Transactions between Canadian banks are generally effected thru the daily clearing, and very seldom thru the medium of an account. Foreign correspondents generally carry a deposit account at one of the large offices to which any collections made for them by any of the branches are credited or drafts drawn debited. Most accounts with correspondents, however, are more conveniently carried at the head office; all debits and credits originating with the branches being advised thru the branch clearings account. Daily statements from the correspondents give the responding entries, and the accounts are kept in constant adjustment. Not only does this concentration at the head office simplify the bookkeeping, but, as the balances with correspondents frequently form an important part of a bank's reserve, it enables the head office to control the balances accordingly.