Statement of the Affairs of the Bank, on Dr. THE_______________BANKING COMPANY. Cr.

Due to the Public on current ac

COUNTS.

Head Office, Town .

Ditto, Country . .

Branch A....

Branch B.....

Branch C........

Total Current Ac-counts . . . .

...

...

...

Deposit Receipts.

Head Office ....

Branch A......

Branch B..

Branch C......

Total Deposit Re-ceipts . . . .

..

...

...

Notes in Circulation.

...

...

...

Credits on Agents

...

...

...

Total Lodgments . .

...

...

...

Interest Account.

Head Office. . . .

Branch A.....

Branch B....

Branch C......

Total Amount of Interest . . .

...

...

...

Fund for Bad Debts.

Head Office....

Branch A...

Branch B....

Branch C.....

Total Amount of Fund for Bad Debts . . . .

...

...

...

Paid-up Capital . .

Sundry Accounts.

Forfeited Shares . .

Dividends ....

Unclaimed ditto , .

Surplus Fund . . .

Profit and Loss . .

Total Sundry Ac- counts . . . .

...

...

...

Total. . . .

...

...

...

Due to the Bank on-Overdrawn Accounts.

Head Office, Town. . .

Ditto, Country . . .

Branch A....

Branch B.......

Branch C.......

Total Overdrawn Accounts......

...

...

...

Bills Discounted.

Head Office, Town. . .

Ditto, Country . . .

Branch A.....

Branch B......

Branch C.......

Total Amount of Bills Discounted. . . .

...

...

...

Loans.

Head Office

Branch A...

Branch B......

Branch C.....

Total Amount of Loans .

...

...

...

Investments.

Government Stock. . .

Exchequer Bills. . . .

India Bonds.......

Other Investments. . .

Total Investments. . .

...

...

..

Total available Assets

...

..

...

EXPENDITURE

Head office...

Branch A...

Branch B......

Branch C......

Total Expenditure. . .

...

..

..

Past-Due-Bills.

Head Office.....

Branch A...

Branch B......

Branch C.....

Total Amount of Past-Due-Bills . . . .

...

...

...

Sundry Accounts.

Stamp Account ....

House Account ....

Ditto Branch A. . . .

Ditto Branch B. . . .

Ditto Branch C. . . .

Total.......

....

...

..

General Account of Cash.

Head Office....

Branch A.....

Branch B......

Branch C.......

Total Amount of Cash

...

...

...

Total.....

...

..

..

count should be against the bank, then it must remain "on the wrong side," until further profits shall turn the balance the other way.

Besides the books connected with the business of bank-every joint-stock bank will require,

1. A Shareholders' Register.-In this book the names of the shareholders are entered chronologically in the order in which they become shareholders. The entry includes the date, the name, residence, number of shares, and sum paid.

2. Transfer-Register.-In this book are entered the transfer of shares from one proprietor to another. The entry includes date of transfer, from whom transferred, residence, ledger-folio, to whom transferred, residence, purchase-money, transfer stamp.

3. Proprietors'-Ledger.-In this ledger each proprietor has an account open, in the same way as in a cash-ledger. He is credited for the number of shares, and an entry is made of the different instalments he may pay. "When he sells or transfers his shares, he is debited the shares, and they are placed to the credit of the party who may have purchased them. The entry includes the date, number of register, calls and transfers, number of shares, and amount.

III. We shall now consider those Improvements of which the above system is capable, so as to render it more efficient in large establishments.

As a bank increases its business, it becomes of importance to improve its system of book-keeping, and to adopt means of increasing the efficiency of its clerks. A large esta-blishment can generally be conducted with a less proportionate number of hands than a small one. It admits of a more extensive application of the principle of a division of labour. In a small bank, one clerk may keep two or three books of various kinds, or perhaps act as both cashier and accountant. But in a large bank, each clerk is in general kept wholly to one employment. The effects of this separation of occupations are the same in banks as in manufactories; and the description of these effects given by Adam Smith will equally apply to both cases.

"The great increase in the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances : first, to the increase of dexterity in every particular workman; secondly, to the saving of time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many."

The increase of dexterity by constant practice is very observable in the practice of "casting up." A clerk who is much accustomed to this operation will cast up a long column of figures with singular quickness and accuracy. It is also very observable in "calling over." Besides, owing to the abbreviations we have mentioned in page 45, a clerk in calling over will speak so rapidly that an unpractised ear will hardly be able to follow him. Mr. Babbage gives the following instance of great dexterity acquired by practice:-

"Upon an occasion when a large amount of bank notes was required, a clerk in the Bank of England signed his name, consisting of seven letters, including the initial of his christian name, five thousand three hundred times during eleven working hours, and he also arranged the notes he had signed in parcels of fifty each," 1

1 " The Economy of Machinery and Manufactures." By Charles Babbage.

The loss of time in passing from one operation to another is as obvious in mental processes as in those which are purely mechanical.

"When the human hand or the human head has been . for some time occupied in any kind of work, it cannot instantly change its employment with full effect. The muscles of the limbs employed have acquired a flexibility during their exertion, and those to be put into action a stiffness during rest, which renders every change slow and unequal in the commencement. A similar result seems to take place in any change of mental exertion; the attention bestowed on the new subject is not so perfect at the first commencement as it becomes after some exercise." l

The invention of expedients for facilitating and abridging labour is also as common in a bank as in a manufactory.

Mr. Francis has recorded, in his "History of the Bank of England," a variety of improvements introduced into that establishment by Mr. "William Rae Smee, son of a former chief accountant.

He proposed an alteration in the cheque office, by which he stated that the work which employed three principals and twenty-one clerks would be done more effectually by two principals and seven clerks. In the circulation department, the posting, which previously took fifty, occupied only eight clerks; whereas the whole of that department, conducted upon the old system, would probably have required before now a hundred additional assistants. In the National Debt Office Mr. Smee introduced such measures that "the directors were enabled so far to consult the accommodation of the public as to enable the transfers in the various offices to be made eight or nine days

1 " The Economy of Machinery and Manufactures." By Charles Babbage.

II.

G later than usual, the business which formerly occupied about thirty-two days being accomplished in about twenty-three.1

Similar improvements have been introduced into commercial book-keeping.

"The old method of journalizing and posting each transaction separately unnecessarily swells the accounts in the ledger with a multiplicity of figures, which greatly increases the difficulty of balancing, and, to say nothing of extra labour and loss of time, the liability to error is always in proportion to the number of entries, and vice versa. If a hundred sums are posted when one would answer, then a hundred chances of error are incurred where only one was necessary; and in the event of an error in adjusting the accounts, a hundred entries must be called over and examined instead of one." 2