Professional Documents
Culture Documents
By
J. F. EBERSOLE
With Acknowledgments to the University of Minnesota and
Minneapolis Chapter of the American
Institute ok Banking
Copyright 1918
by
American Institute of Banking
CONTENTS
PRELIMINARY SECTION
Chapter Pf
I. Elementary Essentials 5
CYCLE SECTION
405445
A successful banker is composed
of about one-fifth accountant, two-
fifths lawyer, three-fifths political
economist, and four-fifths gentle
man and scholartotal ten-fifths
double size. Any smaller person
may be a pawnbroker or a promoter,
but not a banker.George E. Allen.
ELEMENTARY BANKING
CHAPTER I
Elementary Essentials
HE beginner in a bank usually discovers
that he does not have at his command a
.L sufficient knowledge of commercial docu
ments and banking practice. Later on, also, he
often realizes that he did not start out with the
best principles of personal conduct or a proper atti
tude or view of his own job. It is the object of this
book to help the beginner in acquiring these neces
sary things at the earliest possible moment. He
may then become a very efficient helper within
a short time. The managers of banks who are
obliged to train beginners also find this to be a
problem of some difficulty and considerable ex
pense. It has been suggested that the training of
the average beginner costs a bank a total of about
two hundred dollars in the form of unearned
wages at the start, valuable time consumed by the
officers or men in the bank who supervise the in
struction of beginners, losses through errors due
to ignorance, and waste due to inefficient utiliza
tion of time and energy.
SPECIAL INSTRUCTION FOR BEGIN
NERS.While the standard study course of the
American Institute of Banking is recognized as
5
6/>. : ;.*-: ^LEMEN^ARY BANKING
WORK
policy
Dof
who
the
direct
IRECTORS CLERKS
who
do
detail
the
classi
work,
the
Sbank
TOCown
whoKHOLDERS C&
(or
Secretary)
Tashier
reor
asurer
ECxoaminatieon the
bank
manage
CFFICERS
who
CDoimsciotunet CEoxmeciut ieve
ACsasihsitearnts
Vice-President
fied
opposite
bank
the
President
viV g ao,a,m o
ELEMENTARY BANKING 21
PRACTICAL EXERCISES
1. What are the principal functions of banking?
2. Enumerate and define the principal instru
ments of banking.
3. What are the distinguishing features of (1)
National banks, (2) State banks, (3) trust com
panies, (4) savings banks?
4. Primarily, who is responsible for the admin
istration of a bank?
5. Define the duties of bank messengers and
discuss their opportunities for benefiting their
employers and themselves.
CHAPTER II
Elements of Contracts
DEFINITION OF CONTRACT.A contract
is an agreement containing a promise that is en
forceable in law. "Agreement" shows that there
must be at least two parties, one of whom has made
an offer which the other has accepted. It must
contain a promise to do something. It must be a
promise that can be enforced in a court of law
that is, if one party refused to do what he had
promised the other can go into court and compel
him to do so or get damages. Not all agreements
containing promises are enforceable in lawthat
is why we say that this enforceability is necessary
to make a contract. For instance, agreements made
jokingly, and social agreements, cannot be en
forced in court. The motives which caused the
parties to make the agreement have nothing to do
with its enforceability. Contracts may result from
words or acts.
IMPORTANCE OF STUDY OF CON
TRACTS.Practically every commercial trans
action we can engage in rests on an agreement
between parties. Arrangements for credit; prom
ises to do future acts; endorsements on bills and
notes; agreements to pay another's debt; a bank's
promise to pay checks drawn on a checking ac
count; insurance policiesall of these are examples
33
34 ELEMENTARY BANKING
George Smith j L. S.
ELEMENTARY BANKING 35
July 2. 1917.
Thirty days after date I promise to pay John
Smith two hundred dollars, for value received.
(Signed) RALPH RICHARDS.
AN OPTION AGREEMENT
ASSIGNMENT OF CONTRACT
DISCHARGE BY RELEASE
PRACTICAL EXERCISES
1. Define "express" contracts and "implied"
contracts.
2. Distinguish between "void" and "voidable",
contracts.
3. What is the meaning of "ultra vires"?
4. What is an option?
5. Name the kinds of contracts required to be
in writing by the Statute of Frauds.
60 ELEMENTARY BANKING
BANK ETHICS
61
sight"
"at
ishould
Before
to"
due
is
be
"pay
words
the
time
draft
when
nsaserted
the
jtoj
Pay
2 DI
ollars,
g
1
Bank
1
National
FiSfft
Thff
*.
of
order
DRAFT.
CF
FORM
SPECIMEN of
the
charge
and
ato
csameount
received,
Value
date."
"30
after
days
or
|
PA
|
19
iCO
I-oata.
ELEMENTARY BANKING 63
ST. LOUIS, MO 19
CONFIRMATION.
DATE 19
TO THE NATIONAL BANK,
DEAR SIRS:WE HEREBY CONFIRM YOUR ACTION IN
PAYING THE ABOVE DESCRIBED DRAFT.
YOURS TRULY,
DRAFTS WANTED
The National Bank
Bought by
PAYABLE TO THE ORDER OF ON WHAT CITY AMOUNT
ELEMENTARY BANKING 71
191
Your* truly,
Cashier.
ELEMENTARY BANKING 75
EXAMPLES OF ENDORSEMENTS
A SAMPLE ACCEPTANCE.
i
ELEMENTARY BANKING 83
PRACTICAL EXERCISES
1. Define "draft" and "bill of exchange."
2. Draw a negotiable draft.
3. What instruments should be protested to
charge persons secondarily liable?
4. Distinguish between "special" endorsements
and "restrictive" endorsements.
5. Distinguish between "qualified" endorse
ments and "conditional" endorsements.
CHAPTER IV
NOTE.
PSPECIMEN
OF
FORM
ROMIS ORY
*1Dollars
ELEMENTARY BANKING 87
S First
Payable
office
of
atP National
The
Bank_
o.
p. P. O
Montana
demand,
waive
of
notice
and
nprotest
on-payment.
NOTE.
SFORM
OF
PECIMEN
19
Montana,,_
ithereon
nat..
terest
with
of~
order
due
When Number
ELEMENTARY BANKING 89
promise
to Dollars, without
dhreceived,
for
eoflraas
value leacwtaeitrtaohln,
deposited
chaving
security of
holder
promise
nNote,
this
uoat
nt-hpupon
awhich
the oerfiorzmeance the
mBdwprivate
ato
either
sell; eitoormukahrenoidu'tisyn,g of
Board,
public
sale,
rat rihuoroterchteohuedtnrs, much
this
Note,
due
debt
the
wtnotice,
pfand
apply
payment tbe
this
of
and
Note,
the
all
hpayment
to
asorenmay
rxecpesonfasrey,sy
1S-
holding
charges,
and
dfor
refsany
ipcoinesnicbyl.e
date
after
SIMPLE
FORM
COL ATERAL
CF
NOTE
PPa..
hiladelphia,
FIRST
NATIONAL
BANK
Payable
at
of..
order
the
to
pay
ELEMENTARY BANKING 99
COLLATERAL AGREEMENT.
No
NATIONAL BANK
United States Depositary
Boise, Idaho
no-
national BANK
United State* Depositary
Boise, Idaho.
RECORD OF COLLATERAL
No
NATIONAL BANK
United States Depositary
Boise, Idaho.
Record of Collateral
Receipt given:
Remarks:
Date released:
Receipt taken up:
To whom and how delivered:
Remarks:
ELEMENTARY BANKING 105
w
H
09
o
H
S3
o
o
01
I
2
w
o
w 5
a-
09
5
a
PRACTICAL EXERCISES
1. Define a "promissory note" and draw a
specimen.
2. Enumerate the various kinds of money used
in the United States and state the legal tender
qualities of each.
3. What is an accommodation note?
4. Distinguish between "interest" and "dis
count."
5. What is the due date of a note dated Oc
tober 10th and payable in thirty days?
6. What is a chattel mortgage?
7. A makes and delivers a note for $100 to B.
B loses the note. C finds it and sells it to D, who
is an "innocent purchaser." The note is not paid
at maturity. D sues A. Is A liable?
CHAPTER V
WITH
National Bank,
Richmond,Va., 19
The depositor using this ticket hereby agrees that all items payable
outside of Richmond shall be forwarded by this bank as agent for the
depositor at the depositor's risk; that this bank shall not be responsible
for negligence, default or failure of sub-agents, nor for losses in the
mails; that this bank shall have the right to charge back to the de
positor's account any item for which actual payment is not received;
that items may be sent direct to the banks on which drawn without
waiving any of the above conditions, and that items on Richmond are
credited subject to actual payment through the Richmond Clearing
House.
Dollars Cents
NATIONAL BANK
OF PITTSBURGH.
DEPOSIT MADE BY
Dollars Cent*
CURRENCY
SILVER
GOLD
CHECKS AS FOLLOWS
In Pittsburgh, name the Bank;
out of town, name the place
ELEMENTARY BANKING 121
Address
Business
Introduced by Accepted by
Date 191 Remarks
face
Signature of person
authorized to sign checks:
I hereby certify the foregoing is the signature of
back
122 ELEMENTARY BANKING
1
&
|
5 ...191Q face
o
Name
Address
Business
Introduction
Came from
Remarks
Account accepted by
back
ELEMENTARY BANKING 123
Vice-President
Vice-President
Secretary
s Treasurer
j
o
O face
o
Name
Address
Business
Introduction
Came from
Remarks
Account accepted by
back
124 ELEMENTARY BANKING
DEPOSITED BY
in
The National Bask of New York.
Cashier
Assistant Cashier
Capital
Surplus
Undivided Profits
back
126 ELEMENTARY BANKING
STATEMENT OF ACCOUNT.
Total Credits
Total Debits
Vouchers ned ss per above list Balance.
Failure to report errors prior to the 20th of the month next after the receipt of
this statement will be considered evidence of the correctness of your account.
ELEMENTARY BANKING 127
Statetown 191
Please sign this voucher receipt and return same to us.
No.
To NATIONAL BANK.
In Presence of:
Dollars
National
First
Bank
Statetown
5'n
of
No.
.191
CHECK
STUB
REOWNIG
FORM,
ACOK.
IN
Statetownv
order
of...
the
Pay
to
For..
Centi
.191. Dol an
-No..
Brought
Bal.
Forward DAmi.
eposited*
Check. .
Am
Amt. FBal.
Cai'd
otM. .
Total
To... For...
ELEMENTARY BANKING 135
First
National
Bank
of
Statetown
TO
BE
CHARGED
TO
MY
ACCOUNT
ITSELF.
IN
THE
BANK RIN
EFROM
CEIVED
PERSON
Statetown
191.
COUNTER
FOR
USE
ONLY
NOT
NEGOTIABLE (Then
Went
PU)
Red
ril ed
ELEMENTARY BANKING 137
CASHIER
tetown
9
1
No..
Statetown,-Q First
National
Bank
of
Stab
59-16
CLEARING
HOUSE
BANK
New
York
the
order
PAy
toof_
To
the
1-20
ELEMENTARY BANKING 139
.19_IMO._ The
American
Bankers -DOLLARS
i
Association
TREASURER
FORM
FOR
VOUCHER
CHECK. ABANKERS
MBANK
ERICAN
NEW
YORK.
ORDER
THE
TO
PAY
OF- full
In
VNo_
of
poauycmhenrt 1-160
NEW
YORK
Paatyable
VNO-
OUCHER
Soand
Aunpteralonved
ELEMENTARY BANKING 141
Ten Dollars.
JOHN SMITH.
Dear Sir:
According to our books your account appears over
drawn $ Please advise or call on us
at once.
If an immediate notice is given that your account
is overdrawn, do not misconstrue the haste. It is a
wise provision to detect forgery, raised checks or
mistakes.
Respectfully,
.. , Cashier.
REMARKS
146 ELEMENTARY BANKING
PRACTICAL EXERCISES
1. Of what use are deposit tickets to a bank
after deposits are made?
2. Define a "check."
3. Define a "voucher check" and explain its
purpose.
4. If you were a paying teller, what precautions
would you take before honoring a check presented
for payment?
5. A check drawn by A is presented for pay
ment. The bank has knowledge of A's death.
Should the check be paid?
6. When does certification of a check discharge
the drawer?
deposited
Bank
this
in Dollars the
this
of
Certificate
properly
endorsed,
with
return
upon
interest
at
First
National
Bank
Statetown
of ^RN
if
left
months.
cent,
per
annum
SCEPOF
RDETCIPFOIMCSEAINTE.
ha- PSATO
TWO
UWEEKS
YNBMOJETNICT E.
Statetown,
19-
payable
the
order
of...
to
" M w ^ >n \o co o
tSoi
Miopug
s5.
M 2
Ie
ELEMENTARY BANKING 155
(probably
enclosing
duplicate
of
the
letter
given
Mr.
Henderson)
MinMinn.,
June
e30,
a1905.
polis,
giving
and
brief
physical
deaof
Mr.
sHcernidpetrison).
TRALETTER
VEOF
CREDIT.
LERS*
Very
truly
yours,
Mr.
Hesignature
ndaethis.
rcsonm'psanies
and
charge
the
sum,
with
to
advice.
sameus,
(Sof
George
iHgenadteurseon).
Messrs.
Duval
and
Lafronte,
Paris,
France.
Gent:lemen
ELEMENTARY BANKING 161
adraw
hereby
We
National
Union
the
uBank
Chicago,
of
to
tyou ount Tof
honorize Bowdoin
London,
Street,
for
182
of
Peterson,
Ralph
111.,
Chicago,
acto
up Two
drafts
aby
Sterling
Pounds
hamount
voganayour
uislraenbgldaete three
shipment
against
sight
months'
(3)
Chicago.
from
silk
of
Hongkong
at
to Bills
made
for
Lading
of
shipments
be
order
such
the
must
to
out MUST
CBE
LADING
OF
NILL
ONE
INVCICE
AND
ONSULAR NSENT
DIRECT
DRAFTS,
BANK
THE
BCO
BANKER
OR
EGOTIATING
Chicago,
June
1S3.
14,
Union
Nspecified
Bank
ocredit
unless
Chicago,
this
in
of
atheirowniasle
UNION
NATIONAL
BANK
OF
CHICAGO
COLETTER
MOF
CREDIT
FRONT.
~ERCIAL
Foreign
Department
IStates.
ethe
in
United
nfsuercatnecd
Messrs.
Ford
Gow,
and
Hongkong.
2,000
Sterling.
Credit
No.
462. Gen:
tlemen
II
WRM z > ->z z
EnWill
The
Appear
dBack.
the
All
Except
Letter
Above
Names
orsonements
ddrafts
othe
Union
drawn
cmust
The uaon
mcenomtpsany
remaining hereby
We
with
bona
virtue
fide
drawn
drafts
all
that
holders
by
of
agree this
credit,
and
awith
in
cthe
swith
above
shall
due
tmeet
terms,
oirpduanlcaeted honor
pthe
office
NrBank
Union
Chicago,
of
eaat
upon
steinotantailon B.
N.
Drafts
drawn
credit
this
under
they
"drawn
that
Let
state
must
are
AT OFFICE,
THE
TO
UNION
NATIONAL
BANK
CHICAGO,
OF
CHICAGO
ITS WITH
NOTICE
TO
NBANK
UNION
THE
CHI
OF
ATIONAL The
amount
of
nwith
draft
each
of
together
date
negotia
such
egotiated, Parties,
the
of
Amounts,
Dates
of
Terms
and
ITPthe
ranvntsoiaclutvlieaordn
UNION
NATIONAL
CHICAGO,
OF
BANK
Will
Probably
PThis
Be
BLarger
The
Doing
Banks
Have
ruisnitneds.
Regular
Forms.
Peterson,
and
the
Send
Ford
This
Will
Importer,
to
if
London,
drawn
nprior
and
September
13,
eN13.
to
gotiated 2
Gow,
Exporters
the
Hongkong.
in
tion,
be
ethe
back
must
hereof.
ndonorsed Credit
of
No.
ter
N13."
dated
462,
June
14,
By
NChicago,
Bank
of
aLondon.
tional
CAGO'S
LONDON
OFFICE.
of
Ethe
in
Printed
Bottom
Various
of
CMoney
Are
Foreign
qouoninvtarliensts
T(A.B.A.)
ARCHECK
BANKERS
SISSUED
BY
AVMOECLIREAITRCISAO'N
WILLBANKNAMEOFIMUINQ THISSINPBERIANCTED
IN-BCTHEONLYRWATS-OUAEHMNIDPSORKQALH-EUN.YRP'SO-D
NO.WCOTBUHTOATSNPWANYIYEAMRLNTWYItOMHERSU!DN.T,
Ammran
8attk*ra
ABfiflriatiott
COMPANY
TRUST
BANKERS
WEHAFTETHEPSPAYANDWOCRNAHIEDPGMBOLEIRTYNG. NTEANYOFHONTHEOURCGBORATEISMPUOCTNGEDFHK.DS
CmHwIuMUI1 CAOMNPKAENRY.S
TRUST
N-WYCOIRTKY Cheques.
Such
ORDER
THE
OF.
PAY
TO
COUNT-RSIGNATUR-
ELEMENTARY BANKING 165
OKSK oounm
01 uK
SLASS
Per.
WEIGHT
DArticles
of
Marks
Special
and
escription
Per.
tL.sBill
ecthis
date
Othe
of
inandlaEtorufsCondibEfgIjecfaiVntcEogsntDa,l
issue dfrom
border,
in
good
epasrcaslxopciaberwpd,tnynoted
the idcandmuofponeadskcasnirtkoaegniwtoedn)s,dwhich
(below, Cif
said
itsousual
of
place
road,
etattoscahlmoeigapnrvwatenirsoeny, said
daofetonsrugtonoproporanyasitnrueahitelodrn.,ytime
mtheall
cItis
each ofpallsaid
iand
deachnererty,otoparty
in theetoourhnbioredfvotujnipehrtdcomenrytsd,h(cyand
attsanyoreasirvutneaistroend,psshall
thathwcall
be back
which
by
agreed
soie,cntohronmdtareieaslpouindlfeti)sn,rgd this
athe
for ofpunrdoreprnesdredlybof
Bill
ORDER
eOriginal
required
be
sshall
The
Lading IdBill
this
by
will
Lading
cthe
efore
neonot
psrvlpoeiprcvetreidrtoyn.lading
be
pby
eunless
ois
this
of
bill
law
nrdonoriomgvirsitdenieaodln
191
Dof
Not
PAe(Mail
forudlripvoesreys)
Ship er's Agent'
No.. (No
WEST
RAILROAD
COMPANY.
EAST
AND .State
County
of of
County
State
Car
No.
Initia.l
Fw_
Fits
I
Nlass
Lbs.
Cents
in
100
toper
is
OBILL
LADING
OF
ORDER
RIGINAL
NEGOTIABLE
LADING.
OF
BILL Nlass
HI
IF
Nlass
IF4ta
IFRait
11
IFRile
H
Nlass
H
IF
writing
in
given
shipper.
theor
by
from.
Freight
of
Rate
The
tils
IF
CORDER
OF.
otonsigned
Nlau
U
IF
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IF1st
and
as igns.
his
IFJmi
1st Destination
Notify Route
at At
If
charges
be
toare write
pstamp
rorepaid, of
in
apply
prtoepayment the
charges
prop
on CAgent
asorhier
aherec(The
sikgnoawtlure
predges
theaempoauindt.)
only
Agent
Shipper ship
and Oyhotomust-rinbdpsmielgrni/tegsdO'c'The
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form
'of
In
used
sbe
caonly nofthesrwoutommustienatasrupongydpenit-pgcdbruneosa'iguldsr:
P"To
be
rhere,
epaid." hdeerty
srceroinb.ed ACharges
dvanced:
DETACH
"HEAILGPEVNETRS.Y
DMUST
BEFORE
SLIP
STHIS
TO
LADING
BILL
OF
Bill
(This
is
Lading
signed
ofsiand
Sbetoahrismpuei.enr)g
cby
the
Agent
$
Received Per
$
Order
L"pdbethebnmustaedqolfupiroesvnretgdlry,*/
of
reBill
NHENK NOLUMN
01 Man
SUM
Per
WEIGHT
DArticles
of
and
Marks
Special
escription
Per.
178 ELEMENTARY BANKING
190..
Dear Sir:
We have received your favor of.
enclosing Draft with Bill of Lading attached on
COMPANY
RAILROAD
WEST
AND
EAST
scharges.
the
and
receipt,
this
of
urpayment
ender
J..
We hawken,
N.
ELEVATCR
RECEIPT ELEVATORS
GRAIN
SGRAIN
ALL
THISUTBOJREDCT CC
IS
TO ORNEDSICTRIOBNESD THE
THE
POF TARIF S
OUR
WITH
FILED
CTER
order
of...
hereon
the
only
to CSTATEOS ISERIOCNE.
Received
in
Store
from..
No.
7000 of
ELEMENTARY BANKING 191
WNOAN-RNEGHOTIUASBLE
RECEIPT
PNCNDAUCSKBAGERS NReceipt.
Weargeohtoiuasbele
CGOODS
TO
SAID
DTHE
BELOW.
EOSNCTRAIBIEND
MAIN
STREET
100 NewYork,
HSPERCIEFOINED.
CEX
OF
UNKNOWN)
ONDTIETNIOTNS
STORAGE
PER
SONTH
LABOR
PER
OUT
AND
IN
SARKS ADVANCES
SADE
FROM.
No.
ELEMENTARY BANKING 193
PRACTICAL EXERCISES
1. Distinguish between "Cash Discount" and
"Trade Discount."
2. A, who lives in Chicago, sells goods to B,
who lives in Atlanta. How may A secure payment
simultaneously with delivery?
3. What are the essentials of a warehouse
receipt?
4. Distinguish between an "order" bill of lading
and a "straight" bill of lading.
5. To whom may a warehouseman properly
deliver goods on storage.
6. Describe the liability of express companies
for loss of packages.
CHSSENT
ANDj
WILLON
DWHICH
THEORDER
OF
TO
PAY
BEPELARCIVEGFOIRENSD
ATROPAROAUGNIE. FAND
Received
CITY,
ON
WSIN
YORK
NEW
ST.,
MAIN
100 (P.TEE
OACLOKNOATWGEINSGTS
COMPA19,
WARPAOUNI
WEST
APA
EAST
DESCRIPTION
SA
EAST
WAREHOUSE
AND
WEST
COMPANY
WNEAGROETHIOAUBSLE
RECEIPT
KCD ROF
SEURCEINPDTE.R
THE
THIS
DSAID
BELOW.
CTHE
TO
GOODS
EOSNCRTIABIEND
100 York9
STREET
MAIN New
PACKAGES
CUEX..
OF
ONKDTINEOINWOTNS)
NUSBER
SPER
SONTHTORAGE
APERND
C
LABOR
OUT
SARKS ADVANCES
SADE
FROM.
No...
CHAPTER VM
POWER OF ATTORNEY
i
a* ELEMENTARY BANKING
PRACTICAL EXERCISES
1. How is an agency created and terminated?
2. What is a power of attorney?
3. Of what advantage is a written contract over
a verbal one?
4. What is the general rule for determining
whether a partnership exists?
5. Why is it important to record a mortgage?
6. If a member of a partnership dies, does his
executor become a member of the firm?
7. Distinguish between "preferred" and "com
mon" stock.
8. For what reasons may a corporation be dis
solved?
9. Define "bill of sale," "lease," "deed."
10. Distinguish between "guaranty" and
"suretyship."
CHAPTER IX
Bank Departmentization
DUTIES AND RESPONSIBILITIES.Sub
ject to governmental authorityNational or State,
according to their respective chartersthe man
agement of any bank is vested in its Board of Di
rectors. Such directors are elected by the stock
holders. The directors elect the officers, a presi
dent, a vice-president, cashier and assistant cashier,
who are the executive heads of the institution
and are charged with the duty of administering
its affairs. The number of vice-presidents and
assistant cashiers may depend upon the size of the
bank. The directors may also appoint any com
mitteessuch as a discount committee and an ex
amination committeethat the business of the
bank may seem to require. According to the char
acter of their duties and responsibilities, bank
officers and employees may be classified as (1) ex
ecutives, (2) tellers, (3) bookkeepers. Whenever
it becomes necessary, on account of volume of busi
ness, to divide the work in a bank into divisions,
each employing a group of clerks, such divisions are
organized into departments having a department
head, who is usually a teller, a head bookkeeper, or
perhaps a junior officer. In the very large banks
the executive staff is itself organized into groups,
and there may be a vice-president and one or two
225
226 ELEMENTARY BANKING
$206,249.95
STTYPICAL
RETCLELIEVMRIE'NSGT
Ideposits
$n1d5i2v,i1d3u6a.l07
sold)
(drafts
teller
exchange
2,500.00
Receipts
from Otransit
checks
4due7tto
-p,oa2fr0-t3om.we1n0t
$Checks
icharged
ledgers
9nto
8di,v4i2du.al10
charged
Drafts
ledger
1general
0to
,102.50
from
Exchanges
clearing
house
50,52 .25
from
Deposits
8other
banks
9,42 .12 from
Receipts
teller
paying
972.17 receipts
Total
Receipts
from
teller
1,234.16
note bank
N5,000.00
anotes
tional
Cash
Paying
Teller:
to ce1r2t,if5i2cat.e0s
Silver
ce3,700.00
Gold
rtificates
Legal
tenders
3,225.00 Silver
dollars
5,221.00
F224.57
ractional
$10,12 .0
Gold
ELEMENTARY BANKING 233
TYPICAL
TETLLEMRE'NST
SPAYING
Charged
ledger,
$K
A
4to,62I..10
Charged
2to
ledger
general
(bank
etc.)
a0c,4o0u3n.ts1,6 (be
this
in
during
might
day
the
item
Changes
clearing
from
Exchanges
house
72,103.15
sheet)
noted
seonaparate sTo
$enext
1t23l,e8m1e3n.t78
receiving
from
Cash
teller
40,014.57
$2 4,364.98
receipts
Total L
ledger,
Z
Charged
3to
1,203.15
from
Cash
teller
12note
,103.10 receiving
teller
14,322.79
0 ,5 1.20 Cash
Checks
to $123,813.78
balance
tcash
Paying
4e1l,9e2r'.s16
Nbank
7,550.00
anotes
tional
Silver
4,772.00
certificates
certificates
Gold
5,000.00
Vault
$58,2 2.0
cash 24,250.0
tenders
Legal Silver
6,278.00
dollars
$Vault
Cash
64,50 .0 F963.78
ractional
$Gold
10,50 .0
ELEMENTARY BANKING 239
RESOURCES
Loans and Discounts $1,814,025.00
U. S. Bonds 80,500.00
Other Bonds, Stocks and Securities. . . 167,500.00
Stock in Federal Reserve Bank 6,000.00
Real Estate, Furniture and Fixtures.. 40,500.00
Due from Banks 200,000.00
Cash and Sight Exchange 1,689,000.00
Due from U. S. Treasurer 3,500.00
Other Resources 6,000.00
$4,007,025.00
LIABILITIES
Capital $100,000.00
Surplus 100,000.00
Undivided Profits 104,500.00
Dividends Unpaid 6,100.00
Circulation 60,000.00
Due to Banks 50,000.00
Deposits 3,572,425.00
Borrowed Money 4,000.00
Other Liabilities 10,000.00
$4,007,025.00
248 ELEMENTARY BANKING
No..
Account Deposits
Memo. Credits
BALANCE
AND
Checks
Total
Debits
Detail
in
Checks
Sheet
No.. Date
1
Name
Date
ELEMENTARY BANKING 253
August
N14.
1, FARMER'S
BANK.
We
credit,
do
charge.
not
you
We
have
reof
sshowing
cbalance
t$due
ae1our
cit0ev,us,
mo.eu2dn6t.30, Our
books
show
balance
to
Drafts
drawn
in
by
not
us
SPECIMEN
RESCOTNACTILEMENT
Yours
truly,
styour
atement: Note,
July
Jones,
10
100.00
which
with
with
books
the
eagrees
noted.
xourceptions debit
14your
,3 2.72
To
the
TENTH
NATIONAL
BANK
of
New
York: No.
$500.00 No.
1624 1625
226.10
$15,158.82
Your
books
show
balance
to Our
rletters
emto
ityou
ance We
charge,
do
credit.
not
you
ection, Retd.
CJuly
o16
l50.00 item,
July
28
14.26
credit
$our
10,.26.30 in
transit:
July
2.
1,627.10 July
30
2,541.16
ELEMENTARY BANKING 257
$262,409.41 $262,409.41
PRACTICAL EXERCISES
1. What are the principal items of resources
and liabilities in a bank statement?
2. What do you understand by the "batch" or
"block" system?
3. Generally speaking, into what departments
is a bank divided?
4. What are the duties of a receiving teller?
5. What are the duties of a paying teller?
6. Describe briefly a receiving teller's settle
ment and a paying teller's settlement.
7. What are the functions of the credit de
partment?
CHAPTER X
PRACTICAL EXERCISES
1. Describe briefly the Federal Reserve System.
2. What are Federal Reserve notes?
3. Under the Federal Reserve Act, what re
serves are member banks required to keep?
4. Describe the Federal Reserve Board and
enumerate its powers.
5. Explain the "Gold Settlement Fund."
TOPICAL INDEX
Topic Page
Acceptance and Carrier's Lien 178
Acceptance Form 79
Acceptances 78, 79, 80
Accommodation Notes Ill
Adding Machine Operation 22
Agency 197 to 201
Analysis of Assets 250
Analysis of Liabilities 249
Bank Accounting 246
Bank Administration 19
Bank Departmentization 225
Bank Discount 113
Bank Ethics 60
Bank Organization 18, 20
Bank Statement 248
Bank Statement (Condensed) 247
Banking Before Federal Reserve System 265
Banking System on June 30, 1914 269
Basic Books 253
"Batch" or "Block" System 234
"Batch" System Distribution Sheet 235
Beginners' Instruction 5, 9
Bill of Exchange 61, 66, 67, 68
Bills of Lading 173, 174, 176, 178
Bills of Lading and Other Documents 173
Bills of Lading as Collateral for Loans 179
Bills of Lading with Draft Attached 179
Bills of Sale 215, 216
Cash Discount 183
Cashier's Checks 148
Certificate of Deposit Form 152
Certificates of Deposit 150
282
ELEMENTARY BANKING 283
Topic Page
Topic Page
Topic Page
Topic Page
Guaranty Form 55
Honesty as an Asset 12
Illegality of Contract 41
Importance of Study of Contracts 33
Individual Bookkeeper's Settlement 263
Individual Ledger Department 258
Individual Ledger Form 252
Insurance Policies 223
Interest 93
Instruction for Beginners 5
Invoices 182
Joint Makers of Notes 92
Joint-Stock Companies 208
Leases , 216
Legal Object of Contract 40
Legal Tender 90
Letters of Credit 159, 160, 162
Loan or Discount Department 243
Loans and Discounts Statement 108
Maturity of Notes 93
Meaning of a Bank Statement 248
Messengers 9, 11
Messengers and Other Bank Men 8, 23
Minutes of Directors' Meeting Form 212, 214
MoneyLegal Tender 90
Money Sent by Telegraph 171
Mortgages 218
National Bank Notes 266
Needs of the Beginner 9
Note Teller 130
Note Teller's Department 240
Notes for Accommodation Ill
Notes Lost or Stolen 110
ELEMENTARY BANKING 287
Topic Page
Topic Page
APR 24 1933
JUN 11 1938
Afri 25 1933
FEB 7 1941
SEP 15 193:<
SEP 17 1941M
StP 19 1933
OCT 20 1933
SEP 15 1937
SEP 15 1937
MAY 28 1938 JUL 30 1945
170d'4MW
LD 21-50m-l,'B3
YC 23914