Wednesday, August 18, 2010

How did banks keep track of accounts before computers?

Now days we have databases and software to manage customer accounts. However, back before computers that wasn't a luxery. Say I had $300 back in 1922, and I needed $20.00 of it. How did the teller know that I had the money? Did they have to look at a general ledger and manually deduct the amount from the ledger? Or was there a more sophisticated way to manage customer's money?



How did banks keep track of accounts before computers?nortonantivirus



We used to be issued what was called a ''bank book'' which was a little smaller than today's check book. We did not have checks back then. This had columns for deposits, and withdrawals, and a balance.



We would go to the bank, and have to take this book to the teller, who would find in their records a copy of our ''bank book'', then they would enter in both books the fact that we had withdrawn $ 20.00 so that means we have $ 280.00 left. The teller would write this in their book, and in our copy of their book, and hand our booklet back to us.



There was a great depression in which a lot of banks went out of business %26 people lost what was in the banks.



Technology that was the forerunners to modern day computers came into being back in the 19th century by a US inventor called Babbage, but it was not really until Hollerith invented a way to do programming with punched cards that Tabulating equipment really took off.

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