It is essential that the teller be familiar with the signatures of the depositors and also, in a general way, with the kind of ac count kept by each depositor. For the paying teller to stop and inquire of the bookkeepers regarding an account keeping a good balance is likely to be regarded as a reflection on the drawer's credit. It is better, however, to be sure than sorry, wherever there is doubt regarding an account or when the amount involved is large and reference to the bookkeepers is fitting. Such refer ence, if the bookkeepers are near at hand, is easy; but if distant, they can be reached by telautograph, interior telephone, pneu matic tube, or messenger, great care being exercised to do this quietly and in such a way that the action will be quite unknown to the party at the window.
The teller must be a handwriting expert. Forged checks are paid to the bank's loss. A person's signature at different times, while never exactly the same, has detectable characteristics. For the verification of signatures there is kept in the paying teller's cage a complete file of cards containing the authorized signatures of all accounts. These cards not only have on them the signatures of the officers of the various concerns who are author ized to draw funds, but should contain also the following data concerning the account: by whom introduced, nature of business, when opened, and instructions concerning by-laws, powers of attorney, etc. The signatures on checks are carefully examined as to their genuineness and authority. The work of assembling, filing, renewing, and proving these and other signatures becomes so voluminous in a metropolitan bank as to require the exclusive attention of an independent department, the signature depart ment.
" Stop-Payment" Orders So many checks are continually going astray in the mails and otherwise that it is unsafe to pay a check more than a few hours old without looking through the list of "stop-payments." The drawer of a check may, after it is drawn, wish to prevent the bank from actually paying it; such occasions arise, for instance, when the check has fallen into wrong hands, when a duplicate has been issued, or when a business transaction has been forfeited. The drawer requests the bank to refuse payment of a certain check upon presentment, the request perhaps being made by letter so as to give the signature of the drawer. It is then the business of the paying teller to watch for this check; if he pays a stop-order he cannot charge the amount to the customer's account.
Stop-orders arc, therefore, annoying, and a systematic watch for such items is required. Stop-payment cards are prepared and distributed to all tellers and bookkeepers affected; the paying teller may keep a complete file of these cards, but in large in stitutions the volume of this work has necessitated the creation of a specialized department or its reference to the check desk bookkeepers, in which case the paying teller will only keep on file stop-order cards for checks drawn within a day or two; it becomes unnecessary for him to care for the others, since he would make no payments on old checks unless passed upon by the check desk bookkeepers who have notice of stop-payments. The stop-payment cards should contain a description of the check, its drawer, number, date, amount, payee, a statement of whether a duplicate has been issued, by whom the information was received, whether by letter, telephone, or personal call, hour when filed, and any other memoranda thought useful.
For reference and legal protection the maker's letter request ing estoppel of payment is filed, and record is also kept of the withdrawal of the stop-payment. Stop-payments may arise otherwise than by request of the maker. For instance, legal action, such as court order, garnishee, etc., stops payment during its period; or factional fights within a customer's organization may make it unwise to pay except to the court.
Raised, Postdated, and Stale Checks By the Negotiable Instruments Law, if a bank pays a raised check it is liable for the amount of the raise, although it may recover from accommodation indorsers subsequent to the raising. A defense might be set up that the instrument was so carelessly drawn as to invite fraud. Material alterations in the instrument render it void; thege consist of any change or addition which alters the effect of the instrument in any important respect, such as change of date, sum payable, time or place of payment, num ber or relation of parties, or the medium in which payment is to be made. To lessen the danger of altering checks safety paper or a check-writer or protectograph should be used by makers, or at least great care should be taken to make the instrument as difficult to alter as possible. If there is an inconsistency between the amount stated in figures and the words, banking practice is to use the words, and this practice is sustained by the courts; some payers play safe and pay the lesser of the two sums.