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in order to correspond, should be done in a manner which is indicated on pages 60 and 61. The private balance, to be written at the the top of the next page of stubs, will be, in this case, $6,177.54 $1,808.51 $4,369.03, or precisely the same as if the check had not been missing. If, instead of one missing check, there shall be several, the manner of balancing the check-book will be the same, except that the sum-total of all the missing checks (the memorandum giving their numbers) must be deducted, and subsequently reentered upon the stub.

In case of the accidental destruction or permanent loss of a check which has been drawn by the depositor, the fact must be noted in the check-book, either by erasing the amount of the lost check (making proper memorandum upon the stub), so that the amount will have no effect upon the balance, or by deducting the amount of the check from the balance, and noting that the check has been destroyed.

When a check which has been deposited has been returned to the depositor's bank dishonored ("N. G." or "No account"), the bank should give immediate notice to the depositor to make the check good. This may be done by the depositor going at once to the bank, drawing her own check to the order of the bank for the amount of the dishonored check, and exchanging the checks with the bank, afterward taking the necessary measures to collect the amount from the drawer or indorsers of the dishonored check. In this manner the balance in the check-book will be made to correspond with that at the bank, without other calculation or memorandum than that upon the stub of the check which makes good the dishonored one, since the bank will not charge the dishonored check against the depositor. Instead of this method of making dishonored checks good, banks often charge the amounts of the dishonored checks against the persons who have deposited them, giving the depositors notice of the facts. In such a case, the balance at the bank will necessarily be less than the balance in the check-book by the sum-total of the dishonored checks. In order to correct this discrepancy, the amount of the dishonored checks

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$4,005.45 $216.66 $3,788.79.

must be deducted from the sum of the deposits in the checkbook. To illustrate such a case: Suppose that the check of John Roe & Co., deposited October 10, 1896 (page 58), has been returned not good, and that the amount, $216.66, has been charged against the depositor by the bank. When the bank-book has been balanced at the bank the balance will be The check-book must therefore be balanced in the following manner from the sum $8,633.78 deduct the amount $216.66, with the memorandum "less check of John Roe & Co., deposited Oct. 10th, returned N. G., and charged against me." This will make the sum of the deposits $8,633.78 - $216.66 = $8,417.12, and the balance in the check-book, $8,417.12 $4,628.33= $3,788.79, which corresponds with the balance at the bank.

When all the checks in a check-book shall have been used, and nothing but the stubs and covers shall remain, for the purpose of making the book more compact, the covers may be cut off to fit the stubs, and the book laid away for safe keeping with all the vouchers which belong to it. This proceeding may be facilitated by having the bank-book balanced at such a time as to include all the vouchers belonging to it, and no others. The old check-book and its vouchers will then be complete and the account in the new check-book should be commenced by writing at the top of the first page of deposits the amount of the bank balance, with the memorandum, "balance from old check-book," the first check being numbered in continuation of the old book.

If the bank-book has not been balanced at such a time as will exactly complete it (some checks still remaining out, or some of the checks from the new bank-book being included in the balance), the account in the new check-book must be commenced by carrying over, from the old book to the respective pages of the new book the sums of the stubs and deposits, in each case with the memorandum, "from old check-book."

It is the desire of the author that this chapter shall be found to contain all the information, with regard to transactions between banks and depositors, which may be necessary,

and nothing more. Nevertheless, the chapter would be closed with somewhat of reluctance did the author fail to call the especial attention of his readers to the importance of keeping their checks at all times, and under all circumstances, perfectly good. And such a suggestion appears to be necessary because of the prevalence, and it may be the increasing, of a tendency to regard the dishonoring of bank checks, especially if from accidental causes, as common occurrences which may be easily explained to the satisfaction of all except over-punctilious persons.

The dishonoring of a check not only injures the reputation of the drawer with the holder of the check, but publishes the drawer to all the indorsers, and to the banks through which the check may have passed, as a person whose check is worthless. To such persons as may require statements of a so-called practical nature, it must be said that such occurrences as the dishonoring of bank checks which have been drawn by them will amount to real injuries, that they will often work actual losses in the businesses of the drawers, that such occurrences will not pay; and to such persons as are wont to consult first of all their own acute sense of honor, a sufficient statement will be that the dishonoring of their checks, even if known by none except themselves, will not fail to result in self-reproaches which will be difficult indeed for them to endure.

CHAPTER III

SAVINGS BANKS

S has been suggested, at the beginning of the preceding

chapter, savings banks are, properly speaking, benevolent institutions, organized for the purpose of encouraging the saving and accumulation of money. Hence, in theory at least, if perhaps not always in practice, extraordinary precautions are taken by savings banks to guard against loss of funds, and all profits, over and above economical and necessary expenses, are paid to the depositors in the form of interest.

Such being the facts, savings banks are pre-eminently the institutions of the poor. In them the periodical savings of the industrious poor are deposited, in sums which are too small for other investment; and, adding year by year to their deposits the results of their frugality and self-denial they are able, with the aid of the interest paid by the savings banks, to accumulate amounts which are large enough for investment in more permanent and profitable manners.

Thus it is that savings banks may be said to have opened for the poor the road to competence and fortune; and thus it is that many a deserving family has been lifted from poverty to comfort, many a man or woman from vagabondage to respectability and thrift.

Institutions of this kind, wisely and properly managed, are therefore to be considered of the greatest value and benefit to mankind, and should indeed receive the constant and hearty encouragment of all good citizens. Nor should it be forgotten that truly good men have passed, unappreciated by

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the many, to their graves, with the sure consciousness that, rewarded only by their own placid reflections, their lives have been spent in the fostering and managing of successful savings banks.

But what language can fitly describe the reverse of these happy results? What of the savings bank which has been mismanaged and brought to failure and ruin! From the grandeur of benevolence, it sinks into a terrible and immeasurable evil. Confiding thousands find their traditions shattered and themselves betrayed. The trusted refuge has become in effect a den of robbers - robbers of the poor and of the artless. The miserable results can scarcely be exaggerated. Poverty, hunger, starvation, despair, insanity, suicide, murder— these may make up the awful train which follows in the wake of a ruined savings bank.

For such important reasons, the law generally undertakes to exercise great care in regulating and directing the management of savings banks. They are organized under the laws of the States in which they conduct business, and all persons are forbidden to transact the business of savings banks without the permission of, and the strict compliance with, the statutes. The laws of the various States, in this respect, are not entirely uniform; but in the more careful and conservative of the States the following regulations may be considered to apply in a general manner :

Specified numbers of incorporators are required, and their characters and responsibilities must be satisfactory to the authorities. The amount of deposits which a savings bank may receive from a single individual or corporation is limited, in order that funds of the bank may not become too large for advantageous investment. Speculation with the funds is strictly forbidden. Loans upon personal security, dealing in promissory notes, bills of exchange, and general merchandise are not allowed. Investment of the funds is restricted to United States bonds, the bonds of certain States, cities, counties, and villages, and mortgages upon real estate (usually not to exceed a certain proportion of the actual value of the real estate). They may own such real estate as is necessary

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