Collection of Cash Items—Work of Day Force The day force sorts these items into the racks. The racks are divided into, say, five parts to correspond with the general divisions of the national bank ledgers of the check desk depart ment, that is, A-C, D-H, I-M, N-R, and S-Z. The packages from the above sections are distributed among these racks, each rack receiving the items going for collection to the bank's cor respondents in cities or towns whose initial letter is in its particu lar group. Each rack is practically independent and makes up its own proof for the day. A parallel division is made of the work of the analytical department. Certain clerks sort the checks of their rack into pigeonholes provided for each bank to which items are sent. Other clerks sort and prove, in small batches, such checks as come from the mail department in the morning mail. Still other clerks prepare the early letters for the bank's uptown correspondents; these letters contain all checks and drafts for small amounts, say, less than $500, payable in parts of the city not reached by the city collection department and received the previous clay or the same morning in time to be included in these early letters.
For ready reference as to the routing of checks a set of route books, one for each state, is kept, in which all banking points in that state are listed alphabetically. Opposite each point is writ ten the place through which it is collected, if it is not collected direct. As soon as the checks left by the night force have been sorted into their racks, the proper routings for those checks which are drawn on points where there is no regular correspondent are determined. When correct routings have been determined, all missorts are deducted from the charge to the rack, reassorted, and charged to the proper section.
Form letters are prepared in duplicate, the originals to be sent forward to the collecting banks with the items, and the carbon copies to be kept as a permanent record of the items handled. These letters contain the amount of each item, the name of the bank on which each item is drawn, and the carbon copy contains in addition the name of the indorser to the sending bank. As soon as all the letters in any particular section have been written, their totals are listed and the result proved against the slips on which the items were received, allowing of course for such deductions as may be occasioned by missorted items. When proof is obtained, the original letter is separated from the carbon copy and sent forward to the collecting bank with the items. The duplicate or carbon is retained as a permanent record of the items handled.
During the afternoon the transit department gathers from the other departments of the bank all the mail which they have addressed to banks, and this is enclosed in the outgoing letters, thereby saving postage. The afternoon work includes all large
checks, say, over $5oo, received during the day from the different tellers and from the uptown banks for which the bank collects, and also includes all checks which have been missorted in the transit department itself or other departments during the day.
It is assumed in this description that the transit department reaches the drawee bank through three channels: i. Through its own correspondents. The process of handling these items has been described above.
2. Through the country collection department of the clearing house. These items are deposited in batches throughout the day, are listed and described upon a special letter form, and the totals shown for items payable in different states; a due bill is received for the amount deposited and this is clearable on a certain morning after its date.
3. Through the federal reserve bank. These items are listed and described in the letter and a separate total is made for each period of deferred credit.
At the end of the clay the racks tender their separate proofs. These are combined in the general proof of the department, the credit side of which shows the amounts received through the various tellers, both in the morning and the afternoon, and the debit side shows the charges to all the ledgers, the charge to the city collection department for items sent there as missorts, and the items deposited in the federal reserve bank.
Collection of Non-Transit Items The non-transit country items include notes, time drafts, acceptances, coupons, dunning drafts, documentary items, such checks and sight drafts as the collecting bank wishes to know absolutely were paid, and such items as the collecting bank is unwilling to handle as cash. These collections are not credited to the accounts of the depositors until they are actually paid, and they arc sent forward with instructions to the collecting bank not to credit the sending bank's account until actual payment has been received.
The department handling these items is sometimes separated from the transit department and operated as the country collection department.
Items are received from the mail teller, the city collection teller, the note teller, the discount department, and the foreign division. A collection clerk from the transit department assists the mail teller with the morning mail and signs for all collection items on the incoming letters. They are entered and described in the collection register and stamped with the collection number as assigned them in the collection register. A memorandum is attached to each item carrying special instructions. Items from the afternoon mail and those received over the bank's counter are entered in the collection register by the note teller.