PRACTICAL
`BANKING
`
`By
`
`EDWARD PRESTON MOXEY. Jr., Ph. D.. C. P. A.
`ASSISTANT PROFESSOR OF ACCOUNTING
`WHARTON SCHOOL OF FINANCE AND COMMERCE
`UNIVERSITY OF PENNSYLVANIA
`
`Member Firm
`E. P. MOXEY & CO.
`CERTIFIED PUBLIC ACCOUNTANTS
`AND BANK EXAMINERS
`
`Copyright
`by
`UNIVERSAL BUSINESS INSTITUTE.
`NEW YORK
`
`1910
`
`Inc.
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-03-31 13:50 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.1
`
`
`BANKING
`
`By
`
`EDWARD PRESTON MOXEY. Jr., Ph. D.. C. P. A.
`ASSISTANT PROFESSOR OF ACCOUNTING
`WHARTON SCHOOL OF FINANCE AND COMMERCE
`UNIVERSITY OF PENNSYLVANIA
`
`Member Firm
`E. P. MOXEY & CO.
`CERTIFIED PUBLIC ACCOUNTANTS
`AND BANK EXAMINERS
`
`Copyright
`by
`UNIVERSAL BUSINESS INSTITUTE.
`NEW YORK
`
`1910
`
`Inc.
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-03-31 13:50 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.1
`
`
`
`32
`
`PRACTICE OF BANKING
`
`This
`order upon funds which he has at the bank.
`deposit even may have been created in the course of
`The result of the system, how
`transaction.
`a credit
`is that instead of keeping money employed from
`ever,
`day to day in the mere work of making payments
`It can be de
`back and forth,
`its use is economized.
`voted to productive employment, while current ex
`changes are affected by the transfer of promises
`to
`pay. The economies of the credit system are particu
`larly evident in the case of two persons or concerns
`having continuous business dealings with each other,
`both buying and selling.
`A Simple Case.
`A simple
`and the
`of a farmer
`that
`is
`case
`in town.
`from whom he buys his supplies
`grocer
`The farmer buys flour and coffee and sugar and
`his
`or weekly
`daily
`countless other
`things
`on
`to town, but he also brings with him and
`visits
`fruit and
`and eggs,
`the grocer butter
`sells
`to
`It would be
`in the course of the month.
`vegetables,
`foolish and entirely unnecessary for him to pay the
`for the
`grocer each time he made a purchase, or
`grocer to pay him each time he made a sale.
`Instead,
`each will run an account with the other until the end
`of the month or some other convenient settlement day,
`if they are wise. All the items which the grocer sells
`to his customer he will enter upon his books, and
`also keep a record of the produce received from him.
`The farmer should do likewise. At the end of the
`month, these two book accounts will be compared and
`offset against each other. We will suppose that the
`farmer has purchased $40.00 worth of groceries and
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-03-31 13:46 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.2
`
`
`
`HOW CREDIT HELPS IN THE WORK OF EXCHANGE
`
`33
`
`has delivered to the grocer in the course of the month
`$35.00 worth of the products of his farm. Here we
`have $75.00 involved, and yet there is only a balance
`of $5.00 which need be settled in cash.
`It might even be possible to extend the system for a
`time, merely making comparison of
`longer
`the ac
`counts at convenient times and making actual settle
`ments only once a quarter or even once a year. For in
`the farmer might feel reasonably sure that in
`stance,
`the following month he would bring to the store an
`amount of produce worth at least $5.00 more than the
`value of the supplies which he would purchase from
`In that case the grocer might simply enter
`his grocer.
`this balance of $5.00 as owing him at the end of the
`first month, and at the end of the second month offset
`it against the $5.00 which he owed the farmer.
`Book Account and Bank Account.
`form of credit,
`This is the simplest
`the book ac
`count, and is used very extensively. As a matter of
`fact, in a large number of cases, no actual promise of
`it is understood
`payment even has boon made, but
`that a customer ordering goods upon a book account
`expects to be held for payment, and such a current
`record kept upon the books of the seller is admitted to
`This
`court as a sufficient evidence of
`indebtedness.
`system may be slightly modified in case the relations
`between buyer and seller are not such as to justify
`It may be that the
`the running of an open account.
`purchaser is unknown to the seller or that the trans
`to hardly justify
`actions are so infrequent
`the
`as
`In that case bank credit
`opening of a book account.
`will
`form a convenient means of
`The
`settlement.
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-03-31 13:47 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.3
`
`
`
`122
`PRACTICE OF BANKING
`if it is possible to persuade him to take payment in
`It might be that the bank would decline
`that form.
`to buy the note on any other terms or, if it did, would
`probably charge a much heavier discount.
`
`s
`
`Commercial Paper.
`The largest class of promissory notes which are
`for deposit
`to the bank in exchange
`ac
`presented
`from commercial
`trans
`counts are
`arising
`those
`that i
`where goods are sold upon credit and
`actions,
`the purchaser's promissory note for the amount i
`Such notes commonly run for
`taken by the seller.
`thirty, sixty, or ninety days, but the person who has
`sold the goods probably desires
`to use the proceeds
`these "bills receivable" at once for the payment
`of
`of wages or other expenses constantly arising in the
`conduct of his business.
`Instead of waiting for them
`to mature, therefore, he will probably endorse
`them
`over to his bank, to whom he will take them for dis
`The amount of discount will depend on the
`count.
`length of time before the notes become due and will
`for
`be figured as interest on the amount advanced,
`The merchant with such notes to discount
`that time.
`will naturally take them to his own bank becausei
`there that he would be most likely to get the accounts
`discounted on favorable terms. Naturally, therefore,
`he does not wish to withdraw the money, but hasi
`He wishes
`turn
`placed to his deposit account.
`to
`these obligations of his purchasers intoa ready means
`of paying his debts, and the deposit account furnishes
`for this purposea means of payment more convenient
`even than cash.
`
`s,
`
`is
`
`t
`
`t
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-04-01 04:13 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.4
`
`
`
`THE BANK CHECK
`
`173
`
`check, even to a person with whom he was not person
`ally acquainted is not liable for the loss,
`inasmuch as
`he was a ' ' bona fide holder for value. ' ' The drawer of
`such a check must lose the money precisely as though
`he had lost a note or a greenback.
`
`Payment by Check.
`For this reason many persons will not receipt a
`bill paid by check.
`itself, after being
`The check
`cancelled and returned to the drawer, becomes
`a
`in order that there may be no
`receipt.
`Sometimes,
`questions as to the exact purpose of issuing the check
`the drawer will specify upon the face of the check
`the nature of the transaction in settlement of which
`it was given.
`
`Insufficient Funds.
`It sometimes happens that a check
`is presented
`for payment at the drawer's bank when there are
`not sufficient funds on deposit to pay it in full.
`There
`If the draw
`are two courses then open to the bank.
`er is an old customer and they have reason to believe
`it is only through an oversight
`that sufficient
`that
`money is not on hand to meet
`the bank
`the check,
`will probably pay the check,
`thereby creating an
`to the customer's account. Of this they
`overdraft
`will notify him and look to him for payment. but in
`case he fails to settle,
`the bank itself must bear the
`To be absolutely safe,
`the bank might decline
`loss.
`to the person presenting it or
`to pay the cheek
`return it to the bank through which it is presented,
`marked "insufficient funds."
`
`Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google
`Generated on 2015-04-01 00:13 GMT / http://hdl.handle.net/2027/hvd.hn8nq4
`
`eBay et al., Ex.1006, p.5
Accessing this document will incur an additional charge of $.
After purchase, you can access this document again without charge.
Accept $ Charge
Still Working On It
This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.
Give it another minute or two to complete, and then try the refresh button.
A few More Minutes ... Still Working
It can take up to 5 minutes for us to download a document if the court servers are running slowly.
Thank you for your continued patience.
This document could not be displayed.
We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.
Your account does not support viewing this document.
You need a Paid Account to view this document. Click here to change your account type.
Your account does not support viewing this document.
Set your membership
status to view this document.
With a Docket Alarm membership, you'll
get a whole lot more, including:
- Up-to-date information for this case.
- Email alerts whenever there is an update.
- Full text search for other cases.
- Get email alerts whenever a new case matches your search.
One Moment Please
The filing “” is large (MB) and is being downloaded.
Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.
Your document is on its way!
If you do not receive the document in five minutes, contact support at support@docketalarm.com.
Sealed Document
We are unable to display this document, it may be under a court ordered seal.
If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.
Access Government Site
