Daily capital journal. (Salem, Oregon) 1903-1919, 1911-08-12

Bargain Matinee Every Day
positor. 1t tends to greater vigilance
on the part of the banker, and more
prompt discovery of the forgery,
which makes the business of forgery
more dangerous and less successful. "
But the learned justice affirms that
this should not overturn and eX-
clude other we'll established princi-
Piles applicable thereto.
We have noticed these authorities
in general way for the purpose,
among others, of considering their
effect upon legislation, On account
of confusion of ideas upon this and
other questions of similar nature,
and realizing that in modern COM
merce the coin of the country is sup
plemented and aided by means of
drafts, checks and other commercial
paper, the legislatures of more than
three-fourths of our states, in an en-
deavor to have a uniform law in this
respect, within the past few years
have enacted a negotiable instru-
ments" law. Ours was adopted in
1899; see Sec. 1894, L. o. L., ct Sc
qui.
The plaintiff in substance claims
to be holder in due course of the
checks in question, which defendant
had purchased in good faith and in
dorsed, and promptly presented to
the plaintiff bank for payment, and
they were honored and paid by plain
tiff, and that such payments were
under mistake of fact. "If an i'm
piled warranty of genuineness ac-
companies the unrestricted indorse-
ment or transfer of any negotiable
instrument, it is an assurance to the
drawee of its genuineness in all re-
spects, save that of the name of the
drawer alone, with which knowledge
the drawee is charged" Bank v.
Bank SO Am. St., 1863, 175. The doc
trine that a bank is bound to know
the signature of its customer has
been applied very strictly by the
United States supreme court. H.
Daniel Is ed, Sec. 1856 1t should
be remembered however, that the
party holding such check should in
no way contribute to the success of
the fraud If so he would certainly
not be a holder in due course. II.
Daniel 6 ed) Sec. 1857 See also
note on page 500 to the case of Peo-
pies Bank V. Franklin Bank, II Am
ST., 1884. A check is in the nature
of bill of exchange, and treated as
such. Neal V. Coburn, 92 Mo-, 139.
The sections of our negotiable in
struments law, bearing upon the
question involved provide as fol-
lows:
L. o. L. Sec. 1856. Where a sig
nature is forged or made without
the authority of the person whose
signature it purports to be, it is
wholly imperative, and no right to
retain the instrument, or to give a
discharge therefor, or to enforce
payment thereof against any party
thereto, can be acquired through or
under such signature, unless the
party against whom it is sought to
enforce such right is precluded from
setting up the forgery or want of
authority"
L. o. L. Sec. 1886, states that, "a
holder in due course is a holder who
has taken the instrument under the
following conditions: % that it is
complete and regular upon it's face;
| (2) that he became the holder of it
before it was overdue, and without
notice that it had been previously
| dishonored, if such was the fact; (3)
that he took it in good faith and for
value; (4) that at the time it was
negotiated to him he had no notice
of any infirmity in the instrument or
defect in the title of the person ne
gotiating II" This definition does
not embrace the case of a drawee.
L. O. L. Sec. $780, Every indorser
who indorses without qualification
I warrants to all subsequent holders
in due course ~ the matters and
things mentioned in subdivisions /,
2, and of the next preceding sec
tion, (That the instrument is genu-
inc and in all respects what 1t pur-
ports to be); and (2) that the in
strument is at the time of his in
dorsement valid and subsisting. And
in addition, he engages that, on due
presentment, 1t shall be accepted or
paid, or both, as the case may be,
according to its tenor, and that II it
be dishonored, and the necessary
proceedings on dishonor be duly TAX
en-, he will pay the amount thereof to
the holder or to any subsequent in
dorser who may be compelled to pay
it."
L. O. L. Sec. 1865. "The accept
ance of a bill is the Specification by
the drawee of his assent to the order
of the drawer The acceptance must
be in writing and signed by the
drawee. 1t must not express that the
drawee will perform his promise by
any other means than the payment
Of money"
L.O L. Sec. 6020 "Where a checl