Elmore County Republican. [volume] (Mountain Home, Idaho) 1910-1915, 1913-06-14
Popular TanksyonI law.
by w.ssr K. ro,ssr. A. H., . o.. 4 u. aaleblaM Der
sometimes happens that 4 bank WI


on deposit, when such 10 not the case
On discovering its mistake hadks
have sometimes endeayored 70 rscov.
or the money paid the persou who
presented the check, but they have
not been sdccessful. In one sense
Of the word the bank paid under
mistake. aEd mistake IL some times
ground for recovery Of money paid,
but not by q bank under these CIR
cun1stancss. "
Sometimes after . person has
signed and deliy'.. ed q cheek lie
wishes to recall his action. He Inn
.nediately gets In touch with his bark
IN which the check was drawn and
nstructs 1t not to pay that check
then It IL presented. This IL known
j stopping payment" Stopping pay
lent ends the bank 8 duty and also
3 right to pay the check when pre-
5nted. 1t not only need not pay the
check, but it must not pay it. II 1t
disregards its depositor's instructions
and pays the check on which payment
aas been stopped 1t Is the loser a.
it may not charge that payment
against the depositor's account.
IA. L. sullivan owed James p. Long
$500, but by mistake he titled out
the check to James A. Long and naik
ed 1t in an envelope addressed to-
James A. Long, and q James A.
Long received It and cashed It at q
bank. The bank lost the money It
paid cut on the check. This was be-
cause bank IL bound to make Ger.
tain that 1t Is paying the check to
the proper party. In law the middle
initial Is not part Of a mans name
and so the check was payable to
James Long.
II there are two persons Of the
same name 1t becomes the duty Of
the bank to pay It to the person Of
that name who rightfully may receive
it. So 1t II that bankers will cash
checks only for responsible parties
known to them.
Thus we have illustrated an OK.
IRENE case under the general propo-
sition that bank paying check
must do 30 only to the proper party.
II anyone steals or finds Q check, or
forg0 an Endorsement. and 20 Sc
cures payment from the bank, the
bank must stand the loss. II q check
has been endorsed in blank, or was
drawn in such form that 1t 10 pay
able to bearer. any bearer may re-
ceive payment on 1t and bank 10
justified In paying It to any bearer,
unless there are some special circum-
stances to cause 1t to believe that
the bearer Is not the rightful own
or of the check and not entitled to
receive payment Of it. When you
draw check payable to the order
of John Smith" you are entitled to
the assurance that the bank will pay
At to no other than John Smith or
parties to whom he may transfer It
h.. ,,c1sl l., d<xuoavrau
Paul Greer. in Chicago signed q
check for 100000, directing his local
bank to PAY to the order Of Leon
Young Leon Young received the
check In st. Louis and endorsed 1t
as follows. PAY to the order OF The
Copper Exchange bank. Leon Young"
He handed it to his clerk, together
with a deposit slip and told him to
take 1t to the bank and deposit 1t.
The clerk tore UP the deposit slip
and told the bank teller that Mr..
Young wanted the cash. The cash
was given to him and that was the
last that was ever heard Of the
clerk or the $4,000. Again the bank
was the loser for the check was en-
dorssd to the bank and not to the
clerk. nor in blank by Leon Young
so that the bearer might receive the
money. II Young had simply written
Leon Young" on the back Of the
check he would have been the loser.
So II you are to send a check to .
bank for deposit, and do not trust
your messenger absolutely. indorse
1t to the order Of the bank and not
in blank-then the bank will not de-
liver It to the bearer except on your
written order.
In the case Of forgeries the banker
also bears y heavy responsibility. No
other checks may be charged against
the account Of depositor than those
he actually signed. and which have
been paid to the proper party. II
the bank pays forged check 1t Is
the loser. unless the depositor In
some way contributed to the fraud
practiced on the bank and 10 II not
in the position OF an innocent party.
In the case Of rsAsed checks the bank
or also must bear the loss, again
with the proviso that the deposition
who signed the check In no way con-
tributed to the fraud. II he drew