The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-08-14
OvERDRAF 7 is
NUISANCE FOR
BANK
Costly to Handle and Soon
VIII Destroy Credit for
Customer
BY RICHARD HATTON

By RICHARD HATTON
Be careful when drawing a
check to know that you have suffi-
cient funds in the bank to meet
payment, for untold trouble may
arise from carelessness in this re-
spect. Trouble for the bank upon
which the overdraft is made,
trouble for the person attempting
to cash the check, and, incidentally,
great embarrassment to the person
who inadvertently issues an order
for the payment Of funds which
are not standing to the account
upon which the check is issued.
1t is a generally accepted prac-
tice of banks to protect their Gus
toners in every possible way
against trouble and embarrassment
arising from carelessness in draw
ing checks and it would surprise
the average customer Of a bank to
know the great expense required to
give adequate protection, not only
to the customer, but to merchants
and others in whose favor checks
may be drawn.
One item alone which will indi-
cate the extra work entailed upon
a bank by the thoughtlessness Of a
customer who overdraws an &C.
count may be cited in the fact
that the check itself must pass
through many hands. That is, it
must be handled and scrutinized by
several employees in the bank where
IT comes for final payment.
Must Return Same Route
II the check has been cashed in
another bank, or, if it has been
given to a merchant in payment for
a bill, it must pass through a like
number of hands in at least one
other bank Then. when it is dis
covered that the check is for an
amount greater than the deposit in
the bank upon which it is drawn,
back it goes through many busy
hands and over many busy desks
until, finally, it is returned to the
one who drew it with the terse
legend stamped upon the face. mot
Sufficient Funds"
Banks do not enjoy stamping
check as worthless. 1t is the policy
Of every bank to afford those who
draw checks the utmost considera-
ton, even when through inadver-
lance or for other rea sons, an &C.
count has been overdrawn. Bank
officials realize the frailties of hui
man nature, they understand that
mistakes occur and they are anxious
to be of help at all times in finan-
cial matters, but 1t is obvious that
NJ banker can assist the depositor
who makes drafts upon an account
which is not sufficient to meet the
demand.
In most instances where an ac-
i- f7roxr lie 10
cause the person who issues the
check mas failed to keep a proper
account of the balance remaining
to his credit The great maiority
of people who use the conveniences
of bank for checking purposes are
honest. But. honest or not. care
lessness in overdrawing is almost
objectionable when il is considered
that several banks are thereby often
put to considerable expense and
nobody is benefited by the action.
Bad for Credit
From the standpoint of the de-
positor 1t is the worst sort Of bust
Less to issue a check which may be
returned because of insufficient
credit Of the one making the over
funds. Persistence in such action
will unquestiohably destroy the
draft, even if that credit is other.
wise unimpeachable. A worthless
check, and that is just what A
cneck drawn in an amount greater
than the deposit is, is the surest
means of spreading the word that
the person who drew the check Is
not good business man or woman,
Is not desirable bank client. is
rot to be trusted. This word finds
&c
ton to another, with the result that
credit is destroyed, often without
other reason than that the person
who issued the check is only guilty
Of gross carelessness.
There is, of course. another class
OF people who confound and bother
banks and cause amending worries.
This is the class that wilfully at
tempts to draw more than is on de-
post. When any person designcdly
tries to get money upon a bad
check the drawer of the paper, Of
course, becomes a criminal and
must face prosecution. Such cases
are handled by banks through legal
channels and the instances are few
wherein the bad check artist long
escapes punishment.
4 third class of overdraft pests
consists Of people who seem to be
mentally irresponsible and who move
about the country leaving a trail #
worthless checks behind them until
they are finally brought to a halt
and their friends or families make
good their financial depredations.
The criminal and the insane fsnds
must be treated as their cases de-
mand, but the average. upright,
honest and respectable citizen who
~ -
overdraws except through inadVer.
lance Or Main carslassnass