The discount clerk records the note or notes in a "Discount Register" by consecutive numbers under the date when discounted, with all details as to indorsements, interest, amount and maturity. He then enters the notes in a "tickler" or "maturity calendar" under their due dates, with a complete description. This is designed to avoid errors in presentation, since proper presentation on the due date is necessary in order to hold indorsers liable. Another record is then made in the liability ledger. This ledger is kept so that the bank may know at any time the liability to the bank of any of its customers, either as maker or indorser. National banks and some State banks are forbidden by law to lend more than 10% of their capital and surplus to one man or company. The liability ledger enables them to make certain that the rule is not accidentally violated, and to see that they do not unintentionally take more paper issued or indorsed by one individual, firm, or corporation than they feel is a safe risk. The notes are then filed away in wallets, either according to number or according to due dates; usually the latter. The transcript of the day's discount record is sent to the credit department for its information. The total of bills discounted, together with a record of any other transactions conducted by the discount teller, is sent to the general bookkeeper. Due notes are paid through a note teller, or the collection department, or the discount department, according to the plan of the bank's organization. To use a separate note teller is especially to be desired when there is a large volume of general collection business, and, incidentally, it separates the handling of cash from the keeping of discount records. Some of the factors that determine whether the bank will grant a discount are (1) the condition of the bank's funds; (2) the claim of the applicant to accommodation; (3) the credit of the applicant; and (4) the rate of discount on the loan.

Daily Discount Book


Date of Discount

Promisor or Drawer

Drawee or Acceptor

Endorser or Surety

(Book Bound Her<

Left Hand Page

First National Bank

When Due

Where Payable

Date of Paper

Discount Time.

Month Day

Amount Dolls. Cts.

Discount Dolls. Cts.

Amount Dolls. Cts.

For Whom Discounted

(Book Bound Here)

Right Hand Page