River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1913-09-18

When the Banker Casinos Your
Check
BY Walter K. Towers, A. g., J. D., Of the
Michigan Bar.

Michigan Bar.
John SommerS was keeper of the
general store at Elmwood. Allen
Mcpherson was owner and head oil
the Elmwood Saving Bank. The
relations between the two men were
far from friendly, but as there was
now other bank near at hand Som.
mers maintained a commercial ac-
count in McPherson's institution
| One Tuesday morning he purchased
load of potatoes from Clyde Webb
a prominent farmer of the vicinity.
Sommers paid Webb Immediately,
giving him check for twenty dol
lars properly drawn on his account
in the Elmwood Saving bank. Webb
took the check to the bank and pre-
sented it to Mcpherson, who was in
the teller's cage.
What did you do, go and sell
that load of potatoes to Sommers?"
inquired Mcpherson.
Yes; why not?" replied Webb.
Well, you might have given me
a chance at them. you know I'm
buying produce, as we'll as bank
ing"
That's no reas on why shouldn t
sell to John Sommers."
well, I'll show you your fool
to sell TO him." angrily asserted the
banker.
He paid you with a check, didn't
he? And you took it; and it amt
no good at all see!"
whats the matter?" asked
Webb.
why, he's no good financially,
and his checks no good, and you
can't get any money on it."
Webb returned to Sommers, and
Sommers fastened to the bank,
knowing that his balance stood
close to four hundred dollars.
After a heated discussion at the
bank Sommers travelled to the
office of his legal counsellor. AS a
result action was begun against the
banker because of his failure to
cash the depositor's proper check,
and substantial damages were re-
covered because MCPHERSON action
had injured Sommers' standing and
credit in the community.
This case illustrates what is per
haps the primary duty of the banker
to his depositor to pay all proper
checks drawn on him against ade-
quate deposits If the banker fails
to do this, either willfully or
through mistake, he must answer to
his depositor. If the depositor
whose check was wrongfully dis
honored suffered any damage he
may recover the amount against
the banker. Injury to credit and
business standing are the damages
usually complained of in such cases.
The banker is entitled to a reason
able time after presentment il order
that he may examine into the state
of the account against which the
check is drawn. Good bankers
have their affairs so arranged that
this is matter of seconds rather
then minutes
When Sommers sued Mcpherson,
Mcpherson defended his action on
the ground that while Sommers did
have balance of about four hun
| dred dollars the bank held Som
mers' note for five hundred dollars,
which was to fall due within a
week. The banker insisted that he
had a right to retain Sommers' de-
posits to insure payment of the note
when it should fall due. His po-
sition was not justified in law and
furnished him with no effective de-
tense. A banker may set-off an in
debtedness that is due by the de-
position to the bank against the de-
posit, but he may not set-off one
not yet due. Sommers could not
be required to pay the note until its
maturity, and until then it was not
an effective obligation against him.
1t not infrequently happens that
the holder of check for say ten