Bulletin HASKINS & SELLS 11
LOSSES from forgeries and alterations
it has been estimated occur in the
1. Forgery of signature, 45 per cent.
2. Forgery of endorsement, 50 per cent.
3. Alteration of instrument, 5 per cent.
There often is some question in cases of
this kind as to who shall bear the loss, the
bank or the depositor. The legal responsibility
is covered by the Negotiable Instruments
Law, which has been adopted in
substantially the same form by all our
The general rule in the case of a forged
signature of the maker of a check is that
the bank is liable. A bank must know the