The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1884-05-16
English Banking.

mad. while travelling in England.
other instances where my letter OF credit
was of incidental service to me. was
| told by American travellers that | must
be careful not to lose my letter of
credit. They were confident that dis
honest finder of the letter, who should
forge my signature and draw the
money. would infiict its loss upon me.
and not upon the parties who cashed it
upon 4 forged signature; and they had
various stories of how travellers in Eng
land had lost all their travelling funds
in this way. did not believe all this.
And now. having Investigated the mat
ter thoroughly, l know the statements
to be incorrect.
Ii YOU lose your credit letter use due
diligence in notifying parties upon whom
it l. drawn. If parties cash your bill
upon forged signatures they lose and
not you, provided you have not been
negligent in putting the public on
guard in the premises. This incorrect
expression to which | have alluded
comes from misapprehension of pc
culiar law of England. The or gin and
character Of this law are rs follows:
English bankers became disguised
with the law and custom requiring that
the payers of checks drawn to order
shou d demand an identification OF the
arlies collecting such checks. Checks
PAYABLE to bearer could be paid without
risk and respons bility on the part of
the bank. But if the checks payable to
order were paid to the wrong person on
forged Endorsement or anything of the
sort, the bank was the loser. The banks
pressed Parliament to make a law put
ting both ella sses OF checks on the same
footing. Such law was enacted. To-
day, SAYS a bank teller of London to
me, pass out the money for all checks
presented as fast aS can to whoever
presents them. My only care is to assure
myself that the drawer balance and
signature are all right. When told him
that in Boston we demanded an identi-
tication of all parties collecting checks.
no matter whether the checks were pay
able to order or to bearer, he smiled.
He said they could never get through
their banking business in London if they
attempted to do it in that way. agreed
with him. l have seen something of the
tear and rush III London banking re-
gions There are so many people there
and so much to be done in short time
that hardly see how they get through
ut all.
So this is the check situation in Eng
land to-day. If drop cheek in Lon
don streets, the first man who picks it
up can rush into the bank and collect it
and pocket the money. But to collect
money fraudulently is great crime.
England Furnishes such CT me terribly.
The sever ty of it laws and the prompt
ness with which they are enforced
are great safeguards in business
matter. The man who lose
check in England must make lively
time in stopping its payment. Till he
has stopped its payment he has just the
same as lost so many Eank of England
notes or soverelgnS. And the person
who loses letter of credit in England.
or anywhere else in fact, must also
make quick time in stopping its pay
ment, if he would not incur great re-
sponsibility. l found the bankers of
England always ready to cut red-tape
when they could do so without incur
ring too great SKIS. They are willing
to rely upon signatures rs q means #
identification. In fact in collect NO
payments upon letter of credit. sigma
lures alone satisfy bankers in England
that thu payments are being made to
the right party. But tteir customs in
these premises are lest illustrated by a
chapter from my own experience with
letter of credit. Every traveller letter
of credit has at ached to it long list of
banks and bankers where it ma be
presented and advances obtained. In
the case of the bill 1 carr ed. this list
stretches from Halifax to Jerusalem.
but few travellers are aware that this
list is merely suggestive. Tie fact is,
it s 10 be understood that the bill can
he presented and payments negotiated
with most any banker of standing in
any country named on the bill. And it
is hard to imagine anv civilized country
on the face of the globe that is not gla |
to purchase of you reliable sterling
draft on London. Such drafts should
sell at q premiam most anywhere. A
shrewd Boston friend, Just returned
from q tour around the world, says he