Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1913-06-13
Popular Talks on Law
WHEN THE BANKER CASHES YOUR CHECK
By Walter x Towers A. B. J. D. of the Michigan Bar


Bankers do not take time to inves-
; tigate depositor' account for every
J check that is presented to the hank
for payment. They depend upon
; memory, and confidence in the de-
positor, in many instances. So it
sometimes happens that bank will
pay check under the belief that the
signer has an adequate balance on
deposit, when such is not the case.
, On discovering its mistake banks
: have sometimes endeavored to re-
cover the money paid in person who
presented the check. but they have
: not been successful In one sense of
| the word the bank paid under mis-
take, and mistake is sometimes
ground for recovery of money paid,
but not by bank under these cir
cumstances.
Sometimes after a person has
|, signed and delivered check he
wishes to recall his action. He i'm
mediately gets in touch with his
bank on which the check was drawn
and instructs it not to pay that check
when it is presented. This is known
as stopping payment. :" Stopping
payment ends the banks duty and
also its right to pay the check when
presented. 1t not only need not pay
The check, but it must not pay it. If
it disregards it's depositor's instruc-
tons and pays the check on which
payment has been stopped it is the
loser as it may not charge that pay
ment against the depositor's account.
, A. l.. Sullivan owed James P.
| Long $47.00, but by mistake he filled
out the check to James A. Long and
mailed it in an envelope addressed
to James A. Long, and a James A.
Long received it and cashed it at a
: bank. The bank lost the money it
: paid out on the check. This was be-
: cause bank is bound to make GER
! tain that it is paying the check to
2 the proper party. In law the mid
die initial is not part of a mans name
S and so the check was payable to
} James Long.
r If there are two persons of the
: same name it becomes the duty of
S the bank to pay it to the person of
n that anne who rightfully may re-
: ceive it. So it is that bankers will
e cash checks only for responsible par
/ ties known to them.
r Thus we have illustrated an ex-
: IRENE case under the general propo-
: sition that bank paying a check
d must do so only to the proper party.
: If anyone steals or finds a check, or
: FORCES an indorsem ent, and so Sc
: cures pawn ent from the bank, the
t bank must stand the loss. If a check
|. has been Endorsed in blank, or was
o drawn in such form that it is payable
I to bearer, any bearer may receive
payment on it and bank is justified
!, in paying 1T to any bearer, unless
n there are some special circumstances
to cause it to believe that the bearer
: is not the rightful owner of the
S check and not entitled to receive
h payment of it. When you draw q
e check payable to "the order of John
o Smith" you are entitled to the as
e surance that the bank will pay it to
/ no one other than John Smith or
: parties to whom he may transfer it
I by valid Endorsement.
Y Paul Greer, in Chicago, signed a
Y check for $4,000, directing his local
2 bank to PAY to the order of Leon
Young" Leon Young received the
2 check in St. Louis and Endorsed it
as follows, Pay to the order of the
l Copper Exchange Bank, Leon Young"
He handed it to his clerk, together
with deposit slip, and told him to
: take it to the bank and deposit it.
r 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
4 last that was heard of the clerk or
4 the 5000. Again the bank was the
t loser for the check was Endorsed to
E the bank and not to the clerk, nor
S in blank by Leon Young so that the
: bearer might receive the money. If
Yo ung had simply written Leon
r Young" on the back of the check he
would have been the loser. So if
v you are to send a check to bank
D for deposit, and do not trust your
$ messenger absolutely, indorse it TO