Classes of Records The books kept in any bank are of two general kinds: (I) the corporate records, and (2) the financial records.
The corporate records are those kept by every corporation, and are born of the fact that the bank is a corporation. They include the stock ledger, the minute book, the stock certificate book, and the stock transfer book.
The keeping of these is not an essential part of the general bookkeeper's department; in fact, few of them are usually kept there, though one commonly kept there is the stock ledger or register. In this register is kept a record of the date of transfer of stock, the canceled certificate number, the new certificate number, the number of shares of stock, to whom transferred, and the date of cancellation; an account is kept for each stockholder of record, and the sum total must equal the Capital Stock account in the general ledger of the bank, that is, the amount of capital stock authorized and issued.
The stock transfer journal, which is kept only by banks whose stock is active, contains a record of the transactions day by day and is posted into the stock ledger. The stock certificate book consists of stock certificates and stubs giving the name of the stockholder, date, number of the certificate, number of shares, name of the transferor, and the signature of the transferee. If the bank acts as its own transfer agent, these books, together with the stock transfer book, may be handled by the transfer department.
The minute book contains a chronological record of the cor porate affairs of the bank. It is kept by the cashier, who acts as secretary of the board of directors and records all matters trans acted by the board, such as the election, terms and compensation of officers, the issue of capital stock, the declaration of dividends, the amendment of the by-laws, the passing upon loans, the votes on important motions, resolutions adopted or rejected, reports on examinations, etc.; the stockholders' meetings are also recorded in the same manner.
The financial records are the second kind of books. These records are in a sense divided into three groups. In the first
group are the books of original entry and ledgers found in the various departments of the bank and from which the department proofs are prepared. In the descriptions of the various depart ments discussed in this and the following volumes each book has been described and its place in the department shown. For in stance, in the customers' securities department were found the securities received book, the securities delivered book, the bond number book, the order book, and others, and their uses were explained.
The second group of books is used in connection with the work of the check desk department, where the accounts current, both personal and impersonal, are handled and various debits and credits to the several accounts are made.
The third group is kept by the general bookkeeper's depart ment and consists of the controlling books of the bank. The first and second groups are antecedent, preparatory, and adapted to these controlling books. The whole process is one of concentra tion and summation into the general ledger of the bank. The division of the books between the check desk bookkeepers and the general bookkeeper as described in this volume is, of course, so arranged because it facilitates the work, and it is a common arrangement in the large metropolitan banks; in smaller banks the books would all be kept in the general bookkeeper's depart ment.
Organization of the General Bookkeeper's Department The general bookkeeper's department must be handy to the active departments of the bank and to the cashier; inquiries come all day long to the general bookkeeper from the department heads and bank officials, for information about matters which are in the general bookkeeper's custody. It is, therefore, neces sary that this department be located within easy reach of the more frequent inquirers. If a large department, certain statisti cal, filing, and other subdivisions of its records which are less frequently referred to, may be located in more out-of-the-way places.