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

dollars, will present it at the banl
for payment and discover that the
depositor has balance of bu
seven Often the holder of the
check would be glad enough to gel
the proportion that the deposit
would cover then and there. But
the bank need not make part pay
ment. This is because it is entitled
to the check for use as voucher ir
settling with the depositor.
When the bank pays a proper
check it has a right to charge pay
ment against the depositor. Ii
may bethat the bank will choose not
to dishonor the check for ten dollars
when a balance of but seven re.
mains and will accommodate it's de.
position by paying the check in full.
This is what is known as an "oyer.
draft and while contrary to the
printed rules of most banks is still
frequently done in ordinary com
mercial practice. If the bank al
lows an overdraft, in effect adyanc.
ing money for it's depositor, it may
recover the amount from him.
Bankers do not take time to in
vestigate depositor's account for
every check that is presented to the
bank for payment. They depend
upon memory, and confidence in
the deposition, in many instances.
So it sometimes happens that a
bank will pay check under the
belief that the designer has ami ede-
quate balance on deposit, When
such is not the case. On discover
ing it's mistake banks have some
times endeavored to recover the
money paid the person who pre-.
sented the check, but they have
not been successful. In one sense
of the word the bank paid under
mistake, 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 a 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 stop payment" Stop
ping payment ends the banks duty
and also its right to pay the check
when presented. 1t not only need
not pay the check, but must not pay.
If it disregards its depositor's in
structions and pays the check on
which payment has been stopped it
is the loser as it may not charge
that payment against the deposit
tors account.
A. L. Sullivan owed James P.
Long $47 90, 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 bank. The bank
lost the money it paid out on the
check. This is because a bank is
bound to make certain that it 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.
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 it. So it is that bankers
will cash checks only for respon-
sible parties known to them.
Thus we have illustrated an
extreme case under the general
proposition that bank paying a
check must do SO only to the proper
party. If anyone steals or finds a
check, or forges an Endorsement,
and so secures payment from the
bank, the bank must stand the loss.
If a check has been Endorsed in
blank, or was drawn in such form
that it is payable to bearer, any
bearer may receive payment on it
and bank is justified in paying it
to any bearer, unless there are some
special circumstances 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 check payable to