This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 45.— In reply to your question, No. 426 (Journal No.) you say, " On the whole the practice of attaching a power to the draft seems the proper one to follow," while in replying to question No. 435 you say, " We think that as a matter of practice it is best that the power of attorney be filed at the bank at which the bill is accepted, but that it should at once send this document to the bank owning the bill if it ever has to take legal proceedings."
Do these questions refer to the form of power of attorney used by banks in order to obtain acceptance of bills drawn on parties or firms located at a distance? If so, the answers would seem to conflict.
It is the practice here to attach the powers to the bills. In my own case, I add the words " as per authority attached " when accepting the drafts.
Answer.—The two replies referred to are perhaps not quite consistent, but the first was as to the propriety of the attorney retaining the power of attorney as evidence that in accepting the bill he had not gone beyond his powers, and the second dealt with the question whether, in case such a bill is dishonoured and returned to the owner, it should not be accompanied by the power of attorney.
The two questions together might be answered thus: that until the bill matures it is most convenient that the power of attorney should be attached to it; that it should be left attached to the bill when it goes to the paying bank; but if dishonoured it had better be retained until the owner of the bill requires its production in evidence.