The silver messenger. (Challis, Idaho) 1890-1912, 1910-11-22

Simple Formulas That Should Be
Observed by Drawess.
Omission of Slight Detail May CAuse
Great Trouble and LOss-Impor-
tant Information for Those
IN Busine ss.

Bank checks possess many ad-
vantages for the conduct of business
and are used to proportionately
great extent. They are in nature but
orders flor the payment of money
and are payable in the order in which
they are presented. AS given in the
usual course of business they do not
constitute payment of the indebted
ness for which they are given until
paid. Nor will the concurrent re-
ceipting of the debts for which they
are given change this. If they are not
paid on proper presentation resort
may be had to the original claims.
The rule is different in this respect as
to certified checks. So the having OF the
checks certified constitutes payment
as to the persons drawing them, says
the National Banker.
Checks should be dated. If not
dated at all and they do not contain
any statement as to when they re to
be paid they are 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
measure determine the relative rights
of the parties to them, provided that
no fraud is intended or done. Post
dating in the main determineslthe 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 following. When
pos t6ated 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
date it makes the checks void. Chang
ing the date Of checks without con-
sent of the drawers will do the same.
The presumption is that when
checks are drawn funds will he pro-
yided at the banks on which they are
drawn to meet them, but presenta-
ton for payment must be made with
in a reasonable time. If not so pre-
scented the holders will be charged
with any consequent loss. When FER
sons receiving checks and the banks
on which they are drawn are in the
same place, they should he presented
the same day or at the latest the cay
after they are received.
After duly presenting checks it is
also the duty of the holder. if they
are not paid, to notify the drawers be-
fore the close of the next secular day
following the presentation and dis
honor. 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 diligence
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 re-
man 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 using proper dill
gence. After receiving checks they
must be presented for payment, unless
such presentation would be useless be-
fore the original claims ca 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 or 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
culation the liability of the drawers
cannot be prolonged. They must be
presented within the same time by in
dorsees as by payees.