The herald., 1897-09-01
OFFICE OF THE HERALD,
Los Angeles, Aug. 81, 1897.

Of FIOE Or 4LiI< IlA1AeAADs
Los Angeles, Aug. 81, 1897.
In the printed report of the proceedings
of the recent American Bankers As
sociation convention at Detroit, may
be found paper by Vice Presi-
dent Eugene H. Pullen of the National
Bank Of the Republic, New York, upon the
following question:
when bank receives from depositor
q check on itself, drawn by another OF Its
dealers, ia that check paid, or has the bank
the right to return 1t the same day to the
depositor, and by so doing cancel the
credit on the depositor's pass book?"
Mr.. Pullen, in broad way, took the
negative side, and very clearly gave the
reasons for his position. In opening his re-
marks he drew attention to the fact that
while the question pre-supposed through
Its mention of the pass book the residence
Of both depositors in the same city, IT did
not follow necessarily that such was the
case, since corporations, banks, firms or
individuals out Of the city might be classed
as the other dealers.
Taking up the first phase of the argu-
ment, he pointed out that a banks tellers
are assumed to know the signatures of its
depositors, and the condition of their re-
spective accounts, so that checks of deal
srs deposited by other dealers cannot be
returned for forged signatures, or by rea-
con of overdrafts or insufficient funds.
As he says, there are reasons justifying the
return Of checks, as in missing or re-
strictive endorsements or the raising of the
amounts but it is contended that in these
specified instances the depositor is entitled
to a certification of the check. After com
sidering several contradictory judicial
opinions which have been handed down as
the result Of litigation over the privileges
of banks in the premises, Mr.. Pullen took
the ground that a credit on the pass book
of depositor is an agreement to make
similar credit the same day on the banks
books, and that to claim the delay of a
bookkeeper to post on the bank ledger the
credit to the account of the depositor, and
the debit to the account of the drawer, as
pretext for the return of check entered
on the depositor's pass book is simply
absurd The transaction was completed
when the amount Of the check was entered
on the pass book of the customer. He
further holds that 1t is unreasonable to re-
gard the check of one dealer deposited by
another dealer as collection, because
the check should not have been accepted
in tho first place unless the ordinary re-
Quirements which its issue implies had
been verified. The theory obtains added
strength from the fact that collections are
not ordinarily entered on pass book as
cash. but are entered elsewhere and are
so designated Checks on a bank where
both depositors have accounts cannot be
considered as items "for collection" The
receiving teller, 1t will be noted, plays a
very important part in transactions Of this
character. If he accepts the check, the
speaker held, then payment is made High
authority has decided that where a check
is received. as in ordinary instances, with
out remark, and treated in every respect
as II 1t constituted demand obligation on
another bank, then the bank is placed under
only the ordinary obligation, to-wit: that
Of collecting the check in due course of
business for the depositor. Mr.. Pullen
cites these decisions, but admits that he is
unable to recognize either sense or JUS
tics in the proposition. The law in several
states has been interpreted differently on
these points, but 1t seems that in gen.
eral way, the question is one that is liable
to be source Of litigation until a. uniform
or specific enactment is obtained. 1t would
be difficult, indeed, to combat the several
propositions which Mr.. Pullen makes use
Of in his argument
The President Of the National Associa-
tion Of Credit Men, James q. Cannon, has
I-5 ~ al IA, nvf-
ment Methods" and the work Of preparing
for the presentation to the next conven-
tion of the association a standard form
Of statement blank will now. 1t is expected,
rapidly proceed. The object in view is to
prepare blank so comprehensive that 1t
will effectually hold the applicant for
credit in a court in any state for fraudulent
representations in obtaining goods in case
OF any of the statements on the signed
blank are subsequently proved to have
been untrue. If 1t is found possible to en-
courage the general use of standard blanks
the result it is believed by the officers OF
the association will be a long stride in the
perfection of business methods. 1t will, ir
the first place, it is argued, remove any
supposed basis for offense on the part of ar
statement submitted to him is the same pre-
scented by all jobbers to their prospective
customers. In the next place 1t will com.
pei retailers to conduct their business or
business principles, in order that they may
be able to meet the requirements of the
standard forms. The samples of forms sub
mitted are good in their way, but might
perhaps be improved by the addition Of g
few questions as to antecedents for use
In certain cases. 1t is interesting to know
something as to whether man has evel
failed and how much he paid. and whether
he has ever suffered any losses by fire.
y \ +
The fact that over S3.00000O In gold was
brought into the United States mint II
this city on the first working day at tina
institution this month is given worldwide
proclamation, with the inference that i
was from the Klondike, says the San Fran
cisco Mining and Scientific Press. Th'
rest of the fact, it adds, should also b'
stated: The mint had been closed for some
weeks, counting the bullion and the trans
fer from old to new superintendent was go
ing on. and meanwhile California's golt