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DEPOSITED BY

J. S. Brown

IN THE

Traders National Bank
Centre City,
Sept 19 189.9

PLEASE LIST EACH CHECK SEPARATELY.

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The last item of the cash, exchanges $6,058.94, is the total of the exchange checks received from the other banks, as will be seen by a reference to the last items on each of the columns of exchanges. When the totals of checks coming from other banks through the exchanges exceed that against those banks, the total is placed in the respective columns in red ink. This is shown in the columns of exchanges for first and second, the former returning $3,830.52 and the latter $802.07.

The columns representing individual credits and individual debits can be subdivided where more than one individual ledger is used; for instance, one column representing the items for the A to K ledger and the other the L to Z ledger. In fact, many more subdivisions can be made of other items, such as the exchanges, to suit the case, the principle remaining the same.

Where one book is used it is generally made with plenty of space, the pages being about eighteen inches long by twenty inches wide. Where two books are used the cash settlement portion is generally left off, the books being used simply as a proof for items, and except in small banks this is preferable. The debit items being the most numerous the pages of that book are generally about twenty inches long by sixteen inches wide, while the pages for the book containing the credit items are about seventeen inches long by fourteen inches wide. The blue cross ruling is made with a space of a trifle over one-eighth of an inch.

Where a receiving teller keeps a deposit scratcher, as mentioned before, in which are entered the name and amount of each deposit ticket, the column in the proof book styled individual credits may be done away with, as the entering of the items again would be unnecessary duplication.

I think the use of the deposit scratcher is preferable, as the items can be more easily identified when necessary.

THE GENERAL LEDGER.

We now come to one of the most important desks in the bank, the general ledger desk. In this ledger is kept a condensed record of the whole business of the bank. In fact all the other desks may be considered auxiliaries of the general desk, as the results of the day's business that pass through them are carried in aggregates to the general ledger.

In this ledger are kept the capital stock account, all the various profit accounts, such as interest, exchange and discount; all the accounts representing the expenses of running the business, such as expense, salaries, interest paid, exchange paid, discount paid, rent, taxes and insurance; also furniture and fixtures and the profit and

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loss account. We will also find there the dividend account, the account showing the indebtedness of the bank to its depositors, called the individual deposit account, also the certificate of deposit account, the certified check account, the Cashier check account, the clearinghouse due-bill account, the accounts showing the indebtedness of the bank on account of money borrowed for its benefit, either upon paper of others for which it has made loans, which is called rediscounting, and is kept in a rediscount account, or upon paper of its own, signed by the directors of the bank, and called bills payable, and kept in an account of that name; the account showing the circulation of the bank, one showing the amount of bonds that have been deposited with the United States Treasury for the circulation, and one showing the premium on the bonds, the amount owing to the

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bank on account of loans of various kinds, which in some banks are kept in separate accounts, such as demand loans, collateral loans (demand), collateral loans (time), and bills discounted representing the usual discounted time paper. Most banks keep only one account representing all their loans and discounts, which is kept under the name of bills discounted or notes discounted, but I think it will be found advisable to have a separate account for the demand loans.

The accounts with the various correspondent banks and with the reserve banks are kept on this ledger, also the cash account of the bank, in aggregate, and the redemption fund account.

In large banks it is customary to keep the accounts with the various correspondent banks in a separate ledger, or ledgers called bank ledgers (they are often subdivided alphabetically). A represen

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tative account, called bank ledger, is kept upon the general ledger, just as a representative account for the individual or deposit ledger is kept, called individual ledger. And while being generally considered a part of the general ledger department, they are in reality a separate department, as much so as the individual ledger.

As in most instances these accounts are kept on the general ledger proper, or books auxiliary to it, I will treat the subject in connection with that department.

From the records of this desk, therefore, the officers, directors or stockholders of the bank should be able to obtain at any time a statement of its assets and liabilities, showing clearly what the condition of the bank is, and from its records, together with detail from the paying teller's desk, and amount of overdrafts from the individual ledger, is made up the reports of condition that are called for by the Comptroller of the Currency five times a year.

The system to be employed, and the necessary number of books for this department, depend largely upon the amount of business done. In a small country bank the system is quite simple, the necessary books being simply a journal (called cash book by some), ledger and statement book. In banks doing a larger business, espe

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