16. Deposit Must Be Sufficient

The next inquiry relates to the sufficiency of the drawer's deposit. How can a paying teller keep watch of the accounts of all the depositors? For this purpose depositors may be divided into two classes : those who keep large balances, and others who keep small and fluctuating ones. There is no difficulty with the first class, and the paying teller soon knows them all. It must be remembered that he has previously served as receiving teller and also as bookkeeper, and when occupying these places has become familiar with the accounts of many or most of the bank's customers.

Again, the bookkeepers know the state of every man's account, and it is their duty to aid the paying teller. In many banks they give him at frequent intervals a list of the names and balances of the smaller and more irregular depositors, and through the assistance thus offered he rarely pays a check without an adequate balance to support it. Lastly, when a bank finds that a customer keeps a very small balance, which is unprofitable, that he often loses sight of the amount and overdraws, he is told that his account is no longer wanted and is cut off.

17. If The Deposit Is Insufficient

Occasionally the balance is too small to pay a check, what shall the paying teller in such a case do? If the drawer is an old and valuable customer who has evidently made a mistake, the teller will pay the check and notify the drawer, who is expected to make the amount good immediately. But if the bank does not wish to incur the risk, there are two or three courses. It may decline to pay the check for lack of funds,. The bank usually is willing to pay to a presenter who is willing to take whatever balance there may be and give up his check. Sometimes a bank will pay the amount, indorse it on the check, and return it to the presenter. This practice has received judicial sanction, but the defect in this method is, the bank has no voucher for its payment. Another way is for the presenter to find out, if he can, how much is lacking to respond to the check, pay the balance, and then present his check a second time for payment. He is then sure of securing the entire deposit.

A more difficult question arises when a number of checks are presented through the clearing house. Suppose that six checks are presented at once, and there is money enough to pay two of them and part of another. One way is to return them to the respective banks to which they belong. When this is done, the bank that receives the check or checks belonging to it first, if all are equidistant from the drawee bank, has the best chance of presenting its checks directly and of receiving payment. If the checks are delivered in the order of their arrangement when received, the bank farthest off may be the first to send its check back and present it again for payment. All clearing houses should have regulations on this subject. Some of them have made a rule providing that all checks shall be paid pro rata. When this is done, the paying bank should demand adequate security, a bond of indemnity, if the presenters are to retain their checks.

If two checks are presented at the same time, and there is money enough to pay one, but not the other, what can or ought the paying teller to do? He can pay either of them or not as he pleases. If he pays one, the other can not legally complain; and if he pays neither, as he very likely may decide to do, his course can not be legally questioned.