Chapter VIII - As To Banks Page 04
CERTIFICATES OF DEPOSIT
Often when a depositor is travelling, he finds it convenient to carry with him a form of paper that is as good as cash, and much better in the event of loss.
Banks will issue "certified checks" to depositors. These checks are stamped by the bank "certified" with the date and officer's signature attached.
On issuing such a check, the bank debits the receiver's account with the amount, and so can guarantee the payment whenever or wherever presented.
Such a check may be received with as much certainty of its value as if it were a bank bill.
When a person places money in a bank with no intention of checking it out for some time to come, he may have issued to him a "Certificate of deposit."
While holding this certificate he cannot check against the money in the bank.
The holder of a certificate of deposit may transfer it.
The money may be paid in part by the bank, if the certificate is presented, and the amount is endorsed on the back.
To withdraw all the money the certificate must be surrendered.
USE OF CHECKS
There is no form of commercial paper in such general use as the check.
The total of all the checks in use at some seasons is far more than the total of all the money in all the banks.
Checks are balanced in the money centers through what are known as clearing houses. In these a bank is charged with checks against it and credited with those in its favor.
The differences are settled by cash.
Often a few thousand dollars will settle check accounts amounting to millions.
If by any chance you should receive a check in which your name is misspelled, or not given as you write it, endorse the check exactly as the name is written on the face, then add your name in the regular way.