Volume 2 - ElectricCanadian.com

THE BRANCH CLEARINGS SYSTEM 535to be used for each branch on any one day, so that the numberof entries in the head office returns was vastly reduced and thepossibility of errors minimized. **At Credit slips" were to bedebited without change or to be returned to the sendingbranch, and all errors in them were adjusted by the branchesinterested according to certain rules devised for the purpose.On April 5, 1902, the announcement was made that commencingon May 1 following, the Head Office Account in thebooks of the branches, and the Advice and Remittance List,would be abolished. Instead a "Branch Clearings" Accountwas to be opened, and all entries for the head office or otherbranches passed through that account. A daily copy of theentries in this account was to be sent to the chief accountantin place of the two old returns. At the branches little alterationin procedure was made by this change, which was one ofname only as far as their books were concerned.One of the weaknesses of the new system was the methodof handling paid drafts and money orders, and this becameincreasingly evident as the business of this character grew involume. Enquiry showed that the sum expended in postagefor the return of these cancelled vouchers was well worthsaving,in addition to which the number of entries in thebooks could be materially reduced by a change of system.Accordingly on March 14, 1905, instructions were issuedthat all drafts 1 and money orders issued on and after March 27next, were to be credited in one total each day to head officethrough the Branch Clearings Account, a list of themto accompany the relative Branch Clearings statement.The same procedure was to be followed with paid drafts andmoney orders, and to save labour new registers were devised forrecording all such items in duplicate, the original being sent tohead office and the duplicate retained at the branch. 2 ADrafts on New York were included, but not those on London, Eng.; the latterwere debited and credited through the Montreal Branch Account, except in the case ofthe larger branches which kept direct accounts with London.*On May 5,1905, instructions were given that at the end of that month eachbranch before closing its books was to enter in the new register all old drafts or moneyorders outstanding in Drafts or Money Orders Issued Accounts.