,note3 ,images ( ! orig9al pages are available ?r\gh ,int]net ,ar*ive4 ,see http3_/_/ar*ive4org_/details_/simpleexpl anati#jjrobi ,transcrib]'s note3 ,text enclos$ by und]scores is 9 italics 7italics74 ,text enclos$ by tilde *>act]s is 9 bold face 7bold74 ,a ,,simple ,,explanation ,,( ,,mod]n ,,bank+ ,,cu/oms by ,,humphrey ,,rob9son ,edit$ f a ,legal ,/&po9t by ,w4 ,ov]ton ,h>ris1 ,=m] ,judge ( ! ,jeff]son ,c\nty 7,k5tucky7 ,circuit ,c\rt1 ,dean ( ! ,l\isville 7,k5tucky7 ,law ,s*ool ,design$ = ! promotion ( clos] & m satisfactory relations betwe5 ! public & ! banks2 = ! in=mation ( depositors g5]ally1 & ( ^? j ent]+ ! bank+ bus9ess4 ,bo/on ,small1 ,mayn>d ,company ,publi%]s ,copyright1 #aiji1 #aiaj ,by ,humphrey ,rob9son ,ent]$ at ,/ation]s' ,hall ,,cont5ts ,,page ,i4 ,g5]al ,rem>ks #i ,,ii4 ,! ,*oice ( a ,bank #ad ,,iii4 ,op5+ a ,bank ,acc\nt #ag ,,iv4 ,h[ to ,deposit #bb ,v4 ,y\r ,acc\nt on ! ,bank's ,books #bf ,,vi4 ,/opp+ ,paym5t ( a ,*eck #cb ,,vii4 ,h[ ! ,bank ,collects ! ,*ecks y ,deposit #cc ,,viii4 ,! ,cle>+ ,h\se #cf ,,ix4 ,a ,c]tifi$ ,*eck #di ,x4 ,prote/+ ,notes1 ,drafts1 etc41--:y ,necess>y & h[ x is ,execut$ #ec ,,xi4 ,! ,local ,collection ,dep>tm5t #fd ,,xii4 ,! ,loan ,dep>tm5t #gg ,,xiii4 ,new ,york ,ex*ange #ii ,,xiv4 ,! ,me?od ( ,issu+ ,national ,bank ,notes #ajb ,,xv4 ,! ,s-call$ ,special ,privileges ( ,banks #aji ,a ,,simple ,,explanation ,,( ,,mod]n ,,bank+ ,,cu/oms ,i ,,g5]al ,,rem>ks ,aft] "s ye>s ( "w 9 a bank1 x has be5 impress$ daily ^u ! writ] t1 if ! depositors 7 fully in=m$ ab\t ! details ( ! conduct ( banks1 clos] & m satisfactory relations w\ld result4 ,h5ce ?is attempt to expla91 9 a simple & concise way1 avoid+ z mu* z possible ! use ( te*nical t]ms1 c]ta9 ?+s t e depositor %\ld "k4 ,= t5 ye>s ! writ] 0 9 bus9ess4 ,= an equal l5g? ( "t he has be5 connect$ ) a l>ge city bank4 ,he rememb]s 8 utt] lack ( compreh5sion ( banks & _! ways1 & 8 consequ5t mi/akes1 p]plexity1 & emb>rassm5t 9 deal+ ) !m4 ,also ! unfairness & prejudice ) :i* he (t5 judg$ !m4 ,recall+ all ?is1 he believes t1 )\t giv+ (f5se1 he c /ate ^! facts4 ,_m m5 hav+ con/ant transactions ) ! banks d n realize ! importance ( ! *oice ( a bank2 few und]/& ! correct way 9 :i* a note %\ld be drawn1 or h[ to det]m9e ! exact due date ( a sixty or n9ety-day note1 or acceptance2 :at prote/+ a note or draft really means1 & :at effect x has on ! draw]s or endors]s2 ! functions ( ! ,cle>+ ,h\se & ! simplicity ( its me?ods2 :y ! banks are compell$ to pursue a c]ta9 c\rse 9 ! collection ( pap] s5t !m1 ev5 ?\gh ?is c\rse may be v objectionable to ! pay]s2 h[ *ecks are collect$2 ! effect ( c]tify+ a *eck2 & _m o!r details4 ,also t v few depositors h ev] se5 a copy ( ! ,national ,bank ,act1 or are famili> ) ! laws gov]n+ _! own ,/ate ,banks & ,tru/ ,companies4 ,?is lack ( k ( ! laws & cu/oms1 f :i* !re c be no safe dep>ture1 is und\bt$ly ! cause ( _m unreasonable reque/s2 ass]tions ( fanci$ rights2 remon/rances1 & irritat+ misund]/&+s4 ,?is condition %\ld n exi/4 ,"o explanation = x may be1 t ! "w 9 a bank is s /r5u\s1 ev]y?+ hav+ to be accompli%$ 9 s %ort a "t1 t ! (fic]s & employes d n h ! opportunity to expla9 fully ! reason :y4 ,_m seem to ?9k t ! details ( bank+ are v complicat$4 ,b !re is no my/]y ab\t ^! details4 ,!y are v simple & sane4 ,! me?ods ( bookkeep+ are really elem5t>y1 pr9cipally m]e addition & subtraction4 ,( c\rse ! sci5ce ( bank+ & political economy involves deep & pr(\nd /udy1 b ^! are n treat$ "h1 & ! writ] has attempt$ m]ely to give an idea ( ! daily r\t9e ( a bank4 ,?is c be /at$ ) c]ta9ty4 ,! int]e/s ( ! public & ! banks are id5tical2 & an acqua9tance ) bank+ cu/oms w enable any man to conduct 8 bus9ess ) mu* great] intellig5ce1 satisfaction & pr(it4 ,also t banks want to accommodate1 z f> z possible1 n only _! own cu/om]s1 b o!rs1 because !y are possible cu/om]s4 ,x is hop$ t ?is writ+1 9 "s small degree1 may ha/5 ! "t1 :5 ! political orators1 rememb]+ t ! day ( ! private bank] has pass$1 & t ! p n[ own ! banks1 w cease incit+ ! public aga9/ !m2 :5 ! law mak]s1 elect$ by ! /ockhold]s & depositors ( banks1 w cease oppress+ !m by unequal & unju/ taxation2 :5 ! public g5]ally1 realiz+ ! necessity & importance ( banks to e community1 w cease be+ prejudic$ aga9/ !m & _! ways1 &1 by reason ( a bett] und]/&+1 w feel clos] & m cordial t[>d !m4 ,s "h's to a bett] acqua9tance betwe5 ! public & ! banks4 ,,ii ,,! ,,*oice ,,( ,a ,,bank ,! *oice ( a bank %\ld be mo/ c>efully consid]$1 especially by a bus9ess man4 ,! same c>e %\ld be ex]cis$ 9 select+ a bank z w\ld be us$ 9 *oos+ y\r lawy] or y\r doctor4 ,hav+ done ?is1 make x a rule to be z frank & op5 & /raight=w>d ) y\r bank] z ) y\r lawy] or y\r doctor4 ,y w nev] lose by x4 ,all bank+ relations mu/ be f\nd$ on mutual confid5ce4 ,once let y\r bank] get ! idea t y h deceiv$ him1 & naturally he is =c$ to view y\r /atem5ts ) suspicion4 ,tell him ! :ole tru? ab\t y\r bus9ess & y\r res\rces1 ev5 ?\gh x hurts sometimes4 ,x is prim>ily to 8 int]e/ to help all 8 cu/om]s build up _! bus9ess z mu* z possible1 & to keep !m go+1 & y\r success contributes to ! g5]al success ( y\r bank4 ,he %\ld be1 n only y\r bank]1 b y\r intimate f9ancial advis] & y\r v good fri5d4 ,9 decid+ ^u y\r bank1 did y inquire into ! "* & disposition ( its ,presid5t & ,ca%i]8 ,are !y m5 ^: bus9ess sagacity & honorable c>e]s are su* t y are glad to seek _! advice2 & c y repose e confid5ce 9 _! keep+ inviolate y\r bus9ess secrets8 ,w !y fulfill to ! lett] _! promises ( protection to ! be/ ( _! ability 9 times ( f9ancial /ress8 ,or1 h !y exagg]at$ _! res\rces & facilities & made all k9ds ( suave1 b v g5]al promises 9 ord] to get y\r acc\nt8 ,h y gone a little fur!r & consid]$ ! p]sonnel ( ! ,bo>d ( ,directors ( y\r *os5 bank8 ,t ,bo>d is suppos$ to approve or disapprove all loans & bus9ess arrangem5ts4 ,or1 did y op5 y\r acc\nt ) "s bank m]ely because ( conv5i5ce ( location1 or because "s fri5d sugge/$ t in/itution8 ,,iii ,,op5+ ,a ,,bank ,,acc\nt ,9 op5+ y\r acc\nt ) a bank1 y w be ask$ to give y\r signature & y\r address4 ,write y\r "n naturally1 z y are 9 ! habit ( sign+ x4 ,! pay+ tell] has to accu/om himself to ! peculi>ities ( ! signature ( e patron ( ! bank1 & has to be con/antly on ! look\t = =g]ies2 = if he pays a =g]y1 ! bank mu/ /& ! loss4 ,he soon gets to "k y\r signature z he kn[s y\r face4 ,s don't h y\r signature on ! bank's books z1 ,john ,p4 ,williams1 = in/ance1 & !n sign numb]s ( y\r *ecks1 ,j4 ,p4 ,williams4 ,! lett] ,j might /& = ,james or ,joseph1 &1 if ! acc\nt is 9 ! "n ( ,john ,p4 ,williams1 ! bank is tak+ an unreasonable risk 9 pay+ out y\r money on a *eck sign$1 ,j4 ,p4 ,williams4 ,x w\ld h to make good any loss t might result !reby4 ,a woman1 = in/ance1 w op5 an acc\nt z ,flor5ce ,p]k9s ,smi?1 & !n s5d out *ecks sign$ ,flor5ce ,p4 ,smi?2 or ,f4 ,p4 ,smi?2 or if m>ri$1 w sign1 ,mrs4 ,h>ry ,b4 ,smi?4 ,!n ! pay+ tell] mu/ see t e endorsem5t on ! *eck is te*nically correct4 ,= in/ance1 t a *eck made payable to ,john ,p4 ,williams is n endors$ ,j4 ,p4 ,williams1 & aga9 t a *eck payable to ,j4 ,p4 ,williams1 ,tru/ee1 is n endors$ by ,j4 ,p4 ,williams only1 & n z ,tru/ee4 ,be=e go+ to ! pay+ tell]'s w9d[ y %\ld endorse any *eck y are collect+2 ev5 ?\gh x is made payable to ,ca% or to ,be>]4 ,if ! *eck %\ld turn out no good1 ! tell] c !n see at a glance :o ca%$ x1 & communicate ) ! prop] p>ty4 ,compliance ) ^! po9ts saves mu* delay4 ,e *eck %\ld be endors$ exactly z x is made payable on its face4 ,_m firms1 z well z individuals1 ov]look ?is po9t daily4 ,! pay+ tell] mu/ wat* = rais$ or alt]$ *ecks4 ,! law holds t any legal in/rum5t is void if alt]$ 9 any mat]ial way4 ,s _m p1 if !y make a mi/ake 9 writ+ a *eck1 w erase or alt] ! am\nt or ! "n1 in/ead ( tak+ a little m "t & mak+ out a new "o4 ,! banks h to be v cauti\s & p>ticul> ab\t pay+ su* *ecks1 = !y are pay+ out actual ca% on d\btful ord]s4 ,accord+ to law1 !y mu/ suff] ! consequ5ces if !y pay to ! wrong p]son or pay ! wrong am\nt4 ,b all depositors mu/ use e reasonable precaution to keep _! *ecks f be+ alt]$ 9 any way4 ,_m p1 especially 9 ! rural di/ricts1 write *ecks 9 lead p5cil4 ,h[ easy x is = su* *ecks to be *ang$ if !y fall into ! h&s ( di%one/ p>ties4 ,! rejection ( ! acc\nt ( any p]son1 :o w be s c>eless1 is pla9ly only ! "p ( safety4 ,! figures %\ld be plac$ close to ! doll> m>k4 ,9 writ+ ! am\nt ( ! *eck 9 words1 beg9 close to ! left h& m>g91 & :5 ! am\nt is writt51 draw a l9e 9 ! blank space left betwe5 ! am\nt1 & ! ^w doll>s4 ,! law says t :]e ! figures & ! writt5 am\nt diff]1 ! writt5 am\nt %all gov]n4 ,,iv ,,h[ ,,to ,,deposit ,9 mak+ y\r deposit1 always head y\r deposit ticket ) y\r "n exactly z y wrote x :5 leav+ y\r signature ) ! ,pay+ ,tell]1 o!rwise1 x might be cr$it$ to "s o!r p]son4 ,also1 fill 9 ! am\nt ( y\r deposit z pla9ly1 & z legibly z possible4 ,aft] ! receiv+ tell] has *eck$ (f y\r deposit ticket1 x is pass$ on to ! individual bookkeep] :o has *>ge ( y\r acc\nt4 ,he is only human1 & any bad figures on y\r ticket may lead to mi/akes & consequ5t irritation to y4 ,always make out y\r own ,deposit ,ticket4 ,! ,receiv+ ,tell] %\ld n be ask$ to d ?is4 ,!re are g5]ally o!r p 9 l9e1 & !y1 z well z ! ,tell]1 h a "r to compla9 if he has to /op & d ?is = y4 ,li/ y\r money sep>ately z gold & silv]1 &1 9 ent]+ y\r *ecks1 write aga9/ ea* am\nt ! "n ( ! ,bank drawn on1 & ! t[n1 z pla9ly & briefly z possible4 ,!n add ! v>i\s am\nts & h& ! slip to ! tell]4 ,:5 deposit+ curr5cy arrange ! bills s t ! ones & twos w be toge!r1 ! fives toge!r1 ! t5s toge!r & s on4 ,h ! bills /raight & face upw>d4 ,) ! gold & silv] foll[ ! same idea4 ,if y\r deposit is l>ge put ! money 9 packages & label ) am\nt & y\r "n4 ,by foll[+ ^! directions y w put ! ,receiv+ ,tell] "u ev]la/+ obligations4 ,he has a v %ort "t 9 :i* to accompli% a great deal1 & 8 position at be/ is n]ve rack+4 ,9 endors+ a *eck1 ei!r simply write y\r "n on ! back1 or write ,pay to ! ord] ( ---- ,bank & !n sign y\r "n4 ,:5 a *eck is und\bt$ly int5d$ = y1 & y\r "n is n /at$ correctly on its face1 endorse x exactly z x is made payable1 & !n endorse z y g5]ally d4 ,= in/ance1 if a *eck int5d$ = ,br[n ,bros4 ,co4 is made payable to ,br[n ,bros41 x %\ld be endors$ fir/ ,br[n ,bros41 & !n ,br[n ,bros4 ,co4 ,*ecks %\ld be deposit$ or ca%$ promptly4 ,y h only until ! next succe$+ bus9ess day 9 :i* to collect1 or deposit = collection1 any *eck4 ,if y hold a *eck long] ?an =ty-eight h\rs1 & ! bank on :i* x is drawn %\ld fail 9 ! meantime1 y h releas$ ! draw] & mu/ take y\r *ances ) ! o!r claimants aga9/ ! bank4 ,= ?is reason ! banks s5d out all *ecks deposit$ ) !m = collection on ! same day1 or ! next succe$+ bus9ess day2 o!rwise !y h releas$ bo? ! draw] & ! endors]s1 if ! pay+ bank %\ld fail or any loss %\ld result by reason ( _! delay4 ,*ecks drawn on banks 9 ! same t[n1 & :i* are deposit$ aft] ! cle>+ h\r1 are held ov] at ! depositor's risk1 until ! next day4 ,v ,,y\r ,,acc\nt ,,on ,,! ,,bank',s ,,books ,!re is no my/]y ab\t bank bookkeep+4 ,x is ab\t ! simple/ kn[n4 ,! total am\nt ( y\r deposit is add$ to ! balance y already h 9 ! bank2 !n ! total am\nt ( y\r *ecks1 t rea* y\r bank t day1 is d$uct$2 ! result is y\r balance4 ,"r "h x is well to emphasize t ! great majority ( ! banks keep no record ( ! names ( ! p>ties f :om y receive *ecks :i* y deposit2 nor d !y keep any record ( ! names ( ! p to :om y make y\r *ecks payable4 ,:5 y deposit a *eck1 ! only record g5]ally kept by ! banks is ! date t y deposit$ x1 ! am\nt1 & ! t[n 9 :i* x is payable4 ,if x is on a bank 9 ! same city1 y\r bank w keep a record ( ! "n ( t bank1 b n o!rwise4 ,9 h&l+ ?\s&s ( *ecks daily1 x c be se5 :at a /up5d\s task x w\ld be = a bank to keep a complete record ( ! draw]s & all ! endors]s on e *eck4 ,its =ce ( cl]ks w\ld h to be d\bl$ or trebl$4 ,! bank %\ld n be expect$ to keep y\r private memor&a1 & x is ! duty ( ! depositor to keep a complete record ( ! p>ties f :om he gets ! *ecks t he deposits or ca%es4 ,if a *eck is lo/ 9 ! mails1 ! bank has a p]fect "r1 aft] giv+ ! depositor ! am\nt1 ! date on :i* x 0 deposit$1 & ! t[n 9 :i* x 0 payable1 to *>ge ! am\nt to ! depositor's acc\nt until he furni%es a duplicate ( ! lo/ *eck4 ,s1 if y ca% a *eck drawn by ,john ,b4 ,smi?1 = example1 & payable to ,james ,a4 ,jones1 & !n endors$ by sev]al o!r p>ties2 x is y\r duty1 & n ! bank's1 to keep a record ( ! p]son f :om y receiv$ t *eck1 & obta9 a duplicate if x is lo/ be=e rea*+ its de/9ation4 ,also ) all o!r *ecks :i* y deposit or ca%4 ,_m retail firms ca% *ecks = cu/om]s2 & aft] endors+1 w deposit !m = collection2 keep+ absolutely no record ( ! s\rces f :i* !y receiv$ !m4 ,= example1--,mrs4 ,br[n1 ( ,/4 ,l\is1 receives a *eck f h] son 9 ,c9c9nati4 ,%e gets x ca%$ at ! dry goods /ore ) :i* %e deals4 ,!n ! m]*ant deposits x1 ) num]\s o!r *ecks1 9 8 bank = collection4 ,if ! *eck is return$ unpaid1 ! bank c]ta9ly has a p]fect "r to call on ! m]*ant to pay x4 ,! m]*ant !n calls on ,mrs4 ,br[n to pay him4 ,n[ if t *eck is lo/ 9 ! mails1 say burn$ 9 a railroad wreck1 ! bank has ! same "r to call on ! m]*ant = a duplicate4 ,& x is no valid excuse = him to say t he has no record ( ! p]son f :om he receiv$ x4 ,9 %ort1 ea* p]son endors+ a *eck %\ld keep a record ( ! p]son f :om he receiv$ x1 or = :om he endors$ x4 ,on ! la/ bus9ess day ( e mon? y\r /atem5t is made up & y %\ld call = x z soon aft] z conv5i5t4 ,!n y %\ld assort y\r cancel$ *ecks accord+ to ! dates or numb]s ( same1 & comp>e !m ) ! /ubs 9 y\r *eck book4 ,?is is v important 9 ord] t y may detect any =g$ or rais$ *ecks & promptly in=m y\r bank4 ,if su* *ecks are n report$ to ! bank 9 a reasonable "t1 y w h to /& ! loss4 ,! total am\nt ( ! *ecks n return$ by ! bank %\ld be ! exact am\nt ( ! diff]5ce betwe5 ! balance z %[n by y\r *eck book & y\r bank book4 ,= example1--y give a *eck on ! la/ day ( ! mon?2 x does n rea* y\r bank until ! fir/1 second or ?ird day ( ! next mon?4 ,x c n be *>g$ to y\r acc\nt until x does rea* y\r bank2 !re=e1 ! bank's /atem5t w g5]ally %[ a l>g] balance ?an y\r *eck book4 ,! diff]5ce is ! am\nt ( *ecks t are out4 ,banks d n l to tell ! am\nt ( y\r balance ov] ! telephone4 ,!y c n id5tify y ov] ! 'phone1 & "s p]son1 :o has no bus9ess to "k1 may be inquir+ into y\r affairs4 ,= ! same reason !y d n l to /ate ! am\nt ( y\r balance to any "o 9 p]son1 unless y au?orize x4 ,t is a confid5tial matt] betwe5 y & ! bank1 & !y make ?is rule = y\r protection z mu* z _! own4 ,,vi ,,/opp+ ,,paym5t ,,( ,a ,,*eck ,if1 = any reason1 y desire to /op paym5t on a *eck1 communicate ) ! pay+ tell] z quickly z possible4 ,give him a full description ( ! *eck1 ! "n ( ! p>ty to :om x is made payable1 ! numb]1 ! date1 & ! am\nt4 ,!n always confirm ?is action 9 writ+4 ,if1 aft] exam9ation ( y\r *ecks1 ! bank in=ms y t ?is p>ticul> "o has n be5 paid1 y c safely issue ano!r1 if desir$4 ,in=m y\r bank1 h[ev]1 t y are issu+ a duplicate1 & write ! ^w duplicate across ! face ( ! *eck4 ,,vii ,,h[ ,,! ,,bank ,,collects ,,! ,,*ecks ,,y ,,deposit ,:5 y\r deposit is h&$ 9 to ! ,receiv+ ,tell]1 he assorts ! *ecks y give him into =eign & cle>+ items4 ,! =eign items1 t is1 *ecks or drafts on banks 9 o!r t[ns1 are !n pass$ on to ! r\te cl]k4 ,he1 9 turn1 assorts !m s t !y may be s5t to ! banks t w collect !m = ! lea/ possible co/4 ,= in/ance1 if y\r bank is situat$ 9 ! middle ,we/1 ! *ecks y deposit on ! f> ,we/ w be s5t to a ,*icago or ,/4 ,l\is bank4 ,*ecks on ,ea/]n cities1 except ,new ,york possibly1 w be s5t to ,philadelphia or ,baltimore4 ,*ecks on ne>by t[ns probably w be s5t direct to banks 9 ^? t[ns4 ,! reason = n s5d+ *ecks direct to ! t[ns on :i* !y are drawn1 is1 t (t5 !y c be collect$ mu* m *eaply by s5d+ !m ?r\gh o!r l>ge cities4 ,! less exp5se y\r bank incurs 9 collect+1 ! less x w h to *>ge y4 ,! depositor %\ld und]/& t ! bank's *>ges = ^! collections are figur$ at ab\t co/4 ,x is a fact t an exam9ation ( ?is acc\nt on ! books ( any city bank almo/ inv>iably w %[ t x is a s\rce ( loss r ?an pr(it4 ,9 o!r words1 ! city banks really *>ge _! depositors less ?an x actually co/s = collections on o!r t[ns4 ,! cle>+ items1 t is1 *ecks on banks 9 y\r own t[n1 are pass$ to ! ,cle>+ ,h\se cl]ks4 ,! collection ( ^! *ecks ?r\gh ! ,cle>+ ,h\se1 & ! op]ation ( t in/itution1 are next expla9$4 ,,viii ,,! ,,cle>+ ,,h\se ,! ,cle>+ ,h\se is simply a meet+ room = ! conv5i5ce ( ! diff]5t banks 9 a city2 a place 9 :i* to swap *ecks4 ,small t[ns h none4 ,ord9>ily no figur+ is done "h except addition & subtraction4 ,its op]ation is simple4 ,suppose y owe ,br[n #aj4jj1 & y owe ,jones #e4jj4 ,!n suppose ,br[n owes y #e4jj1 & owes ,jones #d4jj4 ,!n suppose ,jones owes y #c4jj1 & owes ,br[n #e4jj4 ,n[1 in/ead ( ea* ( y go+ ar\nd to two o!r places1 y ?ree meet 9 a c]ta9 conv5i5tly locat$ room to squ>e1 or cle> up1 acc\nts4 ,?is saves "t & /eps4 ,a cl]k is 9 ?is room to d ! sums = y4 ,) a little addition & subtraction he has ! foll[+3 ,y owe ,br[n & ,jones toge!r #ae4jj ,br[n & ,jones toge!r owe y #h4jj ------ ,!re=e1 y owe ,br[n & ,jones toge!r #g4jj ,y & ,jones toge!r owe ,br[n #ae4jj ,br[n owes y & ,jones toge!r #i4jj ------ ,!re=e1 y & ,jones toge!r owe ,br[n #f4jj ,y & ,br[n toge!r owe ,jones #i4jj ,jones owes y & ,br[n toge!r #h4jj ------ ,!re=e1 y & ,br[n toge!r owe ,jones #a4jj ,! cl]k !n ann\nces t y owe #g4jj "h2 ,mr4 ,br[n is entitl$ to receive #f4jj1 & ,mr4 ,jones is entitl$ to #a4jj4 ,!n he gives ,mr4 ,br[n an ord] on y = #f4jj1 & ,mr4 ,jones an ord] = #a4jj4 ,no?+ complex ab\t ?is if y "k h[ to add & subtract4 ,n[ j sub/itute = y\r "n1 ! ,fir/ ,national ,bank2 = ,br[n's1 ! ,second ,national ,bank2 = ,jones'1 ! ,?ird ,national ,bank4 ,!n put ! figures up into ! ?\s&s or hundr$s ( ?\s&s ( doll>s 9 place ( ! small ones giv5 above4 ,!n "n ! room :]e y met1 ! ,cle>+ ,h\se1 & call ! cl]k :o did ! sums1 ! ,cle>+ ,h\se ,manag]4 ,!n call ! ord]s he has giv51 ! ,cle>+ ,h\se ,manag]'s *ecks4 ,no matt] h[ _m banks 9 any "o city1 or h[ l>ge ! figures1 ?is simple me?od ( settl+ is 9 op]ation daily4 ,say !re are tw5ty banks 9 y\r city4 ,y\r bank receives ?r\gh ! mails1 & f its local depositors1 numb]s ( *ecks on ! o!r n9ete5 banks 9 ! same t[n4 ,! cl]k1 :o goes to ! ,cle>+ ,h\se1 & 8 assi/ants1 assort ^! *ecks into n9ete5 diff]5t piles4 ,ea* bank goes by a numb] at ! ,cle>+ ,h\se4 ,!n ^! *ecks are /amp$ on ! back ab\t l ?is--,paid ?r\gh ! ---- ,cle>+ ,h\se2 !n foll[s ! date1 & "n1 & numb] ( ! bank :i* s5ds !m4 ,^! n9ete5 piles ( *ecks are add$ up into n9ete5 diff]5t totals2 ! *ecks on ea* bank be+ kept 9 sep>ate bundles4 ,! n9ete5 totals are add$ into "o gr& total4 ,! cl]k !n />ts = ! ,cle>+ ,h\se ) n9ete5 bundles ( *ecks2 & a %eet :i* %[s h[ mu* 8 bank has aga9/ ea* ( ! o!r banks2 & ! gr& total x has aga9/ all ! o!r banks comb9$4 ,!re=e1 at a c]ta9 h\r1 g5]ally noon1 on ea* day1 tw5ty cl]ks1 "o f ea* bank1 meet at ! ,cle>+ ,h\se4 ,ea* "o takes 8 /& at 8 desk4 ,:5 ! manag] taps ! bell1 e cl]k makes ! r\nd ( all ! o!r desks1 & leaves ! bundle ( *ecks he has aga9/ ea* bank ) a slip %[+ ! total am\nt ( ! package4 ,:5 ?is is ov]1 ea* desk has n9ete5 bundles ( *ecks on x & n9ete5 slips %[+ ! diff]5t totals4 ,ea* cl]k !n adds up ^! n9ete5 totals1 & ! gr& total result+ %[s :at all ! o!r banks h aga9/ 8 bank4 ,he !n reports two am\nts to ! ,manag] ( ! ,cle>+ ,h\se1--! gr& total ( ! *ecks he has br\ght 91 & ! gr& total ( ! *ecks :i* h be5 br\ght 9 aga9/ him4 ,say he has br\ght 9 #ajj1jjj4jj wor? ( *ecks aga9/ ! o!r n9ete5 banks1 & !y h br\ght 9 #ij1jjj4jj wor? ( *ecks aga9/ 8 bank4 ,!n 8 bank has a cr$it at ! ,cle>+ ,h\se ( #aj1jjj4jj4 ,aft] ! ,manag] figures up f ^! totals h&$ him by ! diff]5t bank cl]ks1 he f9ds t c]ta9 banks br\ght m ?an 0 br\ght aga9/ !m1 & t c]ta9 o!r banks br\ght less ?an 0 br\ght aga9/ !m4 ,9 o!r words c]ta9 banks h lo/ at ,cle>+ :ile o!rs h ga9$ & at a lat] 7designat$7 h\r ( ! day1 ! debtor banks pay 9 _! losses at ! ,cle>+ ,h\se & ! cr$itor banks receive _! ga9s1 ! total losses & ga9s1 ( c\rse1 exactly (fsett+ ea* o!r4 ,:ile ! sy/ems employ$ at ! ,cle>+ ,h\ses ( ! v>i\s cities ( ! ,unit$ ,/ates may v>y 9 "s p>ticul>s1 !y are all f\nd$ on ! pr9ciples /at$ 9 ! prec$+ p>agraphs4 ,^! pr9ciples h be5 s p]fect$ t ! cl]ks f ! diff]5t banks are at ! ,cle>+ ,h\se = a few m9utes only ea* day4 ,! ,manag] imposes a f9e ( sev]al doll>s on ! bank = e mi/ake 9 calculation its ,cle>+ ,h\se cl]k makes2 also = t>d9ess4 ,to return to ! *ecks :i* h be5 br\ght back f ! ,cle>+ ,h\se4 ,if1 on exam9ation1 ! ,pay+ ,tell] has discov]$ any =g]ies1 or irregul> or miss+ endorsem5ts1 or any?+ suspici\s ab\t any *ecks2 or if ! bookkeep]s h f\nd t any *eck ov]draws ! acc\nt ( ! depositor1 ! bank has only until ! close ( bank+ h\rs to return su* *ecks & collect f ! banks t s5t !m ?r\gh ! ,cle>+ ,h\se4 ,s ! exam9ation ( ^! *ecks mu/ be made c>efully & v quickly4 ,! ,cle>+ ,h\se ,association 9 y\r city is :at might be call$ a ,mutual ,aid ,society1 :i* ! banks h organiz$ = purposes ( mutual conv5i5ce & protection4 ,?is ,association pays ! exp5ses ( ! ,cle>+ ,h\se2 ! ,manag]'s sal>y2 ! r5t2 etc4 ,x adopts rules & by-laws & fixes f9es & p5alties = break+ !m4 ,b x is n an incorporat$ body & c n sue or be su$4 ,9 "t ( panic1 ! ,association is a t[] ( /r5g?1 n only = ! banks !mselves1 b = ! :ole community4 ,! associat$ banks1 at su* times1 h x 9 _! p[] to make or break ! bus9ess int]e/s ( _! city4 ,b _! int]e/s are id5tical ) ! int]e/s ( _! patrons4 ,rememb] ! banks are own$ by ! p1 n by two or ?ree private individuals4 ,! failure ( any "o bank1 or ( any "o bus9ess h\se1 increases ! panicky feel+4 ,!re=e1 ! ,cle>+ ,h\se ,association naturally & f v self-int]e/1 mu/ d its utmo/ to keep its memb]s & _! cu/om]s on _! feet4 ,9 f9ancial /orms1 ! ,association may adopt c]ta9 rules & regulations :i* may seem unreasonable to ! public2 b ^! me?ods are put 9 =ce = ! greate/ good ( ! greate/ numb]2 n only = ! protection ( ! banks1 b ( _! cu/om]s & depositors4 ,x is a "t = ! public to be z reasonable z possible2 to uphold ! banks & _! (fic]s & directors4 ,x is a "t = ! public & ! banks to come clos] toge!r4 ,re/ assur$ ! banks h no desire to see any firm or p]son fail 9 times ( panic1 or any o!r "t4 ,!y make _! l>ge/ divid5ds :5 bus9ess is brisk & ev]y?+ is prosp]\s4 ,:at e ,cle>+ ,h\se ,association does want to wipe out1 h[ev]1 is ! di%one/ & reckless bank]4 ,he is a m5ace & s\rce ( anxiety to e bank 9 ! community4 ,! soon] ! o!r banks c detect & expel him f ! bus9ess1 ! bett]4 ,9 "s cities1 notably ,*icago & ,/4 ,l\is1 ! ,cle>+ ,h\se ,association regul>ly employs exp]t acc\ntants to make p]iodical & unexpect$ exam9ations ( ! banks 9 ! ,association4 ,if any bank is f\nd to be do+ a reckless bus9ess & n liv+ up to ! rules & regulations ( ! ,cle>+ ,h\se1 x is heavily f9$ or expell$4 ,& expulsion f ! ,cle>+ ,h\se means ru9 = t bank z soon z ! bus9ess community le>ns ( x4 ,all ,cle>+ ,h\se ,associations %\ld adopt ?is /rict sup]vision4 ,_m a bank 0 sav$ emb>rassm5t & possible failure 9 ! rec5t panic ( #aijg by ! wise me?ods put into effect by ! ,cle>+ ,h\se ,association4 ,selfi%ness & enmity 7 ord]$ to ! re>4 ,!re are always banks ^: (fic]s h less =esight & wisdom ?an o!rs4 ,"s ( ^! _h be5 l5d+ too freely1 & _! actual ca% res]ves 7 n suffici5t to meet ! /orm ( *ecks ( _! fright5$ depositors2 fright5$ ma9ly because ( ignorance1 =1 ) a few exceptions1 ! banks 7 9 good condition4 ,to call 9 _! loans & repl5i% _! supply ( ca% w\ld cause bus9ess failures & add to ! panic4 ,s ! ,cle>+ ,h\se ,associations ( ! diff]5t cities det]m9$ t ! /rong & wise banks %\ld help ! weak & fooli% ones4 ,loan ,committees 7 appo9t$ to sit daily at ! ,cle>+ ,h\se4 ,! v>i\s banks br\ght to ?is ,committee notes !y _h disc\nt$1 or /ocks & bonds own$ by !m4 ,if ! ,committee ?\ght !m good1 ! ,cle>+ ,h\se ,association w\ld l5d ! bank br++ !m1 up to ab\t #ge ( _! face value4 ,( c\rse1 ! ,cle>+ ,h\se ,association did n l5d ^! banks actual ca%1 b !y issu$ !m ,cle>+ ,h\se c]tificates1 be>+ int]e/1 :i* c\ld be us$ among ! banks 9 settl+ daily claims aga9/ ea* o!r2 j z if ! banks _h deposit$ actual ca% at ! ,cle>+ ,h\se4 ,9 ?is way1 if ,bank ,numb] ,"o _h ! ,cle>+ ,h\se ,manag]'s *eck on ,bank ,numb] ,two = #ej1jjj4jj1 9 settlem5t ( "s daily balanc+ at ! ,cle>+ ,h\se1 ,bank ,numb] ,two c\ld pay ,bank ,numb] ,"o ) ,cle>+ ,h\se c]tificates in/ead ( actual ca%4 ,9 o!r words1 ! banks :i* _h a numb] ( good notes1 or /ocks & bonds1 b a small am\nt ( ca%1 7 sav$ by ! comb9$1 unselfi% & patriotic action ( all ! banks work+ toge!r = ! common weal4 ,if ! public g5]ally knew ( ! _m in/ances ( g5]osity & unselfi%ness t 7 %[n 9 ! ,cle>+ ,h\ses 9 ?is & o!r panics1 ! banks1 z a class1 w\ld n be d5\nc$ & condemn$ z !y sometimes are4 ,& ?is unselfi%ness 0 n ex]cis$ by ! banks = ! salvation ( ! banks alone1 b = ! bus9ess int]e/s ( ! :ole community z well2 =1 z has be5 po9t$ out1 ! int]e/s ( ! banks & ! p are "o4 ,,ix ,a ,,c]tifi$ ,,*eck ,y\r *eck is no?+ b a piece ( pap] on :i* is writt5 an ord] on y\r bank to pay "s "o a c]ta9 sum4 ,/rang]s might n l to accept ?is piece ( pap] 9 paym5t ( debts due !m4 ,9 _m cases y\r *eck %\ld be c]tifi$4 ,:5 a depositor pres5ts a *eck to 8 bank to be c]tifi$1 x %\ld be h&$ to ! ,pay+ ,tell]4 ,he1 9 turn1 h&s x to ! individual bookkeep] hav+ *>ge ( t depositor's acc\nt4 ,if ! bookkeep] f9ds ! balance suffici5t to cov] ! am\nt ( ! *eck1 he /amps across its face ! words ,good = ---- 7! sum nam$ 9 ! *eck7 :5 prop]ly endors$4 ,!n ! ,tell] or "s (fic] ( ! bank1 signs t /atem5t & ! am\nt ( ! *eck is imm$iately *>g$ to t depositor4 ,9 o!r words1 ! bank gu>antees or c]tifies t y\r *eck is good4 ,! bank mu/ be v p>ticul> ab\t c]tify+ a *eck4 ,if any (fic] or employe ( a ,national ,bank c]tifies a *eck1 :i* calls = m ?an ! mak] ( ! *eck actually has to 8 cr$it1 su* (fic]1 or employe1 has committ$ a p5it5ti>y (f5se4 ,?is provision ( ! ,national ,bank+ ,act is mo/ /rictly en=c$1 & ! p5alty is sev]e4 ,:5 c]tification is necess>y1 ! mak] ( ! *eck %\ld be ! "o to h x c]tifi$4 ,if y take ,br[n's *eck to 8 bank & h x c]tifi$1 y release ,br[n entirely & c only hold ! bank4 ,= example1--a man sold a piece ( l&1 &1 on deliv]+ ! de$1 took ! pur*as]'s unc]tifi$ *eck4 ,aft] ! pur*as] _h left ) ! de$1 ! sell]1 ?9k+ ! *eck might n be good1 _h x c]tifi$4 ,! bank fail$ t aft]noon4 ,! pur*as] prov$ t he _h m ?an ! am\nt ( ! *eck to 8 cr$it on ! bank's books4 ,on consultation ) 8 lawy]s1 ! sell] f\nd t he _h no claim on ! draw] ( t *eck & c\ld only file 8 claim aga9/ ! bank ) its o!r depositors4 ,& he only receiv$ ab\t fifty c5ts on ! doll> :5 ! bank's affairs 7 f9ally w\nd up4 ,all because he did n insi/ on ! pur*as] ( ! l& hav+ 8 own *eck c]tifi$4 ,if he _h done ?is he c\ld h held bo? ! pur*as] & ! bank4 ,by hav+ y\r *eck c]tifi$1 y practically ex*ange y\r *eck = "o gu>ante$ by ! bank4 ,= example1 ! bank c]tifies y\r *eck = #ajj4jj4 ,x imm$iately *>ges y\r acc\nt ) ! #ajj4jj1 & cr$its its c]tifi$ *eck acc\nt ) #ajj4jj4 ,!n :5 y\r c]tifi$ *eck comes back to ! bank1 ?r\gh ! p]son to :om y deliv]$ x1 ! bank *>ges its c]tifi$ *eck acc\nt ) #ajj4jj1 & ! transaction is clos$4 ,!re=e1 if1 = any reason1 y decide n to use a *eck aft] y h _h x c]tifi$1 d n de/roy x z y w\ld an unc]tifi$ *eck4 ,be sure to br+ x back to ! bank s t ! am\nt may be cr$it$ y\r acc\nt1 & be *>g$ to ! bank's c]tifi$ *eck acc\nt4 ,o!rwise y\r acc\nt w rema9 *>g$ ) ! am\nt & y\r balance w %[ t mu* less4 ,x ,,prote/+ ,,notes1 ,,drafts1 ,,etc4 ,,:y ,,necess>y ,,& ,,h[ ,,x ,,is ,,execut$ ,prote/+ notes1 drafts1 *ecks1 or o!r comm]cial pap] is simply w>n+ or giv+ notice to p1 second>ily liable on t pap]1 t x has n be5 paid :5 due4 ,! p]son :o ought to pay ! pap] is prim>ily liable4 ,all o!r p]sons :o h endors$ ! pap] or drawn x on ano!r p]son1 firm or bank are second>ily liable4 ,y h endors$ ,br[n's note4 ,br[n does n pay x :5 due4 ,if y d n receive a prompt notice ( ?is1 y might endorse ano!r note = ,br[n "u ! false impression t he _h paid ! fir/ "o4 ,likewise1 if y h endors$ ,jones' draft on 8 firm1 or 8 *eck1 & 8 firm1 or 8 bank refuses to pay su* draft or *eck1 bo? y & ,jones %\ld receive prompt notice t paym5t 0 refus$4 ,) su* notice y w\ld n endorse = ,jones a second "t unless he made good to y1 & expla9$ matt]s satisfactorily4 ,if ,jones 0 hone/ 9 draw+ 8 draft or *eck he is entitl$ to prompt notice ( non-paym5t s t he c take imm$iate /eps to get 8 money4 ,possibly 8 firm is emb>rass$ f9ancially1 or 8 bank has fail$4 ,say ,smi? ,co4 h drawn a draft on a cu/om] & h tak5 x to a bank & secur$ ! money on x4 ,if ! cu/om] refuses to pay ! draft1 ! bank wants prompt notice s x c collect f ,smi? ,co4 ,& ,smi? ,co4 want prompt notice s !y c take legal /eps at once to protect !mselves1 & probably /op fur!r %ipm5ts to ?is cu/om]4 ,v>i\s o!r in/ances might be giv5 :]e endors]s or draw]s ( pap] might suff] loss or damage f lack ( notice ( its non-paym5t4 ,! law holds t ?is giv+ ( notice is ( su* grave importance1 t1 if ! bank receiv+ pap] = collection does n promptly notify all p]sons1 second>ily liable1 ( non-paym5t1 all su* p]sons are releas$ f obligation1 & ! collect+ bank mu/ take its *ances on mak+ ! am\nt f ! pay]4 ,?is /atem5t mu/ be qualifi$ to ?is ext5t4 ,if a *eck is n prote/$1 ! mak] ( ! *eck mu/ prove t he has suff]$ loss by n receiv+ notice ( non-paym5t4 ,b ! draw] ( a draft1 or ! endors]s on any *eck1 draft1 or note are releas$1 :e!r !y suff] damage or n4 ,g5]ally speak+1 a *eck is a writt5 reque/ ( a depositor to 8 bank to pay a c]ta9 sum to a c]ta9 p>ty2 :]eas a draft is a writt5 reque/ ( any "o to a firm or individual1 to pay a c]ta9 sum to a c]ta9 p>ty4 ,( c\rse1 if ! bank receives ord]s f ! p>ties s5d+ !m1 n to prote/ c]ta9 notes1 *ecks1 or drafts1 x mu/ obey ^! ord]s4 ,b if no su* in/ructions accompany ! pap]1 ! bank mu/ prote/ or make itself liable4 ,e bank ( any size has "o ( its employes appo9t$ a ,not>y1 or x c employ a ,not>y on ! outside4 ,he is an (fic] appo9t$ by ! ,/ate1 & is "u bond to ! ,/ate to p]=m all 8 duties accord+ to law4 ,:5 ! bank h&s prote/able pap] to a ,not>y1 x is 8 duty to make a =mal dem& at ! prop] place on ! p]son :o %\ld pay x4 ,if paym5t is refus$1 ! ,not>y makes an exact copy ( ! note1 draft or *eck at ! top ( a pr9t$ =m us$ = ?is purpose4 ,!n1 ov] 8 signature z a ,not>y1 accompani$ by 8 (ficial seal1 he /ates t he has made a dem& 9 p]son = paym5t ( ! pap] describ$ by him2 &1 on paym5t be+ refus$1 he has prote/$ ! non-paym5t4 ,also t he has mail$ or deliv]$ notices ( ?is non-paym5t to all ! p>ties second>ily liable on ?is pap] & /ates _! names4 ,! ,not>y's (ficial /atem5t is call$ ! ,in/rum5t ( ,prote/4 ,! notices he mails are call$ ! ,notices ( ,prote/4 ,c]ta9 fees are all[$ ! ,not>y by law = prote/+4 ,^! are call$ ,prote/ ,fees1 & become a "p ( ! debt4 ,( c\rse1 ! p]son :o ought to h paid ! pap] gets no ,notice ( ,prote/4 ,he c]ta9ly kn[s if he has n paid4 ,! ,not>y mu/ keep a copy ( all 8 ,in/rum5ts ( ,prote/4 ,?is is a public record1 j z any c\rt record is1 & z accessible to ! public4 ,x is r>ely exam9$1 h[ev]4 ,s1 f ! language prescrib$ by law1 t ! ,not>y uses 9 8 ,in/rum5t ( ,prote/1 comes ! common use ( ! t]ms prote/ & no prote/ pap]4 ,to b9d ! p>ties second>ily liable a ,not>y c prote/ pap] only on ! exact day x is due4 ,o!rwise he might put x (f sev]al days1 or dem& paym5t be=e x 0 due1 & damage might result 9 ei!r case4 ,s1 if ! prote/+ is n done on ! exact date :5 ! pap] is due1 x is ( no avail4 ,! maturity ( a draft read+ s _m days1 or mon?s1 aft] date mu/ be calculat$ f ! date ( ! draft itself4 ,b ! maturity ( a draft read+ s _m days1 or mon?s1 aft] sight mu/ be calculat$ f ! date x 0 pres5t$ to ! sight ( ! pay] & accept$4 ,x is v necess>y to date acceptances ( "t drafts read+ aft] sight4 ,dem& = paym5t mu/ be made at ! prop] place dur+ bus9ess h\rs4 ,a *eck ( c\rse is payable at ! bank on :i* x is drawn1 dur+ bank+ h\rs4 ,a draft on a firm is payable at its (fice2 likewise a draft on an individual is payable at 8 (fice1 or if he has none1 !n at 8 resid5ce4 ,notes or accept$ drafts are payable at ! place /at$ on _! face4 ,b1 :5 no place ( paym5t is /at$1 dem& = paym5t mu/ be made at ! (fice ( ! mak] ( ! note1 or ! acceptor ( ! draft2 or if he has no (fice1 !n at 8 resid5ce4 ,:5 y draw up a note x is ! prop] ?+ to /ate on its face payable at ---- bank 7giv+ ! "n ( y\r bank72 or payable at my (fice2 or payable at my resid5ce4 ,likewise1 :5 accept+ a draft1 write ! date1 !n accept$1 payable at ---- 7/at+ y\r bank1 or resid5ce7 across ! face ( ! draft ov] y\r signature4 ,!re=e :5 a note1 or an accept$ draft is made payable at a c]ta9 bank1 dem& = paym5t mu/ be made at t bank1 & n on ! mak] ( ! note1 or ! acceptor ( ! draft4 ,mo/ notes & accept$ drafts are made payable at ! bank ( ! pay]4 ,all ( !m %\ld be4 ,9 ?is way1 if y keep money en\gh 9 y\r bank to meet y\r notes & acceptances1 j z y keep money !re to meet y\r *ecks1 ! bank w save y all worry ab\t _! paym5t 9 case y or y\r bookkeep] ov]look !m4 ,"u su* circum/ances y\r pap] w\ld nev] be prote/$4 ,9 accept+ a note f a cu/om]1 d n h x made payable at y\r bank4 ,h ! draw] make x payable 9 8 own t[n & at 8 own bank4 ,dem& = paym5t mu/ be made at ! exact place /at$ 9 ! note4 ,z e bus9ess man is p>ticul> ab\t protect+ 8 cr$it 9 8 own t[n1 & especially at 8 own bank1 x is obvi\s t he w be mo/ dilig5t ab\t provid+ = ! paym5t ( pap] made payable at ! bank ) :i* he is do+ bus9ess4 ,notes & accept$ drafts %\ld be s5t1 a week or two 9 advance ( _! maturity1 to ! t[n 9 :i* !y are made payable4 ,if pap]1 made payable at ,new ,orleans1 = in/ance1 is n 9 ,new ,orleans :5 due1 prop] dem& = paym5t c n be made & ! draw]s or endors]s might be releas$4 ,!re is absolutely no law requir+ a bank to s5d y a notice t x holds y\r note1 or draft accept$ by y1 = collection & due at "s future date4 ,x is cu/om>y = banks to s5d su* notices1 b x is only a c\rtesy4 ,x is y\r duty to keep acc\nt ( :5 y\r pap] is due1 & to h funds at ! place ( paym5t :5 x is due4 ,! banks t d s are v c>eful ab\t s5d+ out ^! notices1 b ! public %\ld reg>d x z a favor %[n !m & n z _! lawful "r4 ,_m p d n "k or appreciate ?is fact4 ,y %\ld always put y\r /reet address j bel[ y\r signature on a note s t notice c be address$ prop]ly4 ,also1 9 draw+ a draft1 always put ! "n ( ! p]son or firm1 on :i* x is drawn1 9 ! l[] left h& corn]1 & inv>iably /ate ! /reet address4 ,,xi ,,! ,,local ,,collection ,,dep>tm5t ,a bank has a p]fect "r to refuse to accept & to return any *ecks1 notes1 drafts1 etc41 s5t x = collection4 ,b if x does accept !m1 x mu/ obey ! in/ructions ( ! s5d]1 lit]ally & exactly4 ,! bank has absolutely no "r to disreg>d ^! in/ructions1 no matt] h[ obnoxi\s or disagreeable !y may seem to ! pay] ( ! pap]4 ,_m p reg>d all collectors z (f5sive & unwelcome4 ,!y wi% to take _! own "t ab\t pay+ _! debts4 ,please m>k ?is diff]5ce betwe5 ! collector ( y\r groc]'s or druggi/'s bill1 & ! city bank z a collector ( y\r note1 or ( a draft on y4 ,! mon?ly collector mu/ turn 9 ca% = ! majority ( ! bills giv5 him or lose 8 position4 ,b x really makes little diff]5ce to ! bank :e!r y refuse or pay ! note or draft t "s o!r bank has s5t x4 ,:5 collections are s5t to a bank direct by firms1 or by banks 9 ano!r city1 t d n keep an acc\nt ) x2 ! collect+ bank makes small fees1 b ^! fees are v insignificant4 ,s1 by prompt paym5t ( notes & drafts1 y are conf]r+ m ( a favor on y\rself ?an on ! bank4 ,x is wise to protect y\r cr$it ) /range banks z well z y\r own4 ,e bank receives _m confid5tial inquiries conc]n+ ! f9ancial /&+ ( firms & p]sons 9 its city4 ,if n p]sonally kn[n to ! (fic] 9 *>ge ( ?is correspond5ce1 he inv>iably inquires ( ! collection dep>tm5t z to ! promptness ) :i* ! p>ties 9 "q meet _! notes & drafts4 ,& ev5 ?\gh y are n a patron1 a bank 9 y\r own city w\ld r give y a good f9ancial reputation ?an a poor "o4 ,! collect+ bank mu/ reg>d mo/ c>efully ! in/ructions ( ! s5d]1 especially ab\t prote/+ or n prote/+4 ,also ab\t telegraph+ paym5t or non-paym5t1 & :e!r to hold ! pap] aft] x is due or n4 ,9 no case mu/ x surr5d] any docum5ts atta*$ to a draft until ! draft is paid1 or accept$2 &1 9 case ( acceptance1 docum5ts atta*$ mu/ n be surr5d]$ unless ! s5d] s directs4 ,:5 drafts h ,bills ( ,lad+ atta*$1 & ! draft /ates on its face t x is payable on arrival ( ! goods1 ! bank c hold x until ! goods arrive2 b if ! draft calls = paym5t on pres5tation1 ev5 ?\gh x has a ,bill ( ,lad+ atta*$1 ! bank hold+ x1 until ! arrival ( ! goods1 does s at its own risk4 ,z has be5 /at$1 & x c't be /at$ too =cibly1 ! pres5t+ bank has no option & mu/ obey ord]s to ! lett]4 ,if x does n1 x mu/ suff] any result+ loss4 ,x is only an ag5t & c n reg>d ! wi%es ( ! pay]4 ,ano!r po9t y %\ld be> 9 m9d4 ,! bank mu/ n only pay /rict att5tion to ! in/ructions ( ! s5d] ( ! collection1 b x mu/ foll[ ! law4 ,9 self-protection a bank mu/ keep itself in=m$ ab\t ! laws reg>d+ collections & any *anges 9 ^! laws4 ,if a bank accepts any?+ b ! actual ca% 9 paym5t ( a collection1 x does s at its own risk1 & n at ! risk ( ! s5d]4 ,= in/ance1 a bank has a draft on ,smi?1 or holds ,smi?'s note = collection4 ,smi? (f]s 8 *eck 9 paym5t4 ,if ! *eck turns out no good ! bank mu/ recov] ! pap] imm$iately1 & any docum5t :i* might h be5 atta*$2 o!rwise ! s5d] c hold ! bank = ! am\nt4 ,!re=e1 :5 y t5d] y\r *eck to a bank 9 paym5t = collections1 y are ask+ !m to take a risk4 ,if y are n well kn[n 9 ! bank1 x is only a reasonable reque/ = ! bank to ask y to h y\r *eck c]tifi$4 ,don't ask ! bank to h x c]tifi$2 =1 z has be5 expla9$ 9 ! rem>ks on ,c]tifi$ ,*ecks1 ! bank by s do+ w\ld release y1 & c\ld hold only ! pay+ bank4 ,y might j z well ask a /range bank to ca% y\r *eck z to (f] x y\r unc]tifi$ *eck = a collection on y4 ,y w\ld h>dly ca% a *eck = a /rang]4 ,:y %\ld ! bank take an equal risk = y8 ,yet no?+ seems to r\se ! ire ( ! av]age man m1 ?an = ! collection cl]k to ask him to h 8 *eck c]tifi$4 ,x is a well-nigh univ]sal rule 9 all ,cle>+ ,h\se ,associations1 t ! banks1 :i* are memb]s !re(1 %all n collect *ecks on ea* o!r be=e ! daily h\r = meet+4 ,also x is a g5]al cu/om n to collect f ea* o!r1 *ecks t are deposit$1 or tak5 9 paym5t = pap] due1 aft] t h\r4 ,h5ce1 :5 a bank accepts unc]tifi$ *ecks 9 paym5t be=e ! cle>+ h\r1 x w "k be=e clos+ "t :e!r su* *ecks are good4 ,b1 if a bank accepts an unc]tifi$ *eck 9 paym5t aft] ! cle>+ h\r1 ei!r1 x mu/ h x c]tifi$1 & !reby release ! draw]2 or1 x mu/ hold x until ! next day at its own risk4 ,! banks always respect ! man :o has 8 *eck c]tifi$1 if t5d]$ aft] ! cle>+ h\r4 ,= ^! same reasons y c see :y a bank c n take a *eck on a bank 9 "s o!r t[n 9 paym5t ( a collection4 ,x !n w\ld be sev]al days be=e ! bank w\ld "k :e!r ! *eck 0 good or n4 ,also ! bank w\ld be out t am\nt ( money = ! l5g? ( "t x takes to collect t *eck2 = e bank mu/ remit to ! s5d] on ! v day x puts its ,paid /amp on a collection & deliv]s x to ! pay]4 ,!re=e1 :5 a bank notifies y t x holds y\r note1 or a draft drawn on y1 = collection1 be> 9 m9d f\r po9ts4 ,fir/3 ! bank mu/ foll[ ! in/ructions ( ! s5d] or own] ( ! pap]4 ,second3 x c n disreg>d ! law4 ,?ird3 y are b5efit+ y\rself m ?an ! bank by pay+ y\r pap] promptly4 ,f\r?3 ! bank is tak+ a risk e "t x accepts any?+ o!r ?an actual ca% = a collection4 ,! collect+ bank c n consid] ! in/ructions ( any "o b ! bank or p]sons f :om x receives ! item4 ,= in/ance1 y live 9 ,/4 ,l\is1 & h s5t y\r note to ,br[n ,co4 ( ,bridgeport1 ,conn4 ,br[n ,co4 disc\nt y\r note ) _! bank1 or give x to _! bank = collection4 ,be=e x is due ! ,bridgeport bank =w>ds ?is note to a ,philadelphia bank1 :i* 9 turn =w>ds x to a ,/4 ,l\is bank4 ,y are duly notifi$ by ! ,/4 ,l\is bank4 ,= v>i\s reasons y may n wi% to pay4 ,9 t ev5t1 positively ! only way to h ?is note recall$ is = y to communicate ) ,br[n ,co4 ,!n !y mu/ reque/ its recall by ! ,bridgeport bank1 :i* 9 turn in/ructs ! ,philadelphia bank4 ,!n t bank in/ructs ! ,/4 ,l\is bank to return ! note4 ,9 o!r words1 all in/ructions mu/ come ?r\gh ! same *annels by :i* ! note 0 orig9ally s5t4 ,be> 9 m9d t y are n ! own] ( ?is pap]1 nor is ! bank :i* receives x = collection4 ,:5 a draft has ! words ) ex*ange on its face ! draw] is ask+ ! pay]1 n only to pay ! am\nt ( ! draft1 b also ! bank *>ges = collect+4 ,unless ! pres5t+ bank has in/ructions to collect ?is ex*ange or return ! draft1 x c accept ! am\nt ( ! draft & d$uct its *>ges :5 x remits = ! collection4 ,s don't feel res5tm5t t[>d ! bank :5 x asks y to pay = collection *>ges4 ,_m p d4 ,b ! bank is only foll[+ in/ructions & c>es no?+ :e!r y1 or ! fell[ at ! o!r end1 pays ! co/4 ,because x is human nature to object to pay+ out money1 ! ,local ,collection ,dep>tm5t is ! recipi5t ( m compla9ts & unreasonable reque/s ?an any o!r dep>tm5t ( ! bank4 ,any numb] ( actual happ5+s c\ld be set d[n4 ,n[ ! law says t banks %all keep op5 dur+ c]ta9 h\rs on e bus9ess day1 :i* is n a legal holiday4 ,aft] ! clos+ h\r !re is a trem5d\s am\nt ( "w to be done4 ,! tell]s mu/ balance _! ca%2 ! bookkeep]s mu/ take (f a balance ( e acc\nt on _! p>ticul> set ( books2 & e *eck & draft deposit$1 or receiv$ ?r\gh ! mails1 & payable 9 o!r t[ns1 mu/ be li/$ & =w>d$ = collection4 ,no?+ c be held ov] )\t risk1 no matt] h[ heavy ! day's "w4 ,! rule 9 e bank is to clean up all ! "w on ! v day x is receiv$4 ,none ( ?is daily balanc+ ( ca%1 or books1 c be comm5c$ until ! la/ *eck has be5 ca%$1 ! la/ depositor has come 91 & ! la/ pay] ( a collection has settl$4 ,= in/ance1 ! paym5t ( a s+le draft or note aft] bank+ h\rs1 necessitates ! hold+ op5 ( sev]al sets ( books or ! erasure & *ang+ ( v>i\s totals by ! bookkeep]s4 ,x is a v mi/ak51 b popul>1 idea t ! bank employes practically are ?r\gh ) _! duties at ! close ( bank+ h\rs4 ,! fact is1 t ! usual h\rs = ! employes are f eight till five1 & x is no uncommon ?+ = ! cl]k & (fic]s to be h>d at "w _m h\rs aft] ! bus9ess h\ses h clos$4 ,yet _m p]sons ?9k ! bank v disoblig+ if x refuses to transact bus9ess aft] h\rs4 ,"o unreasonable individual insi/$ t he _h until sund[n to pay 8 note on ! day x 0 due4 ,:5 ! collect+ bank told him x w\ld be prote/$ if n paid be=e ! end ( bank+ h\rs1 he became v abusive & want$ to "k :o gave t bank ! p[] to say h[ late he c\ld pay4 ,he 0 politely ref]r$ to ! law mak]s1 b ?is did n less5 8 res5tm5t aga9/ ! bank4 ,! =ego+ are /atem5ts ( actual daily occurr5ces & are only fair samples ( ! inju/ice ) :i* _m p]sons treat ! banks4 ,& x is ma9ly ! result ( ignorance ( ! laws & cu/oms1 :i* ! banks mu/ obey4 ,,xii ,,! ,,loan ,,dep>tm5t ,z a preface to ! rem>ks on ?is dep>tm5t1 ! foll[+ simple & concise /atem5t is tak51 by p]mission1 f t excell5t book1 ,money & ,bank+1 by ,mr4 ,horace ,:ite4 7,book ,,ii1 ,*apt] ,i1 page #bce1 ,edition ( #ahie47 ,,function ,,( ,a ,,bank ,a bank is a manufactory ( cr$it & a ma*9e ( ex*ange4 ,mr4 ,h4 ,d4 ,mc,leod's analysis ( ! me*anism ( bank+ is sub/antially ?is3 ,a man has #e1jjj4jj ( 8 own money4 ,he />ts a bank4 ,8 neighbors deposit #de1jjj4jj ) him4 ,?is money becomes ! absolute prop]ty ( ! bank]4 ,! depositors h simply a "r to )draw an equal am\nt :5ev] !y l1 :i* "r c be en=c$ by law4 ,! bank] owns ! money & ! depositor has a claim1 or "r ( action1 aga9/ him = an equal sum4 ,b ! depositors w n draw ! money out imm$iately2 if !y _h int5d$ to d s1 !y w\ld n h deposit$ x at all4 ,! bank] f9ds by exp]i5ce t "s ( 8 cu/om]s w deposit z mu* money z o!rs draw out1 s t #ej1jjj4jj is on h& all ! "t4 ,he concludes t if 8 own #e1jjj4jj 9 connection ) 8 good reputation1 is consid]$ by ! public a gu>antee = #de1jjj4jj1 !n ! :ole #ej1jjj4jj w s]ve z a gu>antee = at lea/ #bjj1jjj4jj4 ,:5 he beg9s1 8 balance %eet reads 9 ?is way3 ,,liabilities4 ,,assets4 ,deposits #de1jjj4jj ,ca% #ej1jjj4jj ,he n[ beg9s to disc\nt ! comm]cial pap] ( 8 cu/om]s runn+ say n9ety days at #f4 ,:5 he disc\nts a bill ( ex*ange = #a1jjj4jj1 he d$ucts ! int]e/ = n9ety days 7#ae4jj7 & cr$its ! cu/om] ! rema9d] 7#ihe4jj7 on 8 books4 ,?is #ihe4jj is call$ a deposit1 because ! cu/om] has ! "r to draw x out by 8 *eck exactly z he c\ld draw out an equal sum ( gold deposit$ by him 9 ! same bank4 ,9 ! eye ( ! bank]1 & ( ! cu/om]1 & ( ! law1 x is a deposit4 ,9 ord9>y times x is l any o!r deposit4 ,t is1 ! proportion rema9+ uncall$ = at any "t w be ab\t ! same z ! proportion ( actual money deposit$4 ,yet x is no?+ b a bank cr$it4 ,h5ce ! ^w deposit1 :5 ?us us$1 is cle>ly a misnom]1 s9ce1 by d]ivation & common und]/&+1 a deposit means a ?+ laid away1 or giv5 9 *>ge ( somebody4 ,x mu/ be borne 9 m9d1 !re=e1 t bank deposits consi/ ( two diff]5t ?+s1 namely1 7#a7 money1 7#b7 bank cr$its1 & t ! latt] may be f\r or five times z l>ge z ! =m]4 ,! process cont9ues till ! bank] has #bjj1jjj4jj ( disc\nt$ bills 9 8 portfolio4 ,!n 8 acc\nts /& ?us-- ,,liabilities4 ,,assets4 ,deposits #bdb1jjj4jj ,ca% #ej1jjj4jj ,pr(it #c1jjj4jj ,loans ,disc\nts #bjj1jjj4jj ----------- ----------- #bde1jjj4jj #bej1jjj4jj ,?is is ,mr4 ,mc,leod's exposition & x is ! correct "o4 ,x foll[s t ! bank] has manufactur$ some?+ :i* s]ves z a m$ium ( ex*ange to ! ext5t ( ne>ly #bjj1jjj4jj4 ,?is some?+ is cr$it4 ,goods c be b\ght & sold ) x z readily z ) money1 s9ce ! *ecks drawn aga9/ ^! deposits are univ]sally accept$4 ,! :ole #bjj1jjj4jj ( bills are n disc\nt$ 9 a lump1 b gradually1 s t "s are always matur+ & br++ money 9 to meet ! *ecks ( cu/om]s1 9 an endless *a9 ( deposits & disc\nts4 ,x is f\nd 9 practice t #bjj1jjj4jj ( loans & disc\nts may be easily c>ri$ on #ej1jjj4jj ( ca%4 ,?us1 ! loans ( all ! ,national banks 9 ! ,unit$ ,/ates 9 ,octob]1 #ahid1 7 #b1jjj1jjj1jjj4jj1 & _! ca% 7includ+ silv] c]tificates & silv] doll>s7 0 a trifle less ?an #djj1jjj1jjj4jj1 or only "o-fif? ( ! am\nt ( ! loans4 ,! o!r f\r-fif?s 0 cr$it1 & p]fectly s\nd cr$it too1 = x _h pass$ ?r\gh "o ( ! sev]e/ panics 9 our hi/ory4 ,! =ego+ quotation is an unansw]able argum5t = ! ne$ ( banks z manufactur]s ( cr$it 9 e community4 ,! great] ! bank+ capital 9 any section1 ! easi] x w be = ! p ( t section to c>ry on & enl>ge _! bus9ess4 ,! ,loan ,dep>tm5t is n only ! mo/ important1 b x is ! money-mak+ end ( ! bank4 ,if x makes no loans x w pay no divid5ds4 ,if1 on ! o!r h&1 x makes bad loans1 x w g out ( exi/5ce4 ,x c be und]/ood readily t ! successful bank (fic]1 ^: duty x is to accept or reject loans1 mu/ be a p]son ( l>ge exp]i5ce & wide k ( m5 & affairs4 ,he mu/ be an excell5t judge ( human nature4 ,n too cons]vative1 nor yet too v5turesome4 ,he mu/ be a con/ant /ud5t ( f9ancial conditions2 & mu/ exp& or contract 8 loans z ! sea ( f9ance is placid or /ormy4 ,8 responsibility is great4 ,he mu/ l5d1 b he mu/ l5d judici\sly1 millions ( o!r p's money4 ,he c n all[ feel+s ( p]sonal fri5d%ip to w>p 8 judgm5t4 ,he mu/ be ?or\ghly famili> ) ! laws conc]n+ ! mak+ & ! collection ( notes4 ,9 an address to ! ,national ,banks 9 #ahfc1 ! ,hon4 ,hugh ,mc,culloch1 ! fir/ ,comptroll] ( ! ,curr5cy1 gave ?is s\nd advice3 ,d no?+ to fo/] & enc\rage speculation4 ,give facilities only to prud5t & legitimate transactions4 ,di/ribute y\r loans r ?an conc5trate !m 9 a few h&s4 ,pursue a /raight=w>d1 upright1 legitimate bank+ bus9ess4 ,treat y\r cu/om]s lib]ally1 be>+ 9 m9d t a bank prosp]s z its cu/om]s prosp]4 ,9 l5d+1 ! bank %\ld enc\rage ! bus9ess int]e/s ( its community & %\ld disc\rage speculation4 ,if e "o1 be=e ask+ a loan1 w\ld put ?is "q to himself1 ,w\ld ,i take ?is risk1 8 bank] w\ld be sav$ mu* emb>rassm5t4 ,on ! o!r h&1 if y "k y\r security is good1 !re is no reason :y y %\ld feel any degree ( awe or n]v\sness 9 (f]+ y\r own or y\r cu/om]'s notes4 ,t is :at ! bank is 9 bus9ess =1 & y\r proposition1 if n made = purposes ( reckless speculation1 is welcom$ 9 ord9>y times4 ,be> 9 m9d1 h[ev]1 t y\r bank] may1 at times1 h to refuse y\r pap]1 because he has se5 cl\ds on ! f9ancial horizon ( :i* ! av]age p]son is ignorant1 & he is endeavor+ to protect1 n only 8 /ockhold]s1 b 8 patrons1 f ! /orms t are imm95t4 ,x is advisable = y to consid] 8 views c>efully1 & probably to curtail bus9ess expansion4 ,y\r av]age balance on ! bank's books has a great deal to d ) ! am\nt ( ! loans1 no matt] h[ well secur$1 t y c ask reasonably4 ,e bank has a numb] ( cu/om]s :o expect to be tak5 c>e ( 9 ! loan dep>tm5t4 ,b1 if all ! bank's patrons are borr[]s1 x soon w h loan$ out all ( its funds4 ,! bank mu/ h depositors also4 ,:ile "s depositors d n ask = loans1 exp]i5ce has %[n t ! proportion ( a cu/om]'s balance to 8 loans mu/ be su/a9$ 9 ord] to keep ! bank adju/$4 ,9 ,new ,york ! banks g5]ally require a regul> cu/om] to keep an av]age balance ( n less ?an tw5ty p] c5t4 ( ! loans made him4 ,mo/ int]ior banks consid] t5 p] c5t4 ab\t ! "r proportion4 ,= example1 9 ! int]ior cities1 if y\r acc\nt %[s an av]age balance ( #bjj4jj1 y c reasonably reque/ loans1 prop]ly secur$1 ( #b1jjj4jj4 ,an av]age balance ( #a1jjj4jj %\ld entitle ! depositor to loans ( #aj1jjj4jj & s on4 ,exp]i5ce proves t if ! bank] does n keep ?is important po9t 9 m9d1 8 ma*9]y w be out ( ge>4 ,speak+ g5]ally1 x w pay any conc]n to borr[ money1 if necess>y1 to %[ a fair balance to its cr$it4 ,bank]s are only human1 & all bus9ess is selfi%4 ,e bank w be dispos$ to take c>e ( its be/ pay+ cu/om]s fir/ 9 times ( f9ancial /orms4 ,e m]*ant looks out = 8 be/ cu/om]s fir/4 ,:y n a bank]8 ,:5 a firm attempts to hold its bank d[n to ! la/ c5t ( pr(it1 keeps no balance to speak (1 & subjects ! bank to endless exp5se 9 ! collection ( its *ecks & drafts1 x c n reasonably expect z lib]al treatm5t 9 squally times z ! conc]n :i* pursues ! broad] policy ( live & let live4 ,"s firms1 if !y w\ld figure x out1 c\ld see pla9ly t ! bank 0 h&l+ _! acc\nt at a loss2 yet1 !y ?9k !y are conf]r+ a great favor 9 plac+ _! bus9ess ) any bank4 ,a l>ge conc]n 0 pursu+ ?is n>r[ policy4 ,among o!r ?+s x made a practice ( borr[+ l>ge sums 9 o!r cities at f\r or five p] c5t4 :5 ! local rate 0 six4 ,! rec5t panic came on4 ,money advanc$ to fifty1 to "o hundr$ p] c5t4 9 ,new ,york4 ,! local banks 7 hav+ all !y c\ld d to take c>e ( _! own good cu/om]s4 ,! result 0 t ?is firm came to ! v]ge ( an assignm5t4 ,&1 if x _h n happ5$ t ! banks ( its city did g5]\sly come to its rescue1 x w\ld h collaps$4 ,x is well to rememb]1 t1 :ile ! rates ( int]e/ 9 ,new ,york are tempt+ly l[ at times1 !y fluctuate viol5tly & (t5 )\t w>n+2 also t ! bank]s 9 a /range city h no p]sonal int]e/ or local pride 9 y\r success or failure4 ,money is only a commodity1 & rates ( int]e/ are gov]n$ by supply & dem&4 ,n[ ! supply ( money 9 ! ,new ,york banks v>ies trem5d\sly1 by millions ( doll>s 9 fact4 ,?is v>iation comes f _m causes4 ,on ! o!r h&1 ! dem& = money 9 ,new ,york is con/antly *ang+4 ,! reasons = ?is are manifold4 ,b 9 ! small] cities1 bo? ! supply & dem& are mu* m uni=m & /eady4 ,h5ce ! rates ( int]e/1 outside ( ,new ,york1 are mu* less liable to *ange4 ,!re=e1 unless ! dem&s ( y\r bus9ess exce$ ! bank+ facilities ( y\r t[n1 x is v advisable = y to conf9e y\r loans to ! local banks4 ,! loan dep>tm5t is re/rict$ by c]ta9 laws1 j z ! o!r dep>tm5ts4 ,/ate & ,sav+s ,banks1 & ,tru/ ,companies mu/ obey ! laws ( _! p>ticul> ,/ate1 b any bank hav+ ! ^w ,national z "p ( its "n1 or ! lett]s ,n4 ,a4 7,national ,association71 or ! lett]s ,n4 ,b4 ,a4 7,national ,bank+ ,association7 foll[+ its "n1 mu/ adh]e /rictly to ! provisions ( ! ,national ,bank ,act4 ,! ,congress ( ! ,unit$ ,/ates has =bidd5 ! use ( ! ^w ,national z "p ( ! "n ( any ,bank or ,tru/ ,company :i* does n comply ) all ( ! sections ( ! ,national ,bank ,act4 ,z ! /atutes diff] 9 ea* ( ! sep>ate ,/ates1 only ! laws gov]n+ ,national ,banks w be consid]$ "h4 ,! :ole _s ( ! ,national ,bank ,act 9 relation to loans is to prev5t ! advanc+ ( money on any?+ b quick assets4 ,9 o!r words1 loans mu/ n be made on any security1 t c n be turn$ into money quickly4 ,= ?is reason a ,national ,bank c n l5d on real e/ate z a security4 ,also x %\ld n accept notes hav+ long] ?an n9ety days or f\r mon?s to run4 ,! fundam5tal pr9ciple ( ! law is ! gu>d+ ( ! depositors' money2 to h x ready = !m at all times4 ,b ! :ole fabric & !ory ( bank+ is f\nd$ on ! fact1 demon/rat$ by c5turies ( exp]i5ce1 t at no "o "t d all ! depositors want to draw all _! money f all ! banks4 ,also t e day "s loans are due & c be conv]t$ into ca% if necess>y4 ,paym5t ( dem&1 or call1 loans c be dem&$ any day4 ,on "t loans1 paym5t c n be ask$ = until ! maturity ( ! note1 ! day agre$ ^u by ! bank & ! borr[]4 ,on dem&1 or call1 loans ! int]e/ mu/ be paid at ! end ( e ?ree mon?s1 or :5 ! loan is paid4 ,on "t loans1 ! int]e/1 or disc\nt1 is paid 9 advance4 ,notes read+ "o1 two1 ?ree1 or f\r mon?s aft] date are due1 ( c\rse1 "o1 two1 ?ree or f\r mon?s aft] ! date ( ! notes4 ,b ?irty1 sixty1 or n9ety-day pap] is n due 9 "o1 two1 or ?ree mon?s4 ,?is is a common error4 ,! exact numb] ( days mu/ be calculat$4 ,! foll[+ table = det]m9+ ! maturity1 or due date1 ( ?irty1 sixty1 or n9ety-day pap] is h]e) giv53 ,,table ,,= ,,f9d+ ,,maturity ,,( ,,notes ,,& ,,drafts ,at #cj1 #fj1 & #ij ,days ---------------------------------------- ---------------- ,,at #cj ,,days ,,at #fj ,,days ,,at #ij ,,days ,,dat$ ,,9 ,w be ,due ,w be ,due ,w be ,due ,,mon? ,,( ,same ,date 9 ,same ,date 9 ,same ,date 9 ---------------------------------------- ---------------- ,,janu>y ,febru>y less ,m>* plus ,april #a day #a day ---------------------------------------- ---------------- ,,febru>y ,m>* plus ,april plus ,may plus #b days #a day #a day ---------------------------------------- ---------------- ,,m>* ,april less ,may less ,june less #a day #a day #b days ---------------------------------------- ---------------- ,,april ,may ,june less ,july less #a day #a day ---------------------------------------- ---------------- ,,may ,june less ,july less ,augu/ less #a day #a day #b days ---------------------------------------- ---------------- ,,june ,july ,augu/ less ,septemb] #a day less #b days ---------------------------------------- ---------------- ,,july ,augu/ less ,septemb] ,octob] less #a day less #b days #b days ---------------------------------------- ---------------- ,,augu/ ,septemb] ,octob] less ,novemb] less less #a day #a day #b days ---------------------------------------- ---------------- ,,septemb] ,octob] ,novemb] less ,decemb] less #a day #a day ---------------------------------------- ---------------- ,,octob] ,novemb] less ,decemb] less ,janu>y less #a day #a day #b days ---------------------------------------- ---------------- ,,novemb] ,decemb] ,janu>y less ,febru>y less #a day #b days ---------------------------------------- ---------------- ,,decemb] ,janu>y less ,febru>y less ,m>* #a day #b days ---------------------------------------- ---------------- ,,example4--,pap] dat$ ,m>* #ae? at #ij days is due ,june #ac?4 ,,to ,,prove4--,exclude day ( date1 !n #af days 9 ,m>*1 plus #cj days 9 ,april1 #ca days 9 ,may1 #ac days 9 ,june equals #ij days4 ,pap] app>5tly due1 f ?is table1 on ,febru>y #cj?1 is1 ( c\rse1 due ,m>* #b;d1 or app>5tly due ,april #ca/1 is1 ( c\rse1 due ,may #a/4 ,9 ,leap ,ye> all[ance mu/ be made = #bi days 9 ,febru>y4 ,= pap] payable 9 ,/ates all[+ grace use table1 !n add days ( grace4 ---------------------------------------- ------------------- ,national ,banks c l5d only a c]ta9 proportion ( _! deposits4 ,9 ,new ,york1 ,*icago1 & ,/4 ,l\is1 call$ ,c5tral ,res]ve ,cities1 ,national ,banks mu/ keep on h&1 9 lawful money1 a res]ve ( tw5ty-five p] c5t4 ( _! deposits4 ,9 ,albany1 ,baltimore1 ,bo/on1 ,c9c9nati1 ,clevel&1 ,detroit1 ,l\isville1 ,milwaukee1 ,new ,orleans1 ,philadelphia1 ,pittsburg1 ,san ,francisco & ,wa%+ton1 call$ ,res]ve ,cities1 ! ,national ,banks mu/ h ! same res]ve ( tw5ty-five p] c5t4 ( _! deposits4 ,b ! ,national ,banks 9 ^! la/-nam$ ?irte5 cities c keep "o-half ( _! res]ve 9 ,national ,banks locat$ 9 any ( ! ?ree ,c5tral ,res]ve ,cities1 viz43 ,new ,york1 ,*icago & ,/4 ,l\is4 ,9 all o!r cities or t[ns ! ,national ,banks mu/ h a res]ve ( fifte5 p] c5t4 ( _! deposits1 b n9e p] c5t4 ( _! res]ve c be kept 9 ,national ,banks locat$ 9 any ( ! ?irte5 ,res]ve ,cities2 or 9 ,national ,banks 9 ! ?ree ,c5tral ,res]ve ,cities4 ,approv$ ,res]ve ,ag5ts are ! banks ( ! l>g] cities1 select$ by ! banks ( small] cities or t[ns1 9 :i* to c>ry "p ( _! res]ve4 ,^! selections mu/ be approv$ by ! ,comptroll] ( ! ,curr5cy1 ! executive head ( ! ,national ,bank+ ,sy/em4 ,a ,national ,bank is =bidd5 to l5d m ?an t5 p] c5t4 ( its comb9$ capital & surplus to any "o firm or individual4 ,b ! disc\nt ( bills ( ex*ange drawn 9 good fai? aga9/ actually exi/+ values1 & ! disc\nt ( comm]cial or bus9ess pap] actually own$ by ! p]son negotiat+ ! same1 %all n be consid]$ z money borr[$4 ,also no ,national ,bank c l5d on its own /ock z security4 ,! ,comptroll] ( ! ,curr5cy c h an exam9ation made1 z (t5 z he may deem prop]1 ( ! condition ( any ,national ,bank4 ,! visits ( ! ,national ,bank ,exam9]s are nev] ann\nc$ 9 advance4 ,!y come sudd5ly & )\t w>n+4 ,_! duties are n only to balance ! books & c\nt ! ca%1 b also critically to exam9e ea* loan & its security2 & to give especial att5tion to loans to any director or (fic]1 & to any conc]ns 9 :i* !y may be f9ancially int]e/$4 ,if ! bank is ov]loan$1 t is1 has loan$ m ?an ! law all[s1 ! exam9] imm$iately reports x1 & ! ,comptroll] ( ! ,curr5cy ord]s t bank to cease l5d+1 & to require paym5t ( en\gh ( its loans to make good ! res]ve requir$ by law4 ,& if ! bank does n c\rt disa/] & ! clos+ ( its doors1 x ha/5s to obey ord]s & to get 9 l9e4 ,! sup]vision ( ! ,national ,banks is n p]functory or c>eless4 ,x is v /rict4 ,! inquisitorial p[]s ( ! ,national ,bank ,exam9]s are practically unlimit$4 ,!y h a legal "r to put any bank (fic] on oa? 9 que/ion+ ! affairs ( ! bank4 ,!y look into e dep>tm5t 9 ! mo/ se>*+ way1 & any disob$i5ce ( ! law is report$ promptly to ! ,comptroll]4 ,^! ,exam9]s are appo9t$ by ! ,unit$ ,/ates ,gov]nm5t2 & if !y want to hold _! positions1 !y mu/ be /rictly imp>tial 9 _! reports to ! au?orities4 ,! provisions ( ! ,national ,bank ,act h be5 s rigidly en=c$1 t 9 =ty-f\r ye>s1 or s9ce ! ,act 0 pass$ by ,congress1 ! av]age annual loss to depositors 9 ,national ,banks1 has be5 only ?irty-sev5 "o ?\s&?s "p ( "o p] c5t4 ( _! deposits4 ,practically no loss at all4 ,isn't t a tribute to ! wisdom ( t law2 to ! /rict sup]vision ( ! ,gov]nm5t2 & to ! hone/y & integrity ( ! (fic]s ( ,national ,banks2 pa/ & pres5t8 ,x has happ5$1 ( c\rse1 t "s spoil]s h occasionally obta9$ control ( a ,national ,bank1 & h di%one/ly us$ ! depositors' money 9 risky v5tures = _! own pr(it4 ,b ! (ficials ( ! ,treasury ,dep>tm5t h soon siz$ !m up1 & su* m5 %ortly f9d ! bank+ bus9ess n to _! lik+1 especially ) ,uncle ,sam z a sup]visor4 ,,xiii ,,new ,,york ,,ex*ange ,practically e bank 9 ! ,unit$ ,/ates keeps "p ( its funds 9 banks 9 ,new ,york ,city1 ! money c5t] ( ! c\ntry4 ,all ,national ,banks are all[$ to keep "p ( _! res]ve 9 ! ,national ,banks ( ,new ,york1 ,*icago & ,/4 ,l\is1 ! ?ree ,c5tral ,res]ve ,cities4 ,= ^! reasons *ecks drawn on banks 9 ^! ?ree cities are g5]ally accept$ at p>1 t is1 collect$ )\t co/ to ! depositor4 ,9 ?is connection1 ! ^w ex*ange comes f ! fact t y ex*ange y\r p]sonal *eck = ! bank's *eck on ano!r bank1 locat$ 9 "s o!r city4 ,9 remitt+ = collections1 or = balances due1 ! banks outside ( ! ?ree ,c5tral ,res]ve ,cities1 g5]ally s5d _! *ecks on "o ( ^! cities1 accord+ to _! location4 ,"u c]ta9 conditions y w notice y\r local newspap]s quot+ ,new ,york ,ex*ange at s mu* premium or s mu* disc\nt4 ,^! rates are g5]ally 9 use only betwe5 ! diff]5t banks 9 y\r city4 ,! banks d n *>ge a depositor any premium = its *ecks on o!r cities1 unless ! am\nt ( ! *ecks call$ = is l>ge4 ,! prop] way to draw y\r *eck :5 y want ,new ,york ,ex*ange1 is to make x read ,pay to ! ord] ( ,new ,york ,ex*ange4 ,! bank !n makes out its *eck on a ,new ,york bank payable to y\r ord]4 ,!n y %\ld endorse ! bank's *eck to ! ord] ( ! p>ty to :om y are remitt+4 ,banks d n l to sell _! *ecks on o!r banks to /rang]s4 ,"s exp]t at rais+ *ecks may buy ,new ,york ,ex*ange = t5 doll>s & raise x to t5 ?\s&4 ,also he might buy ! bank's *eck ) ! idea ( obta9+ ! ,ca%i]'s signature = ! purpose ( =g]y4 ,,xiv ,,! ,,me?od ,,( ,,issu+ ,,national ,,bank ,,notes ,_m p h ! idea t a ,national ,bank1 hav+ a capital (1 say "o hundr$ ?\s& doll>s1 c call on ! ,unit$ ,/ates ,treasury ,dep>tm5t = an equal am\nt ( ,national ,bank ,notes1 )\t exp5se to ! bank2 & ?us h d\ble ! am\nt ( its capital to l5d at ! />t4 ,! ,national ,bank ,act does say t ea* ,national ,bank mu/ issue curr5cy equal to a c]ta9 p] c5t4 ( its capital2 & fur!r1 t ea* ,national ,bank c issue curr5cy equal to ! full am\nt ( its capital4 ,b ! pr(it on tak+ out ?is curr5cy1 or circulat+ notes1 is s v small t _m banks d n issue z mu* z ! law all[s4 ,^! circulat+ notes mu/ be issu$ "u c]ta9 exp5sive conditions4 ,fir/--! bank mu/ pur*ase & deposit ) ! ,treasur] ( ! ,unit$ ,/ates an am\nt ( regi/]$ ,unit$ ,/ates ,bonds1 equal at _! p> value1 to ! am\nt ( ! circulat+ notes call$ =4 ,second--dep5d5t on ! k9d ( bonds deposit$1 ! bank mu/ pay a tax on its circulat+ notes4 ,?ird--! bank mu/ /& ! exp5se ( plates = pr9t+ & ! express *>ges = s5d+ x ! orig9al issue ( its notes4 ,also1 :5 any ( its worn-out or mutilat$ notes are s5t to ! ,treasury ,dep>tm5t1 !y are de/roy$1 & ! bank !n has to pay ! exp5se ( re-issue & ! express *>ges = s5d+ !m to ! bank t orig9ally issu$ !m4 ,! signature ( ! ,presid5t & ,ca%i] ( ! bank mu/ be affix$4 ,!re=e ,national ,banks1 9 calculat+ ! possible pr(it on tak+ out circulat+ notes1 h ! foll[+ example to be consid]$ 9 issu+ e "o hundr$ ?\s& doll>s ( _! notes3 ,bonds pur*as$3 ,unit$ ,/ates ,regi/]$ #b bonds to be paid at p> 9 #aicj4 ,price ( bonds #ajd #ajd1jjj4jj ,p> value ( bonds pur*as$ #ajj1jjj4jj ,money wor? #f4 ,income f bonds #b1jjj4jj ,income f circulat+ notes loan$ at #f #f1jjj4jj --------- #h1jjj4jj ,,less ,,d$uctions4 ,annual tax on circulat+ notes #ejj4jj ,s9k+ ,fund to retire premium on bonds at maturity1 am\nt to be *>g$ (f ea* ye> #aha4jj ,exp5ses 7plates1 express *>ges1 etc47 #ge4jj #gef4jj --------- ,net ,income f ,circulat+ ,notes #g1bdd4jj ,net ,income f loan+ #ajd1jjj4jj 7net co/ ( bonds pur*as$7 at #f #f1bdj4jj --------- ,net pr(it on tak+ out #ajj1jjj4jj ( circulat+ notes #a1jjd4jj ,h5ce ! net p]c5tage ( pr(it on tak+ out ,national ,bank notes on ?is class ( bonds1 is ab\t "o p] c5t41 bas$ on _! pres5t m>ket price4 ,! pr(it on tak+ out circulation on o!r ,unit$ ,/ates bonds is ev5 less4 ,suppose ! m>ket price ( ! #b bonds pur*as$ 0 high]1 say #ajh1 z x 0 sev]al ye>s ago1 ! pr(it w\ld be ev5 less4 ,also1 if ! bonds decl9e 9 m>ket value bel[ p> 7z 9 case ( w>1 = in/ance71 ! bank mu/ /& t loss2 & pur*ase & deposit an additional am\nt ( bonds1 s z to make ! m>ket value ( ! bonds deposit$ equal to ! am\nt ( its out/&+ circulat+ notes4 ,9 ord] to retire its circulat+ notes & obta9 possession ( its ,unit$ ,/ates ,bonds1 deposit$ z security !re=1 ! bank mu/ s5d ! ,treasury ,dep>tm5t an am\nt ( lawful money equal to ! am\nt ( ! circulat+ notes x wi%es to retire4 ,x c !n )draw a proportionate am\nt ( ! bonds held z security = its circulat+ notes4 ,b ! law says t n m ?an n9e millions ( ,national ,bank ,notes c be retir$ 9 any "o mon?4 ,!re=e1 if ! m>ket price ( ,unit$ ,/ates bonds goes up to a po9t :]e all pr(it on its circulation is wip$ out1 ! bank may h to wait sev]al mon?s until previ\s reque/s = retir+ circulation are out ( ! way4 ,9 ! meantime ,unit$ ,/ates bonds may h gone d[n 9 price4 ,z has be5 /at$1 a ,national ,bank c take out an am\nt ( circulat+ notes1 or ,national ,bank curr5cy1 equal to ! am\nt ( its capital4 ,b ! pr(it on ! op]ation is s small 7leav+ out ! *ances ( actual loss7 t _m banks d n issue notes to ! full am\nt all[$4 ,! foll[+ figures relative to ! total capital ( all ! ,national ,banks1 & ! total circulation ( ^! banks on ! dates /at$1 conclusively prove ?is fact4 7,^! figures are tak5 f ! annual report ( #aijg ( ! ,comptroll] ( ! ,curr5cy47 ,novemb] #ab1 ,janu>y #bf1 ,m>* #bb1 #aijf4 #aijg4 #aijg4 ,capital ,/ock #hdg1ead1fec4jj #hfj1icj1fbd4jj #hgc1ffi1fff4jj ,circulat+ ,notes #ecf1aji1ica4jj #ede1dha1hgj4ej #edc1cbj1cge4jj ,may #bj1 ,augu/ #bb1 #aijg4 #aijg4 ,capital ,/ock #hhc1fij1iag4jj #hif1dea1cad4jj ,circulat+ ,notes #edg1iah1fif4jj #eea1idi1dfa4ej ,x c be se5 f ^! figures t ! ,national ,banks c\ld h tak5 out ov] ?ree hundr$ millions m ( circulat+ notes ?an !y actually issu$ dur+ ! "t /at$4 ,& ^! figures are n exceptional4 ,banks1 o!r ?an ,national1 %all pay a tax ( t5 p] c5tum on ! am\nt ( _! own notes us$ = circulation & paid out by !m4 ,?is tax is prohibitive & no ,/ate ,banks issue circulat+ notes = ?is reason4 ,,xv ,,! ,,s-,,call$ ,,special ,,privileges ,,( ,,banks ,9 e political campaign1 especially ! ,national ones1 ! orators talk a great deal ab\t ! special privileges ( banks4 ,b !y are nev] def9$ exactly4 ,accord+ to !m1 "o privilege 787 ! bank enjoys is ! p[] to l5d a c]ta9 p] c5t4 ( its depositors' money4 ,b if x c\ld n d ?is1 :at reason w\ld ! bank h = exi/+8 ,t is its pr9cipal real s\rce ( pr(it4 ,practically ! only o!r privilege ! ,national banks h1 is ! "r to take out ,national ,bank ,notes1 or curr5cy4 ,z has be5 %[n 9 ! rem>ks on ,! ,me?od ( ,issu+ ,national ,bank ,notes1 ?is privilege all[s s little pr(it t ! banks d n use x to ! full ext5t ( ! law4 ,on ! o!r h&1 consid] a few ( ! _m risks ! bank is con/antly tak+4 ,e loan x makes is a risk4 ,a few bad loans1 made ?r\gh di%one/ or vision>y repres5tations ( its cu/om]s1 may blot out ! bank's pr(its = a ye> or m4 ,e *eck or draft ca%$ is a risk4 ,e *eck1 draft1 or note x takes = collection is a risk4 ,9 fact1 e transaction ! bank und]takes is m ?an ord9>ily haz>d\s4 ,moreov] ! pr(its ( ! av]age city bank are n l>ge4 ,consid]+ _! responsibilities & ! innum]able ways by :i* !y may involve ! bank1 ! sal>ies paid ! employes1 f ! ,presid5t to ! mess5g]s1 are small4 ,also rememb] !re is no wat] 9 ! /ock ( banks4 ,! capital ( e ,national ,bank mu/ be fully paid 91 be=e x is all[$ to op5 = bus9ess2 & 9 mo/ ( ! ,/ates1 ! banks1 o!r ?an ,national1 mu/ h _! entire capital paid up )9 a ye> f _! beg9n+4 ,! net pr(its ( successful banks1 locat$ 9 cities ) a population ( "o hundr$ ?\s& or ov]1 av]age ab\t six to t5 p] c5t4 ,! bus9ess man1 :5 consid]+ an inve/m5t 9 a m]cantile or manufactur+ ent]prise1 g5]ally c\nts on d\ble t am\nt ( divid5ds4 ,if1 z ! politicians /ate1 ! banks enjoy s _m special privileges2 x is /range t ! p ( e section ( ! c\ntry d n ru% 9 to organize & take /ock 9 banks4 99 99 99 99 99 99 ,transcrib]'s note3 ,m9or typographical errors h be5 correct$ )\t note4 ,irregul>ities & inconsi/5cies 9 ! text h be5 reta9$ z pr9t$4