Bank account

“ Bankers make up their pass-books in two ways. When the customer is in account with the banker the cash he pays in appears on the right-hand side of his book, and the cheques he draws out on the left. The more general method, however, is to make the bank in account with the customer, when the debits and credits in the pass-book are an exact copy of the client’s own cash-book, whereas the entries in the bank’s ledger are reversed. ”

“ Is it the case that when a man who has a bank account wants a little money, he prefers to apply to the merchant for an advance to account of his next year's fishing, or of the present year's fishing, if it is during the fishing season, rather than to take it from the bank with which he has the account?-I believe it is. ”

“ This first step being taken, you open what is called a current or drawing account; that is to say, an account into which you can pay money whenever it suits you, and from which you can draw money at any time by means of orders, or cheques, as they are called. In a current account in a good bank money is kept safely—which is a great matter—and at the same time you can make use of it as readily as if it were lying in your pocket. ”

“ That, in 1911, more than one in every ten persons in the United States—counting all men, women and children—possessed a bank account, the total amount of these accounts being no less than $4,212,584,000. ”

“ Sir: To preclude any possible misunderstanding hereafter as to the character of the drawing account opened in your name, I am instructed by the Governors to communicate to you in writing that, in conformity with the rule of the Bank, the account is considered a personal one; that the Governors have admitted the words appended to your name merely as an honorary designation; and the bank take no cognizance of, or responsibility with reference to the real ownership, or intended application of the sums deposited to the credit of the account. ”

“ Therefore, the amount of any cash letter to a member bank is chargeable against available funds in the reserve account of such member at the expiration of such transit time, which date will be shown on each cash letter. ”

“ The object of publishing the account of the Banking Department of the Bank of England is to let the nation see how the national reserve of cash stands, to assure the public that there is enough and more than enough to meet not only all probable calls, but all calls of which there can be a chance of reasonable apprehension. ”

“ It is sufficient that the person to whom the money is to be remitted should have an account at the bank. Any person owing him money in the remotest parts of the empire may go to the office of the bank which is most convenient to him and pay in the amount of his debt, which is credited on the following day at the office of the bank, without charge, to the account of his creditor wherever he may reside. The person who makes the payment need not have any account with the bank. ”

“ In the succeeding pages, the effects of various transactions on the quantity of money are described and illustrated. The basic working tool is the "T" account, which provides a simple means of tracing, step by step, the effects of these transactions on both the asset and liability sides of bank balance sheets. Changes in asset items are entered on the left half of the "T" and changes in liabilities on the right half. For any one transaction, of course, there must be at least two entries in order to maintain the equality of assets and liabilities. ”

“ The principal part of the items on the credit side of said account consists of checks and drafts drawn by said Bank of the Metropolis on said Commonwealth Bank; each draft or check being indicated in the account by its number. ”

“ A general ledger, showing generally the accounts of the bank, including the account in totals of the deposits made and checked out daily; a cash book, giving each day's business; a daily balance book, which was a summary of the general ledger; these three books were kept by Schardt; and an individual ledger, which showed in detail the deposit account of each individual depositor, and was kept by a clerk, who had no other duties, and was known as individual bookkeeper. ”

“ A business man, in order to give himself every chance, will pay all cheques to the credit of his banking account upon the day he receives them from his customers. He has, in the legal sense, until the close of the first business-day following the day he gets the cheque, when, if he like, he can post it to his agent, who has the same time-allowance for presentment, provided the cheque be not drawn upon a bank in his own town. If he delay longer any loss incurred by the drawer through non-presentation will fall upon the payee’s shoulders. ”

“ Having disposed of the paying average credit balances we can now discuss those accounts that [42] have a large turn-over. A trader, for instance, who draws a considerable number of cheques during the course of a half-year, and whose balance is small, cannot expect his banker to work his account free of charge; but it is difficult to draw up a table showing what he ought to pay, for the simple reason that some bank-managers debit him with a rate which they think he will stand. A 1/16 per cent. commission, that is to say, 1s. 3d. upon each £100 he draws out by cheque, seems a very full rate ”

“ So when, without more, a bank receives upon deposit a check indorsed without restriction, and gives credit for it to the depositor as cash in a drawing account, the form of the transaction is consistent with and indicates a sale, in which, as with money so deposited, the check becomes the absolute property of the banker. ”

“ Some commercial banking products or services are so distinctive that they are entirely free of effective competition from products or services of other financial institutions; the checking account is in this category. Others enjoy such cost advantages as to be insulated within a broad range from substitutes furnished by other institutions. ”

“ According to the proposed law depositors will be able to dispose of the free balance of their account by payment-cheques or clearing-cheques.
At present the holders of the account books cannot have recourse to the cheque, nor transfer any sum from their account to that of another on a simple demand addressed to the Savings Bank. Every transfer resolves itself into an act of cession which must be signified to the Bank by a judicial act or notified by a letter bearing the legalised signature of the ceder. ”

“ Besides employing money in discounting bills, the Scottish banks grant loans of fluctuating amount, called cash-accounts or cash-credits. By a cash-account is signified a process whereby an individual is entitled to draw out sums as required, to a stipulated amount, and on an implied condition to make deposits at his convenience toward the liquidation of the same. On entering into this arrangement, he finds security to the bank that he will repay to the bank, whenever called on, the balance of sums drawn out, less those paid in, with the interest that may be due. ”

“ If the branch is a selling agency making sales for cash and on account, a modification of the system is necessary. Daily reports should be required from the branch. Its cash receipts should be deposited daily and a duplicate deposit ticket should be forwarded to the head office by the bank. The bank should be asked also to forward all canceled checks. All collections on customers’ accounts should be made from the head office. ”

“ There is a form of credit transactions (4) by checks on bankers, and transfers in a banker's books, which is exactly parallel in every respect to bank-notes, giving equal facilities to an extension of credit, and capable of acting on prices quite as powerfully. A bank, instead of lending its notes to a merchant or dealer, might open an account with him, and credit the account with the sum it had agreed to advance, on an understanding that he should not draw out that sum in any other mode than by drawing checks against it in favor of those to whom he had occasion to make payments. ”

“ No bank may declare, record in an account or pay to shareholders any portion of profits, or
make any transfer of profits, if such transfer or payment results in a reduction of its capital or
reserves below the minimum levels required under this Law or as required by regulation or
order of the CBI.
3. No bank may distribute profits to shareholders before extinguishing all expenses related to
the establishment and initial organization of the bank.
4. There is no limit to the amount of capital that can be placed in the bank in any given
calendar period. ”

“ Deposits may be made by two or more per- sons, provided no one of them has any other account in a Savings Bank, and by one person as trustee for another person. On opening an account a person has to sign a declaration to the effect that he takes no personal benefit from any other account in the Post Office Savings Bank or in a Trustee Savings Bank, and should this declaration not be true all sums so deposited will be liable to forfeiture. ”

“ SECTION 1—DEFINITIONS, AUTONOMY, OBJECTIVES AND FUNCTIONS
Article 1 Definitions
The following terms shall have the meanings set forth below:
“Appointing Authority” means the head of the Government.
“bank” means a person holding a license or permit under the Banking Law to engage in
banking business and other banking activities;
“banking business” means the business of receiving deposits of money or other repayable
funds from the public for the purpose of making credits or investments for its own account;
“Board” means the Board of Directors of the CBI ”

“ When any one would open himself an account in the bank, he goes there himself, and puts his signature upon a book to make it known, and they give him the page upon which his account shall be opened, which he ought always to place at the head of the billet, by which he pays.
They begin with debiting him with ten florins, once for all, after which he pays no more to the bank, but two sols for each bill that he writes, with which they debit him twice a year, when they make the balance of the books, viz. ”

“ Drafts may be “commercial” or “bank” according as the drawee is a merchant or a bank, respectively. B. V. Robbins’ draft on Perkins shown above is a merchant’s draft. A bank draft is a request by one bank on a correspondent bank to pay a given amount of money to a named payee. A customary method of remitting money is by the purchase and remittance of a bank draft, for the issuing of which banks usually charge a fraction of a per cent. To illustrate its use, take the following situation:
L. W. Roberts of Denver owes Field & Co. of Chicago $210 on account. ”

“ Occasionally a firm, which refuses to pay its debts on open account, will meet its notes and acceptances in an effort to bolster its credit at the local banks. This phase of the question does not usually enter into the discounting operation, where the credit of [Pg 379] the discounter is the determining factor in raising money. Of course, this may be only a temporary expedient if the note is dishonored and charged back to the bank. ”

“ A [Pg 304] special account should be opened, e.g., Notes Payable Special, Mortgage, or some other title plainly indicating the nature of the loan. Sharp distinction should be made between funds borrowed for the purpose of increasing the permanent capital, and money borrowed for current needs. The need for additional current funds usually results from seasonal fluctuations in business, slow collection of customers’ accounts, or slow movement of stock, and is met by current borrowing at a bank ”

“ They are simply cheques that men draw on a bank where they have no account. ”

“ These coins are not very valuable. Jack went out to get a napoleon changed, so as to have money suited to the general cheapness of things, and came back and said he had “swamped the bank, had bought eleven quarts of coin, and the head of the firm had gone on the street to negotiate for the balance of the change.” I bought nearly half a pint of their money for a shilling myself. I am not proud on account of having so much money, though. I care nothing for wealth. ”

“ We treat it, in this respect, exactly as the parties have treated it, that is, as a case where the notes have been paid and credited as cash. The notes have not been credited as notes, or as a special deposit; but the transaction is precisely the same as if the money had been first paid to the plaintiffs, and instantaneously the same money had been deposited by them. It can make no difference that the same agent is employed by both parties, the one to receive, and the other to pay and credit. ”

“ In accepting a note from a customer, do not have it made payable at your bank. Have the drawer make it payable in his own town and at his own bank. Demand for payment must be made at the exact place stated in the note. As every business man is particular about protecting his credit in his own town, and especially at his own bank, it is obvious that he will be most diligent about providing for the payment of paper made payable at the bank with which he is doing business. ”

“ But in discounting notes and managing its property in legitimate banking business, it must be able to assign or sell those notes when necessary and proper, as, for instance, to procure more specie in an emergency, or return an unusual amount of deposits withdrawn, or pay large debts for a banking-house, and for any 'goods and effects' connected with banking which it may properly own. It is its duty to pay in some way every debt. ”