payment to the
indorser. For, as the contract requires the maker to pay at maturity,
the indorser may presume, unless he has received a notice to the
contrary, that the maker has paid the obligation.

Ordinarily a notice of an indorsement by a partnership need not be
sent to each member. Even after the partnership has been dissolved a
notice to one partner is sufficient to bind the other members. If the
note is owned jointly (that is, by parties who are not business
partners) the indorsers are not liable as partners but as individuals.
In such a case the notice of non-payment should be sent to each.

Our illustration shows a facsimile of a protest notice.

XIV. PAPER OFFERED FOR DISCOUNT

One of the most valuable parts of a banker's education is to learn
whom to trust. Every bank should have a well-organised and thoroughly
equipped credit department, in charge of some one who can be relied
upon to investigate carefully all names referred to him by the
officers. A banker has the right to expect the fullest confidence on
the part of the borrower, and the borrower should furnish him with a
complete and detailed statement of the condition of his affairs. It is
safe to conclude that when a borrower refuses absolutely to give any
information as to his financial condition his credit is not in the
most favourable shape.

Many of the banks have blank forms which they, from time to time, ask
borrowers to fill out. These statements show in detail the assets and
liabilities of the firm in question; they show the notes which are
outstanding, the mortgages on real estate, and many other particulars,
including the personal or individual credit of members of the firm, if
a partnership.

In estimating the value of paper offered for discount the following
points should be considered:

1. The total net worth of the borrower.

2. The character of his business; whether it is speculative or staple.

3. The borrower's record and standing in the community and his
business habits.

4. Whether he is in enterprise abreast with modern ideas and methods.

5. The character of the merchandise owned by the borrower. What would
it bring under the hammer? Groceries and raw material can usually be
turned into cash at a forced sale at very small discount from current
prices. Not so with hardware, glass, dry goods, boots and shoes,
books, etc. Machinery and fixtures are not a bankable asset upon
which to base credit.

Th