Comparatively few women appreciate the advantage and convenience of having a bank account. There is a mistaken idea current that banks are solely for those who have a balance to invest. This is true only of savings banks; with this exception, the housewife may select the most convenient bank of whose financial soundness she is assured and open her account. In this way the bank becomes merely a temporary safe deposit vault, and checks, the easiest and safest way of making all except small cash payments.

Having become identified, with her account accepted, the depositor is presented with what is called a pass book. This she keeps and presents with each amount of money to be deposited. The receiving teller makes a record of each deposit on the left-hand page of this book, and when the book is balanced from time to time a statement is inserted, on the right-hand page, of the amount drawn out and the balance remaining.

In depositing, the housewife or her messenger fills out what is known as a deposit ticket, which is always to be found provided at the bank. If it is necessary or more convenient at any time to send the deposit by a messenger he should always fill out this blank in the name of the depositor, since it is not necessarily her signature, but merely a record of her deposit. If there be checks to be indorsed before depositing, that is a different matter. Those must be indorsed before delivering them to the messenger, and should be made payable to the bank; they are then payable only to the bank. The deposit ticket is a printed form indicating deposits in specie, bills and checks. Sometimes the ticket reads for gold and silver, instead of specie, as is seen in the following form, illustrating a deposit ticket properly filled out for presenting to the receiving teller. This is handed in with pass book and deposit at the window marked "Receiving Teller," where the deposit is counted and the amount compared with the depositor's figures, checks examined to ascertain whether they have been properly filled out and indorsed and, last of all, the amount of the deposit is entered in the pass book, which is returned to the one presenting it.

Checks, drafts, money orders or express money orders can always be sent by mail for deposit with safety if properly indorsed.

Depositing by Mail

Every depositor is presented with a check book.

This is a book of blank checks, arranged either several on a page, attached by a perforated line to a side, which is called a stub, or, as in "pocket" check book, with a single check forming the page. In this case pages are inserted between each second and third check, or between every check, upon which a record may be kept, as upon the stubs. A check is a written order, dated and numbered, directing the bank in which the writer's money is deposited to pay the sum stated to the bearer of the check, some person named, or to the order of the person indicated.

This check is equivalent to the sum of money named upon it anywhere the rightful bearer presents it. It may be deposited, presented in payment of bills or cashed upon being indorsed.

To receive the money on a check it is necessary for it to be indorsed by the person to whom it is made payable. To indorse a check properly it should be held by the upper left-hand corner, turned and the name written across the back about on-third down the length of the check. Other indorsements should follow the first, in order. The signature used in indorsing a check should always conform exactly to that on the face, even if that should by mistake be not correct. The simple signature across the back makes it possible for anyone to draw its value who may come into possession of it. For the sake of safety it is always well to limit the payment by making it payable to the order of anyone to whom it is desired to transfer it. It is best to observe this under all circumstances, unless one presents the check in person for cashing, or must send it to be cashed by someone not known. It makes it impossible for it to be of any value to a chance finder should it be lost. Thus:

John L. Bentley

Simple Indorsement.

Pay to the order of Henry E. Johnson John L. Bentley

Safe Indorsement.

Sometimes a check is made out so that the payee's name differs from that used in the bank. This will happen frequently with married women. In such case it is usually necessary to sign both names. For example, a check made payable to Mrs. Henry Couch would be indorsed "Mrs. Henry Couch," followed by the proper signature, "Harriet B. Couch" underneath, since the given name of a depositor is preferred at the bank.

Deposit Ticket Properly Filled Out

Double Indorsemen

If for any reason one desires to draw cash on her own account it may be done by making out a check, using the word "Cash" or "Myself" in place of other name.

A check eventually returns to the depositor's own bank, is paid, cancelled and returned to her when her pass book is balanced, as a voucher or receipt of payment. The vouchers are perfect receipts of all payments made by check.

A Check Filled Out

Care must always be exercised not to overdraw in checks the amount of one's deposit in the bank. When this is done one suffers the humiliation of having the bank refuse to honor the check, and the person infringing is open to the criticism of being unbusiness-like at least, and there is usually a small extra charge to pay.

Should one desire to countermand the order of payment on a check after it is issued the payment can usually be prevented by notifying the bank in sufficient time.

Stubs are the inner margin of a check book, from which the checks are detached as used. Upon either these or the inserted pages of the pocket check book data should be recorded concerning the check which is detached. Space is given for noting the data, number of the check, amount, the name of the person to whom it is made payable and that for which it is given. These facts serve as guides in proving the vouchers when returned from the bank. Properly kept, the stubs indicate at a glance the amount still remaining in the bank.

Vouchers

Overdrawing

Countermanding

Stubs

From the preceding facts it will be seen that the bank may be made as valuable aid to the housewife in conducting her business as for anyone else who has exchanges to effect. By means of checks money may be more easily and safely transferred than in any other way, since they can be enclosed in letters, if necessary, and they avoid the danger of mistakes in "making change," or of loss of money. Since they may be made payable to a stated person only, if lost they are of little value to the finder. Even if lost after indorsement, the payment may be withheld by notifying the bank.

A check eventually becomes all the receipt necessary in paying bills, thus saving any further trouble of receipted bills. If checks are used entirely in payments, the vouchers constitute a comparatively complete household account in themselves, but this is rarely feasible, as employees find checks an inconvenient form of payment, since they are often not identified so that they can get them cashed; besides, checks are quite unknown to them, so that they are slow in appreciating them as money equivalent, and their hours are such as not to conform well with banking hours.

The pass book is important as a record of the depositor's standing at the bank. That this record may be kept accurately, it is necessary to present the book with each deposit. The depositor is never at liberty to make entries in it herself; that can only be done by the receiving teller. The pass book should be presented when called for and should be balanced as often as once a month if a considerable business is done through the bank; even if the pass book is lost, the money may still be drawn out at will.

Returned vouchers should always be compared carefully with their stubs Should there be any discrepancy between the balance as given by the bank and that shown in the check book, one should determine whether this corresponds exactly with the amounts of any checks issued, but not returned.

Vouchers as Receipts

Comparing Vouchers with Stubs

Neither check nor pass book need affect in any way the household account book, except as they are made to be valuable aids. They form a very convenient department of the cash drawer, the cash in hand and cash balance in the bank together making up the sum total on hand.

The Two Sides Of An Interleaved Pocket Check Book, Four Checks To A Leaf

Bank

Account Bookkeeping

In some cases if a bank account is properly kept it may serve as a fairly complete system of bookkeeping in itself. In such a system it is necessary to deposit all money received, making careful record on the blank sheets of the check book of the date, amount, source, etc. Then all bills possible should be paid by check. The vouchers are a receipt in themselves. These returned checks, with the receipted bills, filed in an ordinary 25-cent bill file, give a safeguard against paying the same bill twice. All bills should, of course, be checked up before being paid. The stubs of the check book show for what the money was spent-so much for groceries, so much for the butcher, for gas, milk, rent, dress goods, etc. When cash is necessary, as in paying employees or small incidentals, this can be drawn from the bank, or in some cases obtained from an obliging tradesman, who will exchange cash for checks. Memorandum should be made on the stub as to how the cash drawn is expended, or, much better, a petty cash account can be kept in a book or on cards. At stated periods a summary may be made from the stubs and from the receipted bills as to how the money has been expended.

This system is not to be recommended for those who should look after the pennies carefully. The incidentals will be found to foot up to a surprising amount and it is always better to pay cash for groceries, meat, etc. However, such a system is better than none, and as it is practically automatic, it can be followed throughout the year with very little effort. The poorest system, kept accurately from year to year, is better than the most perfect system kept only intermittently.

In a family which is properly organized financially there is a definite idea as to how the income shall be divided. A certain proportion is allowed for rent, food, saving, etc., as already indicated. Then each member of the family should have a personal allowance, to include definite expenses, of which a personal account is kept. As soon as a child is old enough to trust with 5 or 10 cents of its own he should be given such allowance regularly and taught how to spend as well as to keep account of expenditure. Only by experience can one learn how to spend wisely.

Better than None

Financially Organized Family

A Check With Stub Attached