4. Examination Of Signatures

The receiving teller should examine the signatures,. indorsements, dates, and other features of checks, the same as the paying teller. Depositors who are perfectly honest may be cheated by others, and deposit fraudulent or kiting cheeks. The depositor should indorse his name below all others on the back of each check. The receiving teller should notice especially this last indorsement, for at times, when checks are rapidly received for deposit, it is impossible to examine them carefully, hence, the greater need of looking at the indorsement of the depositor.

' See page 98 for a full statement of the proposed rule.

5. Reclamations

Reclamations between banks occur daily. Checks are dated ahead, or dates are omitted. Indorsements are lacking, the sum in the body of the check does not correspond with the figures below, or the sum or figures may be wanting. Sometimes the signature is missing, or written so imperfectly that it can hardly be identified. The writer knew a large depositor having a very long name, who rarely had the patience to write all the letters. Besides he wrote the abbreviated form with a lead pencil. His bank always honored his checks, but required him afterward to write his full signature to them, doubtless hoping that he would take more pains in writing his name in the future. As soon as errors are discovered, of course no time should be lost in correcting them.

Merchants sometimes keep accounts in more than one bank, either to obtain larger discounts or to maintain greater secrecy about their business.

6. Indorsing By A Stamp

In depositing checks, as we have said, depositors indorse them and, for this purpose, sometimes use a rubber stamp to hasten the work. This is a legal indorsement, though when it is disputed evidence of affixing the stamp is required to prove its legality. In the case of a written indorsement it is presumed to be legal until its genuineness is questioned by some one who has an interest in the contention.

7. Marking Counterfeits

When notes are received that are counterfeit, the receiving teller should mark their character. The national bank act requires him to stamp or write in plain letters the words "counterfeit," "altered," or "worthless" on every fraudulent note. But if he mutilates a national bank or government note that is genuine, his bank is liable to the presenter for the amount. This is sometimes a delicate duty to perform. The teller receives such a note from a depositor and informs him that it is his duty to stamp it and return it to him. The depositor may object because the effect of stamping it is to destroy its circulation. He may ask the teller to return it to him; what ought he to do ? Before him is the law written as clearly as daylight, there stands the depositor whose ill will he does not wish to incur. The difficulty may be enhanced by a teller's uncertainty concerning the real character of the note. If this be a government note, he can at once relieve himself of embarrassment by having it sent to the treasury for redemption. If redeemed, the depositor loses nothing; if it is condemned, the government, and not the receiving teller, has been the actor. We think, however, in the ease of doubtful notes, they are usually returned to the depositor.