A bank issuing certificates in the two forms first named is obliged to pay same whenever presented, but is under no obligation to pay a "time" certificate until the expiration of the period named in it.

A person to whose order a certificate is made payable may sell it or pass it on to some other party for collection by endorsing it, and when presented by such party, properly endorsed, should be paid by the bank issuing same, if due by its terms.

CASHIER'S CHECKS.

These partake somewhat of the nature of demand certificates of deposit, being vouchers for money deposited, issued in the form of a check drawn by the cashier on his own bank in the following form:

EXCHANGES FOR CLEARING HOUSE.

Where there are several banks in the same place, it happens, in the course of business, that the depositors of one bank will receive from their customers checks on other banks in the same place, and will deposit such checks, to be collected and placed to their credit. When this is the case, the banks usually form themselves into what is called a "clearing house," under an agreement to send a representative from each, to meet at a stated place on the morning of each business day, at a stated hour, for the purpose of “exchanging" all checks that each bank received during the previous day. The checks are separated by each bank and passed around until the representative of each bank has received all checks drawn on his bank. When this has been done, the amounts are added up, and if the total of such checks on his own bank exceed in amount the total of the checks on other banks brought by him to the "clearing house," then he is "debtor" to the clearing house, and must by a certain hour the same day produce the money to pay this difference. If, however, the checks on other banks received by his bank exceed in amount the checks on his bank, he is "creditor," and must later the same day receive money for the amount of the difference. It will be perceived that the amounts paid by banks that are debtor will be exactly sufficient to pay balances due to banks that are creditor.

CERTIFYING CHECKS.

Sometimes when the holder of a check wishes to be satisfied that it is good and will be paid by the bank on which drawn when presented, he takes or sends it to the bank and has it "certified." The check is usually presented to the paying teller, who stamps it "Good through the Clearing House, Blank National Bank," and signs his name.

LAWFUL MONEY RESERVE FORM.

The amount of the check is then charged to the account of the depositor drawing same, and the effect is to make the bank liable for payment of the check when presented for payment.

By way of illustrating how the lawful money reserve of a National bank, required to keep 15 per cent. of its deposits on hand, is computed, the following copy of the form used in the Comptroller of Currency's office is here given:

TREASGET DEPARTMENT.

LOUD COLLECT-Form 353.

Reports-16-1300-1,000.)

Bank Directors should bear in mind that Section 3191, U. S. Revised Statutes, forbids a Bank to increase its liabilities by now loans of discounts. or to declare any dividend when its Reserve is below the legal requirement.

FORM B.-CALCULATION OF THE LAWFUL MONEY RESERVE OF NATIONAL BANKS LOCATED ELSEWHERE THAN IN RESERVE CITIES AND CENTRAL RESERVE CITIES.

B.-If this accompanies a Report of Condition it should be signed by

If it accompanies a Report of Examination it should be signed by

ITEMS. ON WHICH RESERVE IS TO BE COMPUTED.
LIABILITIES.

o'clock. .m.

Cashier/

Examiner.

Dividends unpaid

Individual Deposits

United States Deposits

Deposits of US Disbursing Officers

Gross amount

DEDUCTIONS ALLOWED.

Checks on other Banks in the same place..

Exchanges for Clearing House......

National Bank Notes

Fifteen per cent of this amount

is the entire Reserve required, which 18........ Deduct 5 per cent Redemption Fund with Treasurer U. S.

Net Reserve to be held...

ITEMS COMPOSING THE NET RESERVE AND THE DISTRIBUTION OF THE SAME.

If reciprocal accounts are kept with reserve agents, only the net amount due from such agents is available for reserve.

sart oflarge will always insert in their Beports pf Condition one of these forms properly filled in, and Bank Examiners will do the same in their Report of Examinations