A bank is supposed to know the signatures of its depositors. It is one of its first and most important duties to have them on file and immediately accessible by the use of a well-kept signature book.

Holders of checks, in very many cases, know nothing about these drawer-signatures. They have taken them, supposing, of course, that they are genuine. When they have collected the checks at the banks upon which they are drawn they are to a very great extent relieved of all further responsibility as to the signatures of the signers, for the bank by paying them has guaranteed their genuineness.

But the bank which cashes for a good holder a much-indorsed check, the signature of which is all right, generally knows nothing about its many indorsements beyond the fact that they seem to be all right and stand there in regular order, apparently correctly made. For the honesty and genuineness of these many or few preceding indorsements the last holder, for whom the check is cashed, whether he indorse the check or not, is fully and legally held, and no reasonable lapse of time before a discovery of the forgery is made will relieve him of this liability.