In order that the bank may be able to verify the genuineness of the signature signed to checks drawn by depositors, each person, when he makes his first deposit, is required to write his name as he proposes to sign it on the checks he is to draw, and his address, in a book kept specially for this purpose, or on a piece of paper sent by him to the bank, to be pasted in the "signature book.”

The better plan, now in use, is a system of cards, upon each of which a depositor writes his signature and address, the cards being arranged alphabetically in a box made for the purpose, and secured in same by a metal rod running through a hole punched in the lower edge. The rod, secured to the box, serves to bind the cards together, but loosely, so as to admit of easy reference to same in alphabetical order, as follows:

A check should be presented for payment to the "paying teller," who, after satisfying himself that the signature is

genuine and not forged, and that the signer has enough money in bank, or "to his credit" on the bank's books, pays it to the person presenting it, if the check is payable "to bearer," regardless of who he is, unless he has good reason to believe that it has been stolen or improperly obtained by the person presenting it, or the bank has been instructed by the depositor drawing the check that he does not wish it paid. If the check is made payable "to the order" of any party, the teller, before paying it, requires the person presenting it to "identify" himself, if he is not personally known to the teller, and to endorse it by writing his name on the back. To "identify" himself it is necessary for the endorser of the check to get some person who knows him and is also known to the teller to state that he is the person to whose order the check is payable. This is the only way in which a bank can protect itself from fraud and dishonesty on the part of any person improperly coming into possession of a check drawn to the order of some other person.

NATURE OF CHECKS.

A check on a bank is always payable upon presentation during business hours, and the bank upon which it is drawn is under no obligation to pay it unless the person drawing it has the full amount named in the check standing to his credit on the books of the bank.

If a depositor draws several checks, amounting in the aggregate to more money than he has to his credit, the bank should pay these checks in the order of their presentation,

without regard to their dates or numbers indicating the order in which drawn, until the amount to his credit is exhausted, and may refuse to pay those presented after this. So, also, where a customer, having an amount to his credit, issues a check, and afterward instructs the bank not to pay the check when presented, the bank should refuse payment, leaving it to the holder to collect his claim in some other way from the drawer of the check, or from the endorser if the check is endorsed.

Where payment of a check payable to bearer is refused by a bank, it is not necessary to have it protested, as in case of a note at maturity, but if the check is endorsed by some other party than the holder, then it should be formally presented at the bank and protested for non-payment in order to hold the endorser responsible for its payment.

The check is most convenient and safe instrument for effecting payment of a debt, as when it is endorsed to the order of the party to whom the debt is due, it can with safety be sent by mail or otherwise to him, with the assurance that he will receive payment, for if the bank on which it is drawn pays it on a forged endorsement to anybody else, it must make the amount good to the real owner. Periodically a bank calls for the depositor's pass-book, "writes it up" and "balances" it. This is done by comparing it with the depositor's "account" on the bank's "individual ledger," which ought to show all deposits made and all checks paid for his account. If any entries of deposits are omitted from the pass-book, these are entered by the bank, and the amounts of all checks paid are also entered on the

opposite side of the pass-book. The entries made are then added up on both sides, and the total of checks being deducted from the total of deposits, the remainder shows the "balance" still remaining to the depositor's credit with the bank. The paid checks are returned, with the pass-book, to the depositor, who is usually required to give the bank a receipt for them, which also acknowledges the correctness of the amount of the balance remaining. On receiving these paid checks the depositor should examine them carefully to see if the signatures are genuine and that the amounts for which they were originally drawn have not been dishonestly altered or "raised" to a larger amount. These paid checks, when so returned, are really receipts for the money paid on them. So a check is not only a safe method of paying or remitting money, but when returned to the drawer is a good receipt for the payment.

POWER OF ATTORNEY.

Sometimes, on account of the absence or disability of a depositor, especially if he is in some active business, it is necessary to delegate to some clerk or other person the authority to sign checks drawn against his account at a bank, and to perform other acts necessary in dealing with the bank. In such a case the depositor signs and executes a paper called a "power of attorney" in favor of another party, and files it with the bank. The following is a good form of "power of attorney":

That

POWER OF ATTORNEY.

KNOW ALL MEN BY THESE PRESENTS,

have made, constituted and appointed, and by these presents make, constitute and appoint

do

true and lawful attorney for

and in

name, place and stead, to make and sign promissory notes, to make, sign and draw checks upon THE NATIONAL BANK OF THE CITY OF NEW YORK, to endorse for discount, deposit and collection to the credit of

account in said Bank, bills of exchange, drafts, checks, promissory notes, orders and certificates of deposit, to endorse bills of lading, warehouse receipts and other evidences of title to merchandise; to borrow money on promissory notes and to secure the payment of the same by pledging the merchandise, or other property of and generally to attend to

banking business with said Bank, said attorney full power

giving and granting unto and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises, as fully to all intents and purposes as might or could do if personally present, with full power of substitution and revocation, hereby ratifying and confirming said attorney or substitute shall

all that

lawfully do or cause to be done by virtue hereof.