Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1890-10-03
SOMETHING ABOUT CHECKS.

Goth ultimo, notes a late decision
of the Supreme Court OF Minneso.
ia, declaring that bank checks are
not cash, and do not possess legal
value as money until cashed. In
other words, a check ia no pay
ment of debt, but merely a written
acknowledgement oil it.
In commenting on this decision
of the Minnesota high court the
Scientific american says:
"Where goods are sold for cash
on delivery, and the purchaser
tends payment in a check or draft
on his banker, such payment is
only conditional; and the delivery
OF the goods, it made is also con-
ditional. If the check Is dlshonOr-
ed on presentation, the seller may
retake the goods for the purchase
money, even from the possession
of a third or innocent party, unless
it can be shown that the seller has
been guilty of such negligence as
would estop him from recovering
IN equity.
This decision is among the first
rendered by higher courts that is
so far-reachlng, and If supported
by other high tribunals, will settle
a mooted question In commercial
circles. The same principle has
been applied to unpaid notes by
one or two courts, which have
held that the seller does not lose
his lien, for Purchase money, on
goods sold, until he receives the
actual cash, and may retake at
any time prior thereto if the in
deDtedness be not met at matur-
ity."
The Petersburg Inder-AppeaI,
also, has some very sensible and
business remarks to make on this
important question. This de-
cision," says that paper, sis of
great interest to the business com.
munity, because among business
men there is a remarkable careless
ness, not to say ignorance, IN deal
ing with checks. The decision of
the Minnesota court should not be
taken without modification. For
example, where the holder of a
check fails to exercise due dill.
geDce in collecting the money and
the drawer becomes insolvent, the
courts have held that the check
was.payment of the debt, and that
it was due to the lGsches OF the
creditor that be did not collect the
money. 1t is a part OF the history
of every financial panic in this
country that hosts of creditors are
caught with checks IN their posses
sion, which they might have COL
lected, but which they neglected
to collect, and so were excluded,
by the decision We quote, from
participation in distribution OF the
creditors assets. Under this de-
cision the danger of receiving
checks and holding them over as
an accommodation to the drawer
is obvious. Not less hazardous is
it to accept checks dated ahead,
for in the event of the death of the
drawer the date would be prlmG
fdcieevidence of the lmpossl6ility of
the genuineness OF the check, and
would be sure to give the holder
trouble. 1t is better to allow an
account to remain open than to
close it up with a check which is
to be held over, or one that Is dated
ahead. III the matter of checks,
as IN all business transactions, the
rule of safety is likewise the rule
of honesty and plain dealing. AL
ways know how you stand in bank,
and don't give check unless you
have something in bank to back it
up. And when you have a check
lose no time in presenting it for
and under no circum.
stances run the risk of holding
unlesss you are willing and
able to lose the amount. But above |
all things, as a business man, don't |
disclose your financial weakness
by asking anybody to take your
check and hold 1t until you can
provide for it's payment in bank.
Give a note, or due bill, or any
hing but a check"
--D-~~us---- :