A note must:

1. Be signed by the person who promises to pay, i.e. the maker or drawer.

2. Tell by name the person or party to whom the note is to be paid, i.e. the payee.

3. Tell the date when the note is made and the place where made.

4. Tell the time of payment.

5. Tell the place of payment.

6. Tell the rate of interest, if interest is to be collected.

361. When a note becomes due, it is said to have matured. The date when it is due is the date of maturity.

A note that contains the words "to bearer” may be sold or transferred by delivery, and may be collected by any person who may hold it at the date of maturity.

A note that is drawn payable "to order" cannot be sold or transferred unless its payment to another person is ordered in writing by the payee. To do this the payee writes his order on the back and signs his name. This is called indorsing the note.

Wesley Wood
Samuel Coates
Pay to the order of

Milwaukee Wis., Mar. 30, 1909. after date I promise to pay to the

Wesley Wood

re thousand Dollars
interest at 6%.

Thomas Peters

AN INDORSED NOTE

This note has been indorsed by the payee, Wesley Wood,

ordering its payment to Samuel Coates.

The maker of a note may arrange with the payee to make partial payments on the face of the note from time to time. A record of these partial payments is made or indorsed on the back of the note showing the date and amount

of each payment.

Recd.

on

note $25.00 Aug. 2, 1908 Fred C. Rowe

the within

Fremont, Ohio, June 127908.
_after date I promise to pay to

Red C. Rowe

ank of Fremont

Dec., 12, 1908 C. F. Smith

PAYMENT INDORSED ON NOTE

This note shows the form of indorsement for a partial payment on the face of the note.

362. A draft is a written order or request by one party to a second party for the payment of a specified sum of money to a third party at a specified time.

Oshkosh, Wisc.

A SIGHT DRAFT

The person who signs his name to a.draft is the drawer, e.g. Parker P. Lane as above. The person who is to pay the draft

is the drawee, e.g. Charles Johnson. The person to whom the draft is to be paid is the payee, e.g. Mechanics Trust Co. of New Britain.

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Business men employ drafts, as on p. 255, very commonly for collecting accounts. The draft (p. 255) drawn by Parker P. Lane on Charles Johnson for the amount of a bill due of one hundred and forty-five dollars, is taken by Mr. Lane to the Mechanics Trust Co. By the Mechanics Trust Co. it is indorsed and sent to some bank in Oshkosh, Wisconsin, for collection. Upon receipt of the draft the Oshkosh bank takes it to Mr. Johnson to see if he is willing to pay it. If not willing, he refuses to accept the draft. If willing, he writes across its face the word Accepted," and the date and where he will pay it, and signs his name as in the form given.

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363. Banks are institutions authorized by law for the following purposes:

(1) To provide places for the safe-keeping of money.

(2) To aid business by means of loans on safe security. (3) To make collections on commercial paper easier and safer. (4) To facilitate domestic and foreign exchange.

A national bank is authorized by law:

(1) To issue its notes (called bank notes) to an amount equal in value to the par value of the United States bonds which it has purchased.

(2) To receive money on deposit.

(3) To loan money on discount notes.

(4) To furnish exchange.

A savings bank is a bank that is organized for the following purposes:

(1) To receive money on deposit, even in small sums.

(2) To return the money to depositors on due notes with a moderate rate of interest.

(3) To loan money on certain classes of securities authorized by law, e.g. real estate, municipal bonds, etc.

A trust company in addition to executing such trusts as making and caring for investments performs many of the functions of banks.

DEPOSITS

364. Each time a deposit is made the depositor hands in a statement of the deposits made out on a deposit slip, and the amount is entered to the depositor's credit in a small book which he brings with him, called a bank book.

On the credit side of the bank book the whole amount of money withdrawn is entered, the list of separate checks being kept on a separate slip.

Withdrawals

365. Whenever the depositor wishes to draw money from a national bank, he fills out a blank order for the payment of money called a check. This blank he usually tears out from a book of blank checks. It will be seen from the following form that a check is a written order on a bank for the payment of a certain amount of money to some person named on the check, or to his order, and is signed by a depositor.