The Montgomery advertiser., 1907-03-10
What Women Ought to KnoW
 About Pron,issory Notes.

shall- I credit the interest and pay ments ?'-Mrs. l.. NJ. Baker.
 Write each time on the back, under the date, the amount paid you and state if 1t Is interest or a payment on the principal. This fig called an in- dorsement of payment and should never be neglected. For instance, you might know that he had. paid that amount, but if you died. your cxecutor. seeing no endorsement on the back, might demand the amount again. Of course you understand that any amount paid above the interest i5 deducted from the face value when the note falls due or is taken up.
 e &
 How can collect payment on note given by a party who resides in another town."-A Working Woman.
 Send the note to a bank in the place where the maker resides and ask them to collect the money and forward it to you. The proper indorsement will be on the back before 1t is returned to you, and the amount received, less small percentage for the collection. The note should be sent several days before it Is due to give the bank time to notify the maker.
 H %
 Kindly explain to me in simple words the meaning of "to order on the back of a note."-Interested Reader.
 If a note Is drawn payable "to order" you must sign your name on the back if you wish to transfer 1t. That is the same method used in writing checks. Tn signing your name on the back of d note you are liable for the full face of the note if you sell 1t and the maker fails to pay. Take, for instance, Sarah Slater borrows of you (Anna Gordon) $100, giving security or not, as you demand You wish to transfer this note to Elizabeth Barton, so you write on the back: Pay to the order of Elizabeth Barton" and sign, your name, Anna Gordon. When this note becomes due, Sarah Slater does not pay 1t. Thus you are legally responsible for the amount. The only way in which you can avoid this Is, when signing, to write with out recourse' over your name on the back.
 Kindly explain what Is meant by 'discounting note Would Be Bus mess Woman.
 If you hold a mans note and wish to realize money on 1t without waiting for it to mature, you can sell 1t to broker or banker. Of course, you must expect to lose something on the note, or, in other words, to pay for the ac- commodation The rates of discount vary according to the security offered and the character of the loan. The interest laws of some States limit the rate to be charged, but many people take advantage of the situation to ask a large discount.
 E. H
 will you kindly explain as simply as possible what Is meant by the in- dorser of a note? "A Dressmaker
 The indorser of note is any person who writes her name on the back and thereby guarantees its payment Nat urally, Inducements are not readily obtained, for 1t is not easy to borrow the credit of another person and people are rightly reluctant to make them selves responsible for the debts of others. Second and third indorsers, if there be such, become liable in their turn. It is bad policy to indorse a note. and many business men refuse to do so. Others say that they never do it without expecting in the end they will have to pay the face value.
 Can I borrow money at a bank when need itT'-A Widow.
 Some banks will lend money on cer- tain securities. Savings banks will loan for years on real estate security, but other banks make short loans of sixty to ninety days. These short-time notes can sometimes be renewed if par ties are responsible and 1t is mot eon- venient to pay them when due. If you will go to the bank when interest or note becomes due you will save the bank notification and the cashier will feel that your are prompt in payment. It will be to your advantage in many ways, As all banks keep papers in methodical order, they will be able to lay their hands at once on the note if you state clearly the date, amount and name of parties involved.