The Montgomery advertiser., 1907-03-03
Woman And The Bank.

Of checks are established depositors In a bank, but some banks will allow a person to deposit the required amount, and to take certificate Of deposit and indorse 1t over to the party it Is desired to pay. This Is, of course, an accommodation on the part of the bank. and 1t is such q nuisance that many banks require a permanent deposit of at least si00. for & certain length of time, before they will act as clearing house.
 When a woman desires to use her check to pay a note at some other bank or in some large deal she may find it necessary to get 1t certified. She asks the cashier of her bank where her funds are deposited to do so, and he writes across the face or the check the words Certified" or Good when properly indorsed.' This shows the payee that the check is oe- yond question a good one. and that her bank will retain enough funds to meet it. In reality, such a transac- tion makes the bank the debtor, and 1t assumes the debt. simply because immediately on the issuance of cerZ tified check, the amount is withdrawn from the depositor's account and held in trust by the bank. A bank Is al ways willing to certify check IT t holds enough of the depositor's funds to meet 1t. Of course, if the depositor does not use the certified check. she should deposit again, that she may be credited with the amount.
 This may sound like formidable transaction, but 1t is in reality sim pie one, as the following Will show: Mary A. Stanford decides to buy a piece of real estate for s1.000. She has this amount in her bank, and the agent of the property wishes certi- fled check. She goes to the bank and asks that her check for that amount be certified. The bank does so. and at once withdraws that amount from her credit, and stands ready to pay the check itself when presented. This may occur Or Mary A. Stanford may change her mind. In this case she of course wants her $1,000, which the bank holds, credited to her account, and so deposits that certified cheek, which she holds, to her credit.
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 Of course when funds are over drawn in a bank check cannot. be paid. This seldom happens if people are careful of their banking business, but there are many careless persons, women especially, who do not keep track of how much they have In the bank, or what checks are out. Ip event of a check being presented with no funds to meet it, 1t Is returned to the person presenting 1t with the let .ters N. c. (no good) written or Ystamped across the face. In the same way, when a check is drawn on bank where there is no deposit, 1t is re- turned with the words 'No account written across the face. Both of these checks. marked N. G. and NO &C., count" are what is called "dishon- ored," and their issuance may result either from ignorance or dishonesty.
 It may occur that depositor places a check in bank for collection, and the bank credits her with the amount. Later the check comes back from the clearing house with one or other of on it. In this case the bank, which has credited the amount of the check to the depositor, gives notice to the depositor, to make the amount good |.
 often woman desires to collect money from creditor at distance. Perhaps she has failed to receive satisfactory response to letters ask- ing for payment of the bill. She can, if she desires, draw on the debtor through the bank by using draft, as banks issue these to customers. In other words, she can go to her bank and have q draft made out for the sum due her, and in the name Of the debtor Her bank forwards this for collection to some bank In the town where the debtor lives. He can honor 1t or not, at pleasure, but it often ac- complishes what a letter does not.
 Another kind of draft is a bank draft. Merchants often use these in sending money from one part of the country to another, for this kind of draft Is simply a banks check. Every bank has deposits In large commer- ciaI centers, and it really draws on the other end to pay @ bill, whereas a draft Is often used as means of collecting money from a creditor. A draft on a foreign bank is commonly called "a bill of exchange"