Savannah morning news. [volume] (Savannah) 1868-1887, 1883-10-04
Bankers, Risks.

The New York Times gives a brief
synopsis Of three cases found in the latest
volume of the Court of Appeals of New
York, showing the increasing risk which
bankers are under of paying money on
forged paper. Ar of these cases We're de-
cided in the short space of three months.
They show that great vigilance is about
the only protection which bank has. by
one of these cases." says the Times, ''the
Nassau Bank suffered a loss of $4,000
thus: One of its regular depositOrs, a
business man whose usual balance was
very large. one day deposited a check for
$4,000. drawn on the Corn Exchange
Bank, and apparently duly Endorsed. The
Nassau Bank sent the check to the Corn
Exchange Bank, which paid it without
objection and charged the payment to the
makers. while the Nassau Bank gave
their depositor credit for the amount,
and he drew it in the course Of bust
ness. 4 year and a half afterWard the
makers of the check discovered that the
Endorsement had been forged, and they
compelled the Corn Exchange to make
GOOD the sum in the account between the
the two banks. The Corn Exchange now
sues the Nassau for having induced
il to pay the money on false in
dOrseInent. The Court of Appeals says
that the Nassau is not at all to blame, but
it has drawn $4,000 without authority and
must pay it back; such is one of the risks
of banking. 1t is true that the Nassau
can. in law, recover the sum from It's
GepOsitOr; he has, however, unfortunate
" failed. and this remedy is valueless in
fact.
I'm another instance depOsitOr in the
Merchants Bank gave out check for
ST.. 800. drawn to the order of IA Mrs.
Halpine. 1t seems to have been lost by
her. or stolen, for the day after it was
drawn some stranger presented it, her in
dOrsement being forged, and the bank
paid it. Within a week or two after
ward the bank wrote up the deposi-
tors account, as banks are accustomed
to do, and returned the pass-book in
which the payment Of ST. 800 was charged.
together with the deposit0r's checks,
among which was the one bearing the
forged name of Mrs. Halpine, to the de-
positor. Matters then rested, and the
officers of the bank naturally supposed
that all was right. But nearly years
afterward the depositOr discovered the
fOrgervs and sued for the money which
the bank had paid upon it from
his balance. The Court Of Appeals de-
cides that she can recover; that not even
the statute OF limitations pTOteclS the
bank Banks have been accustomed to
RELY on a usage of business that pass
books shall be periodically written up,
and that depositors shall examine the
checks returned and give notice of any
errors or forgcIles. But the Court of APP
peals says that the courts will not regard
such usage.
LAS far back as 1867 Winslov, Lanior &
Co. sold four United States Treasury
notes of the kind called ''seven-thirties, 3"
which they had received from respect
able bank and believed were genuine.
About two months afterwards the notes
were found to be forgeries, but so
we'll executed were they that one of
the four was actually paid at the
Treasury before the forgery was dis
covered. WinslOw, Lanier & Co. have
been sued for the money they received as
the price of the notes. They complained
that the transaction took place ten or a
dozen years ago, and that they ought to
have had notice sooner. But the court
says that length of time does not weaken
the claim of one who finds that he has
bought forged note to have his money
back. provided he is not personally in
fault for delay In short, when a banking
house pays a forged check or sells forged
paper. it is no matter how long a time
passes before the injured customer is in
formed Of the forgery; if he sues promptly
when he obtains information the bank
must refund"