Question 303.— A cheque payable to the order of Joseph Smith is endorsed " J. Smith." Would the bank be justified in refusing to pay it if endorsed by and presented by another customer ?

Answer.—Such an endorsement is as valid, if made by the payee of the cheque, as the full endorsement "Joseph Smith " would be, and we think that the bank would not be justified in refusing to pay the cheque, except under the circumstances or for reasons which would cause them to refuse if the full name had been signed.