Besides bank notes and checking accounts the only forms of currency needed in any community are standard and subsidiary coins, the former for use as ultimate redemption material for all other forms of currency and for the payment of international and other balances, and the latter for small change. Even these forms of currency are supplied by commercial banks, but since they do not create them, ways and means of procuring them in the quantities needed constitute one of their peculiar problems. _5. Collections_ One of the most important functions of commercial banks is the collection for their customers of checks and drafts drawn on other institutions. When these documents are received, the accounts of customers who deposited them are credited with the amounts, less a small fee for collection, unless by agreement this service of collection is performed free of charge. The checks are then assorted according to the banks upon which they are drawn and the cities in which those banks are located. Checks drawn upon home banks are collected either through messengers who present the checks at the counters of the banks upon which they are drawn and secure payment therefor, or through the local clearing house. This is a place where representatives of the banks meet for the exchange of checks. After the representative of each bank has distributed all the checks held by his institution against the others participating in the clearing, and received from them those drawn against his bank, a balance sheet is prepared showing the balance due by or to his bank after the total of the checks distributed has been balanced against the total received. If said balance is adverse, it is paid to the master of the clearing house, and if it is favorable, it is received from him. The checks received through the clearing house or presented by messengers from other banks and paid, are debited to the accounts of the persons who drew them and returned to such persons as vouchers, the net result of the entire transaction being the same as if all the parties involved had been customers of a single bank, with the exception that some means of paying balances had to be found. Since balances are sometimes paid by checks on some central institution in which credit balances may be obtained by rediscounts of commercial paper, this necessity can be met without the use of any form of currency other than that furnished by banks themselves.