In process of time the thing was simplified. In place of the letter came the shortened form, the cheque, and you wrote: “Pay £20 to John Jones or order,” and John Jones, instead of sending a letter signed by himself, merely put his signature at the back of the cheque. This was called “endorsement,” which is a Latin form of the English meaning “putting one’s name on the back of anything.” A cheque “endorsed” with the name “John Jones,” that is, with John Jones’s name signed on the back of it, was paid by the bank to whomever John Jones might send to receive the payment. My cheque asking for £20 to be paid to John Jones having fulfilled its object, and the £20 being paid to whomever John Jones had sent after he had “endorsed” that cheque, the cheque was said to have been “honoured” by the bank. The word “honoured” meant that the bank had admitted that I had the money banked with them, and that they were bound to hand it over on seeing my signature asking that it should be handed over. The convenience of cheques used in this way for business was obvious. If I owed a man £20 and I had £1,000 with my banker, instead of having to draw out twenty sovereigns myself and take them to him, all I had to do was to write out a cheque to the order of this man, who would endorse it and get the money. Now as banking grew and came to deal with more and more people, it was probable that this man, Jones, would have a banking account too with somebody. If Mr. Smith was not his banker, then Mr. Brown would be. As we have seen, people not only drew out money from the original sum they had deposited at the bank, they also paid in money as they got it, on account of the convenience of having it looked after safely. So when John Jones got my cheque for £20, he often did not get the actual cash from my banker, Mr. Smith, but simply gave in the cheque, endorsed by him, to Mr. Brown, _his_ banker, and said: “Get this from Mr. Smith, the other banker, and add it to the sum which I have banked with you, Mr. Brown.” The banker Brown did this, and the cheque which I had originally signed in favour of John Jones, having gone the rounds, was sent back to me to prove that the transaction was complete. As banking continued to grow this system took on a vast extension. Thousands and thousands of people paid, and were paid, by cheques, of which only a small part were turned into cash, and of which much the greater part were paid into the bankers’ offices and then settled by the bankers among themselves. After many years of this system it became apparent that the enormous transactions, thousands of cheques all crossing each other daily in hundreds of ways, could be simplified by the establishment of what came to be called the “Clearing House.”