As chief executive officer, the cashier ordinarily conducts the correspondence of the bank and supervises the subordinate officers and clerks in their duties of receiving and paying money and keeping the books and accounts. He also sees that proper notices of meetings are sent to shareholders and directors and that the necessary minutes of such meetings are properly recorded, to be afterwards signed by the president and attested by himself. It is customary, too, for the cashier (and the president) to sign all certificates of stock issued by the bank.

In conclusion, it may be said that while the cashier has no power to shape or direct the policy of the bank's business, it is his duty to see that all the details of such policy-not inconsistent with law-as the directors may adopt, are carried out with the utmost faithfulness, diligence, and skill.

GENERAL REMARKS, IN CONCLUSION, REGARD-
ING THE NATIONAL BANK SYSTEM.

In the preparation and compilation of this work certain conclusions have forced themselves upon the mind of the author, which he ventures to embody with the work, and to give for what they may be worth.

By requiring the maintenance of a "lawfulmoney reserve upon deposits, imposing upon the banks restrictions in the matters of real estate transactions, and holding their own stock, and in failing to grant them the power to deal in stocks and bonds, it would appear that the framers of the law, in the light of past experience, aimed to create a banking system, the resources of which should, in convertibility and activity resemble the blood. circulating through a healthy human body, and to prevent the clogging of its arteries and veins with impediments which tended to produce financial torpor, disease, and death. How wisely these lawmakers builded is attested by the existence to-day

avoidable, and under such circumstances it is only necessary that the bank should look carefully to securing itself for these temporary loans, by warehouse or elevator receipts, or bills of lading, further protected by fire or marine insurance, in order to eliminate from the practice the chief elements of danger. Whenever it is practicable to do so, demand notes for the average amount of accommodation granted in this manner should be taken, and, of course, interest should always be charged for the use of money loaned in this way.

In reporting overdrafts in statements of condition to the Comptroller, the amount of same should not be deducted from "deposits" so as to decrease liabilities shown under this item in the report, but entered as an item of "resources." In classifying them in schedule on back of report, the "secured" should be separated from the "unsecured," and in stating amounts "standing" for certain periods of time. named in the schedule, only overdrafts that have been continuously standing at fixed amounts for the periods named, without any change in the accounts in which they appear should be stated as "standing."

Renewing Paper by noting Payment of Interest on Same.

With some banks it is the custom to renew paper at maturity by simply noting or indorsing the payment of interest on it. The distance at which the customers of a bank live from it in some localities, the inconvenience they would undergo in coming personally to renew their notes at maturity, and other circumstances, make this course necessary in such cases, and sometimes desirable; but care should always be taken by the bank to see that no claim on any indorser or surety on the paper is forfeited by failure to give such indorser or surety proper and full notice, by protest or cther means, of its non-payment at maturity, and this precaution should be always taken when paper becomes overdue, whether interest is paid at maturity or not.

In extending paper by payment of interest, a full memorandum should be noted on it, in ink, of the amount of interest paid, the date on which it is paid, and the period of time for which it is agreed to extend it, so that these data may show the basis of the new transaction.

Renewal of Discounted Commercial Paper.

It sometimes occurs that paper originally discounted by a bank as "commercial or business

bullion where this is a part of the bank's regular business. The cashier also has the power to indorse paper intrusted to the bank for collection, and upon receipt of money in payment of contracts to indorse and deliver paper and collateral security representing the same; but he has no inherent right to indorse non-negotiable paper, or to compromise a debt to the bank, or change the terms of an original contract without express authority from the board of directors. Of course he has no right in his official capacity to indorse his own individual paper.

In cases of emergency he may, for the purpose of meeting the obligations of the bank, rediscount negotiable paper or pledge negotiable securities in order to borrow money, and even execute a promissory note for this purpose; but he is not empowered to borrow money continuously and habitually for the purpose of providing additional capital in this way. As a rule, however, it is better that all borrowings by the bank should be made with the knowledge and under the express instructions of the board of directors.

It is within the power of the directors to limit these powers of the cashier; but in case he exercised them in spite of such restrictions his acts