This section is from the "Practical Banking" book, by Albert S. Bolles.
This letter is given to the note teller, who writes his initial as his receipt for each check that he takes from it for credit to the remitting bank. In the same way, all letters containing cash documents are passed into his hands, and the proper entries are made from them. In the Boston system of bookkeeping, which will soon be explained, the entries are made from the letter itself. The total footing of the letter is first posted in the Note Teller's Cash Book, the letter is then handed to the bookkeeper who again posts the total opposite the dealer's name, and afterward the letter is handed to the corresponding clerk, who brings all the letters to the cashier for examination. In many banks, the president goes through the letters received the previous day; in other banks, the president is shown every unusual letter. It is important by this system to have the letters footed, because the letter is the original entry, and every footing is from the letter. The totals of the letters are posted by the note teller, and again by the bookkeeper, and they compare the footings.
Some banks send notices of the time when a note falls due. Formerly this was done more generally than it is now. The business has become too large for banks to continue it. Persons who give notes are supposed to know when they become due, and should be prepared to pay them without notification. In some cities the custom seems to prevail of making notes payable at any bank in town. Especially is this the case in Boston; where it prevails notices would seem to be necessary. In New York City, however, it is customary for merchants and other persons to make their notes payable at a specific place, and to have the money there to pay them at maturity.
When notes are paid, a certified check may be used, or money. A teller should preserve the notices and memoranda of his transactions in the order of their occurrence until his cash is proved at the end of the day. They may serve a useful purpose in refreshing his memory or in detecting any error that may happen.
When a note is paid, the bank stamps thereon a notice like the following:
"Paid at the Merchants' Bank."
Of course a great many incidents and irregularities happen in connection with this department. The persons who ought to pay perhaps forget where the note is payable, or when, or the amount. Sometimes the notice is delivered to the wrong person. Some merchants write their notes payable at the bank where they keep their account.
After the last payer is dismissed the note teller closes his gate erases from the Cash Book and Discount Tickler the notes that remain unpaid, and delivers them to a Notary Public for protest, except where no endorser is to be held.
The protest consists in presenting the note at the place of business of the drawer, or wherever it is made payable, and demanding the money for it. If this be refused the note is attached to a printed legal form, containing the following particulars: First, a true description of the note, so as to ascertain its identity; second, an assertion that it has been duly presented to its maker, or place of payment, at maturity, and dishonored; third, the holder, or the person giving the notice, looks to the person to whom the notice is given for payment and indemnity. This statement is essential to establish the claim or the right of the holder or the party giving notice, for otherwise he will not be entitled to any payment from the endorser. It will be sufficient, indeed, if the notice sent necessarily or even fairly implies by its terms that there has been a due presentment and dishonor at the maturity of the note, but mere notice of the fact that the note has not been paid affords no proof whatever that the note has been presented in due season, or even that it has been presented at all. The note is returned to the bank on the following day. The Notary sends notice of the protest to all the endorsers and to the drawer of drafts, which advises them of their liability for the payment in case of the continued default of the first debtor. If the notes should be paid when presented by the Notary he returns the money to the bank on the next morning.