There are twelve banking institutions in New York City with combined assets aggregating over three billions of dollars. Through the channels of these banks the tide of paper transfers of credit-checks-ebbs and flows-sometimes representing gigantic amounts, sometimes lesser ones. Figures are perhaps not always comprehensible. Let the spectator stand before the receiving tellers' windows in one of these banks during the course of a single day-let him watch the packages of checks which are rather small in the early part of the day, but which gradually grow larger as the day lengthens and as the larger deposits arrive, and culminate in packages containing hundreds of checks amounting to millions of dollars in the "rush hour" of between three and four o'clock. Let the same observer see the packages of checks drawn on one of these institutions as they are cleared through the New York Clearing House; let him follow them to the drawee bank and view them as they are received. Then only will he have an insight into the check problems of the present-day reserve city bank and be able to understand how they are solved. The growth of the check system in the United States has not been equaled in any country in the world. Considering the fact that each reserve city bank acts more or less as Clearing House for hundreds of smaller institutions in the districts surrounding it, and that each one of the latter sends in daily from a dozen to a thousand checks for credit or collection, it will be realized to what an extent the increased circulation of checks has effected the detailed work of the city bank.

Two Classes of Depositors

Bank depositors may be divided into two classes, the first class consisting of those who transact their business in the same city with their bank and the second those who, being out

of town, deal with their bank through the mails. Beyond a glance to make sure that the proper amount has been credited to his account, probably neither customer thinks further of what his bank does with his funds. Rarely does he seek to understand what the bank does with the checks deposited or how they are handled by the bank from the time they are received until the credit entry is made upon the ledger. Hence it will be of interest to the individual depositor and the country correspondent alike to follow their bits of paper through a day's routine at the city bank.

The Mechanics & Metals National Bank is typical of the above mentioned "big twelve" New York City institutions. It is a central reserve city bank and one of the 35 greatest banks of the world. Its routine is similar to that of other large city banks of the country and resembles in principal that of the small size bank, but of course surpasses the latter many times in volume and magnitude.

How the Enormous Volume of Mail is Handled

Obviously each must be a marvel of efficiency, accuracy and speed to complete its day's work. At one o'clock a.m., when most good people, are tucked in their beds, the night force of the Mechanics & Metals National Bank comes on duty. Mails are brought in and letters opened by an electrical opener at the rate of 200 a minute. Contents are sorted, all letters bearing checks and drafts for deposit being set aside.

These letters are then sorted into lots. Each lot represents deposits received from either National banks, State banks, individuals or remittances. For instance a cash letter from a National bank in Atlanta, Ga., would be assigned to the lot representing a National bank ledger A-G. The block system is used throughout the bank and in this case, the letters having been proved, they are charged to the various book

keepers in "blocks" on the proof-sheet. These bookkeepers prove their mail deposits during the following morning by comparing the total of the letters posted by the total amount charged to them on the sheet.

As the work of the night force is carried on without interruption by the mail teller on his arrival, the amount charged under various headings on the night force's sheet is brought forward to like headings on the mail tellers proof-sheet and the mail teller lists his morning "blocks" under like headings. The respective bookkeepers prove their work by the totals of the night force added to those of the mail teller.

Listing Checks and Mechanical Devices

The letters with their contents having been sorted, the checks contained in the letters are separated into lots of Clearing House items, transit (called also foreign), sight drafts for credit, coupons, cash, and itens drawn against this bank or any one of three non-member banks that clear through it. The checks are then listed on the adding machine, packages recapped, and proved with the letters. Differences arising here are immediately checked out. Finally the clearing items are sorted according to the individual banks of the Clearing House, listed on carbon paper by machine, a copy of such list kept, and the grand total of the bank packages proved with the grand total of the clearings arrived at when the letters were proved. All mail other than cash letters is placed in baskets and left for the attention of the mail teller. In the morning each department begins the day's work by opening, resorting, and listing the items charged to it by the night force.

Separate Night and Day Shifts

The night force handles about 4,700 New York Clearing House items, on an average, nightly. This figure does not include postoffice money orders, which are cleared both loose and in bulk. An aggregate of 6,500 of these pass through nightly, and about an equal number are taken in by the receiving teller during the day, making a total number of 13,000 money orders.

The mail teller and his assistants arrive at 8 a.m. and relieve the night force. The miscellaneous mail left by the latter is sorted and sent to departments. Individual deposits are acknowledged on form letters provided for the purpose. At 8.30 o'clock 52 clerks appear for work. Some of these are assigned to the mail teller's department, thus increasing that department's staff to about 30.

Meanwhile more mails are received. Between 8.30 and 10 o'clock, the hour of clearing, about 10,000 checks are received, charged to Clearing

House banks, and handled in the same manner as that followed by the night force. At 10 o'clock the Mechanics & Metals National Bank's quota of exchanges arrives at the Clearing House. In this consignment are to be found the checks received by all departments on the previous day, in addition to the amount supplied by the night force and the mail teller, thus bringing the total number of checks to nearly 40,000. The amount cleared varies between $60,000,000, and over $100,000,000. The mail tellers open, sort and list successive mails up to 2 p.m., charging the items received to the proper departments. During the morning 15 men help the mail department acknowledge letters of deposit. About 2,200 pieces of mail are received daily and of these about 1,000 are letters of deposit.

When Incoming Exchanges Arrive But this is only a part of the morning's work. While the clearings are being prepared the first packages of incoming exchanges arrive. These are from a few of the larger banks which have arranged to clear a part of their exchanges at 9 o'clock, taking and giving receipts which are charged through as checks in the regular 10 o'clock transfer. These checks are sorted into piles by the bookkeeping department, each pile representing a ledger, listed on machines and proved with the amount listed on the envelopes in which they were received. The men at work on the outgoing exchanges help the bookkeepers on the incoming checks after 10 o'clock. total number of checks paid daily through the Clearing House is about 30,000 and the amount paid averages $60,000,000. The largest single check ever paid in this manner by this bank amounted to $43,538,131.11; the smallest one

cent.

The

The receiving tellers' windows open for the day at 10 o'clock but transact the bulk of their work between noon and 4 p.m. From all sources 4,000 to 5,000 deposits are received daily consisting of about 30,000 separate items. The daily total amount received is on occasions well over $110,000,000. After the checks are sorted and proved by the deposit slips (in exactly the same fashion as is done by the night force and the mail teller) they are sent to the rack department. All items other than Clearing House items are charged to proper departments. It is interesting to note that one deposit is made about every four seconds. Cash receipts average about $1,000,000 a day.

The Batteries of Adding Machines,
Typewriters, etc.

The rack department prepares the checks of the receiving teller for the Clearing House in the same manner as do the night force and mail teller. This department concludes its day's

work at about the same time as the receiving teller and proves its figures with the latter. Deposits received after banking hours are held over for the night force.

There are in use daily 64 adding machines, 5 electrical bookkeeping machines, and 35 typewriters. While 64 adding machines may not seem a great many considering the amount of checks listed, yet it should be remembered that every single one is in constant use every working hour of the day and night. In addition there is a check perforating machine for cancelling vouchers, electrically operated and with a capacity of 250 checks a minute. Two electrical check endorsers stamp the endorsement of the bank on 200 checks a minute.

Not including the accounts of the foreign department, 19 large Boston ledgers are required in which to keep all accounts. In addition there are about 11 individual statement ledgers or journals. Five or six ledgers are handled entirely on machines.

As to accuracy of clerks on the machines it will be interesting to note that figures of the mail department, which may be taken as typical, show an average of four errors per month per

man.

Some men have listed two months without error. Most of the clerks develop speed in listing of about 25 checks per minute.

A "Big Day" in a Metropolitan Bank It probably never occurs to the outsider that many outside conditions affect the day's work of those departments whose duty it is to handle checks and drafts. A "big day" for example, on the New York Stock Exchange, when a million or two million shares are sold, immensely increases the volume of checks drawn on local banks. Each sale necessarily must be paid for. A customer pays the broker, and the latter oftentimes buys of another broker or divides his purchases with more than one dealer. Hence it will readily appear that each sale requires the use of at least one check.

Dividend time on the calendar of certain great corporations always adds to the burden of the city bank, whence most of the dividend checks eventually flow. A "big day" in a neighboring city increases the work of the New York banks which are the correspondents of banks in that city, for the latter's mail deposits are swelled both in amount and number of items. Thus by reading notices to the above effect in the newspapers many New York bank men are able to forecast the amount of work they will have the next day and adjust their morning hours accordingly.

Bank Provides Lunch for Employees For many years lunch hours have been a source of concern to large New York banks. As every clerk is busy so continually and must

crowd so much into his working day, an hour's time at mid-day is considered by many to be a great waste of time. The Mechanics & Metals National Bank, in common with some other metropolitan institutions, has reached the most satisfactory solution of the problem by maintaining its own restaurant and lunch-room, where all members of its staff enjoy a bountiful dinner of the highest class. Each employee finds 30 minutes amply sufficient time to lunch. In order that the routine of all departments shall not be interrupted, not more than 50 persons are dismissed at one time. About five periods of a half hour each are necessary to accommodate the entire force. By thus maintaining the lunch-room, the bank not only shortens the time allowed for lunch but is able during the entire time to keep every individual within call if needed.

Operation of the Transit Department

The transit department of this bank is a very important one. All out-of-town checks and drafts received by all departments are charged. in packages to this department, and thence cleared throughout the country. Collections are made through three agencies, the "collection department" or country clearing branch of the New York Clearing House, the Federal Reserve bank, or direct bank correspondents. The average number of transit collections per day is about 20,000. This department also performs the important duty of analyzing accounts.

Drafts from every city in the United States and many from foreign countries find their way to the large New York City banks. Demand drafts, one to three day sight drafts, arrival drafts, bills of exchange, due notes, and drafts with bills of lading attached are some of the varieties of collections undertaken by the Mechanics & Metals National Bank. This work is carried on by the collection department with the co-operation of the note teller and a large corps of messengers.

The Routing of Messengers

Sight drafts of all kinds are charged to the note teller, and collection items are sent to the collection department. During the early hours of the day the note teller and his aids, assisted by the messengers sort, list, and enter these items on books. At about 10 or 10.30 o'clock the messengers are ready to depart on various "routes." New York City is divided into route districts, and a messenger placed in charge of collecting items in each district. Some of these routes where collections are always numerous, consist of but three or four great office buildings in the lower part of the city. Others however, which are correspondingly light, embrace one or two square miles. Messengers are sent out with routes which necessitate from 30 to