Cash register

“ No one, we hope, respects Stratford the less for having been a little wild. We all hate a milksop, you will agree.
XIX
A HUMAN CASH REGISTER
ACROSS the table from a lodger sits Mr. Fife. Mr. Fife is a clerk. This statement comprises, not inadequately, his memoirs.
When a man speaks to you of the useful piece of mechanism called a cash register, you comprehend him perfectly. You know what a cash register is, for what purpose it was designed, how it looks, how much approximately it is worth, what it will perform, and what it will remain—a cash register. ”

“ For example, during certain days of the month, such as pay day and the first day upon which coupons are issued, it is manifestly impracticable for us to make out a sales slip for each cash or coupon purchase because there are so many five and ten cent purchases that the cost in time and labor involved in such a method would outweigh the advantages gained. If the average sale amounted to a dollar or so, it might pay us to use sales slips similar to those used in recording our charge sales. Therefore, most Exchanges do not require cash or coupon sales to be recorded except on the cash register. ”

“ It thus enables the proprietor to ascertain at the close of each day's business the amount of sales, and also operates as a check upon the dishonesty of clerks, who are held accountable for the amount of money indicated by the register. ”

“ If the amount of such sale is a dollar and a fraction of another dollar, two such tablets are exposed, the aggregate of which represents the proper amount. It is necessary in each case that the tablet should remain exposed until another key is touched, when it ought to disappear, that the next customer may recognize the amount of his purchase. The customer is thus made to a certain extent an involuntary detective of the action of the clerk making the sale.
(4) The pressure upon the key should also ring a bell, to call the attention of the customer to the exposed indicator or tablet. ”

“ Where several bank accounts are kept and a check register—in addition to the cash book—is used to keep record of the accounts with the various banks, it may happen that checks drawn on one bank are wrongly charged to another; that checks drawn, or deposits made one day, are not credited until the next; that certain drafts deposited with the bank for collection are not credited to the depositor’s account until collection is made, whereas the depositor debited the bank at the time of the deposit ”

“ In their more elaborate forms these cash registers may have a separate money-drawer for each assistant employed in the shop, thus enabling the proprietor to ascertain how many customers each man has served and how much money he has taken, and also to fix responsibility for mistakes, bad money, &c. ”

“ The merchant of today has a variety of wondrous mechanical contraptions—not only cash-carriers but cash-registers—which do the work they once did, much more rapidly and efficiently. [Pg 35] Even in those long ago days of the 'eighties the Macy store was beginning to install pneumatic tubes for carrying the money from the saleswomen at the counters to the high-set booths of the head cashiers, who seemingly had come to regard it as a mere commodity, to be regarded in as fully impersonal a fashion as boots or shoes or sugar or broom-sticks. ”

“ Cash Registers, intended to compel honesty on the part of retail salesmen, are required to be operated by them, and when the proper lever, or levers, or it may be a crank handle, is or are touched, the machine automatically records the amount of the sale, the amount of change given, and the total amount of all the sales and money received and paid out. ”

“ In the ultimate analysis the best safeguard is the integrity of the employee; still the employer should not tempt the employee by making the abstraction of his cash an easy performance.
Principle of the Double Record.—A fundamental principle in the handling of cash is to secure a double—not a duplicate—record of its receipt and disbursement. The practice of depositing in a bank all cash receipts and making disbursements only by check should be followed invariably, because it secures this double record—the bank’s record and the cashier’s record. ”

“ A private individual usually feeds his purse from his bank account; a retail commercial firm usually feeds its bank account from its till. The bank acts as intermediary for both.
In a given community the quantitative relation of deposit currency to money is determined by several considerations of convenience. In the first place, the more highly developed the business of a community, the more prevalent the use of checks. Where business is conducted on a large scale, merchants habitually transact their larger operations with each other by means of checks, and their smaller ones by means of cash. ”

“ We are very much inclined to think that the endorsement of notes, like the present, for the use of the bank, falls within the ordinary duties and rights belonging to the cashier of the bank, at least if his office be like that of similar institutions, and his rights and duties are not otherwise restricted. The cashier is usually intrusted with all the funds of the bank, in cash, notes, bills, &c. ”

“ The whole of the deposit and current account side of banking—with its services in the way of keeping securities, collecting dividends, meeting calls, making regular payments, and carrying through the purchase and sale of securities—ought to be united with the Post Office and Trustee Savings Banks and the money order and other postal remittance business, and run as a national service for the receipt and custody of cash, for the utmost possible development of the cheque system, and for the cheapest possible organisation of remittances. ”

“ 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. ”

“ If I should deliver to the American jobber my check today, and he should send his check to the American importer and the American importer should send a draft to the English exporter, and the English exporter should deliver his check to the wholesaler, and the wholesaler should send his check to the manufacturer, debts amounting to $88,000 would have been paid and credit amounting to $88,000 would have been canceled; and yet not a single cent of cash in the form of coin or currency has been used. ”

“ If the cheque is paid into a different bank, it will not be presented for payment, but liquidated by set-off against other cheques; and in a state of circumstances favourable to a general extension of banking credits, a banker who has granted more credit, and has therefore more cheques drawn on him, will also have more cheques on other bankers paid to him, and will only have to provide notes or cash for the payment of balances; for which purpose the ordinary reserve of prudent bankers, one-third of their liabilities, will abundantly suffice. ”

“ Where goods are going by express or freight, the buyers usually make use of a purchasing card. They are provided with check books, and, as they visit the different departments and make their selections, they make out a check in duplicate for each purchase, leaving both with the salesperson. The top check is sent with the goods to the mail-order sorting section, and the duplicate is sent to the cash office, just the same as though it were actual money. ”

“ In either way it was a legal proceeding, effectual and perfect; and as no reason exists for a different construction, we think that the parties, by treating it as a cash deposit, must be deemed to have considered it as paid in money, and then deposited; since that is the only way in which it could legally become, or be treated as cash. Nor is there any novelty in this view of the transaction. Bank notes constitute a part of the common currency of the country, and, ordinarily, pass as money. When they are received as payment, the receipt is always given for them as money. ”

“ Each knitter has an account current with the firm, the debit side of which contains the amount of the goods and worsted furnished, the credit side the amount of articles of hosiery returned, and the sum allowed for each. The book seems to be well enough kept, and each account bears to be balanced from time to time. No signature is attached to the balance. The entries of tea are numerous, frequently more than one parcel being given in one day. Those of cash paid are very rare; in many accounts there are none. ”

“ In recording business transactions, therefore, prudence demands that the costs of operating the business be not recorded as increases in the value of the merchandise dealt in, but rather that they be set up separately and charged against the income received from the sale of the merchandise before the increase (or decrease) in the value of the assets is determined and made a part of the asset record. As merchandise is converted into cash the amount received is recorded as an increase in the asset cash. ”

“ Less than a hundred notes make a package of "odds." The "odds" arising from a day's count are delivered to "odd" counters, who mass them into full packages. Each counter, having finished this portion of her work, enters, in duplicate, upon a leaf of the blank book furnished her for this purpose, the various items into which she has divided her cash, and delivers this with the money to the teller. He takes an inventory of the amount by straps, and finding the counter's statement to be correct, tears off the half leaf on which the duplicate account is made, and signs the original as a receipt. ”

“ The claims against customers, both on note and open accounts, constitute an intermediate step in the conversion of merchandise into cash. At the time credit is extended to a customer it is expected that he will pay the amount due. The experience of every business man shows, however, that during each period there is a shrinkage in these claims due to some customers failing to pay the amounts they owe. ”

“ When we receive the cash for the men’s notes at pay day, we credit “Mr. Bills Receivable” with the amount taken in, thus clearing him of this amount and making him no longer responsible for it. We have previously, of course, entered this amount on the debit side of the Cash Book, for the same reason noted above. When the coupons are presented by the men in payment for articles purchased by them, we credit “Merchandise” (or the proper department of the Exchange, if departments are used) with the amount taken in. ”

“ The excess of deposits for unascertained duties was paid to the merchant by the cashier for the collector, and was not charged on the cash-book. And by the circular from the comptroller's office he was directed to enter upon the debit side of his accounts the whole deposit made by the importer, which would be balanced by the ascertained duty, and the excess paid back to the importer. ”

“ Therefore, when a bank notifies you that it holds your note, or a draft drawn on you, for collection, bear in mind four points. First: the bank must follow the instructions of the sender or owner of the paper. Second: it can not disregard the law. Third: you are benefiting yourself more than the bank by paying your paper promptly. Fourth: the bank is taking a risk every time it accepts anything other than actual cash for a collection. ”

“ The cashier's window was closed, and behind the glass this notice was pasted up:
"Depositors are hereby notified that owing to the unexpected run upon this bank, no further payments will be made until the more available assets are converted into cash." ”

“ A central cash office is established for receiving all receipts from sales made, and arranged for quick and easy change-making. As a customer makes a purchase, a duplicate of the check or bill made out for the same, together with money received from customer, are sent direct to the cash office, the most improved method being by pneumatic cash carriers. ”

“ Nothing can be held over without risk, no matter how heavy the day's work. The rule in every bank is to clean up all the work on the very day it is received. None of this daily balancing of cash, or books, can be commenced until the last check has been cashed, the last depositor has come in, and the last payer of a collection has settled. For instance, the payment of a single draft or note after banking hours, necessitates the holding open of several sets of books or the erasure and changing of various totals by the bookkeepers. ”

“ The Special Journal a Labor-Saving Device.—This use of the journal can also be made in connection with other transactions, with similar great saving of labor. Throughout the day in every business there is a large number of cash transactions—receipts and disbursements—which require a debit and credit record. Also purchases of merchandise, although not numerous for any particular day, comprise a large number of entries during the course of a month or year. ”

“ It is stated by competent witnesses that a cash book, a journal, and a ledger are indispensable books of account for an efficient system of accounting, and that, in the smaller shops, even simpler entries showing merely the daily records of sales and record of purchases of merchandise would be sufficient. ”