The banks of this country make it a rule not to cash a cheque that is
drawn payable to order, unless the person presenting the cheque is
known at the bank, or unless he satisfies the paying teller that he is
really the person to whom the money should be paid. It must be
remembered however, that a cheque drawn to order and then indorsed in
blank by the payee is really payable to bearer, and if the paying
teller is satisfied that the payee's signature is genuine he will not
likely hesitate to cash the cheque. In England all cheques apparently
properly indorsed are paid without identification.
[Illustration: A cheque drawn so as to insure payment to proper
party.]
In drawing a cheque in favour of a person not likely to be well known
in banking circles, write his address or his business after his name
on the face of the cheque. For instance, if you should send a cheque
to John Brown, St. Louis, it might possibly fall into the hands of the
wrong John Brown; but if you write the cheque in favour of "John
Brown, 246 West Avenue, St. Louis," it is more than likely that the
right person will collect it.
If you wish to get a cheque cashed where you are unknown, and it is
not convenient for a friend who has an account at the bank to go with
you for the purpose of identification, ask him to place his signature
on the back of your cheque, and you will not likely have trouble in
getting it cashed at the bank where your friend keeps his account. By
placing his signature upon the back of the cheque he guarantees the
bank against loss. A bank is responsible for the signatures of its
depositors, but it cannot be supposed to know the signatures of
indorsers. The reliable identifier is in reality the person who is
responsible.