BANKING PRINCIPLES AND PRACTICE By RAY B WESTERFIELD - FREE BANKING STUDY MATERIALS

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Tomakeor supervise the transfer of the bank's shares of
stock.
10. Tobuyor engage to buygovernmentsecurities.
Besideshisinherentpowersthecashiermayhavedelegatedto
him special powers; such delegation arises bystatute.or charter
provision, byaction of the stockholders, byvote or verbal order
of the board of directors, by usage and tacit approval by the
board, or bysomenecessity or emergencyrequiring action mani-
festly to theinterestof thebank.


The cashier is limited as to the time within which and the
place wherehemayexercise his powers. Somepowersmayonly
beexercisedatthebankandduringregularbankinghours;others
maybe exercised anywhere and at any time. The distinction
betweenthetwogroupsrestsuponpracticalbusinessconvenience
andcustom;if anyknowledgeor articles whichcanonlybefully
andsatisfactorilyobtainedatthebankarenecessaryfortheproper
performanceofanact, theactcanonlybeperformedat thebank
andduring regular bankinghours; for instance, the paymentor
certificationofchecksandthereceipt ofdepositscanonlybedone
at the bank. Butthe issue of cashier's checks and the indorse-
ment of checks for the bank may be done at other times and
places.
In actswhichacashierhasaninherent righttoperformhecan
bind thebanktoathird partydealingwith thebankandhaving
no notice of any restriction upon the cashier. But in actions
whicharebasedonspecial powersderivedinanyoneof theways
mentioned above, hecanbind the bankonlywithin the scopeof
his delegated authority, and even then only if the acts are intra
vires for thebankitself andarein properform.
Thecashier is liable to the bank for damages for any loss or
injury sustained through his fraudulent or wrongful acts in his
officialcapacity,orthroughhisunauthorizedacts, or throughdis-
obedience to the directions imposed upon him by the directors.
But he is not liable for an intentional or innocent default of his

subordinatesunlessit canbesatisfactorilyshownthatthedefault
was occasioned or facilitated by his improper or negligent per-
formance of duty. Heis bound to exercise the most thorough
supervision practicable considering the amount of business and
themethodof doing it; negligence in this mattermakeshimre-
sponsibleforthewrongfulactsofhis subordinates. Thestatutes
mayinhibit himfrom doing specific things underpenalties; and
if hedoessuchthingsthebankmaysueforreimbursementofloss
aswellastheamountofthepenalty,oratleast theamountofthe
penaltyandtheexcessof theloss overthepenalty.
Inlargebanksthedutiesofthecashieraresoheavythatthey
mustbesharedwithsubordinates,andanumberofassistantcash-
iers are appointed for that purpose. Theyrelieve the cashier of
suchworkas heor the boardof directors maydirect, andin the
absence of the cashier they perform his duties, except in such
mattersastheNationalBankActspecificallyrequiresthecashier
to do. In these specified cases the Comptrollerof the Currency
holdsthatanassistantcashiercannotactinplace of the cashier.
Theassistant cashiers maybeheads of departmentsat the time
oftheirelection andcontinuethereafter to perform the duties of
assistant cashier in addition to their departmentalwork;in such
casestheassistantdepartmentheadwill bearabiggerpartof the
duties of the department.
TheDepartmentalization of aBank
It is impossible for the cashier and assistant cashiers to per-
form all the business included in the general functions of issue,
discount,anddeposit. Fortheexpeditiousexecutionofthemulti-plex duties involved, bank officers have divided the bank into


moreor less separate departments, put underresponsible heads,
andperformingasetofalliedoperations. Thenumberofdepart-
mentsvaries directly with the volumeof business to behandled
andthepossibility of separatingthe operationsinto moreor less
routine elements.

 

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