“Effects not cleared.” Here the client, assumably, has enough money to meet the cheque, but the banker has not yet cleared or realized the documents he has paid in, and the drawer’s credit is so poor that he will not honour his cheque until this has been done. A cheque thus marked is usually re-presented, but, obviously, the drawer is weak. “N/S” (not sufficient). We gather from this that the drawer has some money standing to his credit, though not enough to meet the cheque. “Words and figures differ” does not require an explanation, though, perhaps, it may be remembered that weak drawers have a trick of making mistakes in order to gain time. “Payment stopped,” “Post-dated,” “Incomplete,” “Another signature required,” “Indorsement irregular,” and other answers that might be given, are self-explanatory. Cheques returned for these reasons naturally do not reflect any discredit upon the drawers. Of course, a person with an open, charitable mind is free to make his own deductions. Occasionally a banker returns a customer’s cheque when he is in funds. Such a mistake generally occurs through a credit having been posted to the wrong account, and as often as not the two customers are blessed with the same surname, though not with an equal amount of this world’s goods. Brown, for instance, is not an uncommon name, so we will assume that a credit of poor Brown’s has been posted to rich Brown’s account by mistake, and that the banker returns the former’s cheque for £50 marked “refer to drawer.” Now poor Mr. Brown has a good case against his banker, and should at once consult his solicitor, who will see that he gets compensation for the damage done to his credit. Most bank-directors, who are modest, retiring gentlemen, prefer to settle such a case privately, as it is not thought desirable to advertise the fact that a mistake of this nature, with their perfect system of book-keeping, is possible. Drawer too Ill to Sign. In the above instance the customer makes his mark, which is usually witnessed by his doctor. Sometimes he authorizes a person to draw cheques upon his account up to a certain sum, and cancels the authority upon his recovery. Backing a Cheque for a Friend. The man who backs a cheque in order to oblige a friend should remember that he makes himself responsible for its payment, and that should his friend have no money to meet it, he, the indorser, will be called upon to make good the loss. He does not merely vouch for the respectability of his friend, but he also guarantees that his cheque will be duly honoured upon presentation, which is quite another matter. One should, therefore, decline to back a cheque for a stranger upon any consideration. CHAPTER IV CREDIT-ACCOUNT CUSTOMERS