urn _the draft_ over to Blake.

To avoid the risk of being robbed, merchants and some others are in the
habit of depositing each evening in a bank the receipts of the day, with
the understanding that the money will be paid out, at any time, to any
person whom they order it paid to. The order on the bank is called a
_check_.

It is very easy to see that these three devices are of immense value to
the commercial world; the first by rendering available future resources,
and the other two by enabling payments to be made safely.

Definitions.--A _note_ is an unconditional promise in writing, to pay a
definite sum of money at a certain time to a specified person.

A _draft_ is an order, written by one person and addressed to another,
directing him to pay a definite sum of money at a certain time to a
specified third party.

A _check_ is a draft for immediate payment, drawn upon a bank or banker.

In the case of a note, the person who promises to pay is called the
_maker_ of the note; and the person named to be paid, the _payee_.

In the case of a draft or check, the person ordering the payment is called
the _drawer_; the person addressed, the _person drawn upon_ or the
_drawee_; and the person to be paid, the _payee_.

Negotiability.--The payee in any of these cases may wish to transfer the
paper to some other person. For instance, the holder of the note may wish
to use the money before it is due, or the payee of a draft may wish to
realize without going to the drawee. In either case, the desired
accommodation can be secured only by selling the paper to some one else.
This ability to be transferred is part of what is meant by the term
_negotiability_.

But this liability to have to pay another person than the one named,
cannot be imposed upon the maker or drawer without his consent. This he
gives by inserting after the name of the payee the words "or order," or
the words "or bearer." In the latter case, whoever holds the paper when it
becomes due can collect upon it. In case the former words are used, the
paper can be transferred only by _indorsement_, of which more anon.

A very important characteristic of negotiability is that it enables a
person to grant to another rights which he may not himself possess. To
illustrate: As between the maker and the payee, a note is a contract, and
is binding only if it has all the requisites of a binding contract.
Therefore, if there was no consideration, or if the note was obtai