Bank.

Question 125.— A customer of a bank at St. Hyacinthe which has not a branch in Montreal, presents his cheque on the St. Hyacinthe Bank, which the latter at his request stamps " payable at par at the Merchants Bank of Canada, Montreal," adding thereto the initials of one of its officers. Would the St. Hyacinthe bank be bound to honour the cheque if presented either by the Merchants Bank of Canada or the party to whom the cheque was sent?

Answer.—It would seem clear to us that if the Merchants Bank should cash the draft on such a crossing they would be entitled to look to the St. Hyacinthe bank for its payment, not on the ground that the cheque was accepted or marked good, but on the ground that the drawee bank had requested them to pay the cheque on its behalf. The stamp and initials, we think, constitute such a request.

The position of the party to whom the cheque was sent i? somewhat difficult, and we should hesitate to say without further consideration that the St. Hyacinthe bank would be bound to pay the cheque to him, although it would seem reasonable to have the bank responsible to this extent in view of what they had placed upon the cheque.