"James Smith."

Question 172.— (1) With reference to your reply to Question 171, is a bank justified in returning as not properly endorsed a cheque which is payable to "James Smith, Overseer," and endorsed simply " James Smith " ?

Your answer to question above referred to, indicates that such an endorsement is sufficient. Should the principle involved be generally accepted, and the endorsement stamp of the depositing bank be accepted as a sufficient guarantee to the paying bank in such cases?

Answer.—It seems to be the practice in England to treat such endorsements as incorrect, but we are advised that they are sufficient and consequently we can only say that we think a bank would not be justified in returning the cheque described merely because the word " overseer" has been omitted from the endorsement.

We are of opinion that so long as the endorsement on an item is such that (assuming it to have been put on by the payee or endorsee) if constitutes a valid discharge, it should be accepted without question from the depositing bank, which would, in such a case, be responsible if the endorsement proved to be defective.