The In-clearing Book of each clerk ought to agree, of course, with the portions relating to him of the Out-clearing Books of the other clerks. The Out-clearing Book, it will be remembered, is written up inside the bank, and carried to the Clearing-house at four o'clock for the purpose of checking. Each clerk compares his work with that of the other clerks, one by one. If he is right with all he then balances, and there is no further trouble; but if he is wrong with any, to any large amount, he is bound to discover his error before leaving the house. The total amount of the morning and country delivery must be agreed by each before leaving the Clearing-house. As to the other clearing, a difference of 1,500 over (the in-clearing clerk being always supposed right), or of less than 1,000 short, is allowed to stand over until the following day if it cannot be readily discovered. Considerable confusion sometimes arises from shouting corrections across the room from one clerk to another. The country clearing was introduced by Sir John Lubbock in 1858. Every bank in London receives during the day a large number of checks upon country bankers. Upon these checks the name of the London agent is printed. Every clearing banker in London is the agent for one or more country banks. Thus the London and Westminster Bank is the London agent for the North and South Wales Bank, the Nottingham and Notts Bank, and Hall, Lloyd & Co. On the checks drawn on these country banks the name of the London & Westminster Bank is printed as their respective agents. So when the clearing clerks of each bank get such checks from the cashiers, correspondence department, and other sources, they proceed to arrange them for clearing as they do town checks, sorting them and putting them up in packages according to the London agents at which they are payable. No credit is given in the clearing for these country checks on the day on which they are delivered. The amounts are simply settled by the delivering clerks and the receiving clerks, and then the articles are taken to the respective banks, whence they are sent by post the same evening to the country bankers by whom they are payable. If these checks, on reaching their destination, are found to be in order, they are credited in account with the London agent, and advised; but if any of them are not in order, either from insufficient funds or irregular endorsement, or any other cause, such irregular checks are returned direct to the banker whose crossing they bear. All country checks not returned or advised by the morning of the third day are assumed to be paid, and credit is accordingly given for them in the clearing of that day and the amount is settled for, along with those advised paid, in the final balance. All country checks held by London bankers, returned unpaid, must be returned into the hands of the clerk representing the delivering bank by half-past twelve on the third day, and they are simply deducted from the total of the country checks on the day of settlement. The balance only of the country clearing is brought into the final settlement on each bank's town clearing balance sheet, as will be seen by reference to the form given below. "C. H." on the same form means Clearing-house, and is meant for the adjustment of differences, and "Bank" means Bank of England.

Specimen Form of a London Bankers' Clearing Balance Sheet. The National Provincial Bank of England.

Debtors.                                                                                               Creditors.

d.

Alliance................

Barclay.................

Barnett.................

Bosanquet..............

Brown..................

Central.................

City....................

Consolidated............

County.................

Dimsdale...............

Fuller...................

Glyn....................

Imperial................

Joint...................

Bank...................

London & Southwestern London & Westminster..

Metropolitan............

National................

Prescott.................

Robarts.................

South wark *............

Smith...................

Union...................

Williams..............

Country Clearing........

C. H...................

s.

This sheet when filled up shows the account of the National Provincial Bank of England with all the other clearing banks, their names being abridged to save space. It nearly corresponds with the settling clerk's statement in the New York Clearing-house, the name of the bank whose accounts it represents being given at the head and omitted in the body of the statement.