such investments are usually made in the general journal, although some companies use a special investment journal, the general arrangement of which is similar to the loan journal shown in Figure 163, separate columns being provided for Bonds, Stocks and Sundry Investments. The total amount of investments at any time is shown in the investment account or accounts in the general ledger. Sometimes all investments are carried in one account, and sometimes separate accounts are carried for bonds and stocks. The detail of investments should be shown, except in small companies where the number of investments is small, in an investment ledger, which may be either in book or card form. Figure 201 shows the face and Figure 202 the back of a card form for this purpose. The face is devoted to a description of the securities and the ledger account, while the income record appears upon the back. Book records are in use which follow much the same form, the upper part of the page containing the matter shown on the face of the card, and the lower part of the page providing for the income record. These records may be kept, according to local conditions, either by the general bookkeeper, the loan clerk or a junior officer.

CLEARING CHECKS.

Trust companies, not being members of the clearing-houses (except in a few instances, as in Chicago), clear their checks through local national or state banks which are members of the clearing-house, and which act as their agents for that purpose. There are a few instances in which trust companies, having no arrangements for the clearing of checks through the clearing-house, are compelled to collect such items in the old way, by their own messengers. This is the case with those trust companies in New York which have withdrawn from the clearing-house privileges, and with Philadelphia trust companies.

The clearing-house items are listed to the different local banks in the same way that members of the clearing-house list them-on large sheets having columns for the listing of checks under the names of the banks on which they are drawn. Figure 203 shows such a sheet. These sheets are usually bound in book form, and each alternate sheet has perforations between the columns, so that the lists for the different banks may be torn out and delivered with the checks listed thereon. A piece of carbon paper is placed between the first and second sheets, so that one listing of the checks makes two copies. The first sheet remains bound in the book, and is a permanent record of the out-going "clearances." In the last column, headed "Sundry Items," are gathered the totals of all the other lists on the sheet; and this list of totals is sent to the clearing bank with the checks and the separate lists.

COLLECTIONS.

While trust companies do not ordinarily handle the volume of collection business that regular banks do, they find it necessary, if doing a commercial banking business, to take care of such collections as are brought to them by their depositors. For this purpose they do not, however, usually maintain specially equipped collection departments, but handle their out-of-town collections through the banks which act as their representatives in the local clearing-houses. Local collections are sometimes handled in the same way, but more usually are collected by the company's own messengers.

As soon as an item for collection is received it is entered on the collection register, and given the number indicated by its entry on the register. There are two general forms of this book, one being designed for "foreign" or out-of-town collections, and the other for local collections. Figure 204 shows a form for the former, and Figure 205 for the latter. In cases where the number of collections is small, or where they are mostly foreign, the use of two forms is unnecessary, that shown in Figure 204 being readily adaptable to both kinds of collections. Sometimes, where the business is very large, a special form of register is used for sight drafts.

Time collections should be entered also in a tickler, under their due dates. The tickler may be a card form, such as has already been described (see Figures 24, 25 and 26), or it may be a bound book. Figure 206 shows a common style of collection tickler in book form. It differs little from the discount tickler shown in Figure 195, and the same book may well be used for recording maturities of both discounts and collections.

Having been entered in the register and the tickler, time collections, if local, are placed in the files awaiting presentation for payment at maturity; and if out-of-town, are sent to correspondents for collection if the due date is near, or if the due date is distant are placed in the files until near maturity. Demand collections are collected or sent for collection at once.

Number

Greenwood, Wis. Nov. 21- 190

We enclose for collection and credis, items as stated below:

ITEMS MARKED X NO PROTEST. DO NOT PROTEST ANY ITEM under Ten DOLLARS.

DRAWER

4844 | AMMA

FIG. 207. REMITTANCE LETTER.

LETTERS OF REMITTANCE, ETC.

Trust companies in towns where there is no clearing-house of course collect their local items by messenger. Their out-of-town items, both cash items and collections, are usually collected through their correspondents in clearing-house cities, but in some cases are sent direct to banks located in towns where the items are payable. The letter forms used for listing the items are generally in bound book form, the alternate leaves being perforated so as to be easily torn out. A sheet of carbon paper is inserted under the perforated leaf, so that when it is torn out to be sent with the items listed thereon, the next sheet contains a copy of the letter. These copies remain bound in the book, and furnish a permanent record of remittances, thus serving in place of the old-time

remittance register. This plan is an improvement over the old one of having all such letters copied in the letter-press. Figure 207 shows a form of such a letter. If it is used for cash items, the letter starts with the words, "We enclose for collection and credit," as in the figure; if for collections, the word "returns" is substituted for the word "credit" in this sentence. In all other respects the same form serves for the two purposes. Figure 208 shows another form of remittance letter that is being used extensively by the smaller companies. The sheet is perforated along the line shown at the right of the figure, and on the reverse side of the portion of the sheet to the right of the perforation, is printed a duplicate of the matter shown under the heading "Valley Park Trust Company." In listing the items the end of the sheet is folded over along the perforation, so that by the use of carbon paper two copies are obtained of the matter listed under the last two headings, “On" and "Amount." The end of the sheet is then torn off, and serves as the remittance letter. By this plan a complete description of each item is made

for the records, while only the essential part of the matter listed appears on the letter sent to the correspondent. This form may be used either permanently bound or in loose leaves.

Figure 209 shows a form used for reporting on and remitting for collections. Unpaid items are listed at the bottom, as shown in the figure. To each item returned unpaid is attached a slip like that shown in Figure 210, giving the reason for non-payment.

When an item sent for collection is not heard from within a reasonable time, an inquiry is mailed to the bank to which such item was sent. The form-called a "tracer"-used for this purpose is usually printed on a postal card. It is shown in Figure 211.

OFFICIAL CHECKS.

Checks issued by a bank against itself are known as "cashier's checks." Similar checks issued by a trust company are called "official checks" or "treasurer's checks," and, sometimes, "cashier's checks." Fig