Responsibility of Maker.-A note being a contract, the maker of one is responsible to the payee, as has been said, only if all the requisites of a binding contract are present. If the note is negotiable in form, he is responsible to the innocent purchaser of it.

Responsibility of Drawee.-The person drawn upon may know nothing of the draft. He cannot be made a party to a contract without his knowledge and consent. That he may have knowledge of the draft, it must be presented to him. If upon seeing it he is willing to assume the responsibility of paying it when due, he signifies his willingness by writing across the face of the draft the word "accepted," with the date of presentation and his name. The draft thereby becomes his unconditional promise, and he becomes the principal debtor, occupying the position of a maker of a note.

Responsibility of Indorser.-When a person endorses any commercial paper, he not only expresses thereby his consent to the transfer of it, but he also enters into a conditional contract with each person who may afterward come into possession of the paper, whereby he becomes responsible for its payment, if the principal debtor fails to meet his obligation. To fix responsibility upon an indorser, payment must be demanded of the principal debtor on the very day when the obligation matures, and if payment is not made notice of the fact must be sent to the indorser before the end of the following day.

Responsibility of Drawer.-Between the drawer and the payee a draft is a conditional contract, whereby the former impliedly agrees to pay the draft if the person drawn upon does not. His obligation is that of a surety or first indorser. To fix responsibility upon the drawer, the holder of the draft must promptly pre

sent it for acceptance to the person drawn upon; then, if it is not accepted, he must immediately notify the drawer.

Forged Paper.-Forgery is the fraudulent making or altering of a written instrument. One whose name is forged cannot be made responsible, since the act is not his. And since money paid under a mistake must be refunded, a person who, deceived by the skill of the forger, should pay the seeming obligation, would be entitled to get his money back.

But every person i bound to use reasonable effort to prevent forgery. Thus, if a merchant writes out a note all but the amount, and authorizes a clerk to put that in at some other time, and the clerk inserts a larger sum, any innocent purchaser can compel the merchant to pay the full amount. In some states it is held that a person who leaves space in an obligation wherein the amount can readily be raised, is bound to stand the loss caused. by his negligence.

Accommodation Paper.-A man may be perfectly willing to lend a friend some money and yet be unable to do so. He may, however, in any one of several ways, make it possible for his friend to obtain the money. Thus A, wishing to accommodate his friend B, may make a note payable to B's order; or he may endorse B's note; or he may make a draft payable to B's order; or he may accept B's draft on him. By selling the paper, B secures the money desired. The implied contract between A and B is that B will pay the obligation.

In none of these cases could B compel A to pay him any money, because the contract between them lacks consideration. But A would be responsible to an innocent purchaser, because there is nothing on the face of the paper to indicate the defect. And he would be

responsible even t a purchaser who knows the paper to be accommodation, because by signing he binds himself to pay if B does not, and his signature is what enables the sale to be made.

Certified Checks.-Business men make most of their payments by check. If the receiver of a check does not, for any reason, wish the money, he may deposit the check in the bank as if it were cash. If he is going away from home, or if he wishes to make a payment in some other place, he may save the expense of a draft, and make a check equally as acceptable, by getting the cashier of the bank to "certify" it, that is to state officially that the drawer has the money in the bank. This he does by writing across the face of the draft the word "Good," with his signature as cashier. When this is done the responsibility rests primarily on the bank. It occupies the position of the acceptor of a draft.

Pertinent Questions.

Two of the following are valid notes; which two? The others are not; Why? 1. March 5, 1890, I promise to pay John Smith one hundred dollars, if he is then living.-William Jones. 2. On or before March 5, 1890, I promise to pay John Smith one hundred bushels of wheat.-William Jones. 3. On March 5, 1890, I promise to pay John Smith whatever is then due him.William Jones. 4. When he comes of age, I promise to pay John Smith one hundred dollars.-William Jones. 5. March 5, 1890, I promise to pay one hundred dollars.-William Jones. 6. One year after date, I promise to pay to John Smith one hundred dollars.-Wil.iam Jones. 7. Mankato, Minn., December 11, 1888. One year after date I promise to pay John Smith one hundred dollars. 8. On the death of his father, I promise to pay John Smith one hundred dollars.-William Jones. 9. On March 5, 18.0, I, William Jones, promise to pay John Smith one hundred dollars.

How many parties may there be to a note? How many, at least, must there be? As between them, must there be consideration to make it binding? Must the words "for value received" appear on the note? A note being a contract, what things are necessary to make it binding? Write two valid notes in different forms. Write a negotiable note transferable

without indorsement. A note transferable by indorsement. Which is safer to carry in the pocket? Why? Which imposes the less responsibility if transferred? If you were taking a note payable to bearer, would you require the person from whom you were getting it to indorse it? A man has some nonnegotiable notes; if he dies can his heir collect them? A note payable "to order" is indorsed in blank; to whom is it payable? May a note payable "to bearer" be made payable only "to forder?" When does a note cease to be negotiable? Under what circumstances may a person have to pay a note which he has already paid? What is a "greenback?

How many persons, at least, must there be to an accepted draft? When does the responsibility of the drawer begin? That of the person drawn upon? How does the acceptance of a draft effect the responsibility of the drawer? If the draft is not accepted, to whom shall the holder look for pay? Are drafts negotiable before acceptance?

Compare and contrast a note and a draft. A draft and a check. Is the bank under any obligation to the holder of an uncertified check? Does certifying a check release the drawer of it? Are checks negotiable?

What responsibility does an indorser assume in case of a note? Of an unaccepted draft? Of an accepted draft? Of a check? What does "without recourse" mean? To how many persons is the maker of a note responsible? The first indorser? The second? How can the first indorser be distinguished from the second? To whom is the second indorser not responsible?

Who are not responsible to the holder of a negotiable paper unless notified? Who are responsible without notice? What principle do you discover? When is a demand note due? A check? A time note? A sight draft? A time draft?

What should you do, and why, in the following cases:

1. When you pay a note? 2. When you make a partial payment on a note? 3. If you should lose a note? 4. If you have a note without indorsers, to render the maker responsible? 5. If you hold a note having indorsers, to render the indorsers responsible? 6. If you hold an unaccepted draft? 7. In case acceptance is refused? 8. If you hold an accepted draft? 9. If the acceptor fails to pay when the paper becomes due? 10. If you hold an uncertified check, in order to render the drawer responsible? 11. If it is indorsed, to make the indorsers responsible? 12. If you have a certified check, to make the bank responsible? 13. If you are a third indorser of a note, whom can you hold responsible in case the paper is dishonored, and how? 14. If you have a bearer note and you wish to transfer it without assuming responsibility? 15. How if it is

an order note?

APPENDIX.

A. FORMS.

TOWN BUSINESS.

I. Organization of a Town.

PETITION.

To the board of county commissioners of the county of

.:

The undersigned, a majority of the legal voters of congressional township number north, of range number west, in said county, containing not less than twenty-five legal voters, hereby petition your honorable board to be organized as a new town under the township organization law, and respectfully ask that you forthwith proceed to fix and determine the boundaries of such new town and to name the same (giving the proposed name.)

(Dated, and signed by a majority of all the legal voters in the town.)

State of

COMMISSIONERS' REPORT.

, county of

SS.

Upon receiving a petition of a majority of all the legal voters of congresional township number north, of range number west. in said county, asking that the same be organized as a new town under the township organization law, to be named commissioners of said county did, on the proceed to fix the boundaries of such new town and name the same in accordance with the said petition, and designated

day of

, we, the county A. D. 18 "

as

the place for holding the first town meeting in such town, to be held on 18 The boundaries of said town of

as fixed and

established by us, are as follows: (Beginning at the southeast corner of section north, of range west, thence west on the to the southwest corner of section town and

town

township line range as aforesaid, thence north, &c., giving the boundary lines com18

plete.) Given under our hands this

[Auditor's official seal.]

Attest: O. J., County Auditor.