The Savannah morning news., 1903-06-12
FACTS ABOUT CHECKS.
Some Things That Are Not General
" known.

"A man may give CueCh III payment
of a bill and obtain a receipt. but the
obligation is rot liquidated until after
the check has been received and paid
at the bank, on which II is drawn"
said a Washington bank teller this
morning I'm other words, II the check
becomes lost, then the amount for
which 1t was drawn still remains I'M
der the control of the man who owes
the bill, although he may not know
it until his account is balanced and
his Cancelled checks returned to him.
Cheeks possess a great many adj
vantages In conducting business, but
it must be understood they are in ma
ture but orders for the payment of
money and are payable in the order In
which they are presented-that is to
say, a man may pay bills with checks
numbered 100 106, 122, etc, but at the
bank number 100 would not have pre-
cedence over No. 1872.
Cheeks 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 delivery. BY being ante
dated they may be made to cover prior
transactions and in measure deter
mine the relative rights of the par
ties to them, provided that no fraud
is intended or done. Postdating In the
main determines the date OF payment.
when 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. II blanks are
left for the date, the holders of checks
are thereby authorized to insert the
true dates of delivery, but no other
dates, and If they insert any other
dates it makes the checks void. Chang
ing the dates of checks without con-
sent of drawers will do the same.
'@rhe presumption is that when
checks are drawn. funds will be pro-
vided at the banks on which they are
drawn to meet them, but presentation
for payment must be made within
reasonable time. If not so presented
the holders will be charged with any
consequent loss. When persons re-
ceiving checks and the banks on 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 received
After duly presenting the checks 1t is
also the duty of the holder If they are
not paid, to notify the drawers before
the close of the next secular day fol-
lowing the presentation and dishonor.
No particular form of notice is re-
quired. 1t may be written or verbal.
THE principal case in which losses
occur from failure to use due diligence
in the collection of checks is where
the banks on which they are drawn
fail in the meantime. II the banks
continue solvent the drawers will re-
main liable to pay their checks for
months at least after they are drawn.
Presentation 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 before they can be
presented with proper diligence. After
receiving checks they must be pre-
scented for payment unless such pre-
sentation would be useless before the
original claims can be sued on, for by
accepting checks. there is an implied
agreement to use that method of pro
curing the money for which they are
drawn.
when checks are negotiable and
pass by Endorsement and delivery the
same degree of diligence will be re-
quired of each person to whom they
are Endorsed, in order to hold those IN
dorsing them, as is required of original
payees to hold original drawers of
checks. But by putting checks in cir
the liability of the drawers
cannot be prolonged. They must be
presented within the same time by in
dorsees as by payees.
"One very peculiar thing about bank 4
ing is that, although a person may
have $500 In bank his check for $505 4
would not be honored by paying out |
all the money on deposit, unless, of |
course, 1t was understood by the bank |
hat the depositor could at times over /
iraw to a small extent--A check is
paid for its face value. l once knew |
man who kept balance in a bank. |
He got into some trouble and gave a |
neck to cover the sum of money need. /
I'd. He gave check for $40 more than |
lis balance, knowing full well that the
'ank would not allow 81 overdrawn. He
thought he could get to the bank in
lime to draw out his money before IL
'ould be attached by law, for he knew
lis check would not be honored But |
he reckoned without his host. While
he man to whom the check was given
vas waiting for the paper, he mad
Iertently saw by the check book that
he balance in bank was $40 less than
he amount of the check. He knew the
heck would not be honored at the
,ank, but said nothing. He realized
hat he was up against "a fraud, ard
determined not to be outdone. He ac-
epted the check, gave receipt and
'owed his thanks profusely. He hast
ned To the bank for his money. Did
lie present the check TO the paying
eller? Nay, nay. He walked to the
lesk where the deposit slips were,
made out deposit slip for $40 in favor
4 the man who had given the check
o hin. and presented 1t 10 the recelv-
ng teller. This. of course, added SO
o the balance, for any person can de-
'Osit money to the credit OF another
hen he went over to the paying teller
nd presented his check. The books
bowed the balance $40 short of the
mount Cf the check, but upon inquiry
ne IeC6lyng teller made entry of th.
10 deposit. and the whole amount was
aid. You never saw a more surprised
= more chagrined man I'm your life
han the man who gave the check when
Ie came TO the bank "A few minutes
ater, and. upon presenting a cheek
or his exact balance. he was told that
here was nc balance, a. a check had |
ust been honored for the whole
mount ~ HIS account. Then he was
old Of the deposit. He left the bank.
nd has rever done business with US
inco."
There ere IN New York city to-day |