Current liabilities generally consist of amounts due the bank and the wholesale trade for goods purchased. If due to any other creditors the circumstances should be explained. As already stated, amounts due to the bank should be cleaned up at least once each year either by cash or trade paper discounted.

The observance of a borrower's daily transactions and a critical scrutiny of his liability account from time to time, and one year with another, should reveal whether he is progressing or otherwise.

A comparison of the indirect and other liability of the customer on the books of the bank with the amounts shown in his statement will sometimes disclose an omission in the latter. In one instance, a branch held for collection from other banks more than double the amount of the bills given in a statement. Needless to say the account was not entertained.

Where amounts are due to other than trade creditors, such as members of the firm, relatives and employes, it is a disturbing feature, as such loans are liable to be given first consideration in case of trouble.

Should the account be at all weak in other respects, postponements of claim to the bank should be obtained from such creditors.