When  the  cashier  decides  to  open  an  account  with  an  appli-
cant, he  has  him  sign  his  name  in  a  "signature  book."  And
all  that  an  applicant  says  of  himself  and  all  that  can  be  found

n  Bolles  on  Practical  Banking,  p.  74.
120  THE  BUSINESS  OF  BANKING.
out  about  him  then  or  afterward  is  recorded  in  the  " dealer's
credit  book,"  already  described.
§  254.  Sources  of  Authority.  There  are  six  sources  from
which  a  cashier  may  receive  authority :

First. — From  statute  or  charter.  A  cashier  has  certain
powers  which  he  possesses  by  virtue  of  his  office.  Such  au-
thority cannot  be  abridged  by  action  of  the  directors  or  stock-
holders.
Second. — From  usage  and  the  general  course  of  banking
business.  When  he  acts  within  the  scope  of  the  general  usage,
practice  and  course  of  business  conducted  by  the  bank,  he
will  generally  bind  the  bank  in  favor  of  a  third  person  possess-
ing no  other  knowledge.0

The  ordinary  usage  and  practice  of  a  bank  must  be  sup-
posed to  result  from  regulations  by  the  board  of  directors,  to
whom  the  charter  and  by-laws  submit  the  management  of  the
bank  and  the  direction  of  its  officers.  The  cashier  and  other
officers  are  held  out  to  the  world  as  having  authority  to  act,
and  their  acts  within  the  scope  of  the  business  of  the  bank
would  bind  the  bank,  as  already  stated.  Any  other  rule  would
make  it  hazardous  for  any  one  to  deal  with  a  bank  officer.p

Third. — From  necessity  a  cashier  performs  many  acts
which  are  not  defined  by  formal  action  of  the  directors.  This
does  not  make  his  power  to  bind  the  bank  any  less.
