Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1903-08-11
NEW FACTS ABOUT CHECKS.
SOME THINGS THAT ARE NOT
GENERAL KNOWN.
Advantages in Business-Rule as to
Presentation-A Trickster cieverIy
Outwitted-Checks Must be Dated
Merely Orders for Payment.

Outwitted-Checks Must be Dated
Merely Orders for Payment
"A man may give a check in pay
ment of a bill and obtain a receipt,
but the obligation is not liquidated I'M
til after the check has been received
and paid at the bank, on which it is
drawn" said Washington bank tell
er. In other words. if the check be-
comes lost, then the am ount for which
it was drawn still remains under the
control of the man who owes the bill,
although he may not know it until his
account is balanced and his Cancelled
check returned to him.
Checks possess a great many adj
vantages in conducting business, but it
must be understood they are in nature
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 num-
bered 100, 106. 122, ETC., but at the
bank number 100 would not have pre-
cedence over No. 122.
Checks must be dated. If not dat
/ statement as to whom they are to be
paid, they the never payable. They
may be ante or post dated as well as
dated on the day of delivery. BY be-
| ing antedated they may be made to
| cover prior transactions and in a
I Oh fIa lot Two ich re
of the parties to them, provided that
no fraud is intended or done. Post
dating in the main determines the
date of payment.
when postdated so as to fall due
on Sunday they are payable on the fol-
lowing Monday. Checks postdated or
maturing on legal holidays, should be
presented the day before. When post
dated checks are paid before the dates
mentioned the money paid on them
can be recovered. If 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. Changing the
dates of checks without consent of
drawers will do the same.
"The 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 receiv-
ing 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 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 presentation and
dishonor. No particular form of notice
is required 1t may be written or
verbal.
"The principal case in which losses
occur from failure to use due dill
gence in the collection of checks is
where the banks on which they are
banks continue solvent the drawers
will remain liable to pay their checks
for months at least after they are
drawn Presentation and notice of dis
honor will also be dispensed with
where there are no funds to pay
ol,A = 70 hoy on Xrh
they are drawn suspend payment be.
fore they can be presented with pro-
per diligence. After receiving checks
they must be presented for payment,
unless such presentation 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 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 re-
quired of each person to whom they
are Endorsed, in order to hold those
indorsing them, as is required of
original drawers of checks. But by
putting checks in circulation the liabil.
ity of the drawers cannot be pro-
longed. They must be presented
within the same time by indorsees as
by payees.
zone very peculiar thing about
banking is that, although a person
may have $500 in bank, his check for
$500 would not be honored by paying
out all the money on deposit, unless
of course, it was understood by the
bank that the depositor could at times
overdraw to small extent-a check is
paid for its face value l once knew
a man who kept balance in bank.
He got into some trouble and gave
check to cover the sum of money
needed. He gave check for SO more
than his balance; knowing full well
that the bank would not allow 81 over
draw. He thought he could get to the
bank in time to draw out his money
before it could be attached by law, for
he knew his check would not be hon
ored. 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 SO less than the amount of the
check He knew the check would not
be honored at the bank. but said moth
ing. He realized that he was up
against a fraud, ard determined not
10 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 20 the paying teller? Nay,
nav. He walked to the desk where the
deposit slips were, made out a deposit
slip for $40 in favor OF the man who
had given the check to him and pre-
sented it to the receiving teller. This,
of course, added $40 to the balance.
for any person can deposit money TO