REVIEW QUESTIONS.

(1) What is a bank check?

(2) How are they usually written?

(3) Explain the difference between a check written payable to order or to bearer.

(4) If one carries a check some time after received, and the bank should fail, what often happens?

(5) If the drawer has not funds in the bank, and payment is refused, to whom must the holder look? (6) When should a time check be presented for

payment?

(7) What is said about the use of checks in business?

(8) Explain how a merchant in Boston can pay a debt in New York most conveniently?

(9) For what purpose do many business people keep bank deposits?

(10) How is it a convenience for them? Explain fully.

(11) Can a check be transferred?

(12) In transferring a check, what must we do? (13) Does the endorsement of our name on a check hold us responsible?

(14) Suppose a check passes through several hands, and the bank refuses to pay it, you being the holder, what would you do to get your money?

(15) Is it safer to carry a check than bank bills or gold?

(16) How can a check be made safe?

(17) Explain how it can be made so.

(18) If a bank cashes a forged check, who sustains the loss?

(19) Is a check drawn on Sunday valid? Is a note? (20) Are days of grace usually allowed on checks? (21) Is a check good if signed with pencil or a mark?

(22) How can one sign a check if he cannot write? (Ans. Make his mark or cross as he would on a note or deed.)

(23) Why should heavy lines be drawn at the right, or right and left, of the amount specified in writing? (24) If the writing and figures do not express the same amount, which holds ?

are.

(25) Explain who the drawer, drawee, and payee

(26) If you hold a check, how can you draw it at the

bank?

(27) How can you transfer it to another?

(28) If you have no bank deposit, can you get a cashier's check? Explain how.

RECEIPTS.

All

A receipt is a written acknowledgment of money, goods, or service received. receipts should contain the name of the town or city, date, for what given, how much received, from whom, and the name of the receiver. The amount should be written in the body of the receipt, and appear in figures at the left upper or lower corner.

In the payment of money, or of a debt, in part or in full, always take a receipt or a written paper showing the payment. Such papers should be carefully kept on file for

Receipts are more commonly given for rent than receipted bills. In giving either a receipt or receipted bill, always be particular to name the
property and time for which rent is paid.

Time.

Feb.192

$35

Amount

No.

REVIEW QUESTIONS.

(1) What is a receipt?

(2) What should every receipt contain? (3) Why should it state how much and what is received?

(4) Why should it state from whom and the name of the receiver?

(5) Where should the amount received appear, and why? (6) What are the special advantages of receipts?

Bills and receipts should be carefully folded, and labelled with name, date, and amount they specify, at the top, and placed on file, for at least six years.

DRAFTS.

A draft is an order drawn by one person or firm addressed to another person or firm. directing the payment of money to a third party or his order, or to the maker, at a certain time. They are usually drawn payable at sight, or a specified time after sight or date.

If made payable after sight, it is usually presented to the drawee for his approval, which he indicates by writing diagonally across the face of the draft the word, "Accepted," with the date and his signature. This is his guarantee, or his promise, to pay at the specified time. The days of credit are counted from the date of acceptance. Usually three days' grace is allowed on such drafts. The acceptance' by a firm is indicated in the same. way as by an individual. An accepted draft is in effect a promissory note, and is collectible and negotiable in the same manner as a note.

Draft No. 2 is the more common form, which may be called a collection draft. It is made to hasten payment.

Twenty-four hours is usually allowed by banks for payment of a sight draft before protesting it; but a demand draft is protested before the close of the day's business if not paid on presentation.

A protest is a statement by a notary public, signed and sealed, that he has presented the bill to the proper parties and at the proper time and place for acceptance or payment, and that it was refused.

Protest may be made of a draft, check, order, or promissory note with an endorser, usually for the purpose of evidence or to hold the endorser responsible, who is notified of the failure to pay.

It is not common to protest collection drafts. They are used to hasten payment of an over-due debt. Frequently parties sending such drafts put on the draft "no protest," or direct the agent into whose hands it is placed for collection not to protest it.

Drafts are also used as a great convenience for business men. Suppose Newcomb of Boston owes Perkinson of New York City $500, and Nutter of New York owes Newcomb the same amount, both due the same day. Newcomb could send the order to his creditor, and ask Nutter to pay Perkinson that amount. This would require no transfer of money between the cities, and would be a convenience to all concerned.