Business Hints for Men and Women by Alfred Rochefort Calhoun (best detective novels of all time TXT) đź“–
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The depositor can provide his own check book, and have it printed in any color he pleases, with the name of himself and business on the margin. The bank, however, will supply loose bank checks of its own, or it may provide them in book form, with stubs, or a space on which the number, amount and purpose of the check may be noted for the drawer’s information.
“Writing up” of the deposit book is leaving it with the proper officer at the bank—a receipt for the book is never taken. It is returned with all the checks received, and their amount footed up on the right hand or debit page, and the balance on hand shown.
Every depositor should know from the record on the check stubs exactly how his account stands with the bank.
Take care that you do not overdraw.
Keep your own record of your own money.
COMMERCIAL DEPOSIT BANKS
In the Commercial banks of our large cities no interest is allowed, nor could it be easily calculated where a score of deposits may be made in a week and a hundred checks drawn in a day.
The depositor in such a bank is free to check out his funds as he pleases.
Before opening an account there is more than money needed from the depositor. If unknown, he must satisfy the bank of his character, which is best done through the introduction of one known to both.
Some banks make a charge for deposits, where a man makes a convenience of them by depositing money which he checks out in a short time.
A depositor, when opening an account with a bank is required to place his signature in a book kept for the purpose. Until the bank officer, the paying teller, becomes familiar with the signature on the check, he verifies it by comparing it with that in the book.
HOW TO PREPARE A CHECK
A check may be defined to be “a written order on a bank directing it to pay a certain sum of money to the person named in the check or to his order, and signed by a depositor.”
So long as the purpose is clearly conveyed in the writing no particular form of words is necessary, nor need the paper on which the check is written be the regular printed form properly filled in.
The “drawer” is the one who makes the check.
The “payee” is the one for whom the check is made.
In making a check, the best plan is to fill out the stub first, and from the data on it make out the check. This tends to accuracy.
Be sure to number your check, beginning with I.
Be sure that the number on the stub is the same as on the check.
A person having money in bank and wishing to draw for his own use, makes his check payable to “self” or to “cash.”
Usual form of check:
First National Bank. No. 27 Kingston, Vt., Oct. 13, 1910. Pay to order of John Smith Seventy-five 75/100 –– dollars. $75.75 George F. Brown.
It is proper form to specify on the face of the check the purpose for which it is given, but while this is permissible it is not usual.
Write the amount of the check first in words then in figures. This makes more certain the amount.
Always begin first word of amount close to left-hand side of check; when the whole sum is written down draw a heavy stroke along the line to the word “dollars.”
When a check is made payable to John Smith or order, John Smith must sign his name on the back of the check—left-hand end and about an inch from the top.
Never sign a check until you are ready to collect, or to bank it.
The payee can endorse the check to another by writing on the back as follows:
Pay to the order of Thomas Brown. John Smith.
A check payable to “bearer” may be negotiated by any one. When such checks are presented by a stranger, at the bank of the maker, the paying teller always insists that the stranger be identified.
Never make a check payable to “bearer” if it can be avoided.
Sometimes checks are dated ahead, for reasons satisfactory to the maker and payee.
A check drawn on August 5th, but dated August 20th cannot be collected till the latter date.
Never date a check ahead unless you are positive that you will have the money in bank to meet it on the day named.
Never, if you can avoid it in trade, receive a post-dated check.
Cash or deposit your checks as soon as possible after they are received.
If the bank should fail, while you are holding the check, the maker cannot be held for the loss.
CERTIFICATES OF DEPOSIT
Often when a depositor is travelling, he finds it convenient to carry with him a form of paper that is as good as cash, and much better in the event of loss.
Banks will issue “certified checks” to depositors. These checks are stamped by the bank “certified” with the date and officer’s signature attached.
On issuing such a check, the bank debits the receiver’s account with the amount, and so can guarantee the payment whenever or wherever presented.
Such a check may be received with as much certainty of its value as if it were a bank bill.
When a person places money in a bank with no intention of checking it out for some time to come, he may have issued to him a “Certificate of deposit.”
While holding this certificate he cannot check against the money in the bank.
The holder of a certificate of deposit may transfer it.
The money may be paid in part by the bank, if the certificate is presented, and the amount is endorsed on the back.
To withdraw all the money the certificate must be surrendered.
USE OF CHECKS
There is no form of commercial paper in such general use as the check.
The total of all the checks in use at some seasons is far more than the total of all the money in all the banks.
Checks are balanced in the money centers through what are known as clearing houses. In these a bank is charged with checks against it and credited with those in its favor.
The differences are settled by cash.
Often a few thousand dollars will settle check accounts amounting to millions.
If by any chance you should receive a check in which your name is misspelled, or not given as you write it, endorse the check exactly as the name is written on the face, then add your name in the regular way.
While of National importance, savings banks are chartered by the respective states in which they exist, and as such are distinctly local institutions.
Unlike the National, the savings bank is not established as a money-making corporation.
The ostensible and actual purpose of the savings bank is to encourage people of small means to save.
The savings bank provides a safe place for the care of such deposits, and it pays such rates of interest on such deposits as are warranted by the earnings of its investments after paying the expenses incident to the proper conduct of its officers.
When a savings bank receives authorization to act, through a charter from the state, the organizers choose a board of directors and the proper officers.
Usually the officers occupying positions of trust and responsibility are required to give bonds for the proper discharge of their duties.
HOW BUSINESS IS CONDUCTED
With all the legal conditions complied with, and a suitable office provided, the savings bank is ready for business.
Some savings banks will receive on deposit any sum from five cents to five thousand dollars.
Other banks will not receive less than one dollar at a time, nor more than a thousand.
We have heard of “penny savings banks,” but they are rarely chartered, and are organized, only to encourage thrift among children.
Fractional parts of a dollar are not usually reckoned as drawing interest.
Some banks require as much as three, four or five dollars before allowing interest.
Savings banks in the eastern states pay from three to four per cent. In the west it is sometimes as high as six.
Each bank has certain dates at which calculation of interest begins. As a rule this is January 1st, April 1st, July 1st, and October 1st.
Money deposited at any time between these dates does not draw interest till the beginning of the next quarter.
But never mind the interest.
The best time to make a deposit is when you have the money.
The bank is safer than your pocket.
HOW TO DEPOSIT
Count your money carefully and make a memorandum of the amount before giving to the savings bank to deposit.
Hand the money to the officer—usually “the receiving teller”— authorized to receive it.
The teller writes down the name, age, occupation and residence of the depositor.
If money is deposited in the name of one under legal age, the names of the parents and the birthplace of the minor are also recorded.
The adult depositor must write his name in a book provided by the bank for the signature of clients.
When these conditions are complied with, the depositor receives a memorandum book, known as a “deposit book”, in which, with his name and date, is written the amount of his first deposit.
The deposit book must be carefully guarded, for without its presentation at the savings bank money cannot be drawn. You cannot check against your savings bank account, as with a commercial bank.
HOW THE ACCOUNT GROWS
After the first account is opened the rest is easy.
On the second, as on all subsequent visits, the deposit book, with the amount to be entered, is handed to the receiving teller. He counts the money, makes a record of it for his own use, enters it on your book as a deposit, and hands the book back. That is all.
Whenever interest is due it is written down in the book as if it were a cash deposit.
The interest, if desired, will be paid in cash, but if allowed to remain, it begins at once to earn interest for itself.
Interest grows like a rolling snow ball. On such small beginnings great fortunes have been built.
Savings banks keep a reserve, made up of earnings in excess of interest and all expenses.
This reserve earns money.
The money so earned is reckoned as a net profit, and it may be distributed, and usually is, among its depositors as a “dividend.”
THE LIMIT OF DEPOSIT
Different banks have different limits of deposit, that is fixed sums beyond which they will not receive.
The limit is from one thousand to five thousand dollars.
When the fortunate depositor has reached the limit with one savings bank, there is no law to prevent his opening another account with another, or with any number of similar banks.
Remember the savings banks are not meant for capitalists, but for small depositors.
After deposits and interests have reached a total of $1,600, the interest will not go on earning interest, but will be regarded simply as a deposit.
This is in compliance with law.
Depositors, posted as to the law, open another account with another bank, and keep on till the interest limit is reached.
HOW TO DRAW MONEY
A savings bank depositor may either draw money himself or through some properly authorized person.
This is the method:
The deposit book is presented to the paying teller. The owner states the sum he wants to draw.
Having assured himself that the bearer of the
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