Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1913-06-13


Mcpherson was owner and head of
the Elmwood Savings Bank. The
relations between the two men were
far from friendly, but as there was
no other bank near at hand Sommers
maintained commercial account in
McPherson's institution. One
Tuesday morning he purchased
q load of potatoes from Clyde Webb
prominent farmer of the vicinity
Sommers paid Webb Immediately
giving him a check for twenty dol
lars properly drawn on his account
in the Elmwood Savings 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?" in.
quired Mcpherson.
Yes; why not?" replied Webb.
well, you might have given me
chance at them. You know I'm
buying produce, as well as banking" "
That's no reason why | shouldn't
sell to John Summers"
well, I'll show you you're 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 natter" 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 g
heated discussion at the bank Som.
mers travelled to the Office of his
legal counsellor. AS result actor
was begun against the banker be-
cause Of his failure to cash the de
positor's proper check, and ..substan
tial damages were recovered because
McPherson's action had injured
Sommer's standing and credit in thu
community.
This case indicates what is perhaps
the primary duty of the banker tt
his depositor-to pay all proper
checks drawn on him against ade
Quate deposits. If the banker fail
to do this, either willfully or through
mistake, he must answer to his de
positor. If the depositor who's
check was wrongfully dishonoreC
/ suffered any damages he may recove
the amount against the banker. In
jury to credit and business standing
are the damages usually complaine,
of in such cases. The banker is en-
titled to reasonable time after pre-
sentiment in order that he may ex
anime into the state of the accoun
against which the check is drawn
Good bankers have their affairs s.
arranged that this is a matter o.
seconds rather than minutes.
When Sommers sued Mcpherson
Mcpherson defended his action OF
the ground that while Sommers di'
have a balance of about four hun
dred dollars the bank held Sommer'
note for five hundred dollars, whicl
was to fall due within a week. TIL
banker insisted that he had a right t,
/, retain Sommer's deposits to insure
payment of the note when it SHOULD
fall due. His position was not JUST
fed in law and furnished him will
no effective defense. A banker ma.
set-off an indebtedness that is due by
the depositor to the bank against thu
deposit, but he may not set-off one
not yet due. Sommers could not b
required to pay the note until it's ma
turity, and until then it was not al
effective obligation against him.
1t not infrequently happens tha
the holder of check for say ten dol
lars, will present it at the bank fol
payment and discover that the de
positor has balance of but seven
Often the holder Of the check would
be glad enough to get the proportion
that the deposit would cover ther
and there. But the bank need no
| make part payment. This is because
litis entitled to the check for use a
a voucher in settling with the depos
itor.
When the bank pays a prope,
check it has right to charge pay
ment against the depositor. 1t ma!
be that the bank will chose not t,
dishonor the check for ten dollar
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