2. About the loth of each month a list of foreign acceptances and another of dollar acceptances are prepared, and copies are given to the bookkeepers to be checked with the book entries. These lists are marked from time to time with the date on which the bills are to be delivered or mailed to the customers.
3. A list showing the daily requirements of the following month is prepared, copies of which are sent to the traders and to the derk in charge of the position sheets in order that cover may be provided when due.
Preparation of the Tickets As explained above, the amount of each new credit issued is charged in a memorandum book to the Commercial Credits Issued account, which constitutes a contingent liability for the bank. Credits paid in advance, however, are not so charged but are credited to the correspondent's account or to the account Sundries—Commercial Credits. This is the procedure in all straight credits, but some variations are introduced in handling the less common types of credits.
When acceptances are made under letters of credit tickler slips are prepared, containing the maturity dates and details for entry in the ticklers. The tickler slip for an acceptance under a foreign currency credit would have the following data: the date of the ticket charging Customers' Liability account, the com mercial credit number, for whose account, the dollar amount, the commission per cent, the New York maturity date, the foreign maturity date, by whom accepted, and their commission per cent. The tickler slip for an acceptance under a dollar credit would have the same data, except that contained in the last three entries, and would also have the acceptance number affixed to the draft at the time of accepting.
When notice is received of an acceptance made by correspond ents under letters of credit in foreign currency, tickets are pre pared (Figure 44) charging Customers' Liability: Acceptances of Foreign Banks under Commercial Credits, and crediting Accept ances of Foreign Banks under Commercial Credits (the Corre spondent Bank). The tickets covering the bank's actual liability (as contrasted with the contingent liability arising when the letter of credit was issued) are made out in the following manner : Since the war the conversion rates have, of course, been very much lower than those given above and the method of quotation has been changed to cents per franc, lira, or mark. 'When the
above tickets go through the bookkeeping department the amount of each draft is credited to Commercial Credits Issued, Foreign Currency, thereby reducing the bank's contingent liability as its actual liability is increased by accepting drafts under the credits.
When a draft is accepted under a dollar credit issued by the bank, tickets are prepared charging Customers' Liability : Accept ances of This Bank under Commercial Credits, Foreign, Import, and crediting Acceptances of This Bank under Commercial Credits, Foreign. The last account constitutes the bank's actual liability under dollar credits. The tickets (Figure 45) are drawn up in the following form: As the above tickets go through, the amount of drafts ac cepted is credited to Commercial Credits Issued, United States Currency, thereby reducing the bank's contingent liability under dollar credits as its actual liability increases through drafts accepted.
When a draft issued in foreign currency matures in New York, a bill is sent to the customer for its amount, converted at the pre vailing check-selling rate on London, Paris, or elsewhere, as the case may be, plus the bank's commission. The New York ma tu_rity date is about two days prior to the foreign maturity date. About twelve days prior to the foreign maturity date, the bill is sent to the customer for the amount of the draft converted at the check rate. The bank allows a certain return commission to the guarantors for guaranteeing the performance of the obligation. If the importer maintains an account with the bank, that account is charged, unless there are other instructions; if not, remittance must be•made in New York funds.
Bills covering dollar acceptances are mailed or delivered a few days before maturity and are payable one day before maturity. This is done in order to insure prompt receipt of funds; otherwise the department must carry such items in an account Advanced to Customers, Foreign Shipments, when they are presented for payment.