Association.

Question 287.— A cheque in favour of Smith, Brown & Company is endorsed with a rubber stamp " Smith, Brown & Company, per                ," one of the firm signing his name underneath. Should this endorsement be guaranteed under the rules of the Association?

Ansiver.—Under the last clause of Rule 2 the absence of words indicating the authority of the person signing makes the endorsement irregular, and therefore one which should be guaranteed. To meet the rule the partner endorsing in the usual manner should add such words as " one of the firm." It must be remembered, however, that the rule in question is largely for the protection of the depositing or presenting bank (see Rule 10), and if the paying bank knows as a matter of fact that the party endorsing is a member of the firm it would be hypercritical to require the guarantee.