Democratic Sentinel, Volume 19, Number 30, Rensselaer, Jasper County, 2 August 1895 — A Bank's Discretion on Checks. [ARTICLE]

A Bank's Discretion on Checks.

The Delaware County National Bank of Media, Penn., was the defendant Monday in an action brought by M. J. Erisman to recover the amount of a four-hundred-dollar check. Aaron Tyson gave the check to Erisman with the understanding that lie was not to send it to the bank for collection until a certain date. The check came to the bank on the day designated. Tyson deposited $1,200 about the same hour. Three hours after notice of a draft for $l,lOO against Tyson was received, and was paid from the $1,200 to his credit in the bank. The check went to protest, and a few days afterward Tyson failed. Erisman then brought suit against the bank, on the ground that bis check should have had precedence over the draft. Judge Clayton, however, charged the jury that the bank authorities could use their own discretion in the day’s round of business as to what paper to honor when there was not sufficient money in the bank to the creditof the person against whom the papers were drawn to pay all. The verdict was for the bank.—Philadelphia Record.