manager.

CASHIER'S RECEIPT.

No. O

MINNEAPOLIS,

ON 3/1900

RECEIVED FROM TER Minneapolis Clearing House Association,

Seventy one hundredsity four + 31/100 DOLLARS

In full for balance due this day toFirst Natt Bank

$ 7.164 37

Fig. 204 is the form of receipt given by the Cashier of a creditor bank to the Manager upon receiving the funds in settlement.

Fig. 205 is the form for the receipt given by the Manager to a debtor bank upon payment of the balance due.

Fig. 206 shows the Minneapolis clearing-house proof-sheet, which

MANAGER'S RECEIPT.

Det 3/1900

Received from Swedish Am. Pank Sixly two hundred twelve & 94/1,00

In full for balance due this day to Minneapolis Clearing House Association.

FIG. 205.

Oct 3/1900

DOLLARS.

Manager.

in that city is bound in a book instead of being a loose sheet as in the former cities.

SCRANTON, PA., CLEARING-HOUSE.

In this city, as in all the others, itemized lists of the checks are, of course, made at the bank. The totals of these are then entered upon a slip called the exchange list, which fills the place of the settling clerk's sheet used in the large cities, and before described. The messenger takes the checks and list to the designated bank, where the various messengers meet and make the proper exchange of checks. The exchange list mentioned is left at this bank, which acts as a clearing-house (the banks having their own memoranda). Fig. 207 shows the exchange list mentioned.

. From these exchange lists a record is kept daily by the bank acting as clearing-house in a book prepared for the purpose. Fig. 208 shows the form used in this book.

No proof sheet is in use here and none is necessary, as no set

tlements are made by or through the clearing-house bank. The banks settle with each other directly, paying or receiving the balance due.

This method, as is seen, is very simple, and the forms used very few, but it accomplishes the purpose, and for a city of this size seems all that is necessary.

CHAPTER IX.

GENERAL MANAGEMENT.

THE ORIGIN OF BANKING.

To arrive at an understanding of some of the underlying principles relative to the general management of a bank, let us look at the origin of banking.

The word bank is supposed by some writers to be derived from the Italian word banc or banco, which signifies a bench or counter, such as was used by the Lombardy Jews or money changers, for convenience in counting their coin. In those early days money was carried in coin, and it was necessary to exchange these moneys before passing from one country to another. Other authorities say the Italian word banco is derived from banck, signifying a heap, or common fund.

The first known bank, such as we understand it, was the Bank of Venice, which was organized in 1171. This was, however, purely a bank of deposit, for the safe keeping of money, jewelry, or other valuables. This bank made loans to the Government, and was eminently successful, but was finally destroyed by the French in 1797. For more than two hundred years this bank stood alone, then the Banks of Barcelona and Genoa were organized.

In 1609 came into existence the Bank of Amsterdam; in 1694 the Bank of England; in 1695 the Bank of Scotland, and in 1783 the Bank of Ireland.

These were all banks of deposit and discount or loan, similar to what we know them to-day.

The first bank in the United States was organized in 1781 in Philadelphia, and called The Bank of North America. This bank is still in existence, and flourishing, an example of careful conservative management. From that day to the present the growth of the banking business has kept pace with the other various interests; in fact, it has become so intimately interwoven with all the other varied interests of the country that they have become interdependent.

Gilbart says "a banker is a dealer in capital, or, more properly, a dealer in money. He is an intermediary between the borrower and