A CHEQUE is an order for money, drawn by one who has funds in the
bank. It is payable on demand. In reality, it is a _sight draft_ on
the bank. Banks provide blank cheques for their customers, and it is a
very simple matter to fill them out properly. In writing in the amount
begin at the extreme left of the line.
The illustration given below shows a poorly written cheque and one
which could be very easily _raised_. A fraudulent receiver could, for
instance write, "_ninety_" before the "_six_" and "9" before the
figure "6," and in this way raise the cheque from $6 to $96. If this
were done and the cheque cashed, the maker, and not the bank, would
become responsible for the loss. You cannot hold other people
responsible for your own carelessness. A cheque has been raised from
$100 to $190 by writing the words "_and ninety_" after the words "_one
hundred_." One of the ciphers in the figures was changed to a "9" by
adding a tail to it. It is wise to draw a running line, thus ~~~~~~,
after the amount in words, thus preventing any additional writing.
[Illustration: A poorly drawn cheque.]
The illustration on page 8 shows a cheque carefully and correctly
drawn. The signature should be in your usual style, familiar to the
paying teller. Sign your name the same way all the time. Have a
characteristic signature, as familiar to your friends as is your face.
A cheque is a draft or order upon your bank, and it need not
necessarily be written in the prescribed form. Such an order written
on a sheet of note-paper with a lead-pencil might be in every way a
legally good cheque.
[Illustration: A carefully drawn cheque.]
Usually cheques should be drawn "_to order_." The words "_Pay to the
order of John Brown_" mean that the money is to be paid to John Brown,
or to any person that he _orders_ it paid to. If a cheque is drawn
"_Pay to John Brown or Bearer_" or simply "_Pay to Bearer_," any
person that is the bearer can collect it. The paying teller may ask
the person presenting the cheque to write his name on the back, simply
to have it for reference.
In writing and signing cheques use good black ink and let the copy dry
a little before a blotter is used.
_The subject of indorsements will be treated in a subsequent lesson._