The chief duty of the discount clerk is to take charge of the loans and discounts of the bank after they have been negotiated by the proper officers. He keeps a record of the promissory notes and acceptances offered for discount in an Offering Book, and also of the disposition made of them. He records all notes discounted in a "discount register," with the makers' names, and those of the indorsers, if any, the place of payment, the due date, the rate of discount and the amount of the loan. In many banks the offering book and the discount register are combined. The discount clerk also keeps a "tickler," a memorandum book divided into days of the month, in which the notes are recorded under their proper due dates. Great care should be taken in calculating the due date as a mistake of a single day may cause serious loss to the bank. The notes discounted are carefully filed in large wallets arranged in the order of due dates. When the day of payment arrives the notes are turned over to the note teller for collection with a proper exchange of memoranda. The discount clerk also has charge of all securities held to secure collateral loans unless the business is so large as to require a collateral loan clerk.
Collateral loans, that is, loans made upon the security of collateral, such as stocks, bonds, or warehouse receipts, constitute a large item in the business of some city banks, especially those having dealings with stock brokers.2 This type of loan requires daily and hourly watching, especially in times of active speculation. Notes given for collateral loans are generally single-name paper, and the bank's only actual security lies in the collateral. The value of the securities deposited may shift rapidly in an active stock market and the collateral clerk must see that the proper margin of security required by the bank is maintained.
1 See Chapter XIV (The Clearing House. 102. Functions). 2 See Chapter XVI (Loans And Discounts. 126. Loans).
The collaterals are constantly being withdrawn and others substituted, and these must be carefully scrutinized, assigned, receipted for, recorded and filed. In banks having a large business of this nature, the position of collateral clerk is a very responsible one.