The Bridgeport times and evening farmer., 1920-09-07
COLLECTION and
TRANSIT WORK
OF BIC BANKS

(By N. DevereuX putnam, vice PreS1-
dent Guaranty Trust Co. of N. Y.}
A Collection Department, as the
designation implies, gives the same
service to the customers of a bank
that an individual would give who
was empowered to act as an agent in
obtaining the settlement of an out
standing obligation. This service,
when rendered by a large banking in
stitution, assumes enormous propof-
tons, both in extent of service and
in the intricacies of detail necessary
for its execution.
To list thousands of checks every
day, to dispose of these checks prop
erly and to balance at the close of
business, requires the supervision of
experts in this phase of banking; it
demands the cooperation of a corps
of efficient clerks, each thoroughly
familiar with his particular duty, and
it requires that each clerk at all times
be alert for the detection and proven
ton of errors.
The Collection Department may be
divided into four divisions as follows:
City, Out of Town. Coupon and Money
Transfer.
The City Collection Division handles
cash items. documentary and nom
documentary uIdlLS, dCCepLdACSS, anu
notes for collection. All items handled
are payable locally. Cash items Ctems
for which depositors receive immedi-
ate credit) are sent to City Collection
from the Transit Department to be
presented to firms, individuals and
non-clearing banking houses. These
items, consisting of sight and demand
drafts and checks. are presented by
messengers who collect in return
either cash or checks drawn on Clear
ing House banks. No other kind of
payment will be accepted. Since the
funds which these items represent are
already subject to be drawn against,
it is important that they be handled
with dispatch. as delay in presentation
means a loss of interest. If payment
of cash item is definitely refused it
is charged back to the depositor the
same day.
The scope OF service may be well IL
Illustrated by explaining briefly the
method of handling an arrival draft.
An arrival draft is a draft drawn by
a creditor against a debtor to which
are attached valid papers showing the
debtor to be rightfully entitled to pos
session of goods mentioned in papers
accompanying the draft. When such
draft is sent with instructions to
hold for an arrival .,f goods. the ship
ment is traced from time to time I'M
til it is definitely ascertained that the
goods have arrived. A holding un-
paid notice giving the exact status Of
the draft is also sent to the depositor
at regular intervals. When the ship
ment arrives, the drawee is notified
imm ediately and payment requested.
1t frequently happens that the arrival
clerk notifies the consignee before the
railroad company. In case of non
payment the deposition is notified
promptly and further instructions re-
quested. This service safeguards the
interests of a depositor in every way
practicable.
In addition to cash items and drafts,
collection notes and acceptances are
also handled by City Collection. These
items cover obligations maturing at
some future date. They are filed &C
cording to date Of maturity and as
| they become due are presented for
payment or put through the clearing
house as the "face' of paper in
structs This feature of the work has
greatly increased. due to the growing
popularity of acceptances an in
! strument of credit An examina ton
of the notes and acceptances in the
note teller's file reveals a universal
custom of deferred payment business
as one finds items there written in
| French, Spanish. German. Italian.
The Out of Town Collection Division
| handles the same kind of items as the
| City Collection. Its work. however, is
| transacted entirely by mail and tele-
| graph. A thorough fling system is
| maintained at all times in order that
| the status of an outstanding note, &C
| ceptance or draft may be quickly de-
| termined This division also receives
it's items from other departments OF
| the bank, from depositors. and from
| firms or individuals whose patronage
! is acceptable.
The Coupon Collection Division, as
! it's name indicates, attends to the col
lection of coupons or interest war
rants. Coupons payable in New York
City, received by any department, are
sent to Coupon COLLECTION. the latter
! division being charged with the
4 a ,nd held r0SpODSihIe nd