The Probert Encyclopaedia of Money

CHEQUE

A cheque, (formerly also known as a check) is a draft or bill on a bank payable on presentation. A cheque may be drawn payable to the bearer, or to the order of someone named: the first form is transferable without endorsation, and payable to any one who presents it; the second must be endorsed, that is the person in whose favour it is drawn must write his name on the back of it. Cheques are a very important species of mercantile currency wherever there is a well-organized system of banking. The regular use of them for all payments, except of small amounts, make the transfer of funds a mere matter of cross-entries and transferring of balances among bankers, and tends greatly to economize the use of the precious metals as a currency. What is called a 'crossed cheque' has two lines drawn across it transversely, with or without the words '& Co.' between. A cheque thus marked can only be paid by the banker on whom it is drawn when presented by some other banker, and the person to whom it is sent can consequently only obtain payment of it through his own bankers.
Research Cheque