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I Page Four ) SUPPLEMENT TO. THE MeHENRY PLAINDEALER % Thursday, July 26, 1996 LONG STORY OF CHECK IS WONDER OF BUSINESS WORLD Have you ever stopped to wonder how many times the checks you write are handled and by how many different people? Even though banks ftse different methods the system used by the McHenry State Bank is representative of the process used throughout the country. The clearing of checks is one of the wonders of the business world. With the use of clearing houses it is possible to collect a check drawn anywhere in the world. Great strides have been made in the process of clearings which has resulted in better service for the bank customers. The check you send to another City will be deposited in the , payee's bank where the teller will check it for proper endorse^ ment. The; next stop will be the proof department where the amount is verified. Your^check is then endorsed by the receiving bank and listed with otjier checks to be sent to the clearing house. The clearing house will , endorse the check and route it to your bank. Each bank has a number and routing symbol printed on its checks to speed the process of clearing. Your check will arrive at the McHenry State Bank by armored carrier service during the night so as to be ready for processing the next day. The first stop at the McHenry State Bank will be the proof machine where the amount is again verified and listed. Tlie bookkeeper then checks the date, endorsement and signature and if all are found correct sorts the check with the checks received through the window. Payment is then made to the clearing house for all checks accepted for payment. The following day -your check is posted to your ledger sheet which is the bank's record of your account. The next step is the posting of the check to your monthly statement. After the ledger and statement posting runs are balanced, the Check is microfilmed to make a permanent record for future reference. When the check is finally paid and charged to your account, it is cancelled and filed until the end of the month when statements are prepared. At the end of the month your check is removed from the file along with all other checks written and the count is compared with the count on your statement. Your checks are then, put in your statement at the end of the month's business. Thf statement is then mailed or filed to be delivered to the customer. The check you write is probably handled a minimum of fifteen times before it is returned to you to serve as your pej> manent receipt. FEDERAL RESERVE MEMBERS OFFER MANY MORE SERVICES The United States was divided into twelve districts, each of which has a central Federal Reserve Bank. The reserve banks were capitalized by requiring each national bank to purchase Federal reserve stock in an amount equal* to six per cent of its own capital and surplus. Federal reserve banks are empowered to rediscount certain types of notes, drafts- and commercial bills of exchange for member banks. Export and import acceptances having not more than ninety days to run may also be rediscounted. These provisions made it possible for member banks to extend more credit than they ever could before. If a bank can discount a note, for example, and then send it to the Federal reserve bank j for rediscount at a lower figure, it earhs the difference and yet has not lowered its own Cash position. As a corollary, the Federal reserve banks have great power to control the expansion or contraction of credit, since they can raise or lower the rediscount rate, and thus make it either more or less attractive at any given time fdr member banks to rediscount the paper they hold. Every Federal reserve bank must accept at par all checks and drafts sent in by member banks for collection. Thus the problem of collecting out of town checks has been reduced to an absolute minimum for banks belonging to the Federal reserve system. The Phoenicians made a lasting contribution to banking in that they adopted and modified the Egyptian alphabet and used Egyptian papyrus scrolls for banking and commercial transactions. BURGLAR ALARM SYSTEM FINEST OBTAINABLE The burglar_alarm system to the new McHenry State Bank is a Type A-100 Microphone Vault Alarm. This system is an Underwriters' Approved Grade A Bank Vault Local System, which provides complete protection for the vault structure. This very latest alarm was installed by the Duplex Electric Company of New York, which has specialized exclusively in the manufacture installation and service of bank vault protection systems for over fifty years. Duplex Vault Alarm Systems have many basic features not found in other types of systems. Sensitive microphone detectors will be installed on the interior of the vault. These will pick up the sound of any, burglarious attack upon the* concrete walls. The sounds of such an attack are transmitted electrically to the control apparatus, and will result in the ringing of the outside alarm bell and a simultaneous alarm direct to the police station. Tlie vault door -is fully protected by heat-sensitive thermostatic devices. These will operate in the event that an attempt is made to burn through the vault door. There are also contacts placed upon the jamb of the door which will sound the alarm in the event that the door is opened while the system is in its nighttime operating period. These contacts are automatically controlled by a jewel movement timer, and will provide continuous protection for up to 105 hours. The outside alarm contains electrical and mechanical ringing devices. The mechanical device will operate in the event that an attempt is made to destroy the cable leading up to the bell. The bell housing is fully protected by electrical circuits and tamper contacts, so thkt the alarm will sound in the event thai an attempt is made to sabotage the bell. The bank is also protected during its normal banking hours by a silent hold-up system direct to the police station. The alarm may be sounded from any one of the several tellers' positions, without any audible indication in the banking room. At the instant one of the hold-up stations THIS BUILDING WAS THE HOME OF STREET, FROM 1915 UNTIL THE PRESENT THE MeHENRY STATE BANK IN MAIN TIM Be fro COMMUNITY INTERIOR SERVICE DRAPERIES and INSTALLATIONS Phone 4S'0 CONVENIENT DRIVE-IN BANKING mmmmm WAYNE HUMMER & CO. Chicago to the MeHENRY STATE BANK MEMBERS NEW YORK STOCK EXCHANGE O is operated, the police will receive an audible and visible signal indicating that a hold-up attack is in progress. All of the above equipment provides the bank with 'roundthe- clock protection against, armed robbery and bank vault burglary. BANKING FRATERNITIES The McHenry State Bank, in addition to being a member of the Federal Deposit Insurance Corporation and Federal Reserve System, is also a member of several banking fraternities. The local bank has been an active member of the McHenry- Boone County Bankers Federation since its inception several years ago. The local bank is also active in the National Association of Bank Auditors and Comptrollers belonging to the group that includes McHenry, Lake and Northern Cook County. The McHenry State Bank holds membership in the Illinois Bankers Association, The" Independent Bankers Association and the American Bankers Association. BANKING IN THE U.S. There was little banking done in the United States until after the adoption of the Constitution, because before that time there was no sound currency upon which to base an effective banking system. In fact, there were only three state banks in existence before 1787. The Bank of North America, organized under the leadership of Robert Morris, began business in Philadelphia on January 7, 1782, and not only materially assisted in financing the Revolution, but was unquestionably an asset to the community as well. This bank, together with the Bank of Massachusetts and the Bank of New York, both of which were founded in 1784, marked the real beginning of American banking. In direct contrast to the sadly depreciated Continental and state currency, the notes issued by these1 banks were redeemable in specie, and represented the first step forward in placing the finances of the Union on a sound basis. ' The earliest loan was made four thousand years ago. 204 So. Green St. McHenry, 111. Congratulations and Best Wishes For CONTINUED GROWTH To The New MeHENRY BANK MARENGO STEEL PRODUCTS • STiUCTOitAL STiiL * MISCELLANEOUS MARENGO, ILL. PHONE 27 as cmr Tide Guarantee Poi'ky See the many fine home values now offered by builders and redtow. Bat be flare the seller provides a Title Guarantee Policy ... then you'll have no worries should anyone ever question your title as guaranteed. Your lawyer will tell you that old real estate claims can come to light at any time. If this happens, we will defend your title at no cost to you ... settle any loss promptly. Once you have the policy, there is no further cost to keep it in force. Ask for free copy of "WHY SHOULD YOUR TITLE TO REAL ESTATE BE GUARANTEED?** CONGRATULATIONS TO MeHENRY STATE BANK ON THE OCCASION OF THEIR 50TH ANNIVERSARY AND THE OPENING OF THEIR NEW HOME MeHENRY COUNTY TITLE CO. 114 Benton St. Phone 1140 Woodstock, III. c. t