1 A depositor in a national bank, trust company, or any other "bank of deposit," is provided by the bank with a book of checks, by which means the money deposited may be withdrawn. This book contains blanks which the depositor fills out and signs, and which then become orders upon the bank to pay a stated sum of money to some person designated in the check, or to his order, the amount so paid to be charged against the depositor's account. (For more information regarding this subject read carefully the matter under " Check.")
The depositor should also use this book as a method of keeping track of all his transactions with the bank. The check itself can be detached from what is called the " stub," that is, the portion of the leaf which is bound into the book permanently. On the stub he enters, in a blank to be found for the purpose, practically a duplicate of what is filled out upon the check itself. Each check should be numbered, as well as the stub, the two always agreeing. On the stub, such additional information is entered, as the purpose for which the check was drawn, etc.
On the reverse side of the stub will be found a blank in which should be entered all deposits; the date, the nature of the deposit, and the amount. After the drawing of a number of checks, depending upon the arrangement of the book, which will be easily understood by examination, the total of such checks is deducted from the sum on deposit, and the amount left carried forward to the top of the back of the next stub. This process being repeated from time to time enables a depositor to easily determine just the sum of money in the bank to his credit. As a matter of precaution, it is always well to fill out the stub before drawing the check. This habit, persistently adhered to, will prevent the possibility of a check being drawn without any record being retained of it.
As checks are a good proof of payment it is most important that they be kept in some manner for convenient reference - no slipshod method should be tolerated. A good way is to paste each check to the edge of its corresponding stub after the check-book has been exhausted and the checks returned.
1 In this connection, it would be well to turn to " Bank Account," and " Bank-book."