Such a statement is almost beautiful in its simplicity, and the entry “postages” may, perhaps, give us some clue to the mystery, as it is evident that a manager, by debiting charges in one sum, is thereby enabled to hide certain debits such as “postages,” “telegrams,” “legal expenses,” “stamps,” and so on, at which, were they entered separately in the bank-book, the customer would probably strongly protest. And then, again, by adopting this method of darkness, those persons who leave everything to the agent never know their rates, and they are sometimes too timid to call and inquire, as though fearing that such a request would reflect upon the agent’s honour.

Certain banks have an account open in their ledgers called Law Charges or Sundry Charges, to which doubtful debits are posted in the names of various customers. At the end of each half-year these sums are credited to the account in question and included in the clients’ charges. When, for instance, a manager does not wish a person to know that he is paying a fee of £3 3s. to the bank’s solicitors for the examination by them of certain deeds which he has deposited as security, he will probably resort to this subterfuge.

We can now criticize the account of John Jones, who on the 31st December, 1902, owed his banker £500 2s. 6d., and examine the entries in his pass-book from that date to the 30th June, 1903, when his bankers rule off their books and calculate their charges. Assuming that Mr. Jones keeps proper books, he will have an account in his ledger, which, after making allowance for cheques drawn but not presented for payment, will agree with his pass-book in every particular. The following is a copy of his bank-book:—

The London and Cheatem Bank, Ltd., with Mr. John Jones.

Dr.Cr.
1903. 1902.
Jan.20.To Cash£30016Dec.31.By Balance£50026
1903.
Apl.22.To Cash9013Feb.15.By Smith1000
May15.To Cash20050Mar.31.By Jones7034
May18.To Cash5000Apl.22.By Robinson806
May31.To Cash900May26.By Self5100
June10.To Cash10000June5.By Williams16112
June28.To Cash700June25.By Brown723
June30.To Interest032June30.By Charges526
By Balance133188
£7561011 £7561011
June30.To Balance£133188

Mr. Jones’ ledger, then, assuming that none of his cheques are outstanding, will show the same balance at the debit of “bank,” though, of course, the dates will not agree, as Mr. Jones credits the bank on the day that he draws a cheque, whereas the bank debits him on the day that it pays it. We can see that his banker paid a cheque to Smith on the 15th February. If John Jones drew the said cheque on the 12th, then he debited Smith’s account and credited the bank on the same day. But these entries, as we shall see in our next illustration, appear upon the opposite sides of the banker’s ledger.

Mr. Jones, whose securities are tangible, has arranged with the manager that he is to pay 4 per cent. per annum on the overdraft and ⅛ per cent. on his turn-over, and to receive 1½ per cent. on his daily credit balances. Having received his pass-book, he wishes to check his charges, and after making two or three attempts, he is convinced of the futility of his efforts, so renounces his task in despair. He has worked the figures out in his own way, which, though a little primitive, he generally finds answers pretty well, and, as his figures come to something like those entered in the pass-book, he supposes that it is all right. Perhaps the following copy of his account as it stands in the bank’s ledger may therefore prove both illuminating and instructive:—

Jones, John, General Dealer, 5, High Street, Exeter.