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 is to 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 probably
will not hesitate to cash the cheque. In England all cheques
apparently properly indorsed are paid without identification. 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 Smith, Boston, it may possibly fall into the hands of the wrong
John Smith; but if you write the cheque in favour of "John Smith, 849
Tremont Street, Boston," 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 it is likely you
will not have trouble in getting it cashed. By placing his signature
on 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.