Question 185. - What does the following stamp signify to the bank on whom a cheque is drawn when placed on local cheques, as regards former endorsements?

For Deposit Only.

Through....................Clearing House Feb. 19th, 1896. To the credit of the Bank..................

pro Manager.

Answer. - As to the effect of the common form of stamped endorsements of banks on cheques passed through the clearing house, the reply to Question 134 covers all that we could say. Under the law, "as understood here, the presentation by any bank of an item for payment by the bank on which it is drawn involves an implied representation that it has the right to collect the amount, and if any of the prior endorsements should prove to be forged or unauthorized, so that as a matter of fact it had not the right to receive the amount, it would be bound to pay it back.