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'' 8 22.5 /0
1.3


Trade '.


468,088


5.8


Public service (not elsewhere classified) . .
Professional service


13,558
733 885


0.2
9 1


Domestic and personal service


2 530 846


31.3


Clerical occupations


593 224


73









THE EMPLOYEE, PAY, AND PROMOTION 179



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Trade
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All occupations ...
Agricultural pursuits
Professional service
Domestic and personal service
Trade and transportation .
Manufacturing and mechanica



180



BUSINESS EMPLOYMENTS



TABLE XI. DISTRIBUTION BY GENERAL DIVISIONS OF

PERSONS 10 YEARS OF AGE AND OVER ENGAGED IN

GAINFUL OCCUPATIONS, BY DIVISIONS AND STATES, 1910.

TRADE AND TRANSPORTATION



Table 10
DIVISION AND STATE


NUMBER


PER CENT
DISTRIBUTION


Total
persons
occupied


Transpor-
tation


Trade


Trans-
porta-
tion


Trade


United States . .
Geographic divisions
New England . .
Middle Atlantic .
East North Central
West North Central
South Atlantic . .
East South Central
West South Central
Mountain ....
Pacific


38,167,336


2,637,671


3,614,670


69


9.5


2,914,680
8,208,885
7,257,953
4,449,043
5,187,729
3,599,695
3,507,081
1,107,937
1,934,333


188,988
652,862
551,880
347,913
256,840
143,190
181,850
114,309
199,839


310,187
982,279
768,797
460,740
317,895
190,624
244,748
96,493
242,907


6.5
8.0
7.6
7.8
5.0
4.0
5.2
10.3
10.3


10.6
12.0
10.6
10.4
6.1
5.3
7.0
8.7
12.6


New England
Maine . .


305,457
191,703
144,089
1,531,068
251,901
490,462

4,003,844
1,074,360
3,130,681

1,919,055
1,036,710
2,296,778
1,112,998
892,412

835,452
826,313
1,288,336
217,418
219,077
441,114
621,333


20,679
11,196
8,470
105,521
14,352
28,770

320,480
93,541
238,841

152,999
75,711
194,236

70,480
58,454

76,230
65,123
91,313
13,813
12,292
36,008
53,134


26,275
14,583
10,837
183,519
27,238
47,735

545,359
129,549
307,371

201,441
99,676
284,569
104,414

78,697

86,761
85,087
143,608
17,910
19,225
46,869
61,280


6.8
5.8
6.9
6.9
5.7
5.9

8.0
8.7
7.6

8.0
7.3
8.5
6.3
6.6

9.1
7.9
7.1
6.4
5.6
8.2
8.6


8.6
7.6
7.5
12.0
10.8
9.7

13.6
12.1
9.8

10.5
9.6
12.4
9.4

8.8

10.4
10.3
11.1
8.2
8.8
10.6
9.9


New Hampshire .
Vermont ....
Massachusetts . .
Rhode Island . .
Connecticut . . .
Middle Atlantic
New York ....
New Jersey . . .
Pennsylvania . .
East North Central
Ohio


Indiana


Illinois


Michigan ....
Wisconsin ....
West North Central
Minnesota ....
Iowa


Missouri ....
North Dakota . .
South Dakota . .
Nebraska ....
Kansas





THE EMPLOYEE, PAY, AND PEOMOTION 181



TABLE XI. DISTRIBUTION BY GENERAL DIVISIONS OF

PERSONS 10 YEARS OF AGE AND OVER ENGAGED IN

GAINFUL OCCUPATIONS, BY DIVISIONS AND STATES, 1910.

TRADE AND TRANSPORTATION (CONTINUED)



DIVISION AND STATE


NUMBER


PER CENT
DISTRIBUTION


Total
persons
- occupied


Transpor-
tation


Trade


Trans-
porta-
tion


Trade


South Atlantic
Delaware ....
Maryland ....
District of Columbia
Virginia ....
West Virginia . .
North Carolina . .
South Carolina . .
Georgia


85,863
541,164
157,965

795,568
448,490
947,839
728,627
1,160,126
322,087

866,980
855,546
997,524
* 879,645

672,403
679,183
598,629
1,556,866

178,747
131,088
73,606
338,724
121,497
87,825
131,540
44,910

521,501
305,164
1,107,668


6,013
42,776
12,441
49,033
32,531
29,601
17,402
46,092
20,951

42,116
43,659
33,749
23,666

24,624
40,754
32,629
83,843

23,978
11,833
10,839
32,088
9,413
8,698
12,322
5,138

60,525
35,021
104,293


7,444
61,646
20,552
52,324
27,555
39,028
25,710
61,430
22,206

60,281
59,189
42,743
28,411

31,372
47,896
49,754
115,726

13,280
10,586
3,927
39,139
6,957
6,230
12,979
3,395

56,923
34,386
151,598


7.0
7.9
7.9
6.2
7.3
3.1
2.4
4.0
6.5

4.9
5.1
3.4

2.7

3.7
6.0
5.5
5.4

13.4
9.0
14.7
9.5

7.7
9.9
9.4
11.4

11.6
11.5
9.4


8.7
11.4
13.0
6.6
6.1
4.1
3.5
5.3
6.9

7.0
6.9
4.3
3.2

4.7
7.1
8.3
7.4

7.4
8.1
5.3
11.6
5.7
7.1
9.9
7.6

10.9
11.3
13.7


Florida


East South Central
Kentucky ....
Tennessee ....
Alabama ....
Mississippi . . .
West South Central
Arkansas ....
Louisiana ....
Oklahoma ....
Texas


Mountain
Montana ....
Idaho


.Wyoming ....
Colorado ....
New Mexico . . .
Arizona ....
Utah ...


Nevada ...


Pacific
Washington . . .
Oregon


California ....



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PAET THREE

FINANCE AS ILLUSTRATED BY BANKING



PAET THREE
CHAPTER XIII

BANKING

The Business : its Nature, Divisions, and Future.
There are six kinds of banking institutions in the
United States, federal reserve banks, national banks,
state banks, trust companies, savings banks, and build-
ing and loan associations. Besides these there are many
private firms of bankers, and stock and bond brokerage
houses, whose business is in many respects closely allied
to that of the banks.

The essential functions of a bank are to receive
deposits and make loans. There are also a number of
other services performed by different kinds of banks,
such as issuing notes and dealing in domestic and
foreign exchange.

National banks derive their charters from the national
government. They serve as depositories for public funds
and for individuals and firms. They grant credit and in
large measure furnish a medium of exchange in the form
of checks, as well as that of currency, which they are
allowed to issue under the National Bank Act. The
national bank is a commercial bank and loans largely
to commercial interests. Sometimes it has a savings

department.

187



188 BUSINESS EMPLOYMENTS

State banks are essentially the same in the character
of their business as the national banks, except that they
do not issue notes. They are chartered by the state and
regulated by state officials.

The trust company receives its charter from the state
in which it is located. It can do all that the national
bank can, except to issue currency. It receives money
on deposit, makes loans, grants credits, acts as trustee
for individuals and estates and as transfer agent for
corporations. Some trust companies have savings de-
partments.

The savings bank, also, receives its charter from
the state. In Massachusetts and New York all savings
banks are mutual, the deposits being the capital of
the bank and not subject to check. Investments of
savings banks are all limited by public statutes, and
first mortgage on real estate is the preferred form of
security. Mutual savings banks are in the nature of
philanthropic institutions.

The building and loan association is chartered by the
state. It is the most democratic form of banking. Its
distinctive feature is the compulsory system of monthly
payments by depositors, this being its sole form of de-
posit. Investments are almost wholly in first mortgages
on real estate. In Massachusetts the building and loan
associations are called cooperative banks.

The stock and bond business is carried on without
incorporation, usually by brokerage firms which are
ordinary partnerships. Members of a sto.ck exchange
deal in railroad and industrial stocks and bonds and
in town and city bonds.






BANKING 189

Under the Federal Reserve Act of 1913 there have
been established twelve federal reserve banks, which
began business simultaneously on November 16, 1914.
These banks are similar in character of organization
to other banks, with the exception that their capital is
subscribed by banks and that their business is only with
banks. National banks and state institutions that may
avail themselves of the privilege of joining the system
are obliged to deposit a portion of their reserve moneys
in these banks.

The federal reserve banks will make the commercial
notes invested in by its members available for reserve
purposes through their rediscounting function. They
will also issue federal reserve bank notes which in time
will probably take the place of the notes now issued by
the national banks, and they will become clearing houses
for checks on banks throughout the country.

While the new system modifies the national banking
system, it will not materially change the work of the
bank employee. It will, rather, in some degree increase
the avenues of opportunity to the efficient and ambitious
young man in the banking business.

The physical conditions of the occupation are of the
highest grade. A possible danger is that of the mes-
senger service, on the street and in carrying large sums
of money. There is great moral danger to young men
on the speculative side of the stock and bond business,
and, as a rule, no broker is allowed to receive orders
from a clerk of another firm.

There is keen competition among national banks
and trust companies in bidding for deposits, and in the



190 BUSINESS EMPLOYMENTS

stock and bond business for speculation and invest-
ment. There is little competition among savings banks
and cooperative banks. These have their lists of de-
positors, and interest rates are controlled by business
conditions.

The business of the future in all lines will be excel-
lent, because of the vital connection of the banking
business with the money system of the country, and
with all lines of activity in the financial and industrial
world.

The Board of Directors. The management of commer-
cial banks and trust companies is vested in a board of
directors elected by the shareholders. The usual qualifi-
cations for a director are that he shall be a citizen of
the United States and the owner of at least ten shares
of the stock of the bank or trust company, free from
all encumbrance. In the case of mutual savings banks
these officers are called trustees, and are elected by the
corporation.

Executive Officers. The chief executive officers of a
bank are generally the president, vice president, cashier,
and assistant cashier. In large banks there may be more
than one vice president and more than one assistant
cashier. In trust companies and savings banks the title
of the officer whose duties correspond to those of the
cashier is usually " treasurer."

The President and Vice President. The president is
the chief executive of the board of directors. He has
general supervision of the business of the bank in its
various departments. He determines or joins with other
officers in determining loans and investments and other



BANKING 191

matters of great importance in the business of the bank.
The vice president is usually authorized to act in the
absence or inability of the president. Otherwise he
performs such duties as are assigned to him by the
directors.

The Cashier and Assistant Cashier. The cashier is
usually the chief executive officer of a bank in the
routine of its management. He is generally made re-
sponsible for all the moneys, funds, and valuables of
the bank. He signs all contracts, checks, drafts, and
circulating notes. The assistant cashier performs duties
assigned to him by the directors, especially in the way
of relieving the cashier of smaller responsibilities.

Departments of Bank Work. The departments of a
bank are made up of the following divisions: paying,
receiving, discount or note division, collections and cor-
respondence, loans and discounts, bonds and stocks,
foreign exchange, credit, information, bookkeeping, and
advertising.

These departments cover in a general way the work that is
constantly going on within a bank under the cashier as the
executive head. There may be a chief clerk under him who has
supervision of the clerical force, giving them general instructions
and guidance, and settling points of doubt on matters of detail
about which the cashier need not be troubled. There are assist-
ant tellers and clerks, messengers, porters, and various employees
whose number and duties are determined by the volume, charac-
ter, and variety of the business of the particular bank. Though
departments may be clearly defined in their main function, they
come in contact at many points, and there is much passage to
and fro between them. 1

1 The Modern Bank, by A. K. Fisk. D. Appleton and Company,
New York, 1904.



192 BUSINESS EMPLOYMENTS

In the small bank some of these departments may be
consolidated, but the duties remain the same even when
performed by fewer persons.

The Paying Teller. The paying teller is provided with
money to meet the ordinary demands of a day's business.
When a check, usually drawn on the bank itself, is pre-
sented for payment, the paying teller examines it as to
genuineness of signature and as to the amount called
for, and satisfies himself in regard to the identity of the
person presenting the check. He stamps checks thus
paid and enters them in a memorandum book. At the
close of the day he foots up his entries and deducts the
amount from his cash on hand in the morning. He
makes a final statement of the day's transactions, turn-
ing it over to the general bookkeeper.

The Receiving Teller. The receiving teller is the in-
dividual with whom customers deposit money or other
funds. He sees that a customer's deposit slip shows
clearly the amount deposited, and enters the amount in
the pass book of the depositor. He also enters the name
of the depositor and the amount .in a blank book, which
must contain all the day's transactions and agree with
the amount of cash deposited. He assorts each day's
deposits, doing up currency in bags or packages and
stamping and listing checks. In a very large bank the
receiving teller acts, as receiver only ; the details of the
division are attended to by other clerks or departments.

Discount Clerk. The duty of the discount clerk is to
number and enter in a book, called the discount register,
all loans and discounts made by the bank. He keeps a
memorandum of all payments upon loans and discounts,



BANKING 193

at the close of the day giving a statement to the general
bookkeeper and turning over all money received to the
paying teller. In some banks these duties are performed
by the note teller.

Collection Clerk. The collection clerk has charge of
all time drafts and notes, not payable on demand, turn-
ing them over to the note teller or corresponding clerk
just previous to maturity.

Corresponding Clerk. The corresponding clerk keeps
a record of all items to be sent away by mail, and
sends them as time for payment approaches. He re-
ceives remittances and passes them to the discount
clerk or note teller.

Mail Clerk. The mail clerk opens the mail, checks off
the contents of letters, and turns over all papers to the
proper officials or departments. At the close of the day's
business he sees that remittances and collections from
individuals and banks are acknowledged.

Exchange Clerk. The exchange clerk fills out checks
or drafts on other banks or bankers, has them signed
by the proper officer, and receives and turns over to
the proper teller all money or checks taken in payment.

The Bookkeeping Department. In the banking busi-
ness it is especially necessary that all transactions shall
be recorded in a clear, simple, and systematic manner.
Every precaution must be taken to guard against fraud
or dishonesty from any source. A modern bank is com-
pelled to do many things involving much clerical labor
and expense and resulting in a very elaborate book-
keeping system. In an especial sense the business of a
bank rests upon the efficiency of its bookkeeping force.



194 BUSINESS EMPLOYMENTS

The Head Bookkeeper. The head bookkeeper has charge
of this important division of the work. He must be a
skilled accountant, have executive ability, and under-
stand thoroughly all details of the bank's activities.

The General Bookkeeper. The " general bookkeeper "
is the term applied in banks to the bookkeeper who keeps
the " general ledger " of the bank, upon which, simply
and accurately recorded, appear condensed results of all
transactions, and the resources and liabilities of the
business under their chief divisions. He keeps, also, a
separate account for every bank with which business is
done, a profit and loss account, and a " general state-
ment" book in which balances are shown. He must
also be a reliable and skilled accountant.

The Auditor. In large banks there is an auditor, who
reviews accounts, vouchers, and records of receipts and
expenditures, and is in direct charge of the accounting
department.

Department of Advertising. A recent departure in
some of the larger financial institutions is the estab-
lishment of an advertising department which attends to
all the publicity work of the various departments. By
the formation of such a division better results can be
obtained than when this work is handled by an officer
in the bank or by some outside agency.

The work of this department consists in bringing to
the attention of the public the various ways in which
a financial institution can serve it. The methods em-
ployed in doing this are by advertising in the news-
papers and financial magazines, by sending out special
literature, and by personal solicitation.



BANKING 195

The Advertising Manager and his Assistants. The
advertising manager, with a corps of assistants, gives
his entire time to the planning and carrying out of
ways and means of securing new business.

The employees of such a division necessarily must
have a general idea of the details of the various depart-
ments in order that they may be able to explain to the
public, either personally or through the channels men-
tioned above, any of the departments in an intelligent
manner. Therefore the men selected for this work are
generally those who have had experience in several
departments.

Pay, Positions, and Opportunities. In the lowest posi-
tion in banking, that of errand boy, very young boys
receive $4 and $5 a week. For regular messenger serv-
ice the pay begins at $6 a week or $300 a year,
increasing, on an average, at the rate of $100 a year.
Young men as check tellers, clerks, bookkeepers, and
bond salesmen receive from $800 to $1000 a year. The
average bank employee receives about $1100 a year.
Tellers, who must be responsible and able men usually
of thirty years or over, have salaries ranging from
$2200 upwards.

Savings banks, being comparatively free from com-
petition and more conservative in form, pay somewhat
higher salaries and offer a better future to one who
must remain in the ranks of the business.

Bank officers receive high salaries because of the
responsibilities involved and the abilities called for.
Officers and heads of departments in banks are not
always taken from the employees ; they are often



196 BUSINESS EMPLOYMENTS

selected by the directors from their acquaintance in
the business world.

The Boy ; Qualities and Training Required. Rarely
are boys employed in the banking industry under six-
teen years, which is the more general age for entering.
Some banks will not employ them under nineteen years
of age on account of the great responsibility of the
messenger service. Boys should be gentlemanly, neat-
appearing, intelligent, honest, businesslike, and able to
concentrate their minds upon their daily work and to
keep silent in regard to the bank's business when out-
side the bank.

The ordinary high-school education is the general re-
quirement for banking. Some boys enter the business
without completing the high-school course, but are con-
sequently often unable to make proper advancement.
Courses in business schools are desirable, and one should
have fair training in mathematics and bookkeeping and
be a good penman. In one bank investigated, having
one hundred ninety-five employees, there were but three
college graduates, one being the cashier. Banking men
wish that this condition were different, but know that it
is best for those who enter the occupation to do so
during their minority.

SUGGESTIONS FROM A BANKER TO A BOY WHO WISHES
TO ENTER THIS OCCUPATION

A boy who is to enter a bank should be obliging, punctual,
and have a pleasing personality. Things of prime importance,
also, are neatness and accuracy in figures and in handwriting.
One's penmanship should be legible and rapid.



BANKING 197

Naturally the boy in a bank should have good habits. The bank
clerk is expected to have a high order of behavior ; he *must not
frequent saloons and pool rooms, as to do so would endanger his
own standing or that of the firm by which he is employed.

If you feel that you have these qualities and can meet these
conditions, you may safely enter the banking business. It is dif-
ficult to obtain good bank clerks and faithful and efficient bank
officers in the great cities to-day.

About March the first each year banks begin to increase their
force on account of the coming summer vacations of their em-
ployees. Banking business is so heavy and so continuous that
new boys and young men must be taken in early enough to learn
the duties of those whose places they will fill during vacation
time. Of the new employees thus added annually those who
show marked ability are retained. The boy also of fair ability
and absolute trustworthiness is usually provided for.

Banks very generally also employ boys from the public
schools as messengers during the summer vacation.

In applying for a position at a bank you should be able to
refer to two or three good men as to your character. If nothing
comes from the application, keep following it up, for the bank
wants the boy or man who wants the place, and many apply.
Take whatever is offered in position or in pay, if you want
this occupation. You will be offered what others are receiving
in the same place.

You should know, if possible, upon entering a bank the
names, nature, and principal features of ordinary business docu-
ments, such as notes, checks, and bills, and something of com-
mercial law. Further knowledge of business documents w r ill
come in your service in the bank. Your mathematics may well
include practice in algebraic problems. Language requirements
are simple, extending only to the ordinary use of English. If
you obtain work in the summer vacation, or your service in the
bank allows, you should later take such courses of study as arfe
offered on banking by schools of administration and finance.
You will thus become of greater service to the firm by which
you are employed, and will more surely place yourself in line for
advancement.



198 BUSINESS EMPLOYMENTS

The Annual Report of the Comptroller of the Currency.
The following tables are drawn from the annual reports
of the Comptroller of the Currency, who is charged with
the duty of chartering the national banks and of super-
vising their operation, and with the execution of the
banking laws of the United States. He makes an an-
nual report to Congress which contains elaborate statis-
tical tables showing the condition of national banks for
the year covered by the report and giving comparable
figures for previous years.

The Comptroller obtains and publishes in his annual
reports information, also, in regard to the various bank-
ing institutions organized under the authority of the
different states and territories. This information is ob-


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Online LibraryFrederick James AllenBusiness employments → online text (page 12 of 14)