FOREIGN COLLECTIONS Classification of Foreign Collections The collections handled by the foreign division divide them selves into two distinct classes—those payable inside the United States and those payable abroad. As the methods of handling them differ greatly it is the common practice to allot them to different departments. The names of the two departments vary among the banks; one bank may call them "incoming collec tion department " and " outgoing collection department," another "import collection department " and " export collection depart ment." Neither of these nomenclatures is altogether fitting. In this chapter collections payable inside the United States will be called "home items" and those payable abroad " foreign items," and the operations in collecting the two kinds will be described in that order.
The Collection of Home Items The collection of home items covers the handling of those drawn on domestic parties and sent to the bank by its branches, correspondents, or others, for collection, and the placing of the proceeds according to instructions in their remittance letters. Most of the items are received through the mail, a few only com ing over the window. Where the depositor has an agent or branch in the city, its out-of-town items may be sent through the incoming collection department. The items are of three classes: (1) cash items, (2) collection items, and (3) discount items, the handling of each class having its own peculiarities.
In summary, the work consists in checking the incoming mail and marking the remittance letters for cash, collection, and dis count items; making proper entries and sending proper advices; preparing the bookkeeping tickets; putting the items into the hands of the proper department of the domestic division for col lection; receiving the remittance and making proper disposition of the funds; and making any investigations that may be asked by customers as to the course of some remitted item.
The internal organization of the department is affected by certain facts contrasted with the collection of the foreign items.
The department is concerned almost wholly with incoming mail; it prepares no remittance letters, but sends its items to the transit, country collection, and note teller's departments. The incoming mail comes very irregularly, as the steamers arrive. The depart ment must, therefore, be elastic and mobile, and be able to con centrate its whole attention at certain times on checking and getting a batch of mail under way. In early morning, also, many of the clerks may assist the regular mail checkers, and later turn to their specialized work. Since the items are in dollars and against domestic concerns they may be entered with much less detail than the foreign items.
A useful expedient to handle the items may be their division into the three classes of cash, collection, and discount items; or their division on a functional basis among the following clerks: a regular item clerk, a special and documentary item clerk, a pro test and unpaid item clerk, a discount clerk, an entry clerk, a drawees' book clerk, a credit advice clerk, a credit ticket clerk, a duplicate clerk, an overdraft clerk, a customers' card derk, and mail checkers. The same clerk may, of course, perform several of these duties.
The Handling of Cash Items Cash items comprise the following subdivisions: 1. Items drawn on the bank by other parties.
2. Clearing house items, that is, items drawn against mem bers of the local clearing house and collectible through it.
3. Large sights, that is, items which are drawn at sight against concerns located in the district of the city collection department, for an amount of, say, $1,000 or more, and which therefore warrant immediate collection by messenger.
4. Small sights, that is, similar items for amounts less than $1,000.
5. Treasury items, which are items drawn at sight against the Treasurer of the United States and are collected through the federal reserve bank.