Another duty of the paying teller is to guard against paying postdated checks. The bank can legally pay only checks drawn the day of presentment or earlier; to pay postdated checks would curtail the maker of the privilege of stopping payment. On the other hand the paying teller must be watchful of "stale" checks.
The duty of the bank to honor a check is not affected by its age, at least within the period of the Statute of Limitations. The check is a continuous order, good at any time before outlawry or revocation; and the bank having sufficieatfunds of the drawer is under obligation to pay it, and is protected in paying it, at any time within these limitations. The only effect of age is to put the bank upon its inquiry. It is right, and perhaps the duty, of the bank to inquire into the matter before paying an old check. If, however, the bank chooses to waive its privilege of inquiry and pay the check, it may do so. If the check be good, the bank will suffer no loss. But if the check ought not to have been paid, and the bank, by inquiring, would have discovered the fact, then the bank may be held to bear the loss arising from its own laches.
This is a matter for the paying teller to decide.
Finally, if the check is not dated, the paying teller may legally fill in the date as of the day of presentment, or else get the pre senter to do so.
Identification of Presenter It is not the custom in this country to pay checks drawn to order without good and sufficient identification, and this perhaps more than any other one thing causes the paying teller, as well as the presenter, no end of trouble. Checks are being constantly presented by persons who are not known at the bank and have no satisfactory means of identification, and it is the teller's duty so to pass upon cases of this kind that the bank is protected and the customer satisfied. Frequently a check-holder resents being questioned regarding his identity, and it takes time and tact to convince him that it is for the common protection of himself and the bank that his identity be fully established before the cash is passed over the counter. Some of the bank's correspondents enclose in their advices the written signatures of the parties in whose names the drafts are drawn; these signatures and advices generally reach the bank before the drafts are presented, and much time and trouble are thereby saved. Less difficulty is had
with holders of foreign checks, as they are generally supplied with several documents showing their identity. The identifica tion of foreigners should be handled by the foreign division, which is more conversant with such instruments. These consist of passports, military passes, birth and marriage certificates, and various other official documents; and in many cases the signature of the indorser is forwarded by the bank of issue. If this were done in all cases, and especially in cases where the amount involved is large, it would greatly facilitate the paying of these checks.
Checks made payable to "bearer," "cash," "currency," or to a fictitious party, may be paid to the party without identifica tion or indorsement, for they are negotiable by delivery alone. But it is wise for the paying teller to insist upon indorsement by the presenter of even these bearer checks; such indorsement gives evidence of good faith, for the presenter becomes liable as indorser to such holders as may make title through his indorsement.
The Signature Department—Duties and Organization As stated above, the duties of gathering, filing, renewing, and examining signatures have grown to such proportions as to neces sitate relieving the paying teller of the burden. Relief is obtained by the creation of a special department to handle all matters relating to signatures for the paying teller, as well as for other departments.
The organization of the signature department is simple. It is in charge of a signature clerk. In addition to the work of superin tendence, the signature clerk passes upon the authority of the signatures, which requires that he be an expert in the law relating to signatures. He also directs the work of procuring signatures.
The rest of the department are engaged in proving signatures on the various items sent in by other departments of the bank. The signatures are divided into sections following the check desk ledgers, and the clerks are rotated from section to section lest the monotony cause the clerk to grow stale; various schemes of rota tion may be devised.