is in form a receipt for funds transferred or withdrawn. The internal revenue law provided for a minimum tax of two cents on each check. Instead of presenting a check, the customer would sign a receipt, and the bank would thereupon make the payments or deliver the funds for which the receipt was drawn. This was in general use in many parts of the country for direct dealings of customers with banks.

How to authorize others to draw on one's account. It is sometimes a convenience in business to give to some one else the power to check against one's bank-account. This may be done by giving to another a power of attorney -i. e., the right or authority to be your attorney, to represent you in the transfer of funds on your account at a bank. Authority of this kind must be in writing, unless the bank is willing to take the responsibility for oral authorization. Financial houses, as well as the United States Post-Office, issue printed blanks for use by those who wish to give to others the power to draw on their accounts or to sign money-orders. A power of attorney from Daniel Webster to Mrs. Webster, giving her authority to draw and sign checks, is represented on page 68. This was first reproduced in Rhodes's Journal of Banking; it was taken from the files of the bank where it was used by Mrs. Webster.

In

The crossed check.-The "crossed check" is a form of customer's check not commonly found in America. England, however, it is in common use. It is an ordinary customer's check that has across its face bars which signify that it must be presented for payment through some other banker. Such a check will not be cashed if presented by the payee himself to the bank against which it is drawn. The object of such a check is to have it first presented to a bank to whom the payee is known, and whose indorsement will be accepted as a guarantee of the credit of the maker. When a check is crossed "in bank"-that is, has two lines

drawn across its face with "& Co.," inserted-it may be presented for payment to any bank other than the one ont

Know are even

all

by these presents that

J. Deimel Welder have constituted & of

pointed, do do constitute & appoint, my

cettomey, in my name & Strand, or in hen
own name, to make & Draw, at all times
hereafter chache,
chache, on order for any money.
Standig Day credit in the Note Baske

in Buston; & I hereby authouse land
Beant 2 tr offriens & pay are such andas
I cheche, in the home manner as if
Draum by my-tell

Wiross my hand, at Boston,
the 4th day of summary 1847-

Deine Welte

FIG. 28.-POWER OF ATTORNEY DRAWN AND EXECUTED BY DANIEL WEBSTER IN FAVOR OF HIS WIFE, AUTHORIZING HER TO DRAW CHECKS ON HIS ACCOUNT AT THE

STATE BANK IN BOSTON.

which it is drawn; but when it is "specialized"-i. e., when it is crossed or has stamped across it the name of a

particular bank-it must first be presented to that bank for payment. A law has been enacted in England which prohibits the payment of a crossed check by a bank against which it is drawn until it has been presented through another bank. If the drawer of a check knows the payee's bank he will usually "specialize" it; if his bank is unknown, the check is crossed "in blank," and the bank paying it is held for proper indorsement. The "crossed check"

is a more secure form of negotiable instrument than the ordinary "customer's check. It is useless in the hands of the wrong person. We have reached practically the same end in this country by having stamped on checks intended for circulation as negotiable paper the words, "Payable only through. . . . Clearing-House when properly indorsed."

The cheque-bank check.-The use of the "crossed check" has given rise to an institution known as a "chequebank." This form of bank sells to its customers a book of its checks, the amount for which each may be drawn being limited on the face of the check itself. For example: A book containing 50 blank checks, each of which may be drawn for the maximum amount of $10, may be purchased

for $500. When the book is finally presented at the bank for settlement, the bank will return to the customer the canceled and paid checks; the difference between the amount of drafts actually made and the amount paid for the book will be returned to the customer, or credit will be given on the purchase of a new book. Check-books are made up of assorted blanks, to suit the customer's convenience. Such books may be had at the main office, or at any of the other banks which serve as correspondents of the "cheque-bank."

Other instruments of transfer of credit funds.-The "customer's check" is the instrument usually employed for the transfer of funds from one bank customer to another where business relations are such as to make them acceptable. It often happens, however, that a customer will find it desirable to have funds in a bank where he is not known, or will desire to make payment to one who does not care to take the risk of a private check. In such case some other form of instrument of transfer will be used.

FIG. 30.-USUAL FORM OF CERTIFIED-CHECK.

The "certified "check and the "cashier's check."-For this purpose one of the most common devices is the "certified check." The customer will draw his check for the amount desired, and this will be handed to the cashier of the bank in which he has funds. The cashier will there

fore write across the face, "Certified," or "Good when properly indorsed," over his official signature, and charge the same against the customer's account. This amounts to a transfer to the bank of the amount drawn, and a guarantee on the part of the bank that the funds will be transferred to the owner of the check on presentation. Another form is the "cashier's check." To obtain a cashier's check the customer will exchange his own check for that of the

cashier-i.e., the amount of funds represented by the check will be formally turned over to the bank, and the bank, through its cashier, will thereupon deliver its own instrument of transfer to the customer, made payable to such person as the customer may direct. Another form of instrument of transfer of credit funds used between banks is the bank draft. One of the most artistic engravings of this kind is given on page 70-a form of draft used by the "Biddle Bank" for business with its correspondents.

The money-order is an instrument of transfer of funds. created for a special purpose. For example: One wishes to send $50 to a person residing in another part of the country. He will make a deposit, or in some manner create a $50 fund in the hands of a company or department of Government whose business it is to transfer funds. The