Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1913-08-01
Popular Talks on Law


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circumstances.
Sometimes after 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" Stop
ping payment ends the banks duty
and also it's right to pay the check
when presented 1t not only need
not pay the check, but is must not
pay it. If it disregards it's depositor's
instructions and pays the check on
which payment has been stopped it
is the loser as it may not charge
that payment against the depositor' S
account.
A. L. Sullivan owed James P. Long
$4,000, but by mistake he filled out
the check to James A. Long and
mailed it in an envelope addressed
to James A. Long, and 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
the proper party. In law the middle
initial is not part of mans name
and so the check was payable to
James Long.
If there are two persons of the
same name it becomes the duty of
the bank to pay it to the person of
that name who rightfully may receive
checks only for responsible parties
known to them.
Thus we have illustrated an ex-
treme case under the general prop
osition that bank paying a check
nust do so only to the proper par
ty. If anyone steals or finds a check,
or FORCES an Endorsement, and so
secures payment from the bank, the
bank must stand the loss. If a check
mas been Endorsed in blank, or was
Drawn in such form that it is pay
able to bearer, any bearer may re-
;eive payment on it and a bank is
Justified in paying it to any bearer,
unless there are some special cir
cumstances to cause it to believe
that the bearer is not the rightful
owner of the check and not entitled
to receive payment of it. When you
draw a check payable to "the. or
der of John Smith" you are entitled
to the assurance that the bank will
pay it to no one other than John
Smith or parties to whom he may
transfer it by valid Endorsement
Paul Greer, in Chicago, signed a
check for $4,000, directing his local
bank. to PAY to the order of Leon
Young" Leon Young received the
check in ST. Louis and endorsed it
IS follows, "Pay to the order of The
Copper Exchange Bank, Leon Young
He handed it to his clerk, togeth-
er with deposit slip, and told him
20 take it to the bank and deposit
it. 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 heard of the clerk
or the $4,000. Again the bank was
the loser for the check was endorsed
to the bank and not to the clerk,
nor in blank by Leon Young so that
the bearer might receive the mon
y. If Young had simply written
Leon Young on the back of the
check he would have been the loser
SO if you are to send a check to a
bank for deposit and do not trust
your messenger absolutely, indorse
it to the order of the bank and not
in blank-then the bank will not de-
written order.
In the case of forgeries the bank
er also bears a heavy responsibility
No other checks may be charged
against the account of a depOsitor
than those he actually signed, and
which have been paid to the proper
party. If the bank pays a forged
check it is the loser, unless the
depositor in some way contributed
to the fraud practiced ON the bank
and so is not in the position of an in
nocent party In the case of raised
checks the banker also must bear
the loss. again with the proviso
that the depOSitor who signed the
check in no way. contributed to the
fraud. If he drew the check so care
lessly as to make the fraud posi-
bic, or in any way conspired with
those who raised the check, his po-
sition is not SO favorable. We have
before noticed that the bank loses
if it pays check to a party not
entitled to receive nayment of If and