er's discounting bills with his banker was to feed the current
account, and that a possible liability constituted no set-off against an
existing debt. Whether a particular bill has been taken for discount or
collection is a question of fact. As in the payment of bills, so in the
collection of them, there is no statutory protection whatever for the
banker; as against third parties he can only rely either on the customer's
title or his own as a holder for value, if no forged endorsement intervene
and he can establish a consideration.

[Sidenote: Deposit accounts.]

A deposit account, whether at call or on fixed notice, does not constitute
any fiduciary relation between the depositor and the banker, but merely a
debt due from the latter to the former. It has been suggested that cheques
can be drawn against deposit account on call, and, though a banker might
safely honour such a cheque, relying, if necessary, on his right of lien or
set-off, there appears no legal right in the customer to enforce such
payment. Deposit receipts given by bankers are exempt from stamp duty, even
though they contain an undertaking with respect to payment of principal and
interest. They are clearly not negotiable instruments, but it is difficult
to deduce from the cases how far dealings with them may amount to an
equitable assignment of the moneys they represent. Probably deliberate
definite transfer, coupled with endorsement, would confer an effective
title to such moneys. Where, as is not uncommon, the form of deposit note
includes a cheque, the banker could not refuse to pay were the cheque
presented and any superadded formalities complied with.

[Sidenote: Overdrafts and advances.]

There is no obligation on a banker to permit his customer to overdraw,
apart from agreement express or implied from course of business. Drawing a
cheque or accepting a bill payable at the banker's which there are not
funds meet is an implied request for an overdraft, which the banker may or
may not comply with. Interest is clearly chargeable on overdrafts whether
stipulated for or not. There is no direct authority establishing this right
in the banker, and interest is not usually recoverable on mere debts, but
the charge is justifiable on the ground of the universal custom of bankers,
if not otherwise. The charging of compound interest or interest with
periodical rests has been supported where such system of keeping the
accounts has been brought to the notice o