8. Paying paying teller ranks next to the cashier. He is usually custodian of the bank's cash and has charge of paying it out. In some large banks, the cash is placed in charge of one or more of the officers and handed over to the paying teller as it is needed. One of the main duties of this teller is to pay checks drawn on his bank and presented over the counter. In order to do this, he must keep a record of all depositors' signatures and of all stop payment orders. He must be quick to recognize a counterfeit or a forgery and ever cautious, resource ful, tactful and pleasant. He deals not only with the bank's own customers but with the general public as well. A mistake is costly. He may pay a forged or improperly drawn check, overpay, pay the wrong party, pay a post-dated check, a stale check, an over draft, or he may over-certify. None of these errors are easily corrected unless the customer is honest, for the cash is gone before the mistake is discovered. The work of the paying teller is perhaps the most exacting in the whole bank: Certifying checks is one of the important duties of this department in a large bank. The work is often so heavy that a special window is provided for it. Some of the other duties are shipping currency to the bank's correspondents and to Washington, making up payrolls, settling clearing house balances (in some banks) and making arrangements with Wash ington for the issue and redemption of Bank notes, etc.
9. Payrolls.—Banks are always glad to help their depositors in connection with the preparation of pay rolls. It is no easy task to be prepared at all times to meet any demands that may be made for the vari ous kinds of currency and -silver that are needed to make up the amounts. Some banks find it diffi cult to secure small bills and, in order to do so, they are compelled to pay express charges from their New York or other important correspondents. The de positor who demands large quantities of small bills and silver should remember this, and not think too harshly of his bank if it should happen that it is im possible for it to fill an unusual demand.
The preparation of a large payroll with odd amounts of each denomination of gold and silver re quires much time. The depositor should never pre sent a check for a large payroll during a busy time of the day, or just before the closing hour on Satur day. The teller is usually trying to deliver the money as quickly as possible, and since the paying of money is a trying task in any event, he should not be worried by the thoughtless depositor who might secure his money just as well at some other time of the day.
Most concerns having large payrolls realize the advantage of making arrangements to have them pre pared beforehand. The payroll clerk of a company informs his cashier just how much money he needs, and in what denominations, so that while the cashier is drawing a check and arranging to have it signed he telephones the bank and makes known just what he requires. When he gets the check signed and goes to the bank, he finds his money ready and wait ing for him, and the whole transaction takes no more time than the cashing of a ten-dollar check. The teller is able to make up the payroll, at his leisure and the danger of error is thus minimized.
10. Receiving receiving teller is the one who comes in contact most frequently with the customers of a bank. Consequently, he has the best opportunity for making friends or enemies for his in stitution. His first duty is to take in deposits, prove the deposit tickets, receipt for amounts received, sort the checks and currency, and turn the deposits over to the proper departments. Cash goes to the paying teller, or to the officer in charge of the cash. Checks on members of the local clearing house go to the clear ing house department, items on other local banks to the collection department and out-of-town items to the transit department. He must count his deposits and
make the pass book entries accurately, look out for counterfeits, examine indorsements, watch for post dated checks and prove his accounts at the close of each day.
11. Kind of may be of four kinds: (1) blank, (2) special, (3) restric tive, (4) qualified.
A blank indorsement is one that assigns title to the instrument without qualification. It is made by the mere signing of the payee's name and its effect is to make the check negotiable in the hands of any holder.
A special indorsement is one that specifies the per son to whom or to whose order the instrument is made payable.
A restrictive indorsement is one that makes the in dorsee the holder of the instrument, but not the bene ficial owner of it. This gives him possession but does not transfer to him the ownership of it. One form of restrictive indorsement gives the indorsee only the right to negotiate the instrument for the benefit of the party named in its indorsement. The forms are "Pay X or order for account of A," or "Pay X or order for credit of A." The usual form of restrictive indorsement is "Pay X or order for collection," or "Pay X or order for my use." In the foregoing forms, X is merely the agent of the indorser. The New York Clearing House has prohibited the use of this indorsement un less the paper is guaranteed by the bank presenting it. The prohibition dates back to a certain draft for $8 which was drawn by a Connecticut bank upon the National Park Bank of New York. The check was raised to $1,800 and deposited in the Eldred Bank of Pennsylvania. This bank indorsed it "for collection for the account of the Eldred Bank" and sent it to the Seaboard Bank of New York, which in turn pre sented it for payment thru the Clearing House. About a month after paying it the Park discovered the error and sued the Seaboard to recover the excess payment. The suit was lost in as much as the Sea board did not own the check, but was acting merely as agent for the Eldred Bank. ( See 114 N. Y., 28.) A qualified indorsement is one which limits the ordinary liability of the indorser. He becomes the mere assignor of the title. It relates only to his lia bility and does not affect the negotiable character of the instrument. Such an indorsement is found in the addition of the words, "without recourse," to the regular indorsement. The words, "without re course," mean that a person so indorsing wishes to incur no liability as an indorser, but wishes simply to transfer the title. Another form, less generally used, is found in the words, "at the indorsee's own risk." 1 12. Discount clerk and note functions of the discount clerk and note teller are often bined and placed under the note teller. The two are so closely related that they may be described together. Every bank has at all times many promissory notes in its possession. These may be notes which it has discounted or notes which represent loans made to borrowers. They may be notes left for collection by individuals sand correspondent banks, or they may be notes drawn by its own customers, made payable at the bank and paid by the bank at maturity upon presentation by the holder. The last named class of notes become the property of the bank as soon as the bank pays them for its customers. It will pay any notes marked payable at its place of business if the drawer of the note is a customer, has a deposit suffi cient to cover the amount and has not notified the bank that payment is not to be made. A note so drawn becomes in effect an order on the bank as soon as it reaches maturity. It is customary for the bank to call upon the drawer for a check in exchange for the note.