148. Collection Register

The items received from the various sources should first be entered on a collection register and given a number which should be plainly marked on the item. A numbering machine should be used for this purpose, and the number placed in a peculiar position, so that the bank's own number may be quickly recognized. The collection register is shown in Figure 118 on page 252. After entering on this register, the items are ready for endorsement. A very convenient rubber stamp may be used for this work, having a space a little wider than two lines of type left under the words "Pay to the order of" in which a small block having the name of the bank in rubber attached, may be inserted. Any good stamp maker will be able to make such a stamp. A small tray will hold all the small stamps the bank needs. One large endorsing stamp will be sufficient. Before endorsing the items, the small block bearing the name of the bank is inserted in its socket and the items endorsed with a single stroke. The items to be sent to another bank are then endorsed in the same way. Every item sent out can thus be endorsed specially as shown in Figure 119A on page 254. Some banks endorse items to the order of "Any bank, banker or trust company," as shown in Figure 119B. In this case a single stamp will do.

Pay to the order of

Farmers National Bank

Wyoming, Nebr.

Prior endorsements guaranteed.

Jersey National Bank, New York City.

a

Pay to the order of Any Bank, Banker or Trust Co.

Prior endorsements guaranteed

Jersey National Bank, New York City.

b

Figure 119. A And B Endorsement Stamps.

When reports of payment of items are received, it is necessary to make out charge and credit tickets and to advise the depositor of the credit to his account.

149. Collection Slip

A bank which does a very large collection business will find the use of a collection register and the necessary charge and credit slips and advice of credit, too cumbersome. A very ingenious labor saving scheme, known as the collection slip, has been devised. These slips are made up in pads or manila covered books, and are about the size of an ordinary check or draft. Four or five slips are allowed to a page, with perforations between each slip. There are three colors, one of white paper to be sent to the collecting bank with the item for collection, one of yellow, to be retained by the bank, and one of pink, to be used as advice of payment to the depositor. See Figure 120 on page 256.

These slips are numbered consecutively by the printer. The yellow and the pink slips bear the same number as the white slip. These numbers may and should be placed upon the items themselves, and will be a substitute for the collection number. By the use of two carbon sheets, three copies of the remittance letter are made at once. The entries on the collection ledger, which may be either skeleton or old style, according to taste, are made from the slips. The proof of the day's work may be made by running up the letters on the adding machine.

Foreign Collections Jersey National Bank

To.......................................................................................................................

Payer............................................................................. $................................

Where payable..................................................................................................

Date........................................ Time.................................. Due........................

Depositor.................................... No protest.

Date credited or returned.

Date........................

Figure 120. Foreign Collection Slip.

Jersey National Bank

Collection Department

New York City,....................19......

To................................................................

Have the following collections been paid..

Please reply hereon by Return Mail.

Figure 121. Request For Advice.

Figure 122. Letter Of Advice.

After the proof is made the original slips with the items securely attached should be enclosed and mailed. The yellow slips should be sorted in drawers according to the banks to which the slips are addressed, after any particular items have been properly tickled. The pink slips are assorted according to depositors. When advice of payment is received, the letters are taken to the drawers containing the yellow slips and the slips removed. The corresponding pink slips sorted according to depositors are also picked out and arranged with the others. A rubber stamp with a cancelling line is used to complete the data on both slips, as shown in the Figure. The yellow slip is handed to the individual book-keeper to post; if paid, the pink one is slipped in an envelope and mailed to the depositor. After the credit has been made to the depositor, the yellow slips are bound with the deposit slips for the day and filed. If the filing of the slips while in the process of collection is properly done, there is not a question but may be answered almost instantly with reference to any collection item or group of items.

An absolute and simple tickler could be installed in conjunction with this system by figuring how many days should be allowed for receipt of advice and filing the pink slips under their dates in chronological order instead of by depositors. Then after the day's remittances are checked off and slips removed, the slips remaining unadvised may be traced. For this purpose, a form letter of which Figure 121 on page 256 is a sample, should be sent out.