The amount of the check is then charged to the account of the depositor drawing same, and the effect is to make the bank liable for payment of the check when presented for payment.

By way of illustrating how the lawful money reserve of a National bank, required to keep 15 per cent of its deposits on hand, is computed, the following copy of the form used in the Comptroller of Currency's office is here given:

Bank Directors should bear in mind that Section 5191. U. S. Revised Statutes. forbids a Bank to increase its liabilities by new loans of discounts. or to declare any dividend when its Reserve is below the legal requirement.

Form B.- Calculation Of The Lawful Money Reserve Of National Banks Located _______Elsewhere Than In Reserve Cities And Central Reserve Cities._________

No. of Bank____________Report of the state of lawful money reserve of the-------------------------------------------------------------.

Located at_____________________________, State of___________________________ at---------o'clock___m.

X B. - If this accompanies a Report of Condition it should be signed by_____ Cashier

If it accompanies a Report of Examination it should be signed by______________________________ Examiner.

Items On Which Reserve Is To Be Computed.

Liabilities.

should the aggregate "Due from" exceed the aggregate "Due to" Bank", both items must be omitted from the calculation

Due to National Banks.

Due to State Banks and Bankers.

Due to Trust Companies, etc

_____

Less - Due from other National Banks

Due from State Banks and Bankers

___

Dividends unpaid

Individual Deposits ........

United States Deposits

Deposits of U S Disbursing Officers

..........

Gross amount ..............

Deductions Allowed.

Checks on other Banks in the same place......

Exchanges for Clearing House ........

National Bank Notes .....................

Fifteen per cent of this amount

is the entire Reserve required, which is

Deduct 5 per cent Redemption Fund with Treasurer U. S.

Items Composing The Net Reserve And The Distribution Of The Same.

Three-fifths of the Net Reserve

Items making up the same may consist of* Balances with following approved Reserve Agents, viz:

Excess with Reserve Agents

Deficiency with Reserve Agents

■

Two-fifths of the Net Reserve is

Items in Bank which may lawfully make up the same, viz.

Fractional silver

Silver Dollars .......

Silver Treasury Cert's..

Gold Coin............

Gold Treasury Cert's. .

Legal-Tender Notes...

U. S. Cert's of Deposit for Legal-Tenders

Ck Cert's for coin and Legal-Tenders...

.......

Excess in the two-fifths Reserve held...

Deficiency in the two-fifths Reserve held..

Recapitulation.

Excess in the entire Reserve held, $________________ Deficiency in the entire Reserve held, $_____________

If reciprocal accounts are kept with reserve agents, only the net amount due from such agents is available for reserves that offices will always insert in their Reports of Conditon one of those terms properly filled in, and Bank Examiners will do the same in their Reports of Examination