All paper representing loans and discounts made by a bank, after having been authorized by the directors or the discount committee, should be numbered sequentially, so as to give each piece an individuality by which it might afterward be known and traced, if necessary. If possible, this numbering should be done with an automatic stamping machine. After this, each loan or discount should be entered, in the order of its number, in a book which will show a record of its number, date of execution, the name of maker or makers, the name of endorser, acceptor or guarantor, date of maturity, amount of face of note or draft, amount of discount deducted or of interest added, with a blank space after these data for making any additional remarks found necessary.

For collateral paper a separate record should be kept, including a description of the collateral described in each note, in addition to other data; and still another separate record for all demand paper, whether or not secured by collateral.

After this is done the demand paper should be kept in a separate package, arranged alphabetically, and the time paper, whether secured by collateral or not, in a package or packages arranged in the order of date of maturity.

The certificates of stock, bonds, etc., held as collateral for each loan should be placed in a separate envelope of stout manila paper, large enough to hold the collateral easily, and the envelope should have a printed form on one end for noting the necessary data with regard to the collateral placed in the envelope and the note secured by same.

These envelopes should be arranged either in alphabetical or numerical order for easy reference, and placed under lock in the custody of one person, who should be responsible for their safe-keeping. They should be verified by actual examination from time to time, and great care should be taken to replace each certificate, bond, etc., in its proper envelope after examining same. Whenever any change is made in the collateral lodged for any loan, the change should be noted in the collateral note and on the envelope, and the maker of the note, or his representative, should receipt to the bank on the discount register for any collateral surrendered by the bank, as well as upon the note itself. At the time of making the loan, care should be taken to sec that any certificate of stock or registered bond is properly assigned in blank on the certificate or bond by the signature of the owner, attested by that of a witness, or on a separate printed blank used for this purpose.

All entries of loans and discounts made in the discount register should be verified by some person other than the clerk keeping this, as well as all computations of interest or discount thereon; and where interest is not credited until the payment of the note, particular care should be taken to see that the proper and full amount paid is credited on the books of the bank, as the lack of this precaution leaves open a door for dishonesty.

All time paper should also be entered, according to date of maturity, in a "discount tickler," showing, clay by day, the number of the note or draft, the maker or payer, and the amount, including interest when not included in face of note.

Notice of maturity should be made up from this tickler, and mailed to the maker or payer of each note or draft at least a week or ten days before maturity, after the following form: