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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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538 HISTORY OF THE BANKwriting At Credit slips and in marking off items in Cash ItemsAccount.As soon as it was ascertained that this change was workingsatisfactorily, the plan of making entries directly throughBranch Clearings Account was extended to other classes ofitems. First of all, cheque lists for correspondents in theUnited States keeping accounts with the head office, wereincluded; 1 on and after May 15, 1913, 2 settlement drafts infavour of other banks drawn on Toronto were added to thelist; on July 15, 1913, money parcels despatched to otherbranches; 3 and on September 1, 1913, settlement drafts infavour of other banks drawn on Montreal. 4 Finally, on April 3,1914, instructions were given to debit cheque lists sent tocorrespondents in the United States keeping accounts withbranches of the bank, to the branch at which the account waskept.These changes, while decidedly advantageous from thepoint of view of reducing the number of outstanding items inthe books of the bank, thus facilitating the <strong>com</strong>pilation of themonthly statements for the Government, increased the volumeof entries passing through Branch Clearings Account andtended to cause a recurrence of the old difficulty experienced inbalancing that account. After the matter had been givenmuch study it was decided to try the experiment of reorganizingthe Branch Clearings system by districts corresponding withthose into which the bank was already divided for administrativepurposes. The idea at the basis of this division was thatby far the larger proportion of the entries which each branchhad for others would be for those in the same geographicaldistrict, and that by eliminating these from the general BranchClearings Account and segregating them in correspondingdistrict accounts, not only would the rapidity with which the'See Head Office special circulars of December 3 and 6, 191*, and No. 2006, datedFebruary 21, 1913.2See Head Office circular No. 2090, dated April 25, 1913.See Head Office circular No. 2146, dated June 27, 1913.4 See Head Office circular No. 2194, dated August 1, 1913.

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