Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1913-08-08
CHECKS AND BANK ACCOUNTS

CHECKS AND BANK ACCOUNTS
John MCGEE owed Warren Cor
don five dollars for a couple of loads
of cordwood. Gordon, having deliv-
cred the wood at McGee's residence,
went to McGee's store to secure his
money. MCGEE drew out his check
book and signed a check to pay to
Gordon the sum of five dollars. This
was on Tuesday afternoon about two
o'clock The bank did not close until
four, but Gordon, knowing that Me-
Gee was a responsible man OF means
and not needing the cash at that
time, decided he wouldn't cash the
check at once, but would keep it I'M
til he needed the money at the end
of the week Wednesday passed with
the bank open for business in the
usual way; again Gordon did not pre-
sent the check for payment. On
Thursday Gordon heard rumors that
the bank was in difficulties and
might fail, so he fastened to it's
doors only to find that he was too
late and that they had already been
closed. The failure proved complete.
Gordon went to MCGEE and asked
that he be paid his five dollars, in
sisting that it was McGee's bank that
had failed and that he had never
received his pay for the wood de-
livered. MCGEE inquired into all the
circumstances and pointed out that
had Gordon presented the check for
payment on either Tuesday afternoon
or any time Wednesday it. would
have been paid in full. McGee fur
Their stated that he had had the mon
ey on deposit in the bank and it had
been lost. Had Gordon presented the
check within reasonable time five
dollars, at least, would have been
saved and there was no reason why
MCGEE should lose five dollars a Sec
ond time. Before the law McGee's
position was correct, he was not re-
CURED to make good the check, Cor
don having failed to present it for
payment when he reasonably might
have at time it would have been
paid in full.
nnf of
checks on bank accounts is a familiar
business procedure in every com
munity, and an examination of the
legal relations of the banker, the de-
positor who signs the check and the
person to whom he gives it, is of the
greatest practical Importance. Let us
examine the legal significance of a
check, the requirements of a good
check and the obligations Of the va
rious parties to it.
The form of bank check is famil-
lar enough to all of u.s. 1t is usually
prepared by filling in ink or pencil
blank spaces in the printed form
provided by the bank. But the EN-
tire check may be written, and
checks have been prepared on many
substances besides paper. Lumber
men have Whitfield out a smooth
single and written their checks
thereon. A young profligate in Jail
after a spree once tore off his cuff
and wrote on it a check to obtain
funds to secure his release. The re-
quirement is that the check be in
writing of some kind, which includes
typewriting, etc. 1t is addressed to
q stated bank, which is directed to
PAY to the order of John Jones' or
"Pay to the order of Bearer" Ger
tain sum of money. These words,
pay to the order Of" are necessary
to the negotiability of the check
that is necessary so that 1t may full
fill all the legal requirements and
be capable Of passing by indorse-
ment, etc. A check may be drawn to
Bills Payable" or Rent" or
Cash." and is then payable to bear
er.
There is no legal requirement that
a check be dated, but this is a wise
and almost invariable custom. Any
legal holder of a check may fill in
the true date where it has been left
blank A check may be dated in the
past, or in the future. If dated in the
past it is payable at once, and il
dated in the future it is payable on
or after its date. While the words
ION demand" are not used In check
they are implied in law, the under
standing being that the bank is in
strueted by its depositor to pay to
the order of John Jones on demand.
A check must be signed by the de-
positor and usually in his own hand
though contract relations between
bank and depositor may authorize thu
use of rubber stamp, or some such
device in place of a written sigma
| ture.