Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-29
FACTS ABOUT CHECKS
I0r
SOME THINGS THAT ARE NOT
GENERALLyHxNowN.
Advantages in Business - Rule as to
1cf
Presentation -JA Trickster
cleverly oSHYtYitted.

,
"A man may give a-check in payment of
bill and obtain receipt, but the obliga-
ton Is not liquidated Iurtn after the check
has been received and paid at the bank, on
which 1t is drawn said Washington
bank teller this morning. I'm other words
II the check becomes lost, then the amount
Tor which 1t was drawn still remains under
the control of the man who owes the bill,
although he may not know it until his ac-
count In balanced and his Cancelled checks
returned to him.
checks possess a great many advantages
In conducting business, but it must be
understood they are in nature but orders
Tor the payment of money and are payable
IN the order in which they are presented
tnat Is 10 say man may pay bills with
checks numbered 100, 100. 1872. ETC., but at
the bank number 100 would not have pre-
Must Be Dated.
Checks must be dated. If not dated at
all and they do not contain any statement
as to whom they are to be paid, they are
never payable. They may be ante or post
dated as well as dated on the day of de-
livery. BY being antedated they may be
made to cover prior transactions and In a
measure determine the relative rights Of
~ IL
is intended or done. Postdating in the main
determines the date of payment
w men postdated SO as to fall due on
SUNDAY they are payable on the following
MONDAY: Checks postdated or maturing on
legal holidays. should be presented the day
before. When postdated checks are paid
before the dates mentioned the money paid
on them can be recovered. If blanks are
ie1t Tor the date. the holders of checks are
thereby authorized to insert the true dates
or delivery. but no other dates, and If they
insert any other dates, 1t makes the checks
void. Changing the dates of checks without
consent OF drawers will do the same.
Rule as to Presentation.
THE presumption is that when checks
are drawn. funds will be provided at the
banks on which they are drawn to meet
them. but presentation for payment must
be made within a reasonable time. If not
SO presented the holders will be charged
with any consequent loss. When persons
receiving checks and the banks which
they are drawn are in the same place, they
should be presented the same day or at the
latest the day after which they are re-
ceived.
After duly presenting the checks it is also
the duty of the holder, if they are not paid,
to notify the drawers before the close of
the next secular day following the presen-
tation and dishonor. No particular form Of
notice is required. 1t may be written or
verbal.
1.-THE principal case In which losses occur
from failure to use ;due,Idiligence in the
collection of checks Is where the banks on
which they are drawn fail in the meantime.
If the banks continue solvent the drawers
will remain liable to pay their checks for
months at least after they are drawn. Pre-
sentation and notice of dishonor will also
be dispensed with where there are no funds
to pay checks and where the banks on
which they are drawn suspend payment be-
fnr 1av ~
gence. After receiving checks they must
be presented for payment, unless such pre-
sentation would be useless, before the orr
ginal claims can be sued on for. by ac-
ceptfng checks there is implied agree
ment to use that method Of procuring the
money for which they are drawn.
when checks are Negotiable and pass by
Endorsement and delivery the same degree
of diligence will be'irequired of each per-
son to whom they are Endorsed, in order
to hold those indorsing them as Is required
OF original payees to hold original drawers
of checks. But by putting checks in cir
culation the liability of the drawers can
not be prolonged. They must be presented
within the same time by indorseeS by
payees.
A Trickster Outwitted.
zone very peculiar thing about banking
is that, although a person may have $500
in bank his check for $505 would not be
honored by paying out all the money on
deposit unless. of course, 1t was under
stood by the bank that the depositor could
at times overdraw to small extent-a
check is paid for its face value. + once
knew a man who kept balance in bank.
He got into some trouble and gave a check
to cover the sum Of money needed. He
gave check for $40 more than his bal
ance, knowing full we'll that the bank
would not allow 81 overdrawn. He thought
he could get to the bank in time to draw
out his money before 1t could be attached
by law, for he knew his check would not
be honored. But he reckoned without his
host. While the man to whom the check
was given was waiting for the paper, he
inadvertently saw by the check book that
the balance in bank was $40 less than the
amount of the check. He knew the check
would not be honored at the bank, but
said nothing. He realized that he was up
against a fraud, and determined not to
be outdone. He accepted the check, gave
a receipt and bowed his thanks profusely.
He FASTENED to the bank for his money.
Did he present the check to the paying
teller? Nay, nay. He walked to the desk
where the deposit slips were, made out
deposit slip for SO in favor Of the man who
had given the check to him and presented
it to the receiving teller. This, of course,
added $40 to the balance, for any person
can deposit money to the credit of another.
Then he went over to the paying teller
and presented his check The books show
ed the balance $io SIolI VI liie amount VI
the check but upon inquiry the receiving
teller made entry Of the $40 deposit, and
the whole amount was paid. You never
saw a more surprised more chagrined
man in your life than the man who gave
the check when he came to the bank few
minutes later, and, upon presenting check
for his exact balance. he was told that
there was no balance, as a check had just
been honored for the whole amount Of his
account Then he was told of the deposit.
He left the bank and has never done bust
ness with us since.