[Illustration: Showing cheque raised from $7.50 to $70.50.]
A CHEQUE is an order for money, drawn by one who has funds in the
bank, payable on demand. 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
illustrations given here show a poorly-written cheque and a copy of
the same cheque after it has been "raised." The original cheque was
for $7.50 and shows very careless arrangement. It was a very easy
matter for the fraudulent receiver to change the "seven" to "seventy"
and to add a cipher to the amount in figures. The running line was
written in on the raised cheque to deceive the bank. In this case Mr.
Carter and not the bank must suffer the loss. Mr. Carter cannot hold
the bank responsible for his carelessness. Drawers of cheques should
exercise the greatest care in writing in the amount to prevent changes
or additions. Draw a running line, thus: ~~~_Nine_~~~ before and after
the amount written in words. If the words are commenced close to the
left margin the running line will be necessary only at the right. The
signature should be in your usual style familiar to the paying teller.
The plain, freely written signature is the most difficult to forge.
Usually cheques are 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 he "orders" it paid to. By indorsing the cheque in blank (see
indorsements) he makes it payable to bearer. If a cheque is drawn "Pay
to bearer" any person--that is, the bearer--can collect it. The paying
teller may ask the person cashing the cheque to write his name on the
back, simply to have it for reference. Safety devices to prevent the
fraudulent alteration of cheques are of almost endless variety, but
there has not been a preventive against forgery and alterations yet
invented, which has not been successfully overcome by swindlers. A
machine for punching out the figures is in common use, but the
swindler has successfully filled in the holes with paper-pulp and
punched other figures to suit his purposes. The safest cheques are
those carefully written upon what is known as safety paper.