The corresponding credit tickets are next prepared, together with the advice of payment. On these are entered the charges to be deducted, namely, the bank's commission, the correspondent's commission, stamp charges, discounts, authorized deductions, cable charges, and exchange charges. The payment advice is dated as of the date the account is charged. Credits are put through for the client's account, Commission account, and for the other charges. The advice is then referred to the bill register, and the corresponding number and amount are stamped "paid." The date of advice of payment is also entered, as well as the corre spondent's collection number if one is mentioned. If an account is to receive credit, the advice is sent to the client without further notation; but if a cashier's check is sent in payment the check must be checked against the corresponding advice. All such advices are then sent to the outgoing mail department.
When the bank receives from its correspondent, in payment of collections, a check drawn on New York, it is essential to ascer tain, prior to making payment, whether the check is good. Some times in accordance with the request of a client that the bank be advised by cable when an item is paid, an advice to this effect is received from a correspondent or branch.
When the proceeds of collections are to be paid to the client by cashier's check rather than by crediting his account, the checks are prepared. If more than one payment is to be made to a single concern, the tickets are totaled and one check is given for the total amount.
Items returned by a correspondent or branch unpaid are turned over to the payment clerks, who debit the account of the parties to whom the item is returned, provided they have an account with the bank, for the charges abroad and for the bank's commission, and credit the account of the correspondent and the Commission account. When the concern to which the bank must return unpaid items has no account with the bank, a different form of ticket is used to signify that the bank is to receive cash or a check from these people. These tickets are held until the funds are received, when they are put through in the regular way.
The returned tmpaid items are stamped off the bill register book by putting in the "fate" column the date when the item was returned unpaid; and the items that have been paid are stamped off by entering the date of payment, the date of the advice of payment received from the correspondent, and the correspondent's collection number.
The client is advised of items unpaid or unaccepted and re tained for further instructions, and is requested to send immediate instructions. When the necessary instructions are received the correspondent is advised accordingly. Items unpaid, or unac cepted, and returned by the correspondent, are returned to the client, with a letter giving the reason for such return. A charge of, say, so cents is added to the charge of the foreign agent, and the client advised that his account has been debited by a certain amount, or he is requested to send a check on New York or postage to cover.