| Show A hardworking PIECE OF PAPER the bank check and how il OW it t performs many different services for business Busi american americans are the greatest users of bank checks in the than eight per coat cent of all business transaction transactions in tho united states 14 conducted with money or to put it another way more than nine out ot of ton ten transactions transact lone aro are conducted with com corn mercial instruments of which ono one ot of the most important to is the chock check tho the use of tho the check has become universal in america because it Is ono one of yet moat most bust none devices beyor oror invented the bank baulk transactions ot of mr smith the tore store keeper illustrate in a general way those of all other business people storekeeper smiths customers pay him for tho bode goods he sells jells to them both with caarl and check checks at the end of the day he counte counts up the proceeds of the daye business and find and a hia hill sales 1 bare have amounted to ay say 5 oo 00 what does ho he do with thia this money he owea owes a largo part ot of it to tho the other business concern 8 from which he be purchased at wholesale wh olesa ae the goods he to belling selling some of these companies are irs in mr smitha town and other others are located at some distance dista yace from rom it it even leven small business bust nesa would be a clumsy corn compel pil bated and time wasting affair unless it were for the th facility of the bank check when a check la Is useful mr smith could pay hie his bills billi by sending cash by mall but thia this method of payment would be unwise because of the tho danger of the money being lost in transit again he be might go out and buy express or postal money or oj ders for tho the amounts due but to do this regularly would require a great deal of his time and would involve needless expense besides A money order does only half halt the work a bank chock check does although it la Is in reality a kind of a chock check drawn by the ex press company or by bir the post office in favor of sonia some person or firm arm it Is not returned to mr smith after it has been cashed but goes back to the ex press company or to the post office that issued it it on the other hand a cashed chock check after it comes back to tho the bank and is cancelled Is in returned to mr smith who can keep it as a receipt in proof of the tact fact that his bill has been paid more than this thin in order to keep accurate records mr smith wants to hare have one account in which all his receipts can be entered and out of which all payments can be made he therefore adopts the course that moat most other business ho elneas men and women follow he ile takes his to the bank where it Is safely kept and can be drawn upon as needed the teller te lleren enters the amount in a small pass book which is in a record of deposits the pass book Is issued in mr smiths name and Is handed banded to him together with w t a supply r of blank checks mr smith Is now ready to pay his bills by c checks hacks up to a total of A complete record hia ills W check will be received at any bank where the indorsement endorsement Indor of the person to whom it ie Is made payable which Is to written or stamped on an the back of the check Is to known to be genuine gen utne the bank receiving the check will either pay or credit it to tho the payee and then send it on to the bank in which mr smith deposits depo etts bis his money where the amount will be deducted from his balance the check after utter being properly cancelled will be returned to him at the tho end and of the month he will then have a complete record showing that he deposited that be he drew checks of say to pay some of his bills that he has bas a balance left of and that his bills have been duly paid as shown by tho the cancelled check checks with tho the indorse monts upon them the bank will pay all checks presented to it bearing mr smiths signature as given on his signature card in any sums coverd covered d by the amount of his bank balance which he be continually increases by deposit deposits and decreases by checks drawn against his account this process of making deposits and issuing checks continues day after day both the depositor and the bank keeping their own records millions of such transactions are handled every day by the banks and aad trust companies of the united states Is in one year more than two hundred and fifty billions of dollars in checks have passed through the new york tork clearing house alone payments of these vast sums are made without the use of any actual money A wonder ful system baa has been built up by the use of the small slip of paper we call the bank check the check Is to essential to the business and commercial life of the present day |
