LIII Administration op the Foreign Division .... 1083
Characteristics ofForeignCommerce
InstitutionsEngagedinForeignBankingOperations
TheNature and DevelopmentoftheForeignDivision
TheManagement—TheComptroller TheChief Clerkandthe AssistantCashier TheVice-Presidents
Departmentalization
LIV The Elements of Foreign Exchange 1096 ForeignTradeBalance
TheDemandfor Bills ofExchange
Chapter
CONTENTS xxvii
Page TheSupplyofBillsofExchange ằ^ , .
TheReciprocal RelationofExchangeRatesinTwoMarkets FluctuationsintheRateofExchange
CostofGold Shipments
InvestmentandSpeculationinExchange MethodofInvestmentinTimeBills ProfitfromInvestmentinTimeBills
HedgingOperationsinForeignExchange TriangularExchange Operations—Arbitrage Cable Exchange
Sight, Short,and LongBills
EffectofDiscount RatesonMarketmgof Bills
Clean BiUs, Documentary Bills, TrustReceipts, and Bills DrawnAgainstSecurities
CommercialBills andBankers' Bills CommercialLetters ofCredit Travelers' Letters ofCredit Dollar DraftsandCredits Short-Term Loans
Finance Bills—StockExchangeOperation
LV The Elements of Foreign Exchange (Continued) . 1135 ForeignExchange andDiscountMarkets
Brokers,Dealers,andDiscountHouses Commission Arrangements Between Banks The LondonDiscountMarket
Discount Ratesand ExchangeRates
Effect ofBankofEngland Rate onDiscount Rates TheControlofGoldMovements ^
j j
TheGoldStandardandtheGold ExchangeStandard Gold-SilverExchanges
TheGold ExchangeStandard Exchange andthePaperStandard Exchange andSpecieEmbargoes QuotationofExchangeRates Quotationof SterlingExchange QuotationofFranc and LiraExchange Quotationof MarkExchange
t ^ ^•
Recent History of the Foreign Exchanges—The Inflation
Factor r t- t.
FactorsInfluencing Demandand SupplyofExchange TheBalanceofExportsandImportsofMerchandise Paymentsof Freight,Insurance, BankCommissions, etc.
Remittancesby Immigrants
Travelers , _, , r
New Loans,Repayment ofOld Loans, and Repurchaseot Securities
Paymentsof Intereston Old Loans
Speculative PurchasesandSales ofExchange Effect ofWaronFar EastExchange Effect ofWaron Canadian Exchange
rustic LIBRARY
ằrTHEClTYôf OGLOFtADO SPRINGS?.
Chapter Page
LVI The Traders' Department 1174
Functionsofthe Traders—OrganizationoftheDepartment Preparationofthe Parity Sheets
Methodof Using Parity Sheets TheConferenceontheExchanges ThePositions
ActualTrading
FormofExchangeContract
EngHsh MoneyandExchangeCalculation
GermanMoneyand ExchangeCalculations French Moneyand ExchangeCalculations Calculationof Price ofDocumentary LongBills ArbitrageCalculations
Gold ShipmentsandtheCalculations ofTheirProfits TransactionstmderJointAccount
LVII The Foreign Discount Department 1200 Functions and Organization of the Foreign Discount De-
partment
Examinationof theItemattheWindow TheBillsRegister
TheRemittance Letter
RemittanceLetterCoveringSterling Items RemittanceLetterCovering Dollar Items PassingontheOfferings
TheDiscountRate
MethodofPaymentforItemsPurchased Settlementsand Adjustments
Changing DiscountsintoCollections
LVIII The Foreign Tellers' Department 1217 GeneralFunctionsandOrganization
Distribution oftheIncoming MailandCables TheForeignReceivingTeller
TheSale of DraftsonForeignBanks
TheSale ofForeign DraftsbyInteriorCorrespondents CableTransfers
TheForeignPayingTeller
TheForeignPaying Tickets PaymentsbyCashier'sCheck WindowPa^^ments
TheHandlingof BoughtContracts TheHandlingofSoldContracts Investigations
LIX Foreign Collections 1231
Classification ofForeignCollections
TheCollection ofHomeItems TheHandlingofCashItems TheHandlingof CollectionItems
CONTENTS xxix
Chapter Page
TheHandlingof theDiscount Items TheCollection ofForeignItems TheReceiptand EntryoftheItems TheTicketsand RemittanceLetter
RecordoftheItemsBetweenTransmissionandPayment PaymentoftheCollection
LX Commercial Letters of Credit 1245
NatureofCommercialLetters ofCredit Advantagesof TheirUse
Classification ofCommercialCredits AuthoritytoPurchase
DollarCredits
AdvantagesofDollarCredits
TermsofIssue
Factorstobeconsidered inArranging aCommercialCredit TheGuarantor
GuarantyofLettersofCreditIssued for InteriorCorrespon- dents
TheDrawer
LXI Commercial Credit Departments 1264 ImportCommercialCreditDepartment
TheIssuanceofImportCredits
Formsofthe Applicationand Letter HandlingofDocuments
HandlingtheBillsof Exchange Preparationof the Tickets
TheExportCommercialCreditDepartment
MethodofHandlingExportation UnderLettersofCredit IssuanceofCredits
TheDepartmentalRecords AcceptancesUnder ExportCredits PaymentsAgainst Dociiments PaymentsAgainstWarehouseReceipts AdvancesAgainstExportBills
LXII Miscellaneous Departments 1290
Minor Departments
TheNatureofthe ForeignCorrespondenceofaBank TheForeignIncomingMail Department
TheForeignOutgoingMail Department Foreign RegisteredMail
Incoming Currency Shipments TheTranslators'Department TheCableDepartment
Foreign Customers'SecuritiesDepartment
NewForeignAccountsDepartment
Solicitingand OpeningNewAccounts
Chapter _ Page LXIII The Foreign Bookkeeper's Department . . 1305
General DutiesoftheDepartment MiscellaneousRoutineDuties TheBillsPayableBookkeepers The"Their"AccountsBooks The "Our"AccountsBooks TheGeneral Ledger OtherBooks
FORMS AND ILLUSTRATIONS
VOLUME I
Figure Page
1. Graphic ChartShowing Ratio of Loans to Deposits of NewYork
ClearingHouse Banks 82
2. Graphic Chart ShowingRatio ofCash Reservesto Loansof New
YorkClearingHouse Banks 91
3. (a) Graphic ChartShowing RatioofLoans toAggregate Assetsof
AllBanksReportingtoComptroller 93
3. (b)GraphicChartShowingRatioofLoans andInvestmentstoAggre- gate AssetsofAllBanksReportingtoComptroller .... 94
VOLUME n
4. TheFederalReserveDistricts 242
5. ProposedTypeofOrganizationfortheFederal Reserve Banks, 1918 266
6. OfhcialOrganizationoftheFederalReserveBanksofNewYork . 268
7. Graphic Chart Showing Reserves of the Twelve Federal Reserve
Banks 363
8. GraphicChart ShowingSeasonalVariations inFederalReserveNote
Circulation 372
9. Graphic Chart Showing Earning Assets of the Federal Reserve
Banks, 1914-1920 37^
VOLUME m
10. IdealChartofTypicalBankOrganization 538, 539
11. Paying Teller's Proof 549
12. DepositSlip 570
13. SecondTeller'sProof 574
14. RackProofforCashLetters 579
15. A.M.AssemblyRackProof 582
16. MailTeller'sSectional Proof 584, 585
17. FourthTeller'sProof 586
18. CheckClerk'sSectionalProof 594
19. CheckClerk's TrialProof 595
20. TheBostonLedger 597
21. ThirdTeller'sProof 611
22. FifthTeller'sProof 618
23. ProofoftheCouponCollectionDepartment 624
24. Exchange ChargeSheet 693
25. Analysis SheetofTransit Department 697
26. Applicationfor Travelers'LetterofCredit 729 27. TypicalTravelers'Letter ofCreditinUseBefore theWar . . . 730
xxxi
Figure Page
28. TypicalTravelers'Letter ofCreditNowUsed 731
29. T^-picalPre-WarTravelers'Check 736
30. TypicalTravelers'CheckNowUsed 738
31. DoubleTicketforGeneral Bookkeeper'sDepartment .... 762
32. General Journal Proof 763
VOLUME IV
33. Loan EnvelopeforSecurities (face) 838
34. SubstitutionTicket 850
35. GraphSho-n-ingtheUsual SeasonalChangesinMoneyRates, Based
onNewYorkQuotations 860
VOLUME V
36. IdealChartofa Foreign Division ' . . 1090
37. Chart ShowingGeneral DeviationofRatesfromMintPars . . 1161 38. GraphShowing Canadian ExchangeRatesatNewYork . . . 1173
39. Parity Sheet 1178
40. ApphcationforCommercialLetter ofCredit 1268
41. CommercialLetterofCredit 1269
42. AgreementAnnexedtoCommercialLetterofCredit .... 1270
43. Trust Receipt for Goods Shipped Under Commercial Letter of
Credit 1272
44. Bank'sLiabilityTicketforAcceptancesUnder CommercialLetters
ofCreditinForeignCurrency 1276
45. Bank'sLiabilityTicketforAcceptancesUnderDollar Credits . 1276
an,
Banking Principles and
Practice
VOLUME I