After serving in turn as junior, ledger-keeper, and discount clerk, the bank officer's next promotion is likely to be to the teller's box, or the cash. As he rises to the higher posts, with increase of responsibility, his fidelity bond is gradually raised. He will have been receiving also increases in salary every year, probably on the occasion of the annual revision of salaries, with perhaps one or two increases for special reasons. On receiving his appointment as teller there will be, in all probability, a further raise in his guarantee bond and a further increase in salary.

The Teller's Risk Fund

Some banks acknowledge the teller's extra risk of personal loss by establishing a special or extra remuneration for them. The way this is done is to credit each teller with $100 a year, or more, in addition to his regular salary, for the whole period of his service in the box. The money is not paid to him, as his salary is, but is reserved or held at his credit in the head-office books.

Shortages in his cash which he cannot make good himself are charged against his balance. Interest is allowed, and, six months or a year after he leaves the cash, he may draw whatever is at his credit. This delay in permitting withdrawal is exacted as a precaution against shortages attributable to him occurring in the cash after he has left the box. Other banks follow the practice of granting their clerks special increase of permanent salary on appointment to the teller's position.

Strong arguments can be adduced in favor of the more universal adoption of the teller's risk funds. It is impossible to deny that the bank officer is under special risk of loss while he serves his bank as a teller. When his cash is over, he knows that it is so either because he has underpaid a customer or given short credit on some entry passing through. It is most likely to turn up at the next balance day, if not before. He must make thorough search for it. If it does not turn up, the bank requires him to credit the amount to teller's surplus account, where it is held as a liability of the bank against any possible demand that may be made for it.

On the other hand, when the cash is "short" there is always the danger that some dishonest payee has been given more than he was entitled to, and of the transaction not being discovered. In this case, the teller loses. He must pay out of his own pocket whatever is required to keep the balance of his cash equal to the amount shown in the cash-book. The most accurate men have their ' 'off-days. Everybody is liable to make mistakes. Where there is no risk fund, the teller is apt to feel some injustice pressing on him from the fact that when other officers make mistakes the only penalty they have to pay, in nearly every case, is extra work looking for balances, or a little trouble in rectifying. They do not, except in unusual cases, suffer any deduction from their income; they receive the full amount of their salaries. With the teller's mistakes it is not so. There is a much greater chance of them costing him money. He works as hard as the others and as carefully, and naturally feels that he should, like them, have the full benefit of the salary that is allowed him. This he does not get when he is called on from time to time to make up petty shortages. When he knows that the extra risk belonging to his post is covered by a special allowance, he feels more secure in the enjoyment of his salary, the sense of injustice is entirely eradicated, and it should tend to make him a more valuable servant.