State, county, city, or town. An order given by some authorized official of a municipality upon its treasurer, for payment to some person for services rendered, and which this person presents to the treasurer, who, for lack of funds on hand, is unable to meet it. The process is to take the order, or "warrant, " as it is very familiarly called, and stamp on the back of it: " Presented, but not paid from lack of funds. This warrant bears interest from this date until paid at the rate of------%." Below this is affixed the treasurer's signature.
He enters the description of this "warrant" in a book, and the stamping upon the back of the "warrant" is called the "date of registration." This "warrant" if made payable "to bearer," is negotiable, the same as any piece of money; if it is made payable "to order" it becomes negotiable only by indorsement, the same as a check. If the owner of the "warrant" after it has been stamped by the treasurer, prefers not to hold it as an investment, he will probably sell it to some local bank at some price less than its full value, and the bank, in turn, will hold it, or sell it to some investor, to be held until called for redemption. It is customary for a municipality which has " warrants" outstanding to call them for payment, from time to time, as money accumulates for that purpose, and a " call " is inserted in some local paper for " warrants" of certain numbers to be presented for payment, and a certain date is named upon which interest will cease. An investor in " warrants " must provide for some way to be notified of a "call" covering his " warrants," otherwise he may lose interest.
Also used at times in the same sense as "interim certificates," to which refer.
" Dividend warrants " are orders for the payment of dividends to shareholders. In England, however, a check for the payment of dividend is termed a "dividend warrant." An " interest warrant " is a similar order for the payment of interest on a bond or like security, and thus a check for payment of the interest on a " registered bond " may be termed an "interest warrant."