A check is a written order on a bank for money. It should, of course, be drawn only by someone who has a deposit with the bank or the right to draw on it. As in a bill, the parties to a check are the drawer, the drawee, and the payee. But, unlike a bill, there does not have to be an acceptance. A check is drawn on a bank or banker; a draft may be drawn on an individual, firm or corporation. A check is always drawn payable on demand whereas a bill of exchange may be drawn payable at sight or at some future time. Checks are usually made payable to some one's "order," and must then be indorsed by the payee before they can be cashed or further negotiated.

Check Books And Voucher Checks

The check book is simply a book of blank checks given to the depositor which he may use to draw on his deposit when he pleases. Most check books are so arranged that the checks may be torn out and a stub left in the book, which serves as a reference to the depositor and has spaces in which he may enter the name of the person to whom the check was given, the amount, the number, the purpose of the check, the amount left in the bank, and amounts deposited. The owner of the check book is not required to fill these out, but it is an easy and wise thing to do. It is particularly important for the depositor to make a memorandum of the description of every check he deposits, in order to facilitate tracing and identification if it should be necessary later to do so, and to keep his records straight, so as to avoid an overdraft.

Check Form, Showing Stub In Check Book $.................. No..........

...................... 192.......

To .............................

For............................

Statetown.....................192............No.............

State National Bank Of Statetown 59-16

Pay to the order of....................................$...........

..................................................... Dollars

Form For Checks On Other Banks (Bank Drafts)

Statetown.................... 192........No.............

Institute State Bank of Statetown

59-16

Pay To The Order OF...........................................$...........

......................................................................... Dollars

To the

Clearing House Bank .........................................

1 - 20 New York cashier

Form For Voucher Check

Voucher No_________

Approved

.......................................................................

Chairman

_______________________Committee

Countersigned and Approved

.....................................................................

Secretary

Pres., First Vice-Pres., Chairman Exec. Council

Items

.......................................

........................................

.........................................

New York........................192........No.........

Treasurer

The American Bankers Association

Pay To The Order OF.................................

......................................Dollars $...........

In full payment of Voucher No...........

The American Bankers Association Payable At

American Bankers Bank

Secretary

Counter Checks

In order to prevent forgers and swindlers from using the regular checks of the bank the "counter check" has been devised. These may safely be left open to the public because they are cashable only at the bank's counter and by the drawer in person.

Voucher Checks

Voucher checks are checks that include a statement of the goods ordered or expense incurred by the drawers. Many companies issue such voucher checks in order to secure indisputable proof of the payment of the items described in detail by the voucher part of the check. They will be slightly different in form for different businesses, but they should always be made in negotiable form and in the form of a straight draft or check, with the indorsement of the payee to be accepted as sufficient receipt.

Travelers' Checks

These are issued by the American Bankers Association, by some of the larger banks and by express companies, at a small cost and are a great convenience to travelers. The purchaser signs them at the time of purchase and his countersignature, which must agree with the original, is all that is necessary at the time of cashing. These checks are usually readily accepted at railroad stations, hotels, etc., and if lost or stolen before being countersigned, may have payment stopped upon them and duplicates issued. They are issued in denominations of $10, $20, $50 and $100.