14. How An Account Is Opened With A Depositor

In opening an account with a bank, the depositor is required to write his signature in a book kept for that purpose, or upon a card, for the especial use of the paying teller. As a bank is the loser of money paid on the checks of depositors unless they are genuine, it is needful for a paying teller to make himself familiar with the signatures of his bank's customers to avoid mistakes in paying them.

15. Payment Of His Checks

It may be asked, does he really know whether the checks purporting to be signed by depositors are genuine or not? In many cases he has some knowledge of their signatures. Practice makes perfect in his business as in many others. It is remarkable how much knowledge can be attained about signatures by one who is constantly studying them, and whose success to a considerable degree depends on his proficiency in this regard.

There are, however, safeguards of the highest importance. First, many checks are presented for payment by other banks through the clearing house, and there is ample time to examine the signatures to them before crediting the banks to which they belong. Second, the fact that they are presented through another bank is a great protection. For in all such cases the banks that received them have taken them from their regular depositors and not from strangers, and the strong probability is that the depositors knew from whom they were taking them. In most cases they have been received directly from their makers, who have only one chance to lead others astray. It is possible for a confidential clerk of the maker to forge his signature ; cases of this kind now and then happen. When a check is transferred by the original payee to another and is deposited by the holder, there is less certainty of its genuineness, yet the strong probability is that the second payee or indorsee knows the character of the person from whom he has taken it. At all events, all parties who transfer a check must indorse it, and this is a protection both to the bank and to the depositor.

16. Accounts Of Minors, Trustees, Etc

Depositors are not confined to men or corporations; they include all kinds of associations and women. A depositor who is not of age should act through a trustee or guardian; yet banks often take accounts from persons who are nearly of a receiving their money and honoring their checks. It is the prudent course in such cases for the bank to make inquiry of the depositor concerning his age, and, on learning of his minority, to obtain his parents' or guardian's consent to his keeping an account before opening one with him. This course would be a complete protection to the institution.

17. Accounts Of Women

The practise is rapidly growing among women to keep bank accounts, and this is to be commended. Among other advantages their checks serve as receipts for the bills paid by them. Again, it is a step in the way of forming a business habit and of becoming more independent in their business affairs. Rarely are women, except those engaged in business, borrowers, but occasionally they overdraw their accounts.