THE PRACTICE OF BANKING HUTCHISON A 596732 VOL II. HG 1741 H97 HENRY SOTHER 136 FRAN & CO Strand ·W.C. ARTES LIBRARY 1837 SCIENTIA VERITAS OF THE UNIVERSITY OF MICHIGAN E-PLURIBUS UNUM LEBOR SI-QUAERIS-PENINSULAM AMOENAM CIRCUMSPICE 1 $ 1 t ५ 1 2 5 2 0 THE PRACTICE OF BANKING EMBRACING THE CASES AT LAW AND IN EQUITY BEARING UPON ALL BRANCHES OF THE SUBJECT BY JOHN HUTCHISON. VOL. II. London: EFFINGHAM WILSON, ROYAL EXCHANGE. Warrington: PERCIVAL PEARSE, 8, SANKEY STREET. JUNE, 1883. [ALL RIGHTS RESERVED.] t 1 em lep 11-14-27 Reclass } W PREFACE. FROM the very great success which has attended the first volume, and the numerous commendatory letters received from Bankers in all parts of the United Kingdom, the author has derived much encouragement in the prosecution of his labours, and he hopes that this, his second volume, will be received with a like degree of favour by the profession, and prove equally serviceable in daily practice. For the favourable opinions of the press he has also to express his acknowledgments, as well as the special obligation he is under to THE LAW TIMES, THE SOLICITORS' JOURNAL, and THE ECONOMIST, for their kindness in pointing out one or two omissions or oversights, affecting, however, on the whole, more the law than the bank student, and which have been duly noted in the present volume. During the progress of so comprehensive a work, it is inevitable that many changes both in law and practice should occur, and liability to error in an exposition of the law is greatly increased by the contradictory deci- sions often given by the Courts, and the numerous reversals of judgments that take place; many } 2 iv. PREFACE. of the present judges not sharing the immunity enjoyed by Lord Mansfield, who, it is stated, held the scales of justice with such nicety that only two of his judgments were ever reversed. With reference to the incidental remark made by the author in the preface to the first volume, page x., in connection with Law and Equity, he is glad to have the support of so influential an authority as THE SOLICITORS' JOURNAL, which, in its impression of 26th November, 1881, says that "the dual system of Common Law and Equity does practically, to a large extent and for many purposes, continue to exist, and must for long do so, and nobody seems very clear whether it is, or ought ever to be, entirely done away with, but tentative efforts are made in the direction of fusion, the scope of which is probably not very clear even to the authorities who make them." In the present volume the author has dealt very copiously with the subject of Inspection, giving every information on that and other matters directly and indirectly connected with it, which should be known to the various Inspectors of a large bank, and which should prove serviceable to them in the course of their multifarious duties. In his inspection letters the author has taken a wide range from the minutest to the most important subjects, and has through them brought into prominence the special wants and defects of some of the private and smaller joint stock banks. The letter, too, referable to securities may be considered in a measure introductory to the law of and practice with securities, the treatment of which, from the unexpected dimensions attained by PREFACE. V. this volume, necessitated chiefly by the recent changes in the law affecting Married Women and their property, and the codification of the law of Bills of Exchange, the author has been obliged to defer to the third volume, and which will there be appropriately associated with its main, and what was intended to be its exclusive subject, that of Precedents. In the addenda, he has, it will be ob- served, added largely to the various topics discussed in the first volume, bringing the law down to the most recent date. On the subject of new Acts, it may not be unworthy of note that the Session of 1882 will, notwithstanding the regret of Mr. Gladstone that it had proved so unproductive, be rendered memorable for the number of its highly important measures.* Besides those already alluded to, the Married Women's Property Act, 45 and 46 Vict., c. 75, and the Bills of Exchange Act, 45 and 46 Vict., c. 61, there have been passed, in addition to the Irish measures, the discussions in connection with which necessitated an autumn sitting, the Settled Land Act, or Act for facilitating Sales, Leases, and other dispositions of Settled Land, and for promoting the execution of Improvements thereon, 45 and 46 Vict., c. 38; the Act for further improving the practice of Conveyancing and for * It may be interesting to note that on the occasion of completing the fiftieth year of his parliamentary life, the Athenians have taken the opportunity of voting a statue to Mr. Gladstone, and the following appropriate inscription for it has been suggested by a correspondent of THE ATHENÆUM, the lines, which as it is justly said can be used with equal sincerity by friends and foes, being taken from the "Punica," of Silius Italicus :--- "Ille super Gangem, super exauditus et Indos, Implebit terras voce, et furialia bella Fulmine compescet linguæ, nec deinde relinquet Par decus eloquio cuiquam sperare nepotum. + * * } ' i vi. PREFACE, other purposes, 45 and 46 Vict., c. 39; the Act to amend the Bills of Sale Act, 1878, 45 and 46 Vict., c. 43; the Inferior Courts Judgments Extension Act, or an Act to render judgments obtained in certain inferior courts in England, Scotland, and Ireland respectively, effectual in any other part of the United Kingdom, 45 and 46 Vict., c. 31; the Act to amend the law relating to costs and salaries in County Courts, 45 and 46 Vict., c. 57; the Municipal Corporations Act, 45 and 46 Vict., c. 50, being a consolidation with amendments of thirty- seven prior statutes from the time of the passing of the Municipal Corporations Act, 1835, 5 and 6 William IV., c. 76; the Revenue, Friendly Societies, and National Debt Act, 45 and 46 Vict., c. 72; the Act to extend the Acts relating to the purchase of small Government Annuities, and to assuring pay- ments of money on death, 45 and 46 Vict., c. 51; the Act to amend the Post-office Acts with respect to the conveyance of Parcels, 45 and 46 Vict., c. 74; besides, amongst other Acts not within the scope of the present work, the consolidating and amending Corn Returns Act, 45 and 46 Vict., c. 37; the Electric Lighting Act, 45 and 46 Vict., c. 56; and last, though not least, Sir John Lubbock's Ancient Monuments Act, 45 and 46 Vict., c. 73. * Of the Inferior Courts Judgments Extension Act, it may be proper to mention that its principal provisions are :- "3. REGISTRAR OF INFERIOR COURT TO GRANT CERTIFICATE OF JUDGMENT. Where judgment shall hereafter be obtained or entered up in any of the inferior courts of England, Scotland, or Ireland respectively, for any debt, damages, or costs, the registrar of such inferior court or other proper officer shall, after the time for appealing against such judgment shall have elapsed, and in the event of such judgment not being reversed upon appeal, or of execution thereunder not being stayed, upon the application of the party 5 PREFACE. vii. The consolidation of the three Common Law Divisions, to which allusion was made in Volume I., appears to have so far worked satisfactorily. By the Supreme Court of Judicature Act, 1881, 44 and 45 Vict., c. 68, the office of Master of the Rolls has who has recovered such judgment, and upon proof that the same has not been satisfied, and payment of the prescribed fee, grant a certificate in the form in the schedule to this Act annexed. "4. REGISTRATION OF CERTIFICATE SHALL HAVE THE EFFECT OF A JUDGMENT OF THE COURT IN WHICH IT IS REGISTERED.- On the pro- duction to the registrar or other proper officer of a County Court, or, in the city of London, of the City of London Court, in England, where a judgment has been obtained in Scotland or Ireland, or to the registrar or other proper officer of a Sheriff's Court in Scotland where a judgment has been obtained in England or Ireland, or to the registrar or other proper officer of a Civil Bill Court in Ireland where a judgment has been obtained in England or Scotland of a certificate under this Act purporting to be signed by the registrar or other proper officer of the inferior court where such judgment was obtained, such certificate shall, on payment of the prescribed fee, be registered in the prescribed form, by such registrar or other proper officer to whom the same shall be produced for that purpose; and all reasonable costs and charges attendant upon the obtaining and registering such certificate shall be added to and recovered in like manner as if the same were part of the original judgment. No certificate of any such judgment shall be registered as aforesaid in any inferior court in the United Kindom more than twelve months after the date of such judgment. "5. 5. EXECUTION OF JUDGMENTS.-Where a certificate of a judgment of any of the inferior courts aforesaid has been registered under this Act, process of execution may issue thereon out of the court in which the same shall have been so registered against any goods or chattels of the person against whom such judgment shall have been obtained, which are within the jurisdiction of such last-mentioned court, in the same or the like manner as if the judgment to be executed had been obtained in the court in which such certificate shall be so registered as aforesaid." By s. 6 the jurisdiction over registered judgments is limited to execution. By s. 7, on proof of the setting aside of any judgment, the registration may be cancelled. By ss. 8 and 9 costs are not to be allowed in actions on judgments unless by order of the court; and the existing limits of local jurisdiction are not to be exceeded. And by s. 10, the Act is not to apply, unless the whole cause of action shall have arisen and the summons been personally served within the district of the inferior court where the action was commenced. By the interpretation clause, the expression "Inferior Courts " includes County Courts, Civil Bill Courts, and all Courts in England and Ireland having jurisdiction to hear and determine civil causes, other than the High Courts of Justice; and in Ireland, Courts of Petty Sessions and the Court of Bankruptcy; and in Scotland the Sheriff's Courts and the Courts held under the Small Debts and Debts Recovery Acts. The form of the Certificate annexed to the Act, is as follows :- Certificate issued in terms of the Inferior Courts Judgments Extension Act, 1882. I............, certify that (here state name, business, or occupation, and address of person obtaining judgment, and whether Plaintiff or Defendant) on the day of............18..., obtained judgment against (here state name, business, or occupation, and address of person against whom judgment was obtained, and 1 * " viii. PREFACE. been transferred from the Chancery Division to the Court of Appeal, the place of that Judge being supplied by the appointment of another Judge of the High Court; and the President of the Probate, Divorce, and Admiralty Division becomes, by the same Act, an ex officio Judge of the Court of Appeal. The existing Divisional Courts are now the Chancery Division, consisting of five puisne Judges, with the Lord Chancellor as President; the Queen's Bench Division, consisting of fourteen puisne Judges, with the Lord Chief Justice of England as President; and the Probate, Divorce, and Admiralty Division, consisting of two puisne Judges, the senior of whom presides. The Court of Appeal is composed of the three Presidents of the Divisional Courts as its ex officio members, and of five Lords Justices of Appeal-the Master of the Rolls being President—as its permanent members.* By the Judicial Committee Act, 1881, 44 and 45 whether Plaintiff or Defendant) in the Court of for payment of the sum of on account of (here state shortly the nature of the claim, with the amount of costs (if any), for which judgment was obtained.) (To be signed by the Registrar or other proper Officer of the Inferior Court from which the certificate issues, and to be sealed with the Seal of the Court.) Note of Presentation to be appended to above Form. The above certificate is presented by me for registration in the.... Court of in accordance with the provisions of the Inferior Courts Judgments Extension Act, 1882. ... , (Signature and address of Solicitor, Law Agent, or Creditor presenting for Registration.) * By the LAW JOURNAL it is stated that although the names of the courts at the Royal Courts of Justice have not yet been placed on the courts themselves, the mode of identifying them has been determined. Of the 19 courts two will be appropriated to the Court of Appeal, under the names Appeal Court I," and "Appeal Court II." One will be called "the Lord Chief Justice of England's Court," in which Lord Coleridge will sit. Nine courts will be called "Queen's Bench Court I., "Queen's Bench Court II.," and so on. Four will be called Chancery Courts, and similarly numbered. Two will be called "Probate, Divorce, and Admiralty Courts I and II." The remaining court will be called "the Lord Chancellor's Court," in which, at present, Mr. Justice Pearson will sit. " ' PREFACE. ix. Vict., c. 3, it is enacted that "Every person holding or who has held in England the office of a Lord Justice of Appeal shall, if a member of Her Majesty's Privy Council in England, be a member of the Judicial Committee of the Privy Council." It may be added that the office of Vice-Chancellor, instituted about seventy years ago, is not likely to survive much longer, there now, in consequence of the recent retirement of Sir Charles Hall, being only one Vice-Chancellor left-Sir James Bacon. Out of the eighteen Vice-Chancellors who have been appointed, six became Lords Justices of Appeal, two, Lord Cranworth and Lord Hatherly, Lord Chancellors of England; and one, Sir Anthony Hart, Lord Chancellor of Ireland. Now that the old Law Courts at Westminster, destined to be demolished, have been superseded by the Royal Courts of Justice-the various courts and offices relating to the law being now brought under one roof and that a Rule Committee of the Judges has been formed for the purpose of framing Rules of Procedure, it is to be hoped that proceedings before the Courts will be simplified, shortened, and rendered less costly; and that in harmony with their new title, Justice will be the predominating feature, that, in short, "more justice and less law" will in future happily prevail. JOHN HUTCHISON. 5, EAST BRIGHTON CRESCENT, PORTOBELLO, MID-LOTHIAN, 27TH DECEMBER, 1882. 1 { J GENERAL CONTENTS. ... PREFACE ... STATUTES CITED CASES CITED ... PART I. : PAGE iii. to xvii. ix. xix. xxi.,, xxvi. "" J 垫 ​- INSPECTION THE INSPECTOR-GENERAL AND OTHER CHIEF OFFICERS ... INSPECTION REPORT I. GENERAL BUSINESS II. ADVANCES "" "" III. SECURITIES "" "" I to 210 I, 2, 160 1 3 to 26 33 PROCEDURE AT GENERAL INSPECTION- ACCOUNTS AND SECURITIES PROCEDURE AT GENERAL INSPECTION- 1 Books INSPECTION LETTER-GENERAL BUSINESS... "" "" SECURITIES ... SUB-BRANCHES ARRANGEMENT OF BRANCH DUTIES "" AT HEAD BANK STATEMENTS FROM THE BRANCHES... RATING OF THE ACCOUNTS ... RATING BILLS INTEREST : 27 " 34" 35 36,, 97 97,, 109 IIO " 139 139,, 154 155 155,, 159 160 " 167 167 "" 170, 170 171 171,, 172 172,, 193 } COMMISSION DIRECTORS BRANCH OFFICERS AND OFFICERS GENERALLY JUNIORS FINAL MATTERS IN CONNECTION INSPECTION ... WITH 193,, 196 196 203 وو 203,, 207 207,, 209 209 210 "" เ xii. GENERAL CONTENTS. PART II. ORDINARY BANK DOCUMENTS CREDITS DEBITS DRAFTS NOTES : DEPOSIT RECEIPTS : : : INDEMNITY ON LOSS OF INSTRUMENTS FORMS IN CONNECTION WITH BILLS RETURNING UNPAID CHEQUES REMITTING FORWARDING FOR ACCEPTANCE ACKNOWLEDGING DEBITING AND CREDITING PAYING OVER ADVISING OWNING SUBSCRIPTIONS APPLYING FOr Signatures MEMORANDUM POST CARDS ... : : : : : : : : : : LETTER AND LISTS TO LONDON AGENTS &C. FROM "" "" "" ACCOUNT FORMS STATUS INQUIRIES PAGE. 211 to 254. 211 216 216 220 "" 220 99 230 230,, 232 232, 233 233, 234 235,, 236 236 " 237 237,, 240 240, 241 241,, 242 242 242, 243 243,, 245 245 1 245 246 : 246 ... 246 ", 249 249, 251 251,, 252 252,, 253 PART III. BRANCH RETURN FORMS 254,, 312 GENERAL BALANCE STATEMENT... 312,, 313 ANNUAL RETURN FOR COMMISSIONERS OF INLAND REVENUE 314,, 316 ANNUAL RETURN FOR REGISTRAR OF JOINT STOCK COMPANIES 316, 319 HALF-YEARLY STATEMENT BY LIMITED BANKING COMPANY 320,, 321 1 ધ GENERAL CONTENTS. PART IV. { 1 PAGE. xiii. BANK OF ENGLAND, AND ITS WEEKLY RETURN, &c. THE NOTE ISSUES ... ... BANK OF SCOTLAND BANK OF IRELAND CHARTERED COLONIAL BANKS :- : ... 323 to 348 348 ", 352 352,, 355 355,, 357 · 357, 358, 691 PART V. BANK OF ENGLAND RATES... GENERAL OBSERVATIONS : TABLE OF BANK OF ENGLAND MINIMUM RATES OF DISCOUNT FROM 1694 TO 1883 PART VI. 359 to 366 359 " 361 362 "366 TRANSACTIONS IN THE FUNDS, &c. 367, 378 STAMP DUTIES ... 379 to 396, 691, 692, 714 PART VII. THE STOCK EXCHANGE AND ITS PROCE- DURE THE OPEN STOCK EXCHANGE COMPANY, &C. TABLE FOR INVESTORS 397 to 448, 692, 693 448 to 449 ... 449, 451 PART VIII. BANK BOOK EVIDENCE 453 to 463, 693 453 to 459 THE ACTS OF 1876 AND 1879 CONSIDERED.. MODERN STATUTES AND BANK LEGISLATION APPROPRIATION OF PAYMENTS GENERAL RULE, &C. SPECIFIC APPROPRIATION 459 " 463 ( 463 469 463 ... 466 رو 465 469 " 1 1 4 } xiv. GENERAL CONTENTS. PART IX. ATTACHMENT OF FUNDS RULES OF COURT PAGE. 471 to 501 ... 471, 474 ATTACHABLE AND NON-ATTACHABLE FUNDS, &C. FOREIGN ATTACHMENT, CUSTOM OF LORD MAYOR'S COURT ... PRACTICE OF HIGH COURT OF JUSTICE CORPORATION AGGREGATE, &C. ... ... : 474, 483 484 490 "" 490 490, 501 MONEY PART X. ... 503,, 557 PRIMITIVE MONEY, AND ENGLISH COINAGE FROM THE EARLIEST PERIOD ΤΟ THE PRESENT TIME PRESENT ENGLISH COINAGE ANCIENT SCOTTISH COINS 503,, 516 516 to 519, 693 RIGHT OF COINAGE, AND SOURCES OF SUPPLY TO THE MINT IMPORTS AND EXPORTS OF THE PRECIOUS ... METALS, RETURNS OF COINAGE, &C. ... 519 to 520 520 " 526 "" 526 to 532, 694 to 697, 714 PRODUCTION OF GOLD THROUGHOUT THE WORLD ... COMPARATIVE TABLES OF COINS VARIOUS MONEYS OF THE WORLD... TREASURE TROVE ... ... 532 to 533 534,, 537 538 " 556 556 ", 557 PASSPORTS PART XI. ... PURPOSES OF, AND CHANGES IN CONNECTION WITH PASSPORTS ... GENERAL REGULATIONS ... APPLICATION THROUGH BANKER, SPECIAL OFFICIAL INSTRUCTIONS, &C. 559 " 566 559 560 AND دو 563 563,, 566 f ร } Ú " 专 ​GENERAL CONTENTS. PART XII. ADDENDA TO VOLUME I. Embracing the law and practice down to the present time in connection with POOR LAW UNIONS, EXECUTORS, INFANTS, and Married Women TRADING, &C. TRUSTEES BANKRUPTCY ... PAGE. XV. 567 to 686 567 ", 572 572,, 573 573 to 599, 697 BILLS PURPORTING TO BE DRAWN ABROAD, TERM MONTH, RETIRING BILLS, SIGNA- TURES IN PENCIL, SIGNATURES BY BANK OFFICERS, &C., AND CONTRACTS WITH CHURCHWARDens, Overseers, and Com- MISSIONERS J 600 to 605 I ALTERATIONS ON BILL AND BANK NOTE, FORGERY, LOSS OF HALVES OF NOTE.605 to 608, 616, 636 INOPERATIVE INDORSEMENT, RE-INDORSE- MENT, INDORSER'S RIGHT TO SECURITIES OF ACCEPTOR PAYMENT BY BANKER ... 608 to 611 611 to 613, 699, 700 INTERNATIONAL LAW, CONTRACT BY IN- DORSEMENT, NON-PAYMENT, AUSTRALIAN COLONIES, FORGERY BANKER'S LIEN, SPECIAL CREDITS CHEQUES 613 to 616 616,, 619 ...619 to 625, 633,, 636 625, 632 EXECUTORS AND ADMINISTRATORS, COURT OF PROBATE, TRUST MONEYS SATISFACTION OF DEBT BY CHEQUE FOR SMALLER AMOUNT, CHANGE IN BANKING FIRM, &C.... OPINIONS-FALSE REPRESENTATION 633, 636 ... 636, 637 MARRIED WOMEN-NEW LAW INTRODUCED ... BY ACT OF 1882, &c. 637 to 655, 690, 697, 698, 714 BILLS OF EXCHANGE CODIFYING ACT of 1882 BILLS ACCEPTED in Blank, Alleged Libel- LOUS PUBLICATION ...655 to 685, 698 ... ... 685, 686 I ' xvi. } } } GENERAL CONTENTS. PART XIII. PAGE. ADDENDA TO PRESENT VOLUME... INSPECTION REPORT I., COMMISSION ON MONEY ORDERS, POST CARDS, &C., POSTAL STATISTICS, AND VARIOUS NEW POSTAL SCHEMES... 687 to 716 687,, 689 BILLS OF EXCHANGE BOOKS, GENERAL Signature Book, &c., Treasury Bills, ADVANCES TO BILL BROKERS, CHARTERED COLONIAL BANKS, BANK OF ENGLAND CONCESSION, Investment of CASH UNDER CONTROL OF COURT RECEIPTS FOR LOAN DEPOSITS, STOCK- BROKERS' CLAIM, &C., BANKERS' BOOKS EVIDENCE ACT, BILL AGAINST MEDALS IN IMITATION OF CURRENT COIN Returns of Coinage, &c. 689 "" 691 691,, 693 694,, 697 FRAUDULENT PREFERENCE, &c., REPUTED OWNERSHIP, DIVORCE CASES, GIFT IN JOINT TENANCY TO MARRIED COUPLE and Third Person, &c. 697, 698 698,, 699 FUNDS IN HANDS OF DRAWEE, TELEGRAPHIC Transfers, DISCOUNT CONTRACTS CORRESPONDENCE WITH AUTHOR RESPECT- ING HOLDER OF CHEQUE AND HIS BANKER, PAYMENT BY BANKER, ALTER- ATION IN CHEQues, Overseers, HUSBAND AND WIFE, &c. 699 to 703, 479 to 481 FORMS OF ADDRESS IN CORRESPONDENCE... ABBREVIATIONS AUTHORS AND PUBLISHERS….. 703,, 710 ..711 to 714, 65 ... 715, 716 ... ... 721,, 752 INDEX t ' & 1 ኃ STATUTES CITED. PAGE. Ina, year 688 ... 25 Edward III, c. 13 7 Richard II 3 Henry VII 505 ... 507 48 "" 486 55 175 56 33 ", VIII, c. 9 ... ... 460 56 "" 48 George III, c. 88 c. 103 c. 184 ... ... ... PAGE. 681 · 356 232 553 344 c. 68 ... c. 96 ... ... 37 "" "" 5 and 6 Edward VI, c. 20 13 Elizabeth, c. 5 ... 172, 176 57 c. 60 "" ... 176 58 c. 93 583 13 c. 8 ... 176 21 James I, c. 16 ...632, 634, 645, 650 I George IV, c. 92 .. I and 2 George IV, c. 72 5 George IV, c. 73.. ... • 419 172 · 349 ... · 356 c. 78 ... ... 21 c. 17 176 6 c. 16... " ... ... 176 ... 354 "" C. 17 ... 680 680 ... 226 ... 7 وو ... 482 21 and 22 George III, c. 16 ... 355 23 George III, c. 49 12 Charles II, c. 13... 5 and 6 W. and M., c. 20...225, 226 William III, Parl. i….. 9 3 and 4 Anne, c. 8 ... 6 Anne, c. 22 12 C. 12 c. 16 ... ... 7 George II, c. 8 15 c. 13 12 George III, c. 72 14 George III, c. 70 17 21 172, 176, 180 513 232 c. 46 ...203, 204, . 205, 225, 226, 316 c. 67 ... 7 and 8 George IV, c. 15 9 George IV, c. 23 223, c. 24 c. 80 ... 2 and 3 William IV, c. 98 C. 23 ... 316 681 228, 229 ... • 681 232 681 52 ... 427 9 226 9 683 518 3 and 4 c. 30- 680 ... c. 30 226 ... "" >> c. 83 224, 226, 230 "" c. 74 652, 654 6 "" 6 c. 42. c. 79 ... ... . 681 356 .501, 574 ... · 316 ... ... ... 7 c. 6 པ ... 7 >> 7 ... 33 " c. 13 37 c. 28 37 c. 45 51 460 : ... 349 c. 98 172, 173, 204, 225, 226, 344 4 and 5 Wm. IV, c. 92 652, 654 349 5 and 6 c. 76 ... 226 6 and 7 C. II c. 42 .. 681 c. 58. ... ... ... vi. 566 681 39 and 40 Geo. III, c. 28 "" وو 意 ​1 4 | เ xviii. ! STATUTES CITED. I Vic., c. 80 I and 2 Vic., c. 114 ... ... 2 and 3 "" c. 37... ... 3 and 4 "" c. 96... 4 and 5 7 and 8 >> c. 50... "" 1'" PAGE. ... 173 23 and 24 Vict., c. 126 ... ... 683 24 and 25 c. 96 ... 173, 175 38 25 and 26 c. 89 201, 204, 227, 316, 319, PAGE. · 473 201 ... ... 230 320, 408, 417, c. 32 225, 228, 230, 231, 314, 315, 316, 323, 418, 440, 603, 679 27 and 28 c. 43 689 c. 78 356 324, 325, 326, 327, 329, 330, c. 86 ...205, 224 35 C. II2 ... 500 342, 343, 349, 350 30 and 31 ... 604 : C. 29 ? C. 113 ..204, 603 ... c. 37...232, 316, 350, 357, 681 c. 38 232, 316, 350 c. 76... 31 and 32 Vic., c. 122 32 and 33 c. 89 c. 131 c. 132 7 and 8,, C. IIO $ 8 and 9 دو c. 109 "" II and 12 Vic., c. 88 12 and 13 13 and 14 "" c. 91 c. 106 ... ... ... 225 ... ? ... ... 425 38 605 574 c. 56 173, 175 ... c. 60 572, 573, 643 ... 412 224 ...388, 440 "" C. 19 ... c. 62 ... ... .370, 371 ... 645 .417, 418 c. 71 499, 500, 574, 579, 580, 581, 582, 590, 569 593, 594, 595, 597 33 Vic., c. 14 33 and 34 Vic., c. 23 ... 561, 562 "" 16 and 17 "" "" 575 C. 2 c. 55 ... ... c. 59 349 C. 24 390 411 51, 52, 622 c. 30 ... 474 c. 60 "" " 420 224 "" c. 71 ... 475 17 and 18 39 :: c. 63 c. 75 c. 83 ... ... ... ... 654 600 c. 90 ..175, 176 : "" "" C. 125 ..434, 473 18 and 19 19 and 20 "" c. 67 683 c. 47 : c. 60 ... ... ... 604 681 c. 97 : ... 34 Vic., c. 17 20 and 21 c. 49 681 ... 227 34 and 35 Vic., c. 4 c. 77 568, 626-630 16 c. 79 ... 22 and 23 23 and 24 "" c. 35 "" c. 28 "" >> c. 31 c. 38 C. III ... ... 630 .370, 371 ... ... 427 356 ..371, 691 ... ... ... 681 "" "" C. 27 c. 47 c. 74 36 and 37,, c. 52 c. 66 >> "" .. 37 and 38 "" c. 26 " c. 50 c. 93 645, 646, 647, 648, 702, 703 c. 97 ... 52, 379, 380, 381, 382, 385, 386, 388, 392-395, 396, 423, 606, 679 659, 663, 679 ... ... · 379, 385 ... ... 370 371 681 ...630, 631 . 498, 499 ... ... 390 ..646 1 ' < } STATUTES CITED. } xix. ދ PAGE. 37 and 38 Vict., c. 62 568, 44 and 45 Vict., c. 12 ... PAGE. . 391 569, 570 C. 20 "" "" ... 379 38 and 39 "" c. 27 631 C. 21 "" >> "" "" c. 41 631 "" C. 41 c. 77 471 c. 68 "" c. 83 . 389, 391 "" 45 Vic., c. 2 ... 651 154, 651 ... vii, 653 66 ... 39 and 40 "" c. 48 453, 456, 45 and 46 Vic., c. 31 ... vi, viii 457, 458, 459 "" c. 37 vi "" "" "" c. 59 ... 653 "" c. 38 v, 654, 655 c. 81 619, 620, "" "" c. 39 vi, vi, 651-654 681, 685 "" 23 c. 43 vi ... 40 and 41 >> c. 29 651 "" "" c. 50 vi "> 33 c. 57 653 "" c. 51 "" 41 and 42 c. 59 ... 382, 390 "" c. 56 : :. c. 13 681 "" c. 57 "" c. 15 ... ... 386 "" " ༤ c. 61 "" "" 42 and 43 43 and 44 c. 26 c. 33 ... c. 23 654 c. II 316, 453, 457, 458, 459, 693 >> وو vi vi vi v, 655- 685, 698 c. 72 vi, 314, t 44 and 45 ,, c. 3 315, 368, C. 20 .. 387, 379, 395, 475 389, 391 651 "" ور c. 73 vi "" "" c. 74 vi ... 38 "" ix ... c. 75 v, 638- 650, 697, 702, 703 : 喊 ​I I { CASES CITED. A PAGE. Baynes v. Fry Beaumont v. Greathead ... ... ... PAGE. 194- Aaronson, Ex parte... 595 Adam's Policy Trusts, In re ... 647 Beckitt v. Bilbrough Adelphi Bank v. Edwards 607 Bedford v. Bagshaw 635- 409. 443 Agra and Masterman's Bank Bell v. Fisk ... 205 v. Hoffman .. 477 Allen v. Kemble 614 Amor, Ex parte, In re Amor... 592 Belshaw v. Bush Bennett v. Bennett... Berrington v. Collis • ... ... 636 188 173 Armstead, Ex parte... ... 581 Best, Ex parte ... ... 593 Ashton v. Dakin 428 Beynon v. Cook ... 191 Atcham Union, Ex parte 580 Bignold's Trusts, In re 572 Aylesford, Earl of, v. Morris... 188 Bishop, Ex parte, In re Fox ... 576 Ayliffe's case Bleasby v. Crossley... ... 574- 494 Aymar v. Sheldon 616 Blythe, In re 574- Ayres, In the goods of ... 650 Bodenham v. Purchase ... 464 England and others... ... Barclay v. Walmsley Baggett v. Meux B Baidwell v. Lydall Bank of Bengal v. Macleod Bank of England v. Anderson Banks, Ex parte Banner, Ex parte, In re Blythe 574 Barker and another v. Beckett and others... Booth and others v. Bank of Bowering v. Shepherd 227 ... 422 • A • 638 Brandao v. Barnett... ... 466 Brooke v. Middleton ... 423 Brookman v. Rothschild... 227 ,, v. Brooks ... ... 581 Hanover ... 174 Bryan v. Lewis ... 693 C Barrack v. McCullock ... 649 Barry v. Crosskey ... 425, 443 Callisher v. Bischoffsheim Batey, In re ... Baxendale v. Bennet ... 590 Caliot v. Walker ... ... 607 Cannan v. Bryce 618 194 ... 423, Brooks, Ex parte ... 587 648. Brunswick, Duke of, v. King of 482 ... 427 Bunyard, In re….. 575 574 ... • 193 426 嗑 ​} 1 1 1 1 " X xxii. CASES CITED. Capital and Counties Bank v. Henty and Sons ... Carstairs v. Stein ... ... Carter v. White ... Case v. McClellan Chambers v. Jones .. Chapman v. Milvain Chatterton, In re >> ... v. Watney Chesterfield v. Jansen Chippendale, Ex parte PAGE. Dixon v. Dixon 686 193 ... 685 407 605 PAGE. 649 Dost Ali Khan, In goods of .... 626 Duffy, In re ... Duke of Brunswick v. King of Hanover ... Duke of Roxburghe v. Cox & Company 685 482 618 611 ... ... 423 685 423 Duncan Fox & Co. v. N. & S. 580 ... 500 Wales Bank • ... 175 Dunne v. English ... 203 Dutch v. O'Leary ... ... ... 205 City Discount Co. v. McLean.. 465 Clack v. Sainsbury ... ... ... 173 Clarke and Chapman v. Hart.. 417 Clayton's case Clerke v. Clerke Coles v. Bristowe ... Colkett v. Freeman... Dyster, Ex parte E East Bottallack Mine, In re ... 463, 464 568 ... 422 Eaton v. Bell ... : Collie & Co., Alex., Re... Colyer, In re ... Cooper v. Neil….. v. Parker • ... 584. 572 417 ... 605 ... ... 483 ... 204 ... ... ... 193 593 ... ... 624 590 425, 428, 574 429, 430, 43I Ede v. Jackson... Edward v. Buchanan Edwards v. Vere Elworthy, Ex parte... Emanuel v. Roberts Emmanuel, Ex parte ... ... v. Prichard... Cooke, Ex parte Copp v. Lynch and Law Life Insurance Company 635 ... ... 697 ... ... 402 F 86 Farley v. Turner ... ... 587 Favenc v. Bennett 580 France v. Clark ... ... ..633, 635 574 • € 500 Crawcour v. Salter... Crawford, Ex parte... Cumber v. Wane Cumming v. Bailey... Curtoys, In re ... ... ... ... ... 585 466, 467 ... 4II Frank Mills Mining Co., In re 416 Findlay & Co., Ex parte Fire Re-Insurance Corporation, In re ... Fitch v. Jones….. v. Sutton Floyer v. Edwards Follett v. Moore : ... 584 ... 649 426 635 ... 625 175 474 ... ... 173 205 Forder, Ex parte ... ... 579 Fox, In re... 590 576 ... 572 v. Mackreth 4.23 D Da Silva v. Fuller Daniel v. McCarthy ... Davidson v. Cooper Davies v. Humphreys Dawes v. Tredwell ... : : ... De Haber v. Queen of Portugal 481 Foxton v. Manchester and Liverpool District Bank... 632 Dicken, In re ... ... 580 Dickenson v. Dickenson ** 603 Freeman v. Cooke ... ... 616 اگر ། CASES CITED. xxiii. G Garland, Ex parte Garrard v. Lewis Gascoyne v. Penyke Geary v. Physic Gibbs v. Fremont Giffard, Ex parte Gilbey v. Jeffries PAGE. Hemming, Ex parte Henderson v. Stobart Henniker v. Webb... ... ... • Hibblethwaite v. Mc. Morine.. 567 ... ... 607 496 602 ...613, 616 Hill, Ex parte ... 579 v. Lewis "" 590 ... 423 Hirschfield v. Smith 633 v. Royds : : ... PAGE.. 580 636. 466 408, 427 .. ... 697 609. 585 614, 616 ... 577 • Gillet v. Peppercorne Goddard v. O'Brien Gooch v. Loveland ... Gordan v. Jennings... ... ... ... ... ... Gothenburg Com. Company Limited, In re ... ... 494 474 466 Graves, Ex parte, In re Harris 575 Hitchman v. Stewart Hodgkinson, Ex parte ... Hodgson v. Williamson ... Hope, Ex parte Hopgood v. Parkin... Horne v. Rouquette ... ... 591 650 578 405 614 Hovenden v. Lord Annesley... 573 Gray v. Johnston Green v. Skipworth Greensell, Re ... 634 ... 603 Howell v. Met. District Ry. ... 474 ... 501 Howley v. Cook 188 Griffin, Ex parte, In re Bunyard 575 Hudson, Ex parte ... 595 Griffith, Ex parte Humber Ironworks Co., Re... 584 ... 579 Grissell v. Bristowe... 422 Humphreys v. Allen ... 649, 650 Grizewood v. Blane 425, 428, 431 Hunter v. Walters ... parte... Guardians Atcham Union, Ex Guardians Halifax Union v. Hutton v. Brown 410 600 580 I Wheelright ... ... 625 Ingham v. Primrose 607 Guerrier, In re….. 574, 575 J Gwynne v. Heaton .. H Haddon's case T 190 494 Jackson v. Cocker ... v. Hudson... v. Tyas ... Halifax Union v. Wheelright... 625 Jeffrey v. Walton :. 409 ... 609 691 3.. 603. > > Hamer v. Giles Hanson, Ex parte Hardcastle ... Harding v. Williams Harris, Ex parte In re ... Harrison v. Brown .473, 474 Jessop v. Lutwyche 194 ... ... 627 ... 427 ... ... 638 L 456 Johnson v. Gallagher Joint Stock Discount Co., Re... 584 Jones Ex parte, Re Jones 569, 570 ... ... 414 "" v. Jones... 645 575 v. Thompson... 474 205 K ... 573 411 Kimber v. Barber ... 423 Harston v. Tenison ... Harwood, In re : Haven Gold Mining Co., In re 590 Hawken v. Bourne ... ... ... 203 King v. Lucas ... Knight v. Cambers... ... ! ... ... 698 427 J i 1 xxiv. CASES CITED. Lacey v. Hill ... PAGE. L Laporte v. Cosstick... Latless v. Holmes 428 ... 571 ... ... 460 637 Leddell v. McDougal Lemann's Trusts, In re ... 572 Leslie, Ex parte, In re Guerrier 575 Levy v. Lovell... ... London and County Bank v. Groome Mellor's Trusts, In re Metropolitan Bank v. Heiron Miller v. Cook... "" v. Mynn... ... Mills v. Fowkes Misa v. Currie and others Mitchell v. Lee ... 499 "" 684 Cotton Mills Co., In re 499 Joint Stock Bank v. Mayor and Alderman of London ... 484 Mayor &c. of, v. London Joint Stock Bank 484 ... Mayor, &c. of, v. Cox. 495 Louisiana Bank v. Bank of New Orleans Lovering, Ex parte... Lucas v. Dicken ... Lynch, Ex parte, In re Lynch Lyne v. Siesfold M Macdonald v. Chesney Mander v. Harris PAGE. 647, 648 196 . 188 474 463, 467 616 ... 474 v. Victoria P. B. Building Society and Mitchell ... ... ... 648 580 Moir, Ex parte, In re Moir Moore, Ex parte, In re Moore 588 v. Bushell Morris v. Cannan وو ... ... ... 585 ... ... ... 409 477 ... ... ... 175 474 v. De Lamonta Morse v. Wilson Murray v. Simpson... ... ... v. Hodgson National Provincial Bank of N ... ... ... 585 • 697 Nash, In re 572, 573 581 467 569, 570 England, Ex parte ... 578 ... 426 Neilson v. James ... ... 413 Nevill v. Snelling 185 ... 579 ... ... Masterman v. Cowrie Matthews, In re Matthiessen & Buck v. London and County Bank Mawson, In re... May v. Selby ... ... Mayor & Aldermen of London v. London Joint Stock Bank... ... ... 698 194 · 586 Limited, Re Guerrier Nixon v. Phillips ... 620, 685 ... 627 573 Norton v. Turvil 698 Nevison v. Whitley... Newman v. Rook Newton, Ex parte, In re Bunyard Nicholson's Discount Company ... ... 174 ... 474 ... ... • 575 ... 574 ... 173 Nordberg v. Trade Auxiliary Co. Stubbs & Co. ... 637 ... € 650 Nothard v. Proctor... 499 March, In re ... ... "" v. Cox ... McCall v. Taylor ... ... O ... 484 495 Ockford v. Barelli ... 608 Ogden v. Benas Oldham v. Ramsden 616 ... Ongley v. Ongley ... ... 426 O'Rorke v. Bolingbroke... McKenzie v. British Linen Co. Bank... ... McKinnell v. Robinson ... 574 622 ... 427 635 .. 188 { f CASES CITED. XXV. Ortigosa v. Brown Oulds v. Harrison ... ... ... Outwin's Trusts, In re Owen v. Delamere ... : : ... PAGE. 476 PAGE. 409 Rex v. Ward ... ... 427 "" v. Wrangham... 642 Richardson, Ex parte 568 Richdale and Tomlinson, Ex 638 parte ... 476 567 ... 581 Richter v. Laxton Ricketts v. Bennett... ... ... 499 416 Ridler, In re, Ridler v. Ridler 583 ... Owens v. Dickenson Р Paley v. Field ... 466-7 Palmer, In re ... 581 v. Baker : 194 Pasley v. Freeman ... 443 Peek v. Gurney ... ... 443 Pelican Assce. Co., v. Robarts 700 Pemberton v. Chapman... 568 Penny v. Innes Perris v. Roberts Perry v. Atwood ... ... Petre v. Duncombe... Pidcock v. Bishop Pike v. FitzGibbon ... Pillers, Ex parte ... Robbins, In re Roberts v. Trenayne v. Watkins Roche v. Brown Rosewarne v. Billing ... ... 593 ... 175 ... 638 ... ... ... 570 ... 427 ... 613, 616 614 618 Rothschild v. Currie Rouquette v. Overman ... Roxburghe, Duke of, v. Cox and Co. ... 609, 610 467 ... 635 577 465 637 land and others ... 500 Rule v. Jewell ... Pollard v. Bank of England ... 611 Royal Bank of Scotland v. Commercial Bank of Scot- ... 585 417 Powell, Ex parte ... Powles v. Hargreaves Prendergast v. Turton Price, In re ... ... ... 586 587 ... ... 417 500 Russell, Ex parte Rymes v. Clarkson... S • 44 St. John's College, Oxford, Ex · 593 603 "" v. Jenkins R ... ... • 583 parte ... Salisbury, In re ... ... 691 581 Salvin v. James and another ... 88 Raikes v. Todd Ramsden v. Smith Rawson v. Samuel ... Redhead v. Walton 466 Sargent, Ex parte ... 571 Saunderson v. Piper 478 Seear, Ex parte ... 499 Seymour v. Bagshaw Rees, In re ... 578 Reg. v. Adams and Warren 476 v. Aspinall 443 Shaw and others v. Picton ... Sibree v. Tripp Silver Valley Mines Company, v. Bradlaugh ... ... 693 In re... "" v. Harper v. Moody v. Smith .. v. Wilson Rew v. Pettet ... Rex v. Harrison 608 Simson v. Ingham ... 408, 410 ... 607 ... ... 500 443 1 91 . 635, 636 417 463 93 93 :. ... 569, 570 605 ,, v. Page... litan Bank 93 Skyring v. Greenwood and Cox 91 Smith v. Anderson ... 199 ... • 635 Societé Générale v. Metropo- 606, 607 ... 1 1 1 } 1 t xxvi. CASES CITED. Solomon, Ex parte ... Sparks v. Yonge ... Speight, In re, Speight v. Gaunt ... Steel v. Dickson PAGE. لم .1 PAGE.. • 595 W 474 Wadsworth v. Queen of Spain 402, 404 481, 486 L.. 579 Walker and Co., J. B., In re... 583 Waller v. Lacy 467 Walters v. Smith ... ... 635 Steele and others v. Mc.Kinlay 609 Stoersiger v. South Eastern ... Stonor's Trusts, In re Railway String v. Bird... ... ... 608 ... ... ... ... 714 635 593 Stubley, Ex parte Suffell v. Bank of England Swan, Ex parte 608 ... 607 In re 578 "" v. North British Austra- "" lasian Company 408, 409, Sykes' Trusts, Re Ward, Ex parte In re Warren, In re ... Waring, Ex parte Watson, Ex parte In re ... v. Poulson Watton, In re ... Webster v. Cook Welby v. Drake ... ... ... 415 414, 415 698 584, 586, 587 ... ... ... ... ... ... ... ... 583 572 625 • 595 189 Sykes v. Beadon 606, 607 638 Welles' Case ... ... 199 Welter v. Rucker 635 ... 493 ... ... ... 496 ... ... ... ... 584 635 : 611 West Riding Union Bank, Ex parte Wilkinson v. Byers v. Unwin Williams, Ex parte... ... • 593 ... and others v. Raw- T Tarleton v. Staniforth Tayler v. Great Indian Penin- sular Railway Taylor v. Plumer Terrell, Ex parte Thacker v. Hardy 88 ... ... 409 ... Thomas v. Cooper 402 593, 595 linson ... ... ... Wills v. Sutherland... ... 424 ... ... ... 173 Wilson v. Dundas ... ... ... 467 636 v. Moore v. Short Thompson v. Hudson v. Percival v. Simpson ... ... Threlfall v. Wilson Tomlinson v. Bullock Turner, In re ... Tyler v. Yates... V Vallance v. Siddall Vance v. Lowther Vickers v. Stevens 1 464 ... ... 205 ... ... ... ... .. 585 646 460, 651 584 188 Wise v. Brokenshaw ... Wright v. Inland Revenue ... 173 ... ... 636 ... ... 499 Y Yeomans v. Williams Young v. Grote ... ... ... 474 632, 634 ... 423 ... 474 383 635 606, 607 ? 1 { THE LAW, EQUITY, & PRACTICE OF BANKING. PART I. INSPECTION. Inspector- In connection with the leading Banks of the country, an essential part of their management is that of Inspection, General. and where the Bank is large and the Branches numerous, the post of Chief Inspector or Inspector-General may be considered equal, and in some respects superior, to that of the Manager-General, particularly when the powers of the former are exercised to their fullest and widest extent in reviewing the position of the advances of the Bank and the sufficiency of its securities, and when his aid is called in, as is not infrequently the case, to rectify indiscretions and mistakes of management almost unavoidable in institutions of great magnitude, and to make matters smooth, whether at the Branches or at Head Quarters, with some dissatisfied or offended client, or some constituent who may have been unwittingly aggrieved. While great delicacy is required to be exercised by this high functionary in connection with such parties, care and discrimination, too, must be shown in his intercourse with the various officers and members of the Bank, and a proper estimate formed of their character and abilities, both as to their fitness for the posts already C J } } 1 Chief Officers. Periodical Inspection. Forms. 2 INSPECTION. assigned to them, as well as for future guidance in questions of promotion or enhancement of income. While thus alluding to a high Bank functionary, it is not to be forgotten, however, that the chief officers of a great Bank-the Inspector, Manager, Accountant, and Secretary may be regarded as all on pretty nearly an equal footing, and that in them and the Branch Managers the actual and successful management of a Bank really centres. In properly and honestly administered Banks this, it may be added, is recognized in a tangible shape, the pay of the Managers of the principal Branches and that of the head officers of the parent Bank being somewhat similar. The frequency of the inspection of Branches depends. a good deal on circumstances, but, as a rule, each Branch should be visited twice half-yearly, the one visit being an inspection in detail, and the other a partial one, its chief feature being a review of the inoperative and otherwise irregular advance or overdrawn accounts-a report upon the circumstances in connection with these, and a recom- mendation as to how they should be dealt with, being furnished. The following form, with the series of subsequent ones, devised by the author, in his endeavours to organize and introduce a uniform and an effective system amongst a number of Branches, many of which had previously been worked in a very imperfect, antiquated, and primitive fashion, has been found to answer all the purposes of a prolonged inspection, and may be regarded as furnishing a kind of photograph of the official details and actual work done at the Branch :- 3 C } INSPECTION REPORT. BRANCH. 18 I.—GENERAL BUSINESS. 4 2 > $ i I 4 INSPECTION. BRANCH. 18 Report I. General Business. Cash Balance. CASH BALANCE FIRST TELLER. Brought forward Total Coin £ £ s. d. Bank of England Notes: } 1 ! 1 Sovereigns Half-Sovereigns) Silver Copper Carry forward Total Coin. Add: £ 50... 1,000. 20... 500... IO... 100... 5... £ Various Incidents Total Bank of England Notes... Short in Silver Packets £ ... Post Office Money Orders Postal Orders Country Notes : ... Cheques : Sundries : Add SHORT Deduct OVER Carry forward : : : : : £ " J 2 . INSPECTION. BRANCH. 18 CASH BALANCE, Continued. Brought forward ... SECOND TELLER. £ s. d. Sovereigns Half-Sovereigns Silver Copper ... ... Carry forward Total Coin.. ... Add Miscellanies : Brought ford. Total Coin. Bank of England Notes: £ 1,000 500... 100... £1 50 20 ... ... IO .. 5 ... Various Total Bank of England Notes Add SHORT Deduct OVER ... Sovereigns Half-Sovereigns THIRD TELLER. £ s. d. Brought ford. Total Coin. Bank of England Notes: £ s. d. Silver Copper Carry forward Total Coin. £ Add Miscellanies : £ 50 ... 1,000 20 500... ΙΟ 100... 5 £ Various Total Bank of England Notes Add SHORT £ Deduct OVER ... FOURTH £ s. d. Sovereigns Half-Sovereigns TELLER. Brought ford. Total Coin. Bank of England Notes: Silver £ £1 50 ... Copper ... Carry forward Total Coin. £ 1,000 500... 20 ΙΟ ... IOO... £1 5 Various £ s. d. Add Miscellanies : Total Bank of England Notes £ Add SHORT Deduct OVER • TOTAL, as per Cash Balance Book and State Book £ 5. d £ 5 Report I. General Business. Cash Balance. 1 2 Report I. General Business. } Cash Balance. 6 INSPECTION. CASH BALANCE, Continued. Per FIRST TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. "" SECOND TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. " THIRD TELLER'S Cash Book. Bank of England Notes. .£ Coin, &c. FOURTH TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. ... TOTAL, as on preceding page... : £ BRANCH. 18 } J 1 1 A } Report I. General Business. Drafts. INSPECTION. DRAFTS. DRAFT FORMS, on hand: BRANCH. 18 7 LONDON-DEMAND: AFTER DATE : PROVINCIAL : Total : → : { 1 ' 8 INSPECTION. BRANCH. 18 DRAFTS, Continued. Report I. General Business. Drafts. PER DRAFTS ISSUED BOOK : LONDON DEMAND, as at Add,-Received: } 1 1 15 > I Y Deduct-Issued: 18 Cancelled, herewith: Carry forward... 1 P: * $ Report I. General Business. Drafts. INSPECTION. DRAFTS, Continued. PER DRAFTS ISSUED BOOK, Continued. Brought forward LONDON-AFTER DATE, BRANCH. 18 9 as at 1 Add,-Received: Deduct,-Issued: 18 Cancelled, herewith: Carry forward... : { + } } "4 3 י 1 โ 7 *J Report I. General Business. -Drafts. } L ΙΟ 1 INSPECTION. } DRAFTS, Continued. PER DRAFTS ISSUED BOOK, Continued. Brought forward ... PROVINCIAL, as at Add-Received: Deduct,-Issued: } Cancelled, herewith: 18 Total as ante page, 7 BRANCH. 18 ! ( 1 1 INSPECTION. II BRANCH. 18 STAMP ACCOUNT. CHEQUE FORMS, on hand: Bearer Books-12 S.-1/- 100 = £5 1 "} }) "" 24 S.-2/- 50=£5 34 30 s.-2/6...40= £5 48 s.-4/-...25=£5 60 s.—5/-...20= £5 120 S.-10/-..10= £5 £ ५२ "} 240 s.-£1... 5=£5 ور " 360 s.-£ 1 10/- 5 = £7 10/- >> >> 480 s.-£2...5=£10 Loose Forms s. d. Report I. General Business. Stamps. Carry forward £ ་ 4 Report I. General Business. Stamps. { 12 INSPECTION. BRANCH. 18 STAMP ACCOUNT, Continued. Brought forward CHEQUE FORMS on hand, continued: Order Books-12 S.-I/...100 £5 £ } >> "" 24 S,—2/-... 50=£5 >> 30 s.-2/6... 40= £5 48 s.—-4/- .. 25= £5 }) "" 60 s.-5. 20=£5 "} ") 120 S.—10/-...10=£5 " ,, བ 33 >> = 240 s.—£1 . 5=£5 360s.—£1 10/- 5 = £7 10/- 480 s.—£2... 5= £10 Loose Forms Carry forward £ J { I 1 1 J 3 INSPECTION. BRANCH. 18 STAMP ACCOUNT, Continued. 13 Brought forward CHEQUE FORMS on hand, continued: Stamped Advice of Acceptance forms. Clients' Special Cheque forms. Head Office Cheque forms. Other Branch Cheque forms. London Cheque forms. DEPOSIT RECEIPT FORMS. GUARANTEE FORMS. } Singular... £ Plural STAMPED TELEGRAPHIC FORMS. Carry forward 1 } Report I. General Business. 1 Stamps. £ : £ 1 ป 1 J 1 4 1 } 14 Report I. General Business. Stamps. INSPECTION. BRANCH. 18 STAMP ACCOUNT, Continued. Brought forward ... £ AGREEMENT STAMPS. FOREIGN BILL STAMPS. INLAND BILL STAMP'S. RECEIPT STamps. TRANSFER STAMPS. SPOILED FORMS AND STAMPS. CASH-Proceeds of Forms and Stamps: Add: Total on hand £ Balance per General Ledger ... £ SHORT OVER... 1 } 1 } : Report I. General Business. Postages. INSPECTION. BRANCH. 18 POSTAGES ACCOUNT. POSTAGE STAMPS, on hand: I I 2 2 ... £ s. d. £ S. d. 15 1/- 5/- 10/- £I... 3456 EMBOSSED POSTAGE ENVELOPES, POST CARDS, 120=5/- POST WRAPPers, RAILWAY STAMPS, REGISTERED LETTER ENVELOPES, SPOILED, CASH PROCEEDS, Add: Used per Letters Posted Book Total on hand £ £ £ Balance per General Ledger SHORT OVER ... t INCIDENTAL EXPENSES ACCOUNT. £ Incidental Expenses. CASH on hand : Sovereigns Half-Sovereigns Silver Copper ... Add: ... ... £ Expended per Incidental Expenses Book ... £ Balance per Current Account Ledger ...£ ? " } t $ 16 1 INSPECTION. ་ ། 1 BRANCH. Report I. General Business. BILLS CURRENT. AMOUNTS OUTSTANDING per Bill Diary: Bills Current. £ s. d. £ s. d. £ s. d. 18 £ s. d. £ s. d. £ s. d. } 7 Fwd. Fwd. Fwd. Fwd. Fwd. Balance per General Ledger £ ! 1 } INSPECTION. 17 BRANCH. 18 BILLS ON HAND TO BE CREDITED BILLS FOR COLLECTION, As per Bill Register and Branch Diary. Report I. General Business. Miscellaneous Bills. From On Due. Amount. £ BILLS TO BE ACCOUNTED FOR TO CORRESPONDENTS, As per Bill Register and Branch Diary. To On Due. Amount. BILLS HELD OVER FOR CREDIT OF CLIENTS, As per Bill Register and Branch Diary. Of On B Domicile. Balance per Current Account Ledger Due. Amount. £ 7 1 Report I. General Business. Bills Dishonoured. 18 } INSPECTION. BRANCH. 18 BILLS DISHONOURED ON HAND. } From Drawer. Acceptor. Due. Amount. Paid. Balance. Balance per General Ledger Total ... Of the above there will probably be recovered:- ... £ Leaving an estimated loss of ... : : £ £ £ } The following have been the steps taken by the Manager for recovery :— $ } i 1 INSPECTION. 19 BRANCH. 18 BONDS ON HAND, FOR COLLECTION OF RELATIVE COUPONS. On Account of Description. Receipts for Re-delivered Bonds, produced of: dated Amount. Report I. General Business. Bonds. * * 1 1 Report I. General Business. Securities for Safe Custody. 20 f INSPECTION. 1 ' BRANCH. 18 SECURITIES FOR SAFE CUSTODY, on hand: On Account of Description. 4 i Re-delivered per Receipts produced of : Date of Re-delivery. ༣ ! { 1 { x INSPECTION. 21 $ BRANCH. 18 SECURITIES FOR ADVANCES, on hand. Of Nature. Consideration. Reasons for Retention Report I. General Business. Securities for Advances. Re-delivered per Receipts produced of : dated Forwarded to Head Office: on } } } 参 ​} ' ご ​+ 1 7 M } → 1 * ! Report I. General Business. Securities Temporarily Lodged. 22 1 } INSPECTION. BRANCH. 18 SECURITIES RECEIVED AND RE-DELIVERED DURING INTERVAL OF INSPECTION. Date Received. Date Re-delivered. Life and Fire Premiums. LIFE AND FIRE PREMIUMS Outstanding, or not initialed in Diary as attended to: Date. Name. Office. Life or Fire. Remarks. INSPECTION. BRANCH. 23 18 NUMBER OF ACCOUNTS. CURRENT as per Per Money Lent and Lodged Book of Add since Opened Deduct since Closed.. as per Accounts Opened and Closed Book. Over-estimated Under-estimated ... : : DEPOSIT as per Per Money Lent and Lodged Book of Add since Opened Deduct since Closed D as per Accounts Opened and Closed Book. Over-estimated Under-estimated ... ... DEPOSIT RECEIPTS, as per Deposit Receipt Register Per Money Lent and Lodged Book of Add since issued ... Deduct since paid Over-estimated ... Under-estimated ... : TOTALS OVER in Money Lent and Lodged Book UNDER "" "" "" "" "" Over. Under : P: : ... : : Report I. General Business. Number of Accounts. Per Per Money Lent and Lodged Book. Ledgers or Balance Statements * : 24 INSPECTION. Report I. General Business Comparative Statement. $ } BRANCH. 18 COMPARATIVE STATEMENT OF DEPOSITS AND OVERDRAFTS, AND OF THE BALANCES OF PROFIT AND LOSS ACCOUNT, AND EXPENSES OF BRANCH, FOR THE LAST SEVEN YEARS. Per Centage Date. Sanctioned Deposits. Overdrafts. drafts. Over- No. Profit. No. Ex- Loss. penses. on Deposits. 18 Bad Debts. Officers. 1 Total Loss by Bad Debts since Establishment of Branch 18 £ OFFICERS AT BRANCH. Name. Position. Fidelity Bonds. Remarks. է 3 INSPECTION. 25 } BRANCH. 18 BALANCES OF ALL THE PASS BOOKS On hand as follows, verified. CURRENT. NAMES. Report I. General Business. Pass Books. DEPOSIT. NAMES. 1 > I 5 * > 纂 ​26 Inv + INSPECTION. BRANCH. Report I. General Business. Remarks. Balanced the Current Accounts, Deposit Accounts, and Deposit Receipts, and verified their Entries as per State- ments annexed. .. REMARKS. INSPECTION. 27 On the Second Half-Yearly Visit the following form should be used:- INSPECTION REPORT. BRANCH. 18 II.—ADVANCES, &c. } > : *} Report II. 28 ! ? ì INSPECTION. CASH BALANCE, Cash Balance. } } F BRANCH. 18 £ Sovereigns Half-Sovereigns Silver Copper Carry forward Total Coin. FIRST TELLER. Brought forward Total Coin £ S. d. Bank of England Notes: £ £ 50... 1,000. 20... ... 500... IO... 100... 5... £ Various Add: Total Bank of England Notes... Incidents Short in Silver Packets £ ... Post Office Money Orders Postal Orders Country Notes : ... Cheques : Sundries : Add SHORT Deduct OVER ... Carry forward 4: ... £ ... { } INSPECTION. ! BRANCH. 29 18 CASH BALANCE, Continued. Brought forward Sovereigns Half-Sovereigns Silver ... Copper Carry forward Total Coin.. Add Miscellanies : Sovereigns SECOND TELLER. £ s. d. £ s. d. Brought ford. Total Coin. Bank of England Notes : £ £ 50 1,000 20 500... ΙΟ ... 100... 5 £ Various Total Bank of England Notes Add SHORT Deduct OVER THIRD TELLER. £ s. d. Half-Sovereigns Silver Copper ... £ Brought ford. Total Coin. Bank of England Notes: £ 50 1,000 20 ... £ s. d. Carry forward Total Coin. £ Add Miscellanies : 500... 100... £1 IO 5 Various Total Bank of England Notes Add SHORT £ Deduct OVER ... Sovereigns Half-Sovereigns FOURTH TELLER. £ s. d. Brought ford. Total Coin. Bank of England Notes: £ s. d. Silver Copper ... Carry forward Total Coin. £ £ £ 50 1,000 500... 20 ΙΟ ... ... 100... £ 5 .. Various Add Miscellanies : Total Bank of England Notes Add SHORT Deduct OVER £ TOTAL, as per Cash Balance Book and State Book ... £ Report II. Cash Balance. 3 { 1 1 1 < Report II. Cash Balance, 1 30 1 INSPECTION. CASH BALANCE, Continued. Per FIRST TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. ... BRANCH. · 18 } 35 SECOND TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. THIRD TELLER'S Cash Book. Bank of England Notes. .£ Coin, &c. 133 "" FOURTH TELLER'S Cash Book. Bank of England Notes...£ Coin, &c. TOTAL, as on preceding page... £ 1 } } 1 } t í Y INSPECTION. 31 BRANCH. 18 INOPERATIVE AND OTHERWISE IRREGULAR ADVANCE OR OVERDRAWN ACCOUNTS. Report II. Irregular Advances. Highest Lowest Name, Occupation, and Address. Balance Balance Balance. during during during Securities held. past past half- half- year. year. Remarks and Re- commendation, noting irregularities in Securi- ties, such as depreciation in value, or in the case of Guarantees, death of Guarantor. A number of separate folios, headed as above, should be printed, and all those required to be used attached to the Report, the Deposit Accounts being also individually gone over and duly noted when overdrawn, at the end of the Report. } W 1 Report II. Application for Limit. } 32 INSPECTION. And accompanying this Report, and to be used in the requisite cases, should be Limit forms, such as the following:- PROVINCIAL BANK. APPLICATION Name, Occupation, and Address, giving, if a Firm, Names and Addresses of all the Partners. BRANCH. FOR LIMIT OF £ If ever failed, and if so give date, and particulars, and whether dis- charge granted. 1. As to private character and business quali- fications. 2. If previously accommodated has good use been made of the advance? 18 1. When account opened. 2. If new account, whether been connected with any other Bank, and if so, full particulars to be ascertained, with reasons for leaving other Bank, and Pass Book to be seen, and if needful Balance Sheet submitted. 3. How long in business? 1. Whether trading on any borrowed capital. 2. Net means. 3. If possessed of any realized property? 4. How much worth in all? 5. Authority for state- ments. 1. Amount of any existing limit and when granted. 3. Amount of any discounts. 3. Whether liable on acceptances, guar- antees, or other- wise. 1. Annual amount 1. For what If Share- of debit tran- sactions. purpose advance required? If 2. And for what time? 2. Character of account. continuously to debit, or fre- quently or C- casionally to credit. 3. Rate of com- mission. holder in Bank, how many Shares held. Net value of Securities held £ Net value of Securities offered... £ A INSPECTION. PARTICULARS OF SECURITIES. GUARANTEES. 33 Name, occupation, and Date and Amount address of Guarantor. of Guarantee. Referee and opinion received, with its date. DEEDS OF FREEHOLD PROPERTY. By whom Description of Property. Con- sidera- tion. valued and Particulars Annual Assessed Encum- Rent. Value. brances. Estimated Value. of date. Own opinion Insurance. of value. DEEDS OF LEASEHOLD PROPERTY. Term, Descrip- and from Con- Esti- tion of what Property date. sidera- tion. Ground Annual Assessed Encum- Rent. Rent. Value. brances. mated Value. By whom valued and date. Own opin- Particu- lars of Insurance ion of value Office. } LIFE POLICIES. Name and Desig- nation of Assured. Age at date of Assu- rance, and if admitted Date and Bonus Annual Surren- amount addi- Pre- der of tions. mium. value. Policy. STOCKS OR SHARES. If on half- If assigned credit system, or in any way to Bank, or taken subject to encumbered. assignment. Amount of Stock Company. or number and nominal amount Paid Rate of Dividend Current value. up. of Shares. per annum. If notice given, or if taken subject to notice. General observations and recommendation as to whether the application should be granted, or the limit continued, reduced or withdrawn. C } Report II. Application for Limit. t 1 < 1 } ง i 1 } } Report III. Securities. 34 INSPECTION. In connection with the principal Branches which retain their Securities, and only forward a copy of the entries from their Security Book of the particulars of each security as received, to be copied into the general Register of Securities kept at Head Office, the following form will be used on inspection of the Securities :- 1 INSPECTION REPORT. BRANCH. 18 III.—SECURITIES. } F } 1 INSPECTION. BRANCH. 35 18 SECURITIES. From 18 to 18 Folios to Name, Occupation, and Address. Description. Remarks. Report III. Securities. ? A number of sheets with the immediately preceding headings, surmounted by tr BRANCH." SECURITIES, continued," being printed, and those used being attached to the Report and this form, should also be used for noting irregularities at the periodical checking, once in two or three years, of all the securities held. 1 } 1 { ** / T 36 INSPECTION. At the General Inspection there will be annexed to the Procedure at relative report, No. I., in the following order :- General Inspection. Cash Balance. The Weekly General Ledger Balance Return, for week ending 18 all the balances of which will be duly , verified during the visit. Statement of Current Account Balances as on last day of same week. Statement of Deposit Account Balances as at same date. Statement of the Outstanding Unpaid Amounts of Deposit Receipts as at same date. Statement of Current Account Entries verified from 18 being date of last to that 18, to of present inspection. Statement of Deposit Account Entries verified during same period. Statement of Deposit Receipt Register Entries verified during same period. And the list and description of, and remarks upon, the Securities in connection with those Branches which retain their securities, in accordance with report No. III. Where duplicate ledgers, however, are kept at Head Office, it will be unnecessary to use the Weekly General Ledger Balance Return, or to extract the balances of the ledgers, or verify their entries. To afford a more comprehensive knowledge of our scheme. of inspection, we shall now refer to some of the steps necessary to be adopted in carrying out the provisions of No. I. form. As will be observed, it and No. II. form set out with details for the cash balance, and this should be the first matter to engage the Inspector's attention, and he should make it a rule to so time his visit as to be able to effect the counting in the morning, and before the Bank opens for public business. To provide against irregularities, full particulars should be given of the "cheques," and of the items constituting "sundries" and "miscellanies;" and the balances of notes, and coin, &c., shown by the Teller's 1 ! I INSPECTION. 37 Cash Book, should correspond with the actual cash balances. Sometimes, in the case of "Cash orders" received for Cash Balance. collection, these are credited the correspondent, and the necessary entries made in the State Book, but not in the Teller's Cash Book, although the orders are held over as cash, and so appear in the Cash Balance Book, or Book exclusively devoted to the particulars of the daily cash balance. When this is the case, the balance shown by the Teller's Cash Book does not correspond with that of the State Book, or with that of the Cash Balance Book—a most irregular circumstance, and one which should be guarded against either by a credit entry in the Teller's Cash Book, or by a suspension of all entries until the cash orders are actually collected. In the former case, if the orders are paid on the following day, then nothing more is required to be done, as the cash received of course replaces them, but if they are not paid, then a simple entry to the debit of the correspondent in the Teller's Cash Book will put the balance right, and make the transaction in order. If cheques on local Banks be received too near closing time for collection, the client should always be informed that they are held over until next day at his risk; and it would perhaps be better, as already recommended in our previous volume, to defer passing them until the following day, getting the client to date the credit note accordingly. When, after hours, cash is in cases of emergency required by any officer of the Bank, his cheque, duly dated on the day he receives the cash, should be received, and of course debited him on the following day. There will probably, at the Chief Branches, be always a considerable number of Post Office Money Orders and Postal Orders constituting part of the daily balance, but these should not be allowed to accumulate over two or three days, though by some Banks an arrangement their payment at stated intervals is made with the local Postmaster. The issue of these orders by the Post Office, 1 } I 38 Cash Balance. purposes. INSPECTION. it may be proper to state, is intended merely for remittance Though somewhat in the form of bills of exchange they can hardly be classed as such, particularly from the special conditions and regulations by which they are governed. The statutes relating to money orders are the 3 and 4 Vict., c. 96, and the II and 12 Vict., c. 88; and by the 43 and 44 Vict., c. 33, 7th September, 1880, the Postal Order was introduced. Both descriptions of orders are exempt from stamp duty.* * The form of the Money Order is as follows :— * } Money Orders. Application forms. Commission. Place, Stamp of Issuing Office. £......... MONEY ORDER. No........ £........... Pay the Person named in my Letter of Advice the sum of To the Post Office at....... B. { S....... Received the above, I request that this may be exchanged for a new order payable at + † Here state the name of office. C. { I request that this Order may not be paid until ten days after date of issue. d...... Certain instructions being given on the instrument. .Postmaster. .Signature of Payee. ..Signature. Signature of Remitter. Stamp of Paying Office. The following are the official regulations and instructions in detail :- MONEY ORDERS. 1. When applying for Money Orders, the public should use the prepared printed "Application Forms," which are supplied gratuitously at all Money Order Offices, viz.- 1. Application for Inland Orders; 2. Application for Foreign and Colonial Orders. 2. The Commission on inland Money Orders is :- For sums under 10s. " 2d. of ros. and under 27. .. 3d. For sums of 67. and under 71. 8d. >> " 72. 81. "" >> gd. 21. وو "" .. " >> >> " 32. 29 "I "" 42. 57. " " 32.. 4d. 42. 5d. 57. " 81. .او 1 "" .او 10%. " >> 6d. 10%. •• Iod. Iid. IS. " }} " 61... 7d. No fractional part of a penny allowed. Particulars required. 3. No order is allowed to contain a fractional part of a penny. 4. No Money Order can be issued, unless the applicant furnish, in full, the surname and at least the initial of one Christian name, both of the remitter ! 1 I } INSPECTION. 39 Of undiscovered differences in cash, on the third or fourth day after the occurrence of the difference, the Cash Balance. requisite entries to Cash Over Account, or to Cash Short Account in the Current Account Ledger, should be passed, and the payee, together with the remitter's address. In the case of Foreign Orders the full address of the payee must be given; and if the Order be payable to a native in British India, the Tribe or Caste, and the Father's name, must also be furnished. Exceptions.-Ist. The remitter is at liberty to desire, at the time of issue, that the Order be crossed like a cheque thus, & Co., and be made payable only through a Bank, in which case it is left to his option to give or with- hold the name of the payee. The designation of the bank need not be furnished. Foreign and Colonial Money Orders do not come under this exception. 2nd. If the remitter or payee be a peer or a bishop, his ordinary title is sufficient. 3rd. The usual designation of a firm is sufficient, except in the case of a company trading under a title which does not consist of the names of the persons composing it, as the "Carron Company," but even a designation. of this nature may be accepted provided the Order at the time of issue be crossed for presentation through a Bank. 5. The holder of a Money Order is always at liberty to direct, by crossing it, Order to be that the order be paid through a bank, even though its payment was not crossed. originally so restricted; and when the order is thus presented the question put on the presentation of an ordinary Money Order is dispensed with. 6. When application is made for a Money Order payable in London, or at Nearest Money any other town where there is more than one Money Order Office, the remitter Order Office. should say at which of such offices he wishes it to be paid : otherwise the order can be cashed only at the Head Office. It is not incumbent on a Postmaster to supply such information relative to local or provincial offices. 7. An order once issued cannot be cancelled; and should repayment or Orders cannot be transfer to a different office be required, the remitter or payee must apply to cancelled. the paying Postmaster according to the directions in par. 16 of these regulations. 8. The remitter of an order has full control over the money until payment has actually been made by the Department. In order to enable the remitter to obtain an acknowledgment of the receipt of a Money Order before the money is paid it is arranged that he may make his order payable ten days after date, provided that, in the presence of the Postmaster, when he obtains the order, he affix thereto, in the space after the request C., a penny adhesive stamp, and write his signature across the stamp. 9. When an order is presented for payment (otherwise than through a Payment. bank) the Postmaster has first to see that the signature of the payee be in agreement with the advice. He has then to call on the applicant to give the name of the remitter, and if the reply be correct, the order will be paid, unless the Postmaster have good reason for believing that the applicant is neither the rightful claimant, nor deputed by him. When an order is pre- sented through a bank, duly crossed with the name of such bank, by a person known to be in its employment, the usual formalities observed on presentation in the ordinary way will be dispensed with and payment made. Orders pre- sented at the Chief Office, London, by banks having accounts at the Bank of England, will be paid at sight irrespective of the places at which such orders are payable, but only on the understanding that any errors discovered on comparison with the relative advices will be subsequently adjusted. 1 t 1 1 } F 1 40 INSPECTION, however small may be the amount, and in cases of deficiency Cash Balance. this should be done whether the sums fall to be repaid by the teller or not. Of course, all differences should be duly shown in the details of the Cash Balance Book on the day Void Orders. 10. Money Orders do not require a receipt stamp. II. Although at the end of twelve months from that in which it was issued, a Money Order, if still unpaid, becomes legally void, nevertheless, when a good reason can be given for the delay in presenting it, an application for payment, subject to a certain deduction, is entertained. No compensa- tion granted and 12. No application can be entertained for compensation for alleged injury no after payment from the nonpayment of a Money Order at the expected time. made. Precautions to be taken. Payment cannot 13. After once paying a Money Order, by whomsoever presented, the office is not liable to any further claim. 14. To guard against fraudulent payment of a Money Order the remitter is recommended,- Ist. When he is well known to the payee, to sign the letter enclosing the Order with his initials only. 2nd. When this is not the case, either to make the Order payable ten days after date, or to register the letter enclosing it, or to make the Order payable through a bank by crossing it like an ordinary cheque. 3rd. When it is not considered expedient to adopt either of these courses, to send the remitter's name (without a knowledge of which pay- ment cannot be obtained) in a separate letter from that containing the Money Order; although this latter precaution is much less effective than either of the others. 15. Payment of an order cannot be demanded on the same day as that on be made on day which the order was issued. of issue. 16. In case of the miscarriage, or loss, of an inland money order in trans- Duplicate orders, mission through the post, a duplicate will be granted, free of charge, on a transfers, repay- written application, with the necessary particulars, being forwarded to the Con- ments, alteration troller of the Money Order Office in England, Scotland, or Ireland, according of name, &c. to the country in which the original order was issued. Should an order be lost after the delivery of the letter in which it was enclosed, an additional commission, which should be forwarded in postage stamps together with the application for a duplicate order, will be charged. This additional commission, for duplicate of an order not exceeding 57. will be one shilling ; above 51. and not exceeding rol., two shillings. If it be desired to stop payment of an inland order, application must be made at the office where the order is payable, and a second commission must be paid. If alteration in the name of the payee or remitter of an inland Money Order should be required, application, accompanied by the payment of a second commis- sion, must be made by the remitter to the Postmaster of the office at which the order was issued. Should transfer of payment of an inland order from one office to another in the United Kingdom, or repayment of the amount of an order, be required, an application enclosing the order must be made to the Postmaster at whose office the order is payable, who will transmit in exchange, a new order payable at the place desired, but for a less sum than the original order by the amount of the second commission charged for the re-issue. Proper printed forms for making applications in all these cases may be obtained at any Money Order Office. Whenever, on complaint being made, it is found that the necessity for an application, entailing the payment of a fresh commission, is attributable to an officer of the Post Office, the charge will be remitted to the applicant and imposed on the officer in fault. } # INSPECTION. 4I they arise and until discovery, or transfer to Cash Over or Cash Short Account. The cash balances should be always checked weekly by the manager. As soon as the cash is counted by the Inspector, 17. A Postmaster is required to give information how to apply for a dupli- cate order, &c., and must furnish the prescribed form of application. If payment of an order be refused, in consequence of the reply to the question respecting the remitter, or the signature on the order not corresponding with the entries on the advice, the applicant for payment should communicate with the remitter, and request him to apply personally to the issuing Postmaster. Cash Balance. Letter Carriers, 18. No Letter Carrier, Rural Messenger, or other Servant of the Post &c., not bound to Office is bound to procure a Money Order for any person, or to obtain pay- procure ment for one; but such services are not forbidden. 19. Money Orders are issued in the United Kingdom on the following Foreign countries, British Agencies, Possessions, and Colonies, at the rates of commission shown below:- Belgium FOREIGN COUNTRIES. Denmark • Danish West Indies. Egypt German Empire Holland France.. Italy Japan Norway Sweden Switzerland Possessions .. For sums not exceeding £2 9d. £5 IS. 6d. £7 £10 .. 25.3d. . 35. Dutch East Indian United States BRITISH AGENCIES. For sums not exceeding Gibraltar.. Malta £2 gd. Constantinople £5 Is. 6d. Smyrna £7 25.3d. Panama £10 35. BRITISH POSSESSIONS AND COLONIES. Berbice Belize British Columbia Cape of Good Hope Canada Ceylon Cyprus Demerara Falkland Islands Gold Coast Heligoland Hong Kong (with an agency at Shanghai) India Mauritius Natal.. New Brunswick Newfoundland.. New South Wales New Zealand Nova Scotia · Prince Edward Island Queensland St. Helena Seychelle Islands South Australia Straits Settlements Tasmania Victoria West Coast of Africa West Indies • • For sums not exceeding 9d. IS. 6d. £2 £5 £7 • 25. 3d. 1 · £10 ·· 35. Western Australia .. .. Orders. Money Colonial Orders. 20. The issue of a duplicate Order, or the stoppage of payment of an Order Duplicate issued by a Foreign Country or Colony on the United Kingdom, will be made Foreign and on application to the Controller of the Chief Money Order Office, London, transfers, stop- page of payment, provided an additional commission be enclosed as follows :— 1. For duplicates of Orders, not exceeding 57. و, ... &c. ... IS. 25. above 57. and not exceeding 10l... 2. For stoppage of payment, an additional commission a the ordinary Inland Rates. Postmasters in the United Kingdom have power to transfer to other offices in the United Kingdom payment of colonial and foreign orders originally drawn on their own offices. 21. Orders issued in the United Kingdom on Belgium, Denmark, Danish West Indies, Italy, Switzerland, Holland, the Dutch East Indian possessions, the 7 1 Į 42 INSPECTION. during which process the Teller should not at any time Cash Balance. be absent, the necessary comparison of the balance will be made with that in the Cash Balance Book, Teller's Cash Book, and State Book, all of which will be duly initialed by the Inspector. Postal Orders. 1 Norway, Egypt. and the British Colonies are payable for twelve months after the month of issue. Orders issued in the United Kingdom on the German Empire, and India, are subject to the regulations which govern the payment of Money Orders in those countries. Orders issued in France on the United Kingdom cannot be paid after three months from the date of issue, without the authority of the French Post Office, and orders issued in the United Kingdom on France cannot be paid after three months from the month of issue without the authority of the Chief Office, London. the United Kingdom on the Island of Heligoland are subject to the same Orders issued in rules as those issued in the United Kingdom upon the German Empire. The following is the form of the Postal Order :— Postal Order Poundage. о One Penny. Place...... POSTAL ORDER for Seven Shillings and Sixpence. To the Postmaster in charge of the Money Order Office at Pay to From the last day of the month of issue the sum of Office Stamp with Issuing Office No......... Stamp with Date. at anytime within Three Calendar Months. Seven Shillings (On account of Her Majesty's and Sixpence Postmaster General. {On .Postmaster. Paying Cancelling this date. Order. Then follow certain instructions. Received the above-named sum, .Signature. 1 1 And the regulations and instructions in detail affecting this description of instrument are as follow:- POSTAL ORDERS. Postal Orders, for certain fixed sums from Is. up to 1. are now issued to the public at all Post Offices in the United Kingdom at which Money Order business is transacted, and at Malta and Gibraltar. 2. The following are the amounts for which Postal Orders are issued, together with the Poundage payable in respect of each Order : Amount of Order. Poundage. Amount of Order. Poundage. S. d. Ι O SHIN 57 2 5 6 6 0 7 6 ... d. S. d. d. 1-4311 ΙΟ о 12 6 I ... 15 O I 17 6 ... I ... 20 O 2 2 2 2 2 ... ... } 1 X } INSPECTION. 43 After the verification of the cash balance the Draft Forms should then be proceeded with, each draft being counted Drafts. and the number marked on the counterfoil at the beginning of each book; the number in the case of those books partly used being marked and likewise initialed on the counterfoil of the first unissued draft. The books may each be composed of one hundred or two hundred forms, though for general practical purposes, in the ordinary run of Branches, the smaller number is perhaps preferable. 3. The person to whom a Postal Order is issued must, before parting with it, fill in the name of the person to whom the amount is to be paid, and may fill in the name of the Money Order Office at which the amount is to be paid. The person so named must, before payment can be made, sign the receipt at the foot of the Order, and must also fill in the name of the Money Order Office, if that has not been already done. 4. Every person to whom a postal order is issued shonld keep a record of the number, date, and name of office of issue to facilitate enquiry if the order should be lost. 5. If a Postal Order be crossed " & Co.” payment will only be made through a Banker, and if the name of a Banker is added, payment will only be made through that Banker. 6. A Postal Order presented by, or through, a Banker for payment will not (in the absence of an express arrangement between such Banker and the Postmaster General to the contrary) be paid until after such Order has been examined at the Chief Office in London. 7. After a Postal Order has once been paid, to whomsoever it is paid, the Postmaster General will not be liable for any further claim. 8. If any erasure or alteration be made, or if the Order is cut, defaced, or mutilated, payment may be refused. 9. The Regulations under which Postal Orders are issued allow the Postmaster to delay or refuse the payment of an Order, but he must at once report his reasons for so doing to the Postmaster General. J 10. After the expiration of three months from the last day of the month of issue, a Postal Order will be payable only on payment of a Commission equal to the amount of the original poundage, with the addition (if more than three months have elapsed since the said expiration) of the amount of the original poundage for every further period of three months which has so elapsed, and for every portion of any such period of three months over and above every complete period. II. The Commission thus paid must be affixed in Postage Stamps to the face of the Order. 12. These Orders are not payable out of the United Kingdom, except at Malta and Gibraltar. On 20th August, 1881, the Secretary of the Post Office announced that no instructions have been issued requiring the name of the office at which a Postal Order is payable should be inserted in such order at the time of its issue, and explained that the inconvenience complained of by the writer of a letter, which appeared in the Times of the 17th of the above month, arose "through the inadvertence of a particular Sub-Postmaster, a worthy and generally intelligent man, who has expressed much regret for the mistake." Postal Orders. t } 1 & ↓ { ₹ } Drafts. 44 INSPECTION. The Branch Drafts Issued Book will then be taken in hand, and this book should be divided into three sections, thus :— FIRST SECTION. DEMAND DRAFTS ON LONDON. + Formis Number. Date. Payee. Received. Cancelled. Issued. SECOND SECTION. AFTER DATE DRAFTS ON LONDON. Forms Number. Date. Payee. Currency. Cancelled. Received. 1 £ Issued. THIRD SECTION. DRAFTS ON PROVINCIAL AGENTS. Forms Received. Number. Date. i Payee. Drawee. Cancelled. Issued. £ The totals in the received column will be inserted at the date of inspection. Then in a line with this will be: "Issued....... ور ." stating number shown by the book; and on the following line: រឺ } INSPECTION. 45 "Cancelled stating number shown by the book, and these two numbers added together, and Drafts. deducted from the total in the received column, should give the number actually on hand, as shown by the "Draft Forms on Hand" page of the Report. On the following and succeeding pages of the Report devoted to the draft forms, "Per Drafts Issued Book," will first be inserted the number of forms as at previous inspection, those since received being, after insertion of the date of receipt, added, and from the total will be deducted the number issued and cancelled, the entries in this portion of the Report being briefly, as regards the London demand and the London after-date drafts, the dates when issued and the number; while in connection with the provincial drafts will in addition be given the name of the drawee bank, and the amount, thus, for the first two descriptions of drafts :— 1880, Jan. 1, 2, 3, 5, 5, 5, 6, 7, 7, 8, 9, 9, 9, 10, 12, 13, 14. 15, 16, 16, 16, 16, 19, 20, 21, 21, 21, 21, 23, 23, 23, 27, 30, 31, and 31....35 February, &c. And for the last description of, or provincial drafts :- 1880.—National Provincial Bank of England :-- .IO Jan. 1, 3, 3, 3, 7, 13, 20, 20, 23, and 31 ……………. February, &c., and similarly with the other provincial correspondents, though where the provincial drafts are not numerous the entries may be made as they succeed each other in the Drafts Issued Book without distinctively grouping the banks. Following the issued are given the cancelled or spoiled drafts, but in this case all the particulars of each draft should be inserted. These drafts should be preserved at the branch until the inspector's visit, and be taken by him to head office and delivered to the proper officer there, who will, as an acknowledgment of their having been f $ Drafts. 46 INSPECTION. received by him, adhibit his initials to that part of the Report in which they are described. The fewer, however, there are of such drafts, the more creditable will it be to the branch. It may be added, that instead of subjecting themselves to the trouble and delay in recovering the duty from the Government authorities, it is not unusual for some of the banks to dispose of the spoiled forms to their officers, who use them as cheques upon their accounts, the proceeds being placed to either profit and loss account, or, where there is such an account, to the credit of " Deficiency in Stamp Account," the latter showing in a collected form all the stamp deficiencies that may have occurred at the branches and head office. The results with regard to numbers, as shown in each section of the Report under "Per Drafts Issued Book," should of course correspond with the numbers appearing under the heading of "Draft Forms on Hand." Where the inspection visits are frequent, it may be unnecessary for the branch to use the weekly return of forms, a specimen of which is given post-Branch Return Forms, Part III., "Return of Draft and Deposit Receipt Forms, For week ending..... 18-." In the comparisons necessary at head office, reference will be made to the general stamp book to verify the number of forms supplied to the branch, and the number of drafts issued at the branch will be checked with that shown by the head office General Drafts Issued Book. Where no special connected record is kept at head office of the provincial drafts issued, then the checking of these will require to be made with the various head office bank correspondents' books. But the verification of drafts issued with the head office record need only be in connection with the more recent items, or in those cases in which the requisite check has not been afforded from the absence of the usual accounts rendered by the bank's correspondents; 1 } INSPECTION. 47 and when these come in at very short intervals and are duly checked, the filling up of the form may be considerably Drafts. abridged, as by giving the totals only issued each month, or within the intervals of inspection. The draft forms being finished with, the stamp account Stamps. will next claim the attention of the inspector. The various items comprised in this account are fully shown in the Report. The arrangement in the Bearer and Order Cheque Forms portion of it provides for the books being made up mainly, in packets of £5 each for facility in counting, and the space after "Total on Hand" is intended for particulars of any amounts that may be due by clients, or for other exceptional items. Where deposit receipts are issued, the duty upon those outstanding, besides that on the forms on hand, will have to be shown. The deposit receipt forms should always appear in stamp account, in order to ensure the repayments on account of the duty being credited to that account. In the case of drafts, the duty is not recoverable from the client, and it, along with the cost of the drafts, is accordingly debited to charges account. The total of stamp account should agree with the balance as shown by the general ledger, allowing for uncharged deposit receipts, the duty not being exacted from the depositor when the amount of the receipt is repaid after à few days and within a month of its issue, as no interest is allowed him when the sum does not remain beyond a month from the date of its deposit. Postages and After Stamp Account, Postages Account and Incidental Incidental Expenses. Expenses Account will be undertaken, though, as regards the latter, where the items are few, a formal account is not generally opened, such items appearing in the daily cash balance as incidents extracted from the from the Incidental Expenses Book, this book being closed at the end of each month, when the sum total of incidents is debited to Charges Account. When, however, a separate account is opened for these ! > * 1 Postages. Assimilation of Stamps. Telegrams. 48 INSPECTION. items, it does not of itself form a general ledger account, but is classed with the current accounts, and in such a case the cash on hand, along with amount expended per Incidental Expenses Book, should correspond with the balance shown in the Current Account Ledger. Of the Postages Account, the duty only upon the embossed postage envelopes, post cards, post wrappers, and registered letter envelopes will form a charge to Postages Account, the cost of these articles being debited to Charges Account. Postages Account should be balanced weekly at the branch, and the daily summations of the Letters Posted Book duly checked at the close of each day. It may be observed that by the practical good sense of the present Premier, Mr. Gladstone, and of his colleague, the Postmaster-General, Mr. Fawcett, a great simplification has recently been made in stamps by the assimilation of the receipt and penny postage stamps, one stamp being now available for either receipt or postage purposes, as well as for bills of exchange payable on demand, copies of registers of births, &c.; contract notes, delivery orders, leases, or agreement for leases where, the term being definite and less than a year (or, in Scotland, does not exceed a year), the rent does not exceed the rate of £10 a year; letters of renunciation, policies liable to the fixed duty of Id., proxies liable to the duty of Id., and voting papers. The special stamps, too, in use for affixing to telegrams, are intended to be replaced by postage stamps of corresponding value, "a measure," as officially notified, "which will facilitate the posting of telegrams in letter boxes during the night, or where there is no telegraph office within a convenient distance, as telegrams thus posted will be conveyed without extra charge at the next collection of letters to the nearest telegraph office which is open, for the purpose of being transmitted by the wires at the earliest possible moment. In those cases in which difficulty would be experienced in obtaining a printed telegraph message 1 } 3 2 INSPECTION. 49 form, ordinary paper may be used. The message may or may not, at the option of the sender, be enclosed in an Telegrams. envelope; but if an envelope be used it must be marked 'Telegraph message-immediate.' * The following are selections from the regulations since issued, and now in force :- 3. Postage stamps are used for the payment of telegrams, and the public are Stamps. required to affix the stamps to the message forms just as they are required to affix them to letters. As few stamps as possible should always be used. 4. Receipts for the charges on telegrams can be obtained at a cost of 2d. each. Receipts. I 5. The inland telegram forms are of two kinds, namely, the "A 1" form, Telegram forms. embossed with a stamp of the value of Is., and the "A" form (given gratis), with no stamp. The "A 1" forms may be purchased singly or in any number. They may also be had in books of 20 forms, interleaved, and with a sheet of 'carbonic paper; price £1. os. 2d. each book. I 6. When the terminal office, i.e., the office situated nearest to the address, Free delivery. is a Head Post Office, the amount paid for transmission covers the cost of delivery within one mile, or within the town postal delivery of that office when the delivery extends for more than a mile. But when it is not a Head Post Office, the message is delivered free within the limit of one mile only. When the terminal office is a sub-office, and that office is closed, exemption from porterage is allowed for one mile only if the telegram is delivered from the Head Office, even though the address of the telegram be within the limits of the town postal delivery. 7. When the addressee resides beyond the free delivery, porterage is charged Porterage at the rate of 6d. per mile, or part of a mile, provided the whole distance does beyond free not exceed three miles; but the charge is calculated from the boundary of the delivery. district within which no porterage is levied. For instance, if the addressee's residence is a mile and a quarter from the terminal office, and also beyond the town postal delivery, the charge for porterage would be 6d. ; if the distance is above two miles and under three, Is. 8. If the addressee resides at a greater distance than three miles from the Delivery by terminal office, porterage is charged, for delivery by mounted messenger, at mounted the rate of Is. per mile (except in Ireland, where the charge usually is only 8d. messenger. per mile), the charge being reckoned from the office door. } 9. The sender is responsible for all charges incurred in delivery; and when Sender respon- the address is not within the free delivery, he must, when practicable, state sible for charges. the distance and pay the charge for delivery in advance. When the exact distance is not known, a deposit must be paid to meet the charges. 10. The sum paid for delivery by foot or mounted messenger is telegraphed Deficiency to the terminal office; and should the sender have undercalculated the distance, charged against the deficiency is charged on delivery. addressee. II. If, on the contrary, the sender has paid too much, the excess is refunded Excess refunded on application to the Secretary. to sender. 12. If the sender requires his telegram to be forwarded by post or by train Delivery by post from the terminal office, he must write the words "by post" or "by train at or train. the end of the address, and in the latter case he must deposit Is. to cover the cost of conveyance. service. 13. If the sender wishes his telegram to be posted in this country to some Mixed postal and place abroad, he must write the words " post- (which will be charged telegraph for) at the end of the address; and he must prepay the postage. Thus a telegram of 25 words intended to be posted from London to Calcutta, viâ · Brindisi, should be prepaid: Is. 8d., viz., Is. 3d. for its transmission by wire, and 5d. for postage. བལ་ D } Receipts. Embossed stamps removed from "A 1" form. Repetition of telegrams. Cypher tele- 50 INSPECTION. The duty on a receipt cannot be denoted by two halfpenny postage stamps. The new penny stamp bears round its margin the words "Postage and Inland Revenue, One Penny," the form adopted being that of the old receipt stamp, with "Postage and" prefixed to the other words. 15. An embossed stamp which has been removed from a spoiled and unused "A1" form will be accepted in payment of a telegram; but mutilated or ΑΙ defaced stamps will not. 17. Telegrams can be repeated at the request of the sender, if he desires to adopt this security against risk of error, by being signalled back from each office at which they are received to the office from which they are forwarded. No copy of the telegram is, in such case, given to the sender. The charge for repetition is one half the ordinary tariff; fractions of threepence being reckoned as twopence. 18. Telegrams containing mercantile quotations and telegrams written in grams should be cypher, or according to a preconcerted code, should always be repeated. repeated. Telegrams re- peated half cost. Telegrams can be posted. Telegram can be handed to rural letter carriers. Combinations of words not counted as one word. Exceptional com- pound words. Abbreviations recommended. 19. If the receiver of a telegram doubts its accuracy, he may have it repeated by depositing half the amount paid for its transmission to him. The money will, however, be refunded to him if it should turn out that the telegram has been inaccurately transmitted. 23. Persons who wish to avoid sending to a telegraph office may, without additional charge, post a telegram form enclosed in an envelope addressed "Telegram, Immediate," in a wall or pillar box, or in the letter box of a Receiving Office or Sub-Post Office. Telegrams so posted are sent on by the next collection to the nearest Telegraph Office, are thence transmitted by wire and are delivered free of extra charge, provided the proper amounts for the number of words contained in them, and for porterage when they have to be delivered beyond the limits of the free delivery, have been prepaid. The period of arrival at the Telegraph Office is regarded as the time of receipt from the public. Telegrams may also be posted not enclosed in envelopes, and when so posted they will be treated in the same manner as those enclosed in envelopes. 30. Telegrams may be handed to Rural Letter Carriers on their way to Telegraph Offices. 32. No combination of two or more words is counted as one word, with the exception of those words which are ordinarily written as one, or coupled by 39 66 alms- hyphens, such as non-delivery," "sub-lieutenant, mother-in-law, houses, O'Neil," "McDonald, ""Newcastle-on-Tyne," &c. 59 66 “ 33. The following exceptional compound words are charged for as one word: Midday. Midnight. Noonday. Se'nnight. Cannot. To-day. To-night. | Yesterday. Threepence, &c. To-morrow. Halfpenny. Yesternight. Twopence. So, too, are names with the prefix "St.," such as St. Albans, St. Asaph, &c. 34. Abbreviations of auxiliary verbs designated by apostrophes (such as allowed, but not can't, won't, don't, I'll, you'll, couldn't, shouldn't, &c.) are counted as one word. By writing words in this way, however, there is a greater risk of error. 35. Numbers expressed in figures are counted as so many words, according to the number of figures employed. For example, "7" counts as one word, Fractions are '12 as two words, 385" as three words; and so on. counted according to the number of figures employed to express the quantity, one word being added for the bar or mark of division between the numerator Each figure reckoned one word. وو } & ? } $ INSPECTION. 51 With respect to the Receipt, the first Act which sub- jected it to stamp duty was the 23 Geo. III., c. 49, and Receipts. from the passing of this Act down to that of the 16 and 17 Vict., c. 59, 4th August, 1853, various other statutes were and denominator-thus, "" counts as three words, "2" as three words, "1093" as six words. In groups of figures intended to express time, any bar or stop is counted as one word: thus, 12-35 counts as five words. Ordinal numbers are charged in the same way as cardinal numbers, with the addition of one word for the affix st, nd, rd, or th, as the case may be. 36. Where a group of figures is followed by a letter, the letter is counted as Groups of a word thus, 104a counts as four words. : figures and letters. 37. The initial letters denoting the several London Postal Districts are each District initials counted as one word; for instance, "S.W." is counted as two words. 38. All names are counted as compound words if composed of more than Names. one word. For example, City of Brooklyn" is counted as three words; 66 "New Orleans," two words; "Park Lane," two words. 39. When the sender desires words to be underlined, or placed in a paren- Parentheses, &c. thesis, or within inverted commas, two extra words are charged for. >> 40. When the sender desires that special instructions, such as private," "Private," confidential," "to be opened at once, or the like, shall be written on the "confidential," envelope of the message, he must write those instructions immediately after &c., on envelope the address of the receiver. The instructions are charged for as part of the message. of message. to a second 41. The sender, upon being informed that his message cannot be delivered Sender must in consequence of the addressee being unknown at the address furnished, must, pay for a fresh should he furnish a corrected address, or require the telegram to be presented message if sent á second time, pay the cost of a fresh telegram. In the latter case, should it address. afterwards turn out that the failure in the first instance was the fault of the Department, the extra charge will be refunded. 42. The sender may have his telegram cancelled, and if the application be Cancelling made before the commencement of transmission the sum paid will be returned, telegrams. on application to the secretary, at any time within three calendar months; but if transmission has commenced, no part of the sum paid will be returned. If transmission has been completed, an official telegram, prepaid by the sender as an ordinary telegram, will be sent to the Postmaster at the Terminal Office. In this case no part of the sums paid will be returned, but if the official telegram should arrive too late to accomplish its object, the sender will be informed that the attempt to cancel his telegram has failed. 43. If the addressee of a telegram is known to the messenger, it may be Telegrams delivered wherever on the road the messenger may meet him, but only on delivered on payment of such sum (if any) as would have been payable if the telegram had been delivered at its address. the road. 44. When in consequence of an interruption of communication a telegram Interruption of cannot be transmitted to the Terminal Office, notice of the interruption is communication. given to the sender, together, if practicable, with a statement of the cost of delivery by special means, and on payment of such cost the telegram will be delivered. If, however, the sender prefer to cancel the telegram, the amount paid by him will be returned, on application to the secretary, at any time within three calendar months. 45. If the sender cannot be found, or, if found, declines either to cancel the telegram or to pay for its delivery by special means, the telegram will be delivered without extra charge by post. 50. The Department is not liable for losses incurred through the incorrect transmission, delay, or non-delivery of telegrams. Non-liability of Post Office. $ $ ' * 1 $ $ } Receipts. 52 INSPECTION. passed containing additional provisions affecting the instru- ment, as well as altering, and latterly considerably increasing, the amount of duty. The return, however, from this source of revenue fell so far short of what was expected, and the evasion of the duty became so general under the high rates imposed from 3d. for sums between £5 and 10 to 10S. for sums of £1000 and upwards, the duty from the passing of 3 and 4 William IV., c. 23, not affecting sums under £5 that at last Mr. Gladstone, in 1853, wisely amended the law by substituting one uniform penny stamp for all receipts for sums of £2 and upwards. This was effected. by the above-mentioned statute of 16 and 17 Vict., c. 59, and so successful was the result, that from £180,491, the amount realized under the higher rates for the year ending 5th January, 1853, the yield rose in the following year, under the new system, to £259,670, there having, according to the Parliamentary return, been sold in the last quarter of 1853, 21,078,585 penny receipt stamps; in the first quarter of 1854, 14,636,587; in the second, 12,756,493; and in the third, 13,849,138-making a total during the year of 62,320,803, realizing £259,670 os. 3d. Including the extension of the penny stamp to cheques, the return from penny stamps has now increased to nearly £900,000 per annum. Under the new system likewise morality has benefited, and a stop has been put to the recurrence of such cases as that which came before Lord St. Leonards, in the Court of Chancery, shortly before the passing of the above Act, a case which had already given rise to seven trials, the whole of the costly contention having arisen from a receipt having been written out upon a stamp insufficient in value by sixpence.* *The Stamp Act of 1870, 33 & 34 Vict., c. 97, thus deals with the receipt: £ "Receipt given for, or upon the payment of, money amounting to £2 or upwards EXEMPTIONS. S. d. Ο Ο Ι (1.) Receipt given for money deposited in any bank or with any banker, to be L INSPECTION. 53 With reference to the halfpenny Post Wrappers, it has been announced that from 1st January, 1882, a reduction Post Wrappers. will be made in the charge to the extent of 6d. per parcel of 480. When purchased in quantities of 60, or multiples accounted for and expressed to be received of the person to whom the same is to be accounted for. (2.) Acknowledgment by any banker of the receipt of any bill of exchange or promissory note for the purpose of being presented for acceptance or payment. (3.) Receipt given for or upon the payment of any Parliamentary taxes or duties, or of money to or for the use of Her Majesty. (4.) Receipt given by the Accountant-General of the Navy for any money received by him for the service of the navy. (5.) Receipt given by any agent for money imprested to him on account of the pay of the army. (6.) Receipt given by any officer, seaman, marine, or soldier, or his represen- tatives, for or on account of any wages, pay or pension, due from the Admiralty or Army Pay Office. (7.) Receipt given for the consideration money for the purchase of any share in any of the Government or Parliamentary stocks or funds, or in stock of the East India Company, or in the stocks and funds of the Secretary of State in Council of India, or of the governor and company of the Bank of England, or of the Bank of Ireland, or for any dividend paid on any share of the said stocks or funds respectively. (8.) Receipt given for any principal money or interest due on an exchequer bill. (9.) Receipt written upon a bill of exchange or promissory note duly stamped. (10.) Receipt given upon any bill or note of the governor and company of the Bank of England or the Bank of Ireland. (11.) Receipt indorsed or otherwise written upon or contained in any instru- ment liable to stamp duty, and duly stamped, acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest, or annuity thereby secured or therein mentioned. (12.) Receipt given for drawback or bounty upon the exportation of any goods or merchandise from the United Kingdom. (13.) Receipt given for the return of any duties of customs upon certificates of over-entry. (14.) Receipt indorsed upon any bill drawn by the Lords Commissioners of the Admiralty, or by any person under their authority, or under the authority of any Act of Parliament, upon and payable by the Accountant- General of the Navy. SEC. 120. The term "receipt" means and includes any note, memorandum, or writing whatsoever, whereby any money amounting to two pounds or upwards, or any bill of exchange or promissory note for money amounting to two pounds or upwards, is acknowledged or expressed to have been received, or deposited, or paid, or whereby any debt or demand, or any part of a debt or demand, of the amount of two pounds or upwards, is acknowledged to have been settled, satisfied, or discharged, or which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person. 1 t 1 { Post Wrappers. Newspaper Wrappers. 54 INSPECTION. of 60, the prices will be:-For 60, 2s. 104d.; for 120, 5s. 8½d.; for 240, IIS. 5d.; for 480, 22s. 10d. When purchased in smaller quantities the prices will be :-For 1, 3/4d.; for 2, 114d.; for 3, 134d.; for 4, 2½d.; for 5, 3d.; for 6, 3½d.; for 7, 44d.; for 8, 434d.; for 9, 54d.; for 10, 534d. These wrappers may be obtained uncut, in quarter reams, containing 120 sheets of 14 wrappers on each sheet, by making special application for them at the post office. The price for the quarter ream is £3 18s.* SEC. 121.-The duty upon a receipt may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the receipt is given before he delivers it out of his hands. SEC. 122.—A receipt given without being stamped may be stamped with an impressed stamp upon the terms following: that is to say, (1.) Within fourteen days after it has been given, on payment of the duty and a penalty of five pounds: (2.) After fourteen days, but within one month, after it has been given, on payment of the duty and a penalty of ten pounds : and shall not in any other case be stamped with an impressed stamp. SEC. 123.—If any person (1.) Gives any receipt liable to duty and not duly stamped, (2.) In any case where a receipt would be liable to duty refuses to give ai receipt duly stamped; (3.) Upon a payment to the amount of two pounds or upwards gives a receipt for a sum not amounting to two pounds, or separates or divides the amount paid with intent to evade the duty : he shall forfeit the sum of ten pounds." Post Wrappers are now sold at the following prices Bearing Halfpenny Stamp. 123 4 3/4 d. 6 3/2d. Bearing Penny Stamp. I 14d. 14d. 7 44d. 2 24d. 56 52d. - 134 d. 8 434 d. 3 34d. 7 - 22d. 3d. 6½d. 7½d. 9 54d. 4 44d. - 8 8½d. ΙΟ - 534 d. Rates. 5 17. 25. 10d. per parcel of 480. Il. Is. 3d. per parcel of 240. Uncut sheets of these Wrappers, impressed with halfpenny or penny postage stamps, can be obtained at any Post Office by giving two or three days' notice. They are sold only in quarter reams of 120 sheets, each sheet containing 14 wrappers, and the prices per quarter ream are £3 18s. for the wrappers bearing the halfpenny stamp, and £7 8s. for those bearing the penny stamp. And with reference to the Newspaper and Book Posts, the following are the principal regulations : For each inland Newspaper, whether posted singly or in a packet, the postage, when prepaid, is one halfpenny; but a packet containing two or more registered Newspapers is not chargeable with a higher rate of postage than would be chargeable on a book packet of the same weight, viz., one halfpenny for every 2 oz. or part of that weight. A INSPECTION. 55 Of Post Cards, "there is," as stated in the official regula- tions, "no legal way of sending a letter, other than a Post Cards. Circular Letter, through the post for a postage of a halfpenny, except by means of a Post Card. A Newspaper posted unpaid, or a packet of Newspapers posted either unpaid Unpaid or insufficiently or insufficiently paid, is treated as an unpaid or insufficiently paid book packet paid. of the same weight. The postage must be prepaid either by an adhesive stamp, or by the use of Prepayment. a stamped wrapper. In order that no failure may occur in the delivery of newspapers through the covers becoming detached, it is recommended that the addresses be written on exposed parts of the newspapers themselves as well as on the covers. Every Newspaper must be so folded as to admit of the title being readily seen. How folded. A Newspaper or packet of Newspapers which contains any enclosure (except Enclosures. Supplements) is charged as a letter, unless the enclosure be such as might be sent at the book rate of postage, and the entire packet be sufficiently prepaid as a book packet, in which case it is allowed to pass. A Newspaper which has any letter, or any communication of the nature of Anything of the a letter, written in it or upon its cover, is charged as an unpaid or insufficiently nature of letter paid letter. forbidden. No packet of Newspapers may be above 14 lbs. in weight, two feet in length, Weight and one foot in width, or one in depth. BOOK POST. The postage is one halfpenny for every 2 oz. or part of that weight. dimensions. Postage by Book Post. A packet posted wholly unpaid is charged with double the book postage; and if posted partially prepaid, with double the deficiency. Circulars,—i.e., letters which, from internal evidence, appear to be Circulars. intended for transmission in identical terms to several persons, and the whole or the greater part of which is produced by means of ordinary type, engraving, lithography, or any other mechanical process-may be sent by book post. A book-packet may not contain any letter, or communication of the nature of a letter (whether separate or otherwise), unless it be a circular-letter; nor any enclosure sealed or in any way closed against inspection. If this rule be infringed, the entire packet is charged as a letter. Entries merely stating who sends the book, &c., or to whom it is given, are not regarded as a letter. It is the duty of Postmasters, whenever they have ground for suspecting an infringement of any of the above conditions, and occasionally, even when there is no ground for suspicion, to open and examine book packets posted at or passing through their office. In order to secure the return of book-packets which cannot be delivered, the names and addresses of the senders should be printed or written outside; thus, From of "" A book-packet may be posted either without a cover (in which case it must Must be open at not be fastened, whether by means of gum, wafer, sealing wax, postage stamp, both ends; but or otherwise), or in a cover entirely open at both ends, so as to admit of the may be tied with string. contents being easily withdrawn for examination; otherwise it is treated as a letter. For the greater security of the contents, however, it may be tied at the ends with string; Postmasters being authorised to cut the string in such cases, although if they do so they must again tie up the packet. $ f { A Post Cards. Weight and dimensions. May be kept back. 56 INSPECTION. "It must not be supposed that, because a Post Card, which is open to inspection, may have a letter written or printed upon it, any card whatever, and even any piece of paper, if only it be placed in an open wrapper, may be sent through the post with a letter written or printed upon it for a postage of a halfpenny. "It is well, therefore, to explain (( (1.) That the letter-rate of postage must be prepaid, for any communication of the nature of a letter, whether it be placed in a closed envelope or in an open cover, unless a Post Card be used for the purpose, or unless the letter be a 'circular letter,' i.e., a letter having internal evidence that it is intended for transmission, in identical terms, to several persons, and the whole or greater part of which is produced by means of ordinary type, engraving, lithography, or any other mechanical process. (2.) That cards having merely a halfpenny adhesive stamp affixed to them must not bear any com- munication of the nature of a letter, unless it be a 'circular letter.' 'Large numbers of letters, not being circular letters, are from time to time found in halfpenny wrappers, contrary to the express provisions of the book post; and, as the officers of the department are instructed to surcharge all such letters with additional postage, it will save not only trouble to the Post Office but annoyance to the public, if care be taken always to pay letter postage for letters other than circular letters, unless they be written or printed on Post Cards. No book-packet may be above 5 lbs. in weight, nor above one foot six inches. in length, nine inches in width, or six inches in depth, unless it be sent to or from one of the Government offices. When, owing to a great and unusual influx of letters, books, &c., the transmission or delivery of the letters would be delayed if the whole mail were dealt with without distinction, book-packets may be kept back till the next despatch or delivery. * ? 1 INSPECTION. 57 ५ "Official Post Cards impressed, or private Post Cards embossed, with a halfpenny stamp (adhesive stamps not Post Cards. being accepted in payment of the postage) may be trans- mitted between places in the United Kingdom with letters printed or written upon the back. back. When, owing to a great and unusual influx of letters, May be kept books, &c., the transmission or delivery of the letters would be delayed if the whole mail were dealt with without distinction, Post Cards (unless paid for and posted as late letters) may be kept back until the next despatch or delivery." Inland Post Cards are sold at the following prices :- Thick Cards. Thin Cards. I - åd. 4 2 d. I 3d. 4 21 d. 2 Id. 5 2d. 6 3 d. 2 - Ild. 1 d. 5 3d. - 4d. 3 工 ​Iåd. 13 d. 6 3/2/d. Prices of Inland post cards. 3 13s. 4d. per parcel of 240. £1 3s. 4d. per parcel of 480. Uncut sheets of these cards can be obtained at any Post Office by giving two or three days' notice. They are sold only in quarter reams of 120 sheets, each sheet containing 42 cards, and the prices are £14 per quarter ream for thick cards, and £12 5s. for thin cards. For Registration purposes, the following are some of the Registration. regulations :- The fee for registering a letter, newspaper, book- Fee for inland registration. packet, or other article passing through the post between any two places in the United Kingdom is twopence. must be "Every article presented for registration must be enclosed Contents in a strong cover, securely fastened. If the article contains secured. money, it must, in order to gain the benefit of the guarantee described in the conditions, foot of next page, be enclosed in a Registered Letter Envelope sold by the Post Office; and, if coins are sent, they must on no account be put in loose, but must be packed and enclosed in such a way as to move about as little as possible. (( Every article to be registered must be given to an How to register. agent of the Post Office, and a receipt obtained for it; and 3 How to register. Registered letters to be accompanied by list in duplicate. Security from registration. Treatment of inland letters containing &c. 58 INSPECTION. it should on no account be dropped into a letter-box. If, contrary to this rule, an article marked 'Registered' be dropped into a letter-box, it will, if directed to any place in the United Kingdom, be liable to a registration fee of 8d., instead of the ordinary fee of 2d. h “When several letters are sent by the same person for registration, they should be accompanied with a list (in duplicate) of the addresses; one list to be retained at the Post Office, and the other, when signed, to be returned by the bearer. This practice (which is adopted by many bankers) saves time both to the public and to the Department. “The registration of articles makes their transmission much more secure, inasmuch as they can be traced through their whole course. Thus the loss of a registered article is of rare occurrence. Nevertheless, large sums of money or other articles of great value should not be sent through the post, even if registered, as the machinery of the Department is not arranged with a view to such transmissions. If sent unregistered, valuable articles are exposed to risk, and offer a temptation which ought not to be afforded. "Inland letters or packets which contain coin, watches, or jewellery, if posted without registration, are nevertheless coin,jewellery, treated as registered, and charged on delivery with a regis- tration fee of 8d., in addition to the ordinary postage; and any such letters or packets which cannot be registered in time to be forwarded by the mail for which they are posted, are detained for the next despatch. Conditions under which Post Office may make "By law the Postmaster-General is not responsible for the safe delivery of registered articles, but henceforth he will be prepared to make good the contents of a registered of a registered article lost while passing through the Post to the extent of £2, in certain cases, provided— good contents letter lost in the Post. (a) That the sender duly observed all the conditions of registration required; (b) That the article was securely enclosed in a reason- + រ ふ ​INSPECTION. 59 under which may make ' good contents of a registered letter lost in ably strong cover; and, if it contained money, Conditions that it was enclosed in one of the Registered Letter Post Office Envelopes sold by the Post Office for the purpose; (c) That application was made to the Secretary of the Post Office immediately the loss was discovered; [When the complaint is that the contents of a letter or packet have been extracted, the envelope must accompany the application, otherwise the question will not be entertained.] (d) That the Postmaster-General, whose decision shall be final, is satisfied that the loss occurred while the article was in the custody of the British Post Office, and was not caused by any fault on the part of the sender. [The word 'loss' here does not include damage to an article which in fact reaches its destination, or destruction by fire or shipwreck, or by the dis- honesty or negligence of any person not in the employment of the Post Office.]" the Post. of Bank Whenever Bank Notes are sent by post, even in registered Registration letters, they should be cut in halves, and the second halves Notes. should not be posted until it has been ascertained that the first halves have been received; and further, in order to afford the means of identification, a memorandum should always be made of the number of each bank note. Registered Letter Envelopes, bearing a twopenny stamp Registered embossed on the flap for the payment of the registration letter fee, are of five sizes, and are sold at the following prices :- J 2 d. each, or envelopes. F.-54 in. x 3 in. G.-6 in. x 3 in. H.-8 in. × 5 in. I.—10 in. × 7½ in. K.—11½ in. X 6 in. 25. 23d. per packet of 12. 2ąd. each, or 25. 7d. per packet of 12. I 3d. each, or 25. 10d. per packet of 12. The Railway Stamps are kept at the leading railway Railway stations only, but are easily procurable through any other railway station. They are issued from a halfpenny up to Stamps. { Railway Stamps. No change of entries in Stamp and Postages Accounts. Penny Post. Rates of Postage. 60 INSPECTION. two or three shillings, though those in general use.range from a halfpenny to sixpence, the halfpenny stamps being, as a rule, supplied in quantities of not less than 2s. 6d. or 5s., and the penny ones of not less than IOS. They are used only for franking packets of newspapers and "news letters," or communications and reports for newspapers, between places where the postal deliveries are infrequent or imperfect. The charge varies both with the weight of the packet and the distance to which it may be sent, the regulations, however, affecting these stamps slightly varying amongst the different railway companies. It may be noted that in the assimilation of the stamps, as above seen, no change will be necessitated in the entries under the respective accounts, for Stamps ante pages 13 and 14, and Postages, ante page 15, the former account being debited as usual with stamps used for telegraphic purposes, and for receipts, the entries in Postages account remaining also undisturbed.* * With reference to the Penny Post, introduced in 1840, it is, as has been remarked, a curious coincidence that 223 years since a penny post should have been suggested by a writer of the same name as the promoter of the modern reform, Sir Rowland Hill. In the library of the British Museum is a small book, entitled : "A Penny Post; or, a Vindication of the Liberty and Birthright of every Englishman in carrying Merchants' and other Men's Letters against any Restraint of Farmers of such Employments. By John Hill, London. Printed in the year 1659." The rates of postage, when prepaid, are now as follows, viz. :— 3 For a letter not above I oz. "" Id. above I oz. but not above 2 oz. 2 Oz. 4 OZ. 4 oz. 1½d. 2d. "" "" 6 oz. "" "" 6 oz. "" 8 oz. "" 8 oz. IO OZ. Unpaid and insufficiently paid letters. Dimensions. Where to affix the Stamps. A letter above the weight of 12 oz. is ounce, beginning with the first ounce. and 15 oz. must be prepaid Is. 3d. IO OZ. - 22d. 3d. 32d. 12 OZ. 4d. liable to a postage of Id. for every Thus, a letter weighing between 14 A letter posted unpaid is chargeable on delivery with double postage; and a letter posted insufficiently prepaid is chargeable with double the deficiency. No letter may be above 18 inches in length, 9 inches in width, or 6 inches in depth, unless it be sent to or from one of the Government Offices. Stamps should be placed on the front, that is, on the address side of the letter, and in the right-hand upper corner. On re-directed letters care should be taken not to place fresh stamps over those which have been previously used. t هم { INSPECTION. 61 Of the sections devoted to Bills of Exchange, that in connection with Bills Current Account will be a transcript of Bills of Exchange. the amounts outstanding in the Branch Bill Diary, the total of which should agree with the balance in the General Ledger. The Bill Diary should be balanced at least monthly by the Branch. The following miscellaneous information may prove serviceable :— All Head Post Offices are likewise Money Order Offices, Post Office Savings Head Post Banks, and Telegraph Offices. Offices. At Post Offices, which are not Money Order Offices, Sub-Postmasters are Sub-Post required to keep halfpenny and penny stamps, post cards, and registered letter Offices. envelopes only; but they are bound to procure, on application, postage stamps of other values, embossed postage envelopes, newspaper wrappers, and telegraph stamps. At every Money Order Office the Postmaster is required to keep, for sale, a Money Order Offices. sufficient stock of the different postage stamps in use, envelopes with an embossed penny postage stamp, registered letter envelopes, newspaper wrappers, with impressed halfpenny and penny postage stamps, and inland and foreign post cards. The Embossed Postage Envelopes are of four sizes, viz., A. 4¾4 × 31 ins. Embossed (square shape, white), B. 54 × 33% ins. (blue), C. 54 × 3 (white), and D. Postage 434 × 234 (white), and are sold at the following prices X A. (Square shape, white.) 123 D - - - 4 - - 14d. 22d. 32d. 434d. 6 8 12 24 - os. 7d. os. 9/2d. Is. 2d. - 2s. 4d. 1 2 3 4 B, C, and D Sizes. 14d. 24d. 6 8 - os. 6½d. os. 834d. 34d. 42d. 12 Is. Id. 24 - 25. 2d. Envelopes. By the use of these envelopes, all risk of the stamp being detached may be avoided. Every Rural Messenger is authorised to sell penny postage stamps and Rural Messen- Registered Letter Envelopes; and when any person applies to him for postage gers may sell stamps the Messenger must either supply them, or (if he have none in his Postage Stamps possession) must, without extra charge, receive the postage in money, and on his arrival at the Post Office obtain postage stamps for the amount, and affix them carefully to the letters. Payment of postage cannot be made by means of postage stamps which have Stamps which been torn, cut, or otherwise rendered imperfect; or of embossed, or impressed, cannot be used stamps cut out from the envelopes, cards, or wrappers, on which such stamps for postage. were embossed or impressed (even although the stamps have not been before used or sent by post). Applications for allowance on spoilt postage stamps; Spoilt stamps. embossed envelopes, post cards, or newspaper wrappers, which have not passed through the post, should be made to the office of Inland Revenue, Somerset House, London, or, if in the country, to the Distributors of Stamps for the District. Such applications, however, can only be entertained if the stamps or other articles have been spoilt or become useless within the period of six months preceding the date of application. In the case of envelopes, cards, or wrappers, the applications must be accompanied by these articles intact; as no allowance can be granted on the embossed, or impressed, stamps if cut therefrom. 髯 ​Postmasters are not allowed to return any letter or other packet to the Letters when writer or sender, or to any one else, or to delay forwarding it to its destination once posted can- according to the address, even though a request to such effect be written thereon, not be returned. > { 1 Bills of Exchange. Postmasters not 62 INSPECTION. The only Bills which should be in possession of the Branch are those named in the remaining sections; and, after due insertion of these Bills under their respective headings, the Inspector will institute a comparison of those Postmasters are not bound to weigh any letters or other packets for the bound to weigh public, but they may do so if their duty be not thereby impeded. letters. Letters to be called for at Pro- vincial Offices. Letters to be called for at A letter addressed to a Post Office to be called for is retained one month; and, if not called for by the end of that time, is sent to the Returned Letter Office to go back to the writer. But if the letter be addressed to a Post Office · at a seaport town for a person on board a ship expected to arrive at that port, it is kept two months. All letters addressed to Club Houses, hotels, and other places where letters are received to be called for, should be returned to the Post Office as soon as clubs, hotels, &c. it has become evident that they will not be called for. In the London District such letters should, under ordinary circumstances, be returned to the Letter Carriers within a month of their delivery. How disposed of in Returned Letter Office. Hot climates. Complaints about missing letters, &c. Penalties for sending letters otherwise than through the post. Exceptions from exclusive privi- lege of Post Office conveyance of in letters. On reaching the Returned Letter Office, a letter originating in the United Kingdom is at once opened, and if found to contain the writer's address is returned to him. If it does not contain either the writer's address or an article of value, the letter is destroyed. Any letter or packet which, on being opened, is found to contain value is, for its safety, recorded and returned registered, and, unless registered at the time of posting, the registration fee of 2d. is charged on the sender. After being retained for periods varying from one week to two months, Foreign and Colonial letters are, with few exceptions, returned (unopened) to the country from which they were received. The practice of sealing letters passing to and from the East and West Indies, and other countries with hot climates, with wax (except such as is specially prepared), is attended with much inconvenience, and frequently with serious injury, not only to the letters so sealed, but to the other letters in the mail, from the melting of the wax and adhesion of the letters to each other. The public are therefore recommended, in all such cases, to use either wafers or gum, and to advise their correspondents in the countries referred to, to do the same. When complaint is made of a letter or other postal packet being lost, missent, or delayed, information, as precise as possible, regarding all the facts of the case should be furnished, together with any documents that may throw light upon the matter. The day and hour at which the letter, &c., was posted, as well as the office at which and the person by whom this was done, should always be stated; and when possible, the cover or wrapper in an entire state should be sent, in order that the place of delay may be ascertained by an examination of the stamps. Any person conveying (otherwise than by the Post) a letter not exempted from the exclusive privilege of the Postmaster-General incurs, by law, a penalty of £5 for every letter, and £100 for every week the practice is con- tinued. The sender is also liable to a penalty of £5 for every letter. The exclusive privilege of the Postmaster-General is confined strictly to letters, and does not therefore extend to newspapers, books, or money; any of which may be legally conveyed by other means. The following kinds of letters also need not be sent through the Post :- Ist. Letters sent by a private friend, to be delivered by such friend to the person to whom they shall be directed; 2nd. Letters sent by a messenger on purpose, concerning the private affairs of the sender or receiver thereof; commissions or returns thereof; and affidavits and writs, process or proceedings or returns thereof, issuing out of a Court of Justice; INSPECTION. 63 "To be Credited Bills for Collection," "To be Accounted for to Correspondents," and "Held over for Credit of Clients," with the entries in the corresponding sections Bills of at the end of the Bill Register, if a separate Register be not kept for them, and the amounts, with abridged 3rd. Letters sent out of the United Kingdom by a private vessel (not being a packet boat); 4th. Letters of merchants, owners of vessels of merchandize, or of the cargo or loading therein, sent by such vessels of merchandize, or by any person employed by such owners for the carriage of such letters, according to their respective directions, and delivered to the respective persons to whom they shall be directed, without paying or receiving reward or profit for the same in anywise; 5th. Letters concerning goods or merchandize sent by common carriers, to be delivered with the goods which such letters concern, without hire or other advantage for receiving or delivering such letters. No person, however, is authorised to make a collection of such excepted etters for the purpose of sending them in the manner above described. Exchange. The following persons are expressly forbidden to carry a letter, or to receive Persons for- or collect or deliver a letter, even though they shall not receive hire or reward bidden to carry for the same :- Ist. Common known carriers, their servants or agents, except a letter con- cerning goods in their carts or waggons, or on their pack horses; and owners, drivers, or guards of stage coaches; 2nd. Owners, masters, or commanders of ships, vessels, steam boats, or boats called or being passage or packet boats, sailing or passing coastwise or otherwise between places within Great Britain or Ireland, or between, to, or from ports within Her Majesty's dominions or territories out of the United Kingdom, or their servants or agents, except in respect of letters of merchants, owners of ships, or goods on board; 3rd. Passengers or other persons on board any such ships, vessels, steam boat, passage or packet boat; 4th. The owners of or sailors or others on board a ship or boat passing on a river or navigable canal within the United Kingdom or other Her Majesty's dominions. letters. London and its environs are divided into Eight POSTAL DISTRICTS. The London Postal following are the names of the Districts, with their abbreviations, viz. :— Districts. Eastern Central Eastern Northern North Western E.C. E. N. N.W. South Eastern S.E. South Western Western S.W. W. Western Central...... W.C. By the addition of the initials of the Postal District to the address of a letter for London or its neighbourhood, increased security is afforded against mis- delivery or delay, and the work of the Post Office is facilitated. The Fee on Inland "Late Letters" has been reduced to a halfpenny on each letter; but there is no alteration as regards Foreign Letters, Registered Letters, Newspapers, or Book Packets. Late letters. Letters from abroad addressed to the Poste Restante, London, are retained Letters how long for two months. Letters from provincial towns similarly addressed are kept. retained one month, and letters posted in London one fortnight; all such letters, at the end of these periods, being sent to the Returned Letter Office for disposal in the usual manner. 1 Bills of Exchange. Time occupied in course of Post. 64 INSPECTION. particulars, should also be found in the Miscellaneous Bill Diary, into which they are inserted under the respective dates when due, in order that the bills may be kept better in view, and to serve as a check against their being APPROXIMATE TIME OCCUPIED IN COURSE OF POST FROM LONDON TO CERTAIN OF THE MORE IMPORTANT PLACES OF THE World. Name of Place. Accra Addah Adelaide · Aden Akyab Alexandria Algiers Ambriz • GAGNHOUND | Days. 24 5 12 45 15 "3 Hours. Name of Place. Hours. | Days. Name of Place. 27 38 Carril Christiania Cobija. Cologne Colon • · Congo...... Constantinople :- via Varna Brindisi Copenhagen · 33 3 • 40 21 43 8 5∞ 2 Coquimbo, via Magellan 42 70 15 .. • Lagos La Guayra Lisbon Little Popo Loanda Lucerne Lyons.. Maceio Madeira.. Madras Madrid Malaga .. .. ,} Amsterdam Antigua, via St. Thomas 14 Barbadoes 16 Arica, via Panama "" Antwerp... Ascension Athens · · Auckland, via San Francisco Bahamas Bahia • Bâle • Days Hours. H+ o www 29 47 23 322 12 18 5 22 20 II Crete 37 Cyprus 8 Malta.. 28 Delagoa Bay. 36 5 Demerara :- .... Marseilles Martinique :- 2344p 3 12 4 12 I 6 via Barbadoes 16 via Barbadoes 14 HHW 39 St. Thomas.. 20 16 Dominica 15 18 Dresden · 051 St. Thomas.. 15 Mauritius .... 29 12 Melbourne.. 40 I Falkland Islands + 35 Milan I 12 13 .. 4 36 Monrovia E Barbadoes, Direct Barcelona via S. Thomas] 16 ... Batavia Bathurst (Gambia) Bayonne •• Faroe Islands Fernando Po.. Frankfort-on-Maine.. I 18 Florence 32 15 3 H Gaboon I 6 Geneva Belize, via New Orleans 18 Berlin.. Genoa I 2 Goree .. Bermuda, via Halifax.. 15 Berne.. Beyrout Bombay Bonny Bordeaux Bremen Brindisi · • Brisbane:- • "" NewYork 16 via Torres Straits "" Melbourne ... San Francisco British Columbia Brussels... Buda-Pesth .. • Buenos Ayres Bunder Abbas Bushire Busreh Cadiz Cairo Calcutta.. · • + • 9 18 33 Gibraltar Gothenburg 2 1 I Mollendo, via Panama.. 35 Monte Video.. 8 Montserrat, West Indies Moscow.. • 117 Moulmein Mozambique, via Brindisi SWG 38 I 47 4 .. • 3 14 Munich 20 Muscat IO Naples Natal 8 Grand Bassa.. Grand Canary Grenada, via Barbadoes 15 22 St.Thomas 17 22 Grey Town I 2 Guadaloupe, via St. 2 18 awŏ NOON: NAA± 26 ΙΟ .. • · 24 Thomas.. 14 Barbadoes 15 Guayaquil, via Panama 26 Hagué, The Half Jack Hamburg Havana Hayti:- Jacmel 22 I 16 17 Port au Prince :- via Southampton.. 16 Liverpool "" 3|r2| Hong Kong • Honolulu Iceland Inhambane Interlaken.. Newfoundland, St. John's New York... Nice •• 19 26 .... 15 3 12 27 26 .. Ι ΙΟ 24 26 426 2 20 : 8: 8: Nova Scotia, Halifax. Nuremberg 16 Odessa 22 .. • 37 24 ΤΟ 35 5 H ∞ Old Calabar 8 Oporto Panama Paris Payta, via Panama Penang Pernambuco.. Perth, Western Australia. Point de Galle • .. I 13 8 320 ∞OHOHM∞O +2:000 22 36 20 Port Darwin.... 50 • Porto Rico (San Juan).. 15 116 Puerto Cabello.. 25 38 ... 16 18 12 Quitta.... 21 Punta Arenas (Magellan) Quebec Quillimane Rangoon 33 .... 10 29 28 25 Iquique, via Panama ▼ 21 Caldera, via Panama 4I Callao, 32 Cameroons. 35 Cape Coast Castle 24 Isles de Los Cape Palmas... 21 Jamaica Cape Town • 21 Jeddah Carthagena (U. S. of Colombia) • 24 King George's Sound.. 33 Kurrachee.. • ΙΟ 1 , 1 } INSPECTION. 65 overheld. The bills under the first of these three headings are those from Head Office, and the amounts of which, Bills of Exchange. when received, are passed to the credit of "Bills for Collection Account." The bills under the succeeding Time occupied APPROXIMATE TIME OCCUPIED IN COURSE OF POST FROM LONDON TO CERTAIN OF THE MORE IMPORTANT PLACES OF THE WORLD.--Continued. in course of Name of Place. Hours. | Days. Name of Place. Days. Hours. Name of Place. Hours. Days, Riga Réunion.. Rio de Janeiro.. Rome . Rotterdam Saïgon St. Helena · • 215 Salt Pond 28 21 • Samoa (Navigator Islands) 53 2 18 San Francisco 34 • 40 3 H 18 St. Kitts, via St. Thomas 14 ". St. Lucia :- Barbadoes 16 via Barbadoes St. Thomas.. St. Nazaire St. Petersburg 14 • IS I 13 Santa Martha Santander Santos Savanilla Senegal Seychelles Shanghai ** ·· ·· • • • • • Sierra Leone.. 2 Singapore Stockholm.. U JE W Z INN RUN : Tiflis Tours Trieste IO 16 3 Trinidad, via Barbadoes 14 12 Turin Valparaiso, St. Thomas 18 29 I 10 via Magellan Panama .. Venice Vera Cruz. Vienna ... 3 w 932 5HM 39 43 4 25 I 20 Vigo 3 3 10 Wellington. via San I Francisco 42 I 6 Whydah.. 30 6 12 Winnebah .. 25 Sydney .. 43 Yokohama 43 Talcahuano 38 Zanzibar.. 21 Tampico 26 Zurich... I 6 "" St. Thomas.... 17 Teneriffe Οι St. Thomas, Direct.. 11 13 337 via Barbadoes 17 St. Vincent (Cape de Verds) St. Vincent(West Indies) 10 via Barbadoes ..14 .... Strasbourg Stuttgart Suez United States In correspondence with the United States of America the following, showing the Abbreviations of the Names of the various States and Territories, Abbreviations. will be found serviceable :- Ala. or Alba....Alabama. Miss... Mo... Mon... N. C. Mississippi. Missouri. Montana. North Carolina. New Hampshire. New Jersey. Ariz... .Arizona. Ark....... .Arkansas. Ask..... .Alaska. Cal. California. N. H. Colo..... Colorado. N. J... Conn. Connecticut. N. Mex. New Mexico, D.C. ...District of Columbia. N. Y. Dak. .Dakota. Nebr. Del. ...Delaware. Nev...... New York. Nebraska. Nevada. Fla. or Flo...... Florida. Oi. Ohio. Ga. Ia. Ido. Ill.... Ind. Ind. Ter... Kans. Ky. Georgia. Iowa. .Idaho. .Illinois. ...Indiana. Indian Territory. Kansas. • ..Kentucky, La. or Lou......Louisiana. Mas. or Mass....Massachusetts. .Maine. Maryland. Me. Md. or Myd. ... Mich. .Michigan. Minn. .Minnesota. Oreg. or Ûn. ...Oregon. Pa. .. ... Philadelphia. Pen. or Penn.... Pennsylvania. R. I. S. C....... Tenn. Tex.... Uh. Va. Vt. .. W. Va. .Rhode Island. South Carolina. .Tennessee. ...Texas. .Utah. .Virginia. Vermont. West Virginia. .Wisconsin. Washington. Wis.... Wash. Wyo...... Wyoming. E • 1 Post. 1 1 1 : Bills of Exchange. Securities. Further Postal Advantages. 66 INSPECTION. heading are those received from bank correspondents, and the amounts of which, when received, are passed to the credit of the account of the correspondent with the bank; or, if there be no account for payment in the usual way, to the credit of the correspondent's account in London. The bills thus in hand to be credited bills for collection, and to be accounted for to correspondents, are generally received within a week of their being due; but in the case of "Bills held over for Credit of Clients," these may have a much longer time to run, and, if not due for several weeks, should be sent on to Head Office, a record being duly kept of their transmission, and the necessary particulars in such case being given under the heading in the report. The bills thus held over are generally those which it is not thought advisable, from the position of the obligants, or nature of the account, to pass before maturity to the credit of the client. With reference to the three headings in question, the requisite comparisons will be made at Head Office, with Bills for Collection Book, and, when the bills are due, with the respective accounts in connection with the remaining headings. "Bills Dishonoured on Hand." Some of these may be in possession of the local solicitor for recovery, and, if so, full particulars, as required under the heading, should be given. The sections referable to securities relate to those Branches which only of necessity keep some of their securities, and are not applicable to the few leading Branches, which, from the magnitude of their business and the number of their securities, retain the whole of the latter, and for the inspection of which special provision is made by No. III. Report. It is understood that arrangements are at present being made by the Post Office authorities for the introduction of an efficient Postal Parcels system, and the Insurance of Letters, as well as Parcels containing money and valuables; and it is also stated that measures are in contemplation for facilitating the grant of small Annuities and Life Policies. Inland Letters and Book Packets may now, in several of the large towns, be prepaid in money, provided certain regulations are complied with, and the amount to be paid reaches certain specified sums; and by an Act just passed, 45 Vict., c. 2, the use of reply Post Cards is authorised. ? ! INSPECTION. 67 At the end of the "Securities for Safe Custody on Hand" will, with reference to the Plate and other valuables of this Securities. description received in boxes or packets, be noted :— "Boxes and Packets on Hand Numbers, ........and.. , as per Plate Register." The Plate Register contains forms in three sections, thus: PROVINCIAL BANK. PROVINCIAL BANK. PROVINCIAL BANK. .18... No....... Liverpool...... 18... 18... No......... No......... Lodged for Safe Custody Lodged for Safe Custody a. By.. Received from.. Safe Custody. Lodged for For Provincial Bank, By.... Date of Re-delivery : This receipt must be produced before re-delivery of the ..... which is held without responsibility on the part of the Bank. The first section is the counterfoil, which remains attached to the book. The second section is gummed on the back, and, when the article arrives, is detached from the register and fixed to the article; the third section, duly filled up, being given to the depositor, who, on re-delivery of the article to him, returns the receipt, which is duly attached to the relative register counterfoil, at the foot of which will then be inserted the date of re-delivery. When the Plate Register is extensively used it may be advisable to have a separate index, so that the names of depositors and their lodgments may be the more readily found. When the Securities for Safe Custody come in envelopes or paper coverings, these should as a rule be received sealed with the private seal of the depositor, without the manager acquainting himself of their nature or contents; and the depositor should in all cases be made fully aware that the securities are retained entirely at his own risk, and, in the case of bonds or coupons, that the bank is not 1 1 5 $ 1 { き ​F Securities. Life and Fire Premiums. 68 INSPECTION. responsible for any loss that may be incurred in their not being duly presented when drawn or due, the requisite information and notices being always expected from the depositor himself. The Branch Diary for the Life and Fire Premiums is thus framed : JANUARY 1 TO 5. Page of Regis- ter of Securi- ties. Life Days NAME. OFFICE. or of Fire. Grace. 1877. 1878. 1879. 1880. 1881. 1882. 1883. 1884. 1885. 1826. 1887. 1888. 1829. 1890. 1891. 1892. 1893. 1894. 1895. 1896. 1897 1898. 1899. 1900. & This form taking up the whole of the first folio of the volume, each subsequent folio being a repetiton of the first, with the exception of the dates, which may be inserted thus: January 6 to 10, and so on, including four or five days for each folio, excepting at the terms Lady-day, 25th March, Midsummer, 24th June, Michaelmas, 29th Sep- tember, and Christmas, 25th December, when to these dates three or four folios may be appropriated. When the premium has been paid, and the receipt obtained or produced, the initials of the manager should be duly inserted in the respective yearly columns, ruled for that purpose. For the Head Office General Premium Diary a much larger volume is of course necessary, as the premiums due at each Branch will require to be noted in it, an additional column headed "Branch" being inserted, and introduced after the "Name" column. In addition to the General Premium Diary, there should also be kept at Head Office an Outstanding Premium Receipts Book, framed as follows:- 1 $ Date in Diary. : Page in Register of Securities. }. INSPECTION. PREMIUM RECEIPTS OUTSTANDING. 69 Life NAME. BRANCH. OFFICE. Due. or Fire. When written for. Received. Remarks. And forms such as the following may be found necessary to use :- From PROVINCIAL BANK, Liverpool…………………………….18……. To PROVINCIAL BANK, BRANCH. Life and Fire Premiums. We have to remind you that we have not received the undermentioned Premium Receipts, which must be forwarded to us without further delay. We have also to call your particular attention to the rule that all Premiums, whether on Life or Fire Policies, should be paid not later than three days before the last day of grace, and that the Branch Manager is held per- sonally responsible to the Bank for their due payment. 1 * NAME OFFICE. Life or Due. Fire. REMARKS. (Signature)..... In connection with, or attached to, the General Premium Diary, Lists such as the following will be found useful:— 1 ¿ វ Life and Fire Insurance Companies. 70 Estab- lished. INSPECTION. LIST OF LIFE AND FIRE NOTE.-Mutual Life Companies are denoted by the Letter M. It is almost, if not always, invariable for Fire Title. 1824 Alliance British and Foreign Life and Fire Assurance Company 1833 Argus Life Assurance Company 1808 Atlas Assurance Company 1849 Australian Mutual Provident Society .M. 1881 Brighton and Sussex Union Fire Insurance Company Limited. 1847 British Empire Mutual Life Assurance Company ...M. 1854 British Equitable Assurance Company. 1875 Briton Life Association Limited 1854 Briton Medical and General Life Association 1881 Building Society and General Fire Insurance Company Limited. 1877 Bute Insurance Company Limited Fire 1805 Caledonian Insurance Company Life 1833j 1881 Capital Fire Assurance Association Limited 1840 Church of England Life and Fire Assurance Trust and Annuity Institution 1870 City Life Assurance Company Limited 1838 City of Glasgow Life Assurance Company 1881 City of London Fire Insurance Company Limited 1829 Clergy Mutual Assurance Society .M. 1824 Clerical, Medical, and General Life Assurance Society 1861 Commercial Union Assurance Company. 1867 Co-operative Insurance Company Limited INSPECTION. INSURANCE COMPANIES. Days of Grace are given in the Life Companies only. Companies to allow fifteen days of grace. 71 Business. Days of Grace. Life and Fire 1 and 2, Bartholomew Lane ....E.C. 30 Life....... 27, King Street, Covent Garden.. W.C. 30 Life and Fire 92, Cheapside... ....E.C. 30 Life...... Pitt Street, Sydney 65, Cornhill ….. E.C. } 30 Fire.... 162, North Street, Brighton Life…………. 32, New Bridge Street 30 yearly, half-yearly ...E.C. (15 quarterly. Life.... 4, Queen Street Place ....E.C. f15yearly, half-yearly 6 quarterly. Life. 429, Strand ...W.C. 30 Life. 429, Strand W.C. 30 Fire. Fire... 87, Market Street, Manchester 26, Watergate, Rothesay Life and Fire 19, George Street, Edinburgh………….. 182, King William Street ......E.C. One Calendar Month. Fire.... 20, Bucklersbury.... E.C...... Life... Life..... Life and Fire 9 and 10, King Street, Cheapside..E. C. 2, Broad Street Buildings, Liver- pool Street J 28A, Renfield Street, Glasgow 12, King William Street ......E.C. 30 ....E.C. 30 2 I Fire.. 101, Cheapside ....E.C. Life..... 1 and 2, The Sanctuary, West- minster ....S.W. 6 Weeks. Life... 13, St. James's Square ....S.W. 30 (Life, Fire, and 19 and 20, Cornhill Marine. Fire.... J City Buildings, Corporation Street, Manchester ...E.C. 30 1 Life and Fire Insurance Companies. + 1 } Life and Fire Insurance Companies. # + 72 INSPECTION. LIST OF LIFE AND FIRE Estab- lished. Title. 1874 Cotton Waste Dealers' Mutual Fire Insurance Company Limited 1806 County Fire Office 1825 Crown Life Assurance Company. 1807 Eagle Insurance Company 1823 Economic Life Assurance Society 1877 Edinburgh Fire Insurance Company 1823 Edinburgh Life Assurance Company 1855 Emperor Fire Assurance Society 1853 Emperor Life Assurance Society M. 1839 English and Scottish Law Life Assurance Association 1873 Equitable Fire Insurance Company Limited 1762 Equitable Life Assurance Society M. 1859 Equitable Life Assurance Society of the United States.. 1844 Equity and Law Life Assurance Society..... 1802 Essex and Suffolk Equitable Fire Insurance Society 1875 Federative Fire Insurance Company Limited 1880 Fire Insurance Association Limited 1832 Friends' Provident Institution M. 1837 General Life and Fire Assurance Company 1881 Glasgow and London Insurance Company Limited 1844 Great Britain Mutual Life Assurance Society .M. 1848 Gresham Life Assurance Society... 1821 Guardian Fire and Life Assurance Company.. Fire 1696 Life Hand-in-Hand Insurance Society .M. 1836] 1803 Imperial Fire Insurance Company INSPECTION. INSURANCE COMPANIES.-Continued. $ 73 Business. Fire and Cotton Waste. Argyle Buildings, Market Street, Heywood, Lancashire... 50, Regent Street Fire.... 14, Cornhill... Life..... 188, Fleet Street…….. Life..... 79, Pall Mall ... Life.... Fire W.) E.C. ....E.C. Days of Grace. D 30 Life…... 6, New Bridge Street ... S.W. One Calendar Month ....E.C. § 73, George Street, Edinburgh......? {73, 18, Queen Victoria Street ...E.C.S {22, George Street, Edinburgh......} 11, King William Street ......E.C.) I 52, Cannon Street 30 30 ....E.C. ....E.C. 15 .S.W.? 30 Life and Fire Insurance Companies. Fire... Life..! 52, Cannon Street Life. S12, Waterloo Place Fire.. Life. Life! Life. Fire. 120, Princes Street, Edinburgh ...S · (8, Corporation Street, Manchester? 24, Moorgate Street Mansion House Street 81, Cheapside... 18, Lincoln's Inn Fields High Street, Colchester ...W.C. One Calendar Month .E.C.S E.C. ....E.C. E.C..... 30 30 Fife.... 7, Union Street, Oldham Fire... Life... 66 and 67, Cornhill ....E.C. 45, Darley Street, Bradford One Calendar Month Life and Fire 103, Cannon Street….. .E.C. 30 Fire........ 248, West George Street, Glasgow 1, Sherborne Lane, King William Street t E.C. Life....... 11, Queen Victoria Street - ....E.C. 30 Life... St. Mildred's House, Poultry......E.C. { 30 Life and Fire 11, Lombard Street ...E.C. 30 Life and Fire New Bridge Street .. .c.l. E.C....... 30 Fire...... 1, Old Broad Street .E.C.... } 1 74 Life and Fire Insurance Companies. Estab- lished. 1 INSPECTION. LIST OF LIFE AND FIRE Title. 1820 Imperial Life Insurance Company 1802 Kent Fire Insurance Company 1852 Lancashire Fire and Life Insurance Company 1845 Law Fire Insurance Society 1823 Law Life Assurance Society... 1850 Law Property and Life Assurance Society 1854 Law Union Fire and Life Insurance Company 1836 Legal and General Life Assurance Society... 1838 Life Association of Scotland.... 1879 Lion Fire Insurance Company Limited 1880 Lion Life Insurance Company Limited 1836 Liverpool and London and Globe Insurance Company 1862 London and Lancashire Fire Insurance Company.. 1862 London and Lancashire Life Assurance Company... ... 1879 London and North-Western Fire Insurance Company Limited. 1881 London and Provincial Fire Insurance Company Limited 1845 London and Provincial Law Assurance Society……... 1870 London and Staffordshire Fire Insurance Company Limited 1720 London Assurance Corporation. ... 1870 London, East India, and Colonial Life Assurance Company Ld. 1881 London, Edinburgh, and Glasgow Assurance Company Limited 1806 London Life Association.. .M. 1878 Manchester and London Fire Insurance Company Limited. 1824 Manchester Fire Assurance Company... 1852 Marine and General Mutual Life Assurance Society... .M. t " INSPECTION. INSURANCE COMPANIES.-Continued. Business. Life……………. 1, Old Broad Street Fire......... High Street, Maidstone 75 Days of Grace. .E.C..... 30 26, Budge Row, Cannon Street, E. C.) Life and Fire Exchange Street, Manchester ...... 14, King William Street .....E C. C.S 30 Fire... 114, Chancery Lane..... ..W.C. Life….... 187, Fleet Street.... ...E.C. 30 Life and Titles 61, King William Street ...E.C. 30 Life and Fire 126, Chancery Lane W.C. 30 Life.... 10, Fleet Street ...E.C. 30 Life......... 582, Princes Street, Edinburgh......? 2 I 5, Lombard Street E.C.. Fire... 5, Lothbury ...E.C. ife and Accident 5, Lothbury.... ...E.C. • 30 Life and Fire Fire Life. Fire... Manchester f1, Dale Street, Liverpool............? 7, Cornhill S11 E.C. SII Dale Street, Liverpool ...? 73 and 74, King William Street, E.C.S 66 and 67, Cornhill Victoria Buildings, Victoria Street,) 18, New Bridge Street.........E.C. 30 E.C} ...E.C. 30 Fire... 158, Leadenhall Street ...E.C. | Life..... 21, Fleet Street ..E.C. 30 Fire... 123, Bishopsgate Street. ...E.C. Life, Fire, and Marine. }7, Royal Exchange ...E.C. 30 Life…….. Mansion House Buildings ...E.C. 30 Life and [110, Cannon Street ... .E.C.1 Accident. Life…........ Fire.... Fire…..... 9, North St. David Street, Edinburgh One Calendar Mon 67, St. Vincent Street, Glasgow 81, King William Street…....... ...E.C. (110, King Street, Manchester......? 1, Royal Exchange Buildings, E. C..S 15 c} 198, King Street, Manchester ...) 196, Cheapside... Life and Marine 14, Leadenhall Street…... E.C. ....E.C. 30 Life and Fire Insurance Companies. 喻 ​Life and Fire Insurance Companies. 1 f > $ 76 INSPECTION. LIST OF LIFE AND FIRE Estab- lished. Title. : t 1868 Masonic and General Life Assurance Company Limited 1835 Metropolitan Life Assurance Society. 1851 Midland Counties Insurance Company 1875 Millers' and General Fire Insurance Company Limited 1872 Morley Insurance Company 1870 Mutual Fire Insurance Corporation Limited 1834 Mutual Life Assurance Society 1822 National Assurance Company of Ireland 1876 National Fire Insurance Corporation Limited 1865 National Guardian Assurance Company Limited 1830 National Life Assurance Society 1835 National Provident Institution 1845 New York Life Insurance Company Fire 1 1809 Life 1823) North British and Mercantile Insurance Company 1836 Northern Assurance Company 1829 Norwich Equitable Fire Assurance Society... 1797 Norwich Union Fire Insurance Society 1808 Norwich Union Life Insurance Society 1824 Patriotic Assurance Company of Ireland 1797 Pelican Life Insurance Company 1782 Phoenix Fire Office * • M. M. M. M. .M. 1870 Positive Government Security Life Assurance Company Limited } i INSPECTION. INSURANCE COMPANIES.-Continued. Business. Days of Grace. 30 Yearly. 77 Life.... 9, New Bridge Street.... .E.C. 15 Half-yearly. (7 Quarterly. Life……………. 3, Princes Street, Bank E.C. 30 Life, Fire, and Silver Street, Lincoln ... Hail Storm. Street Gresham Buildings, Basinghall Colmore Chambers, Newhall Street, 30 E.C. Fire………… Birmingham.. 69, Mark Lane .E.C. Fire..... Town Hall, Morley.... Fire...: S32, Brown Street, Manchester... 10, King William Street • E.C. Life. 39, King Street, Cheapside......E.C. 30 Yearly. 15 Half-yearly. Life and Fire S3, College Green, Dublin....………………….? (86, King William Street ... E.C.S 30 Fire.. 72, King William Street…………… .E.C. Life 484, Oxford Street... Life... 2, King William Street ...W.C.30 Yearly and Half- yearly. 15 Quarterly. .E.C. One Calendar Month. Life... 48, Gracechurch Street .E.C. 30 Life... 76 and 77, Cheapside .E.C. 30 Life and Fire 161, Threadneedle Street (64, Princes Street, Edinburgh......? .....E.C.) 2 I Life and Fire {3, King Street, Aberdeen... 1, Moorgate Street E.C.J One Calendar Month. Fire..... $59, London Street, Norwich 169, Lombard Street Surrey Street, Norwich. Fire...... 50, Fleet Street... Life……………. (Surrey Street, Norwich. 50, Fleet Street... Life and Fire 9, College Green, Dublin Life.. 70, Lombard Street # Fire... 19, Lombard Street Life..... 34, Cannon Street } Life and Fire Insurance Companies. E.C. • 1 E.C.S 30 30 .E.C. 30 .E.C. E.C...... 30 ^ 78 1 INSPECTION. LIST OF LIFE AND FIRE Life and Fire Insurance Companies. Estab- lished. Title. 1853 Protector Endowment, Loan, and Annuity Company... 1840 Provident Clerks' Mutual Life Assurance Association 1806 Provident Life Office....... 1852 Provincial Insurance Company 1848 Prudential Assurance Company Limited 1857 Queen Insurance Company M. 1880 | Realm Fire Insurance Company Limited 1840 Reliance Mutual Life Assurance Society M. 1806 Rock Life Assurance Company 1877 Rossendale Mutual Fire Insurance Company Limited 1720 Royal Exchange Assurance Corporation... 1840 Royal Farmers' and General Fire, Life, and Hail Insurance Co. 1845 Royal Insurance Company 1780 Salop Fire Office 1864 Sceptre Life Association Limited 1826 Scottish Amicable Life Assurance Society ...M. 1831 Scottish Equitable Life Assurance Society..... ...M. 1865 Scottish Imperial Insurance Company. ... 1881 Scottish Life Assurance Company Limited...... 1880 Scottish Metropolitan Fire Insurance Company. 1876 Scottish Metropolitan Life Assurance Company. 1837 Scottish Provident Institution ..M. INSPECTION. INSURANCE COMPANIES.-Continued. ? 79 Business. Days of Grace. Life and Fire Insurance Companies. Life, &c....... 34, King Street .E.C. Life and Bene- volent Fund.. 27, Moorgate Street E.C. One Calendar Month. Life...... 14, Cornhill Life...... $50, Regent Street.. SHigh Street, Wrexham.. W. ...E.C.S Life..... 17, Queen Victoria Street …………..E.C. 142, Holborn Bars.... E.C.? 30 30 .E.C. One Calendar Month. Life and Fire Queen Insurance Buildings, Liverpool | 160, Gracechurch Street 30 E.C. Fire...! 4, St. Paul's Churchyard E.C. Life….. 71, King William Street…….. E.C. 30 Life.. 15, New Bridge Street .E.C. 30 Fire. Bank Buildings, Bacup Life, Fire, and 1 Marine. Royal Exchange Buildings ......E.C. 30 Life, Fire, and Hail-Storm. 3, Norfolk Street, Strand .........W.C. 30 Life and Fire North John Street, Liverpool ... (27 and 28, Lombard Street ...E.C.S 30 Fire.. Life... Life. Life...... 11, The Square, Shrewsbury 1 40, Finsbury Pavement .E C. 30 21 .E.C. 30 30 Life and Fire Life, Accident, and Thrift. Fire....... Life...... Life...... St. Vincent Place, Glasgow. 1, Threadneedle Street……….. S26, St. Andrew Square, Edinburgh 169, King William Street......E.C.S 151, West George Street, Glasgow 2, King William Street.........E.C.S Edinburgh... 26, George Street, Edinburgh One Calendar Month. (43, Coleman Street S2, York Place, Edinburgh ...? 179, Cornhill c} E.C. (2, York Place, Edinburgh......} 79, Cornhill 56, St. Andrew Square, Edinburgh 17, King William Street ......E.C.) 30 } One Calendar Month. Life and Fire Insurance Companies. 80 INSPECTION. LIST OF LIFE AND FIRE Estab- lished. Title. 1 1825 Scottish Provincial Fire and Life Assurance Company 1824 Scottish Union and National Insurance Company.. 1815 Scottish Widows' Fund and Life Assurance Society I 1870 Security Life Office 1837 Shropshire and North Wales Fire Office 1845 Sovereign Life Assurance Company. • 1871 Standard Fire Office Limited I 1825 Standard Life Assurance Company 1843 Star Life Assurance Society 1881 Starr-Bowkett and General Insurance Company Limited 1710 Sun Fire Office 1810 Sun Life Assurance Society M. Fire 1714 Union Fire and Life Assurance Society Life I 1813] 1824 United Kent Life Assurance and Annuity Institution or Company Limited 1840 United Kingdom Temperance and General Provident Institution M. 1834 Universal Life Assurance Society 1825 University Life Assurance Society • 1861 Western Counties and London Mutual Life Assurance Co. ...M. 1836 Westminster and General Life Assurance Association 1717 Westminster Fire Office 1807 West of England Fire and Life Insurance Company 1855 Whittington Life Assurance Company 1824 Yorkshire Fire and Life Insurance Company INSPECTION. INSURANCE COMPANIES.-Continued. } تو 81 I Business. Life and Fire Life and Fire Life...... Life........ } $93, Union Street, Aberdeen 164, Cannon Street…………….. E.C.S 35, St. Andrew Square, Edinburgh 3, King William Street... .E.C.S (9 St. Andrew Square, Edinburgh..) Mansion House Buildings... Days of Grace. 30 One Calendar Month. 30 E.C. One Calendar Month. Life and Fire Insurance Companies. Fire.. The Square, Shrewsbury Life... I10, Cannon Street.... ....E.C. 30 Fire.... 76, King William Street.. ……..E.C. | t (3 and 5, George Street, Edinburgh) Life... 183, King William Street ......E.C.S 30 Life..... 32, Moorgate Street ...E.C. 30 Fire and Fidelity Guarantee. 1, Finsbury Square. ...E.C. Fire. 63, Threadneedle Street...... ...E.C. Life 63, Threadneedle Street... ...E.C. 15 Life and Fire 81, Cornhill…. .E.C..... 30 Life.... (High Street, Maidstone .....……………….) 26, Bridge Row, Cannon Street,E.C.S 30 Life..... Life... Life..... 1, King William Street 25, Pall Mall ... Life...... Life………….. Fire..... 1, Adelaide Place, London Bridge, E.C. One Calendar Month. E.C. One Calendar Month. (20, Princess Square, Plymouth ... 15 Yearly and Half- 21, New Bridge Street…... ....E.C. 6 Quarterly. [yearly 28, King Street, Covent Garden, WV.C. 27, King Street, Covent Garden, W.C. (Exeter Life and Fire 20 New Bridge Street Life………. 58, Moorgate Street ... c} • E.C.S (St. Helen's Square, York……... Life and Fire 182, Old Broad Street ....E.C. .E.C. EC? One Calendar Month. 30 Yearly. 14 Half-yearly and Quarterly. 30 F ...S.W. 30 @} 30 } 1 / • } 1 Fire Insurance Premiums. 1 82 INSPECTION. QUARTER DAYS on which Annual Fire Insurance Premiums become due:- ENGLAND, WALES, AND IRELAND. Ladyday, 25th March; Midsummer, 24th June; Michael- mas, 29th September; Christmas, 25th December. SCOTLAND. Candlemas, 2nd February; Ladyday, 25th March; Whit- sunday, 15th May; Midsummer, 24th June; Lammas, Ist August; Michaelmas, 29th September; Martinmas, 11th November; Christmas, 25th December. DAYS OF GRACE. The fifteen Days of Grace after each Quarter-day expire as under: After Candlemas, on the 17th February. Ladyday, Whitsunday, 9th April. 30th May. Midsummer, 9th July. Lammas, ") 16th August. Michaelmas, 14th October. Marine ") >> Martinmas, "" Christmas, 26th November. 9th January. Principal Companies which transact Insurance Alliance. Companies. British and Foreign City of London MARINE INSURANCE. Capel Court, E.C. Exchange Buildings, Liverpool. 126, Cornhill, E.C. ..3, Royal Exchange Buildings. Commercial Union [also Fire and Life]. Globe... Home and Colonial Indemnity London and Provincial.. • ... 79, Cornhill, E.C. .8, Royal Exchange, E.C. 13, Great Winchester Street, E.C. 2, Royal Exchange Buildings. London Assurance Corporation [also Fire and Life]. Marine Maritime Merchants' 20, Old Broad Street, E.C. .40, Brown's Buildings, Liverpool. • • 37, Cornhill. 1 } 1 A " $ E Ocean.... Reliance... INSPECTION. 83 .2 and 3, Old Broad Street, E.C. Exchange Buildings East, Liver- Marine pool. Royal Exchange [also Fire and Life]. Sea Standard Indemnity Thames and Mersey.. •• Union..... Universal • • · • Exchange Buildings, Liverpool. 9, Fenchurch Avenue, E.C. Liverpool and London Cham- bers, Liverpool, 1, Royal Exchange Buildings. 9, Royal Exchange, E.C. • 35, Cornhill, E.C. Insurance Companies, STEAM BOILER INSURANCE. Boiler Insurance and Steam Power. 67, King Street, Manchester. English and Scottish London Mutual National Boiler Yorkshire... Bradford.... Caledonian.. Commercial • { · 100, King Street, Manchester. 81, St. George's Place, Glasgow. 17, Queen Victoria Street, E.C. ..22,St. Ann's Square, Manchester. ..Sunbridge Chambers, Bradford. PLATE GLASS INSURANCE, Edinburgh and Provincial Equitable Guardian Lancashire.. London and County London and General.. National Provincial Northern • • • • • • 30, Darley Street, Bradford. .131, Hope Street, Glasgow. .St. Thomas Street, Sunderland. ..8, York Buildings, Edinburgh. • • 171, Queen Victoria Street, E.C. 49, Spring Gardens, Manchester. 71, Fleet Street, E.C. 9, Chancery Lane, Bolton. 16, Holborn Viaduct, E.C. .2, Ludgate Hill, E.C. ...66, Ludgate Hill. W. Clayton Street, Newcastle- on-Tyne. Norwich and London [also Accident]. Plate Glass…….. • Scottish Plate Glass { Ulster.. Yorkshire and London • 53, Lime Street, E.C. 73, George Street, Edinburgh. 18, Queen Victoria Street, E.C. Victoria Chambers, Belfast. 1, Finsbury Square, E.C. I Steam Boiler Insurance Companies. Plate Glass Insurance Companies. & } 1 } > Hail Storm Insurance Companies. Cattle Insurance Companies. 84 INSPECTION. HAIL STORM INSURANCE. County, at Hertford; General, St. Giles Street, Norwich; Midland Counties [also Fire and Life]; Provincial, 75, High Street, Winchester; Royal Farmers' [also Fire and Life]. CATTLE INSURANCE. Guardian Horse, &c. [post, page 85]; Horse Insurance, 17, Queen Victoria Street, E.C. [for Live Stock generally]; Imperial Live Stock, 446, West Strand, W.C. And the following are the Companies which transact ACCIDENT INSURANCE:- Accident Insurance Companies. Estab- lished. 1 } Title. Chief Office. 1866 Accident Insurance Company Limited 1881 Builders' Accident Insurance Limited 1881 Employers' Liability and Workpeople's Provident and Accident Insurance Company Limited 1881 Employers' Liability Assurance Corporation Limited 1880 Globe Accident Assurance Company Limited 1875 Imperial Union Accident Assurance Company Limited 1877 Lancashire and Yorkshire Accident Insurance Company Limited 1880 Lion [also Life. See list of Life and 1881 London, Edinburgh, and Glasgow Fire Companies.] 1869 London Guarantee and Accident Company Limited..... [also Fidelity Guarantee]. 1881 Mutual Accident Association 7, Bank Buildings, E.C. 27A, King Street, Garden, W.C. Covent Newhall Street, Birmingham. 84 & 85, King William Street, E.C. 45, Finsbury Pavement, E. C. 32, Finsbury Pavement, E.C. 33, Princess Street, Manchester. Fire Companies]. [also Life. See list of Life and 10, Moorgate Street, E.C. 14, Marsden Street, Manchester. 10, King William Street, E.C. 1856 Norwich and London Accident St. Giles Street, Norwich. Insurance Association [also Plate Glass.] 1871 | Ocean Railway and General Accident Assurance Company Limited. 1876 Provident Clerks' and General Accident Insurance Company Limited 1849 Railway Passengers' Assurance Com- pany. 1877 Scottish Accident Insurance Company Limited........ 30, Moorgate Street, E.C. Mansion House Buildings, E.C. 61, Coleman Street, E. C. 64, Cornhill, E.C. 77, George Street, Edinburgh. 10, King William Street, E.C. 1881 Scottish Life [also Life. See list of Life and Fire Companies]. 7 1 1 INSPECTION. 85 To the above list may be added the London and Provincial Horse and Carriage Insurance Company, 17, Queen Victoria Horse, Vehicle, &c., Street, E.C., established in 1875; and the Guardian Horse, Assurance Vehicle, and General Assurance Association, 31, Lombard Street, Companies. E.C., established in 1877. These companies insure vehicles of every description, on road, rail, or tramway, against damage, and insure horses and drivers against accidental injury. And the Companies for FIDELITY GUARANTEE INSURANCE are The Bankers' Guarantee and Trust Fund, 86, King William Street, E.C. (The Society is divided into two branches-the British, and the Foreign Guarantee Trust.) Guarantee Association of Scotland, 75, George Street, Edinburgh. Guarantee Society, 19, Birchin Lane, E.C. London Guarantee and Accident, 10, Moorgate Street, E.C. National Guarantee, 67, George Street, Edinburgh. Ocean and General Guarantee, Mansion House Buildings, E. C. Provident Clerks', 61, Coleman Street, E.C. * Fidelity Guarantee Insurance Companies. Insurance. Of the terms “Assurance" and "Insurance," the former Assurance and means a contract for payment of the whole sum specified, while the latter is a contract under which, as in fire, the loss of the sum specified may be only partial; but each term appears to be now used, by the public at least, indis- criminately, though the intention at one time was that "Assurance" should be applicable to life contingencies only, and “Insurance" to other contingencies. Mutual and Mixed. The Mutual Societies divide the profits amongst the Proprietary policy-holders. Some of the companies are proprietary, or with a capital divided into shares, the profits going to the shareholders, while others are mixed or partly pro- prietary and partly mutual, the profits being divisible between the shareholders and the policy-holders. The question of expenses in the management of an Expenses. Assurance Company is an important one for an intending * We are indebted to George Napier Clark, Esq., of Macclesfield, for the above comprehensive and very carefully prepared series of lists. In most of the instances, in connection with the Life and Fire Insurances, he has obtained the information direct from the Companies themselves. + } Assurance Expenses. } Commissions. Life Assurance 86 INSPECTION. insurer. These should be relatively small when the com- pany has secured a large business, but they press heavily upon a new concern in its earlier years. The disparity in the expenses is very great amongst the various existing companies, the range being from about 4 to as high as 50 per cent. of the premium income, and this being the case it behoves an insurer to consider the costs of management and how the money is employed, more than the matter of premium. As a rule, the smaller the percentage paid in commissions and expenses of management the stronger the company. ㅏ ​On the subject of commissions it may be worthy of note that in a case just decided, that of Copp v. Lynch and the Law Life Assurance Company, on appeal to the Queen's Bench Division, before Mathew and Cave, J.J., 27th March, 1882, a solicitor, who acted as agent to an insurer and introduced him to the Assurance Company, was held bound to account to the insurer for all commissions received, the latter not having been aware that these were being paid to his agent, or having been informed by him in the first instance that they were to be allowed to him by the company. On a subsequent refusal of leave to appeal, 4th April, 1882, Mathew, J., observed that "the. only effect of the decision was that solicitors, if they received commission in such cases, must let their clients know that they received it, so that it should be received openly and 'above board.'' It is stated that, from the Board of Trade Returns, it appears the commissions paid by the Insurance Com- panies from 1870 to 1880 amounted to no less a sum than £7,375,757; and that one office, "by no means the largest or best known," paid about £500,000 in 1880. It will be observed that 30 days' grace are now generally Days of Grace. allowed for payment of life premiums. If not paid within this period the company then conclude that the holder is desirous of allowing his policy to lapse, thus freeing them from further liability upon it. It may, as a rule, however, INSPECTION. 87 Life Assurance be revived on the holder producing evidence of health, and paying a fine in addition to the premium; though some of the companies, after a life policy has been in existence for Days of Grace. three years, will keep it in force by applying the surrender value that would then attach to it in payment of premiums, but, as soon as the value is exhausted, the policy will be considered as extinguished. Insurance With reference to days of grace in the payment of fire Fire premiums, the following information is given in THE Days of Grace. SCOTTISH BANKING AND INSURANCE MAGAZINE, of Ist July, 1880, page 176:— "The origin of the practice of granting a period, within which the renewal premium under Fire policies might be made, beyond the actual expiry of the contract, cannot be very clearly traced. The Friendly Fire (1684) allowed 40 days. The Sun in 1710 allowed 10 days only, but its premiums were payable quarterly then. The Friendly Fire founded in this city (Edinburgh) in 1720, gave 30 days for payment of renewal premiums, but shut out all liability for loss occurring in the interval; and this was probably the practice of the other offices of the period. (( 'The Royal Exchange in 1722 gave 14 days. The Sun in 1729 (when it had adopted yearly premiums) allowed 15 days. The act of 1782, under which the duties on Fire Insurance were levied, gave 15 days' grace to the offices; and this probably tended to settle the practice on a uniform basis; but it was still not the practice to afford protection in case of loss during this interval after Goodheart's fire. The Sun Fire, in 1794, announced that persons insured for one year or any longer term, were always considered by the office 'as insured for 15 days beyond the time of the expiration of their policy.' Several cases arose about the close of the (last) century upon this point. But it was only as recently as 1860, that the practice of protection during the days of grace became generally admitted as a principle of Fire Insurance. 7 1 88 INSPECTION. Fire Insurance "In the case of Tarleton versus Staniforth, the plaintiff was insured in the Liverpool Fire office, where the premiums. Days of Grace. were payable half-yearly; 15 days' grace were allowed for payment of the premiums. A fire occurred during these days, and the company was held not to be liable for the loss. These were in truth days for payment, not days of grace in the sense in which they are now used. 'In the case of Salvin versus James and another (managers of Sun Fire), the point turned upon days of grace, and the insured claimed the benefit of the advertisement of 1794, already referred to; but before the expiration of the year, the company had given notice that it would only renew the policy on the payment of an increased rate of premium. Within 15 days after the expiration of the risk, the pre- mium not having been paid, a fire occurred. The office refused to pay, and the Court sustained it under the circumstances. } "Uniform Conditions.-By about the commencement of the present century, partly in consequence of the preceding decisions, and partly as the result of a combination of the offices for tariff purposes, there became a tendency amongst the Fire Offices, in London especially, to make their conditions more uniform, in the direction of consolidating past experience. The office which took the lead in this wise movement was the Westminster Fire. Its conditions, put forward in 1805, were very complete and well- considered, although undoubtedly strict. In 1820 the Sun Fire followed in the same direction, and put forward a set of conditions which were, perhaps, a modification of the preceding ones, in the direction of relaxing upon certain points, for the competition of new offices was becoming formidable, but, on the whole, they were practical and good. The nature of the conditions essential to the conduct of the business was now fully comprehended; and it cannot be said that any material alteration in their nature has taken place between that time and the present. The $ 1 i INSPECTION. 89 conditions are designed alike for the limitation of the contract, within practicable shape, and for removing points Fire Insurance of doubt, concerning not only that which is embraced in Days of Grace. the policy, but that which is not." A book somewhat in the form of the Life and Fire Coupon Diary. Premium Diary might be found useful for coupons when these instruments are largely held. With reference to the next portion of our subject em- braced under the heading "Number of Accounts," in verifying these, this at all the minor branches should be done from the ledgers. At the more important branches. the number may be verified from the last extended State- ment of Balances checked at head office, and from the balance of the Accounts Opened and Closed Book, the individual entries in the latter being, however, checked with the ledger. To insure the greater accuracy of the Accounts Opened and Closed Book, it should be filled up by the Ledger Clerk at the time the ledger is posted, and compared daily or weekly with the State Book, which should contain a note on its margin of the accounts opened and closed made from the Vouchers as they are entered by the State Book Clerk. In the numerical computation, the accounts which have been temporarily closed should either be excluded or their number shown separately. When practicable, the ledgers at some of the larger branches should be occasionally gone through. With regard to those leading branches in connection with which no duplicate ledgers are kept at head office, the numbers will be taken from the Inspection Balance Statements. In this case the spaces in the report after "CURRENT, as per" and "DEPOSIT, as per" will be filled up by "Balance Statements of [mentioning dates] annexed :— A to D ...... L to R...... E to K...... S to Z ..... Number of Accounts. < { Number of Accounts. Accounts Opened and Closed Book. Money Lent and Lodged Book. Date. 90 INSPECTION. or in whatever other way the ledgers may be divided, showing the number in each ledger, and carrying out the total into the prescribed column at the side of the page, and these totals should agree with the result, as shown by the money Lent and Lodged Book and Accounts Opened and Closed Book, carried out into the preceding column. When the number is taken from the ledgers, then the spaces will be filled up: "Ledgers { "A to D....……. &c. )) In the case of the Deposit Receipts, the number being that "outstanding" will, of course, be taken from the Deposit Receipt Register. By every Branch the numbers should be properly verified at the end of each half-year. The "Accounts Opened and Closed Book" should be. divided into two parts, the first for Current and the second for Deposit Accounts, each left-hand page containing a list of the accounts opened, and each right-hand page that of the accounts closed, the entries consisting simply of dates and names; or when the entries are numerous, as in the large Branches, it might be useful to have additional columns for the Amounts with which the accounts are opened, and closed, for Folio of Ledger, and for Remarks. The Branches Money Lent and Lodged Book is thus framed :- MONEY LENT. MONEY LODGED. Total. Balance of Head Office Account Dr. Cr. Number of Accounts. Turn over on Current Acounts. C/A. | D/A. Total. /D/R Remarks. A return of the totals and averages of each of the above columns should be sent to the Head Office at the end of each half-year. Į · INSPECTION. } 91 Entries. On completing the comparative statement, and that relating to the Branch Officers following the numerical Pass Books. computation of the accounts, the Pass Books which, during the inspection, will have been allowed to accumulate will then be undertaken, and the balances of the whole on hand, Current and Deposit, verified with the balances shown in the Ledgers. Particular attention will, of course, be paid by the Branch to the Pass Books being carefully and neatly written up; and in connection with them, as with all the other Books and Accounts, no erasures should be permitted with the penknife, and the correction of any errors that may be made should be effected with the pen, the part corrected not to be so obliterated as to be rendered illegible. With respect to the legal effect of entries in the Pass Legal effect of Book, or Passage Book, as it was formerly termed, if the book has been in possession of the account-holder and returned by him without remark, the debits will be considered as primâ facie evidence against him. If he is credited with sums which he ought to have received, or which he believed to be due to him, but such sums have not actually been received by the bankers, they cannot recover from him, unless they can show that the entries were made unintentionally and by mistake, Shaw and Others v. Picton, 4 B. and C., 715. In a case, that of Skyring, administratrix, G. Skyring v. Greenwood and Cox, 6th June, 1825, reported in the same volume, page 281, the paymasters of a military corps had given credit in account to an officer in that corps from 1st January, 1817, to 5th November, 1820, for increased pay, erroneously supposed to be granted by a general order of 27th August, 1806, to an officer of his position, and a statement of that account was delivered to the officer in 1821. In December, 1816, the paymasters were informed by the Board of Ordnance that the increased pay granted by the order of 1806 would not be allowed to officers having the rank and appointment of the one in question. The paymasters did } 1 ' 11 { Pass Books. Legal effect of Entries. 92 INSPECTION. not communicate this information to the officer until 1821, and subsequently to that time they continued to receive. his pay; held, in an action brought by his personal representative to recover such pay, that it was not competent to the paymasters to retain any of such sums of money on account of the sums which they had credited him for by way of increased pay, and which they had allowed him to consider his own for so long a period of time. In this case, Bayley, J., in delivering judgment, said, “This may be a case of hardship upon the defendants, but they have brought it upon themselves. This is an action for money had and received. If the defendants are entitled to set-off the sum they claim, the action is not maintainable. From the year 1816 to 1821 the defendants had given credit for certain sums, as if Major Skyring was entitled to them. I think they were guilty of a neglect of duty in not communicating to him the information they had received from the Board of Ordnance in 1816. Suppose that the balance of the account delivered in 1821 had been paid to Major Skyring, and that no subsequent pay had been received for his use by the defendants, and that they had brought an action to recover back the money paid, it would have been a good defence to that action to say that the defendants had voluntarily advanced money to the deceased when he asked no credit, and that they had told him that they had received the money for his use, and that on the faith of their representation he had drawn it out of their hands as his own money, and had been induced to spend it as such; and if they could not recover the money back, neither ought they now to be allowed to retain other moneys belonging to the deceased upon the ground that they have paid or allowed him in account money which they had not in fact received to his use, but which they suffered him to consider his own for a long period of time. I think they cannot now be permitted to say that the money which they allowed him in account } { 2 INSPECTION. 93 Entries. as money received by them to his use was not money received to his use; the rule for a new trial must, therefore, Pass Books. be discharged." And Abbott, C.J., in the course of his Legal effect of judgment, observed: "Every prudent man accommodates his mode of living to what he supposes to be his income; it therefore works a great prejudice to any man if, after having had credit given him in account for certain sums, and having been allowed to draw on his agent on the faith that those sums belonged to him, he may be called upon to pay them back. Here the defendants have not merely made an error in account, but they have been guilty of a breach of duty by not communicating to Major Skyring the instruction they received from the Board of Ordnance in 1816; and I think, therefore, that justice requires that they shall not be permitted either to recover back, or retain by way of set-off, the money which they had once allowed him in account." If, with intent to defraud, a person makes a false credit entry in a Pass Book, he may be indicted for forgery. The Queen v. Charles Smith, 3rd May, 1862, 31 L.J., new series Mag. Cas. 154; and the Queen v. Moody, in same volume, 156. The King v. Harrison, I L. CC., 180. Mode of In the writing up of the Pass Book, there is diversity of practice amongst the banks, some reversing the ledger Writing up entries and heading, as "Dr. the Bank of In Account with Cr.," the lodgments being thus entered on the Dr. and the payments on the Cr. side, while other banks make the Pass Book an exact transcript of the ledger; and this perhaps is the better plan. By some banks, also, the lodgment entries are only made, the account-holder being expected to enter all the payments or withdrawals at the time he issues his cheques, while other banks undertake the complete filling up of the book, having, with reference to the current accounts, a printed request on the inside cover to the effect that the book be brought at stated intervals, weekly or monthly, to be ' { | ; Pass Books. Mode of writing up. Instructions. 94 INSPECTION. written up, and that it be left to be balanced the first week of January and the first week of July in each year; and, with reference to the Deposit Accounts, that the book be brought on the occasion of each transaction, and be left to be balanced the last week in June and last week in December in each year. In the case of the Current Account Pass Books, it might not be unadvisable to have the following printed on the inside cover or first page:- It is requested that this Pass Book be left at the Bank once a week to be written up. Good Friday. BANK HOLIDAYS. Easter Monday. Whit Monday. First Monday in August. Christmas Day. Twenty-sixth of December, or 27th December if the 26th be a Sunday. Bills of Exchange falling due on Sunday, Christmas Day, or Good Friday, are payable on the preceding day, those due on the other days above-mentioned being payable on the following day. Some of the Scottish Banks have the following on their Pass Books: “DIRECTIONS. "When money is lodged with the bank for the credit of this account, the person paying it in ought to see that the sum is entered in this book, and is initialed both by the Teller and the Check-clerk. All drafts upon the account should be regularly entered by the drawer as they are issued. "At the end of each year this book should be given in to the bank, in order that the interest may be added and the account balanced and certified. On being satisfied of the correctness of the account, the client ought to sign the docket in the Bank's Ledger, and take delivery of his cheques." INSPECTION. 95 Annexed to Report I. will, in the case of those branches ments annexed for which no duplicate ledgers are kept at Head Office, be Balance State- attached the copy of the Weekly Return of General Ledger to General Balances duly verified, along with the necessary Statements Report I. of Current and Deposit Account Balances, and Outstanding unpaid amounts of Deposit Receipts, all extracted as at the date of the Return, this last document being in the form given, post-Branch Return Forms, Part III.: .Branch Return for week ending…………………………….18……. Current and Account I. General Ledger Balances." Previous to extracting the Current and Deposit Account Balances, the Debit and Proving Credit columns of the accounts will be duly summed for Deposit the purpose of testing the accuracy of each extended. Balances. balance, and the summations of each account should be checked from the date of last inspection; or, if more recent, from the date when the account was certified as correct by the client. This is the only effectual mode of verification, as the deducting the previous totals from the present, or the adoption of other short methods of proving the balances, are unsatisfactory and unreliable. A great expenditure of time is of course entailed by the first mode; but to the Inspector this, with the attendant inconvenience and trouble, may be considerably diminished by officers being sent at short intervals, particularly to the more important branches, to keep up the requisite verifications; and these, too, may be considerably curtailed by having the balances of the accounts certified as correct by the account-holders half-yearly—a matter of very great importance, and which should not be overlooked in sound banking practice. Balance. In the case of the Deposit Receipts, the extraction from Deposit the Deposit Register of the outstanding unpaid amounts is Receipts alone required, and the total of these should correspond with the balance shown in the General Ledger. Entries. After the balancing of the accounts the verification of Verification of the entries in each account may then be proceeded with; but, as regards the larger branches, instead of every item > 暮 ​} { 1 } } 96 INSPECTION. being checked it will be sufficient to select the important Verification of ones, mainly, as a rule; and Statements of these, with Entries. Securities. Report III. relative remarks and observations, always more or less necessary, should be kept, and where the irregularities and explanations—these arising chiefly with the vouchers—are numerous, the statements should be left with the Branch, in order that written explanations and replies may be inserted in them. Particular attention should be given by the Inspector to the items in" Suspense Account" and Sundry Dividends Account." (( Following the Statements of verified Entries, there will, in the case of the leading Branches, appear No. III. Report, referable to the securities, which should also contain the written explanations and replies of the Branch when necessary. After the Securities for Advances have been seen and duly noted in No. III. Report, the securities left for safe custody will be checked, and in their instance a statement to that effect, as follows, will be sufficient:- (( Securities for safe custody, as duly recorded in Register, to examined and found correct, excepting"- folios , here stating, when necessary, circumstances and explana- tions. And closing No. III. Report will, after an inspection of the Plate Boxes and Packets, be the statement :- "And Boxes and Packets on Hand, Nos. as per Plate Register." When necessary to use No. III. Report, the pages devoted in No. I. Report to "Bonds on Hand for Collection of Relative Coupons," "Securities for Safe Custody on Hand," and "Securities for Advances on Hand," will necessarily not be used except to note on each :- to this date. See 'Examined from post pages…........ with relative observations and replies"- 1 INSPECTION. 97 mentioning the requisite pages, numbered on III. Report, after its annexation to the statements, also duly paged, Books. with the General or No. I. Report. Current and Account All the accounts being balanced and the securities Deposit inspected, a general examination will then be made of the Ledgers. Books, consisting of— { The Current and Deposit Account Ledgers, which should be carefully posted by the Ledger Clerk from the vouchers each day, and where there are several entries for an account, it is advisable that the balance should not be extended until all the day's entries in the account are made, so that there may appear only one balance for every separate day. This is of great convenience when it is necessary to refer to the working of an account, and to know what the exact balance has been, particularly when the account is an overdrawn one. The decimals will be duly wrought, and all the operations of the one day, on the account, should be invariably checked early on the following day. By the Inspector, the accuracy of the decimals wrought should in several instances be tested, Of the balancing of the Ledgers, the Current should be done at least monthly, and the Deposit quarterly. } The arrangement in the ruling of both the Current and Deposit Ledgers is the same, being thus on each page :- NAME, VOCATION, ADDRESS. PARTICULARS. AMOUNTS. DR. Date. or BALANCE. CR. DR. CR. DR. CR. (Payee's Name) ("Cash," or "Bills," or Sundries.") Days on Balances. Days on Cheques. DECIMALS. DR. CR. Inner end columns, for the units and tens, may be introduced within the Dr. and Cr. decimal columns, but when the figures are very numerous a series of columns, each for the admission of one figure only, would tend to G JorM ? > { Books. Current and Deposit Account 98 INSPECTION. prevent confusion and, error and greatly facilitate the necessary summations. Current and Deposit Account Balance Book, used in Balance Book. balancing the Ledgers. Extract Balance Book. Daily Debit Balance Book. Discount Ledger. Extract Balance Book, written up from the State Book daily, for verification of balance of each Ledger, monthly or oftener, when practicable. Daily Debit Balance Book.-This for use at the larger Branches, the managers of which have not time to undertake the daily calling over of the Ledgers with the State Book. The Discount Ledger.—This should be closely kept up, the balances extended after each day's entries, and the matured bills deducted weekly. The Ledger is generally ruled thus on the left-hand page:— Acceptances Matured Acceptances Balance. Date when Discounted. Number. Drawer. And on the right-hand page:- Acceptor. Due. Amount. Matured Amounts. Balance. The name, vocation, and address of the client occupying the heading of the two pages. Mчou { ( INSPECTION. 99 View of Discount Obligations Book, written up from Books. preceding Ledger monthly. View of Discount Book. Register of Register of Limits, which should contain the necessary Obligations particulars in connection with the limits sanctioned on all the advance accounts, as well as explanations in connection Limits. with such small and occasional overdrafts as are allowed at the discretion of the manager. The Book may be framed indexwise, with columns for- Name. Limit. Date when granted. Period. Remarks. Numbers Progressive Telegraph Numbers Book, in connection with Telegraph the names of clients respecting whom it may be necessary Book. to communicate with Head Office by Telegraph. Accounts Opened and Closed Book, to which reference Accounts has been already made, ante pages 89 and 90. Opened and Closed Book. Ledger. General Ledger, which should be posted daily, and the General balances extended weekly. The Accounts introduced into this Ledger may differ a little amongst Banks, some of which indeed have instead of it an "Impersonal Ledger," containing a considerable number of accounts, many of which are embraced under one title only in the General Ledger. Tellers' Cash Book, and Tellers' Cash Balance Book, the Tellers' Books. latter of which should be filled up by the Teller himself during the progress of the balance, and the former book, with the Exchange and Discount Book, as follows, should be duly completed and ruled off at the end of each day. Tellers' Exchange and Discount Book; a book which should be fully and regularly kept up, to enable satisfactory information to be given, as this is frequently applied for in connection with exchange and discount transactions. Local Banks' Cheques Register, for use when balances of exchange are paid through London agents. Numbered Cheques to Clients' Book, ruled for Number, Name, Date, and Remarks, a separate book being used for each denomination of Cheque Book. i } ร } } 1 * 3 Books. 100 INSPECTION. Incidental Expenses Book, for the various small inci- Tellers'Books. dental expenses incurred during each month; and see ante tate Book. 1 Bill Register. page 47. Stamp Balance Book. The State, or Daily Statement Book, by some banks called the Day Book, containing a statement of all the day's transactions; a book of great importance, and which should be very carefully written, and in which no erasures of any kind should appear, any incorrect entries being, as in all other instances, and, as we have had occasion previously to remark, cancelled by the pen, but in such a manner as not to be rendered illegible. Bill Register ruled thus for each folio:- Number. When Discounted or Credited. Client. Drawer. Place. Acceptor. Place. Date. Currency. Maturity. Cheque Register. An additional column, failing space, under "Daily Total," may be required when decimals are wrought, for the purpose of checking those on the Credit Voucher, unless provision be made for another mode of verifying the decimals on these vouchers. In some Registers, indeed, a column for Interest in £ s. d. is given, and this is useful when all bills are discounted. A column for "Payee” is also sometimes introduced in the Register. Cheque Register, ruled somewhat similarly to the Bill Register, omitting columns for Currency, Maturity, and Domicile, and having the heading "Drawee," instead of "Acceptor." Maou Domicile. Amount. Daily Total, When re- mitted for payment. } > INSPECTION. ΙΟΙ The daily entries in the Bill and Cheque Registers Books. should be regularly summed and checked with the totals in the State Book. Bill Diary, which should be balanced monthly, or oftener Bill Diary. when practicable, and the entries checked once or twice. a week with those of the Bill Register. Bill Diary Balance Book, used for the periodical balancing Bill Diary of the preceding book. Bills Negotiated Book, and relative Diary Book. Balance Book. Bills Negotiated Book and Bills Dishonoured, or Past Due Bills Book, or Protest Diary. Book, ordinarily thus framed :- Bills Dishonoured Book. 3 Or, Remarks. Remarks. Bills Received and Bills Bills Received for Acceptance Book, and Bills Remitted Remitted for Acceptance for Acceptance Book, books which, however, should be Books, &c. → 4 3 1 Books. Advice Books. Bank Rate Book. 102 INSPECTION. seldom used, as clients of banks should, as much as possible, be made to conform to the rule of handing in completed bills. Bills Received for Collection Book. Bills Remitted for Collection Book. Advice of Acceptances and Payments Book. Advice of Acceptance Diary. Advice of Drafts on Bank Book. General Diary for advices from clients. Bank Rate Book, for recording the changes in the Bank of England Rate, and which should be ruled with columns for date, rate, half-yearly average rate, and yearly average rate. Bank Note Register, ruled with columns for- Bank Note Register. Number, Date when Client's Number Date received, Name, of Note, of Note, of Note, Deposit Receipt Application, &c., Books. Deposit Receipt Register and Relative Index. Daily Place, Amount, Total. Deposit Receipt Application and Deposit Receipt Forms Books, of which mention has been made in our previous volume, pages 418 and 419. Deposit Receipt Register, ruled usually for date, number, name, and address, and amount, with a final column for “When paid,” a half-yearly or yearly Balance Book, with an additional column for interest, being used in connection with it. But the register might perhaps be preferably formed thus, the headings occupying a folio :— Date. Number. Name, Occupation, Amount. and Address, Date when. Paid. Out- Principal Interest Repaid. Paid. standing Principal. Out- standing Interest. The last two columns being used only at the half-yearly or yearly balance, the Register thus framed rendering a separate half-yearly or yearly Balance Book unnecessary, and it might not be unadvisable, when the receipts are numerous, to have two Registers, to be used alternately, half-yearly or yearly, the outstanding receipts being transferred from the one to the other, these receipts forming the opening of the Register for the new half year or year. Informal balances, by extractions of the outstanding amounts, should, however, be made at short intervals, and Date. 1 7 INSPECTION. 103 the accuracy of the book may be also tested at any time, by deducting the total of the "Principal Repaid" column Books. from that of the "Amount" column, when the balance should correspond with that shown by the General Ledger, Receipt the totals of each book being of course the same. If thought desirable, however, the Deposit Receipt Register might be so framed as to serve, singly, for three or four years, by having a corresponding number of columns under the headings "Outstanding Principal" and "Out- standing Interest," the latter having one more column than the former. Deposit Receipt Register Index Book, ruled for name, address, and a series of columns for number of Receipt. Deposit Register and Relative Index. Drafts Issued Counterfoils of Drafts Issued Book, framed as already seen, ante page 44. Book. Counterfoils of Draft Forms Book, and Counterfoils of Deposit Receipt Forms Book, on both Draft and Deposit of which all particulars ought to be preserved, and should Receipt Form be initialed by the officer who signs the Drafts and Deposit Receipts. Books. Money Lent and Lodged Book, an example of which Money Lent has been already given, ante page 90. and Lodged Book. General Book. Charges General Book, which may be thus framed, for Charges completion monthly, the totals agreeing with the General Ledger Balance :- Particulars. Salaries. Insurance. Rent. Taxes. Fuel, Gas, Water. Procedure Minute and Procedure Book, which should be kept Minute and closely written up, and which should contain, besides Book. Credits. Totals. " > 1 Books. Private Information Book. Opinions Received Book. Opinions Furnished by Branch Book. Register of 104 INSPECTION. minutes of meeting of committee, the substance of all letters from Head Office, with instructions respecting the accounts of clients. Private Information Book, which should contain full information respecting the means, character, position, and business habits of all parties in any way under, or likely to come under, liability to the Bank; and any other information that might prove serviceable in connection with such parties should also be recorded. The like full information should be given respecting all local parties appearing as obligants on any bills received for acceptance or collection, as well as credit. Opinions Received Book, which should be always kept closely written up. Opinions furnished by Branch Book, or, instead of this, a special Letter Book for the opinions given by the Branch may be used, and, if so, it should be kept duly indexed, with the names of the parties of whom opinions are given, as well as with the names of the correspondents. Register of Securities for Advances, which may be thus Securities for framed to occupy one folio each :— Advances. Name. Vocation. Amount of Advance £ Address. Number. Date of Considera- Estimated Document. Description. tion. Value. Remarks. Receipt. (Of packet when more than one packet of secu- rities de- posited.) Year. Month. Day. (Commenc- ing with Letter of Deposit.) (Immediate-(The amount ly after given by Letter Client only.) of Deposit, description of Deed in favour of Client to be given. The description should be re- corded in detail. Then should follow the other re- lative docu- ments, the dates of which, how- ever, need only be given.) (At date of (Giving, in the case Deposit, as of Freehold or Lease- well as at any hold Property, extent time subse- of ground, description quently that of buildings, ground may be rent, annual rent, and necessary, assessed value, also stating date.) encumbrances. In case of Stock or Shares, rate of Divi- Idend. In the case of Life Policies, amount of premium, noting if on half-credit system, or burdened in any way, bonus additions and surrender value if known, inserting this last with date in pre- ceding column.) (On re- delivery, or on giving up any of the Documents or Securi- ties.) } $ 寸 ​INSPECTION. 105 Register of Securities for safe custody, which need only contain columns for- Date when received. Depositor. Description of Security. Receipt on redelivery. Books. Register of Securities for Safe Custody. Register of Plate received for safe custody, of which Plate Register. mention has been already made, ante page 67. Premium Diary, to which allusion has also been already Premium made, page 68. The Guarantors, or Obligants on Guarantee Book, which may be ruled with columns, on one page, for— Diary. Obligants on Guarantee Book. Folio of Register of Name of Guarantor. For whom. Branch. Securities. Sole or Joint Guarantee. Amount. And on the opposite page- OPINIONS, this page having much closer lines than the former one, and the book being framed in the form of an index. Probate Register, for the necessary particulars of Wills, Probate the probates of which have been exhibited. Register. General Signature Book, which should contain the General signatures of the whole of the account-holders' Current and Signature Deposit, and which may be thus framed :- Book. I 4 7 2 5 8 3 6 9 And so on, to 5000 or 10,000 if requisite. After the corresponding name in the Ledger, the number of the signature in this Book should be inserted, and where the signatures are numerous, a separate Index to the Book will be found very convenient for reference. 3 } ! 1 Books. General Signature Book. 106 INSPECTION. A Book in the above form is best adapted for Head Offices and large branches, while for small branches an Indexed Book framed, somewhat as follows, might be suitable: Date. Usual Signature of Signature in full Individual or Firm. of Individual or Partner. Occupation. Address. By whom Introduced. Bank Corre- spondents' Signature t Book. Bank Corre- spondents' Circular Book. Weekly Return Book. Register of Letters Received. Correspondents' Signature Book, a thick volume used exclusively for the signatures constantly arriving from the various bank correspondents. Correspondents' Circular Book, a similarly sized book for introducing the numerous circulars received. Weekly Return Book, for copies of the returns of the debtor or overdrawn accounts made weekly to Head Office. Register of Letters Received, which might be framed thus, to ensure due attention being paid to every letter:- Progres- sive Nos. When oo to received. From Address. Substance of Contents. Attended to. 10,000. these letters, it need hardly be observed, being carefully preserved and arranged, so as to be readily procured at any time. And it may be noted, that in marking off letters as attended to, this should be done by a short mark * f f INSPECTION. - 107 on the left-hand upper corner of the first page, and not, as is sometimes done, by a mark down the whole of the letter, Books. for in some cases this might be attended with serious consequences, as indicative of the cancellation of the letter. And for copying letters despatched, as all business letters should be copied in some one of the prescribed books as Letter Books. follows:- The General Letter Book, London Letter Book, Head Office Letter Book, And Private Letter Book, for letters strictly private, to the Inspector-General or Manager-General. Letters Posted or Despatched Book, ruled with money column for postage, the amounts of which should, particu- larly in the larger branches, be summed and checked daily. And exclusively for Head Office will with its other books be: Head Office Cash Book, Books. Exclusively for Head Office. Head Office Ledger, Head Office Balance Book, Branch Entries in Transitu Diary, Branches General Ledger, Bankers' Ledger, Sundries Ledger, The London Diary, The London Current Account Book, The London Outstanding Item Book, Weekly Balance Book, Weekly View of Assets and Liabilities, Register of Shares, Share Ledger, Register of Transfers, Share Certificate Book, Shareholders' Address Book, Annual List and Summary Book, and Dividend Book. { 1 4 + 1 } F { : 1 Books. General Cash Balance Book. 108 INSPECTION. And the General Cash Balance Book, used in checking the cash at Head Office and the branches, may be thus framed :- Balance of Cash at PROVINCIAL BANK. on 18...... Notes:-1,000 .... £ 500. 100 50.... 20 ΙΟ 5 .... Various Sovereigns... Half-Sovereigns Silver Copper Miscellanies : Total .... ...£ Certified by Compared with State Book and found to agree, (Signature of State Book Clerk) And at the beginning or end of the Book a summary may be introduced, thus:- SUMMARY OF CASH BALANCES. From.... 18...... to 18..... Branch. Notes. Coin. Total. Date. Notes. Coin. Total. Date. Notes. Coin. Total. Date. Notes. Coin. Total. Date. Notes. Coin. Total. several of the branches occupying each folio. | Date. ? 1 • INSPECTION. 109 In connection with the Minor Branches, some of the Books mentioned in the preceding General List may be Books. comprised in one volume, and others it will be unnecessary Branches. to use. Minor Traders' By Merchants, Manufacturers, and other Tradesmen, or Contrast with by Trading Companies, the Books kept, or which should Books. be kept, are the Invoice Book, for goods purchased; the Sales Book, for goods sold; the Cash Book, for receipts and expenditure, and this book should agree with the traders' Bank Pass Book; the Petty Cash Book, for petty payments not made by cheque; the Bills Receivable Book, for bills the amounts of which are to be received. The Bills Payable Book, for bills which have been accepted, and which fall to be paid by the trader; the Journal, for the entries comprised in the above books; the Ledger, for the items appearing in the Journal. There also may be some subsidiary books depending on the nature of the trade carried on. The Balance Sheet is prepared from the extractions of the Ledger. In the case of trading Joint Stock Companies, there will be also the necessary books in connection with the share capital. Having examined the various Books at the Branch, the Completion of Report. general inspection may be said to be concluded, and the Inspector will then proceed to complete his report by the necessary observations to be made under its last heading, "Remarks." These should begin by a reference to the matters noted in the preceding report as irregular, or requiring rectification, and a statement given as to what has been effected in connection with them. Then should follow observations upon the manner in which the books and accounts are kept, and the official work conducted, with details of all other matters necessary to be noted, including an occasional report on the state and safety of the premises, and the arrangement made or existing in connection with the custody of the Keys of the Strong 2 J + J IIO INSPECTION. Room and Safes. Observations, also, on the condition of Completion of the trade of the locality should occasionally be made. Report. Inspection Letter. Then will follow, when necessary, the Inspection Letter to the Branch. In these days of amalgamations with, or "taking over” private banks, an Inspection Letter, such as follows, may be necessary, after the first prolonged inspection visit:- THE PROVINCIAL BANK, Liverpool,……………………………………., 18... To The Manager, Branch. Dear Sir, General Business. Cash Book Balance and Cash Items. Cash Orders. Officers' Cheques. INSPECTION-GENERAL BUSINESS. Since our recent occasional visits we are glad to observe that the duties in connection with the various offices and departments of your Branch have been more efficiently and satisfactorily performed, though, from the lengthened inspection just terminated, we find that there is still considerable room for improvement, and that there are many points to which your special attention will require to be given. To these we shall now refer in detail, presenting our remarks and instructions in this shape for your better guidance and government in future, premising that this letter will be confined to the general official and ordinary business, while the letter which follows will be devoted exclusively to the securities. The Teller's Cash Book balance should always correspond. with the State Book balance, which, of course, represents the balance of the cash on hand. "Cash Orders," if they really require to be dealt with when received, and passed through the State Book, should also be credited in the Teller's Cash Book, though the better and more regular practice is not to pass entries until the instruments are actually collected. Of officers' cheques held over, where cash is required by any of the bank's officers to meet an emergency after INSPECTION. III Letter. the close of business, a cheque must be given at the time, and it is indispensably necessary that it be passed to the Inspection debit of the account on the following day; but irregular General payments of this kind should always be strictly guarded against. Business. Collection. We have to express our disapproval of cash being Instruments withdrawn against cheques or other instruments left for left for collection, and trust that in future the necessary entries will be made through Suspense Account, in the event of the presenters of the instruments not feeling inclined to open regular accounts in their own names. Cheques held over. The amounts detailed on the back of A. B.'s cheque, Details of Payment on 5th inst., for £175 sum, to £170 only, and payment Cheques. according to the details of the latter would account for the £5 over in your cash balance of that date. Of C. D.'s unpaid cheque for £27 10s., forming, also, part of the cash balance, it is quite against our practice to "hold over" cheques in this way, and if there is not sufficient provision for them, they ought in every instance to be returned on the day of presentation. Notice, advising the holding over, is not sufficient to relieve us from responsibility. With respect to notes, each denomination will, of course, Paying away be numbered consecutively; and great care should be taken by the Teller in arranging his notes according to these numbers, and paying them away in due order. Notes. It need hardly be added, that the Teller's Cash Book should always be properly balanced and completed at the close of each day's transactions, and that, under the heading "Miscellanies," in the Cash Balance Book, the Miscellanies. particulars of each item should be introduced. Deposit In balancing the Ledgers, the balance of each account Books. should invariably be proved by the summation of the Current and debit and credit columns, and with reference to the decimals Account wrought and checked in the usual way, it will be advisable for one of the superior officers to occasionally test the Ledgers. 1 J } I12 INSPECTION. Inspection Letter. General Business. Books, Current and Deposit Account Ledgers General Ledger. Bill Diaries. accuracy of these, and he should particularly notice whether they are inserted in the right columns. A number of the accounts in the Deposit Ledgers might with propriety be transferred to the Current Account Ledgers. Care should be taken to have the headings of the accounts in as complete a state as possible, and whenever changes occur in the parties entitled to operate, the requisite particulars should be given. In connection with companies and societies, such changes should be properly authenticated. [See "Accounts," vol. i., p. 3.] In the case of similarity of names, very great care should be exercised in passing vouchers in such a shape as to facilitate their being posted to the right accounts. The calling over or checking of the postings in the Ledgers with those in the State Book, should be effected not later than the following morning, and, if possible, before the Bank is opened for public business. We observe that, to save time, the weekly totals only of the Cash Account were posted into the General Ledger. This is altogether irregular. The daily totals of all the accounts must appear so that the Ledger may be a complete record, enabling a balance to be struck by it at any date. It is absolutely requisite that the balance of the Cash Account in the General Ledger, and not the balance as appearing in either the Cash Balance Book or State Book, be inserted in the weekly return. Bill Diary. To insure additional accuracy in the keeping of the Bill Diary, its entries should be checked at least once a week with those of the Bill Register, care being taken that the amounts to be inserted in the Diary are those only of the Bills remitted to Head Office, and not of those sent direct to any of the Bank's correspondents for collection. Miscellaneous Bill Diary.-We think it very desirable } INSPECTION. 113 Letter. Books. that you should have a Special Diary for the purpose of entering under their respective dates of maturity the Inspection amounts of the Miscellaneous Bills, or those bills classified General under the headings of "Bills on Hand to be Credited Bills Business. for Collection," "Bills to be Accounted for to Correspon- dents," and "Bills held over for Credit of Clients," at the end of your Bill Register, in order that the time, when due, of these, may be kept prominently in view, and to serve as a check upon the Bill case. The Diary in the Bankers' Almanac, or one of Letts's Annual One Shilling Diaries, might be used for the purpose. Pass Books. It is of great importance that the Pass Books Pass Books. should be neatly, distinctly, and correctly written-up, and that none should be given up to the account-holder without its balance being, by a superior officer, in the absence of yourself, first verified with that in the Ledger. We regret to find that many of the Pass Books contained entries out of order occasioned by the Teller returning to the Account- holder the Book without first passing it to the Ledger- clerk for comparison with the Ledger. Many of the books also were without the Ledger folio numbers-an omission which should be guarded against. On the loss of a Deposit Account Pass Book an arrange- ment should, in the first instance, be made with the account- holder to pay only to himself personally when money is to be withdrawn, and he should be requested to make con- tinued diligent search for the Book. If not found after a considerable interval, a duplicate Pass Book may be given; this being duly noted in the Ledger, and the word "Duplicate" should be prominently written on the Pass Book. Book. Signature Book.--Your earliest attention should be given Signature to the completion of the Signature Book, a book to which very great importance is attached, and in which the signatures of all the account-holders, both current and deposit, should be inserted. The book should be devoted H } 霉 ​I گئی 1 1 Inspection Letter. General Business. Books. Signature Book. Dishonoured Bill Notice - Book, and Returned Bills. Opinion Book. Minute and Procedure Book. 114 INSPECTION. exclusively to its own purpose, and all the mandates with which it is encumbered should be detached, and either preserved in alphabetical order in a suitable case, or gummed in a "Mandate" or "Authorities" Book, framed in scrap book fashion and kept duly indexed. Please take the earliest opportunity of instituting a com- parison of the names with those in the Ledgers, making a list of all omitted signatures, with the view of their being duly obtained. When an account-holder varies his signa- ture, he should be requested to sign afresh in the Signature Book. Dishonoured Bill Notice Book.-The Dishonoured Bill Notice Book should only be used when the bills received dishonoured are placed to Returned Bill Account, and in- timations of the dishonour necessarily issued to the various obligants. In the case of all Dishonoured Bills, "unpaid" should be written in red ink against these in the Discount Ledger, adding “advice differs" when such is the explanation given of their return. In sending back to the account-holder a bill or other instrument dishonoured, or withdrawn, it should be accompanied by a relative cheque, with the request that this be duly signed and returned. Opinion Book.-Each page should be reserved for two names only, in the manner indicated in pencil on the fly- leaf of your book, as due space should be kept for addi- tional information in one place instead of inserting it in different parts of the book. To some names it may be necessary to appropriate one or two pages. Minute and Procedure Book.-This Book is intended to contain, besides the minutes of committee, any instructions in connection with the accounts that may be conveyed to you by letter from Head Office; and, in the latter case, the entries should be made generally in a condensed shape, care, however, being taken to leave out no particulars of importance. 7 } INSPECTION. 115 Letter. Drafts Issued Drafts Issued Book.-We rely upon you seeing that all drafts are entered in this Book, and that they are duly Inspection initialed by the entrant before signature and issue to the General applicants; and that at the end of the day the requisite Business. comparison is made between it and the Vouchers and Books. Letter of Advice. If these precautions had been observed, Book. the discrepancies that exist would not have occurred. Errors may have arisen from double entries, as in the case of an issued draft afterwards cancelled, and there may be omitted entries in your book, the latter of which should be detected by a comparison with the counterfoils of the drafts issued. A thorough investigation must be made, as it is of the first importance that every draft should be satisfactorily accounted for. Life and Fire Premiums. standing- January I to 5-A. B.- 27 to 31-C. D.— February 16 to 20—E. F. and March 25-G. H.— J. G.- and K. L.— There were found out- Life and Fire .due 3rd January, .due 30th January, .due 17th February, and the entries are short of the number of insurable deposits, a matter which must claim your immediate attention. With reference to the premiums due by A. B. and C. D., we certainly think that so long as the Deeds are left with us and the account-holder is at liberty to overdraw at any moment, his premium receipts should be produced as usual, notwithstanding that the account may have for some time been continuously and considerably to the credit. Strict adherence is expected to the rule that each premium be paid not later than three days before the last day of grace. Premium Diary. Accounts. Stamp Account.-We expect this account to balance Stamp Account. 1 Inspection Letter. General Business. Accounts. J Postages Account. Computation of Accounts. 116 INSPECTION. exactly, and a note should be kept of any stamps used for Call and other Receipts, so that the amount may be duly charged at the end of each half-year. Postages Account. This account, with the daily checking and weekly balancing, should always show an exact balance. Number of Accounts.-The accounts numbered thus:- Current as per Balance Statements of 17th March- A. to D... E. to J. K. to O. P. to T.. U. to Z. 492 480 410 500 450 2332 2343 I I But per your Money Lent and Lodged Book of that date:- Overestimated Deposit as per Balance Statements of 17th March :— A. to G. H. to P. Q. to Z. 2035 1972 1701 But per your Money Lent and Lodged Book of that date: Overestimated ... Totals 5708 5723 15 26 8066 8040 Vouchers. Credit. Showing a total of 26 overestimated in your Money Lent and Lodged Book, which please have corrected, and see that in future greater accuracy is observed. Credit Vouchers.-In connection with the Vouchers, it Lodgments to is to be particularly noted that the credits should be duly signed by the person leaving the amount. If unable to write, the mark of the person should be obtained. If the credits arrive by post, the blank space at foot should be filled up thus : 1 1 INSPECTION. "By letter of............" (mentioning its date). * 117 Inspection Letter. Of the credit of A. B. for £1200, particulars of this sum General are not given; and if it was lodged by Mr. B. himself, Business. his signature or initials ought to have been appended. Vouchers. Lodgments to On notes arriving by halves, credit will not, of course, Credit. be given to the account-holder until receipt of the counter- parts, or proper completion of the remittance. For sums paid to the credit of the Savings Bank, the following should be the terms of the form :— [As in volume I., page 21.] Cheques.-The Cheques should, under the circumstances, Cheques be thus framed : No. To .... Esq., Treasurer of the By Savings Bank. Savings Bank, 18 Savings Bank, at the Provincial Bank. Pay to or order to the debit of the Savings Bank. Manager. Actuary. Manager's Clerk. And when cheques are drawn against the Building Account, or Supplementary Investment Fund Account, it will be only necessary to add in writing at the end of the above form "Building Account," or "Supplementary Investment Fund Account," as the case may be. Company Cheques. In several instances these were signed without its being stated that they were drawn on behalf of the company. When the cashier of a company is to draw for wages, the requisite written authority must always be obtained from the Company. Drafts on the A Company, by their New York By Companies. 1 } f 2 { { : Inspection Letter. General Business. 118. INSPECTION. Agent. We find you are in the habit of paying these drafts upon the written request of the Secretary only, and before the regular cheques to retire them are given by the Company. We very much disapprove of this practice, which must not be continued. If payments are desired to be made by anticipation in this way, the regular standing Companies. authority of the Company must be obtained. Vouchers. Cheques - By A. B. Railway Account.-From the debits, the account should have been headed, "The Railway Coy. } Account per }) Company Indorsements. } Alterations in Cheques. But the forms of the debits used are imperfect and unsafe, even with the List you have for reference, and which list, it may be observed, is inadequately made out. The form of cheque must be so framed as to bear the signature of the necessary officials of the company, and for greater protec- tion should be crossed. "Chief We do not accept per pro indorsements by a Clerk," or a "Cashier" of a Railway Company, unless guaranteed by the presenting banker; and with reference to the indorsement by a "Collector" of a Joint Stock Company, this should also not be passed without con- firmation. Cheques payable to the "Secretary of A...... Company, or order," should be indorsed by him on behalf of the Company, and not merely by his name with "Secretary" only added. And cheques payable to "A…………………..Company, or order," should be signed for the Company by the proper official, and not merely with his name and office, as "John Smith, Secretary, A.........Company," though we believe indorse- ments of this kind are accepted by some of the London Banks. Cheques altered in a material part, as from order to bearer, should bear the confirmation of all the drawers, and not one of their number only. This with special reference } * 1 វ to the A...... INSPECTION. 119 Tramways Company, and other Joint Stock Coy.'s accounts. and Overseers of B- Inspection Letter. -We General Business. Vouchers. Cheques. Overseers of A— observe you still use the old forms of cheque drawn on account of the Churchwardens and Overseers of the respec- tive townships, and in the case of B- — one Overseer Overseers. alone signs. New forms upon the proper address should be used, and the office being abrogated, “Churchwardens, &" should be omitted, and in every case all the Overseers should sign. Some of the cheques were unindorsed, and many contain no particulars of payment and were un- cancelled, and the whole of the cheques were unstamped. Overseers of E——— and other Overseers' Accounts in names of three Overseers. We observe you have paid on the signatures of two Overseers only. It is our practice to require the cheques to be signed by all the Overseers, and not to accept authorities from all for any of their number to draw. Cheque in favour of the Overseers of F 1 or Order, indorsed by the Assistant Overseer only, must be returned for the signatures of the Overseers. Cheque made payable to "Assistant Overseer of A- and indorsed per procuration of him, should have been returned for indorsement by himself. - A.B.'s Trustees. In connection with this account and Trusteeship and Joint various other Trusteeship Accounts, only one of the Accounts. Trustees draws; and on the joint account of A.B., C.D., and E.F., the cheque of 25th ult. withdrawing the balance of £750 6s. 3d. was signed by A.B. and E.F. only. We observe that you have acted upon the principle generally of paying upon one signature in the case of accounts opened in joint names, unless the direction "Both to sign" or "All to sign" was noted. We beg, however, to point out to you that all joint-holders must sign, unless there is an authority given for "either" or "any" to sign; and this } { } 1 } Inspection Letter. General Business. Vouchers. Trusteeship Accounts. Notice by one of several Executors. Union Cheques. Church Accounts. Married Women. Executrix Marrying. I 20 INSPECTION. should be duly shown both in the Pass Book and the Ledger. In the case of Trustees, it is equally imperative for all to sign in the absence of authority for one or a portion only of their number to sign; and this authority, according to the better and safer opinion, cannot be given by them unless permitted by the trust deed. With reference to the account in the name of A. B., of C., now deceased, showing a credit balance of £3,560 7s. 9./.. and the notice received from one of the three executors D. B., that no money must be paid without his sanction; in drawing, the whole of the executors should, under the circumstances, sign. In connection with Union Cheques, a procuration indorse- ment of the payee should not be received [Vol. I., p. 9]. Of the account in name of the Vicar and Churchwardens of St.'s, authority from all should be obtained if the Vicar alone is to sign. In all cases where accounts are opened in the names of married women, the form of mandate or general authority [Vol. I., p. 34] for signature of the husband should be invariably used. Executors of the late Mrs. Jane Smith: Mary Jane Smith and John Jones, Executors.-Mary Jane Smith having got married to William Robinson, this should be so signified, with date of the event, in the heading of the account; and an authority in the following terms should be obtained from her husband :- To the Provincial Bank. Gentlemen, ...18... I hereby authorise you to honour the signature of my wife, Mary Jane Robinson, formerly Mary Jane Smith, as executrix of her late mother, Jane Smith, of on the account, in name of the "Executors of the late Mrs. Jane Smith: Mary Jane Smith and John INSPECTION. 121 } Jones, Executors," with you; and I also hereby confirm Inspection all cheques already so signed by her on that account. I am, Gentlemen, Your most obedient Servant, WILLIAM ROBINSON. When obtained, a note of the fact, with date, should be added to the heading of the account. A. B., C. D., and E. F., Consols account o/a Letter. General Business. Vouchers. Chapel. Death of We observe that the whole of these fundholders are now dead. That being the case, it will be requisite, in making the necessary transfer, for the probate of the will of the survivor, and the burial certificates of the others, to be exhibited to the Bank of England, who, on these being left with them, will forward you the Declarations needful to be made. Fundholders On the death of a minor, payment should only be made Minors. on the production of Letters of Administration, the person to administer being either the father or mother, whom failing, a brother, sister, or nearest of kin, and failing all, a creditor, as one who has become so by furnishing necessaries. In deposits on behalf of a minor, however, these should be made, if possible, in the name of another as Trustee, so that the account may be operated upon at any time by the latter. In the case of "Miss R. S., Minor," you pay the balance of the account, £137, on the signature of "T. S.," there being added by the Teller paying, "her father," and "For R. S., Minor." Where money is in the name of a minor exclusively, it is at the peril of the Bank that payment is made before majority, and payment during minority should only be made under most exceptional circumstances, and not before a proper indemnity is received. We observe that you have accounts opened thus:- Conditions. "Jane Smith, and John Smith, her son, to be drawn by Jane Smith only during her lifetime, and at her death by John Smith;" but we doubt very much the propriety of } 1 122 Inspection Letter. General Business. Vouchers. Intemperance. Mark. INSPECTION. this being done, as, apart from questions with the Revenue authorities, difficulties might arise should the party having control of the money die, leaving a will. With those account-holders, in the unsatisfactory con- dition from intemperance of A. B., wishing to withdraw money, you should, when they cannot be prevailed upon to defer drawing, see that their signatures are properly attested. Attesting In attesting signatures by mark the word "witness" Signatures by should, in every instance, be attached to the attesting signature. If the attestation of an outside witness cannot be obtained, then another of your own staff may be the second witness. "Witness" should be written by the attestor himself, his address being prefixed. Changes in Signatories. In paying a cheque presented by a payee who cannot write, the Teller should be sure of his identity before attesting his mark. In the authentication of a mark the mere name should only be stated; although we think, with reference to the cheque of A.B. presented with the indorsement:- "Mr. C. D., X his mark, "E. F., Tea Merchant, "Lord Street, Liverpool, Witness,” that this is effectual, the introduction of "Mr.," though irregular, being immaterial. The marksman does all that is required of him when he makes his mark, and the witness merely attests the fact that the mark was made in his presence, and we should think his adding a description. to the name to be really of little or no consequence. ...and District Permanent Benefit Of the...... Building Society.-Trustees :- { - A. B. C. D. E. F. and G. H. 1 3 } INSPECTION. The various cheques of the 9th inst. were signed by- A. B. I. J. C. D. and countersigned K. L. 123. In all cases of changes in the operators of an account, the requisite information should be given in the Ledger, and, in connection with Societies, they should be authenti- cated by production of the minutes of meeting or a certified copy of them. Inspection Letter. General Business. Vouchers. Changes in Signatories. With reference to the debit on 24th ult. to A.B. of his Advice Cheques. acceptance for £250, it is always preferable to have the usual advice cheque. It is our practice here not to pay without such advice; and if the account-holder has occasion to go abroad, or to be long absent, a standing order is procured from him to debit his account with all accept- ances of his that may be presented. And, with reference to the advice cheques on the A- Company Limited Account, and any other Joint Stock Coy's Account, we think that no distinction in the mode of signing should be made between them and the ordinary cheques. In the present instance the two directors should have signed as well as the secretary, and this was the more essential as the acceptance retired was not that of the company. When advice debit forms or slips are used for passing one or two entries from a series of advices, or from a monthly list of them furnished by the account-holder, the date of the original advice should always be stated, and the forms should bear your initials or those of the accountant. Debits. If, in connection with an informal document, circum- Informal stances necessitate immediate payment, a proper cheque should in all cases be subsequently obtained. } 1 * Inspection Letter. General Business, Vouchers. Placed to Credit. Self or Order. 124 INSPECTION. A. B. cheque debited 15th ulto. for £100, payable to C. D., or order, and endorsed "Placed to Credit," but without confirmation. In future future your Own or the accountant's signature should be attached to cheques treated in this manner, though it would be preferable to have, when at all practicable, the indorsement of the payee. With cheques payable to "self, or order," it would be advisable to have the drawer's own indorsement, and not one per procuration of him. And under the special cir- cumstances in connection with the encashment of A. B.'s cheque for £300, 15th inst., payable to self, or order, and indorsed C. D. for A. B., we think the drawer's own indorsement should be at once obtained. Exhibition of In connection with the exhibition of either probates or Probates, &c. letters of administration, the necessary particulars [Vol. I., p. 55] should of course be invariably inserted in the Ledger and Probate Register. t Stopped Cheque. Crossed Cheques. In the case of Mrs. L. M.'s trust, you have, with reference to Mr. S. T., the joint trustee, the following note in the Ledger:-" Died, 15th Dec., 18-. Card exhibited by V. W., 5th Feb., 18-." The exhibition of the card, whether intimating death, or an "In Memoriam" one, is, however, not enough, and in all cases on the death of a joint trustee or joint account-holder, the Probate, or Letters of Adminis- tration, or, failing these for a time, the Burial Certificate should be produced before payment to the remaining trustees or account-holders. Of the £150 stopped cheque of A. B., you will of course. keep in view that payment should only be made on the written withdrawal of the stop. Crossed Cheques paid to private individuals.—You will please understand that any adoption of such a practice is entirely at your risk. It should not be resorted to at all, as you have always a sufficient answer in the statutory prohi- bition against such payments. A Crossed Cheque returned unpaid, and subsequently re-presented for payment by INSPECTION. 125 Letter. the payee himself should not be paid to him, but to his Inspection bankers named in the crossing, and through whom it origi- General nally came. Business. Vouchers. On the withdrawal of the balance of an account, be very Withdrawa of careful to see that the words "being balance of my [or our] Balance. account" are introduced immediately after the amount in the body of the cheque. The debits to A. B. of 15th and 20th inst. should have General been by regular cheque, or the stamped authority of A. B. Irregularities. should have been attached. His Cheque for £300, 21st inst., is uncancelled; and there should have been inserted before the amount "by draft on London," or "on applica- tion in London," as the case may be, if the indorsement of the payee could not have been had at the time. The negotiability of the Cheque for £120, debited 25th instant, having been restrained, by the erasure of the word "bearer," the amount should only have been paid to the payee himself. All debits to Incidental Expenses Account should be initialed by yourself or the accountant. A.C. and B.C.-The Cheque for £350 is signed by A.C. only, and does not bear the indorsement of F.C., to whose order it is made payable. The cancellation preceding the payee's indorsement on D.E.'s Cheque for £175 should have been confirmed by the drawer. The Cheque for £135 17s. 6d., debited 2nd inst. to A.B.'s account, is signed A.B. & Coy. The Cheque of L.M. for £5, 3rd inst., signed by mark, is unwitnessed, undated, uncancelled, and without particu- lars of payment. The Cheque of R.S., 30th ult., altered from £300 to £360 in the body, should have been confirmed by the drawer before payment. Advice of acceptance cheques, and signatures by mark were, as a rule, found uncancelled, and the latter { $ 1 ; { } } 4 & Inspection Letter. General Business. Vouchers. General Irregularities. > 126 INSPECTION. unwitnessed. These omissions must be very carefully guarded against in future. A cancelling stamp should be at once obtained, and used on every paid cheque at the end of each day. Where parties sign cheques in an official capacity, as Treasurer, or Trustee, &c., or on behalf of another, they should themselves sign in full, instead of the signature being completed by the Teller, paying, as in the cases of the A.B. Charities, and the Trustees of C.D.; and where account-holders sign cheques by mark, these should always be attested by two witnesses. The cheque debited in D.L., f. 1021, for £150 15s. 10d., is incomplete in the signature. Immediately following the amount in the body of the cheque there should be "and debit the account of the Cabinet Makers' Society," and this and the word "Trustees" should be written by one of the number signing. A. and B.C.-To be drawn by either. Cheque debited 30th ult. for £50 by A.C., but not signed as for A. and B.C., or for self and B.C. The signature should always be completed by the drawer, and should agree with the title of the account. And, in the case of the Hospital Account, several cheques debited were omitted to be signed as on account of the Hospital. A.B. and C.D. Cheque drawn by A.B. only. If the intention is that one or either should draw, the requisite authority, signed by both, should be obtained, and this authority should cover all past transactions. The correcting debit form, made out by the Ledger Clerk of Ist inst. for £309 IIS. 6d., was not authenticated by either your own or the accountant's initials. The error was stated as not appearing in the Pass Book. Had it been also in the latter, a correcting cheque would have been necessary from the account-holder. In the case of C. D., of E., we would not have allowed the one day's interest on £975 9s. 3d., the £900 having 3 1 ļ INSPECTION. 127 Letter. been withdrawn the following day, and the balance only Inspection three days beyond the time for which interest is exigible. General Nor would interest have been allowed F. G. on his deposit Business. of £560 made on 13th January, and withdrawn on the 8th Vouchers. of the following month. A. B. should be apprised of the very unbusiness-like way in which many of his cheques are drawn. With the long blank spaces before both the written and figured amounts, opportunity is afforded for largely increasing the sums. He should be made fully aware of the risk he runs by issuing cheques in such a condition. The cheques of C. D. for £50 and £70, each payable to "Miss E. D., bearer," "or" being erased, are not endorsed. The transfers : f. 450 A. B., No. 2 a/c Jany. 19, £300; f. 1048 C. D. to Br. Jany. 31, £509 7s. 6d.; and f. 2019 E. F., balance of £950 6s. 3d. to G. H.'s account, should not have been made by debit slips only, but by the cheques of the account-holders themselves. Notwith- standing the explanations given with reference to the last transfer, the proper cheque should still be obtained, and we are surprised that this was not got from Mr. F. at the time the unsigned scrap memorandum of instructions was stated to have been given. J. K.-In this and similar cases, please in future note on the debit slip the date of the letter requesting the transfer or remittance, if the letter itself cannot be attached to the voucher. And the instances should be very few indeed where it cannot. L. R., 30 ulto., £50.-Failing her endorsement, the letter should have been attached to the cheque, or the facts duly noted on the back of the cheque if the letter was required for other purposes. A. B., f. 1270.-In the cheque for £120, debited 7th January, the payee's name was altered without the necessary confirmation. General Irregularities. $ 1 Inspection Letter. General Business. Vouchers. General 128 INSPECTION. In several cases the word "order" was erased by "bearer" stamp, which, though done for use of drawer in the bank, should still bear his confirmation. Exrs. of C. D., f. 1480.-The cheque for £179 7s. 3d., Irregularities. debited 11th January, was signed by E. F. and G. H., as the executors. You have the names E. F. and J. K. as the executors in your Ledger. Errors in Accounts. Credits Established. Bills for Collection, &c. To guard against counter-balancing errors, such as those in the current account Balance Statements L. to R. and S. to Z., care should be taken to balance each of the Ledgers separately. Considerable difficulty was occasioned in balancing the Deposit Accounts in consequence of the following errors, all of which were overlooked by the auditor, the erroneous balances having been passed by him as correct :- Balance of account, folio 53, extended in error £2000; Balance of account, folio 321, £808 os. 4d., extended as £808 4s.; and Balance of account, folio 979, £663 15s. 11d., extended as £603 15s. IId. In several of the accounts the year had not been inserted, and there were in too many instances erroneous dates of posting, irregularities which must be strictly guarded against in future. All the overdrawn, and the more operative of the Deposit Accounts, should be transferred to the Current Accounts. A separate record should be kept of credits established, of advices received to pay cheques of other Branches, or of the Bank's correspondents, and of all matters out of the usual routine, in order that no such difficulty may arise as lately occurred during your absence. In opening credits for clients, due advice should of course be given to Head Office. Bills sent for collection from Head Office will be retained by the Branch without entries being passed. On maturity, if paid, the amounts should be credited to "Bills for 1 INSPECTION. 129 Collection;" if unpaid, they should be returned without Inspection entry. Letter. General Bills sent for collection and credit by Scottish and Irish Business. correspondents to the Branch, will also be retained without Bills for Collection, &c. entries in the first instance being passed; but on maturity, if paid, they should be credited to the respective corre- spondents, and if unpaid, they should be credited and debited the latter. All bills such as the above, and other documents and instruments held to be accounted for, or held over for credit, should, however, be recorded under their dates of maturity in the Branch Diary, as an additional precaution against their being overheld or overlooked. Orders. With regard to trader's orders on demand drawn for Traders' amounts due, as we are not debt collectors, these should be sent back to the correspondent, with an intimation that we regret to have to return them without presentation, that while of course we are glad to attend to the collection of cheques on the other local Banks, and to acceptances locally payable, it is quite out of our province to undertake the trouble and inconvenience, of what with the other instru- ments, is practically merely the collection of debts between tradesmen. Bills. With bills discounted, care should be taken to have the Remitting numbers very distinctly impressed on the left-hand lower corner, or centre; and in remitting to Head Office, the bills must, of course, be specially indorsed. Those which are so near maturity as not to admit of being sent to Head Office, should be treated as cheques. In remitting instruments for collection to provincial correspondents, these should be carefully recorded; and when advice of their payment is not received, should only be cashed to the owner after a reasonable time has elapsed for their return in case of dishonour. Notes. All country notes should be at once remitted for Remitting payment. Notes of any of the Irish banks may be forwarded to the Provincial Bank of Ireland, Dublin, for I ? { Inspection Letter. General Business. Remitting Notes. } Remitting Cheques. Dishonoured Bills. Adminis- tration. Executors. 130 INSPECTION. credit; and all Scottish notes should be forwarded to any of the Bank's Edinburgh agents, except the notes of the North of Scotland, the Aberdeen Town and County, and the Caledonian Banks, these Banks not having offices in Edinburgh. It may be added, that wherever there are two or more branches of different Banks in a Scottish town they have exchanges, so that should you have occasion to write to one and have notes issued by another in the same place, you may at the same time remit such notes to the Bank with whom you are corresponding. In remitting Bank notes on several successive days, the amounts should be different, so that each remittance may be readily distinguished. All letters containing notes should of course be registered. In remitting cheques, care should be taken that the crossing is distinct. From being illegible, the necessity has sometimes been imposed of sending them on to Head Office for transmission to the Branch where the act of carelessness has arisen. Bills having the names of parties abroad refused accept- ance, should be at once returned with extended protest. When money is received on account of past due bills, the amount, whether to meet principal, interest, or charges, should, with the date of payment and name of obligant paying, be indorsed on the bill. With reference to the following, we beg the favour of a reply at your earliest convenience :— I. "Administrator of E. F."-The cheques debited 11th January and 8th February, however, being signed by E. F., and the credit of 13th March being in name of the latter, Have the letters of we presume he has since died. administration been exhibited ? 2. L. R.-Have the letters of administration been again applied for and the requisite note of particulars taken ? 3. C. D.'s cheque of 1st, and debited 5th January, for £150, payable to "The Executors of the late E. F., or order," endorsed :— 1 15 1 INSPECTION. "For G. H. "(Executor of late E. F.), "H. J." 131 Inspection Letter. General Business. Do you know that G. H. is one of the executors, and that Executors. authority was given to H. J. to grant such a discharge for them? So unusual an indorsement demands the fullest explanation. 4. "Executors A. B., per C. B., Executor."-The various cheques debited on the 27th, 28th, and 30th January, 5th, 7th, and 20th February, and 3rd March, are signed— (C Per pro Trustees of A. B., "D. E. B." Please explain, and, if really a trusteeship account, state whether an authority has been obtained from the whole of the Trustees for Mr. D. E. B., or one of their number, to sign, and if they can give such a power under the will. The heading of the account should be exact and explicit, and should contain all necessary particulars. 5. "Executors E. D., per G. H., deceased."-Please explain why the title is left in such an incomplete state. The names of the executors of "G. H., deceased," should appear, and if there is an authority in connection with the drawing, the requisite particulars should be given. 6. Executors and Trustees of F. G., with reference to the debit of 12th January for £60 15s. 3d., being a transfer "to Mrs. H- Why was the cheque of the Executors and Trustees not obtained? "} 7. Cheque debited 17th March, £789 13s. 6d., is signed by the whole of the Executors of E. F.; while the cheque debited 23rd March, for £560 4s. 3d., bears the signatures of a portion only. Was there any understanding that all the Executors should draw upon the account? 8. "Exors. of A. B., per C. D., deceased."-Cheque debited 16th February, for £1,506 9s. 7d., is signed by "E. D. and F. D., Exors. of C. D., the surviving Executor of A. B." Was the probate of C. D.'s will C 1 } Inspection Letter. General Business. Executors. Joint Names. Church Account. Overseer Unable to Write. Married Woman. Husband. Minor. 132 INSPECTION. exhibited, and if so, why were the requisite particulars not given in the heading of the account? 9. "The Exors, of G. H., per J. K., Exor."-We observe that latterly the cheques on this account, instead of being signed by J. K. only, are signed by the whole of the Execu- tors, four in number. We think you should take an oppor- tunity of asking the Executors as to their reason for doing so, and whether there is any new arrangement, so that all doubts may be removed, and any questions prevented in the event of the issue of cheques again signed by J. K. only. 10. Of the account in joint names of A. B., C. D., and E. F., o/a St. Paul's Church, there should be a mandate obtained from all for the first to operate, if indeed all can delegate their power to one only in this way. This should be seen to at once. II. Overseer of P The cheques were signed by mark. If the overseer really cannot write, would it not be better to have his mark witnessed by the assistant overseer? How did such an overseer come to be appointed? I2. Mrs. A. B.—Have you yet obtained the necessary particulars in connection with her absent husband, and her power to deal with the money she has lodged? It is of the utmost consequence to ascertain her position without further delay. Do you know what has been done with the large amounts already withdrawn ? 13. Mary Smith, wife of John Smith.-Cheque 19th January, £500—signed, "For Mary Smith, (( "John Smith," and which amount is credited by him on 10th February. How does the amount come to be drawn by John Smith only, and then paid in by him subsequently in this way? 14. Miss R. S., a minor."-Be so good as to inform us of all the circumstances attending both the deposit and the withdrawal of the money, the latter having been effected by T. S., "her father," and "For R. S., minor," having been added to the signature by the Teller paying. And further respecting this, see our remarks, ante page 121. INSPECTION. 133 Letter. 15. Mrs. L. M.'s Trust.-With reference to the joint Inspection trustee's death and your note of the exhibition of the General 'Card," was not the usual legal evidence afterwards Business. furnished, and if not, please state the reason? 16. N. O.'s Trustees, per P. Q. and R. S., Trustees.- Balance of £571 45., withdrawn on following signature : "a/c P. Q. and R. S., N. O.'s Trustees. "for R. S. "T. U." A full explanation of this must be given. 17. J. K., surviving Trustee of Mrs. L. M.-The debit of 13th February, for £1,500, is signed "R. S., on account of L. M.'s Trust, K. and S. The heading of the account appears to be imperfect. Is Mr. K. dead? The debit also should have been by the ordinary stamped cheque. The debit of 15th February, for £349 2s. 3d., is signed, “a/c L. M.'s Trust. R. S." 18. S. T. and U. V. W.-Cheque £163 4s. 3d., debited 16th January, and 19. X. and Y. Z.-Trust Account. Cheque £320 18s. 7d., debited 17th March. The omitted signatures should be obtained at once, in both cases. With reference to the former cheque, it is signed by U. V. W., as "on account of A. B.'s trust." Your heading is confined to the names of S. T. and U. V. W. only. Please explain. Trustees. 20. A.'s cheque payable to the Liquidators of the B-Liquidators. Coy. Limited, and indorsed, "The B- Coy. Ld. "For self & Co-liquidator. "C-. D-." Have you satisfied yourself as to the regularity of this indorsement? Liquidators cannot be regarded in the light of partners, and all should sign, unless, in the case of bank- ruptcy, there is an order from the Court empowering one to act for the others, or, in the case of private liquidation, a resolution by the creditors to the same effect. 21. With reference to the cheque of B. for £50 to the + 134 INSPECTION. Inspection "C——— Coal Coy. or order," and indorsed: Letter. General Business. Liquidators. Indorsements. Transfers. Double Crossed Cheque. "D. E., for self & Co-liquidators of the "C— Coal and Iron Coy. Limited." This should not have been passed. In the first place, it is irregular, as not bearing an indorsement purporting to be the C Coal Company's. The cheque may in fact represent a payment due to the old concern, or to a separate company, and secondly, in cases of liquidation, where all the liquidators do not sign, it is necessary, as seen, to know the reason, and this should be gathered from the cheque itself. [And see Vol. I., p. 124.] 22. B. C. The cheque debited 19th January, for £569 7s. 3d., payable to D. E. or order, is indorsed, 'credited payee in D. R. 20/507." Please state why the cheque was not duly indorsed by the payee. And so of: 23. F. G.'s cheque, debited 1st February, for £73 8s. 6d., payable to the Treasurer of A Local Board or order. — In whatever way the amount may be applied, the requi- site indorsement should be obtained, a rule which should be very rarely indeed infringed. For the absence of the indorsement, it is not a sufficient excuse that the payee has an account with us, and that the amount has gone to his credit, 24. J. K. L.-Cheque debited 7th March, for £150, in favour of Mrs. Evans Jones, and indorsed "M. J. Jones." Was her identity known to you? She should have added, after her signature, "Wife," or "Widow," as the case may be, "of Evans Jones." 25. Had you a letter or any written authority from A. B. for the transfer of his balance to C. Branch? If so, it should be attached to the debit form used, this form, moreover, we observe, not having your confirmatory initials. In all cases of transfer it is preferable, however, to have a regular cheque from the account-holder. 26. How did A.'s double-crossed cheque, the second crossing not being that of Agent for the Bank in first crossing, come to be paid? • { INSPECTION, 135 Letter. 27. Miss J. T. Debit of 15th February, for £30.-Has Inspection anything further been heard about this remittance; was it General sent by registered letter, and what steps have been taken Business. to trace it? 28. J. K.- Promissory Notes for £100, £300, and £600. Have you discovered that these accompanied the conveyance on its re-delivery? If so, has the requisite acknowledgment been procured? Lost Remit- tance, &c. Documents 29. Of the debits to K. L. of 28th February, for £195, Irregular 3rd March, £63, and 15th March, £50.-Why were pay- ments made on documents of such an irregular character and not on the ordinary cheque? These documents are not addressed to the Bank, and the one for £195 bears no particulars of payment, is unstamped, and uncancelled. 30. G. H.—On 15th January he is credited £250 8s. 6d., and is charged with that amount on 14th February by unconfirmed debit form. Why was his cheque not obtained? 31. G. H. I.—Credit on 1st March £425, which amount was debited on the 27th of the same month by debit form, initialed by manager as "Investment in Caledonian Railway Ordinary Stock." If the money was paid in for such an investment, why was G. H. I.'s cheque not obtained, or his letter, if his instructions were so conveyed, not attached to the debit ? 32. The A— Alkali Coy. Limited. Is the signature Articles and by only the manager and secretary in accordance with the Rules. Company's articles? 33. The Joiners' and Carpenters' Society.-Besides the trustees, you have the secretary's name in the heading, but he does not sign. Is this agreeably to the rules? 34. The Permanent Benefit Building Society.-Is it in consonance with the rules that the president and steward only should draw? Are rules and articles of association invariably consulted by you? 35. Amalgamated Society of Engineers', cheque Variances. X 疲 ​} ኃ 1 Inspection Letter. General Business. Variances. 136 INSPECTION. £35 6s. 3d., debited 15th March. We notice that with C. D., E. F., and G. H., F. J. signs, and that the name of the latter is not given in your ledger. 36. The A. and B. Lighterage Coy. Limited - two directors and manager to sign.-Why were the cheques debited 1st March for £150 and £200, and 28th March, for £130, paid upon the signatures of one director and manager only, the director's, moreover, being a procuration signature? Who gave the authority in the latter case? 37. The Abbeyhill Stone Coy. - two of the three partners to sign.-How is it that several of the cheques were signed by only one partner? 38. Is A. B. a partner in the firm of D. C. and Coy.? If not, please favour us with the terms of the authority for him to sign on behalf of the firm. 39. "Jones v. Smith, per A. B., Treasurer, and C. D., Secretary," and upon which account Mr. B. appears alone to draw. Favour us with all the circumstances in connection with this account, and say if Mr. B. alone is fully warranted to cheque upon it. 40. H. J.-The cheques 28th January, £180, and 1st February, £123 10s. 3d., are signed H. J., Junior. Please explain. 41. H. K. and L. K.-If this is a joint account, as it appears to be from the heading, why do you pay upon the signature of one of the account-holders only? If there is an authority for either to draw, it should have been so stated in the heading. 42. Jane Smith, deceased, widow.-Balance of £607 os. 4d., drawn by John Jones, John Smith, junior, and William Jones, "under authority of James Smith, the Father." How did "James Smith, the Father," acquire a right to the money 43. Was any written authority received in the case of the K.'s, f. 534, and does the Pass Book bear the same heading as the Ledger? INSPECTION. 137 Letter. 44. A. B. and C. D., on account of E- Church.-The Inspection heading of the Ledger has, we presume, been duly rectified. General One of the cheques, however, was signed on account of Business. E — Bazaar Fund. Is there an account opened in this Variances. name? 45. F. G., 9th March, £1500 to H. J.-Was Mr. G.'s letter of instructions to Mr. J. produced at the time of payment of the above sum? See Mr. G.'s letter to you. Was the payment made in strict compliance with this, and why were the necessary particulars not given in the voucher ? 46. M. N., Spinster.-Cheque, 2nd January, £1000, signed M. N. and A. B.; and cheque 25th March, £750, signed M. N. and C. B. Please explain. 47. We have to request full explanations of the nature of the following transactions in connection with Suspense Account and Sundry Dividends Account. SUSPENSE ACCOUNT :- I. A payment is made to I. J., junior, on 18th February, of £739 25. 4d., the amount having been credited three weeks beforehand on account of F. J. 2. On 20th January, “£350 per F. G. H," the withdrawal of which is by unstamped, unsigned, and unconfirmed debit form on 23rd January. 3. We presume the payment of £25 17s. 9d. on 15th January was made to A. B. in advance on a cheque to be collected. If so, his cheque to the debit of Suspense Account should have been obtained. 4. There is a credit on 13th January, by C. and D., of £150, apparently against a payment for that amount, on 2nd January, to A. B., for C. and D. 5. There is a debit form for £60, on 11th February, upon which no particulars are given. 6. Debit of 30th January, E. F. £200, against which appear to be credits of £50 on 5th February, and £150 on 13th February. Suspense Items. 2 N 22 # P • 1 Inspection Letter. General Business. Suspense Items. Sundry Divi- dend Items. Errors, &c. Precautions. 138 ' INSPECTION. 7. Debit on 15th February, G. H. £25, against which there is a credit for same amount on 3rd March. 8. Debit 4th March, K. L. £500, apparently against credit for that amount of 5th February, as for J. L., and 9. Please favour us with the dates and particulars of credits against the payment of £320, to M. N., on 31st March. SUNDRY DIVIDENDS :- 48. 1. Credit 8th April, £65 9s. 6d., "o/a A. B.," apparently drawn by C. D. on 15th June. 2. Credit 8th July, £36 12s. 4d., "o/a E. F.," debited on 13th July, by debit form, initialed by deputy manager as on account of F. 3. Credit, 8th July, £6 9s., "o/a St. Paul's Parsonage," and debited 11th August, by debit form initialed by manager, as "to G. H., o/a St. Paul's Parsonage." 4. Debit, 9th July, £73 16s. 4d., o/a A- Freeholders.— Who are the A- Freeholders, and state the authority of B. C. to draw upon their account? 5. E. F.'s Charity, per G. H., I. J., and K. L.-Why was payment made upon the signature of one only of these persons, K. L. ? 49. We presume the errors in connection with the cheques, particularly of A. B., 21st January, £37 3s. 6d.; C. D., 23rd January, £630; E. F., 30th January, £390 5s. 2d.; G. H., 31st January, £25 7s. 3d.; I. J., 15th February, £49 Is. IId.; and K. L., 23rd February, £1670, have now been corrected. 50. And that the omissions in the vouchers, as per list left with you on Ist instant, are in the course of being supplied. We rely upon you going carefully through the statements sent you herewith, of Verified Entries, pages 41 to 98, duly noting and making the requisite corrections in your books where necessary. We are sure, from your knowledge of the fact, that the Bank is exposed to the risk of great loss by many of the INSPECTION. 139 Letter. General recent errors, irregularities, and omissions, that you will Inspection take immediate means, both for their rectification and for a prevention of their recurrence in future; and that with Business. regard to the various Societies and Joint-Stock Companies, Precautions. you will, particularly from what was stated to you verbally, not fail to have the respective rules and articles of associa- tion in every instance produced to you, and their provisions carefully noted. Yours faithfully, A. B., Inspector-General. C. D., Manager-General. THE PROVINCIAL BANK, Liverpool, 18... Securities. To the Manager, Branch. Dear Sir, & t INSPECTION.-SECURITIES. Certain Cases. A. From the insufficient and imperfect nature of your Requisites in old form of guarantee, please have it substituted by our own form, not only in this case, but in every other instance where advisable. B. If the advance is not repaid very soon, we should have from him a regular Letter of Deposit in connection with the deeds lodged. C. If the overdraft now expired is to be renewed, we must have from him both a Letter of Deposit and a Fire Policy. D. We should have a regular assignment from him of his Life Policy, and notice should be given to the Insurance Company. E. If the overdraft is not likely to be paid off shortly, he should indorse the Bond deposited as security. F. The Fire Policy lodged is only for £1500, and it does not appear to be applicable to some of the securities, such as the “A— Arms” and “B—— Arms" premises. From the amount and nature of the advance, fire policies 1 4 5 Inspection Letter. Securities. Requisites in Certain Cases. 140 INSPECTION. upon these and all the insurable properties should be obtained. G. We presume you satisfy yourself that the insur- ance premiums in this case are duly paid, and that our mortgage is adequately covered. It would be better to have a Fire Policy, and it should be expressed in our favour as mortgagees. H. The Insurance Companies, "" ΟΙ }} and in which he insures, are by no means of first- rate standing, and a change to more unexceptionable offices should be made without delay. I. The A Company's Shares.-Notice of the deposit as security against advances should be at once given to the Company, and their acceptance of it received. Information as to whether there is any prior charge should also be received from them. J. His certificate of railway shares is assigned to us by Letter of Deposit only. From his present questionable position, a regular transfer should be obtained and duly registered. K. In this case, the Bond lodged must be indorsed by him. L. The Fire Policies in connection with his securities were in favour of former mortgagees, and the one in his own name is lapsed. New Fire Policies must be at once obtained in our favour. M. The Letter of Deposit in his case does not embrace all the securities deposited, an omission which must be at once rectified. N. The Letter of Deposit is informal, and should be replaced by our own form. O. Now for some time to debit, and has been frequently overdrawn since June last. The premium receipt should be obtained. P. The premium receipts should be produced, at latest, 2 or 3 days before the expiry of the days of grace, and this } INSPECTION. 141 is applicable to all cases in which Policies are held from Inspection clients under advance. Letter. Securities. Q. Until the purchase money is received in reduction of Requisites in his advance, we should be satisfied as to the insurance. R. The Deed of 1st July, 18, A. and B. with C. and D. has not the signature of Mr. D., who covenants for the production of Title Deeds. This omission should be supplied. S. There should be a discharge and reconveyance in connection with the mortgage to A. B., with the deeds. T. As his account continues overdrawn, a Transfer should now be obtained, and if not at once registered, notice should be given in connection with the certificate held. U. From whom held five Bank Shares, with letter depositing them as security for his advance. As the Bank, however, has a lien upon all their shares, it was quite un- necessary for any letter to have been taken. In the case of his Building Society Certificate, due 'notice of the lodgment should be given to the Society. V. Insurance of the building in course of erection should be kept in view. W. His mortgagor covenants to insure for £1200, and a Policy for that amount should accompany the deeds. X. He agrees to insure for £750, but there is no Fire Policy. One should be obtained for this amount. Y. The Promissory Note for £330 is not indorsed, and the memorandum of charge, though drawn up by a lawyer, is irregularly and insufficiently framed. As the advance, however, has been considerably reduced, we shall be satisfied if the note only is put in order. Z. His Mortgage to the Bank.-There should be an Assignment License in our favour with this deed. And of the two Second Charges, we presume you are quite satisfied as to the sufficiency of the insurances in connection with these. A. B.—C———— Property.-This property, conveyed to Certain Cases. # 4 ! Inspection Letter. Securities. Requisites in certain cases. 142 INSPECTION. Mrs. E. B., the widow of D. B., in 1867. No evidences of title since. This should be put in order at once. B. C. and E. C., joint owners of D— House. As you have been informed that one of these ladies is now married, the Letter of Deposit accompanying the deeds of D- House should be signed by her husband, and his sanction should be obtained to the drawing of cheques, if no fresh arrange- ment is to be made in connection with the joint account. C. D.—With the conveyance in his favour, an abstract of the title of the vendor is indispensable in this case. D. E. His age is not admitted on his Life Policy. This must be supplied, as well as an assignment made, and notice given. E. F.-His property was mortgaged to the extent of £2000 to A. B., who was repaid per his receipt only, indorsed on the mortgage. A re-conveyance by him, how- ever, will, under the circumstances of this case, be necessary. F. G.-Deeds of Houses for £1350.-The property is conveyed to E. G., and the deeds are deposited in security of a joint and several promissory note of F. G. and E. G., but there is no writing from E. G. to that effect. Letter of Deposit should be obtained from him. G. H.-Bill of Sale of Shares in Sailing Vessel.-A mortgage will have to be effected, and full information as to insurance obtained. I. H.-Mortgage, assigning Life Policy for £3000, and bonuses, and interest in his real and personal estate under the will of F. H., his father, on death or second marriage of the widow, his mother, but subject to a prior Mortgage for £500. This security is in a very imperfect state, there being no notice to the Life Assurance Coy., and no notice to the Executors of F. H. There is notice to the prior Mortgagee, but no acceptance of notice from him. Full information as to the mother, children remaining, and value of I. H.'s share under the will of his father, should, more- over, be obtained. } 1 INSPECTION. 143 I. J.-There should be an abstract of title and copy will Inspection of H. J., through whom the property is derived. J. K. The prior deeds, shewing title of A. B., who conveys to Mr. K., must accompany this security. K. L.-Conveyance of Land in 1871.-The declaration as to heirship has been omitted to be signed. There are, however, the requisite marriage and baptismal certificates, but no succession duty receipts, and no Letter of Deposit. These should be procured. L. M.-There should, with his deeds, be a copy or abstract of the will of A. B., through whom his children and widow convey; and two discharged mortgages for £300 each; and evidence of C. D., the joint mortgagee's, death should accompany the security. M. N.-Conveyance of House, 15th July, 1869.—Contains no recital or covenant for production of previous deeds. We must, in the meantime, have an abstract of title of A. B., who conveys to Mr. N. N. O.-A copy of the will under which R. S. makes his various conveyances will require to be lodged. O. P. Building Society. We observe that the amounts of the various mortgages deposited are to be repaid within 14½ years by monthly instalments. The decrease in the value of the securities should consequently be supplied by fresh deposits. P. Q.-His deeds should be accompanied by a copy of O. Q.'s Will and succession duty receipt. Q. R. We shall require the usual evidence of death of A. B., to whom the property was conveyed jointly with C. and D. R. S.-A receipt for the deeds of the T-property, re-delivered on 3rd instant, should be at once obtained, as also receipts for the premiums due by A. B., C. D., and E. F. S. T.-Deeds for safe custody given up on receipt of A. B., Mr. S. T.'s partner. The deeds, however, should Letter. Securities. Requisites in certain cases. 1 { Inspection Letter. Securities. Requisites in certain cases. Insufficient terms of Mortgage. 144 INSPECTION. only have been given up on the written request of Mr. T., the depositor. T. U.-Packet given up on receipt of C. and D., his solicitors; but this should only have been done on the written authority of Mr. T. U. U. V.—A receipt should have been obtained from him. In all cases please make a point of procuring receipts for redelivered securities. If returned by letter, a written acknowledgment should be always requested and obtained. And be so good as keep in view that when Deeds or Securities held for advances are finally given up by you, advice should be at once sent to us of the circumstance. V. W.-The impressed stamps should not have been detached from the spoiled guarantees, as recovery of the duty will not in such a case be obtainable from the authorities. The amount in this instance may be passed under "deficiency in stamps" at the end of the half year. When securities are required to be borrowed from us, please guard against the irregularity and insufficiency of acknowledgments or receipts, such as those for W. X. and Y. Z.'s deeds. The acknowledgment should, in every instance, express the purpose for which the securities are wanted, and contain an undertaking that they shall be returned to us on demand; or, in the case of realisation that the proceeds shall be duly paid to us. The favour of a reply to the following will oblige :- 1. Mortgage by A. B.-We should have a written accept- ance or acknowledgment of the service of notice from the executors under the will of the late C. B. Have you seen the Probate ? A copy of the Will should have been forwarded with the security. We have also to point out that the terms of the Mortgage deed are faulty in several respects, as in the limitation of indebtedness by the mortgagor, either solely, or with any one whom he may assume as a partner in his particular trade. The clause should have been "either alone or jointly 1 INSPECTION. 145 Letter. with any person or persons whomsoever, and in whatever Inspection name or firm I now owe, and shall at any time or times Securities. hereafter owe," &c. The indebtedness, likewise, should Insufficient include, with the principal sum, "interest, commission, terms of Mortgage. banking charges, law and other costs, charges, and expenses;" and the rate of interest should not have been limited to five per cent. per annum, but to “interest and banking charges, according to the usual course of the said Bank's business." The provision, also, with reference to the exercise of the power of sale, should have named one month, instead of " the space of three calendar months next after the payment thereof shall have been demanded as aforesaid ;" and the concluding clause as to the acknow- ledgment by "two directors that the moneys hereby secured have been fully satisfied," &c., is quite unnecessary. Please say how long the advance is likely to continue, in order that we may consider whether an amended Deed should not be obtained; and have the goodness in future to send us in all cases the drafts of any deeds that may have to be prepared, in order that we may revise them before engrossment. Title. 2. B. C.-What has become of the deeds previous to Incomplete the conveyance of June, 1867? The requisite Letters of Administration, Certificates of Baptism, Marriage, and Burial, and Declarations of Identity, will require to be obtained, unless the advance is to be of a very temporary character indeed. 3. J. K.-Did no Declarations, Certificates, or Succession Duty receipts accompany the Deeds? And there is no Discharge and Reconveyance from A. B. This last, with Letters of Administration in favour of C. D., and Succession Receipt, as well as Fire Policy, must be handed to us. 4. K. L.-Is there no Abstract of Title of E. F., who devises to G. H., from whom K. L. purchases the property? One must be obtained before the advance is sanctioned. 5. K. M.-The properties, with alterations and additional J 1 I ! t + ? 1 1 Inspection Letter. Securities. Incomplete Title. 146 INSPECTION. buildings, stated by him to be now worth £3000, but he insures for £2200 only. Before making the advance in this case, all the links of the title must be complete, and it will be necessary that the probate, or an office copy of the will of F. G., be furnished; also a statutory declaration by a disinterested person intimately acquainted with the family, as to the marriage, number of children, and their deaths, of G. H., and this should be accompanied by the requisite authenticated certificates of marriage, baptism, and burial, and there should be receipts showing the payment of the succession duties which became payable on the deaths of H. I. and J. K. 6. L. M.—Please explain as to lease of 1st July, 1869, A. B. to C. D., and inform us whether there was any relative appointment and release, and if C. D. has any interest in the property. Why is there no discharge and reconveyance with the mortgage of 1877? 7. M. N. Did no other documents accompany the lease, and how did the Lessors derive their title to the property? There is no covenant for production of deeds, and there is no Fire Policy. 8. R. T.-The property we find consists of various chief rents, amounting in all to arising out of land and buildings subject to a £165 12 chief rent of £82 16 Net……………… £82 16 purchased by R. T. for £1540. title to the property? How did S. T. derive his 9. S. T.-The deed of July, 1880, purports to be signed by A. B., but the execution of this deed by him is not attested. This must be rectified. Are the three persons, for whose lives and twenty-one years the original lease was granted, still living? If alive, their addresses should be given. If any be dead, the requisite certificate of burial should be produced. The receipt for the payment of the ground rent, 2 f INSPECTION. 147 due in June last, should accompany the deeds. Is Mrs. D., Inspection the wife of the testator, and the executrix of his Will, still Letter. Securities living? If not, the production of the certificate of her burial Incomplete will be required. Is there any evidence as to the nature of Title. the covenants, &c., contained in the original lease? We presume there is no charge or incumbrance affecting the property not disclosed in the Abstract. 10. T. U.-There should be a Chancery order for A. B. to convey to T. U., and we shall feel obliged by information. as to the assignment of November, 1860, by C. D. to E. D., named in Deed of March, 1873, in favour of T. U., and through which the property is derived. There is no covenant for its production. II. U. V.-We must have evidence of the death of F. G., to whom the property was conveyed, jointly with H. and I.; and a full explanation must be obtained from the Company as to the attestation of their Deed of May, 1879, by one auditor only, while their Articles of Association provide that two auditors shall attest. There is a stipulation to insure for £3000. Why is the Policy not lodged? 12. I. J.-The advance is in excess of the amount given Imperfect by him for his land. As we presume there are insurable Lodgment. buildings on the land, an adequate Fire Policy must be lodged. Please favour us with full particulars of the present position and value of the property. 13. O. P.-The Lessee having died intestate, the Letter of Deposit should be signed by the remaining members of the family, as well as by the widow. The Lease, we suppose, is intended to collaterally secure the Guarantee. Does the widow's share of the property fall far short of the amount of the latter. 14. P. Q.-We find that by the will of the father seventeen different properties are left to the three sons, N., O., and P. Q., five of which to the last, these being- 1. House, occupied by the testator, “situate, standing and being in the town of A." { A A - 4 } Inspection Letter. Securities. Imperfect Lodgment. 148 INSPECTION, 2. Shop, and adjoining house and buildings, all occupied by P. 3. House and garden in “ 4. Three houses and gardens in (( 5. And a piece of land bounded by "( 1* )) }) With reference to the first two properties are these on the land conveyed by the Deed of September, 1820, and which land is described thus (C Have the seven legacies of £500 each been satisfied, and has the bond for £1500 against him been extinguished or cancelled? The legacies formed a charge upon the above properties; there should be succession duty receipts, with the security, and an abstract of the Vendor's title should have accompanied the Deed of June, 1871. 15. Q. R.-Undertaking between A. B. and Q. R. There should be notice to A. B. failing deposit of Conveyance. of the half-share in favour of Q. R. Are there any incumbrances on this half-share? 16. V. W.-With his deeds, the opinion of counsel, which was obtained, should be lodged, and there should also be deposited the Probate of A. W.'s will. Why are we not in possession of the Fire Policy over the property? The sum of £1500, we observe, was given seven years ago for the House Property in C., which is only insured for £1100. What is the condition and present value of this property? 17. W. X.-Was a copy of the will of A. B. seen; and do you know that C. D. is the sole surviving trustee, apart from what is stated in the deed? Does the Fire Policy for £350 represent the actual value of the buildings? Why were the various documents not scheduled? 18. Y. Z.-Has the nature of his security been pointed out to him, and is he in a position to replace it by any other? The advance would be granted to him on a satisfactory guarantee. And of the deposit by his relative, C. B., of conveyance in favour of A. B., there is amongst the deeds a mortgage not discharged. There 4 | { * $ INSPECTION. 149 Letter. appears, also, to be no discharge and reconveyance by Inspection E. F. with the security; and have you satisfied yourself Securities. as to C. B.'s title by perusal of the Will of A. B., said to Imperfect be in the hands of the solicitors? Are there no succession Lodgment. duty receipts to show? 19. ……………………. King's School. The written approval of the Governors must be obtained to the Secretary hypothecating the sums in question in security of overdraft before the advance is made. 20. G. H. I.-The property is demised to Mrs. Jane Smithe, and the Letter of Deposit is by Jane Smythe. If same person, she should have added to her signature in the Letter of Deposit "or Jane Smithe, as named, and signed by me in said Lease." We return the Letter of Deposit, in order that she may make this addition. 21. The Equitable Charge of B. is quite informal. Besides its other defects, it is not expressed to be a continuing security. How did it come to be taken in its present shape? without 22. W. X.—Who, it is represented, "won't insure" the Lodgment various properties, in all £1750. Please state the course Insurance. and the maximum amount of his overdraft, and the arrangement that was made with him, and inform us whether you consider him perfectly safe without security, and what is believed to be the amount of his other means, and if any of his property is encumbered. Amount. 23. X—— Club.—Guarantee, £300. This guarantee, we Guarantee of X- find, is signed by twelve, instead of fifteen, guarantors for Insufficient £20 each. As the limit of £300 is frequently availed of, please have the guarantee completed by all the signatures at your earliest convenience. 24. F. G.-Of the 2954 yards of land acquired by him Part disposal of Property. in 1867, we notice that in 1872 he conveyed 1756 yards, along with six houses erected thereon, to S. T. How many buildings are there on the remaining land, of what description are they, and what is the value of the security? 1 } 3 1 1 } 150 Inspection Letter. Securities. Part disposal of Property. Compliance with Covenants. Variation. INSPECTION. 25. G. H.-Deeds of building land. 15,637 yards pur- chased in 1873, and 6372 yards of which sold in 1875. Has any more of the land been disposed of, and what is the value of the buildings erected and available as security? 26. H. I.-Feoffment of land. The minerals under this property appear to have been disposed of. Has this been. considered in the estimate of value given ? 27. D. D.—Are he and you quite satisfied as to the identity of the property sold with that in the Lease, and have all the covenants in the latter been performed? The receipt for last payment of rent should be produced. Have you ascertained whether there are any charges, liens, or encumbrances affecting the property not disclosed by the Abstract? 28. D. E. From the Deeds we find he acquired the land in August, 1878, for £27 annual rental, and in September, 1880, he disposes of it for £43 annual rental to a draper, in apparently the same condition as he got it, notwithstand- ing his covenant to build within a year. What is the present state of the property? Are there any buildings erected, or being erected, upon the land, and are the various conditions and stipulations being complied with, or is there the requisite authority for any departure from them? 29. N. O.-Please inform us without delay whether the alterations named in clause V. of the Agreement for Lease have been effected by Mr. O., and if the premises are kept duly insured. 30. R. S.-The Vale Road property. We observe that the trade of a Butcher is carried on in one building, and that of a Beerhouse-keeper in another. Was the consent of the Reversioner obtained? There appears to be no written permission with the deeds. 31. H. J.-Deeds of house, &c., £1200 in January, 1876, valued in December, 1875, at £1700. The only Fire Policy is one for £750, and this is in name of the previous mortgagees. Full explanations required. { t INSPECTION. 151 Letter. 32. The packet of A. contained only 6 instead of "12 Inspection Certificates Great Indian Peninsular, &c., Railway," but Securities. the discrepancy may have arisen from an exchange of call Variation. Receipts, erroneously described as Certificates. Please let the matter have further attention, and duly advise us. notice. 33. T. U.—Bond for £1500. As twelve months' notice, Bond at long notwithstanding the specified times of payment, is required to be given before the principal sum or any portion of it can be repaid, this, and some of its other conditions, render the Bond not a very suitable banking security; but if you can assure us of the thorough reliability of the account-holder, and that he will be in a position to repay or materially reduce the advance before the end of this year, we shall sanction the transaction and accept the security. for Lives. 34. X. Y.-The security is in order, presuming all the Property facts to be as stated in the deed of January, 1870, and that A., who grants license to assign, is the agent for that purpose of B. The property, however, is held for three lives and the survivor of them, the survivors in March, 1825, aged respectively 3 and 9. Full information should be given respecting them, and, in the absence of a Fire Policy you will of course satisfy yourself as to the due payment of the premium. The premises were acquired by X. Y. for £250 in 1880, and we observe that in 1870 they were conveyed for £600. 35. C. D.-We observe the property is conveyed to him Joint Owners. and his brother A. D. Unless C. D.'s share only of the property is deposited as security, the Letter of Deposit should also be signed by A. D. Full particulars of the present condition of the property and its value should be given. 36. E. F.-Conveyance of property to R. W. and E. F. as tenants in common for £3500. How did R. W. relinquish his moiety for £950 only, and why has no Fire Policy been lodged? 37. P. Q. R.—Was any settlement made on her marriage Married with R? Woman. • > 1 1 Inspection Letter. Securities. Married Woman. Life Policies. Collateral. 152 INSPECTION. 38. D. E. F.—Is Mary Ann Smith, the depositor of the security, the same person as Mary Ann Jones, to whom the property was conveyed? If so, was there any settlement on her second marriage, and is the husband alive? 39. J. K. L.—Who deposits lease by A. B. in favour of C. K. L., her deceased husband. Did the latter make a will or die intestate? If he made a will, the probate or an office copy must be produced. Are there children of the marriage? All the facts must be ascertained and duly communicated to us. 40. Sarah T. Smith.-We observe Mrs. Smith has merely a life interest in the property. If the reversioner is willing to join in the Deposit, the security may be taken. 41. A. B. C.—How did Jane Smith acquire her right to the properties? Was she the same person as Jane Jones, to whom they were conveyed in 1840, and are the properties identical with those conveyed by the older deeds? No measurements appear to be given in the latter. Have the succession duties, which became payable on the respective deaths of A. and B., been paid ? 42. M. N. O.—A. B. to M. N. O.'s wife. How did the property become vested in A. B., and what was given for that portion of it, a piece of land with three messuages erected thereon, appointed by Mrs. O. to the use of C. B., by deed of August, 1875; and what is the present value of this security? Why was the conveyance of January, 1862, by J. to K., not deposited, and what has become of the Deed of July, 1854, by H. to K? 43. V. W.-Life Policies. His age will require to be admitted, and we must be satisfied that there is no prior charge upon these policies. 44. Y. Z.-The Coal and Iron Company's Shares from him by ordinary Letter of Deposit. These, we presume have been lodged as a collateral security; we find he holds several of the Bank's shares in excess of the present advance. f 1 45. The ... INSPECTION. 153 Provident Benefit Building Society. Inspection Letter. We observe that by their Rules no deed in the safe custody Securities. of their Bankers is to be given up by the latter "without Redelivery. the written authority of one Trustee and two Directors." Please explain why the deeds were given up without this authority. 46. With the second charge by C. there is no notice to Notice. the Executors. Please see that notice be addressed to each executor personally, and acceptance of service duly received. 47. The second charge of D. is not sufficiently com- prehensive, and there is no notice to the prior mortgagees. Please explain. 48. With reference to advances on assignments of reversionary or expectant interests, such as those of D., E. and F., for £300, £150, and £225 respectively, notice should be given to each trustee personally, unless the trustees have in any of the cases given express authority to their Solicitor to receive the notices. It has been recently held that notice of an incumbrance to a Solicitor of trustees is ineffectual unless he has been empowered by them to receive notice. 49. And with regard to additional Fire Policies on all Insurance. insurable property, in security of advances, care should be taken to guard against the effect of provisions as to average payment, and for this purpose insurance in the same office as that in which the mortgagor or depositor is already insured should be effected. Various accounts were stated to be "to credit," in connection with which securities were held without Fire Policies. Were the latter obtained upon the accounts being again overdrawn? Where, however, insurable pro- perty is lodged in security, a Fire Policy should always be obtained, and the fire premium receipts produced, so long as the Deeds are held by us, unless the account is to continue permanently to the credit, and the security remains for safe custody only. } { 1 } t Inspection Letter. Securities. Essentials in connection with Mortgages and Securities. Conveyancing Act of 1881. 154 INSPECTION. 50. What progress has been made with the mortgages to- be effected by G. H. and J.? In connection with these, we presume, the necessary provisions as to interest and charges, &c., according to the usual course of the Bank's business, and as to one month's notice before its power of sale is exercised, and as to fire insurance, have been kept in view. Please note it is very desirable that in the offer, or on the deposit of securities, your clients should be accustomed to render the necessary compliance with the rules of the Bank, which require Letters of Deposit and Fire Policies with as complete a course of title as can be given. In the few cases in which Letters of Deposit were taken, these are inadequate, and should be replaced by our own form. And we have particularly to request that Securities for advances should always be forwarded to us without delay, and in as complete and perfect a state as possible. Full explanations must be given if any are incomplete or im- perfect, and no advance must be granted without previous sanction. Yours faithfully, A. B., Inspector-General. C. D., Manager-General. It may be proper to add, in connection with the subject of securities, that the new Conveyancing Act, 44 and 45 Vict. c. 41., passed 22nd August, and taking effect from 31st December, 1881, if generally adopted-which appears to be at present very questionable-should effect no slight reform in the law and practice of conveyancing, and conduce considerably to the shortening of the ordinary class of deeds. And these desirable ends are intended to be further promoted by a supplemental Act now under the consideration of Parliament. In the case of mortgages to a Bank, however, very great care should be taken in departing from a recognized good and effectual form; and as the provisions of the new Act, INSPECTION. 155 Act of 1881. particularly with reference to mortgages, have given rise to Conveyancing much discussion, and many of them been generally condemned, it would be very unsafe to adopt them, and we think that for the present at any rate, and until the opera- tion of the Act shall have been sufficiently proved, the old form of mortgage should not only be adhered to, but should be terminated by a clause such as follows:-"And it is hereby declared and agreed that the Conveyancing and Law of Property Act, 1881, shall not apply to this mort- gage. In witness," &c. SUB-BRANCHES. To the Sub-Branches opened only once or twice a week Sub-Branches. an occasional visit during the year will be paid; but the details in connection with these are necessarily of a limited character, the general inspection of Sub-Branch business being conducted at the parent Branch. The Books which should be used at the Sub-Branch are the Tellers' Cash Book, the Discount and Exchange Book, the Incidental Expenses Book, the Current and Deposit Balance Record, being a list of the balances of each account made up to the morning of the day on which the Sub- Branch is opened, the Bill and Cheque Register, the Drafts Issued Book, the Signature Book, the Private Information Book, the Register of Letters Received, and the Letters Posted Book. The number of accounts will be taken from the Current and Deposit Balance Record, and the balances of the completed Pass Books, ready for delivery to the Account- holders, should correspond with the balances shown by the Record. ARRANGEMENT OF BRANCH DUTIES. of Branch With reference to the arrangement of the official work at Arrangement the Branches, this will necessarily vary with the size of the Duties. Branch and the special circumstances in connection with its business, and the number and efficiency of the staff. In .the smaller Branches, where there may be only one or two Smaller Branches. { } f of Branch Duties. Smaller Branches. 156 INSPECTION. Arrangement juniors with the Manager, the execution of all the more important duties will of course devolve upon the latter, and so continue until, with an increase in the business, they can be shared by an accountant or experienced officer, the appor- tionment of the work being easily arrived at between them. In either case, however, the sole charge of, and responsibility in connection with, the cash will remain with the Manager, this necessitating his continuous presence in the Bank. When aided by an accountant, and circumstances require a short and occasional absence, then a second cash drawer should be opened for the accountant to deal with when necessary, as it is highly objectionable for more than one to be concerned with the same cash drawer. Larger Branches. Accountant. In the more important Branches, the Manager will have greater liberty, and he should be released as much as possible from intromissions with the cash; and, selecting for the sake of example a Branch to which a Sub-Branch is attached, an arrangement such as the following might be effected:- ACCOUNTANT to have charge of- The Current and Deposit Accounts, balancing the former monthly and the latter quarterly, and forwarding to Head Office, if duplicate ledgers be kept there, the necessary Decimal Returns and Balance Returns for verification. Preparing for Head Office the Weekly Branch Return, with Return of Daily Totals for same week. Checking the discounts and decimals on the credit vouchers at the time of posting the Current and Deposit Ledgers. The Progressive Discount Accounts to be written up either daily or weekly, and balanced weekly, making the necessary view of Discount Obligations for Head Office. The Accounts Opened and Closed Book. The General Ledger. The Bill Diary. The Bills Dishonoured Book. The Money Lent and Lodged Book. 1 INSPECTION. 157 The Charges General Book to be balanced monthly with Arrangement the General Ledger. The Bank Rate Book. And to take charge of the Sub-Branch, opened twice a week, on which days his duties at the parent Branch to be discharged by the First Clerk. of Branch Duties. Accountant. TELLER.-To have charge of the cash, getting assistance Teller. when necessary from the First Clerk, who on such occasions will have a separate cash drawer. To calculate all discounts and decimals on the credit vouchers at the time of each transaction, these being checked by the Accountant. To fill up during the progress of the cash balance at the end of each day the Cash Balance Book, and to see that the total agrees with the balance of the Teller's Cash Book as well as with that of the State Book, and that of the Daily Statement for Head Office. To keep the Incidental Expenses Account, making out the usual Monthly Returns in connection with it for Head Office. On the Sub-Branch days to write up the Daily Statement for Head Office. Each morning, before the opening of the Bank to the public, to check or call over with the Manager the previous day's transactions entered in the State Book and Ledgers. And to see that Stamp, and Postages Accounts are cor- rectly kept by the First and Second Clerks in charge of these Accounts, both of which, particularly Postages. Account, should be balanced at short intervals, and the balances checked and initialed by him. The keys of the Inner Cash Safes to be kept by him, the keys of the Outer Safe, within which the Cash Safes are kept, being in the custody of the Manager. FIRST CLERK.-To write up the State Book, except on First Clerk. the Sub-Branch days, when this book will be attended to by 1 158 INSPECTION. Arrangement the Second Clerk, while the first is undertaking the duties. of the Accountant. of Branch Duties. First Clerk. Second Clerk. First Junior. To take charge of all the Pass Books, having the filling up of these completed weekly at least. To keep Stamp Account, which should be balanced at least monthly. To assist in the periodical balancing of the Accounts. To see that the necessary acknowledgments of letters are received. And to have the custody of the Vouchers. SECOND CLERK.-To write out the Daily Statement for Head Office, excepting on the Sub-Branch [Days, when he attends to the State Book, the Statement being written out by the Teller. To present bills. To keep Postages Account, which should be balanced fortnightly. To keep the Drafts Issued Book. To keep the Opinion Book, and to see that the necessary opinions are, after registration, forwarded to Head Office. To assist the First Junior in passing the entries from the letters, &c., and arranging the morning and afternoon letters, examining all letters from the Branch before they are sealed, and seeing that all enclosures are in order. To assist, with the First Clerk and Accountant, in the periodical balancing of the accounts. To see that the Second Junior keeps the Letter Books duly indexed, and that his other duties are properly attended to. To have charge of the stationery, and to see that proper supplies of it are always kept on hand. FIRST JUNIOR.-To call for the letters addressed to the Bank each morning and afternoon, and, along with the Second Junior, to leave the day's letters from the Bank each evening at the Post Office. With the assistance of the Second Clerk, to pass the INSPECTION. 159 of Branch morning entries, and write out the acknowledgments and Arrangement remittance letters, and the evening remittance sheets for Duties. London. To attend to the exchanges in connection with the local banks. To keep the Bill, Cheque, and Note Registers, and see, with the Second Clerk, that all the Books are lodged in the outer safe at the close of each day. SECOND JUNIOR.-To see each morning that the Teller's Second Junior. Desk is supplied with the necessary stationery, pens, and ink, and that the books for the Teller, Accountant, and First Clerk are duly put in their respective places. To attend to the Date Boxes, keep all the Brass Stamps in order, and Stamp the Vouchers. To copy all letters and other documents handed to him for that purpose. To keep the Letter Books, Letters Received Book, and docquet and put past the letters. To keep the Letters Posted Book, which should be daily checked by the Second Clerk, who has charge of Postages Account. To go messages, being assisted in this, when requisite, by the First Junior, and to accompany the latter in posting the letters at the close of the day. With an arrangement such as the above, the Manager, Manager. besides having time to attend to the more important cor- respondence, all the letters having in the first instance been. opened by him, and to the high duties, more exclusively his own, may, with occasional assistance, be able to overtake the keeping of the Minute and Procedure Book, the Private Information Book, the Record of Limits, the Premium Diary, and the Register of Securities, as well as to take a frequent opportunity of supervising the official details, and seeing that all the work of the Branch is properly executed. $ } } 1 Arrangement at Head Bank. Various Offices. ministrative Offices. 160 INSPECTION. ARRANGEMENT AT THE HEAD OR CENTRAL BANK. With numbers ranging from twenty to two hundred in the Head Office of a Bank, the arrangement of the official work will necessarily vary, apart from any special circum- stances that may exist in connection with the nature of the business and trade of the locality. But though modified from such causes, yet in Banks of any importance the details are in a measure based upon the same groundwork; and in the larger institutions, with numerous branches, there are well-recognized offices for the administration and execution of the daily business.. These are the offices of the Manager-General, the Inspector-General, the Accountant- General, the Secretary, followed by those of the Tellers, and there are the Bill, Branch and Agency, and the Stationery and Voucher Offices. The great administrative offices are Leading Ad- the first four, in which all the leading matters that present themselves are considered and determined upon, the special correspondence from Clients and the Branches, with all questions affecting advances, and arrangements in con- nection with Shareholders and Directors' Meetings, &c., being dealt with more particularly by the first-named officer; the Returns from the Branches relating to the position of the Accounts, the special points in connection with the inspection visits, the internal organization and work of the Head Office and Branches, the rating of the Accounts, and the condition and sufficiency of the Secu- rities, claiming the special attention of the Inspector- General; while to the Accountant-General belongs the duty of checking and balancing the Correspondents' Accounts, preparing the balance sheets of the Bank and relative reports, and superintending the work in connection with the Current and Deposit Accounts, Deposit Receipts, Debtor Daily Balances, General and Head Office State Books, Pass Books, Money Lent and Lodged Book, Charges General Book, Drafts and Letters of Credit Issued. Books, and, indeed, to have the special superintendence of Manager- General. Inspector- General. Accountant- General. { INSPECTION. 161 all the Bookkeeping and Accounts, including the various Arrangement Share Books. By the SECRETARY the ordinary correspondence of the Bank is undertaken, and the work in connection with the transfer of shares, also the passing of the entries from the ordinary morning letters and from the Diary, attending to advices of the drafts on London and the Provinces, to the advice of acceptances and payments in London State- ment, making out credit voucher for the amount of the last, and seeing that it agrees with the amount in the State Book, instituting status inquiries, and keeping the General Opinion Book and Statistics Book. at Head Bank. Secretary. To the TELLERS belong the charge and responsibility of Tellers. the cash, and in those cases where the time of all is not fully occupied by their special duties, assistance may with pro- priety be rendered to the Accountant-General or Secretary, such as in the preparation of Statistics, the making out Statements of Accounts to be furnished Bankers, and other Statements of Accounts when required, the passing the Clearing House cheques and those cheques on the Head Office accounts received from the Branches; a duty involv- ing, amongst other things, responsibility as to the drawers' signatures, and sufficiency of funds. In connection with the cheques received through the Clearing House, all those which are irregular or dishonoured will be returned, through the Secretary, direct to the Country bank, or branch of a London bank with whose name they may be crossed, those bearing the crossing of a London Head Office Bank being returned, at the close of the day, in the usual letter to the London Agents, for their attention. On certain days of the week the burden will fall upon the Chief Teller to get in the requisite cash supplies from those correspondents with whom there are special arrange- ments for the purpose, and upon him also devolves the duty of attending to the applications for cash from the various Branches, many of such applications arriving at K } at Head Bank. Tellers. 162 INSPECTION. Arrangement very unexpected and sometimes very inopportune moments, notwithstanding all the precautionary measures which experience may have prompted him to adopt. The Tellers should not of course be connected with the ledgers, nor will the cash be intromitted with by any but themselves. Bill Office. BILL OFFICE. In this office, one of very great responsibility, will be kept with the Bills of Exchange all the Bill and Cheque Registers, the Progressive Discount Ledger, Bills Remitted Book, Bills Paid Book, Past Due Bill Book, Bill Memorandum, Bill Diary and Bill Balance Books. When the Branch bills, as well as the bills received at Head Office, are dealt with, both should every morning be handed by the Chief Bill Officer to the Bill Registrar for entry in the Register. The latter bills are received at the close of the previous day, and entered in the Head Office Diary, after being specially indorsed, the number being checked with that furnished by the Registrar. Before submitting the bills, after entry, to the Bill Committee, the number of the bills should be ascertained and inserted in the Bill Memorandum Book kept for that purpose, the number being verified with that shown by the Bill Register. On return of the bills from the Committee, all the necessary inquiries should be prepared for the Inquiry Book-Vol. I., p. 427. The bills should then be compared with the entries in the Register, and should afterwards be carefully examined, keeping prominently in view the sufficiency of the stamp, the regularity of the acceptance and indorsements, the correspondence of the amounts in the body and margin of the bill, the correctness of the date of maturity, and the This accom- due and proper confirmation of alterations. plished, the bills should be entered in the General or Head Office Diary, and then arranged under the proper dates in the Bill Cases, the number of the bills being verified before being thus put away. ! } INSPECTION. 163 at Head Bank. Attention will of course be given to the bills being Arrangement remitted in due time to their various destinations, the necessary verification of the number being made after entry in the Bills Paid Book. All the cheques and other kindred instruments passing through the Cheque Register, will be carefully examined and distributed for remittance. By first post all Branch bills returned unpaid will be sent direct to the Branch from which they were remitted; and amongst other ordinary duties during and at the end of the day will be the preparation of the Analysis for the Accountant of Bills discounted, the transmitting particulars of discount to those clients who may require them, the writing out the Remittance to Correspondents' Statement, the Abstract of Country Cheques, and the London Remit- tance Sheets, making out Debit Voucher for the amount of the last two, and seeing that the total amount, with that of the Remittance to Correspondents' Statement, agrees with the total amount in the Cheque Register. And two or three times a week will be written out the Remittance Statement of Bills sent to London, the total amount of which should agree with that appearing in the Bills Remitted Book. At the end of each day will be made out, for the Chief State Book Clerk, Vouchers debiting Bills Current and crediting Bills Remitted, with the amount of the Head Office Bills received during the day. And each Saturday will be made out vouchers crediting Bills Current and debiting Bills Remitted with bills which have matured during the week, including those due on the succeeding Sunday. For the Accountant's purposes, once a week, will be extracted the total amounts of the Bill Register for the preceding week. To the Advices of Acceptances, generally preserved in the Bill Case, and to the Bills received for Collection for Bill Office. > 1 7 164 INSPECTION. Arrangement which no entries may have been passed, due attention will of course be given. at Head Bank. Branch and Agency Office. London Agency. At intervals of about once a month the Bills, as well as the General Bill Diary, should be balanced, and every half-year recovery should be had of the amount of duty on all the drafts and other instruments that may have been spoiled or cancelled. BRANCH AND AGENCY OFFICE.-In this office the keep- ing of the Branch and Agency Accounts with the relative Books are undertaken, the Statements of Accounts received from the Branches duly verified, and the Statements of Accounts to be rendered to those of the Bank's Provincial Agents who do not transmit theirs, are made out and sent to them at weekly, fortnightly, or monthly intervals, as the case may be. In connection with the London Agency business the duties are of more than usual importance, and in the course of it many intricate and complicated questions often arise. Much method is required in the conduct of the office, and the following may perhaps be offered as useful for adoption in the ordinary routine:— LONDON LETTER.-Immediately on receipt of this, the entries from its Cash List, and for its enclosures, should be passed, advising clients of the sums received for their credit. Then enter the dishonoured bills in the Protest Book, and charge commission so as to secure three-eighths on the amounts of the bills. Thus, if the rate on the accounts with which these bills are to be debited is one quarter, one eighth extra will be charged; and if one eighth, one quarter extra on the amounts of the bills. On advice of proceeds of all instruments remitted to London for special negotiation, 3/- per cent., as commission, to be deducted from the amounts on crediting the client. Of the Cash List, due attention will be paid to advices affecting the Branches, and to those entries relating to } INSPECTION. 165 at Head Bank. dishonoured bills, which, by special arrangement, are for- Arrangement warded direct to the Branches, and by whom the requisite London entries will be passed. DIARY.—As soon as all the necessary entries from the London Letter have been passed, the Diary should be written up in the following order: DEBIT SIDE. Cash received in London.-Date of Cash List. Sundries, Local or Country Notes, and home due Coupons. The day after remittance to London. West End Sundries.-Two days from date of debit voucher. Country Cheques.-Three days from date of debit voucher. Unmatured Bills.-Under date they become due, giving full particulars. Foreign Coupons.-Allow about ten days. CREDIT SIDE. Paid Cheques. Enter two days before date of credit voucher. Each cheque to be entered separately. Unpaid Cheques.-Enter under date of credit voucher. Bank of England Notes sent by London Agents to Head Office or Branches.-Under date on which London Agents advised them. Returned Bills.-Enter under date of credit voucher. Clearing Cheques.—The day after date of credit voucher. Acceptances.— Under due date, observing this rule, although acceptance advised on date of maturity, under which circumstance it is generally previously advised by telegram. If not so previously advised, the entry should be under the day after maturity. Payments. The day after advice. After-Date Drafts.-Day on which they fall due. Demand Drafts.-Day after issue. All the Debits and Credits should then be counted and verified with the number entered in the Diary, and a note Agency. $ 166 INSPECTION. 2 1 t { at Head Bank. London Agency. Arrangement of the balance, Debit or Credit, for the day and two follow- ing days given to the Manager early each day, the amounts for the last two days being of course approximate ones only, but sufficiently answering the purpose as a guide to the state of the London Account. } Then should be written up :-The Current Account Book, which should agree with the State Book; Acceptances, Payments, Remittances, and Country Cheques to be taken from the respective Books, instead of the Vouchers. This, besides saving trouble in the posting, insures in a greater degree the accuracy of these Books, each of which has been written up from the Vouchers, after they have been dealt with by the Chief State Book Clerk. Then should be undertaken the marking-off of the remittances and Country Cheques, from Head Office and Branches, in Current Account Book, and their verification with the Letter from London Agents, acknowledging their receipt. The Cash Account may be forwarded by the London Agents daily, or every other day. This should be checked and balanced with the Diary every week. All outstanding items, either in the Diary or Cash Account, should be entered in the: Outstanding Items Book, and in the keeping of this book great care and vigilance should be exercised, particu- larly with regard to the outstanding debits, many of which, especially when connected with the Branches, entail much trouble and correspondence before being finally rectified. The Diary should be balanced monthly, and the Draft Book for composition duty should be regularly and closely kept up, to save time at the general half-yearly balances. Weekly, the Accountant should be furnished with a Return of unmatured bills, unpaid acceptances, cash and outstanding items. At the end of each half-year a statement should be forwarded to the London Agents, of all the items + } } riga . 1 INSPECTION. 167 at Head Bank. outstanding on the debit side of the Diary, for verification. Arrangement These items consist of entries in transitu, unmatured London bills, coupons, and sundry other instruments not yet Agency. cashed or paid. Voucher STATIONERY AND VOUCHER OFFICE.-To the officer in Stationery and charge of this office belongs the duty of ordering and Office. keeping all the supplies of Books and Stationery, including the Deposit Receipt, Cheque, Draft, and Letters of Credit Forms required for the use of Head Office and Branches. In the case of the ordinary and smaller class of stationery, this should be kept in such quantities as to be readily supplied on application; but as regards the Ledgers and other books, and also the Cheque and Draft Forms, a month's previous notice should be given to him before they are required. Being the maker-up and custodian of the vouchers, all applications and letters in connection with them will receive his attention, and, before putting past the Head Office Vouchers, he should verify their number daily with that of the State Book. A due record will, of course, be kept of all surrendered documents. To this officer, jointly with the Secretary, will also belong the custody of the Plate Boxes, deposited for safety in a Strong Room devoted specially to that purpose; while the Deeds for safe custody, along with those deposited against advances, are in another Strong Room under the special care of the Accountant and Secretary. The Stamp and Incidental Expenses Accounts are kept by this officer, who, in any spare intervals he may have, will also render assistance to the Accountant or Secretary. STATEMENTS OR RETURNS FROM THE BRANCHES. These should be:- I. DAILY.-The Daily Statement. 1 Branch Returns. The form of this, Daily. where duplicate ledgers are kept at Head Office, will be but a reproduction of the State Book, and accompanying it will be all the relative vouchers carefully arranged, the է 1 $ 2 * 1 1 1 Branch Returns. Daily. Weekly. Monthly. Quarterly. Half-yearly. 1 168 INSPECTION. statement being duly authenticated by the signature of the Manager, or, in his unavoidable absence, by that of the Accountant. Where duplicate Ledgers are not kept, then a detailed copy of the Head Office Entries, with relative Vouchers, will be alone necessary, the totals merely of all the other accounts being given, the vouchers relating to these being retained at the Branch. 2. WEEKLY.-On Mondays the various Weekly Returns, according to the forms given.-Post, Part III. 3. MONTHLY.-The View of Discount Obligations, and, on the last business day of each month, Analysis of Charges for the month, and, as soon as practicable after the end of each month, the Current Account Balance Returns, with, where duplicate Ledgers are kept, a Monthly Statement. of the decimals on each account. 4. QUARTERLY. - Immediately after the end of each quarter, Returns of the Deposit Account Balances, with, where duplicate Ledgers are kept, a Quarterly Statement of the decimals on each account, and Report from certain of the Branches upon the trade of the locality, 5. HALF-YEARLY.-Return of trial balance to be sent Head Office about a fortnight before the end of the half-year. Statement of Decimal Returns, where duplicate Ledgers are kept, to be sent for comparison, ten or twelve days before end of half-year, and on the second or third day before the end of the half-year, the Deposit and Current Account Balance Returns, with interest reckoned to the close of the half-year, to be forwarded. On the reception of these, the interest can be at once checked with that shown by the Head Office Ledgers, thus saving the labour of a second officer to each Ledger in arriving at the final result and in the application of the interest and completion of the account. Besides expediting the balance, this INSPECTION. 169 insures the work being done by each Branch itself, and Branch affords a better test also of its accuracy. On the last day of the half-year, and on the two days immediately preceding, the Daily Statement and relative Vouchers to be sent by special messenger as soon as possible after the close of business on each of these days. Also, on the last day of the half-year, to forward by post. Return of General Ledger Balances before application of Charges, and the Return of Daily Totals. With reference to the latter, when the half-year or year ends on a Monday, Tuesday, or Wednesday, the usual Return forwarded on the Monday may be deferred until the end of each of these days, the additional time being embraced in the Return, which will consequently show the daily totals for eight, nine, or ten days, as the case may be. Should the half- year or year end on a day beyond the Wednesday, then the daily totals for the week ending on the previous Saturday will be furnished as usual, and a fresh Return for the remaining days of the half-year forwarded as early as possible on the last of these days. As soon after the end of the half-year as possible should be sent : Return of Bills Current, with rebate of interest at %. Statement of outstanding items in Suspense, and Sundry Dividends Accounts. Return of Closing Entries on form supplied.-Post, Part III. Schedule of Money Lodged and Lent, with number of Accounts, on form supplied.-Post, Part III. Statement of Money Lent and Lodged Book Totals and Averages, on form supplied.-Post, Part III. Return of Bad and Doubtful Debts on form supplied.— Post, Part III. Full Weekly Return after closing entries, and Full View of Discount Obligations. On, or shortly before, the last day of the half-year, all Returns. Half-yearly. } 1 } F { i 3 Branch Returns. Half-yearly. Rating Accounts. 1 170 INSPECTION. · tradesmen's accounts should be paid and entries duly passed to Charges General Account. No expenditure, unless of trifling amount, should be incurred without the previous sanction of Head Office. After balancing Stamp Account on the last day of the half-year, any difference that may exist should be passed to Suspense Account, the same being reported to Head Office, And on the last day of the half-year, Charges Account should be debited with the total amount of postage stamps actually used during the half-year, Postages Account being credited with the same. The amount of stamps on hand should, of course, agree with the balance of Postages Account. For a week previous to, and a week after, the close of each half-year, all Country Cheques should be sent through the Clearing House. RATING OF THE ACCOUNTS. The Rating of the Accounts is a matter of some nicety; but, assuming the Bank of England average minimum rate to have been 3% for the half-year, the following might be adopted as a basis :- The credit rate on undisturbed deposits, 2%, and no commission, subject to a higher or lower rate of interest on the amounts having been deposited for a shorter time than the half-year. On disturbed deposits, if for the half-year the balances be small and operations frequent, 1% or less, and no commission. I In the case of Credit Current Accounts, from 1 to 2, according to features, and % commission. In the case of Overdrawn Current Accounts, 5% generally and 4 commission. If the Overdrawn Accounts be well secured and sufficiently operative, 4 or 4%%, and 4 commission. If the overdrafts are continuously up to the limits, and there be no security, or the security be insufficient, or } a INSPECTION. 171 避 ​where the operations are few, 5% and 6%, and 4 Rating commission; and If credit and debit during the half-year, the credit rates may be 2%, or less or more, and the debit rates 5%, or less or more, with commission % or 14, according to circumstances. The charges are, of course, on the daily balances only, or on such portion of the advance as is actually made. Sometimes an arrangement is made to conduct an operative credit account at 2% on the minimum monthly balance, without charging any commission. On such terms, should the general balance be small and the turn-over large, the arrangement would be in favour of the client; but the reverse if the general balance be large and the turn- over small, assuming that the interest and commission would otherwise have been 1½ and %. An arrangement is also sometimes made to conduct an operative Credit Account, without interest or commission, upon the balance being maintained at not less than an agreed-on amount. When the Bank of England minimum rate is excep- tionally very high, as from 7 to 10%, then as a rule that rate is not exceeded in charging, the maximum rate allowed being generally not more than 5%. The net profit is considered, in the case of most of the English Country Banks, to accrue from the commissions, the difference between the rate of interest allowed and charged defraying the expenses of the Bank. RATING BILLS. If Accounts. Bills. In connection with the discounting of Bills, the rates are Rating very varied, depending altogether upon the character of the instruments and the responsibility of the obligants. unexceptionable, and the currency be short, they may be discounted at close upon the Bank of England rate; though, with reference to the majority of ordinary trade bills, with between two and three months' currency, 1% over this 1 { { 1 7 ~ ད 3 1 172 INSPECTION. Rating Bills. rate, with a minimum of 4%, is not an unusual arrangement, the proceeds being credited the clients' account, and subject, on withdrawal, to the rate of commission exigible upon it. But however low the Bank of England rate may be, it is the practice of some of the country banks never to charge less upon trade bills than 5%, with the usual commission on withdrawal of the proceeds. On the Bank of England rate becoming very high, as from 7 to 10%, then the rule is not to exceed such rate, and in some cases to discount at a little under. In other cases, however, special circumstances may warrant an excess over even the exceptionally high Interest. Bills. Former law. rate. INTEREST AND COMMISSION. In our previous volume the interest and charges recover- able upon the Bill of Exchange were incidentally alluded to, and now it may be useful and interesting to consider, along with the subjects of interest and commission, how the instrument was affected by the usury laws, and to have some knowledge of the spirit which actuated the Courts in their decisions upon the construction of the statutes against usury, and their application to the instrument. Under the statute of 12 Anne, c. 16, s. 2, which contained provisions substantially the same as those of the principal enactments which preceded it up to the time of Henry the VIII., the statute 37, s.s. 8, 9, of which reign having repealed all prior enactments on usury, bills given for an usurious consideration, or upon an usurious contract, were held absolutely void, and continued so until the passing of the 58 George III., c. 93, which declared that they should not be void in the hands of an onerous indorsee, if he were ignorant of the usurious consideration at the time he took the instrument. Then, in consequence of an agreement made at the renewal of the Charter of the Bank of England, in 1833, it was enacted, by 3 and 4 William IV., c. 98, s. 7, that such intruments as were payable at not more than three months after date, or had not more than three 7 1 INSPECTION. 173 Bills. Former law. months to run, should be exempt from the operation of Interest. the usury laws altogether. By the I Victoria, ċ. 80, a extended to all temporary act, the exemption was instruments having a currency of twelve months, so that under this act, bills and notes, granted in the ordinary way of business, were virtually free from the laws of usury. By the 2nd and 3rd Vict., c. 37, renewed by various acts, the last of which being the 13 and 14 Vict., c. 56, expressed to extend until the 1st January, 1856, exemption from the usury laws, besides being given to bills and notes not having more than twelve months to run, was extended to all contracts for loans of money above £10; but provision was made that the Act should not extend to loans on the "security of any lands, tenements, or hereditaments, or any estate or interest therein." This Act, however, was held as not repealing the 3 and 4 William IV., c. 98, so that instruments of the currency expressed by the latter statute were, although collaterally secured by a charge upon land, considered lawful at any rate of interest-Clack v. Sainsbury, 21, L. J., 41, C. P.; Nixon v. Phillips, 21, L. J., Ex. 88. On the statute of William, however, it was decided, that if the loan were really made on the security of land, and the instrument thrown in merely as a blind, the transaction was usurious, and also that the exemption from the usury laws was confined strictly to the bill or note, and did not extend to an agreement. Berrington v. Collis, 5, Bing., N. C. 332; Follett v. Moore, 4, Ex. R., 410. The act was held to apply to a promissory note, payable on demand. Vallance v. Siddall, 7 L. J., Q. B. 30. Under the 2 and 3 Victoria, c. 37, it was held, in the case of advances by Bankers, that interest beyond five per cent could not be secured by a charge on land, but that the transaction itself was not illegal, and would be sustained for the lawful rate of interest. -Thomas v. Cooper, 2 Eq. R. 1192. To constitute usury, there must have been a loan, and an intention to ! 1 { * Interest. Former law. 174 INSPECTION. t take a greater rate of interest than the law allowed. Thus, on the former point, an acceptor might have discounted, or, more properly speaking, retired his own acceptance, minus interest, beyond the legal rate, for in such a case he did case he did not advance money, but merely anticipated payment of his debt.-Barclay v. Walmsley, 4 East 55. But by Lord Ellenborough such a practice was censured as "improper, though not usurious." We have said that there also must have been an intention to take illegal interest, so that where an excessive rate of interest was reserved by mistake from an error in computation, it was held not to be usury.-Nevison v. Whitley, Cro. Car., 501. But a mistake as to the law would, as in all other cases, have been no excuse, for, as observed by Seldon, any one might make this plea, and nobody could tell how to refute him. Even before the statute of Anne, the taking of interest in advance on a loan was held usurious; but to this rule an exception was allowed in the case of ordinary discounts of bills, the interest on the full amount of the bill being retained at the time of the advance, so that with a bill, say for £100, at twelve months' date, discounted at the restricted rate of five per cent, the sum really advanced was £95, the discount received being in effect interest beyond the legal rate on the loan, the excess, however, in such case being considered as fairly referable to the trouble and expense incurred by the party discounting. But where the currency of the bill discounted was more than usually long, the transaction was in general regarded as usurious.* * The method of discount, or securing the profit in advance of the loan, appears to have been first practised by the Athenians, and Plutarch's invective on the subject may be remembered:" It is said that hares bring forth and nourish their young at the same time that they conceive again, but the debts of these scoundrels and savages bring forth before they conceive! For they give and immediately demand back, and take away their money at the time they place out at interest what they receive as interest. The Messenians have a proverb— 'There is a Pylos before Pylos, and yet another Pylos still.' But it may be said to the usurers— 'There is a profit before profit, and yet another profit still.' And then forsooth they laugh at philosophers, who say that 'Nothing can come from nothing!'" { 1 INSPECTION. 175 If money lent upon excessive interest was subject to Interest. hazard, the contract was not deemed usurious. Thus, if Former law. the sum of £100 was lent, to have £120 at the end of the year, and the causalty attached to the interest only, it was usury, but not if both the interest and principal were in hazard.—Roberts v. Trenayne, Cro. Jac., 507. Chesterfield v. Jansen, 1 Wils. 286. Where, however, the lender, without being a partner, stipulated for part of the profits of the business of the borrower, in addition to interest, the loan was held usurious, for though the lender thus hazarded his principal, so as to render it liable to partnership creditors, yet it was no further hazarded than in the case of every other loan, namely, by the risk of the borrower's insolvency. —Morse v. Wilson, 4 T. R. 353. It may be added, that the circumstances of the various cases brought in connection with the usury laws, were narrowly scrutinized by the Courts, and that the statutes were most rigidly construed by them for the suppression of usury. Indeed, in one case it was observed by Lord Mansfield, that "where the real truth was a loan of money, the wit of man could not find a shift to take it out of the statute."-Floyer v. Edwards, Cowp., 114. We have seen that the operation of the exempting statute, 2 and 3 Vict., c. 37, was declared by the 13 and 14 Vict., c. 56, to be extended to the 1st of January, 1856. In August, 1854, however, the entire abrogation of the usury laws throughout the United Kingdom was, by the 17 and 18 Vict., c. 90, effected; and it will be hardly necessary to observe that it is now lawful for the lender of money to take any rate of interest he can obtain, no matter what security he may possess, whether landed or otherwise. Until about the end of the fifteenth century the history Former Rates of interest in England is somewhat obscure. In 1488, or in the 3rd year of Henry VII., a statute was passed pro- hibiting the taking of interest; and, from a passage in this act, it would appear that twenty per cent had been the rate 1 3 Interest. Former Rates. Usury. 176 INSPECTION. usually exacted at that time. The 37 Henry VIII., already alluded to, first legalised the taking of interest, the rate of which was, by that act, fixed at 10 per cent, a penalty being imposed upon those who took more. The objections and prejudices, however, were then so great against interest being allowed to be taken for money, that the statute was repealed in the following reign by the 5 and 6 Edward VI., c. 20, which prohibited the taking of any interest whatever. But, as this was afterwards found to be injurious to the rising spirit of commerce, an act was passed in the 13th year of Elizabeth, c. 8, repealing the statute of Edward and legalising interest at the previous rate of 10 per cent. This act, which was to continue in force for five years, was, after being several times renewed, made perpetual in the 39th year of the same reign. By the 21 James I., c. 17, passed in 1624, the legal rate of interest, however, was reduced to 8 per cent., with the curious provision that the statute should "not be construed or expounded to allow the practice of usury in point of religion or conscience." The legal rate having been further reduced to six per cent in 1650, during the usurpation, this latter rate was re- enacted after the restoration, by the 12 Charles II., c. 13, and in 1713, when the statute of Anne above-mentioned was passed, the rate was finally reduced to five per cent, at which it continued, with the exceptions seen, until the entire repeal of the usury laws by the 17 and 18 Vict., c. 90. Under the statute of Anne, it may be added, the penalty for exacting more than the legal rate was forfeiture of treble the value of the money lent, and nullity of the transaction in so far as the usurious] stipulation was con- cerned. It was to interest exacted beyond the rate established by law that the term usury was latterly in this country exclusively applied.* The strong feeling which, particu- Usury," says Beawes, 5th ed., p 411, "is literally defined to be money given for the use of money, or the gain of anything by contract above the principal, or that which was lent, exacted in consideration of the loan, whether } INSPECTION. 177 larly before the Reformation, existed against the taking Interest. of interest, derived its origin chiefly from the Mosaic Usury. prohibition; though Blackstone, in his Commentaries, B. 11, ch. 30, divides the source with the renowned Stagyrite who maintained that money was naturally barren, and that to make it breed money was preposterous and a perversion of the end of its institution, which was only to serve the purposes of exchange, and not of increase* a doctrine which, however viewed by the Schoolmen, has in these later times been regarded as somewhat detract- ing from the right of its distinguished propounder to the flattering title of "the philosopher of truth." By the law of Moses the prohibition appears to have been effected it be of money or any other thing. Some declare usury to be an exaction of profit for a loan, made to a person in want and distress, and Mr. Malynes in his Lex Mercatoria, terms it a Biting from the etymology of the Hebrew word Nesbech, by Mr. Humphreys in his annotations on Nesbech, which he supposes a general one for usury; but after all, it properly consists in extorting an unreasonable rate for money, beyond what is allowable by law. The letting money out at interest, or upon usury, these being formerly regarded as synonymous terms, was against the common law; and in times past, if any one, after his death, was found to have been an usurer, all his goods and chattels were forfeited to the King, &c., and according to several ancient statutes, all usury was unlawful; but now, neither the common nor statute law absolutely forbid it; on the contrary, a reasonable, that is, a lawful, interest may be taken for money, and how can it possibly be otherwise, when Govern- ment itself pays several rates of interest half-yearly, to public bodies of men and private individuals, for immense principal sums borrowed at various times, from the public at large, for the exigencies of the state in times of war. * Aristotle, Polit. 1. x., C. 10. +"A consideration that did not happen to present itself to that great philosopher," says Jeremy Bentham in his Defence of Usury, p. 101, ed. 1787, "but which had it happened to present itself, might not have been altogether unworthy of his notice, is, that though a daric, would not beget another daric, any more than it would a ram, or an ewe, yet for a daric, which a man borrowed, he might get a ram and a couple of ewes, and that the ewes, were the ram left with them a certain time, would probably not be barren. That then, at the end of the year, he would find himself master of his three sheep, together with two, if not three, lambs; and that, if he sold his sheep again to pay back his daric, and gave one of his lambs for the use of it in the meantime, he would be two lambs, or at least one lamb, richer, than if he had made no such bargain." "No man," says this eminent author, p. 2, "of ripe years and of sound mind, acting freely, and with his eyes open, ought to be hindered, with a view to his advantage, from making such bargain, in the way of obtaining money, as he thinks fit; nor, (what is a necessary consequence) anybody hindered from supplying him, upon any terms he thinks proper to accede to. >> In such transactions, however, the words of the Psalmist should not be over- looked, "A good man sheweth favour and lendeth; he will guide his affairs with discretion."-Psalm cxii., 5. 1 } 4 L 1 £ } Interest. 178 INSPECTION. by degrees; as in the first instance, Exodus xxii. 25, the injunction to the Jews is against taking interest, or, as it is rendered, usury, from the poor of their own people for loans of money, then from indigent sojourners or strangers dwelling with them, Leviticus xxv. 35, 36, the application of the prohibition being at the same time extended to articles of food as well as to money, v. 37. And, finally, the injunc- tion is against the exaction of interest from any of their countrymen either for loans of money or commodities of any description: “Thou shalt not lend upon usury to thy brother: usury of money, usury of victuals, usury of any- thing that is lent upon usury." Deuteronomy xxiii. 19. That this law was meant to be solely confined to the Israelites is now generally understood. It was merely a civil or political, not a moral ordinance, and was in accordance with the other peculiar laws appointed for the civil government of that people. That interest upon money lent is in itself not contrary to the divine law appears evident, from the permission contained in the verse immediately following the above, "Unto a stranger thou mayest lend upon usury, but unto thy brother thou shalt not lend upon usury." From a passage in Nehe- miah v. II, it would appear, according to the opinion of commentators, that the rate of interest exacted by the Jews was one per cent. per month, it being recollected that an additional month was intercalated every second or third year. In recent times the taking of interest has been considered as equitable and reasonable as the taking of rent for the lease of fields or houses, and, indeed, without credit, which would not be supplied if interest could not be claimed, the various operations of trade and the commercial relationship of nations could not well subsist. At first, when much jeopardy attended the advance of money, the rate of interest exacted was not only exorbitant, but the lender also, so uncertain was he of not $ INSPECTION. 179 only receiving back the principal, but also of having Interest. payment of the interest, often found it necessary to have from the borrower ample security in the shape of jewels or other valuables-a mode of dealing which frequently excited the resentment of those who wished, or found themselves necessitated, to borrow, and which secured for the lending class generally no inconsiderable degree of opprobrium and abuse. Later, when partial encouragement was given by the ruling powers to the lending of capital upon interest, and when this business began to be undertaken through the medium of bankers, accommodation became not only more extended, but was granted on easier terms, though in many countries, from the defective state of the laws with regard to the remedy against debtors, a comparatively high rate of interest continued to be maintained. While governments witnessed the beneficial effects which continued Former Foreign to result from the distribution of capital upon interest, and Rates. the impetus that was given to commerce by this means, it was deemed necessary, however, in the majority of instances, to place certain restrictions upon the rate of interest, which should be exigible upon loans. Amongst the Romans, for instance, we learn from Livy, and subsequent historians, that the restricted rate ranged at different periods and under different circumstances, from twelve down to six and four per cent. per annum. By Justinian the rate was reduced to four per cent. upon common loans, a higher rate, however, being allowed on advances to merchants, with whom the hazard was greater ; and from Grotius we find that in Holland, at the close of the 16th century, the legal rates fixed were eight per cent. for common loans and twelve per cent. for loans to traffickers.* In our own country, we have seen the rates * *The following are given in the BANKERS' MAGAZINE, V. 19, p. 139, as the general rates of interest which prevailed in different European countries. 'In Scotland, the legal rate was fixed at six per cent. in 1661 but both in that kingdom and in Ireland," where, we may add, the legal rate was also six per cent., and at which it continued to remain until the 1 ľ 42 1 Interest. Unrestricted Rate. 180 INSPECTION. which have obtained at various times, the policy of the regulations by which the limit was fixed and reduced having been, according to Paley, "to check the power of accumulating wealth without industry, to give encourage- ment to trade by enabling adventurers in it to borrow money at a moderate price, and, of late years, to enable the State to borrow the subjects' money itself.”—Moral and Political Philosophy, B. III. P. 1. C. x. More than a century previous to the passing of the Act of Anne, it may not be uninteresting to add, the reduction of the rate of interest in general to five per cent., or to one-half of the then legal rate, had been recommended by Lord Bacon. In his essays, civil and moral, where he treats of the subject, the introduction of two rates is suggested, the one rate to be five per cent. "free and general for all," the other to be higher, and to be exacted by license from the merchant, whose trade, being the most lucrative, is the best able to "bear usury at a good rate." Practically, however, it may be much questioned whether the imposition of restrictions upon capital in the manner seen has been attended with that benefit which was expected to result from it, in acting as a check upon the avarice of the grasping lender, and of protecting the needy borrower from oppression, or that it has really had the effect of rendering money easier or cheaper for the extension of commercial operations. † But under the recent Usury Repeal Act, "ten or twelve was the usual rate. In Turkey, about twenty per cent. was the usual average," though thirty per cent. was not uncommon; "in Spain, notwithstanding the possession of the gold and silver-producing countries, it was ten or twelve; in France, seven; in Holland and Italy only three. The case of Holland is an illustration of the tendency of political and commercial freedom to reduce the rates of interest. In 1566 the rate was twelve per cent., but at the beginning of the 17th century it had fallen to six; and in 1655, at the suggestion of John de Witt, who had projected the then novel scheme of a sinking fund,, to be maintained by the saving effected by lowering the rate of interest paid on the public debt, the rate was reduced to four." + Mc. Culloch has said on this point :-"It is plainly in no respect more desirable to limit the rate of interest than it would be to limit the rate of insurance or the prices of commodities; and though it were desirable, it cannot be accomplished. The real effect of all legislative enactments having f ¿ INSPECTION. 181 Unrestricted altered circumstances of recent times, forces are apparently Interest. at work which will either break down, or render nugatory, Rate. all artificial barriers of the above description, and we accordingly find that not only in this country, but in such an object in view, is to increase, not diminish, the rate of interest. When the rate fixed by law is less than the market or customary rate, lenders and borrowers are obliged to resort to circuitous devices to evade the law; and as these devices are always attended with more or less trouble and risk, the rate of interest is proportionally enhanced. During the late war it was not uncommon for a person to be paying ten or twelve per cent. for a loan, which, had there been no usury laws, he might have got for six or seven per cent. Neither is it by any means uncommon, when the rate fixed by law is more than the market rate, for borrowers to be obliged to pay more than they really stipulated for."-Com. Dict. p. 715, 2nd edition, 1835. And Beawes, in his edition of 1792, p. 415, says, "All the exertions of the British Legislature have hitherto been ineffectual to suppress the practice of exorbitant usurious contracts for the loan of money to distressed individuals. Various stratagems are contrived by the money-lenders, who advertise in the public newspapers, to take advantage of the prodigal and the unfortunate. The most common method-which we introduce here as a caution-is to stipulate for a premium, which they will oblige the borrower to pay back on the instant, together with a year's interest in advance, and then they take the security, whether bills, bonds, or assignments of land or houses, for the specifick sum lent. Thus, if you apply to them for the loan of £100 for a year, they will demand a premium or consideration, and, if the security is only personal, you will hardly obtain it under £20. Having agreed to this exorbitant demand, and your bond or note for £100 being prepared, that sum is laid before you, and you are directed by the money-lender or his agent to return £20, and £5 for the year's interest; this being done, you deliver the security for £100, and carry away only £75. If you are not ready to discharge the debt at the expiration of the year, it is possible, by granting a fresh note or bond for £120, you may obtain the loan of the original sum you have received, viz., £75 for another year, at the end of which you will have to pay £125, including the last year's interest, which is exactly £50 for the use of £75 for two years. Extravagant as the above contract may appear, it falls infinitely short of some cases which, within these few years, have come before the courts in Westminster Hall, for recovery of the securities given for money so lent. For in some, very large sums were lent to young gentlemen of rank and fortune, and the greatest part was to be taken in goods, the lender not having so much cash in hand; the goods were taken up of a friend of the lender, and as a young nobleman could not know what to do with linens, silks, drugs, china, &c., a third person in the confederacy was recommended to buy them off him, perhaps thirty per cent. under the estimate at which they were delivered to him in lieu of cash. In one instance, it appeared that a young baronet had received no more than £900 in cash, part of it being the produce of goods estimated at £1000, and sold for his account at £700, for a landed security to repay £2000, the premium and the loss upon the goods absorbing the remainder. It may be noted that the law in the United States of America, restricting the rate of interest to six per cent. on call loans, has been recently repealed. It had long been evaded by commissions being charged in addition to the interest, and in times of stringency the rate of commission exacted was such, that the price paid by a borrower amounted, in some instances, to upwards of fifty per cent. per annum. In our previous volume, page 306, an account was given of the bill swindle; and the following from Time," reproduced in the Scottish Banking and Insurance Magazine, of July, 1880, may with propriety be given in connection with the loan swindle :- 1 1 182 Interest. Unrestricted Rate. h INSPECTION. several foreign states, where stringent restrictions had prevailed, entire freedom for the use of capital has been now conceded. Though, as we have seen, the legal rate was, latterly, in this country five per cent, yet, in the case of contracts "The Ishmaelites of our complicated modern society are continually devising new methods of preying upon their fellows. Their schemes, which are very various, are many of them so highly ingenious that they long, if not entirely, evade detection. The dastardly and devilish system which the French call chantage is practised probably far oftener than any but the victims suppose. There are in our midst many unscrupulous scoundrels, who, possessing damaging information of various kinds, drive a fine trade by levying blackmail under threats of exposure. It was not until grasping cupidity led her to fly at too high game that justice overtook the charlatan who promised to restore the roses to faded females and make them beautiful for ever. But no nefarious trade has prospered more, or enjoyed a longer immunity, than that of the fraudulent loan-mongers. The manoeuvre was one well calculated to succeed. It was devised by clever rogues, well versed in the foibles of human nature, and singularly keen in turning its weaknesses to their own profit and advantage. Shortness of cash is a chronic complaint with a large section of society. The number of the thriftless does not diminish with the increased diffusion of wealth. There are still crowds of soft-fibred fools who neglect their affairs, who suffer themselves to be gulled in business or robbed in private life, from whom money flows always like water, who can never even approximate to making both ends meet. To them an offer to lend money is like the straw which buoys up the hope of a drowning man. How wide are the operations of the better stamp of money-lenders, who, rooks and harpies though they be, do actually hand over certain sums at usurious rates, the world has by this time a fairly accurate idea. It is probably less well informed concerning those who only pretend to lend, and whose business is a barefaced swindle from beginning to end. These rogues have not a single sixpence of capital, and they never part with a penny. Yet some of them, by their native astuteness, often single-handed, and without the smallest outlay, have amassed considerable sums. As an instance, the case may be quoted of one daring professor of this flagitious trade who cleared some six thousand pounds in a single year. The inventor and originator of the loan-office swindle was a broken-down attorney, who shall be called Cook. Cook was a pettifogger who, never very respectable, had fallen gradually from bad to worse. After long haunting the purlieus of police-courts and low publichouses, now the adviser, now the companion, of evil-doers, he had found at length that not even the most disreputable clients or the shadiest cases were to be had, and starvation stared him in the face. Driven thus by that necessity which is the mother of invention, he struck out the brilliant notion of offering to lend others what undoubtedly he did not himself possess. His establishment, an office in a back street in the Borough, was modest; his proposed plan of procedure simple in the extreme. His only assistant was a certain Bodger, who had been a solicitor's clerk, and who was not much behind his principal in astuteness and practical knowledge. A slave, with the gift of fluent ornate composition and a skilled penman, took charge of the correspondence of the bureau, and completed the money-lender's staff. Cook opened business by advertising largely all over the country. There is an interesting and useful work of reference, which gives the names and addresses of all the journals published in the kingdom. From this Cook selected the most suitable for his purpose, giving the preference generally to newspapers in the large towns and manufac- turing centres at a distance from London. The advertisement was couched INSPECTION. 183 Rate. bearing interest and made in a foreign country, the rate Interest. allowed was according to the law of the place where the Unrestricted contract was made; so that interest to the extent of twelve per cent. was, in some instances, allowed by our courts on foreign contracts, such as on those of India and America. always in excellent English, and offered the most liberal terms. Such is the natural gullibility of mankind, especially of impecunious mankind, that it will swallow any pill sufficiently well-gilded and disguised. Cook's offers were of the most sugary and enticing description. With him money was to be had almost for the asking. The most impenetrable secrecy was guaranteed. No interest beyond the merest trifle, such as the State gives, was to be charged. No security was required except that of the borrower's note of hand; any one on written application, might obtain, within twenty-four hours, a loan of any sum from £100 to £25,000. All these tempting baits were headed by the words 'Money, money, money!' in large capitals, which at once attracted attention. Cook never had to wait long for victims. One or two applications came in generally by return of post, and more quickly followed. As each application was accompanied by an inquiry-fee of two guineas, Mr. Cook was at once recouped pretty liberally for his trouble. A common-place swindler might have been satisfied to pocket his 'swag' and disappear. Cook felt that this would be killing the goose with the golden eggs; and it would have, moreover, at once secured for him the attentions of the police, as engaged in an unmistakable fraud. His was a real address, and he desired to pursue his operations openly and above board so long as he could, trusting to fleece his clients without actually bringing himself within the grip of the law. As soon, therefore, as he had received a sufficient number of applications, all of them from the same neighbourhood, and usually from eighteen to twenty, he dispatched his agent to make the necessary inquiries upon the spot. Some- times he went himself, sometimes Bodger was employed; latterly he was served, and most effectively, by his own son, who curiously enough developed a natural genius for his father's profession. Strange to say, the inquiries, when once set on foot, were never quite satisfactory. Difficulties cropped up from the first. The agent personally interviewed the client, and catechised him severely. Had the applicant ever sought to borrow money previously? Was he prepared to make a declaration before a magistrate that he had not? Could he obtain a couple of sureties, respectable persons, men of substance in the town, who would guarantee his bona-fides? Sharp-witted rogues like old Bodger and young Cook, as the cross-examination proceeded, easily found openings for expressing dis satisfaction and mistrust; and the result of the inquiry was always to leave the would-be borrower in an uncomfortable state of doubt whether the money would be forthcoming or not. Often enough, too, the agent ferreted out that the client was peculiarly situated. He was an employé or subordinate, perhaps, who would get into trouble with his masters if his necessities were made known; or a struggling tradesman, whose creditors would settle down. on him if it crept out that he was borrowing money; and these damaging facts were treasured up by Cook and Co., to be used again later on if required. The so-called inquiry completed, the second stage in the swindle was reached. A letter was despatched to the borrower, informing him that the advance he sought would be made in due course; but that Cook and Co., in view of the somewhat peculiar circumstances of the case, were compelled to ask for a policy of life assurance as collateral security. Cook and Co., from the first, it must be mentioned here, were in intimate relations. with one or more life assurance offices of a not too reputable type. } 1 } Interest. Equitable Jurisdiction. 184 INSPECTION. The repeal of the usury laws has not affected the doctrine of equity as to dealings with expectant heirs or reversioners, and the principle on which, in such cases, it relies against unconscionable bargains has also been But Some of these have since come to well-merited grief, and their directors and officers expiated their sins in various terms of imprisonment. while the sun shone they made their hay, and Cook and Co. as often as not contributed to and shared in their harvests. One of these offices was named to the client as that in which he must insure. It was pointed out to him that the policy, after the first outlay, would be of considerable benefit to himself and to his family, inasmuch as when the loan was refunded the policy would be given up to him. No difficulties occurred in carrying out the assurance. The medical examination was always highly satisfactory; the proposal to insure was invariably accepted. One condition was made, namely, that the premium should be paid in advance. If the loan was for £500, the life assurance would be for double that amount, and the premium would probably be not less than forty or fifty pounds. This 'swag' was the last instalment received. When the money had been divided between Cook and the assurance office, the milch-cow was drained dry. The swindle was completed. The borrower was civilly but explicitly informed that fresh unforeseen difficulties had arisen. The absence of security, the character of the references, the exact condition of the borrower, all or any of these were expatiated upon. If the client showed his teeth and threatened proceedings, he was threatened in turn, and was plainly warned that various facts concerning him, which had come to the knowledge of Cook and Co., would be made public. If the client still resented the robbery, Cook and Co. dared him to do his worst. They had acted with perfect good faith throughout; they knew the law, and were guided by it; every step would bear the closest investigation. As to the life assurance, there it was still, provided he went on paying; and the borrower ought to be much obliged to them for encouraging him to make proper provision for his family. These arguments generally prevailed; the unfortunate victim accepted his loss, and Cook and Co. pocketed their plunder. For many years this rascally firm continued to flourish. But the pitcher goes once too often to the well, and in course of time every member of it succumbed to the active pursuit of the police, and were tried, convicted, and sentenced to various terms. "Cook and Co. stood at the head of the profession. But there are other loan swindlers who, although in a smaller way of business, have also driven. a roaring trade. These, unlike Cook, had no settled and acknowledged habitation. They dated their advertisements-which, however, were just as widely circulated as Cock's-from some small newsvendor's or other trader's shop, having previously arranged with the proprietor that he should take in their letters. Numbers of these shops are thus converted into unauthorised and unofficial postes restantes, and it is not easy to exaggerate the mischief they do. They serve continually to facilitate intrigue; it is through them that frail wife or foolish virgin seeks to carry on clandestine correspon- dence with the gay Lotharios of the town; they are largely made use of also by swindlers and depredators engaged in every description of dis-. honesty and crime. It is, indeed, becoming a question whether the Postmaster- General should not interfere, at least to the extent of forbidding letter- carriers to leave letters at such places unless satisfied that the persons addressed are known, or actually reside there. The facilities the system of a fictitious and constantly-shifting address affords to the fraudulent loan-monger are obvious. It enables him, in the first place, to escape observation, not only when suspicion is aroused, but at the outset when commencing his game. It is a rule with these wily rogues never to go for + } ' INSPECTION. 185 extended to cases generally in which unfair and improper Interest. advantage has been taken. The law on this point is Equitable Jurisdiction. fully contained in the case of Lord Nevill v. Snelling, 13, 14 July, and 7 August, 1880, L. R. 15 Ch. Div. 679, 49 L. J. Ch. 777, 43 L. T. 244; Denman, J., in the course of his judgment, saying: "Upon the argument before me letters direct or alone. Two approach the shop very cautiously together. Both are on the look-out for abonnet,' or policeman in disguise, or any other trap. If the ground seems clear, one enters and inquires for letters. This is seldom the principal, unless new in the business, or quite unsuspecting. He has his reasons for keeping dark, and he can generally command the services of a cat's-paw in the shape of a creature or dupe. The letters secured, they are conveyed to a safe place, generally the chief swindler's own private residence, and there examined carefully and at leisure. The operator's first business is to select the most promising among the applica- tions he receives. These, as with Cook and Co., are always numerous enough. The same, or more attractive, baits have been employed. Again, no other security beyond a note of hand will be required; the interest is to be merely nominal; there are to be no law expenses whatever, and no inquiry-fees will be charged. Choice made, a first letter, written in a running commercial hand, and fluently worded, is addressed to the client. The following may be taken as a specimen : "" "Simple Duffa, Esq. "Friend-in-Need Loan Offices, "No. 292, Dorcas Lane, E.C. -18—. CC C Dear Sir, I am in receipt of your favour of yesterday's date, applying for a loan of £100, which I shall be happy to consider with all convenient dispatch. As the result of a long-tried and, I am pleased to think, thoroughly satisfactory system, I am in a position to dispense with references in your case; but as it is obviously essential that I should be satisfied of your bona-fides, I have telegraphed to my agent, who resides at (some town within easy reach of Mr. Duffa's home), and have desired him to make privately all necessary enquiries. To recoup his expenses I shall be obliged by your at once transmitting me the sum of 7s. 6d. in stamps, which, when the loan has been satisfactorily arranged, shall be repaid you in full, less one shilling the cost of telegram. It will also expedite matters, as tending to convince me that you are not an habitual borrower, if you will inform me by return of post whether you have previously obtained moneys from any loan-office, and, if so, which, and to what amounts. . "I remain, faithfully yours,' "In all bona-fide cases an immediate reply, enclosing the stamps, is almost invariably sent, and the swindler knows that he has hooked his fish. He has made no inquiries, of course; that would be mere waste of money. But within a few days a second letter is addressed to the borrower, not exactly of an evasive character, but hinting at small, although not insurmountable, difficulties. A third, and perhaps a fourth, follow, couched in friendlier terms, and then comes the formal acceptance of the application : << < "SIMPLE DUFFA, Esq. S 'Dear Sir. It is with unfeigned satisfaction that I beg leave to inform you that the result of my inquiries in your case has been everything that could be wished. I shall be pleased, therefore, to make you the advance of £100 as requested by you, upon the terms hereinafter set forth. The only security I require is your simple note of hand, and I enclose herewith a copy of the form of document which I wish you should sign. This, you will understand, is not the formal and legal document, but merely a draft of agreement between ourselves. Will you, if satisfied, be good enough to initial it and return it without unnecessary delay? On receipt thereof my agent from will be instructed to call on you and hand over the cash in Bank of England notes, and I will then send the proper document to you to sign. I may add that my rate of interest is seven per cent. per annum, paid half-yearly in advance; and I shall be obliged by your transmitting me the sum of £3 35, 6d.. the full amount, deducting inquiry fee (less cost of telegram). "I am, &c.'" "In nine cases out of ten this simple and seemingly confiding effusion wins upon the borrower, and he gladly forwards the interest at once. Has not the { * X Interest. Equitable Jurisdiction. 186 INSPECTION. numerous cases were cited on both sides, none exactly in point, but many of them throwing light upon the question how far a Court of Equity can interfere with transactions more or less similar to the present. I have had considerable difficulty in making out to what extent the cases relied upon are to be considered as wholly or 'It generous lender promised to part with the hundred pounds even before the promissory note is signed? A day or two elapses, but no agent appears with the Bank of England notes. If the client commences to be uneasy he is presently reassured. Another letter comes now from the loan-office, to the effect that the lender's lawyers have pointed out a flaw in the agreement. appears,' so runs the missive, 'that it is absolutely essential for legality that the note of hand should be signed in my presence. I propose, therefore, to go down to for this purpose myself, by the first opportunity, on receiving from you the sum of £2 25. to cover all necessary expenses. This is the last move, but it does not invariably succeed. Sometimes, however, the victim parts with the cash, and hears nothing more of the loan. More often he declines to throw good money after bad. In general he comes sooner or later to the police, and seeks to obtain redress from the law. Agents and under- strapper are employed to carry to and fro the pièces à conviction. They may, and constantly do, fall into the hands of the police; proof against them is clear. They are convicted; but the chief offenders escape. The constant change of address for letters already described is one leading difficulty in the way of detection. Even if that becomes known, the rogue sends others for the letters, and eludes observation himself. It becomes indispensable, then, to discover his own secret lair. Inconceivable difficulties surround the obtaining any clue to this. It is idle to follow the man. He is far too cute not to be conscious of pursuit, and his whole aim is to lead the detective a dance, or throw him completely off the scent. Not long ago, however, a notorious evil-doer of this description was very cleverly run in; but even when victory seemed certain for the police it was nearly wrested from their hands. The private address, after infinite pains and patience, had been found; a 'trap,' or artificial letter, had been despatched to the so-called loan-office, and on the morning it was to be delivered in the regular course of the post, a detective and two trusty assistants were stationed so as to command the three avenues of approach to the swindler's house. He had gone out betimes to receive his letters, which a confederate, as usual, had fetched from the place of deposit and handed over. It was well on towards midday when he returned. He came home, not by the main thoroughfare, where, in a public-house, the chief officer, holding the warrant, was on the watch, but by the least frequented road, and the constable, at this point, failing to recognise him, let him pass. In another moment he would have entered his house and got clean away, when someone gave the policeman the 'office,' and he hastened up to secure his man. 'Where's your warrant?' promptly asked the culprit. 'The sergeant has it,' was the answer. Then you shan't take me. Come another step nearer, and I'll brain you.' Nothing daunted, the policeman advanced; whereupon the other turned tail and ran for his life. The spot was on the outskirts of London; narrow lanes were mixed up with fields, and dykes, and dust-heaps, in and among which the fugitive dodged, with the constable always at his heels. Once or twice the former, who was a large, powerful man, turned, at bay, daring his pursuer, who was no match for him, to come on. This the latter warily avoided, feeling that, if he came off second best in a fight, the whole game would be up. He sought help from the by- standers therefore; but they only laughed at him, detecting at once, with keen eyes, the copper' in disguise. The chase might have lasted all day, for neither of the other detectives knew what was in progress, and stuck کو INSPECTION. 187 Jurisdiction. mainly turning upon the fact that the person seeking to Interest. be relieved from a bargain was an expectant heir or Equitable reversioner. Many of the cases, no doubt, are based entirely upon that ground, coupled with the hardness of the bargain, and cannot be considered as authorities applicable to any other case. Yet, in many of the cases, the court appears to have proceeded to set aside the transaction complained of on grounds which seem to be quite as applicable to the case of an improvident young man who falls into the hands of a professional money- lender and gets deeper and deeper into debt, the money- lender trading upon the probable unwillingness of the young man's relations to let him and his family be exposed by bankruptcy, as to the case of an expectant heir being led into an improvident bargain by a money- lender of the same description. It is very difficult to see any very solid distinction as regards the morality of the two transactions; and I cannot myself perceive that the money-lender who trades upon the hope of eating up a slice of a large family estate upon the death of its present owner is a being at all more unconscientious or worthy of correction by a Court of Equity than the money-lender who trades upon the dread of exposure of the vices and follies of their children, which is likely to force parents of adequate means or honest names, whether they be rich peers or persons of more moderate estate, religiously to their posts of observation. But, after an hour or two, reinforce- ments came to the side of the law. Just as the two o'clock relief of blue- coated policemen were marching to their beats, a boy came up, and said there was a prize-fight in the fields hard by. Naturally a strong detachment went off at once to the spot, saw for themselves the couple who had been so long engaged in flight and pursuit, and took both into custody. After that, of course, it was all plain sailing. The disguised policeman made himself known, the detective-sergeant was summoned with the warrant, and the swindler was laid by the heels in gaol, >> Lately, we may add, it has not been unusual for advertisements to appear, offering, on the part of the advertiser, to find employment for ladies, or to advance them money, if needful. In almost every case such advertisements emanate from some abandoned reprobate, whose sole object is to get the deluded victims into his power for profligate purposes, or to aid him in the execution of some cunningly-devised fraud, or deeply-planned scheme of robbery. { . ↓ # Interest. Equitable Jurisdiction. 188 INSPECTION. to pay interest, however usurious, rather than see their children figure in the Bankruptcy Court. In the case before me, if the defendant were allowed to retain all that he claims to be entitled to, he would have succeeded in as sweeping an operation, in proportion to the size of the transaction, as the defendant failed to support in Earl of Aylesford v. Morris, L. R. 8 Ch. 484, for he would be receiving £940 per annum on loans to the amount of £900. Still it does not follow, because the transactions may have been most usurious, that they ought to be set aside, or that the defendant ought to be deprived of the bargain into which he may have led a foolish and improvident young man, provided it really was a bargain understood by both parties and entered into under such circumstances as to show mere folly and extravagance on the one side, and mere usury on the other; and, if I find that the decisions do not warrant me in interfering, I must not interfere. Some of the cases cited for the defendant are strong against inter- ference in cases of this kind, or at least in cases with One case was cited some strong features of resemblance. which is not to be found in the reports, Bennett v. Bennett, M. R., Dec. 9, 1876. I had no statement of the facts of the case, but only a shorthand writer's note of part of the judgment. It was an administration suit, and a claim to interest at the rate of 60 per cent. on some bills of exchange was disputed. The Master of the Rolls said: 'A man may agree to pay £100 per cent. if he likes.' This, of course, cannot be disputed since the repeal of the Usury Acts; but it has been fre- quently held that the repeal of the Usury Acts has not affected the jurisdiction of the Court of Chancery to give protection in the case of sales of reversions by persons. under pressure-O’Rorke v. Bolingbroke, 2 App. Cas. 814: Miller v. Cook, L. R. 10 Eq. 641; Tyler v. Yates, Ibid. 11 Eq. 265; and Howley v. Cook, Ir. Rep. 8, Eq. 570, and • INSPECTION. 189 I apprehend that, if in any case if the facts are such that Interest. a Court of Equity would have interfered before the repeal Equitable Jurisdiction. of the Usury Acts, it will still interfere, except so far as the objections are founded upon usury alone. Another case relied upon by the defendant was Webster v. Cook, L. R. 2 Ch. 542, in which, where a person of full age had agreed to pay £5 per cent. per month on a sum of £400 advanced, the Court refused to interfere. Lord Chelmsford, L. C., said, L. R. 548: 'The interest exacted by the defendant is certainly of an excessive kind, and is calculated to create a prejudice against him; but the plaintiff is not a young man, and is fully capable of taking care of himself. He knew that the defendant was a money-lender, and he himself states that he had had dealings with the defendant for four years previously, and, if the plaintiff choses to enter into an agreement of this kind, in which he can impute no fraud or unfair dealing, I do not see what right equity can have to interfere with the transaction, although it may be regarded with no favour.' I can, however, find no case which decides that the interference of the Court is limited to cases in which the dealings have been with expectant heirs or reversioners, or to cases in which the dealing has been one in relation to the expectancy; and I gather, from the expressions used in several of the cases, that if the transactions are such as to show that the money-lender has throughout been unconscientiously trading upon the weaknessses of the borrower, commencing operations with him during his minority, charging him usurious interest, and endeavouring to entangle him more and more in indebtedness, not as a fair matter of business, but looking to the chances of extorting money from others interested in the debtor, especially if there be any unfair dealing in the course of the transactions which are before the Court, the Court will so far restrain the transaction, as to compel the money-lender to be satisfied with the sums } t 3 L } 190 Interest. Equitable Jurisdiction. INSPECTION. advanced, and fair interest for them. The real question, in every case, seems to me to be the same as that which arose in the case of expectant heirs and reversioners before the special doctrine in their favour was established— that is to say, whether the dealings have been fair, and whether undue advantage has been taken by the money- lender of the weakness or necessities of the person raising the money. Sometimes extreme old age has been unduly taken advantage of, and the transaction set aside. Some- times great distress. Sometimes infancy has been imposed upon, and transactions, though ratified at the full age, have been set aside because of the original vice with which they were tainted. In every case the Court has to look at all the circumstances. In some cases may result the conclusion that there exists mere inadequacy of price, or exorbitance of interest charged, in which case the transaction will not be interfered with. But in others, taking the whole history together, it may present so many features of uncon- scientiousness, extortion, and unfair dealing on the one side, and weakness on the other, as to compel the Court to exercise its equitable jurisdiction, at all events so far as to restrain the profits of the money-lender within fair and reasonable bounds. Lord Thurlow, in Gwynne v. Heaton, I Bro. C. C. 1, 9., in speaking of the case of expectant heirs, says: 'There is a policy in justice protecting the person who has the expectancy, and reducing him to the situation of an infant, against the effect of his own conduct. The heir of a family dealing for an expectancy in that family shall be distinguished from ordinary cases, and an unconscionable bargain made with him shall not only be looked upon as oppressive in the particular instance, and therefore avoided, but as pernicious in principle, and therefore repressed.' This by no means says that if one who is not an expectant heir, and whose transactions with a professional money-lender commence during infancy, is INSPECTION. 191 afterwards led on into hopeless indebtedness, by oppressive Interest. and unconscientious bargains in a series of transactions, Equitable Jurisdiction. he is not to be protected by the Court; on the contrary, it rather assumes that he would be entitled to protection, though not an expectant heir. In Beynon v. Cook, L. R. 10 Ch. 389, a young man of twenty-six, wholly without means, but entitled to a reversion on the death of his mother, applied to the defendant, a money-lender, who advanced £85 on a note for £100, payable at six months, and a charge of £100, on his reversionary estate of £600, and, in case of default in payment of the note, the defendant was to realize the charge, and pay himself the £100, and interest at £5 per cent per month. This transaction came before the present Master of the Rolls, who made a decree for redemption, on payment of the £85 advanced, and interest at £5 per cent, on the ground that the plaintiff was an expectant heir, and the bargain a hard and unreasonable one. That case, being one of an expectant heir, is, of course, no authority for interfering in the present case. But I cannot help thinking that the present case is one in which Equity ought equally to interfere. The Plaintiff was a minor. He was induced by a circular, sent out to persons whose names were in the Peerage, and so sent merely because their names were in the Peerage, to borrow money of the defendant. The defendant never intended to deal with the plaintiff as a real matter of business between him and the plaintiff, looking to his means, present or future. The defendant throughout intended to work upon the weakness of the plaintiff and the fears of those belonging to him, his main reliance being upon the power or hope of extorting money from the plaintiff's father as soon as the plaintiff broke down in the payment of cent per cent, or more. The interest was enormous. The defendant took advantage of a mere mistake of the plaintiff, and pocketed large sums to which he was not entitled by any bargain approximately r 1 } Interest. Equitable Jurisdiction. Compound Interest. } 192 INSPECTION. explained to, or understood by, the plaintiff. The original bargain was made during minority. The whole conduct. of the defendant indicates that he was from the first unconscientiously inviting the plaintiff into his debt while a minor, and keeping him there more and more deeply entangled by unfair dealing with regard to the renewals of the first and subsequent notes, in reliance, not upon the solvency of the plaintiff, or upon his present or probable means of payment, but throughout intending to put pressure upon his father, and relying primarily upon that as affording the chance of being paid his loans and the usurious interest upon them, though also not without an eye to the possibility of being reimbursed, in case of the father's death, out of such expectations as most young lords, sons of the owners of large estates, have upon their fathers' deaths." * Though interest does not ipso jure bear interest, the conversion of it when due, as it then really forms part of the sum lent, into principal, would not appear to be contrary to natural equity. At law, it has been held that compound interest is allowable where an agreement has been entered into, at the time of the loan, that the interest, if not duly paid, shall be added to the principal, the whole to bear interest. And with regard to Bankers, proof of the established practice to accumulate interest at certain periods would be held equivalent to an agreement. On which point, it was held legal for Bankers to strike every quarter a balance, comprising, with the principal, charges both of interest and commission, the whole being carried forward as a new sum to bear interest, the Court declaring that "the custom of the place and practice of the parties being to strike a balance at these periods, brings Money-lenders have not much consideration shown them, in the City of London Court, by Mr. Commissioner Kerr, who, in cases of exorbitant interest, which he cannot diminish, orders payment by the most minute instalments, at long intervals, the debt thus often not becoming extinguished until nearly a lifetime has elapsed. } INSPECTION. 193 Interest. it to the case of a fresh agreement, at the beginning of Compound each quarter, to lend the sum then due."-Caliot v. Walker, 2 Anstr., 495.* It may be added, however, in so far as ·regards money deposited with Bankers, that it has been held they are not liable to pay interest on such in the absence of an express contract to do so.-Edwards v. Vere, 5 B. and Ad. 282. Though, in the case of Savings Banks, the Acts by which they are regulated specially provide that "compound interest" shall be given upon deposits. Under the Usury Laws, usury was not committed when Commission. the charge of commission was made, in addition to that of interest, at five per cent on the account, commission being viewed as a fee exigible by the Banker for trouble and expense in conducting the account. There is no precise rule fixing its rate. In this country, the general rate is a quarter per cent, and this has been sanctioned by the decisions, and it has also been found that in the case of a long and complicated account, the charge of a half per cent commission is reasonable.-Carstairs v. Stein, 4 M. and S. 199. In addition to the charge of commission for keeping the account, which charge includes, commonly, an extra commission on such bills as require to be forwarded. to country correspondents for collection, there is another and distinct commission chargeable on unpaid bills, the latter commission being generally at the rate of one-eighth per cent. During the subsistence of the Usury Laws, it was held advisable to detach the charges of commission from the charge of interest in the account; and where a Banker undertook a transaction, not in the ordinary way of his business, and stipulated for a charge accord- ingly, independently "of all costs, charges, damages, and expenses that he might be put to by means of the premises," this was not considered usurious, for *In one case, however, Lord Ellenborough refused to allow a charge of compound interest on half-yearly rests, unless the Bankers, who alleged such to be the bank's general practice, could prove that their constituent was aware of the practice.-Moore v. Voughton, I Stark. 487. M ઉ 194 INSPECTION. Commission. commission for trouble was not necessarily to be intended as a colourable reservation of further interest beyond the legal interest, but as a compensation for trouble not comprehended within the words "costs, charges, damages, and expenses."--Palmer v. Baker, 1 M. and S. 57. It has been held that commission may also be charged by the Banker for trouble in obtaining acceptance and payment of bills.-Baynes v. Fry, 15 Ves. 120. And also for the trouble of accepting and retiring bills on account of his constituent, whether the bills be payable in the same In place or not.-Masterman v. Cowrie, 3 Camp. 488. discounting bills, a charge of one half per cent com- mission made by a Bill Broker in the country, on a bill payable in London, was held legal.-Ex parte Hanson, I, Maddock 112. But where a charge of 7/6 per cent commission was made for discounting bills, and no evidence given that any considerable trouble or expense was occasioned by the transaction, Lord Ellenborough In this instance, deemed the charge to be unreasonable. the party discounting was in general business, and not a Banker. Brooke v. Middleton, I Camp. 445. Merchants or Traders and other persons may, it appears, besides Bankers, charge commission on account of trouble; but in such an event, they must make out a special case of corresponding trouble, a necessity from which Bankers are exempted. As regards the remuneration for the trouble of conducting accounts between Bankers themselves, this necessarily varies with the particular circumstances and incidents of the account. As between the Provincial Banker and his agent, the London Banker, however, there are generally three modes for determining the remuneration to the latter, viz., the allowance to him of a certain commission upon the amount of the debit transactions during the year, or the payment to him of a fixed annual sum, or his retention of a certain sum INSPECTION. 195 5 of money without interest in lieu of any commission or Commission. annual payment. The ordinary commission exacted by Bankers upon the debit transactions of current and operative deposit accounts, besides being sanctioned by law, has long successfully obtained throughout England and Wales, and to the Scottish Banker, from whose system of banking, it must be acknowledged, we have borrowed so much to advantage, might perhaps in turn be offered for adoption the above important feature of our English practice. Though more trouble and expense are perhaps occasioned to the English Banker, from the circumstance of cheques being more extensively used in this country than in Scotland, still there appears to be no just reason why the exaction should not become general throughout the Empire. This is the only open and legitimate manner in which the Banker can charge, not only for his trouble in keeping accounts, advising payments, presenting or forwarding bills for acceptance and payment, and for the due presentation of which, and the adoption of the necessary steps upon their dishonour, he renders himself responsible, but also, besides transacting the other ordinary business of his constituent, for advice given upon those questions relating to the "res magni momenti" which he is so often consulted, as well as upon other matters, which, failing him, would have necessitated recourse to the regular Lawyer. This source of income, likewise, serves to render the Banker independent of all investments in which there is the slightest chance of risk, and by it, and the returns derived from advances based upon proper security, and made to support the general industry and commerce of his locality, and not directed to some private speculative enterprise of his own, or made to promote the welfare of a favoured few, there is secured to him a fixed basis of remuneration, his business is comprised within known and well-defined upon ¿ + 1 196 INSPECTION. Commission. limits, a strict adherence to which, it may be added, will not only ensure continued success and prosperity, but will bear out the assertion made before a committee of the House of Lords, that under such circumstances it will be altogether impossible for his Bank to fail. And, indeed, as it is, it now appears to be assumed by the Courts, that the very fact of a Banker's failure is almost of itself conclusive evidence that he has been acting dishonestly and fraudulently in the course of his business. Directors. Trafficking in Shares. Fraud. Statute of Limitations. DIRECTORS. As will have been already perceived, the real prosperity, popularity, and stability of a Public or Joint Stock Bank depend mainly upon the leading officers, these gentlemen at Head Office being expected to daily advise and instruct the Directors; and, for facility in administrative purposes, the presence of the Managers of the principal Branches is by some of the Banks required once a week. The affairs of the Bank are nominally in charge of the Directors, who are chosen from the Shareholders, and must, as a qualifi- cation, possess the requisite number of shares designated in the Articles of Association, and by these articles the powers and duties of the Directors are prescribed, as will be seen more at large in our third volume. A Director should not traffic in the shares of his Bank. If he does so, and makes a profit from that source, he must apply it to the use of the Shareholders, for whom he is in the position of a trustee in respect of the profit so made. In the case of a bribe to a Director, it was held by the Court of Appeal, 5 August, 1880, affirming the decision of Stephen, J., in the Metropolitan Bank v Heiron, that such a bribe cannot be the ground of an action for money had and received to the use of the cestui que trust, but only of an equitable claim founded on fraud, and that, therefore, the Statute of Limitations begins to run from the discovery of the facts alleged to constitute fraud. Heiron, the defendant, was a Director of the plaintiff Bank, which was INSPECTION. 197 Fraud. Statute of in liquidation. In March, 1872, the Bank agreed to accept Directors. £50 from a debtor in satisfaction of his debt of £3800. The day after the passing of the resolution to that effect, Limitations. the debtor's solicitor wrote Heiron, claiming payment of £100 and the return of two Bills of Exchange for £150, obtained from the debtor "under the pretence that you, as a Director of the Metropolitan Bank, could and would exercise such influence as would induce the Bank to discharge him from his liability, the payment of which you guaranteed." Heiron handed the letter to the Bank's Solicitor. The letter was, at the time, discussed at length by the Directors with the debtor, and at Board Meetings. After the Bank went into voluntary liquidation in June, 1879, an action was brought by the Bank and liquidator against Heiron, claiming this £250; but it was observed by Brett, L. J., "that the only action which could be maintained by the Company, or by the Liquidator of the Company, against this defendant, would be an action in Equity, founded upon the alleged fraud of the defendant. Neither at law nor in Equity could this sum of £250 be treated as the money of the Company, until the court, in an action by the Company, had decreed it to belong to them, on the ground that it had been received fraudulently as against them by the defendant. In such a case, as I understand the ruling of Lord Redesdale, the money is to be considered as held adversely to the plaintiffs, the Company, until the decree where the suit is founded upon fraud, so that there is no trust until the decree. Although the Statute of Limitations does not strictly apply to equitable demands, yet courts of Equity will follow the analogy of the statute, and apply it to such a case. Then the only remaining question is, from what time does the statute run? and it seems to have been held that it runs from the time when the fraud is first made known to the plaintiff. If, in the present case, notice of the alleged fraud had only been given to the other Directors individually, it } 1 1 f : 1 } f Directors. Fraud. Statute of 198 INSPECTION. seems to me that this would not have been notice to the Company, and that the statute would not have begun to Limitations. run; but here the fraud-if fraud in fact there was-was made known to a Board of Directors acting as such, at a properly constituted Board Meeting, which is the only way in which a Company can receive notice. Therefore, the fraud, if any, was made known to the Company, and was so made known more than six years before the action was instituted. The claim, therefore, is barred." A * And Cotton, L.J., said: "In this case, Mr. Justice Stephen was, in my opinion, right in holding that the claim was barred by the Statute of Limitations. In favour of the appeal, it was urged that no time runs against a breach of trust; but that argument was founded on an insufficient definition of what is meant by a breach of trust. Where a trustee has a fund in his possession and wastes it, either by neglect of duty or by doing an act not justified, and the cestui que trust comes to recover his money, no time will bar his suit, for it is a claim by the cestui que trust against the trustee for money or property which was in the possession of the trustee, and must be considered in the possession of the trustee for the benefit of the cestui que trust until the trustee duly discharges himself. To such a suit there is no bar by statute. But the present is not such a case. Here the money sought to be recovered was in no sense the money of the company, unless it was made so by a decree founded on the act by which the trustee got the money into his hands. It is a suit founded on breach of duty or fraud by a person who was in the position of trustee, his position making the receipt of the money a breach of duty or fraud. It is very different from the case of a cestui que trust seeking to recover money which was his own before any act wrongfully done by the trustee. The whole title depends on its being established by a decree of a competent court that the fraud of the trustee has given the cestui que trust a right to the money; 1 INSPECTION. 199 Statute of and, although no time will run in such a case till the cestui Directors. que trust knows of the fraud, yet a court of equity, whether Fraud. by analogy or in obedience to the statute, will hold such a Limitations. claim barred if the cestui que trust stands by and takes no proceedings for six years from the time when he became aware of the fraud." L. R. 5 Ex. D. 319; 43 L. T. 675; 29 W. R. 370. Director and In contrasting the position of a Director with that of Distinction a Trustee, it was observed by James, L.J., in the case of between Smith v. Anderson, 13, 16th July, 1880, L.R.. 15 Ch. D. Trustee. 247; 50 L.J., Ch. 39; 29 W.R. 21, that "the distinction between a director and a trustee is an essential distinction. It is a distinction which lies in the very nature of things. A trustee is a man who is the principal, who deals with property as principal, as owner, and as master, subject only to an equitable obligation to account to some persons to whom he stands in the relation of trustee, and who are his cestuis que trustent. The same individual may hold the office of director, and be a trustee having property; but that is a rare, exceptional, and casual circumstance. But the office of director is that of being a servant. Of course, he may be called a director, but as between him and the company he is a paid servant of the company. He never enters into a contract for himself. He cannot sue or be suable unless he exceeds his authority, like any other agent; but he enters into contracts for his principal, and that principal is the company of whom he is a director, and for whom he is acting." "'* * In the above case a number of persons, exceeding twenty, subscribed money to purchase a given class of securities. These were placed in the name of trustees, who derived their powers, similar to those of directors of companies, from a trust deed executed between them and a nominal covenantee. Bearer certificates for £100 were given to each subscriber in number propor- tional to the amount subscribed. Each certificate-holder was to receive interest at six per cent. from the annual produce of the securities; and the certificates were redeemable, surplus produce permitting, at £120. It was held, overruling Sykes v. Beadon, L. R., II Ch., D. 170, that such a body was not an association for the purposes of carrying on business having for its object the acquisition of gain," within the meaning of the 4th section of the Companies Act, 1862, and therefore, though there were more than twenty subscribers, the body need not be registered, and was not an illegal association if unregistered. CC * 3 Directors. Plurality of Directorships. 200 INSPECTION. The number of companies formed for various purposes since the passing of the Limited Liability Acts has been so great as to lead to the publication of a "Directory of Directors ;" and this book reveals, as lately observed by the TIMES, the fact that many persons appear to follow the "trade of director" with so much assiduity that they can compass fabulous labours. Several directors do duty on the boards of twelve or fifteen companies, and many contrive to be chairman of from four to half a dozen concerns whose interests are wide as the poles asunder. The public is familiar with certain names, and these names are sought after by promoters and others, till the press of work on their owners must be grievous-that is, if names are not lent for mere decoy purposes, and without thought or intention of doing any kind of substantial work. "Looking through this book," it is added, "we should say that a number of people may earn from £2000 to £5000 per annum as director of companies, and a few privileged persons may make from £7000 up even to £10,000."* * In the first instance, the objects for which these companies were formed were of a very useful and praiseworthy character, many of the schemes having their origin in provincial places for the accomplishment of local improvements and the better development of steady-going trading concerns. Soon, however, undertakings of a very extraordinary nature were "floated," resembling in some degree those named in the lines of a poetical satirist :- "And there is a company raising The cost for a bridge to the moon, There's another for giving up grazing, And feeding our herds with the spoon; There's one to bag up cool shadow, For sale when the summer comes on, And one to keep sunshine in store, O, For the dark winter months of London." Indeed, the latter part of these lines might have prompted the idea for one of the schemes projected, an association for the purpose of “ maintaining residences in which an equality of temperature can be preserved all the year round, suitable to delicate constitutions;" a scheme which, though somewhat less problematical than those alluded to in the verse, was at least equally practicable with, if it did not promise to be quite so remunerative, as another that was devised by an ingenious savant, who, having invented an apparatus for securing, as was alleged, as much freedom of respiration at the bottom of the sea as on the surface of the earth, proposed the formation of a company for collecting all the treasures lying at the bottom of the ocean, the harvest to be gleaned between England and India being estimated by him at something like £1,000,000,000 sterling. The manias of the last century had produced 5 INSPECTION. 201 The misdeeds of Directors and other officers are dealt Directors. with by 24 and 25 Vic., c. 96, and 25 and 26 Vic., c. 89. Criminal liability. of Fellow- By one of the Irish Banks a somewhat frank and com- Compensating mendable confession was made at a recent meeting of its for Misdeeds shareholders, to whom it was announced that a director Director. had "retired," owing the bank £26,500, and that, in con- sequence of this, the directors had decided to accept smaller in companies for an Air Pump for the Brain, for Curing the Gout and Stone, for Ensuring Longevity, for Insuring Female Chastity and against Divorce, for making Deal Boards of Sawdust, and Butter from Beech Trees; and recent projectors appeared anxious to demonstrate that they were equally fertile in resource. But following these schemes, fantastical and otherwise, fraudulent undertakings were started, one "eminent and enterprising capitalist" having, in addition to his own company, launched various concerns, all entirely different scope and purpose; the result entailing, not to mention the cases of many other victims, a loss of something like £200,000 to his bankers. And quite recently we have the case of another company-promoter and "eminent Capitalist and Philanthropist," who carried on the business of a Stock and Share Broker, a Financial Agent, was Manager of an "Industrial Commercial Banking Company Limited,” and Secretary of a “Working Man's Mutual Society Limited,” and who, assuming several aliases, brought out, besides promoting, the last-named two companies, the "Great Wheal Polgooth Mining Company Limited," the "Wheal Elizabeth Mining Company Limited," and the "Silver Valley Mining Company Limited," the last having rewarded him, by the aid of the Central Criminal Court, with two years' imprisonment with hard labour. In connection with this company he was vendor, purchaser, manager, and sharebroker, and receiver of all the money raised. The working men had already been provided with a Mutual Society, in which, by taking shares, they would become entitled to financial assistance. Their money could then be invested in this Mine, from which enormous profits were to be had, and these could be placed in the "Industrial Commercial" Bank, which had been so benevolently formed. For the express benefit, then, of the working men, the mine was started, with a capital of £75,000, in 75,000 shares at 1 each. The purchase- money was to be £50,000, of which £30,000 was to be in cash, and £20,000 in fully paid-up shares. The prospectus stated that the mine had already returned estimated profits of £138,000 when lead was at only £7 per ton, half of its present value. In reality, there was about 10 worth of lead in the mine, which was already a worked-out concern, and the "valuable plant and machinery" consisted of an old wheelbarrow without a wheel. However, the alluring terms of the prospectus induced a number of working men to take shares, and a sum of between £6000 and £7000 found its way into the pockets of the projector. By the Articles of Association, he was to have the entire management of the concern, and could not be deposed except by a vote of three-fourths of the shareholders; a vote which could not possibly be obtained, as he held nearly half the shares of the company. By this scheme the projector had fancied that, after extracting all the money he could get from the public as shareholders, he would be able in due time to arrange for an amicable winding-up of the concern, and pocket most of the plunder. But in this he was fortunately frustrated, the result of his trial, after previous restitution, as far as he was able, to those whom he had defrauded, ensuring for him, as we have already seen, imprisonment and hard labour for two years. An able exposure of the shameless gambling and corruption in connection with company-mongering in France is given by M. A. Blaise, in an article in the "Journal des Economistes," a translation of which appears in Vol. xli. of the Bankers' Magazine, p. 979. M. Blaise ends his article by advocating 12 Directors. 202 INSPECTION. salaries, and that four of them had agreed to pay up any Compensating deficiency in realizing assets to meet the debt; and it for Misdeeds of Fellow- Director. was moreover announced, that no officials of the Bank would in future combine the business of the Bank with Impropriety the duties of agents for Insurance Companies. of Bankers acting as Insurance Agents. The latter appears to be a wise determination, as preventing competition with clients who have, in many cases, just cause of complaint against their Bankers in this respect. the regulation by law of "what has hitherto been left undone, the bonds which are issued to-day without limitation, and without giving them the guarantee of a certain appointed and reliable security. (The United States are in advance of us in this respect.) We can equally understand that a fiscal measure would check the abuse of new issues, by striking with a special tax (doubled and tripled for foreign business), not financial or other journals, but all financial articles, whether advertisements or puffs, recommending new concerns, as well as all published and distributed prospectuses. "" M. Courcelle-Seneuil, however, after reviewing the various plans which have been proposed for the purpose of checking Stock Exchange speculation, and lessening its evils, has come to the conclusion that no cure is possible, and he appears to be of opinion that though such speculation alters the fortunes of private individuals, it does not materially check the industrial progress of the country at large. The fall, occasioned by Stock gambling, of the "Union Générale,” in Paris, which has occurred since the above article by M. Blaise was written, has brought ruin and irreparable misery to numerous members of the aristocratic class in France. The concern, a finance or credit one, was founded, as a commandite company, in 1876, and two years later became a limited company. According to the original prospectus, "the favour of a special blessing, and an autograph from our venerated Holy Father," had been obtained, the financial affairs of the clergy being, amongst other things, intended to be taken in hand. The projectors, a small group of financiers, pocketed from the floating process upwards of 75 millions of francs. At a meeting of creditors held recently, their trustee stated that the president or managing director of the concern declared, at a meeting in November, 1881, that the company did not possess one of its shares, while in truth it then actually possessed 10,294 of its shares, 7000 of which had been bought since September 30, the date of the balance sheet which was presented to the meeting. The subscription for the new shares was opened, and thenceforth the bank possessed of its own shares on November 15, 24,116, which had cost 45,300,000f.; on November 30, 25,074, at a cost of 45,897,000f.; on December 15, 25,849, at a cost of 45,533,000f.; and on December 31, 26,502, at a cost of 45,865,000f., without reckoning large sums employed in carrying forward transactions in other shares. of the company. On December 31 the bank possessed also 20,929 new shares, subscribed for at 25,250,800f. From December 31 to January 15 the purchases continued till, at the stoppage of payments on January 30 last, the Union Générale possessed 77,074 of its old shares, bought for 187,294,200f., and 20,929 new shares, bought for 25,250,800f.-total 98,003 shares, costing 212,545,000f.—that is to say, it possessed one-third of the shares issued, and nearly half as much again as its capital. With the suicides and insanity that have resulted from this and the fall of other similarly-conducted concerns, there is some colour for the statement that the criminally-disposed, instead of betaking themselves to highway robbery and murder, have now become "Directors," to ensure the better and speedier accomplishment of their purposes. t f INSPECTION. 203 In the higher class of Banks, indeed, the pay of the leading officers is such as to render them altogether independent of this and any other such objectionable means of increasing their incomes. BRANCH OFFICERS. We may precede this portion of our subject by passages Branch Manager. from Grant's treatise on the law relating to banking, Importance 532-4, 2nd ed., 1865, where it is observed that the of his position. position of Manager is one of high trust; but the trust becomes still greater and the responsibility much enhanced in the case of a Local Manager of a Branch Bank. For many purposes he is looked upon by the law, and is treated as if he were the whole body, whom he has power to bind even by his tortious acts. He has necessarily a larger authority than usually attaches to agents, who in general have no authority implied by law, independently of their particular instructions, to borrow money for their principals; while to obtain deposits or loans for the bank, is one of the principal parts of the business of a branch manager, his power in this respect being unlimited; and thus he makes the bank responsible for every shilling he receives from its clients. And so, in his advances, the loss, if any, must fall on the bank. "In respect of any contract," it is added, “into which the manager may enter on behalf of a branch bank, provided it falls within the usual course of banking business, although, under the deed of settlement, or otherwise, the manager may be restricted from entering into contracts of that particular class, there being no proof that the party with whom the contract was entered into was cognizant of the restriction, the copartnership will be liable. Hawken v. Bourne, 8 M. and W., 709; see ex parte Chippendale, 4 De G., Mac. and G., 19." * *On the subject of bank officers, it may be added that, for the purposes of suing and being sued, certain banks have "public officers," and of this officer Grant says, pp. 535, 537, and 540: "The 7 Geo. IV., c. 46, which legalized the establishment of banking co-partnerships in England, exceeding a radius of sixty-five miles from London, required them to nominate and * } 3 Branch Manager. General Supervision and Duties. 204 INSPECTION. As we have already seen, over every department of the Branch the Manager is expected to exercise strict supervision, and to see that all the official work is care- fully, accurately, and closely kept up. In all calculations of interest and commission he should be particularly careful in seeing that these are effectually checked, any omissions or deficiencies being made good to the Bank. In connection with the expenditure of the Branch, a close watch should be kept, and no waste of any description permitted. In the conduct of the daily business, the Manager should open all the letters received, and make himself acquainted with their contents before distributing them for attention. And where practicable, the calling over of the State Book with the Ledgers should be undertaken. early each day by himself and one of the chief officers, the latter taking the State Book. When, from the appoint two or more public officers, being members and resident in England, and also empowered them to sue and be sued in the name of one of such public officers, s. 9. The duties which this act imposes upon a public officer are the making out, verifying on oath, and delivering to the stamp office the several annual returns in the forms prescribed; these provisions applied only to banking companies established beyond sixty-five miles from London. The 3 and 4 Will. IV., c. 98, which enabled banking companies to establish themselves within sixty-five miles of London, did not confer upon them the power or privilege of suing or being sued in the name of a public officer. The 7 and 8 Vict., c. 113, s. 47, first conferred this power or privilege upon these banking companies, if established before the 6th of May, 1844, provided they made out and delivered, from time to time, to the Board of Inland Revenue, the returns required by the 7 Geo. IV., c. 46, and all the provisions of such act are to apply to the accounts or returns so made out and delivered by such companies, as if they had been originally included in the provisions of the 7 Geo. IV., c. 46; the 25 and 26 Vict., c. 89, s. 205. Third schedule, part II., although it repeals the 7 and 8 Vict., c. 113, expressly re-enacts the 47th section, and consequently banking companies carrying on business within sixty-five miles of London are bound to make these returns. The appointment of public officers by banking companies, formed under the pro- visions of the 7 and 8 Vict., c. 113, became altogether unnecessary on their obtaining charters of incorporation; neither are public officers required to be appointed by banking companies established under the Act of 1862, as on registration these companies become entitled to all the privileges of incorporated bodies, 25 and 26 Vict., c. 89, s. 18. The appointment of public officers, when required, is regulated by the terms of the deed of settle- ment of the company, and should generally be made by a deed. The appointment may be proved by a certified copy of the official return to the Stamp Office, or by the production of the instrument appointing him. Edward v. Buchanan, 3 B. and Ad. 788. Banking co-partnerships surren- dering their right to issue their own bank notes, by agreement with the INSPECTION. 205 magnitude of the business, this cannot be properly done, Branch Manager. then a list of the daily debit balances should be prepared for and looked over by him each morning. The Manager should not allow any of the other officers to sign or act for him, nor should any one not in the regular service of the Bank be allowed to assist in any of the offices without the previous sanction of Head Office. Nor without this sanction should he engage the services of any local lawyer, otherwise than for notarial purposes. as to Salaries. On the last business day of each month the salaries Arrangement should be passed to the credit of each of the staff, and any recommendations as to increase should be made annually, at the end of the year. In engaging juniors, this should only be done with the approbation of Head Office. The term understood is three years, the salary for the first year being £30, the second £40, and the third £50, with a commencing security of £1000. Should special aptitude and ability, however, be shown by the Bank of England, do not lose the privilege of suing or being sued in the name of their public officer.-27 and 28 Vict., c. 86." "A public officer may sue after the copartnership has suspended payment, and the establishment is kept open only for the purpose of winding-up. Davidson v. Cooper, II M. and W., 778. A copartnership having become insolvent and ceased to carry on business, the public officer instituted a suit in equity charging some of the directors with losses, by reason of unauthorised speculations in shipping, and of a fraudulent transaction by a deed of arrangement with a debtor to the company, praying relief in respect of all these matters, and to have the deed set aside. The suit was considered to have been properly instituted by the public officer, although the company had ceased to carry on business; that directors and trustees not charged with improper transactions or fraud need not be made parties to the suit; but the manager who, it appeared, was mixed up in these transactions, ought to be made a party; and that though there were several distinct transactions, they were properly comprised in a single suit. Harrison v. Brown, 5 De G. and S., 733. So, although a warrant of attorney has been given to trustees of the copartnership to secure a debt due to the copartnership, the judgment thereon can only be entered up in the name of the public officer.-Bell v. Fisk, 12 C. B., 493. -Bell v. Fisk, 12 C. B., 493. So the public officer is to sue on a breach of covenant with trustees of the copartnership to pay calls- Wills v. Sutherland, 4 Exch. 211—and, in general, is the only proper party to sue on all covenants in the deed of settlement, although the covenants are made with trustees. Chapman v. Milvain, 5 Exch., 61. "A public officer, in whose name any suit or action has been commenced, prosecuted, or defended, sustaining any loss, damages, costs, or charges, will be entitled to reimburse- ment out of the funds of the copartnership, or, in failure thereof, to contribution from the other members, as in a case of an ordinary partnership.—7 Geo. IV., c. 46, s. 14.' 1 ༈ ד 206 INSPECTION. Arrangement Junior, he may, before expiry of the term, be advanced as to Salaries. to the first of the succeeding grades, yielding £80 per annum, from which the path will be open to him of attaining, according to his merits and services, the highest posts, these yielding, in some of the more important Banks, between £2000 and £3000, or more, per annum-a very respectable income, when it is considered that a late Lord Chancellor, speaking of solicitors, expressed it as his opinion that none of them ought to be in receipt of a professional income of more than £500 per annum! There are, besides, all the advantages accruing, in some of the leading Banks, from retiring funds, and funds for the relief of the widows and children of officers. * Communica- tions. Overdrawing. Officers generally. Respecting anything out of the usual routine, and as regards all matters affecting the interests of the Bank, the Manager should communicate by special letter, addressed to the Manager-General; and he should under- stand that all letters addressed to an officer of the Bank, and not marked "private," will be opened in the absence of the latter. No officer should, of course, overdraw his account, without the express permission of Head Office. In their transactions with the Bank's constituents and the public, the officers should display the utmost courtesy *It might be worthy of consideration whether there should not now, also, be a general fund established upon a footing similar to that of some of the Government Services. This might the more readily be attempted from the similarity of the official work and arrangements that exist in most of the leading Banks of the country. And were the plan adopted of fixing an uniform scale of pay in connection with the chief appointments, a more certain basis would be afforded for regulating the fund and fixing and apportioning the allowances to be made. In the Bank of Scotland and the British Linen Company Bank there are, we understand, Annuity or Retiring Funds, and Widows' Funds, conducted on liberal principles. With reference to the last-named Scottish bank, it may not be uninteresting to note, that originally, as may be inferred from the first portion of its title, the company was established for the manufacture and sale of linen fabrics. It was formed for this purpose soon after the Rebellion of 1745; but, not meeting with success as a commercial undertaking, and finding that it would do more good by issuing notes "to traders and manufacturers than continuing traders and manufacturers themselves," they, in the year 1763, relinquished all trading operations, and confined themselves to banking in support of the general business and interests of the country. INSPECTION. 207 and attention, and, while under the immediate control Officers of the Manager, all should alike, with him, be considered generally. responsible to the Bank for the proper fulfilment and faithful discharge of their duties. The utmost secrecy should, of course, be maintained in connection with the clients' accounts, and all in the service of the Bank should abstain from taking any active part in politics, this, however, not interfering with their right of voting in accordance with their political convictions. By some of the Banks, three months' previous notice is expected before an officer severs his connection with the Bank; but this is waived when an arrangement can be made that will not inconvenience the Bank. In the higher class of Banks, when it is of marked advantage to the officer and not detrimental to the Bank, no obstacle whatever is placed in the way of his transferring his services to another Bank, though established in the same locality. Indeed, a properly-administered Bank has little to fear should any such step be adopted, and in such an institution the necessity of it is not likely to occur. Before bringing this portion of our subject to a close, Juniors. a few words of friendly advice may perhaps be proffered to the subalterns generally of the banking profession. To refer to their personal demeanour would be an act of supererogation on our part, as they have, of course, received the training and education of gentlemen. What we would more particularly urge upon their attention is the adoption, from the outset, of habits of application and regularity, and the evincement of strict, prompt, and willing obedience to the seniors of their respective offices— qualities by no means incompatible with a manly and independent character. The persevering, rapid, and accurate discharge of their duties, with a courteous and obliging disposition, and a willingness to extend their knowledge. as occasion offers, even at the risk of much personal 208 INSPECTION. niors. sacrifice and discomfort, will not only afford to our young friends a source of honest gratification and honourable reflection, but will the more rapidly pave the way to the acquisition of those distinctions after which they may be aspiring, and will, in the meanwhile, be the sure means of gaining them a favourable place in the' estimation of the higher dignitaries of the Bank. All this may be effected, on the other hand, without an obsequious or over- complaisant spirit, or an anxiety to seize every opportunity of officiously obtruding themselves into the good graces of their superiors in office. When disengaged from his official duties, the leisure of the young aspirant should, of course, be spent in the acquisition of every study that bears upon his profession— a profession which is not the "Royal," or easy one, that has been so erroneously supposed by many, and which will speedily be found out by such as have any real desire to gain advancement to its higher honours. Indeed, the variety of duties and subjects with which the finished Banker must be acquainted, the amount of general information expected from him, and his ability and capacity in the due discharge of matters more immediately connected with his own office, with that steadiness and tranquillity of mind and ready tact to cope with every emergency, render it necessary that he should, indeed, be "homo abundanti doctrina, et incredibili quadam varietate rerum et copia ;" and this enviable position can be best gained by a youth spent in well-directed study and unremitting application. "Whatsoever thy hand findeth to do, do it with thy might;" and the further words of the royal and inspired preacher should not be forgotten : Rejoice, O young man, in thy youth; and let thy heart cheer thee in the days of thy youth, and walk in the ways of thine heart, and in the sight of thine eyes: but know thou, that for all these things God will bring thee into judgment." And, "God requireth that which is past." (( INSPECTION. 209 "Fear God and keep His commandments, for this is the Juniors. whole duty of man. For God shall bring every work into judgment, with every secret thing, whether it be good, or whether it be evil.” And a greater has said: “Every idle word that men shall speak, they shall give account thereof in the day of judgment. For by thy words thou shalt be justified, and by thy words thou shalt be condemned." in connection Finally, with reference to inspection, it may be added Final Matters that besides the duties devolving, in the manner seen, with Inspec- upon the Inspector, he should, in connection with the tion. guarantees held on behalf of clients, make a periodical inspection of the whole of these, and at certain intervals. check off all the securities lodged, whether for advances or safe custody; and an occasional visit to the London Agents will be necessary, for the purpose of checking and ascertaining the sufficiency of any securities they may have occasion to hold temporarily, on behalf of the Bank. And half-yearly, the necessary inspection of the Certificates of Shares, and the entries in the Transfer Books and Share Ledgers, will also be made by him. It is hardly necessary to observe, that an efficient Auditor. inspection is the greatest safeguard of a Bank, and is a very different matter, indeed, from an audit, which only concerns itself with the figures presented to the Auditor; and in those instances in which an examination of the securities is undertaken by him, it is merely with the view of certifying that there are such held, no pretence being made to vouch for their sufficiency or value-points, in truth, quite beyond the scope of an Auditor, whose duties may be good enough in their way in necessitating the drawing out of a balance-sheet which he may have the opportunity of certifying as exhibiting, in his opinion, "a true and correct view of the Company's affairs, as shown by the Books of the Company." 1 1 N } } Pass Books and Return of 210 INSPECTION. Before taking leave of this part of our treatise, it may be Paid Vouchers. remarked that by many of the country banks far too little attention is paid to getting in the Pass Books of Account- holders for completion. This is a matter of very great importance, and once at least in each year all should be obtained for verification, and the cheques paid returned, a receipt being taken for them in the ledger, accompanied by an acknowledgment that the balance of the account has been found correct, as thus: "I acknowledge this account to be correct, and that the cheques thereon to this date have been delivered up to me. Date........ Signature..... >>* Indeed, the London plan of returning all paid vouchers. each time the Pass Book is written up and delivered, appears to be a very advisable one to follow, as not only relieving the Bank from accumulating a troublesome load of documents, but as at once fixing the accuracy of the account, and greatly facilitating the work of inspection. * By some of the Scottish Banks Docquet forms, in the following terms, are used :— have examined account with the to 31st December, 18..., and have found it correct, the balance at at that date being ... have received the vouchers of the account. Bank, Signature, Address, "} £ Date,..... وو دو "Please sign and return to Branch as soon as convenient." $ PART II. ORDINARY BANK DOCUMENTS. Documents. The following may be given as the ordinary forms and Ordinary Bank documents in daily use in banking practice. The more important documents, and those used only occasionally, or under special circumstances, will be considered in our third volume. For deposits on account of clients, there are the CREDIT or PAY IN forms, thus: PROVINCIAL BANK. Credits. CREDIT Bills, Cheques on other Towns, and Country Notes, as per list at back Bank of England Notes.. Sovereigns...... Half-Sovereigns Silver Copper...... Cheques on Yourselves Local Banks : "" "" By and on the back: ...£ ..£ .18.... & } } . 212 Credits. Bills Cheques on other Towns • Country Notes... ORDINARY BANK DOCUMENTS. £ S. d. WHEN Due. DAYS. DECIMALS. Another form of the Credit is as follows:- PROVINCIAL BANK. CREDIT. .18.... £ S. a. Maturity. Days. Decimals. Bank of England Notes Gold Silver and Copper Post-Office Orders Cheques on Bank... Cheques on other Banks. Bills as above By £ S. d. } ORDINARY BANK DOCUMENTS. 213 These documents should always be signed in the space Credits. in front, "By........ ...," by the person making the lodgment, and it is advisable, if time permit, that the requisite entry should be made by the Teller in his Cash Book, in the course of the transaction, the entry in the Pass Book being compared with that in his Cash Book, as well as with the Credit Voucher, before the Pass Book is handed back to the Client. The Pass Book should always be produced, but in some special instances, where this cannot be well done, a Book of Credit Forms is issued to the client for his use, the counterfoils of which are initialled by the Teller, as evidence of the amounts having been lodged. The Book may be thus framed: (Counterfoil.) PROVINCIAL BANK. PROVINCIAL BANK. Coin Bank of England Notes Sundries : .18... ...18... CREDIT. Sovereigns... Half-Sovereigns Silver.... Copper Bank of England Notes Sundries:- 1010 Teller's Initials......... By........ By some Banks, however, the following forms, loose, are used in connection with any depositor who may desire. to have a memorandum of the payment:- 1 Credits. វ 214 ORDINARY BANK DOCUMENTS. .... BANK. 18... The Party paying in will please to fill up this Memorandum, which is to be returned to him initialled by the Teller. CREDIT. on Bills, Cheques other Towns, and Country Notes...... As per list at back. Bank of England Notes Sovs......... Half-Sovs. Silver and Copper Cheques on yourselves "" "" Local Banks ... ... BANK. .18 .. MEMORANDUM of Receipt of £...... from By...... to whom the same is to be accounted for. At short intervals the Pass Book should be obtained, and the transactions duly entered in it from the ledger by the Ledger Clerk. The following Credit, in connection with the advices to the Banker's London Agents, may be found useful for official purposes, the totals being inserted opposite each item, the details appearing in the relative vouchers:- PROVINCIAL BANK. 18.... ACCEPTANCES DRAFTS.... PAYMENTS CREDIT LONDON AGENTS. ORDINARY BANK DOCUMENTS. 215 Accompanying the cash remittances between the Credits. Branches, and the Head Office and Branches, should be forms of particulars, as follows:- PROVINCIAL BANK. OFFICE. REMITTANCE. Bank of England Notes………….. ...£. Sovereigns Half Sovereigns Silver 18........ £ By the Bank of England the following is the form of credit used for Account-holders :- BANK OF ENGLAND BRANCH. LIVERPOOL, 18...... Place the amount as at foot to the Credit of... BANK NOTES GOLD....... SILVER DRAFTS... The Bank of Scotland's form is in this shape: PAY-IN-SLIP. THIS SLIP TO BE LEFT WITH THE CHECK CLERK. ..18...... Paid in to the Bank of Scotland the Sum of for the Credit of. Entd. £....... TELLER. By......... * 7 Credits. A 216 ORDINARY BANK DOCUMENTS. Some of the other Scottish Banks use the following form: Large Notes, ............ BANK. Small Notes, Gold, ...18...... Silver, PAID in on Account of Orders, the Sum of...... Sterling by the hands of £ £ Enta. Debits. The withdrawals on, and debits to, an account, should be by cheque, though, under special circumstances, they may be effected by letter, or by unstamped debit forms. When the withdrawal is made, or the remittance is requested by letter, this should be stamped, and treated as a cheque, the use of the unstamped debit forms being for periodical transfers or credits, or payments made in compliance with standing instructions, and they are also used for debiting an account with any small incidental charge that may have been incurred on behalf of the client. These debit forms may be in this shape:— 18... 1 Credit...... { f__ and debit the account of There is also the advice of acceptance form, which may be used as an advice cheque to the debit of the client, it being duly stamped and signed by him; or it may be used as an unstamped memorandum when cash is received, and the party retiring the bill has no account. The form may be in this shape:- ORDINARY BANK DOCUMENTS. 217 Advice of Acceptance payable at BANK, London. Advice Cheque. Drawer. Acceptor. When due. Amount. To the PROVINCIAL BANK. Please order payment of the above, and charge to account of 18... By some banks the date and currency of the bill are also introduced; but, as being simpler and giving less occasion to error in advising, it is preferable to have the column for maturity only. The regular cheque to bearer or order may be thus, in books of 30 (2/6), 60 (5/-), 120 (10/-), and 360 (£1 10/-), or any other size deemed most convenient. BEARER FORM. Bearer Cheque. (Counterfoil.) No. A.......... No. A………………………. .18...... 18... PROVINCIAL BANK. id. Stamp. To...... PAY...... or bearer • £............. (Counterfoil.) No. A.......... To........ £.............. ……..18….. Hours 10 to 3 o'clock, on Saturdays 10 to 12. £.............. London Agents :.. ORDER FORM. Head Office: No. A......... Branches. 18..... 1d. PROVINCIAL BANK. Stamp. PAY to or order Sub- Brauches. £. London Agents: Under **This cheque requires the indorsement of the payee. Order Cheque. 1 3 Cheques. 218 ORDINARY BANK DOCUMENTS. The words "on demand," before pay, and "the sum of,” after bearer or order, are sometimes introduced; and, of course, each bank has its own method of utilizing the space or border between the counterfoil and cheque. Within two or three forms from the end of each cheque book may be inserted the following request for a new book ;- (Counterfoil.) Cheque Request Form. Ordered by………………… by....... 18... TO PROVINCIAL BANK, BRANCH. Please supply new Cheque Book, containing.. Cheques, Cheques payable to and debit account. Name..... 18... Address... Special cheque forms are sometimes requested by account-holders, particularly joint-stock companies; these, of course, being supplied at the cost of the account-holder. Such special cheques may be drawn in the following form :- Special Cheques. (Counterfoil.) No. B.......... THE COMPANY LIMITED LIVERPOOL. No. B.......... To .18... PROVINCIAL BANK, LIVERPOOL. PAY...... For and on behalf of the........ Limited. £ ....18... 1d. Stamp. or order Company } Directors. Secretary. £ London Agents : On the inside cover of all the cheque books, it might be advisable to attach some such notice as the following:- J { } ORDINARY BANK DOCUMENTS. 219 "This book should be kept in a place of security, and, Instructions on Cheque in filling up the forms, care should be taken to write the Book. amount in words and figures as near the left hand as possible, so as to prevent the fraudulent introduction of any larger amount. << 'Application personally, or by form of request, near the end of this book, should be made when a new book is required." Government Formerly, a discount of 10d. in the £ was given by Former Government on the Id. cheque stamps, of which 6d. was Discount. allowed the Bank by the printers of the forms, the remaining 4d. being retained by them in compensation for the trouble in getting the forms stamped, expense of carriage, and also for loss of interest sustained in pre-paying the duty. There was also 10d. discount on Receipt Stamps; but, by the late Conservative Government, this allowance, in both instances, was first lowered and then abrogated. In the purchase of postage stamps, no discount was allowed. Assortment of Before being paid, all cheques will, of course, be carefully Paid Cheques- examined, and after being dealt with, they, along with the credit vouchers, should be properly assorted, those relating to each account being made up in a separate packet, the whole of the packets being kept, for facility of reference, in alphabetical order. &c. To promote cheque circulation, it may not be uninte- Bank of France, and its resting to mention that the Bank of France have "put Arrangement at the disposal of all persons having current accounts at as to Cheques the Bank, cheques direct or indirect, either to order or bearer, either payable where their account is open, or at one of our other offices." And further, in their report for 1880, it is stated, "These cheques, which are subject to a commission when they represent a simple deposit of funds, will, on the contrary, be delivered gratuitously when they are drawn against the proceeds of discounts or drafts on demand encashed by the Bank, and they will Bank of France, and its 220 ORDINARY BANK DOCUMENTS. be made payable in all our establishments indifferently. Arrangement The cheque will thus become a powerful and very as to Cheques, convenient means of exchange, which will simplify all &c. Drafts. transactions, and which will probably reduce, in considerable proportion, the need for the note circulation." Of the note circulation, it may be added, they “have put a large proportion of notes below the value of £20 at the disposition of the public, especially notes for £4, for which there is the greatest demand." And that as to the advances on securities, "We have considerably increased the number of securities upon which advances might be made, diminished the formalities, endeavoured, by granting new facilities, to realize an economy of time and trouble to the advantage of our borrowers, and we have decided to encash, free of cost, the coupons and interest due on the securities which they place with us as security." See the Report of the Operations of the Bank of France, and of its Branches, during the year 1880, as given in the BANKERS' MAGAZINE, Vol. 41, p. 714. With a more extended use of cheques and drafts, both the coin and note circulation would, no doubt, be greatly eased, as is the case in this country and in the United States of America. Preliminary to the issue of drafts, the following form should be filled up by the applicant :- PROVINCIAL BANK, WANTED DRAFT ON ...18... AS UNDER. Application Forms. £ S. d. Bank of England Notes...... Sovereigns... Half-Sovereigns.. Silver Copper Sundries. PAYEE. Currency. Amount. By....... ORDINARY BANK DOCUMENTS. 221 And this may be used, when stamped, as a debit to the Drafts. Application applicant's account, or when he has no account, as an Forms. unstamped advice memorandum. The form is, indeed, intended more for cash transactions with persons not having an account, the account-holder generally using his ordinary cheque, inserting after the payee's name, "by draft on By the Bank of Scotland, the following is the application form in use :— DRAFT SLIP. BANK OF SCOTLAND... ..188... WANTED DRAFT on ...for £....... Payable to..... £..... By....... ...Teller. *Such Drafts are paid after receipt of Advice. Of the drafts issued, the three following forms may be given :- I. DEMAND DRAFT ON LONDON. (Counterfoil.) No. ... Date. Payee.. No.......... PROVINCIAL BANK. - £......... Pounds 18... On demand pay to the Order of which charge to account of this Bank. Under For the PROVINCIAL BANK, Amount. To......... .BANK, LONDON. Initials of Signatory. Entd.... Demand on London. Drafts. After Date on London. On Country Agents. 222 ་ ¡ ORDINARY BANK DOCUMENTS. II. AFTER-DATE DRAFT ON LONDON. (Counterfoil.) No.......... No.......... PROVINCIAL BANK, Date....... ... £......... Pounds. ....18... Payee ......after date pay to the order of which charge to Currency. account of this Bank. £....... Amount. Initials of Signatory. Το For the PROVINCIAL BANK, BANK, LONDON. Entd.......... III. DRAFT ON COUNTRY AGENTS. (Counterfoil.) No.......... Date Payee. Drawee Amount. No.......... PROVINCIAL BANK. £.......... Pounds. ....18….. On demand pay to the order of which charge to account of this Bank. Under For the PROVINCIAL BANK. To Stamp Duty. Initials of Signatory. Entd....... this last form having all but superseded the Letter of Credit, as to which see our previous volume, p. 357. For official purposes, however, the form is sometimes designated a Letter of Credit. With reference to the whole of the above forms, the stamp duty may be paid by composition when it is found more profitable to do so than by using the id. and 1 } ORDINARY BANK DOCUMENTS. 223 ad valorem stamps, as to the scale of which see pages 91 Drafts. and 92 of our previous volume. Generally, however, the Stamp Duty. demand drafts are issued with the Id. impressed stamp, and the duty is compounded for on the after-date drafts; but, of course, the arrangement altogether depends on the number and amounts of the drafts issued. With regard to drafts issued upon the Bank, before Advice. payment of these reference will, of course, be made to the Advice Received Book, the keeper of which should duly initial the draft, as evidence of its regularity. Only in very exceptional cases, and upon the Manager being perfectly satisfied as to his safety in paying, should a draft be honoured of which advice has not been received, due intimation of the presentation and payment being given by first post to the issuing bank. Bankers' Drafts have been the subject of enactments at different periods, and the following are now in force relating to them :-By section 1 of 9 George IV., c. 23, passed 19th June, 1828, it is enacted that all persons carrying on the business of Bankers in England, except within the City of London, or within three miles thereof, having first duly obtained a license for that purpose, and given security by bond, may issue, on unstamped paper, promissory notes for any sum of money amounting to £5 or upwards, expressed to be payable to the bearer on demand, or to order, at any period not exceeding seven days after sight; or bills of exchange expressed to be payable to order, on demand, or at any period not exceeding seven days after sight, or twenty-one days after date; provided such bills of exchange be drawn upon any banker in London, Westminster, or the borough of Southwark; or provided such bills be drawn by any banker or bankers at any place where they are licensed to issue such bills and notes, upon themselves, payable at any other place where they shall also be duly licensed. In Scotland the power to compound is regulated by sec. 7 Enactments. } 1 ¿ { Drafts. Enactments. Scotland. Ireland. 224 ORDINARY BANK DOCUMENTS. * of 16 and 17 Vic., c. 63, passed 4th August, 1853. And in Ireland, by sec. 1 of 27 and 28 Vict., c. 86, passed 29tlı July, 1864, made perpetual by the Stamp Duty Composition, Ireland, Act, 1867, 30 and 31 Vict., c. 89. † The 3 and 4 William IV., c. 83, passed 26th August, 1833, enacts, s. 2, that it shall be lawful for any body, politic or corporate, exceeding the number of six persons, and carrying on business as Bankers, to make any bill of * The following are the terms of the section :-" And whereas, under and by virtue of certain Acts of Parliament now in force, the Governor and Company of the Bank of Scotland, and the Royal Bank of Scotland, and the British Linen Company in Scotland, are respectively authorised and empowered to make, and issue, and reissue their promissory notes, payable to bearer on demand, on unstamped paper, giving security, and keeping and producing true accounts of all the notes so issued by them respectively, and accounting for and paying the stamp duties payable in respect of such notes: And whereas it is expedient to authorise and empower the Commissioners of Her Majesty's Treasury to compound with the said banks, as well as all bankers in Scotland, for the stamp duties on their promissory notes payable to bearer on demand, as well as for stamps payable on their bills of exchange; it shall be lawful for the Commissioners of Her Majesty's Treasury for the time being, or any three of them, and they are hereby authorised and empowered to compound and agree with the said Governor and Company of the Bank of Scotland, and the Royal Bank of Scotland, and the British Linen Company in Scotland, and all or any other Bankers in Scotland, or elsewhere respectively, for a composition in lieu of the stamp duties payable on the promissory notes of the said banks and bankers respectively, payable to the bearer on demand, as well as for stamps payable on their bills of exchange; and such composition shall be made on such terms and conditions, and with such security for the payment of the same, and for keeping, producing, and rendering of such accounts as the said last-mentioned Commissioners may deem to be proper in that behalf; and upon such composition being entered into by such banks. and bankers respectively, it shall be lawful for them to issue and re-issue all notes, and to draw all such bills for which such composition shall have been made on unstamped paper, anything in any Act contained to the contrary notwithstanding. "It shall be lawful for + Sec. 1 of 27 and 28 Vict., c. 86, is as follows:- the Commissioners of Her Majesty's Treasury, and they are hereby authorised and empowered to compound and agree with any banker in Ireland for a composition in lieu of the stamp duties payable on the bank post bills to be made or drawn by such banker at any time during the period of three years. from the passing of this Act, for any sum of money amounting to five pounds or upwards, and such composition shall be made on the like terms and conditions, and with such security as the said Commissioners are, by the said Act, empowered to require in the case of compounding for the stamp duties on bills of exchange; and upon such composition being entered into by such banker, it shall be lawful for him, during the period aforesaid, to make, draw, and issue all such bank post bills, for which composition shall have been made, on unstamped paper, anything in any Act contained to the contrary notwithstanding;" sec. 1 of 30 and 31 Vict., c. 89, enacting that "The powers conferred by the said Act of the session of the twenty-seventh and twenty-eighth years of the reign of Her present Majesty (c. 86) shall be perpetual, and the said Act shall be construed as if the words, 'during the period of three years from the passing of this Act,' had been omitted therefrom.' + 1 ORDINARY BANK DOCUMENTS. 225 Enactments. exchange, or promissory note of such corporation, payable Drafts. in London by any agent of such corporation in London; or to draw any bill of exchange or promissory note upon any such agent in London, payable on demand, or otherwise, in London, and for any less amount than £50, notwith- standing the Act 7 Geo. IV., c. 46, passed 26th May, 1826, and which, amongst its other provisions, prohibited the drawing upon London, or any place not exceeding the distance of 65 miles from London, any bill of exchange payable on demand, or for a less amount than £50. By the Act of 7 and 8 Vict., c. 32, being “An Act to regulate the issue of Bank notes, and for giving to the Governor and Company of the Bank of England certain privileges for a limited period," passed 19th July, 1844, and usually known as the Bank Charter Act, and which still regulates the note issues of England, it is enacted, s. 26, that "it shall be lawful for any society or company, or any persons in partnership, though exceeding six in number, carrying on the business of banking in London, or within sixty-five miles thereof, to draw, accept, or indorse bills of exchange not being payable to bearer on demand,” notwithstanding the 3 and 4 William IV., c. 98, being “An Act for giving to the Corporation of the Governor and Com- pany of the Bank of England certain privileges for a limited period, under certain conditions," passed 29th August, 1833, and which, by its third section, enacted that banks with more than six partners might carry on business in London, or within 65 miles thereof, provided that they did not "borrow, owe, or take up, in England, any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof." By sec. 5 of 8 and 9 Vict., c. 76, passed 4th August, 1845, provision is made for recovery and application of penalties under the above-mentioned Act of 7 and 8 Vict., c. 32. It may be observed that several years after the establishment of the Bank of England, by 5 and 6 William O ļ > 1 Drafts. 226 ORDINARY BANK DOCUMENTS. and Mary, c. 20, A.D. 1694, various Acts were passed Enactments. conferring exclusive privileges in its favour, and by the 6 Anne, c. 22, s. 9, passed in 1708, it was enacted "that during the continuance of the Governor and Company of the Bank of England, it shall not be lawful for any body politic or corporate whatsoever, or for any other persons whatsoever, united, or to be united, in covenants or partnerships, exceeding the number of six persons, in England, to borrow, owe, or take up any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof." This Act, the restrictions in which were held as not applying to commercial concerns, but only to Banks, with certain other restraining enactments, such as 15 George II., c. 13, s. 5; 21 George III., c. 30, s. 12; 39 and 40 George III., c. 28, s. 15, continued in 'force until the passing of the 7 George IV., c. 46, supra, when they were partially repealed in so far as to admit the formation of banks, for the issue of bills or notes, with more than six partners, at any distance exceeding 65 miles from London, provided these banks have no branches in London, or at any place within 65 miles of London, and that every person composing the bank, shall be liable, s. I; and section 2 provides that such banks may draw bills amounting to £50 or upwards, payable either in London or elsewhere, at any period after date or sight. In 1833, however, the 3 and 4 William IV., c. 83, ante p. 224, was passed, removing, in the manner seen, the restraining provisions in the preceding enactment, and by 3 and 4 William IV., c. 98, supra, all doubts were removed as to whether banks of deposit, with more than six partners, could be established in London, or within 65 miles thereof, the privileges of the Bank of England really prohibiting the formation of banks of issue only. Indeed, by the law officers of the Crown, it was considered that banks, provided they did not issue their own notes payable to bearer, might have been, at any time, established in any part of the kingdom. i 1 L * ORDINARY BANK DOCUMENTS. 227 It is owing to the former restrictions above seen, and to Drafts. the relative decisions of the Courts, that the circumstance Enactments. is to be accounted for of some of the old country Bankers' drafts, upon their London correspondents, being drawn with the request to pay "without acceptance." Of the cases deciding that no bank in London, consisting of more than six persons, could accept bills of exchange within six months' date without infringing the privileges of the Bank of England, see Booth, Baronet, and others v. the Bank of England, 6 Bing. N. C., 415, 1 Scott, N. R., 701, S. C.; and Bank of England v. Anderson and others, 4 Scott, 50, Keen, 328, S. C. Much interesting matter will be found in this latter case, which is reported at great length, pages 589 to 667, in volume 3rd of Bingham's New Cases, from Trinity term, 6 William IV., 1836, to Trinity term, 7 William IV., 1837. Since the passing, on 17th August, 1857, of 20 and 21 Vict., c. 49, banking partnerships of ten persons may be formed "in the same manner and upon the same conditions, in all respects, as any company, of not more than six persons, could, before the passing of this Act, have tarried on such business," sec. 12; re-enacted by the Companies' Act, 1862, 25 and 26 Vict., c. 89, 7th August, 1862, second part of third schedule, and the fourth section of which Act, affecting the point is as follows: "no company, association, or partnership, consisting of more than ten persons, shall be formed, after the commencement of this Act [2nd November, 1862,], for the purpose of carrying on the business of banking, unless it is registered as a Company under this Act, or is formed in pursuance of some other Act of Parliament, or of Letters Patent. By section 47 of this statute, "a promissory note, or bill Signature. of exchange, shall be deemed to have been made, accepted, or indorsed on behalf of any company under this Act, if made, accepted, or indorsed in the name of the company by any person acting under the authority of the company; or if made, accepted, or indorsed by or on behalf, or on account of, the company, by any person acting under the ર : Drafts. Licenses. 228 ORDINARY BANK DOCUMENTS. authority of the company." By section 3 of 9 Geo. IV., c. 23, ante p. 223, it is provided that not more than four licenses need be taken by the bank in England which issues such notes or bills, however great its number or places of issue may be, that after taking out three distinct licenses. for three of such places, the bank shall be entitled to have all the rest of the places included in a fourth license; but by section 22 of 7 and 8 Vict., c. 32, ante p. 225, it is enacted that every banker liable by law to take out a license to authorise the issuing of notes or bills, shall take out a separate and distinct license for every town or place at which he shall, by himself or his agent, issue any such bills or notes, provided that no banker who, on the 6th May, 1844, had four licences then in force for issuing notes or bills at more than four places, is to be required to take out more than four licenses for the same places. The cost of each license is £30, and as to its date and termination, it is provided by section 4 of 9 Geo., supra, that if granted between the 10th October and 11th November, it is to be dated 11th October; if at any other time, to be dated when granted, and to continue in force, notwithstanding any alteration in the co-partnership of persons to whom granted, until the 10th October following. Besides obtaining this, the Bank must give its bond to keep a regular account of all the unstamped notes and bills issued or drawn, with the amounts and dates; and of all the notes cancelled, and bills paid, with the dates of cancelling and payment; and of the amount in circulation on a given day, Saturday, in every week; and to deliver, half-yearly, within fourteen days after 1st January and 1st July, an account of the amount or value of such notes and bills in circulation, and pay a composition at the rate of 3s. 6d. for every £100, and 3s. 6d. for every fractional part of £100 of the average amount. The following are the Forms of the Account or Return and Letter of Advice now in use, the Return being a specimen one for the half-year ending 31st December, 1881- 1 X محمد ORDINARY BANK DOCUMENTS. 9 GEORGE IV., C. 23. 229 Drafts HALF-YEARLY RETURN OF UNSTAMPED PROMISSORY Half-yearly NOTES AND BILLS OF EXCHANGE. ...BANK. An account of the amount or value of all the Unstamped Promissory Notes and Bills of Exchange of.... of ... Bankers, issued under the provisions of 9 Geo. IV., c. 23, and in circulation on Saturday in every week, for the half-year preceding the 1st day of January, 1882, together with the average amount or value thereof, according to the said account. Date. 1881. July 2 ,, 9 16 23 30 Aug. 6 "1 13 20 27 Sept. 3 >> Oct. ,, >> ΙΟ 17 24 I 8 15 22 >> " 29 Nov. 5 33 دو I 2 19 26 Dec. 3 ΙΟ > "" " 17 24 3I Amount of Bank Notes in circulation. Notes 27) Average...£ Amount of Notes payable to Order and Bills of Exchange in circulation. Any Note payable to Order and Bill of Exchange, should be included in the the amount shown for each Saturday from the date of issue to the date of payment. Any Note payable to Order, and Bills of Exchange, which shall be both issued and paid between one Saturday and the succeeding one, should be included in the amount in circulation on the Saturday next after the day of issuing. This account, which should include the issues at all the places of business, must be verified by the Oath or Affir- mation of the Banker, or one of the Bankers or of the Cashier, Accountant, or Chief Clerk of the Bank; and it should be sent by Post addressed to the Commissioners of Inland Revenue, and marked on the outside, “Bankers' Return," The Duty, which is 3s. 6d. for every £100, or fractional part of £100, of the Half-yearly Average, should be trans- ferred to the credit of the Receiver- General of Inland Revenue at the Bank of England, within 14 days after the 1st of January, 1882, and advice thereof should be given in the accompanying form. NOTE. The Return will not be accepted if it be verified by any other Officer of the Bank than those above named. DUTY £ being the Banker or Bankers, or the Cashier, Accountant, or Chief Clerk of the above-named Bank, maketh Oath, and saith, that the aforegoing is a just and true Account, to the best of the knowledge and belief of this deponent, of the amount or value of all Unstamped Promissory Notes and Bills of Exchange in circulation on Saturday in every week, from the 2nd of July, 1881, to the 31st December, 1881, both days inclusive, together with the Average Amount of such Notes and Bills of Exchange so in circulation according to such Account. Sworn before me, this at Signature of Deponent. day of January, 1882, in the County of Justice of the Peace for the County of * Christian and Surname to be inserted at full length. Return. } # 230 ORDINARY BANK DOCUMENTS. Drafts. LETTER OF ADVICE. Relative Advice. BANKERS' COMPOSITION for the half-year ended …….. 18…….. BANK, 18.... SIR, We beg leave to advise that the sum of £...... has this day been transferred to the Credit of the Receiver- General of Inland Revenue, at the Bank of England. We are, Sir, Your obedient Servants, The Accountant and Comptroller- General of Inland Revenue. And addressed :- On Her Majesty's Service. THE ACCOUNTANT AND COMPTROLLER-GENERAL, INLAND REVENUE OFFICE, SOMERSET HOUSE, LONDON, W.C. Demand Bearer Notes. Former Returns. Present Returns. Bankers' Advice Letter. Banks issuing promissory notes, payable to bearer on demand, were enjoined by section 1, 3 and 4 William IV., c. 83, ante pp. 224, 226, to keep weekly accounts and make quarterly returns of their notes in circulation, under penalties of £500 and £100 for default; then by section I of 4 and 5 Vict., c. 50, 21st June, 1841, the returns were to be made every four weeks, under penalty of £50 for default; and now, by section 18 of 7 and 8 Vict., c. 32, ante pp. 225, 228, the returns are to be made weekly, and at the end of each period of four weeks "every such banker shall annex to such account the average amount of bank notes of such banker in circulation during the said four weeks, and also the amount of bank notes which such banker is authorized to issue under the provisions of this ORDINARY BANK DOCUMENTS. 231 Bearer Notes. Act,” the return to be made in the subjoined form; "and Demand so much of the said return as states the weekly average Present amount of the notes of such bank, shall be published by Returns. the said Commissioners in the next succeeding LONDON GAZETTE, in which the same may be conveniently inserted; and if any such banker shall neglect or refuse to render any such account in the form and at the time required by this Act, or shall, at any time, render a false account, such banker shall forfeit the sum of £100 for every such offence." Name and Title as set forth in the License, Name of the Firm, Insert Head Office, or principal Place of Issue, BANK. .FIRM. PLACE. An Account pursuant to the Act 7 and 8 Victoria, Cap. 32, of the Notes of the said Bank in Circulation during the Week ending Saturday, the ......... day of 18.... NOTE.-This must an account of the Monday.... Tuesday.. be Wednesday Circulation, including the Thursday Branches. Friday Saturday 61 Average of the Week,—£ To be annexed to this Account at the end of each period of Four Weeks :- Amount of Notes authorized by Law…………………..£ Average Amount in Circulation during the Four Weeks ending as above I, being. }£. do hereby Certify that the above is a true Account of the Notes of the said Bank in Circulation during the Week above written. Dated the...... (Signed)…………… ...day of……….. ..18.... Demand Bearer Notes. Stamp Duty. 232 ORDINARY BANK DOCUMENTS. We have seen, p. 92, n., previous volume, that notes. which have been issued duly stamped, or issued unstamped, by a banker duly licensed, or otherwise authorized to issue unstamped bank notes, may be re-issued without additional stamp duty. When not compounded for, the duty is according to the following scale: 0 0 5 O "For money not exceeding £1. Exceeding £1 and not exceeding £2... o O IO ") £2 £5... O I 3 £5 >> £10... O I 9 "" £10. £20... 0 2 0 >> >> £20 £30... 0 3 0 £30 £50 £50... O 5 O £100... 0 8 6" "" Penalty. Prohibition of Issue under £5. Scotland. Ireland. Deposit Receipt. When issued without duty, or without duty being compounded for, a penalty of £50 is incurred, and "if any person receives or takes any such bank note in payment, or as a security, knowing the same to have been issued unstamped, contrary to law, he shall forfeit the sum of £20.” The issue of bank notes under £5, payable to bearer on demand, was prohibited after 5th April, 1829, by section 3 of 7 Geo. IV., c. 6, passed 22nd March, 1826. In Scotland, the license to bankers is regulated by 55 Geo. III., c. 184, passed 11th July, 1815; and the note issues are regulated by 8 and 9 Vict., c. 38, passed 21st July, 1845. In Ireland, the license is regulated by 9 Geo. IV., c. 80, passed 25th July, 1828; and the note issues by 8 and 9 Vict., c. 37, passed 21st July, 1845. The Deposit Receipt was fully considered in our previous volume; and we shall here only further give a Form of the document as used by the branches of some of the London Banks, followed by Forms used by some of the Scottish Banks: 1 NOT TRANSFERABLE. ORDINARY BANK DOCUMENTS. 233 No.......... BANKING Co. Deposit £ Receipt. RECEIVED from..... sum of .... to the Credit of Deposit Account with the ....the ..sterling of withdrawal. Entd. Banking Company, subject to 14 days' notice Manager. Accountant. This Deposit Receipt to be given up on withdrawal of the whole or any part of the Deposit. By some of the Scottish Banks the following Application Form is used: DEPOSIT RECEIPT SLIP. .BANK,... .18...... WANTED DEPOSIT RECEIPT in name of.. for £ By..... £........... Teller. *The exact Name, Surname, and Address to be inserted. The form of Receipt being :- This Receipt to be produced when any payment is to be made. RECEIVED from £100 Sterling. No......... of to Bank. Entd .. BANK, ... 18... One Hundred Pounds Sterling, Credit in Deposit Receipt with the Accountant. Manager. 曩 ​Deposit In the event of the loss of a draft or deposit receipt, Loss of Draft, &c., issued by the Bank, payment should only be made Receipt, &c. upon the following letter of guarantee and indemnity being signed by the owner and his guarantor or guarantors :- . 1 1 2 * } ! 234 ORDINARY BANK DOCUMENTS. Loss of Draft, To THE PROVINCIAL Bank, Deposit Receipt, &c. Indemnity. Gentlemen, .18.... I, the undersigned …………………, having lost or mislaid and I the instrument described as under, and whereas, you have, not- withstanding the want of the said instrument, made payment to me of its amount, therefore, I, the said [or we], ... hereby oblige ourselves, jointly and severally, to guarantee and indemnify you against all claims, questions, losses, damages, charges, and expenses, which may be raised against or incurred by you, in consequence of such payment, or, of the payment by you of the said instrument by mistake or oversight; and further, I, the said hereby undertake to duly deliver to you the said instrument in the event of its being recovered or coming into my possession. We are, Gentlemen, Your most obedient servants, £ Description. Amount. Received the above-mentioned amount of... Stamp. Bills Discounted. In the first instance, however, notice of the loss, with a report on the responsibility of the parties, should be furnished to Head Office. Of Bills, it may be necessary in some instances, when these are discounted, to use the following Form, for the party for whom they are discounted :- For... { ORDINARY BANK DOCUMENTS. PROVINCIAL BANK. BILLS DISCOUNTED 235 188... Acceptor. Amount. Maturity. No. of Days. Discount. Rate. } Bills Discounted.. When not passed to account, add :— COMMISSION POSTAGE £ "" "" To each bill forwarded Head Office should be attached Bills to Head the memorandum :— "Amount Current between Drawer and Acceptor including this Bill, £ >> Office. On bills payable otherwise than in London, should be Country Bills. attached, to the upper left-hand corner, a conspicuously- coloured notice :- COUNTRY No........ Place......... BILL. Collection And with reference to bills received for collection, a Bills for notice like the following should be left when the drawee Notice. or acceptor is absent:- } 1 2 / .. ? \ Bills for Collection Notice. Bills Returned 236 To...... A Bill for £ ORDINARY BANK DOCUMENTS. PROVINCIAL BANK. drawn upon you by..... "" "" lies here, and will be returned if not taken up before o'clock. .18.... For bills returned by the Bank's London Agents, the Head Office, following should be used for transmission to Head Office:- Notice to PROVINCIAL BANK. BILLS RETURNED BY LONDON AGENTS TO.. BRANCH. of Bill. Number Acceptor. Domicile. Maturity. Amount. When Returned. Answer. To whom charged. Notices of Dishonour. Returning Unpaid Cheques. For the various Forms used in cases of dishonour, reference may be made to our previous volume, index, "Notices of Dishonour." In connection with cheques on other banks received. from an account-holder, and returned unpaid, these should be sent to him by letter, as follows :— To...... Dear Sir, PROVINCIAL BANK. …..18………….. We return, unpaid to your debit, with answer attached, Cheque on. from you on your Cheque. • Bank for £....………………….received and for which please forward us Yours faithfully, Manager. ORDINARY BANK DOCUMENTS. 237 If the cheque of an account-holder, received through the Returning Unpaid clearing house, be returned unpaid, the following Form Cheques. may be used: PROVINCIAL BANK. To...... Bank, Gentlemen, attached, We regret to enclose, unpaid, with answer .....'s Cheque for £.... this morning through the Clearing-House. received • Your most obedient Servant, Manager. If the cheque be direct for credit, the form may in some instances be simply: .18... To....... The Provincial Bank return enclosed unpaid Cheque for £......... ..........'s Answer :- In remitting to Bank correspondents, the following form Remitting. may be used :— PROVINCIAL BANK, ....18... To...... Dear Sirs, Bank, We enclose as under, for our credit, receipt of which please acknowledge: } { Yours faithfully, Manager. i ► 4 } Remitting. 238 h ORDINARY BANK DOCUMENTS. Or, PROVINCIAL BANK, ..18... To...... Dear Sirs, Bank, We enclose for credit of this Branch in account with our Head Office, Please acknowledge receipt. Yours faithfully, Manager. Where the remittance letters are very numerous, the following Form, to save signing, may be used:— To...... Bank, ....18….. The Provincial Bank beg to enclose the undermentioned for their credit, and request the favour of an acknowledgment:- £ If from a sub-branch opened once or twice a week :- 18... To ..... Bank, The Provincial Bank beg to enclose for credit of account with Head Office. An acknowledgment to arent Branch] will oblige. ..£......... ... Branch [naming the 1 1 * } ORDINARY BANK DOCUMENTS. 239 By the Bank of Liverpool the following Form, for Remitting. remittance purposes, is used:- "Liverpool, "The Bank of Liverpool enclose, for their credit with ....18... 66 £ Bank £ "Should the address on any cash order sent for collection be outside the usual boundary for presentation, application for payment may be made by letter, and the cash order held over for one day before it is returned." In remitting bills not quite due to a place where the Bank has no regular correspondent, and a draft in return be requested, instead of payment in London, the following Form may be used :— PROVINCIAL BANK, ..18... To Bank. Gentlemen, We beg to enclose bill due..... amounting to £....... for the favour of collection and remittance of proceeds to us by demand draft on London, deducting your usual commission. The favour of an acknowledgment will oblige Your most obedient Servant, ... Manager. 1 と ​+ { 1 Remitting, &c. } } } 240 ORDINARY BANK DOCUMents. In remitting proceeds of bill received by the Bank, similarly for collection, the following Form may be used:- PROVINCIAL BANK. To.... Bank, ...18... Gentlemen, for £...... We beg to enclose demand draft on London, being proceeds, less % commission, 嘗 ​of bill received in your favour of Your most obedient Servant, Manager. Where there is daily, or very frequent, communication with a bank correspondent, a Form such as follows may be used PROVINCIAL BANK. To .... Bank, Dear Sirs, We wrote you on…….. ....18….. and have received your favour of....... We enclose for credit sundries as undernoted, receipt of which please acknowledge :- Yours faithfully, Manager. Some banks use the following Form for enclosures sent for credit or acceptance, &c. :— To Bank, Bank, ..18... Gentlemen, We beg to enclose for favour of Your most obedient Servant, Manager. · ORDINARY BANK DOCUMENTS. 241 In forwarding for acceptance, the following form may Forwarding be used:- for Acceptance. To....... .BANK. 18.... The Provincial Bank beg to enclose the undermentioned bill, for favour of presentation for acceptance and return :- In forwarding a bill for acceptance to banks, who are not regular correspondents, the following form may be used :- PROVINCIAL BANK, 爱 ​To BANK, …....18... Gentlemen, We beg to enclose bill, as undermentioned, for favour of presentation for acceptance, and return in accompanying stamped envelope, and trusting you will excuse the trouble occasioned, We are, Gentlemen, Your most obedient Servants, Manager. No. Drawee. Maturity. Amount. Inack nowledging remittances, the following Forms may be used :- Acknowledg- ing. PROVINCIAL BANK, To.. ...BANK, .18.... Dear Sirs, We have received your letter of with a > remittance £ , for your credit, And remain, Yours faithfully, Manager. Р 242 1 Acknowledg- ing. * ORDINARY BANK DOCUMENTS. Or, Debiting and Crediting. We have received your letter of........., enclosing amounting to £, for credit of your account. £.......... Or, Yours, &c. We beg to acknowledge receipt of your favour of.............. enclosing for your credit sundries:- Yours, &c. But a very useful form, adapted to both sending and receiving remittances, and to debit and credit transactions, and saving a great deal of trouble, is now very generally used by many of the banks. The form is thus framed :— To......... .BANK, ......18... Paying over. Gentlemen, We debit and credit you as under : DEBIT. Your most obedient Servant, For the..... CREDIT. Bank, .Manager. In remitting for payment in London, this being generally confined to banks with whom accounts are not kept, the following forms are in use:- To....... Bank, Gentlemen, to... Bank, ..18... We beg to enclose for favour of payment London, for the credit of this bank :- Your most obedient Servant, Manager. 3 ORDINARY BANK DOCUMENTS. 243 Or, Paying over, To ... Bank, From the ..... Bank, for favour of payment to..... London: ...£ ..18... Or when the remitting bank has an office in London :- To • The London : Bank, .18... Bank enclose for the favour of payment in £ In advising payments received on account of another Advising. bank's clients, these payments having been the subject of previous arrangement, the following forms are in use:- To Bank, BANK, ...18... Gentlemen, You are credited £………….. on account of ...... by Your most obedient Servant, ... Manager. Or, We credit you in Head Office account : £............. £........ for per Yours, &c. Or, We credit your account: o/a "" ,, "" per وو "" Yours, &c. • 1 | Advising. + 244 ORDINARY BANK DOCUMENTS. If no account be kept with the bank, for whom such payments are received, the following form may be used:- THE PROVINCIAL BANK, To ..... Bank. .18... , Gentlemen, We have received from with you the sum of for the account of £..........., which amount, less 1/16 % commission, as arranged, we have advised to your credit with Your most obedient Servant, London. Manager. Where it is necessary to advise a client of payments of this nature received, the following form may be used:- THE PROVINCIAL BANK CREDIT... received from..... Bank. in.. ..18…….. ..£ per.... .Manager. In intimating to the drawee the issue of drafts, the following forms are in use:- Gentlemen, BANK, 18.... We beg to advise particulars of drafts granted on you to-day at this office, which please honour. To...... .Bank, Your most obedient Servant, Manager. No. In whose favour. Amount. $ ORDINARY BANK DOCUMENTS. 245 Or, Advising. .BANK, To.................. Bank, …..18….. We beg to advise having this day drawn upon you as under: No. Payee. Yours faithfully, Amount. Manager. Subscriptions. In receiving Subscriptions to Funds, when special forms Owning of receipts are not provided, the following acknowledgment may be given :- Sir, PROVINCIAL BANK, THE FUND. ...18... We beg to acknowledge receipt of your favour of ……….. enclosing.... amounting to £......... being your Subscription to the above-named Fund for year Your most obedient servant, .... Manager. When necessary, as it sometimes is, to apply by post, Applying for for the signatures of Account-holders, though the personal Signatures. attendance of the latter is preferable and always expected, the following form may be used :— To....... PROVINCIAL Bank, ...18... The favour of your inserting your signature, occupation, and address, in the annexed form, and returning it for our Signature Book, will oblige, Signature Occupation... Address Yours faithfully, Manager. Memorandum. 246 ORDINARY BANK DOCUMENTS. Only occasionally, and for minor purposes, and chiefly with the Branches, will be used the following:- From MEMORANDUM. To THE PROVINCIAL Bank, ...18... Post Card. Letter and Lists to London Agents And for acknowledgment purposes merely, and use only with the Branches and Bank correspondents, will be the form of Post Card, as follows:- No. A .... letter of POST CARD. The Provincial Bank beg to acknowledge receipt of your Compa Со · with contents as stated. the initials of the officer comparing being adhibited. ..18... The regular daily communication with the London Agents will consist of the Letter; and the Remittance, Country Clearing Cheque, and Advice of Acceptance Payment and Draft Lists, thus:- I. THE LETTER. Letter. PROVINCIAL BANK. To .... Bank, London. 18... Dear Sirs, We wrote you on . and have since received your favour of same date, with contents as stated. We now enclose- Remittance, value ......£ and .. : : : : -£ } t ORDINARY BANK DOCUMENTS. Country Cheques for Clearing…………........£ And Advice of Acceptances, Payments, and Drafts... as per accompanying relative Lists. Also bills for acceptance and return :— And bills for negotiation :- £ 247 Letter, and Lists to London Agents. Letter. We are, &c. the intervening space at the end, and frequently the succeeding page or pages, being devoted to other points, infinite in variety, upon which the country banker has daily to communicate with his London agents. II. REMITTANCE TO FOR CREDIT OF PROVINCIAL BANK, £ BANK, 18... BILLS. Sundries. West End Sundries. Domicile. Due. Amount. COUPONS. TOTALS. NOTES. Sundries.... W. E. Sundries Bills.......... Coupons Notes £ Remittance List. 1 . A 茹 ​1 } Remittance List. 248 ORDINARY BANK DOCUMENTS. This being followed, when large special bill remittances are made, by form :— Country Clearing Cheque List. III. REMITTANCE TO BANK, ..18.... Domicile. Due. Amount. FOR CREDIT OF PROVINCIAL BANK, Domicile. Due. Amount. No. Total...£ IV COUNTRY CHEQUES FOR CLEARING TO BANK, FOR CREDIT OF PROVINCIAL BANK, 18... DRAWEE. LONDON AGENT. AMOUNT. Carry forward.. £ CLEARING CHEQUES FROM PROVINCIAL BANK, DRAWEE. LONDON AGENT. Brought forward…..£ Total...£ ....18... AMOUNT. } ORDINARY BANK DOCUMENTS. 249 Advice List. V. ADVICE OF ACCEPTANCES, PAYMENTS, AND DRAFTS, TO TO DEBIT OF PROVINCIAL BANK, ACCEPTANCES TO BE RETIRED :- Acceptor. Drawer. PAYMENTS TO BE MADE :- To .18.... .....BANK. Domicile. Due. Amount. On Account of On Application to From DRAFTS SINCE LAST ADVICE :— No. Date. A Payee. Currency. Due. from London From the London Agents there will be their daily letter, Letter, &c., which, when to Head Office, should be accompanied by a Agents. separate Cash List, comprising the advices to the Branches, as well as to Head Office; and there will also, when the transactions are very numerous, be the Cash Account, } 1 · ? Letter, &c. from London Agents 250 ORDINARY BANK DOCUMENTS. which, however, in the case of the smaller country banks, is rendered to them only once or twice a week. There will also be a List, with the cheques for payment, presented through the clearing of same day, which list, in the event of any inaccuracy, is returned with the necessary corrections. Unpaid cheques crossed with the name of a country Bank, or Branch of a London Bank, are returned direct, and the particulars are advised to the London Agents, who will duly give credit for the amounts in the Cash Lists. The daily letter from the London Agents will be in these terms :- To the Provincial Bank, London, E.C., .. 18... Dear Sirs, We wrote you on your favour of same date, enclosing: and have Remittances, value...... Country Cheques for Clearing ..£ ...£ Advice of acceptances, payments, and drafts, £ bills for acceptance and return, and ... bills for negotiation. We enclose the Cash Account, the Cash List, bills accepted, paid vouchers, particulars of bills negotiated, and unpaid bills as post, forwarding under separate cover clearing cheques with relative List. Then will follow any other matter necessary to be communicated by them. } ORDINARY BANK DOCUMENTS. And on the third page will be given a list of— "Remittances from Branches," (( and Unpaid Bills enclosed." 251 When the letter is to the smaller branches or banks, the advice of cash will be given in the body of the letter, along with the other contents. Letter, &c., from London Agents. The copies of accounts to the Bank's bank correspondents will be on the following form :— BANK, DR. IN ACCOUNT WITH THE PROVINCIAL BANK. CR. To Balance Balance £ £ .... £ For the Provincial Bank, Accountant. And, when necessary, to forward to the ordinary client Account Forms. Bankers'. a Clients. my 一步 ​# } } 1 1 252 ORDINARY BANK DOCUMENTS. Account copy of his account, the following form will be used:- Forms. Clients'. DR. IN ACCOUNT WITH PROVINCIAL BANK. Balance f By Balance...£ For the Provincial Bank, £ CR. ...Accountant. Status Inquiries. With reference to Status Inquiries, the forms used are various, such as:- To.... Bank, Bank, ..18... Gentlemen, We shall feel obliged if you will kindly favour us with your opinion, in confidence, of the position and means of and if ... may be safely trusted, in the way of business, to the extent of £...... We are, Gentlemen, Your most obedient servants, ...MANAGER. 2 To ..... ORDINARY BANK DOCUMENTS. Or, Bank, 253 Status Bank, Inquiries. ..18... Gentlemen, Please favour us with your confidential opinion of the means and standing of— and your stating whether you would consider quite reliable for £……………….. ...............in the way of business, would further oblige, Yours, &c. Or, Bank, ..18... To ... Bank, Gentlemen, Your confidential opinion of :— and of..... sufficiency for £.... in a business Yours, &c., transaction, would greatly oblige, and see page 428 of our previous volume. By the Branches, the following form should be used in communicating with Head Office: INQUIRY FROM Name Occupation...... Address Bank or Referee Information desired ……….. For whom Nature of transaction BRANCH, ..18... Reply. ? " 254 ORDINARY BANK DOCUMENTS. We shall now, in the first portion of the following part, give the Forms of the Branch Returns, to which some allusion has been already made, ante pages 167, 168, and 169. [ 1 A } { F PART III. BRANCH RETURN FORMS. GENERAL BALANCE STATEMENT. RETURN FOR COMMISSIONERS OF INLAND REVENUE. RETURN FOR REGISTRAR OF JOINT STOCK COMPANIES. STATEMENT BY LIMITED BANKING COMPANY. Return Forms Daily. Daily In those cases where duplicate Ledgers of the Branches Branch are kept at Head Office, the following daily Return, called the Daily Statement, accompanied by the relative vouchers, should be transmitted by each of the Branches to Head Statement. Office, it being premised that in connection with this and the various relative succeeding Returns, no bills of exchange are kept at the Branch, all being forwarded to Head Office, with the exception of those near maturity, these being sent direct to their respective destinations:- PROVINCIAL BANK. MONDAY, BRANCH. 18...... } > 1 • 256 BRANCH RETURN FORMS. 1 Daily. MONDAY, 18...... Daily Head Office. Credit Credit Amounts. Totals. Head Office. Debit Amounts. Debit Totals. + Statement. 1 Current a/cs.: A to I. Current a/cs. : A to I. Carry forward...£ MONDAY, Brought forward. £ Current a/cs.: J to R. Carry forward...£ 18...... Brought forward.£ Current a/cs.: J to R. Current a/cs. S to Z. Current a/cs.: S to Z. Deposit a/cs. Carry forward.. Deposit a/cs. Carry forward.. £ BRANCH RETURN FORMS. # 257 Daily. Daily Statement. MONDAY, 18....... Credit Amounts. Credit Totals. Debit Amounts. Debit Totals. Brought forward Deposit Receipts £ Bills Remitted a/c. Brought forward Deposit Receipts... Bills Remitted a/c. Bills Current a/c.. Bills Negotiated a/c. Interest a/c. ... Commission a/c.... Returned Bill a/c.. Stamp a/c. Bills Current a/c.. Bills Negotiated Contra a/c...... Returned Bill a/c. Interest a/c... Commission a/c.... Stamp a/c. Postages a/c.... Charges a/c....... And where there is a Sub-branch to the Branch, the following should be added :- Current A/cs. SUB-BRANCH. Current A/cs. Deposit A/cs. Deposit Receipts... Commission a/c... Interest a/c………………. ५२ Deposit Ac/s. Deposit Receipts... Interest a/c. Balance consisting of Bk. of Engd. Notes Sovereigns.£ Half-Sovs.. Silver Copper Miscellanies, giving full particulars : By Balance.. • £ .MANAGER. Q * į Daily. Daily Statement. Branch Entries in Transitu. 1 258 BRANCH RETURN FORMS. We have seen, ante pages 167 and 168, that the above Return should correspond in every particular with the State Book, and that, where duplicates of the ledgers of the larger Branches are not kept, the Return need only contain the details of the Head Office transactions, the totals of all the other accounts being merely given, the Head Office items being accompanied with the relative vouchers, while the vouchers in connection with the other accounts are retained at the Branch. Indeed, to show how so important a book as the State Book is kept, it might be advisable to have a press copy of it taken and forwarded to Head Office by the ordinary Branches, there being specially prepared copying paper for the purpose. As a reference in connection with the working of some of the accounts, such a Statement might also prove of considerable utility at Head-quarters. The following, saving the trouble of making out separate credit and debit vouchers in connection with Branch Entries in transitu, may be recommended for use:- CR. BRANCH ENTRIES. Branch Cheques received at.. Drawer. Branch. on... ....18... Amount. Drawer. Branch. Amount. CREDITS. On Account of Branch. Amount. On Account of Branch. Amount. DR BRANCH ENTRIES. BRANCH CHEQUES PAID at. Drawer. Branch. ON.. 18...... Amount. Drawer. Branch. Amount. CREDITS FROM OTHER BRANCHES. On Account of Branch. ་ 1 Amount. On Account of Branch. Amount. * } BRANCH RETURN FORMS. 259 Weekly, on each Monday, the following Returns to the Weekly. preceding Saturday, should be made : PROVINCIAL BANK. General Return. BRANCH RETURN FOR WEEK ENDING .18... DR. 1.-GENERAL LEDGER BALANCES. CR. Head Office Account Current Accounts.. Deposit Accounts. Deposit Receipts Bills Current. Bills Remitted Bills Negotiated Bills Negotiated, contra Returned Bills Interest Commission Stamps Postages.. Charges Profit and Loss... Cash II. MONEY LENT AND LODGED. LENT. On Bills Current.... Past Due Bills Current Accounts... Deposit Accounts... Cash Balance......... Total...... LODGED. 1 On Current Accounts... Deposit Accounts... Deposit Receipts ... Total .... DIFFERENCE [for or against] £ III -TURNOVER AND NUMBER OF ACCOUNTS. TURNOVER. On Current Accounts... NUMBER OF ACCOUNTS. Current Accounts. Deposit Accounts. Deposit Receipts. Total...... ! Weekly. General Return. 260 BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH RETURN FOR WEEK ENDING.... IV.-PAST DUE BILLS. 18... To whom discounted. Acceptor. Due. Amount. Paid. Balance. V.-PARTICULARS OF DAILY CASH BALANCE. Monday Tuesday. Wednesday. Thursday. Friday. Saturday. | Bank of England Notes Sovereigns Half-Sovereigns Silver Copper Country Notes. Miscellanies Total Saturday's Balance verified by. VI.-PARTICULARS OF SUSPENSE ACCOUNT. DATE. DETAILS. AMOUNTS. DR. CR. } 1 1 BRANCH RETURN FORMS. 261 VII.-PARTICULARS OF SUNDRY DIVIDENDS ACCOUNT. Weekly. General Return. DATE. DETAILS. AMOUNTS. DR. CR. VIII.-PARTICULARS OF INTEREST ACCOUNT. RECEIVED. Date. Details, PAID. Rate. Amount. Date. Details. Rate. Amount. IX.-PARTICULARS OF COMMISSION ACCOUNT. RECEIVED. Date. Details. PAID. Rate. Amount. Date. Details. Rate. Amount. 262 Weekly. General Return. BRANCH RETURN FORMS. X.-ACCOUNTS OPENED DURING THE WEEK ENDING CURRENT ACCOUNTS. NAME. NAME. Dr. or Cr. Amount. DEPOSIT ACCOUNTS. Amount. REMARKS. REMARKS. XI.—ACCOUNTS CLOSED DURING THE WEEK ENDING CURRENT ACCOUNTS. NAME. Dr. or Balance. Cr. 'REMARKS. .18... .18.... + BRANCH RETURN FORMS. ACCOUNTS CLOSED DURING THE WEEK ENDING... DEPOSIT ACCOUNTS. 263 18... Weekly. General Return. NAME. BALANCE. XII.—CURRENT ACCOUNTS, Dr. REMARKS. BILLS. Highest Limit. Balance during Drawn NAME. £ £ £ week. or In- Ac- Past dorsed. cepted. Due. £ £ Security. Bills held over. Turn over. Remarks. £ £ £ £ NAME. XIII. DEPOSIT ACCOUNTS, DR. BALANCE WHEN OVERDRAWN. REMARKS. : But, the entries in this portion of the Return should be very few, if any, as when a Deposit Account turns to the debit it should, unless the overdraft is unintentional, or only small, and for a day or two, and not to be repeated, be at once transferred to the Current Accounts. i 1 3 7 C Weekly. Daily Totals during Week. 1 264 < BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH RETURN OF DAILY TOTALS, CR. FOR WEEK ENDING..... .18.... Head Office Account. Carry ford. $ Current Accounts. Deposit Accounts. Deposit Receipts. Bills Current Account. Bills Remitted Account. Bills Negotiated. Bills Negotiated Contra. Carry ford. DR. 7 BRANCH RETURN FORMS. BRANCH RETURN OF DAILY TOTALS.-Continued. 265 Weekly. Daily Totals CR. DR. during Week. Brought ford. Returned Bill Account. Brought ford. Interest Account. Commission Account. Stamp Account. Postages Account. Charges Account. Cash Balance. I ↑ 1 * Weekly. Draft and Deposit Receipt Forms. ' ' 266 And: BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH ...…………………..18... RETURN OF DRAFT AND DEPOSIT RECEIPT FORMS, FOR WEEK ENDING...... Date. On hand..... Used "" "" Spoiled ...18.... London Drafts. Provincial Drafts. Deposit Receipts. Demand. After Date. Monthly. Current Account Balances. Monthly, and within a day or two after the end of each month, the following Returns should be made :— PROVINCIAL BANK. BRANCH CURRENT ACCOUNT BALANCES AS AT.. 18….., As at……….. ...18.... NAME. Dr. Cr. Dr. Cr. And this, to save time and trouble, should have the names printed, and it also may be in folios ruled for a series of months. 1 1 NAME. BRANCH RETURN FORMS. PROVINCIAL BANK. 267 Monthly. Current Account Decimals, .18....... BRANCH CURRENT ACCOUNT DECIMALS, AS AT 18......, As at Dr. Cr Dr. Cr. > With also names printed, and ruled for a series of months. PROVINCIAL BANK. VIEW OF DISCOUNT OBLIGATIONS. BRANCH. ..18....... Monthly. Discount Obligations.. And: NAME. } Indorsements. Acceptances. No. Amount. No. Amount. } 7 J : 1 Monthly. Charges. Quarterly. Deposit Account Balances. J 268 ... 1 BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH ANALYSIS OF CHARGES FOR MONTH OF ... 18....... Incidents. Charges, Law Printing Advertising. and Extraordinary Expenses. Quarterly, a Return of the Deposit Account balances should be made, the folios being ruled for a series of quarters and the names printed :- PROVINCIAL BANK. NAME. BRANCH DEPOSIT ACCOUNT BALANCES AS AT... 18......, As AT…………………………..18....... Dr. Cr. Dr. Cr. + And accompanying this should be the Return of the 1 Folio 7 BRANCH RETURN FORMS. 269 Deposit Account Decimals, also ruled for a series of Quarterly. quarters, and having the names printed :- PROVINCIAL BANK. Deposit Account Decimals. NAME. ……….. BRANCH DEPOSIT ACCOUNT DECIMALS. AS AT... 18...... AS AT…...... .18....... Dr. Cr. Dr. Cr. 1 Half-yearly, the following Returns will be made: PROVINCIAL BANK. Half-yearly Balance Return ୪୧ BALANCE NAME. Rate WITHOUT CHARGES. Dr. Interest Applied. Com- mission applied Cr. Dr. Cr. Postages applied. BALANCE WITH CHARGES. Interest Adjusted. Dr. Cr. Dr. Cr This being used for Deposit as well as Current Accounts. Com- mission Adjusted. 1 A 1 Half-yearly. Closing Entries. 270 $ BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH RETURN OF CLOSING ENTRIES.. CURRENT ACCOUNTS. Interest Applied Commission do... ...... DEPOSIT ACCOUNTS. Interest Applied Commission do... INTEREST ACCOUNT. Current Accounts .. Deposit Accounts • Adjusting Interest on Current Accounts .. Adjusting Interest on Deposit Accounts Adjusting Interest on Deposit Receipts Balance to Profit and Loss .... COMMISSION ACCOUNT. Current Accounts.. • Deposit Accounts.. Adjusting Commission on Current Accounts .. Adjusting Commission on Deposit Accounts Balance to Profit and Loss. .... NEW INTEREST ACCOUNT. Adjusting Interest on Current Accounts Adjusting Interest on Deposit Accounts Adjusting Interest on Deposit Receipts NEW COMMISSION ACCOUNT. Adjusting Commission on Current Accounts Adjusting Commission on Deposit Accounts CHARGES ACCOUNT. Balance to Profit and Loss PROFIT AND LOSS ACCOUNT. Balance of Interest Account .... Ditto Commission Account. Ditto Charges Account .... Balance to Head Office HEAD OFFICE ACCOUNT. Balance of Profit and Loss-.... 18... • Totals Averages... } BRANCH RETURN FORMS. PROVINCIAL BANK. BRANCH. 271 Half-yearly. MONEY LENT AND LODGED BOOK. Money Lent and Lodged Book Totals and Averages. RETURN OF TOTALS AND AVERAGES, FOR HALF-YEAR ENDING………. .18....... Columns as ante page 90. PROVINCIAL BANK. RETURN OF BAD AND DOUBTFUL DEBTS. ..BRANCH,……….. .18...... Bad and Doubtful Debts. I. 2. 3. Name Date of Amount of Failure. of Debtor. Claim. 4. Securities and Dividends Realized. Description. Amount. ம் 5. Present Balance. 6. 7. 8. Securities and Dividends 9. Provision expected to be Realized. Descrip- tion Amount Estimated Loss. Provision made for Loss at last Balance. to be now made for Loss. These two Columns to be filled up by Head Office. + 1 , PROVINCIAL BANK. .BRANCH. .18...... SCHEDULE OF MONEY LODGED ON CURRENT ACCOUNTS, DEPOSIT ACCOUNTS, AND DEPOSIT RECEIPTS. Current Accounts Deposit Accounts Deposit Receipts.. TOTAL...... Current Accounts Deposit Accounts TOTAL No. of Accounts. Amount under £100. No. of Accounts. £100, and under £500. No. of Accounts. £500, and under £1,000. No. of Accounts. £1,000 and under £2,500. No. of Accounts. £2,500, and under £5,000. No. of Accounts. £5,000, and under £7,500. No. of Accounts. £7,500,and under £10,000. No. of Accounts. Over £10,000. Total No. of Accounts. TOTALS. SCHEDULE OF MONEY LENT. No. of Accounts and Receipts £100. under Amount No. of Accounts and Receipts £500. and under £100 No. of Accounts and Receipts £1,000. £500 and under No. of Accounts and Receipts £5,000 and under £1,000 No. of Accounts and Receipts £10,000. and under £5,000 No. of Accounts and Receipts £10,000 Over Total No. of Accounts and Receipts TOTALS. Sehedule. Half-yearly. 272 BRANCH RETURN FORMS. } י LENT. Total Number of Current Accounts, Total Amount of Money lodged on Current Accounts ...£ Money Lent on Current Accounts, LODGED. ...£ Total Number of Deposit Accounts, Total Amount of Money Lodged on Deposit Accounts...£ Money Lent on Deposit Accounts ......... £ Total Number of Deposit Receipts, Total Amount of Money lodged on Deposit Receipts ...£ } TOTALS. ...£. £ R ......£. Total Turn-over on Current Accounts for the Half-year AMOUNT, The Clients having amounts at their credit beyond £10,000 are- NAME. BRANCH RETURN FORMS. 7 273 Half-yearly. Schedule. The Total Amounts of Money Lodged and Money Lent must agree with the amounts in Pounds in the Balance Sheets after the charges are applied. THIS FORM SHOULD BE FILLED UP AND RETURNED TO HEAD OFFICE AS EARLY AS POSSIBLE AFTER THE BALANCE. } } 1 t ' Banks with numerous Branches. Manchester 274 BRANCH RETURN FORMS. By the large Banks, with numerous branches, no duplicate ledgers are of course kept, and in some instances. the branches retain their bills, instead of sending them on to Head Office. The Manchester and Liverpool District Bank, by far and Liverpool the largest and most important of the purely provincial Branch banks, use the following very excellent and complete series of Returns: District Bank Returns. Daily. BRANCH. TRANSACTIONS IN ACCOUNT WITH HEAD OFFICE ...18.... 峦 ​BRANCH RETURN FOR MS. 275 .BRANCH OF THE MANCHESTER AND LIVERPOOL Manchester DISTRICT BANKING COMPANY LIMITED IN ACCOUNT WITH HEAD OFFICE. and Liverpool District Bank Branch Returns. Daily. DR. 18 London Agents. Drafts issued this day, per Advice List Acceptances and Pay- ments do. Cheques received for Clearance do. 18 London Agents. Bills remitted, per Advice List.. Local Notes remitted, do. Country Cheques re- mitted, do. ५२ CR. On each side, after the entries under the heading of London Agents, will follow the transactions with the Parent Office, the Branches and Correspondents, the whole forming the Account with Head Office. な ​2 > } f 276 BRANCH RETURN FORMS. THE MANCHESTER AND LIVERPOOL Manchester and Liverpool District Bank Branch Returns. Daily. DISTRICT BANKING COMPANY LIMITED, ..18.... TO THE MANAGER AT THE HEAD OFFICE. Sir, I wrote to you on and have since received your Letter of same date. I annex our Transactions with our London Agents. I enclose for our credit CASH BALANCE :— Notes............... £ ,, "" Gold ......... Silver and Copper. "" Cheques £ Cheques and Bills. £ - "" "" I am, &c., MANAGER. } BRANCH RETURN FORMS. THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY 277 Manchester and Liverpool LIMITED. District Bank Branch Returns. Transactions with London Agents, at. Branch, Daily. 18...... DRAFTS, Term. When £ s. d. BILLS REMitted. due. When due. £ s. d. ADVICES TO RETIRE ACCEP- TANCES. PAYMENTS. POSTMASTER GENERAL. LOCAL NOTES REMITTED. CHEQUES RECEIVED FOR CLEARANCE. COUNTRY CHEQUES REMITTED. J J 1 . J Daily. District Bank Manchester and Liverpool Returns. Branch Where. Due. Amount. ..Branch, from LONDON AGENTS,.. Drawer. Where dated. Drawee. DISHONOURED BILLS received at Number, Endorser. 18.... Answer. 7 278 BRANCH RETURN FORMS. BRANCH RETURN FORMS. 279 Manchester and Liverpool District Bank Branch Returns. Weekly. WEEKLY. No....... ABSTRACT OF TRANSACTIONS AT THE BRANCH OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED, FOR THE WEEK ENDING 18....... I ༣། } 1 عر · Manchester and Liverpool District Bank Branch Returns. Weekly. 280 t BRANCH RETURN FORMS. ABSTRACT WEEKLY BALANCE. Amount Dr. Balance Dr. Titles of Accounts. Balance Cr. Amount Cr. Manchester & Liverpool District Banking Co.Ld. Bills of Exchange Bills Returned Deposit Receipts [ in No. Current Accounts ...... Interest Account.. Commission Account Stamped Drafts .... General Account of Charges.... Interest on Deposit Receipts Bad Debt Account.. Differences in Cash Cr. पर General Account of Cash Dr. Balance of Cash on Hand £ Amount lent on Accounts ABSTRACT OF CURRENT ACCOUNTS. Amount lodged on Accounts Balance due to the Bank THI Balance due by the Bank £ BRANCH RETURN FORMS. 281 List of PARTIES being DRAWERS, ENDORSERS, or ACCEPTORS Manchester I OF BILLS, DISCOUNTED at this BRANCH, where the Sum amounts to £ Name, Occupation, and Residence of Party. or upwards. No. and amount of Bills drawn or en- dorsed by Party. and Liverpool District Bank Branch Returns. No. and amount of Bills Accepted by Weekly. or Drawn on Party. ? ¿ A ? J 7 ! Manchester and Liverpool District Bank 282 BRANCH RETURN FORMS. LIST OF PAST DUE BILLS AT THIS DATE, WHERESOEVER PAYABLE. Branch of Returns. Bill. No. Name, Residence, and Occupation of each party on the Bill. (If refused acceptance, say so.) Original Partial When due. Principal Charges.|| Payment Sum. received. } Weekly. LIST OF NEW ACCOUNTS OPENED SINCE LAST WEEK. Name, Residence, and Occupation of Party. Nature of Account. Opinion of Party. LIST OF ACCOUNTS CLOSED SINCE LAST WEEK. 18... Certified by .Manager. ..Accountant. 3 A $ 3 BRANCH RETURN FORMS. 283 ...BRANCH. SUMMARY OF TRANSACTIONS FOR THE WEEK ENDING ...18...... Manchester and Liverpool District Bank Branch Returns. Weekly. हे * { t Manchester and Liverpool District Bank Branch Returns. 284 BRANCH RETURN FORMS. BRANCH OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED IN ACCOUNT WITH HEAD OFFICE. Dr. Weekly. Am Amount received during the Week ending 18... On the following Accounts :- Head Office Bills of Exchange { Returned Bills.. Current Accounts Deposit Receipts.. Bad Debt Account.. Interest Account .. Commission Account. Received on Advices £ on C./Accts £ {Receiv Differences in Cash 1 "" 21 " "" CR. Amount paid during the week ending.. ..18... On the following Accounts :- Head Office Bills of Exchange Returned Bills... Current Accounts. Commission chargeable on 1 £.... on? } Deposit Receipts.. Bad Debt Account Interest Account..... Commission Account .. General Account of Charges Differences in Cash.. Total Amount Received..£ Total Amount Paid......£ Balance of Cash on hand.........18.. Bank of Engd. Notes Local Notes.. Gold Silver.. Copper Expenses not yet en- tered to Charges a/c. Balance of Cash on hand at ......18.... £ CERTIFIED BY Manager. Accountant. £ { ! BRANCH RETURN FORMS. 285 RETURN OF INTEREST PAID AND RECEIVED AND COMMISSION Manchester RECEIVED during the week ending... 18... at the….…………….. and Liverpool DR. Branch of the Manchester and Liverpool District Banking Company Ltd. District Bank Date. Particulars. INTEREST ACCOUNT. Rate. Amount. Date Particulars. Rate. Branch CR. Returns. Amount. Weekly. Date. Particulars. COMMISSION ACCOUNT. Rate. Amount. Date. Particulars. Rate. Amount. The Debit Balance Return, embracing column for all the bills current in each account, is as follows :— WEEKLY RETURN from... NAME. .Branch.... .Day of...... ...18... REMARKS. In the following Return are copied only the bills having longer than about two weeks to run, and which should be posted in the Branch Discount Ledger at Head Office:- * 井 ​} 1 t { 专 ​! } 286 BANCH RETURN FORMS. Manchester BILLS OF EXCHANGE RECEIVED AT THE and Liverpool District Bank Branch Returns. Weekly } ! No. When Recd. Last Endorser. Drawer. Where. Drawee. MONTHLY.-The balances of the Current Accounts are Monthly given thus:- RETURN from the... .Branch of the MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED.........day of.... ...18...... NAME. Liabilities MAX. MIN. SECURITIES. in Bills. BALANCE. Dr. Cr. Acceptances. Bills in Act. 1 1 } } I } BRANCH RETURN FORMS. BRANCH DURING THE WEEK ENDING Where. Date. Term. 287 18 Accepted. When and Where payable. VALUE OF BILLS. Amount of Each. Daily Amount ENDORSERS. Manchester and Liverpool District Bank Branch Returns. And this Monthly Current Account Balance Return is accompanied by the following :— At...... ANALYSIS OF BILLS ON HAND. Branch, on the.. 4 18........ Due within Two Months Three Months ... ... Four Months ... Five Months All beyond Five Months £ Total of Bills on hand £ HALF-YEARLY.-A return of the Deposit Accounts is forwarded only half-yearly, and is in the following shape :- Monthly. A Half-yearly. 7 + 1 } { - I 5 1 Branch District Bank. and Liverpool Manchester Returns. Half-yearly. .....of the MANCHESTER AND LIVERPOOL DISTRICT .18. BALANCE. NAME. Dr. Cr. RETURN OF DEPOSIT ACCOUNTS from the BRANCH. BANKING COMPANY LIMITED, BALANCE. NAME. Dr. Cr. Rate of Interest. ………………..day of. Commis- Charged. Allowed. sion. INTEREST. 18...... Rate of Interest. INTEREST. Commis- sion. Charged. Allowed. 288 BRANCH RETURN FORMS. Liabilities in Bills. Securi- ties. Opinion of Parties. S. G. D. :- And half-yearly, the Current Account Balances are thus given :— RETURN FROM THE BRANCH OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED, BALANCE. Dr. Cr. Interest. DAY OF BRANCH RETURN FORMS. 289 And also, Half-yearly, are forwarded the following :— Manchester and Liverpool District Bank Branch Returns. BRANCH. SUMMARY OF TRANSACTIONS FOR THE WEEK ENDING ..18...... SHOWING ALSO THE CHARGES FOR THE HALF-YEAR. 1 S Half-yearly. १ } } 1 1 DR. t Branch District Bank and Liverpool Manchester Returns. Half-yearly. 290 BRANCH OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED IN ACCOUNT WITH HEAD OFFICE. Amount received during during the ..18.... ending. On the following Accounts:- Week Amount Paid during the Week ending ..18...... £ CR. Head Office £ Amount at the Credit of Interest A/c, transferred Amount at the Credit of Commission A/c. do. Bills of Exchange Bills of Exchange. Returned Bills Returned Bills Current Accounts' £ Amount of Interest Credited to particular Accounts at this date. On the following Accounts: Head Office Amount at the Debit of Interest A/c. transferred Amount at the Debit of General Account of Charges transferred · ) Current Accounts (Commission chargeable on £ Amount of Interest debited to particular A/cts. Deposit Receipts at this date. Amount of Commission do. Amount of Postage do. Deposit Receipts Gold Silver BRANCH RETURN FORMS. Manager Accountant. Interest Account Amount charged on Current Accounts at this date Amount set aside for Interest on Deposit Receipts at last transferred from Adjusting Account.. Total Amount of Interest paid during the Half- year transferred to Head Office Account.. on Advices£ " "1 " } Commission Account {Receive on C./Accts Amount charged on Current Accounts at this date Postage charged on Current Accounts at this date General Account of Charges.-Amount paid during the Half-year, transferred to Head Office Adjusting Account of Interest.-Amount now due on Deposit Receipts Bad Debt Account Differences in Cash • • Total Amount received.. Interest Account do. do. Amount allowed on Current A/cts at this date. Amount now due on Deposit Receipts transferred to Adjusting Account .... Total Amount of Interest received during the Half-year transferred to Head Office A/ct. Commission Account General Account of Charges. L Adjusting Account of Interest-Amount due on Deposit Receipts at Interest Account.. Bad Debt Account Differences in Cash • last, transferred to · Total Amount Paid.. 18 BALANCE OF CASH ON HAND Bank of England Notes Local Notes Balance of Cash on hand at 18 Copper. Certified by } BRANCH RETURN FORMS. 291 BRANCH. BALANCE ENTRIES OF THE GENERAL LEDGER. 18...... Manchester and Liverpool District Bank Branch Returns. Half-yearly. { # District Bank and Liverpool Manchester Branch Returns. Half-yearly. 292 BRANCH RETURN FORMS. BRANCH OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED IN ACCOUNT WITH HEAD OFFICE. CLOSING ENTRIES OF THE GENERAL LEDGER, To Close the following Accounts, having 18...... To Close the following Accounts, having Balances Creditor :- :- CR. DR. Balances Debtor :- Head Office Bills of Exchange Bad Debt Account Differences in Cash General Account of Cash for Amount of Balances Creditor £ MEMORANDUM.-The Accounts in the General Ledger are to be re-opened by reversing the above entries, and the Opening Entries should be recorded in the Day Book. Head Office Deposit Receipts Current Accounts Adjusting Account of Interest. £ General Account of Cash for Amount of Balances Debtor Certified by .Manager. .Accountant. { BRANCH RETURN FORMS. 293 And:- ABSTRACT OF ACCOUNTS OF THE MANCHESTER AND LIVERPOOL DISTRICT BANKING COMPANY LIMITED, AT Manchester and Liverpool District Bank Branch Returns. Half-yearly. .BRANCH, On the........……….of………. 18...... The Manchester and Liverpool District Banking Company Limited, Branch. ..18... We hereby certify that the within Abstracts of Accounts of the........... Branch of the Manchester and Liverpool District Banking Company Limited for the half-year ended are made up from the Books of the said Branch Bank, and that the valuation of Assets in the Bad Debt Account is correctly made from the best information we can obtain. } Directors. Manager. Accountant. To the Board of General Directors, The Manchester and Liverpool District Banking Company Ld., Manchester. I HEREBY CERTIFY that on the......... of ....... ...IS... I checked the Bills of Exchange, and ascertained the amount of them to be £........ and I counted the Cash and ascer- which are the tained the amount on hand to be £………………….. balances shewn in the within Abstract of the General Ledger. Manager. } 1 } } 1 Manchester and Liverpool District Bank Branch Returns. Half-yearly. } 294 BRANCH RETURN FORMS. ABSTRACT OF ACCOUNTS OF THE MANCHESTER AND AT..... BRANCH, ABSTRACT OF INTEREST ACCOUNT. On CURRENT ACCOUNTS:- Amount Paid during the Half-year Amount now credited parti- cular Accounts... ON DEPOSIT ACCOUNTS: Amount Paid during the Half-year Amount now credited parti- cular Accounts.. On BILLS OF EXCHANGE-Amount paid Amount paid at Debit of Head Office, at this date On CURRENt Accounts :- Amount received during the Half-Year • • Amount now debited parti- cular Accounts. • ON DEPOSIT ACCOUNTS:- Amount received during the Half-year Amount now debited parti- cular Accounts... On BILLS OF EXCHANGE-Amount of Discounts received Sundry Payments received .... Amount received, at Credit of Head Office, at this date .... ABSTRACT OF COMMISSION ACCOUNT. On CURRENT ACCOUNTS:- Amount received during the Half-year Amount now debited parti- cular Accounts ON DEPOSIT ACCOUNTS:- Amount received during the Half-year Amount now debited parti- cular Accounts....... On BILLS OF EXCHANGE - Amount received On RETURNED BILLS-Amnt.received On DRAFTS & ADVICES-- do. .... On SUNDRIES-Amount received Amount received, at Credit of Head Office .£ DR. ABSTRACT BALANCE OF THE GENERAL LEDGER. CR. Manchester and Liverpool District Banking Company Limited ..£ Manchester and Liverpool District Banking Company Limited £ Deposit Accounts Current Accounts .... Bills of Exchange (see Certificate and Analysis) Bills returned Current Accounts (see Abstract). Bad Debt Account Differences in Cash.. Balance of Cash on hand (see Certificate) £ Differences in Cash £ BRANCH RETURN FORMS. LIVERPOOL DISTRICT BANKING COMPANY LIMITED, ON 18.... · KEPT ABSTRACT OF GENERAL OF GENERAL ACCOUNT OF CHARGES. Ist.- Of Premises in Occu- pation of the Bank Rent payable by the Bank Taxes Ditto Insurance Ditto .. Repairs, per Statement.. • • • 295 Manchester and Liverpool District Bank Branch Returns. Half-yearly. 2nd-Of Salaries of the Bank's Officers.. 'SALARIES, viz. :— Manager. .Cashier. Accountant CLERKS :- · 3rd-Official Communication and Transmission. 4th-Of Miscellaneous and Special Allowance.. Transmission of Cash. Postage ... Carriage of Parcels...... Travelling Charges allowed.. Coals, Gas, and Cleaning. Stationery Law Charges.. Allowance to Clerks £ No charges are to be admitted into the Books or Accounts of the Manchester and Liverpool District Banking Company Limited, but such as have been specially authorised by the Board of Directors; and when any extraordinary charge has been ordered, the authority must be referred to in this Abstract. ABSTRACT OF CURRENT ACCOUNTS. Amount Lent on Accounts..£ Balance due by the Bank.. Amount Lodged on Accounts..£ Balance due to the Bank ANALYSIS OF BILLS OF EXCHANGE ON HAND. Due within Two months Three months.. Four mouths Five months All beyond Five months Total of Bills on hand Amount. Discount at 5 Cent. } Manchester and Liverpool District Bank Branch Returns. Half-yearly. 296 BRANCH RETURN FORMS. BAD DEBT ACCOUNT. ....BRANCH, NAME. Date of Failure. Liability on Bills, and Balance at Date of Failure. ¿ ....18... Present Balance as Receipts expected from Estimated shewn by the Bad Debt Ledger. Dividends, Loss. or from Securities. REPORT ON THE ABOVE ACCOUNTS AND SPECIFICATION OF SECURITIES. 1 1 辈 ​$ BRANCH RETURN FORMS. 297 Branch Bank By the Branches of some of the Scottish Banks the Scottish Returns made are very voluminous, there being a separate Returns. return in connection with each correspondent, and in which are entered all the transactions in detail, special copious Returns being also made in connection with Drafts issued, Bills remitted and received, Cheques remitted and received, Bills and Cheques returned or recalled, Bills discounted, Bill obligations, Past Due Bills, Overdrafts, Due Bills, Overdrafts, Deposit Receipts, Current Accounts, and Interest, Commission, and various other accounts. Others of the Scottish Banks have their returns in a much more condensed shape, and some of them, as will be gathered from the following specimens, are prepared with great skill and judgment:- BANK, ABSTRACT No.......... OF TRANSACTIONS AT FOR WEEK ENDING BRANCH, Weekly. .188... To Balance, per last Abstract .£ .... viz.:- Bank's Account Current, Sundries, as specified under... ...£ Interest Account, do. .. Drafts on Manager, do... Drafts on Agents, do... Drafts on London Corre- spondents, do... Demand Orders Re- ceived, Local Bills Past Due Bills. do... Bills Received for Col- ection Deposit Receipts .... Current Deposit Ac- counts.. Cash Accounts Stamped Drafts By...... viz. : Bank's Account Current, Sundries, as specified under.... .£ Interest Account, do. Charges Account, do... H. O. and Agents' Drafts Paid, do. Edinburgh and Country Bills, London Bills, do. do. Demand Orders Re- mitted, Local Bills.. do. Past Due Bills....... Bills Received for Col- lection Deposit Receipts. Current Deposit Ac- counts.. Cash Accounts. Stamped Drafts Balance of Cash, viz.:- Own Notes Notes of other Banks.. Gold .... Silver and Copper £ £ 42 : 1 298 BRANCH RETURN FORMS. Scottish Branch Bank Returns. Weekly. .... GENERAL BALANCE AT Bank's Account Current. Local Bills Past Due Bills (including Charges) Bills Received for Collection Cash Accounts.. Stamped Drafts Cash BANK'S BRANCH, .188.... Bank's Account Current. Deposit Receipts.. Current Deposit Accounts Certified,…………. .Accountant. 188...-The above Abstract, General Balance .... and the relative Lists subjoined, are hereby certified to be correct, and the Sum of being the Balance of Cash, is in the Bank's Repository, under the keys and official charge of the Bank's Agent, having been duly examined and counted. ABSTRACT OF MONEY LENT AND LODGED. LENT. LODGED. On Deposit Receipts Deposit Accounts Cash Accounts, Cr... On Local Bills Edinburgh and Country Bills London Bills.. .. On Past Due Bills .... On Cash A/cs. Bonds Amounts Dr. exclusive of Overdrafts Amount of Overdrafts as per separate Report.. Total on Cash A/cs. • On Deposit Accounts Dr. as per separate Report [Total Overdrawn on De- posit and Cash A/cs.. £] Total Money Lent..£|| i Total Money Lodged..£ ABTRACT OF NOTE EXCHANGES. Week ending. With whom. Notes Notes Delivered. Received. ..Agent. Balance in Balance favour of against the Bank. the Bank When Drawn, No. BRANCH RETURN FORMS. 299 SUNDRIES OF .BANK'S ACCOUNT CURRENT. Scottish DR. CR. Branch Bank Returns. Bankers Supplement Date. Bankers Supplement (Bills recd.). Bankers Supplement (Sundries) Stamp Duty for Week Discount on Local Bills... Edinburgh and Country Bills London Bills INTEREST ACCOUNT. Commission on Drafts on Manager Drafts on Agents.. Drafts on London Correspondents.. Transfers by Advice Demand Orders... English and Irish Bank Notes Bills retired in Lon- don... Bills and Orders returned unpaid, &c. Interest on Past-Due Bills Deposit Accounts Cash Accounts Interest on Deposit Receipts £ Deposit Accounts Cash Accounts .... Stamps for Revenue Remitt- ances. Bankers' Remitt- ances.. • Bills at a Currency to Cover Stamp .. Rebate on Bills paid before maturity, viz.:- £ days to run at p. ct. £ Sundries, viz.:- DRAFTS ON MANAGER. Payee. Comn. £ CHARGES ACCOUNT. Sum. ५२ DRAFTS ON LONDON CORRESPONDENTS. When Drawn. No. Payee. Bill Stamp. Comn. Sum. Weekly. 1 I Scottish Branch Bank Returns. Weekly. When counted. Dis- counted. No.~ No. When Dis- Drawer, Drawn. When | No. 300 DRAFTS ON AGENTS. Where Payable. Payee. Bankers per Supplement. BRANCH RETURN FORMS. ¡Comp. Sum. When Paid. No. HEAD OFFICE AND AGENTS' DRAFTS PAID. Where Drawn. Payee. Bankers per Supplement. EDINBURGH AND COUNTRY BILLS REMITTED. Drawer. Acceptor. Where When Payable. Dated. Cur- rency. Days. Discount and Com- Principal mission. Sum. LONDON BILLS REMITTED. DEMAND ORDERS RECEIVED. When received Whence and from whom Received. umber of Orders. Sum of each Re- mittance. Bankers per Supplement. Acceptor. When dated. Cur- rency. Days. Discount. Principal Sum. When DEMAND ORDERS REMITTED. remitted Whither and to whom Remitted. Bankers per Supplement. Com- mission Number of Orders. Sum of each Re- mittance Date. Sum. SUPPLEMENT TO ABSTRACT No.........; BANKERS' TRANSACTIONS AT BRANCH. FOR WEEK ENDING .188... SUNDRIES. CR. Branch Bills and Orders unpaid; Sums received for Credit of Bankers, &c. Banker's Bills and Orders unpaid; Sums paid by advice of Bankers, &c. DR. DRAFTS ISSUED ON BANKING CORRESPONDENTS. When Drawn. No. Where Payable. Correspondent. Comn. DRAFTS OF BANKING CORRESPONDENTS PAID. When Sum. Where Drawn Correspondent. Date. Sum. Paid. : BRANCH RETURN FORMS. 301 Weekly. Returns. Branch Bank Scottish FOR WEEK ENDING SUPPLEMENT TO ABSTRACT No. I BANKERS' TRANSACTIONS AT ........ 18... 18.......—Continued. -CONTINUed. Returns. Branch Bank Scottish Weekly. BRANCH, 1 CR. BILLS REMITTED DIRECT TO BANKING CORRESPONDENTS. Correspondent. When Due. Sum. When Remitted. No. Where Payable. BILLS RECEIVED DIRECT FROM BANKING CORRESPONDENTS. DR. } When Received. Whence Received. Correspondent. When Discount, Sum. Due. &c. 302 BRANCH RETURN FORMS. DEMAND ORDERS RECEIVED FROM BANKING CORRESPONDENTS. When Received. Whence Received. DEMAND ORDERS REMITTED TO BANKING CORRESPONDENTS. Correspondent. No. of Sum of each orders Remittance. When Remitted. Where Payable. Correspondent. Comn. No. of Sum of each Orders. Remittance. BRANCH, 188... ..Agent. Accountant. + BRANCH RETURN FORMS. MONTHLY REPORTS ON } CREDIT ACCOUNTS, OVERDRAWN DEPOSIT ACCOUNTS, DISCOUNT ACCOUNTS, AND PAST DUE BILLS, - AT THE OF THE BRANCH FOR BANK OF SCOTLAND ...18... 303 Scottish Branch Bank Returns. : } + # Monthly. 1 7 } 1 7 t 量 ​} 1 } 1 Scottish Branch Bank Returns. Monthly. 304 BRANCH RETURN FORMS. MONTHLY REPORT ON CREDIT ACCOUNTS AT THE.... BRANCH OF THE ...... THE........ BANK OF SCOTLAND, FOR THE MONTH ENDING... Nature and Names and Designations. Amount Balance, DR. Balance. CR. of Security + 18... AGENT'S Remarks. State whether Security is ample and Account Operative. If any change has taken place in the Security since the opening of the Account, let be specially noted. MONTHLY REPORT ON OVERDRAWN ACCOUNTS AT THE BRANCH OF THE FOR THE MONTH ENDING.... Names and Designations. Nature and Amount of Security held. Amount of Overdraft. BANK OF SCOTLAND. ...18.... AGENT'S REMARKS. State the General Character of the Account and Report fully on the Character, Means, and General Business Standing of the Party. 1 & .AND UPWARDS AT THEIR DEBIT, BANK OF SCOTLAND, .18... Draft. Total of Obligations on Bills. Average Balance of D/A during Month or Amount Lodged on Interest Receipt. AGENT'S REMARKS. NOTE.-Give as full information as possible regarding the Business, Character, Standing, and Means of each Party whose name appears in this List. MONTHLY REPORT ON DISCOUNT ACCOUNTS AT THE BRANCH OF THE AT... HAVING £.. Number of Bills. NAMES, DESIGNATIONS, AND ADDRESSES. NOTE. If any Discounter have Bills lying over Past Due, let these be inserted IN RED INK at the foot of his Account, and included in the summations of that Account. Accept- ances. DR. CR. BRANCH RETURN FORMS WITH 18... AGENT'S REMARKS. NOTE.-Report fully on each Party, and state what Proceedings have been taken to recover Payment; and be careful that the preceding columns are all filled up. LIST OF PAST DUE BILLS AT THE BANK OF SCOTLAND'S BRANCH AT AGENT'S REPORT THEREON, FOR THE MONTH ENDING NAMES AND DESIGNATIONS OF Bill No. ALL THE OBLIGANTS. NOTE.-Let all the Bills of each In- dorser be entered together, and the Totals carried out separately; and let the Name of each Obligant be entered on a separate line. Date When Due. Original Amount. Balance Out- standing. If Claim Ranked. Payments still expected. Date. Ratel Date. Amount. £ T J · 1 ་ 1 . 305 Returns. Branch Bank Scottish Monthly. 1 ' Scottish/ Branch Bank Returns. Weekly. 306. BRANCH RETURN FORMS. And the following selection from another of the Scottish Banks' series of Returns may be given :- BANKING COMPANY. ACCOUNT OF NOTES AND COIN ON HAND AT BRANCH, ON SATURDAY..... DAY OF.. 18... OLD ISSUE. NEW ISSUE. TOGETHER. NOTES-100. £ 20 £.... £...... IO 5 Total of £5 and upwards... £ £ £.. Do. under £5 Totals...... £...... £ £ COIN-Gold.. £ Silver £ Agent. .BANKING COMPANY. WEEKLY RETURN OF GENERAL BALANCES. BRANCH. Banking Company. Local Bills discounted Past Due Bills Operative Deposit Accounts. ... Cash Accounts Deposit Receipts Bills Received for Collection Profit and Loss Charges Stamps... Bank Property • Cash on hand £ Overdrafts on Operative Deposit Accounts.. Cr. Balances on Cash Accounts London Bills Discounted Current Country Bills Discounted Current .18...... DR. CR. ! } BRANCH RETURN FORMS. BANKING COMPANY. 307 DAILY RETURN of all OVERDRAWN OPERATIVE DEPOSIT ACCOUNTS and of all IRREGULAR CASH ACCOUNTS, at Week ending. ... .18....... Scottish Branch Bank Returns. Branch, for Weekly. ...18....... We certify that the following Return, shewing Over- has been made up drafts on OPERATIVE DEPOSIT ACCOUNTS to the extent of £... and on CASH ACCOUNTS to the extent of £...…………………………………. rom the Ledger, which is completely and accurately posted up to this date. OPERATIVE DEPOSIT ACCOUNTS. Agent. ..Accountant. NAMES. CASH ACCOUNTS. BANKING COMPANY. MONTHLY RETURN (To be made up on the last day of each Calendar Month) Of DEPOSITS at... BRANCH, At DEPOSIT RECEIPT rate,..... DAILY BALANCE rate,. ... "" MIN. MONTHLY BALANCE rate, Amount on which Min. Monthly Balance rate has been paid this Month, £ £ £ REMARKS. Monthly. .... 18...... ……………..Agent. ...Accountant. 1 + 1 } Scottish Branch Bank Returns. } 1 } Monthly. Quarterly. 308 BRANCH RETURN FORMS. BANKING COMPANY. MONTHLY RETURN OF PAST DUE BILLS, IRREGULAR ACCOUNTS, AND DISCOUNTS. PAST DUE BILLS remaining unpaid at Branch.......………..18…….. No. Name and Designation of When every Obligant on each Bill. due. Amount. Payments Remarks. At...... IRREGULAR CASH ACCOUNTS and OVERDRAWN DEPOSIT ACCOUNTS BRANCH, on...... 18....... IN WHOSE NAME. Credit Amount In what respect due. Irregular. Remarks. ABSTRACT from DISCOUNT PROGRESSIVE LEDGER, of Date ..... .........18.... Here put down the Name and Designation of each party who has direct Discounts, amounting to £...... or upwards; also the amount of Bills on which not last indorser. Name and Designation of Party. No. of Bills. Where last Indorser. Amount, No. of Bills. Where not last Indorser. Amount. We hereby certify, That the foregoing Lists of Past Due Bills, of Irregular Cash Accounts, and of Overdrawn Deposit Accounts, and Abstract from Discount Progressive Ledger, are correctly made up. .Branch, • .Agent. Accountant. ..18.. BANKING COMPANY. QUARTERLY RETURN OF CASH ACCOUNTS, at the......... Branch......... 18.... Name and Date when Designation of Principal Obligant. Name and Designation of Amount. each Security. Amount due. granted. REMARKS. (The Agent will here Report fully on the present position of all the Obligants, both Princi pal and Securities. ) BRANCH RETURN FORMS. …………..BANKING .BANKING COMPANY. QUARTERLY CHECK BALANCE at... Balances Dr. Summa- tions GENERAL ACCOUNTS. Dr. 309 Scottish 18... Branch Bank Returns. .Branch, Summa- tions Balances Cr. Quarterly. Cr. Banking Company ... Bills received for Collection London Bills Discounted Operative Deposit Accounts &c., &c. CR. Cash Account.. Cash on hand.. OPERATIVE DEPOSIT ACCOUNTS:- (Naming each Account-holder.) Balance as per General Account CASH ACCOUNTS:- (Naming each Account-holder.) Balance as per General Account DR. BANKING COMPANY. ANALYSIS OF PROFIT AND LOSS ACCOUNT, for Quarter ending. PAID. Discount on London Bills. Do. Country Bills Do. Local Bills Exchange and Commission Interest on Deposit Receipts Operative Deposit Ac/s. Cash Accounts Do. Do. Do. Past Due Bills ..Deposit Receipt Stamps Balance * the Bank.. * Debited or Credited, as the case may be.) Due by Bank OUTSTANDING Interest :— • Deposit Receipts Operative Deposit Accounts Cash Accounts.. .... .BRANCH. .18... RECEIVED. Due to Ba'nk] 4 ↓ J # + J ' } • 1 Scottish Branch Bank Returns. Half-yearly. 310 BRANCH RETURN FORMS. DR. CLOSING ENTRIES AT.. TO BILLS RECEIVED FOR COLLECTION. For the following Bills outstanding transferred to Balance Account TO LOCAL BILLS DISCOUNTed. Particulars of each Bill current as above...... TO OPERATIVE DEPOSIT ACCOUNTS. For the following Accounts having Balances, Dr. transferred to Balance Account To STAMPS ACCOUNT. For sundry Stamps on hand transferred to Balance Account TO BALANCE ACCOUNT. For the following Accounts having Balances Cr. transferred from their respective Accounts .Banking Company. Operative deposit Accounts.... Deposit Receipts ... To Balance of Cash on hand • Interest Int er est Interest Cr. Dr. DR. RE-OPENING ENTRIES AT. TO BALANCE ACCOUNT :— For the following Dr. Balances transferred to their respective Accounts- Banking Company Bills received for Collection.. Local Bills Discounted.. Past Due Bills...... Operative Deposit Accounts Cash Accounts Foreign Credits • Cheques Negotiated. Stamps • • • For Cash on hand ... To........... .BANKING COMPANY. For Balance transferred from Balance Account Operative Deposit Accounts do. do. do. Cash Accounts do. do. do. Deposit Receipts do. do. do. Cheques Negotiated do. do. do. .. Banking Company and London Agents' Acceptances Current, do. ........ Bills Received for Collection Local Bills Discounted.. Due within three Months. Due beyond three Months. TOTAL. ! BRANCH RETURN FORMS. .BANKING COMPANY. BRANCH, ON. 18... By..... .BANKING COMPANY. For Balance at Cr. transferred to Balance Account By OPERATIVE DEPOSIT ACCOUNTS. .. For the following Accounts having Balances Cr. transferred to Balance Account By DEPOSIT RECEIPTS. For Sundry Receipts outstanding as per separ- ate list, transferred to Balance Account By BALANCE Account. .... For the following Accounts having Balances Dr. transferred from their respective Accounts: Bills received for Collection Local Bills Discounted Operative Deposit Accounts Stamps Cash on hand Interest Interest Dr. Cr. .BANKING COMPANY. BRANCH, ON. BY BALANCE ACCOUNT— For the following Cr. Balances transferred to their respective Accounts- Banking Company Operative Deposit Accounts Cash Accounts Deposit Receipts Cheques Negotiated.... .. › Banking Company and London Agent's Accept- ances Current .. By BANKING COMPANY- For Balance transferred from Balance Account Bills Received for Collection transferred from Balance Account Local Bills Discounted, do. do. do. Past Due Bills, do. do. do. Operative Deposit Accounts, do. do. do. • Cash Accounts, do. do. do. Cheques Negotiated, do. do. do. Foreign Credits, do. do. do. Stamps, do. do. do. • By CASH ON HAND: Own £100 Notes Do. 20 >> Do. IO ,, Do. 5 " Do. I ور Bank of England Notes ... Mixed Notes-Exchangeable... Unexchangeable Specie Gold Silver.. Copper ' 3TI Scottish Branch Bank CR. Returns. Half-yearly. ..18... CR. .Agent. Accountant. ་ General Balance Statement. Liabilities and Assets. 312 GENERAL BALANCE STATEMENT. Daily Returns do not appear to be made by any of the Scottish Branch Banks, the only communication being the ordinary routine letter, which varies with the different Banks' branches. It may be added, with reference to the whole of the Branch Return Forms, that these should be filled up with great accuracy, as they form the foundation of the necessary statements to be made by the Accountant for Head Office purposes, and some of the Returns, moreover, are used for balanced Accounts at Head Office, though not forming part of the balance of the Branch books. GENERAL BALANCE STATEMENT. By the Accountant, a General Balance Statement, with a relative statement of Profit and Loss, such as the following, or as near an approach to them as possible, should be made :— PROVINCIAL BANK. GENERAL BALANCE STATEMENT, ...... LIABILITIES. To Capital, per share on each= £ .. shares of £ Paid up £ shares .... Reserved Fund for losses, invested in. Dividend Guarantee Fund, in- vested in Officers' Annuity Fund, invested in Due on Current Accounts, with interest accrued £ "" Deposit Accounts and Deposit Re- ceipts with inte- rest accrued..£ Deposits for fixed periods.. Notes in Circulation Drafts and Advices Acceptances on behalf of Clients.. Bills rediscounted Foreign Bills Negotiated Unclaimed Dividends Dividend to be now paid £ Bonus Balance of Profit and Loss carried forward. ASSETS. By Cash at Head Office and Branches.. >> >> £ at London Agents at Call with other Banks at not exceeding 14 days' notice with London Bill Brokers INVESTMENTS: Consols and other Secu- rities of the British Government .... ..£ Bank of England Stock British Colonial Govern- ment Bonds British Railway Deben- ture Stocks Guaranteed Preference Stocks Indian Railway Guar- anteed Bonds Metropolitan Board of Works Stock.. Municipal Bonds BILLS OF EXCHANGE:- Within one Month's Currency £ Between one and three Beyond three Overdue, secured....£ unsecured ADVANCES TO CLIENTS: Secured •• Unsecured Acceptances, contra Bills re-discounted, contra. Foreign Bills negotiated, contra.. COST OF BUILDINGS, FUR- NITURE, AND Fittings: 18... 1 } Head Office Branches .... Sub-Branches £ £ Less written off to this date Property not occupied by Bank, and yielding rent . £ DR GENERAL BALANCE STATEMENT. PROFIT AND LOSS STATEMENT FOR YEAR ENDING 31ST DEC., 18... 313 CR. Profit and Loss. To Current Expenses, including Salaries, Cost of Transport of Specie, Rent, Taxes, Stationery, and all other Charges Written off for bad and doubtful Debts Transferred to Reserve Fund ....£ Transferred to Dividend Guarantee Fund ……………. Officers' Annuity Fund Bonus for Officers .... Rebate of discount on bills at per cent Interim Dividend at 30th June, 18... .£ Dividend for past half- year to be now paid at .per cent per annum Bonus of....per share on shares, being .... per cent per annum on the paid-up capital By Balance at 31st Dec., 18….….…. Gross Profits for the twelve "" months, including rebate brought from previous year Balance carried forward £ ……..Accountant-General. The introduction of the bonus items above is on items above is on the Bonuses. assumption that the profits have been greater than usual, and such as to fully warrant their appropriation in this way, after properly augmenting the Reserved, Dividend Guarantee, and Annuity Funds. The investments should be given in detail, and those Investments. mentioned are considered to be such as might be appro- priately selected for bank surplus funds, all legitimate local trade wants having, in the first instance, been fully supplied. With respect to Municipal Bonds or Corporation Stocks, these, as in general, not being readily convertible, should only be invested in to a limited extent, and the securities should, of course, be home ones, and preferably those of the towns with which the Bank is connected. 1 1 } 7 f } Annual Return of Names and Places. 314 RETURN FOR COMMISSIONERS. RETURN OF NAMES AND PLACES FOR COMMISSIONERS OF INLAND REVENUE. By the Revenue, &c., Act, recently passed, post page 315, this Return will not now be used by Banks subject to the Companies Acts, 1862 to 1880. Hitherto by the various Banks an Inland Revenue Office Circular in the following terms was received annually in the beginning of December: Particulars. Penalty on Omission, &c. RETURN FOR COMMISSIONERS. I am directed by the Commissioners of Inland Revenue to draw your particular attention to the following extract from the Bank Charter Act, 7 and 8 Vic., cap. 32, sec. 21:-And be it enacted, "That every Banker in England and Wales who is now carrying on, or shall hereafter carry on, Business as such, shall, ON THE FIRST DAY OF JANUARY IN EACH YEAR, OR WITHIN 15 DAYS THEREAFTER, make a Return to the Commissioners of Stamps and Taxes, at their Head Office in London, of his Name, Residence, and Occupation; or, in the case of a Company or Partnership, of the Name, Residence, and Occupation of every Person composing, or being a Member of such Company or Partnership, and also the Name of the FIRM under which such Banker, Company, or Partnership carry on the Business of Banking, and of every place where such Business is carried on; and if any such Banker, Company, or Partnership shall omit or refuse to make such Return WITHIN FIFTEEN DAYS AFTER THE SAID FIRST DAY OF JANUARY, or shall wilfully make other than a true Return of the Persons as herein required, every Banker, Company, or Partnership so offending, shall forfeit and pay the sum of Fifty Pounds." I am also directed to inform you, that the Return must be made in the subjoined Form within the time specified by the Act, addressed to the Commissioners of Inland Revenue, Somerset House, and marked on the outside "Bankers' Return." I am, &c. 1 RETURN FOR COMMISSIONERS. RETURN FOR COMMISSIONERS. Return Pursuant to 7 and 8 Vict., c. 32. Name of Firm. PERSONS OF WHOM THE COMPANY AND PARTNERSHIP CONSISTS. Name. Residence. Occupation. NAMES OF PLACES WHERE THE BUSINESS IS CARRIED ON. Place. County. Place. 315 Form. County. ! I (being the Banker, Chief Cashier, Managing Director, or Partner of the Bank, as the case may be) do hereby certify that the above is a true Return of the Particulars required by the Act 7 and 8 Vic., cap. 32. Dated the .... Signed…….. day of 18... as to But now, by section II of the Revenue, Friendly New Societies, and National Debt Act, 1882, 45 and 46 Vict., Provisions cap. 72, passed 18th August, 1882, it is enacted that "A Return. Banking Company to which the provisions of the Companies Acts, 1862 to 1880, are applicable, having duly forwarded to the Registrar of Joint Stock Companies a list and summary as required by the second part of the Companies Act, 1862, and having added thereto a state- ment of the names of the several places where it carries on business, shall not, after the passing of this Act, be bound to furnish to the Commissioners of Inland Revenue any 1 } New Provisions as to Return. Publication. Annual Return of Members and Shares. 316 RETURN FOR REGISTRAR. returns under the provisions of any of the enactments specified in the first schedule to this Act, viz., 6 Geo. 4, c. 42; 7 Geo. 4, c. 46; 7 Geo. 4, c. 67 ; 7 and 8 Vict., c. 32, s. 21; 8 and 9 Vict., c. 37, s. 22; and 8 and 9 Vict., c. 38, s. 13." And that " From and after the passing of this Act, the expressions 'bank' and 'bankers' in the Bankers' Books Evidence Act, 1879 [42 and 43 Vict., c. 11], shall include any Company carrying on the business of Bankers, to which the provisions of the Companies Acts, 1862 to 1880, are applicable, and having duly furnished to the Registrar of Joint Stock Companies a list and summary, with the addition specified by this Act, and the fact of such list and summary having been duly furnished may be proved in any legal proceedings by the certificate of the Registrar, or any Assistant-Registrar, for the time being of Joint Stock Companies." Section 21 of the Act of 7 and 8 Vict., c. 32, provides that "the said Commissioners of Stamps and Taxes shall, on or before the First day of March in every year, publish in some newspaper circulating within each Town or County respectively, a copy of the Return so made by every Banker, Company, or Partnership carrying on the business of Bankers within such Town or County respectively, as the case may be." For facility of proof when necessary, and to save subsequent trouble and expense, several copies of the newspaper containing the Return should be procured and kept by the Bank to which it is applicable. RETURN OF MEMBERS AND SHARES FOR REGISTRAR OF JOINT STOCK COMPANIES. By the Companies Act, 1862, the 25 and 26 Vic., cap. 89, it is enacted, sections 25, 26, and 27, that "Every Company under this Act shall cause to be kept in one or more books { RETURN FOR REGISTRAR. 317 a Register of its Members, and there shall be entered Return of therein the following particulars :- Members and Shares. 1. The names and addresses, and the occupations, if any, of Register. the Members of the Company, with the addition, in the case of a Company having a capital divided into shares, of a statement of the shares held by each member, distinguishing each share by its number, and of the amount paid, or agreed to be considered as paid, on the shares of each Member. 2. The date at which the name of any person was entered in the Register as a Member. default. 3. The date at which any person ceased to be a Member. And any Company acting in contravention of this section, shall incur a penalty not exceeding Five Pounds for every Penalty on day during which its default in complying with the provisions of this section continues; and every Director or Manager of the Company, who shall knowingly and wilfully authorise or permit such contravention, shall incur the like penalty. Return. "Every Company under this Act, and having a capital Particulars of divided into shares, shall make, once at least in every year, a list of all persons who, on the fourteenth day succeeding List. the day on which the Ordinary General Meeting, or if there is more than one Ordinary Meeting in each year, the first of such Ordinary General Meetings is held, are Members of the Company; and such list shall state the names, addresses, and occupations of all the Members therein mentioned, and the number of shares held by each of them, and shall contain a summary specifying the following particulars :- 1. The amount of the Capital of the Company, and the Number Summary. of Shares into which it is divided. 2. The number of Shares taken from the commencement of the Company up to the date of the summary. 3. The amount of calls made on each Share. 4. The total amount of calls received. 5. The total amount of calls unpaid. $ + Summary: Penalty on default. Form. 318 RETURN FOR REGISTRAR. 6. The total amount of Shares forfeited. 7. The Names, Addresses, and Occupations of the persons who have ceased to be Members since the last list was made, and the Number of Shares held by each of them. The above list and summary shall be contained in a separate part of the Register, and shall be completed within seven days after such fourteenth day, as is mentioned in this section, and a copy shall forthwith be forwarded to the Registrar of Joint Stock Companies. "If any Company under this Act, and having a capital divided into shares, makes default in complying with the provisions of this Act with respect to forwarding such list of Members or summary as is hereinbefore mentioned to the Registrar, such company shall incur a penalty not exceeding Five Pounds for every day during which such default continues; and every Director and Manager of the Company who shall knowingly and wilfully authorise or permit such default, shall incur the like penalty." The Form of the Return to the Registrar is as follows:- Summary of Capital and Shares of the......... .Company, made up to the.........day of……………….. Nominal Capital, £...........divided into............Shares of £................each. Number of Shares taken up to the.........day of........ There has been called up on each Share £....... Total amount of Calls received, £..... Total amount of Calls unpaid, Total amount paid on... £....... Shares forfeited, £………….. ...Company on and of persons who have List of persons holding Shares in the........... the...............day of........ held Shares therein at any time during the year immediately preceding the said...............day of.... , showing their names and addresses, and an account of the Shares so held. 1 Folio in Register Ledger containing particulars. RETURN FOR REGISTRAR. Names, Addresses, and Occupations. Additional Account of Shares Shares held by Shares held by existing Mem- Shares bers during held by preceding Persons no longer Members. Christian Occupa- Surname. Name. Address. existing tion. Members on the.... day of.... Number. year. Date of Transfer. Number. Date of Transfer. ¿ 319 Form. Remarks. Signature... Officer.... And by the Banks subject to the Companies Acts, 1862 to 1880, will be added names of places as provided by the Revenue, &c., Act, ante page 315, the making of a Return to the Commissioners of Inland Revenue, being thus rendered unneccessary. By Section 32 of the Companies Act, 1862, the Register Inspection of "of Members shall during business hours, but subject to such Register. reasonable restrictions as the Company in General Meeting may impose, so that not less than two hours in each day be appointed for inspection, be open to the inspection of any Member, gratis, and to the inspection of any other person on the payment of one shilling, or such less sum as the Company may prescribe, for each inspection; and every such Member or other person may require a copy of such Register, or of any part thereof, or of such list or summary of Members as is hereinbefore mentioned, on payment of sixpence for every hundred words required to be copied ; if such inspection or copy is refused, the Company shall incur for each refusal a penalty not exceeding two pounds, and a further penalty not exceeding two pounds for every day during which such refusal continues, and every Director and Manager of the Company who shall knowingly authorise or permit such refusal, shall incur the like penalty; } } 320 STATEMENT BY LIMITED BANKING COMPANY. Inspection of and in addition to the above penalty, as respects companies. Register. registered in England and Ireland, any Judge sitting in Chambers, or the Vice-Warden of the Stannaries, in the case of companies subject to his jurisdiction, may by order compel an immediate inspection of the Register." Half-yearly Statement by Limited Banking Company. Penalty on default. Form of Statement. " STATEMENT BY LIMITED BANKING COMPANY. By Section 44 of the Act, it is enacted that every Limited Banking Company shall, "on the first Monday in February and the first Monday in August in every year during which it carries on business, make a statement in the form marked D in the first schedule hereto, or as near thereto as circum- stances will admit, and a copy of such statement shall be put up in a conspicuous place in the registered office of the Company, and in every branch office, or place where the business of the Company is carried on, and if default is made in compliance with the provisions of this section, the Company shall be liable to a penalty not exceeding five · pounds for every day during which such default continues, and every Director and Manager of the Company who shall knowingly and wilfully authorise or permit such default shall incur the like penalty. Every Member and every creditor of any company mentioned in this section shall be entitled to a copy of the above-mentioned statement on payment of a sum not exceeding sixpence." The Statement should be in the following form :— STATEMENT OF LIMITED. Pursuant to Sec. 44 of THE COMPANIES' ACT, 1862. The Capital of the Company is.. divided into....... Shares of.... ....each. The number of Shares issued is * STATEMENT BY LIMITED BANKING COMPANY. 321 Calls to the amount of....... .Pounds per Share have Form of Statement. been made, under which the sum of………………… .Pounds has been received. The LIABILITIES of the Company on the First day of January (or July), 18..., were :— Debts owing to sundry persons by the Company, On Judgment On Specialty.... On Notes or Bills..... On Simple Contracts. On Estimated Liabilities ·£ • £ £ .£ ..£ The ASSETS of the Company on that day were :— Government Securities (stating them)…………..£ Bills of Exchange and Promissory Notes £ Cash at the Bankers Other Securities ·£ £ If the Company has no Capital divided into Shares, the portion of the Statement relating to Capital and Shares to be omitted. U 1 f 4 { PART IV. 7 BANK OF ENGLAND, AND ITS WEEKLY RETURN. THE NOTE ISSUES. BANK OF SCOTLAND AND BANK OF IRELAND. CHARTERED COLONIAL BANKS. For the better regulation of the Note issues, and the Provisions as prevention of that over-issue in the Country Notes which, to Note Issues. when unrestricted, led to so many disastrous results, it is enacted by section x. of the 7 and 8 Vict., c. 32, ante page 225, that from and after the passing of the Act (19th July, 1844), no new Bank for the issue of Notes shall be established in any part of the United Kingdom; section xi. enacting that no Company consisting of six or less than six persons shall issue Bank Notes at any time after the number of partners therein shall exceed six in the whole. By section xii. Bankers ceasing to } ર . I Provisions as 324 BANK OF ENGLAND. issue Notes shall not be able to resume an issue of to Note Issues. them at any time thereafter; and by section xiii. it is enacted that the maximum issue of Notes by the existing Country Banks shall be restricted to the average amount which they had respectively in circulation during the twelve weeks preceding the 27th April, 1844. By section xvi., should two or more Banks become united, the average amount of notes previously issued by each Bank may be issued by the united Bank, “provided always that it shall not be lawful for any such united Bank to issue Bank Notes at any time after the number of partners therein shall exceed six in the whole.” By this important Act, introduced and carried through Parliament by Sir Robert Peel, a considerable alteration was effected in the Bank of England by the separation of the issue and banking departments, an alteration adopted for the purpose of taking the control of the circulation out of the Directors' hands, and one which was originally recommended by Lord Overstone, though the provisions of the Act in all other important respects may be regarded as exclusively owing their origin to the former statesman. As for many years antecedently to the passing of the Act the notes of the Bank of England in circulation had not fallen below sixteen million pounds, and, as it was assumed that in any future panic the notes in the hands of the public would not likely be reduced below fourteen millions, this latter amount was fixed by the Act as the limit at which the Bank might issue its notes upon securities, of which the £11,015,100 lent to Government is a part, it being declared that for every note which the issue department shall issue beyond the £14,000,000, there shall be a corresponding amount of bullion in its coffers. See generally as to the regulation of the Bank issues, sections I to 6 of the Act. As it was provided, however, by section 5, that upon any of the provincial banks ceasing to issue its notes, the Bank of England • BANK OF ENGLAND. 325 might, by order in council, further issue upon securities Provisions as notes to the amount of two-thirds of those which the withdrawing provincial bank was authorised to issue, the Bank availing itself of the provision has, from the cessation of provincial issues since the passing of the Act, increased its note circulation upon securities, thus:- On 7th December, 1855. to Note Issues. ...£475,000 10th July, 1861 .... 175,000 "" 21st February, 1866 ... 350,000 and )) 1st April, 1881 .. 750,000 1 ثر Making a total increase since 1844 of ...£1,750,000, and raising the total amount of the issues on securities to £15,750,000. The administration of the banking department of the Bank is left mainly to the discretion of the Directors, whose operations are based on the ordinary principles of banking, though at the same time conducted with certain modifications rendered necessary by the important position of the Bank. The Returns from the issue and banking departments must, under section 6 of the Act, be published weekly in the LONDON GAZETTE, and in it they appear made up to the Wednesday evening of each week.* The following was the first return made up in its new form, 7th September, 1844, the enactment for separating the departments having come into operation on 31st August, 1844- Account of the Liabilities and Assets of the Bank of Weekly Return. England, for the week ending 7th September, 1844. * The decision as to the rate of interest, based upon the result of the Returns, is generally announced about noon on Thursday, but the Returns are not published until 3 p.m. on that day. This delay in the publication is the subject of much complaint on the part of the Discounting Firms, who are naturally anxious, especially when there has been a change in the rate, to see the figures of the Returns before entering into fresh transactions. 1 Weekly Return. 326 7 1 BANK OF ENGLAND. ISSUE DEPARTMENT. DR. Notes Issued .........£28,351,295 CR. Government Debt ......£11,015,100 Other Securities…….…………….. 2,984,900 Gold Coin and Bullion 12,657,208 Silver Bullion..... 1,694,087 £28,351,295 £28,351,295 BANKING DEPARTMENT. Proprietors' Capital... £14,553,000 Government Securities £14,554,834 Rest 3,564,729 Other Securities..... 7,835,616 Public Deposits 3,630,809 Notes 8,175,025 Other Deposits.………………….. 8,644,347 Gold and Silver Coin... 857,765 Seven-day and other Bills 1,030,354 £31,423,240 £31,423,240 In the crisis of 1857, and on the evening of the day preceding the suspension of the Act, the following was the condition of the two departments :- An Account pursuant to the Act 7 and 8 Vic., c. 32, for the week ending Wednesday, November 11th, 1857. ISSUE DEPARTMENT. Notes Issued............ £21,141,065 Government Debt...... £11,015,100 Other Securities .... 3,459,900. Gold Coin and Bullion Silver Bullion......... 6,666,065 £21,141,065 £21,141,065 BANKING DEPARTMENT. Proprietors' Capital ...£14,553,000 Government Securities Rest..... 3,364,356 (including Dead Public Deposits (in- Weight Annuity) £9,444,828. ... cluding Exchequer, Other Securities....... 26,113,453 こ ​Savings' Banks, Com- Notes 957,710 missioners of Na- Gold and Silver Coin... 504,443. tional Debt, and Di- vidend Accounts) Other Deposits Bills....... 5,314,659 12,935,344 Seven-day and other 853,075 £37,020,434 £37,020,434 f } BANK OF ENGLAND. 327 during Crises. On three different occasions it has been found necessary Position to suspend the Act, and the following comparison will show how the Bank stood each time :- Nov. 11, '57. May 17, '66. £7,170,508 ... £12,323,805 Oct. 23, '47. £8,313,000 1,547,270 447,246 .. 8,581,000 ... 957,710 504,443 12,935,344 40 Coin and Bullion on hand Reserve of Notes Reserve of Coin....... Private Deposits Private Securities, or Advances to the Public 730,830 471,980 18,620,672 19,467,000 26,113,453. 30,943,259 And on the 30th May, 1866, the figures were respect- ively £11,878,775; £415,410; £444,570; £20,467,080; and £33,447,463. In 1878, a year of great commercial depression, a crisis and panic in a measure occurred on the failure of the City of Glasgow Bank in October of that year; but neither the reserves nor the rates of interest of the Bank were affected to the extent that they were in the previous decennial crises; and indeed the severity of the crisis of 1878 was much moderated by the course of events consequent upon the fraudulent revelations, and the numerous failures and embarrassments of 1875, which involved a loss estimated at between £10,000,000 and £12,000.000 to the commercial community.* * The manner in which the operations of one of the bankrupt firms (that of Alexander Collie & Co.) were carried on was thus explained in the TIMES :- "Alexander Collie contrived to spread in London a great reputation for wealth and astuteness in business, aided, no doubt, by the blockade-running traditions of himself and his brother (during the war between the Confederate and Northern States of North America), and he lived and acted always so as to sustain this impression. Collie took a high view of his position, and adopted a line of conduct in dealing with the paper he floated which was admirably calculated to increase his apparent importance. His attitude in the market was always that of a seller. Goods had been bought from him by this house and that, and he drew against the goods on the firm in question. In some cases these firms were his dupes, in others they were part dupes part rogues, and in others still there seems nothing but the roguery visible. At any rate, this system gave at once enormous play to the borrowing powers of his firm, for it was a direct and most powerful means of throwing dust in the eyes of the bill brokers. 'This great Manchester firm must be doing an enormous business,' people would say; here is so-and-so and such-an-one accepting their drafts for very large sums,' and the story would pass from mouth to mouth till the credit of Collie & Co. would be to all appearance unquestionable. He took care always to sustain this idea by running down the rates at which he would ; t 1 Position during Crises. Remedies proposed. 328 BANK OF ENGLAND. From the figures in the above comparison of the Bank returns, it will be seen that the Bank had advanced to the public no less than £19,467,000, £26,113,453, £30,943,259, and £33,447,463 respectively, which they were enabled to do in a great measure from the large amount of deposits they held, while their reserves of notes and coin had fallen to the insignificant amounts seen, necessitating, of course, immediate action in the suspension of the Bank Act-an effectual remedy, enabling the Bank to very rapidly recover its position. Much discussion took place, and many schemes were proposed, particularly in 1857, for adoption in preference to suspending the Act, such as, amongst others, a large augmentation to the limit of the negotiate his paper. His credit was too high for his bills to be done at any but the lowest current discount. Again, the position of bill drawer put it into Collie's power to spread his operations very skilfully, so that his bills would not come to the Banks through one broker, nor all to one Bank. More than that, they would not even all reach the same broker in the first instance. We have inspected lists of his bills as distributed over various houses, and it is quite admirable to trace the neat manner by which the whole game was cloaked. A few firms of high respectability could only be drawn upon occasionally, when goods were really sold, and the bills on these were planted judiciously here and there all over the range of Banks where re-discounting was effected, serving thus to sustain the pleasant feeling of confidence among Bank Managers that all was right. Firms that were the habitual drawing party' were also neatly handled, but as their paper was more thickly strewn it had to be placed with extra care, so that the most cautious Bank should never have more of it than seemed good for the success of Collie's trade. Such a name as Shand & Co., for example, would be found on acceptances held by all the Banks, but it would only stand on heavy sums where a director's good offices, or a manager's easy temper and trustful disposition, could admit the deposit with safety. By this means too, when one set of bills became due, it was easy to retire them without exciting suspicion. Bankers and brokers both, however confiding, would soon have been roused to suspicion had they been called on constantly to discount renewals of floating accommodation bills, and the operators would have found ´their chances gone. But things were managed so as to avoid all danger of that kind. When one set of bills fell due the proceeds of others, drawn on quite other houses, would be used to pay them, and it would thus seem as if they had been sent in the usual course of trade. Working thus on a fiction, the gap grew, of course, wider and wider with each batch, because each batch had to carry both the discount of the old and the 'profits' that the operators thought it advisable to appropriate. But for that the system might have gone on and prospered indefinitely. In this way, by shifting, spreading, and mixing the few good with the many bad in ever-changing amounts, the game went on swimmingly till Sanderson's stoppage closed one main channel of re-discounting, when the fabric came to the ground with ignominious suddenness. It was a game played with considerable skill, and the players used every advantage which the rather loosely-jointed credit system of the city allowed to keep it going." ? BANK OF ENGLAND. 329 note issues, the issue of Exchequer Bills, or of Treasury Position Notes in the nature of bank notes, or £1 and £2 notes, or an agreement amongst the banks "to suspend for the moment any return of deposits, and that to meet the difficulty they should issue their promissory notes at three months, bearing nine per cent. interest, and secured by their common liability," all of which projects, however, were, on a little consideration, regarded as impolitic, or absurd and impracticable. There is no doubt, we think, that the Act has, in its general working, been highly beneficial, and that it has admirably served the purposes for which it was passed, its only imperfection being a want of flexibility to meet the pressure of commercial disasters or panics, and this defect might be remedied by the simple means indicated in the following from the ECONOMIST of 14th January, 1882, Vol. XL., p. 41 :-"The German Bank Law of March 14, 1875, has within the last few days, and we understand for the first time, been put to the test. This law permits the Bank of Germany to issue notes on bullion and securities much after the same plan as the Bank of England is under our Bank Act of 1844. But there is this important provision in the German law-that the Bank is allowed to exceed its legal limit on payment of an extra tax to the State, guaranteed in proportion to the excess. This excess was, on December 31, 1881, £1,304,700, and the tax due to the State thereon, £1350. By the next week the Bank showed (in the return of January 7, 1882) a reserve of "tax free notes" of £692,000. The momentary stringency has, therefore, passed off; and it has done so without any enhanced pressure on the market, as the Bank did not consider it advisable to raise their rate of discount to meet the extra expense to them of the tax. The operation of the German Bank Law in this respect compares favourably with that of our Bank Act of 1844. Had a similar event during Crises. Remedies proposed. # > } 3 1 Remedies Proposed. 330 BANK OF ENGLAND. Position occurred here, and the reserve of the Bank of England been during Crises. drawn dry, Lombard Street would have been in a state of commotion with which we have already unfortunately been too familiar-notably in 1847, 1857, and 1866. A letter to the Government from the Bank would have been needed to ask permission to suspend the Act. Deep anxiety would have prevailed till the reply had been received. There has been at least one Chancellor of the Exchequer known whose personal opinion was against allowing this to be done. An Act of Indemnity would subsequently have been required, and all to permit what might readily be arranged to work automatically. Lord Sherbrooke, when Chancellor of the Exchequer in 1873, proposed a measure to meet this very difficulty; but this was hampered with regulations awkward in the working, and was consequently dropped. The present time, when business circumstances are, on the whole, in a calm condition, is a suitable one for considering the question; and it will be an advantage to us if the observation of what has occurred elsewhere draws attention to a subject of great importance to every person engaged in business in this country.” Last Weekly Return in 1881. Of the recent Weekly Returns, the following, being the last in 1881, may be given, and with it a few observations and explanations may be offered, after allusion has been made to some of the leading events of this memorable year :- An Account pursuant to the Act of 7th and 8th Victoria, cap. 32, for the week ended Wednesday, 28th December, 1881- ISSUE DEPARTMENT. Notes issued... £35,311,780 Government Debt...... £11,015,100 Other Securities • 4,734,900 Gold Coin and Bullion 19,561,780 £35,311,780 Silver Bullion £35,311,780 1 BANK OF ENGLAND. 331 BANKING DEPARTMENT. Last Weekly Return in Proprietors' Capital... £14,553,000 Government Securities £13,243,961 1881. Rest 3, 114, 180 Other Securities 24,589,552 Notes..... 9,800,910 Public Deposits, in- Gold and Silver Coin... 755,214 cluding Exchequer, Savings' Banks, Commissioners of National Debt, and Dividend Accounts 6,318,057 Other Deposits......... 24,231,162 Seven-day and other Bills 173,238 £48,389,637 £48,389,637 If made out in the old form used before the Act, the above accounts would show as follows: LIABILITIES. Circulation, including Bank Post Bills...... £25,684, 108 6,318,057 .... 24,231,162 Public Deposits........ Private Deposits ASSETS. Securities £39,030,513 Coin and Bullion ...... 20,316,994 £56,233,327 £59,347,507 The balance of Assets above liabilities being £3,114,180, as appears in the new form under the head “Rest.” During 1881, the fluctuations in the rates were, as will Rates in 1881. be observed from our Table, post Part V., numerous, the year having, in the variation of the value of money, been more than ordinarily eventful. The disturbing causes were mainly the declines that occurred at different periods of the year in the American exchanges, and the extent of the gold shipments that were made to New York and other places. At the beginning of the year the Bank reserves were £12,315,436, and they increased from an influx of gold to £17,888,185, their highest point, on 23rd March, the rates having in the interval been 3, 32, and 3. A diminution in the reserves occurred, for some time after the end of March, in consequence of the payment of the १ I } } + 332 BANK OF ENGLAND. Rates in 1881. dividends, and at the close of July and onwards a continuous outflow of gold took place, which reduced the reserves to their lowest point, £9,918,508, on 12th October, the year closing with them at £10,556,124, as will be seen from the above Return, the rates having in the intervening time been 3, 22, 3, 4, and since 6th October, 5 per cent, the average rate for the year being £3 9s. 7d. } The outside London rates varied in a remarkable manner, and in July, when the bank rate was at 22, three months' bank bills were discounted at 1%, the lowest rate of the year. Before the highest rates were attained, long dated bills were preferred to short, even at lower rates. Later, however, rates rose considerably in proportion, and were maintained at an average of over 4 per cent, the current rate for three months' bank bills being at the close of the year 45% to 434, the bank rate being at 5 per cent. On account of Stock Exchange requirements, however, from 5 to 8 per cent, and by a lower grade of borrowers rates. considerably in excess of the latter, were given for fourteen- Treasury Bills. day loans. With reference to Treasury Bills, when the bank rate was at its lowest, 22 in July, the interest paid by the Treasury was, for bills of three months, I 9s. 8d., six months, £I 14s. 10d.; on 10th August, three months, £2 10s.; six months, £2 9s. ; 7th September, three months, £3 15s.; 8th October, three months, £3 17s. 4d.; six months, £3 19s. 6d. ; 10th November, three months, £3 10s.; 7th December, three months, £3 12s. 4d.; and 3rd January, 1882, three months, £3 18s. 8d., the total amount outstanding after the last allotment being £5,431,000, all maturing on or before 8th April, 1882.* * The following information, with Table, is furnished in the 25th February, 1882, number of the MANCHESTER GUARDIAN, a paper distinguished for the variety and accuracy of its financial and statistical information :— The first issue of Treasury Bills was on March 28, 1877, and the bills then allotted at three months were paid off on maturity—that is, on June 28-because the Treasury thought it would be inconvenient for the public to apply for renewals at the end of the half-year, when money is usually in demand. The bills were re-issued in July. The issues came upon the market irregularly at first, ६ ! BANK OF ENGLAND. 333 Bills. On Exchequer Bills, from the 11th December, 1881, to Rates in 1881. 11th June, 1882, the rate of interest is fixed at 3 per cent Exchequer per annum, against 2 per cent. for the previous half-year. With the Bank minimum at its present rate, 5 per cent, and every prospect of its being farther raised shortly, it may be noted that in the taking up before maturity of Documentary Bills by the drawee, the discount allowed but there is now an allotment regularly each month. The following figures give the particulars of each issue from the first. To avoid confusion between date of allotment and date of issue, the month only is given, for, with the exception of the above instance, the date of issue has always fallen between the 5th and 11th of the month, tenders having been sent in about seven days previously. Three Months. Minimum Price. 1877. March July October.. 1878. January. March April ……… • ... ... 99 10 .99 IO .99 2 6 99 5 6 99 8 8 99 6 6 Equivalent Six Months. Minimum Price. I 17 4 £ S. d. 98 17 3 98 17 5 98 5 0 Equivalent to a Discount Rate of 4223 S. d. 5 6 5 2 to a Discount Rate of £ S. d. £ S. d. 8 О 2 3 10 O 3 10 O 2 18 O .. .... • 2 5 4 2 14 O 98 10 98 15 0 98 13 9 June [] 99 12 Ọ I 12 O 99 I July .99 6 4 2 14 8 September .98 19 6 4 2 о October... .98 19 11 December. 1879. January. February March 99 O II 4 O 4 3 16 4 98 12 6 98 0 98 o O 98 I O oo amo O O O 300 2 10 θα 2 12 6 3 I 17 66 2 15 O 4 O Ос ... • 4 O Ос .. 3 18 O .... + • 99 O O • 99 7 6 4 O O 2 10 O ... 98 I 9 • • April May June July August .99 12 99 7 10 4 .99 15 I 2 8 8 I IO 8 ... 99 99 O O O 2 3 16 6d o Oe 2 I 19 8 0 19 8 .99 15 O 99 16 I O O 99 3 9 I 12 6 O O 16 O 99 4 O .99 15 10 0 16 8 ... 99 4 September October........ November.... December. 1880. .99 13 3 ..99 15 8 I 7 0 O 17 4 .... .99 9 O .99 IO 2 4 O • 8 I 17 4 January 99 IO о 2 O O February March April.... May .99 9 9 .99 6 4 .99 8 5 .99 6 10 2 I 2 14 8 8.5 2 6 4 2 12 8 June July August September October.... November December... .99 6 10...... 2 12 • • .99 12 99 IO 99 8 99 10 .99 12 O 99 9 0.. 4232 I IO · I 19 4 2 8 I 19 0∞ +∞ 10 40 40 0 ..... 5 8 O O 99 O 99 2 6 98 15 0 98 15 4 98 12 7 98 14 7 98 12 0 99 0 2 ... I 12 O I 12 O 2 I 15 2 ΙΟ 0 O 9 0 2 9 2 14 10 2 ΙΟ ΙΟ 2 16 I 19 8 O f O 4 98 10 3 98 14 2 19 6 I 12 2 4 0 ...... 98 14 7 2 II O 2 IO IO 6 1 } 334 BANK OF ENGLAND. t Rates in 1881. him by the banker is at the current Bank of England rate, Documentary so long as that does not exceed 5 per cent, this being Bills. At regarded as the maximum limit, and it is customary for the letter of hypothecation to be crossed with the condition that discount will be allowed at the Bank rate up to 5 per cent, but not beyond this under any circumstances. least the practice has hitherto been as thus stated, but we believe a movement is in progress to alter the basis of the arrangement, and it is already announced that the Indian Exchange Banks have resolved to fix a uniform rate Six Months, Three Months. Equivalent to a Discount Rate of £ S. d. Minimum Price. £ s. d. 98 15 4 ..... Minimum ... Equivalent to a Discount Rate of £ S. d. 294 2 II 6 2 7 7 2. I 19 Price. 1881. January February £ s. d. .99 8 II ..99 5 O 2 4 4 3 O O March 99 8 6 2 6 O 98 14 3 April .99 9 I 2 3 8 98 16 5 May ... June I 12 O 99 o 6 July I 9 8 August 2 IO O 99 2 7 98 15 6 2 9 0 ...... 98 0 3 ... 3 19 6 3076 3oo .... September.. October... November.. December 1882. ... • ... .99 II 99 12 .99 12 • 99 7 6 .99 I 99 O 8 ...98 2 6 ..99 I II I 15 O 3 15 0 3 17 4 • 3 10 3 12 04 4 | O I 14 10 I January February .99 O 4 ..98 19 6 318 8 4 2 O مه a. Bank rate only 2 per cent. b. The amount offered was £1,842,000, and the tenders were for no less a sum than £10,419,000. c. The six months' bills have never since been allotted at so high a price. d. £3,200,000 put up for tender; only £2,200,000 allotted. e. In six months' bills only £7000 allotted, believed at the time to have been a mistake. f. Bank rate only 2 per cent. on the date of allotment. g. On this occasion the average discount rate was first stated; it was £3 195. 8½d. It would have added greatly to the interest of the above figures had it been possible to arrive at the average rate at which the Treasury have obtained their money from the original date of issue. This, however, cannot be done. In the case of the earlier issues, no statement was given of the separate amounts allotted in three and six months' bills, a fact alone sufficient to make it impossible to work out a complete average statement; and, again, the figures now brought together represent the minimum price or the maximum discount rate, and consequently do not accurately represent the rate at which the Govern- ment has borrowed. For instance, in September, For instance, in September, 1878, it was unofficially stated that the average rate paid was not more than 3 per cent., and again last month there was a considerable margin between the minimum price and the average rate. So far as the figures go, however, they show that the Treasury has obtained the temporary loans it required on very favourable terms, through this, the latest form of Government security. The total amount of the bills outstanding is £5,431,000. 1 BANK OF ENGLAND. 335 Bills. to meet all cases, and to allow discount at 2 per cent Rates in 1881. above the published allowance for deposits made by the Documentary London Joint Stock Banks. There appear to be doubts, however, as to whether this plan will be adopted by the Banks generally. East. And with reference to the currency of bills from the Currency of East, reduced by the Indian Banks, at the suggestion of Bills from the the Committee of London Bankers, to four months after sight, in August, 1879, the old currency of six months after sight appears to be now reverted to, a currency which has never been departed from by the Scottish Banks, who accept for their correspondents in the East. During 1881, Consols reached the highest point ever Consols in recorded, their quotation in May being £103, which included 1881. five months' dividend. In June, 1852, they had attained 102 cum dividend. 1881. The total amount of instruments paid at the Bankers' Clearing in Clearing House for 1881-2, or the year ended 30th April, 1882, was the largest yet recorded, the only years in which the amounts approached it being 1872-3 and 1874-5, the amount for the former year being £6,003,335,000, and the latter £6,013,299,000, while for 1881-2 the amount was £6,382,654,000. It may be noted that the year 1881-2 is but the fifteenth during which the statistics have been collected. Another notable feature of the year 1881 was the International Monetary meeting at Paris of the International Monetary Conference, Conference in promoted by France and the United States for the 1881. adoption of an international bi-metallic system of currency, or the coining of both gold and silver, without restriction, at a fixed ratio, and making them full legal tender money. The conference opened on 19th April, and on 20th May it was adjourned for six weeks, when, after a further sitting it was adjourned to 12th April, 1882, three months from our present date of writing, in the hope of further facilitating an understanding between the various states [ 336 BANK OF ENGLAND. International which had taken part at the meeting. Briefly, it has been Monetary Conference in considered that we have both natural and scriptural 1881. Proposed Convention. warrant in believing that gold and silver were intended to be used for money, that selected as money, regulated by law, the principle of supply and demand is inapplicable to them, and is therefore outside the question, in a con- sideration of the subject. That with reference to the ratio of value, there should with the experience of nearly half a century to guide us, be little hesitation, in generally adopting the ratio of 15% of silver to one of gold, which has worked so successfully and been universally followed by the European States using bi-metallic money, and that with the adoption of this ratio it is conceived that little or no disturbance would be occasioned to existing obligations, and that immediate relief would be given to the Indian Treasury. The following are the terms of the convention proposed :- : "Article 1. The United States of America, the French Republic, &c., form themselves into a Bi-metallic Union on the terms and conditions hereinafter stipulated. "Article 2. The members of the Union shall admit gold and silver to mintage without any limitation of quantity, and shall adopt the ratio of 1 to 15% between the weight of pure metal contained in the monetary unit in gold and the weight of pure metal contained in the same unit in silver. "Article 3. On condition of this ratio of 1 to 15½ being always observed, each State shall remain free to preserve its monetary types-dollar, franc, pound sterling, mark—or to change them. "Article 4. Any person shall be entitled to take any quantity of gold or silver, either in ingots or in foreign coins, to the mints of any member of the Union for the purpose of getting it back in the shape of coin bearing the State mark; the mintage shall be gratuitous to the public; each member of the Union shall bear the expense of its mintage. BANK OF ENGLAND. 337 “Article 5. The mints of each State shall be bound to International coin the metal brought by the public as speedily as possible, Conference in Monetary and at the aforesaid ratio of 1 to 15% between gold specie 1881. Proposed and silver specie; the coin thus manufactured shall be Convention. delivered to the person who shall have brought the metal, or to his assigns; if the person bringing gold or silver requests immediate payment of the sum which would accrue to him after the interval of mintage, that payment shall be made to him subject to a deduction which shall not exceed two per thousand; the sum shall be handed over at the will of the paying party in gold or silver coin, or in notes being legal tender and convertible at sight into metallic money. “Article 6. The gold and silver money shall alike be legal tender to any amount in the State which shall have manufactured them. "Article 7. In each State the Government shall continue to issue as a monopoly its small change or tokens; it shall determine their quantity and quality, and shall fix the amount above which no person shall be bound to receive them in payment. "Article 8. The fact of issuing, or allowing to be issued, paper money, convertible or otherwise, shall not relieve the State issuing it, or allowing it to be issued, from the above stipulated obligation of keeping its mints always open for the free mintage of the two metals at the ratio of 1 to 15%. "Article 9. Gold and silver, whether in ingots or in coin, shall be subject to no Customs duty either on importation or exportation. "Article 10. The reception of silver shall commence at the same date in all the mints of the Union. "Article II. The present Convention shall remain in force till the first of January, 1900. If a year before that date notice of its abrogation has not been given, it shall of full right be prolonged by tacit renewal till the 1st of January, 1910, and so on by periods of ten years until such V } } } 1 } 338 BANK OF ENGLAND. International notice of abrogation shall have been given a year prior to Monetary Conference in the expiration of the current decennial period, it being, 1881. Proposed Convention. 2 Legal View of a Double Standard. however, understood that notice of abrogation given by States having in Europe less than twenty millions of inha- bitants, or subject to the inconvertible paper money system, while releasing those States shall not prevent or interfere with the decennial tacit renewal of the present Convention between the other members of the Union." As affecting legal contracts, and a country's internal transactions, the following are the views of a Conveyancer, submitted in his communication to the SOLICITORS' JOURNAL, 20th May, 1882, v. 26, p. 447. "Some time ago, in perusing an Abstract, I came across a mortgage deed of the year 1853 settled by the late Mr. Lewin, in which it was stipulated that, if required by the mortgagee, the principal and interest should be paid in silver. As the currency question and the relation between the precious metals are now receiving a large share of public attention, it seems a favourable opportunity to ask whether any of your readers can throw any light upon this stipulation. "It is, of course, well known that, in 1853, in consequence of the gold discoveries in California and Australia, gold had fallen slightly in value as measured by silver, and it would seem that the Conveyancer contemplated the possi- bility of a further fall. Still it is difficult to imagine any state of circumstances in which the provision in question would have had any operation. So long as gold remained (except for very small sums) the sole legal tender, it would not be to the mortgagee's interest to enforce it; if silver were made the sole legal tender, the provision that payment should be in that metal would be superfluous; and even under a double standard, such as is desired by the Bi-metal- lists of the present day, the enactment relating to legal tender would, no doubt, be held to prevail against any contract or stipulation to the contrary contained in any 1 3 } عمر t 1 BANK OF ENGLAND. 339 instrument. There is, perhaps, one other possible explana- International Monetary tion, but of such slight probability as to be scarcely worth Conference considering. Can it be that Mr. Lewin thought it possible in 1881. that, with greatly altered relative productions of gold and Legal View silver, no legally established ratio of value would be main- Standard. tained. "It would appear then that, even in view of a possible alteration in the law relating to the standard of value, no special provision would be needed in contracts providing for future payments. This consideration derives practical importance from the instance narrated above; for it would undoubtedly be a material argument against any proposed change that it required to be guarded against by especial provisions. In fact, however, the proposals of the Bi-metal- lists-viz., the free coinage of silver, and making silver an unlimited legal tender, carried out by an international agreement entered into by the chief specie-using countries— would probably be found not in any way to affect the internal transactions of any country." "'* * A renewed postponement of the meeting of the International Monetary Conference has been made, and in the meantime there has been formed, in this country, an❝ Association for the establishment of an International Monetary Standard," the object being "The promotion of stability of values: By establishing the free Coinage of Silver, and its use as money, under the same conditions as gold: And by advocating and furthering an international agreement, whereby a fixed relative value between gold and silver may be established, and the two metals may jointly form the currency of civilized nations, thus facilitating the adjustment of international balances, and lessening the excessive and needless risks, which have now become attendant on home and foreign trade. >> Reverting to further incidents in connection with 1881, the year is, as has been observed, an arithmetical curiosity. From right to left and left to right it reads the same. Eighteen divided by two gives 9 as a quotient; 81 divided by 9 gives 9; if divided by 9 the quotient contains a 9; if multiplied by 9, the product contains two 9's; I and 8 are 9; 8 and I are 9. If the 18 be placed under the 81 and added the sum is 99. If the figures be added thus: 1, 8, 8, 1, it will give 18. Reading from left to right it is 18, and 18 is two- ninths of 81. It also reads the same upside down, the first year capable of being so read since 1691. During the year, 1400 Joint Stock Companies were formed and registered, being the largest number ever recorded in any one year. Their nominal capital, if not their paid-up capital, however, was exceeded by that of the companies formed in some of the early years of the Companies' Act. Of of a Double ! 1 1 Comparative Table of Bank Returns and Rates, &c. 340 BANK OF ENGLAND. A table, affording a comparative view of the Bank Returns, the Bank Rate of Discount, the Price of Consols, the Price of Wheat, and the Leading Exchanges, during a period of four years, corresponding with the present date, as well as ten years back, is thus given in the ECONOMIST of 14th January, 1882, Vol. xl., p. 47 :— failures and bills of sale during the year there were, failures: Building trades, 1433; chemists, 168; coal, 271; corn and cattle, 285; drapery, 949; earthenware, 94; farmers, 1014; furniture, 243; grocery, 2511; hardware, 261; iron and steel, 325; jewellery, 230; leather trades, 595; merchants, 1182; printing and paper, 235; wine and spirits, 1289; and miscellaneous, 1535; the total number of failures being 12,620, the net decrease as compared with the year 1880 being 1046, the failures of 1880 having been considerably less than those of each of the two preceding years. Bills of sale: Building trades, 5358; chemists, 351; coal, 1439; corn and cattle, 961; drapery, 2489; earthenware, 284; farmers, 3682; furniture, 682; grocery, 6681; hardware, 1361; iron and steel, 2483; jewellery, 658; leather trades, 1381; merchants, 3877; printing and paper, 934; wines and spirits, 3555; and miscellaneous, 17,702; the net decrease in the number of bills of sale as compared with 1880 being 3457. The numbers of the estates actually administered were, according to the report of the Comptroller in Bankruptcy, 9727, against 10,298 in 1880. The estates of 1881 were, generally speaking, of the same small class as those of 1880. Thus the average liabilities in the bankruptcies of 1881 were £2715, and the average value of the estates only £318. In the liquidations by arrangement, the average liabilities were £2041, and the average value of estates £688. In the compositions, the average liabilities were 1227, and the average value of estates £282. The largest census ever taken in the British Islands was in 1881, and the year was also distinguished for the greatest number of comets (seven) ever seen in one year in England, for the widest variations in weather, great frosts, heavy falls of snow, strong and destructive gales, continuous north-easterly winds, frequent rains, and sunless skies. There was also the rare incident of a ground frost in June, followed by a day in July hotter than any ever scientifically recorded in England. In other countries there were extremely destructive forest fires, landslips, and earthquakes. Amongst numerous minor events, the quickest sea-passages on record between England and Australia, and between England and North America, were made during the year. Further, it may be added that on the 9th April, 1882, occurs, according to Astronomy, the anniversary of the actual date of the first Easter. It is to be hoped that the disciples of Astrology are less reliable in their conclusions, for we have Nostradamus in his quatrains thus prophesying Quand Georges Dieu Crucifera, Que Marc le ressuscitera, Que Saint Jean le portera, La fin du monde arrivera ;' " or, when Good Friday falls on St. George's Day, Easter on St. Mark's Day, and the Corpus Domini on St. John's Day, then shall the world come to an end. "The Calendar shows that in 1886 this rare and almost unprecedented conjunction will take place, Easter Day falling that year on the 25th April, St. Mark's Day." ་ 1 ' BANK OF ENGLAND. 341 At corresponding dates with the present week. January 10, 1872. January 15, 1879. January 14, 1880. January 12, 1881. Jannary 11, 1882. Compara- tive Table of Bank £ £ £ £ £ Returns Circulation (excluding Bank-post Bills) Public Deposits Other Deposits.. Government ties.... Securi- Other Securities Reserve of Notes and Coin Coin and Bullion.. Proportion of Reserve to Liabilities.... Bank Rate of Dis- 25,373,130 32,666,210| 27,401,695 26,548,695 25,937,385 4,151,975 4,409,889 4,418,271 5, 162, 123 4,299,749 25,694,584 32,837,093 31,805,488 25,338,715 24,737,807 | 16,696,099|| 18,942,974 20,004,788 15,253,300 14,811,986 16,930,350| 25,150,812 19,047,984 20,825,094 | 22,294,192 || 14,528,780 11,517,178 15,346,001 12,578,294 10,074,789 24,901,910 29,183,388 27,747,696 24,126,989 20,262, 174 48% 30%% 42% 40%° 3438% count 3% 4% Price of Consols 92% xd. 96% Average 3% 978 32% 5% Price of 98% 1004 54s. IId. 39s. 7d. 46s. 2d. 43s. 4d. 44s. 9d. and Rates &c. Wheat Exchange on Paris (short) Exchange on Amster- dam (short) Exchange on Ham- burg (3 months) Clearing House Re- turn 25 55 70 2522½ 27½ 25 17½ 22 25 30 35 25 22½ 27½ II 17½ 18 12 4% 5 12 034 13 12 1½ 22½ 12 14 2¼ 13 94 10 20 67 20 56 20 64 20 66 70 102,958,000 97,702,000 88,671,000 161,622,000 119,391,000 The amount of the "other deposits," compared with the "other securities," showed, in 1872, an excess of £8,764,234; in 1879, an excess of £7,686,281; in 1880, an excess of £12,757,504; in 1881, an excess of £4,513,621. In 1882 there is an excess of £2,443,615. With reference, generally, to the rates allowed by the Interest banks and bill brokers in London, the usual practice London allowed by appears to be to allow for money at call I per cent under Banks, &c. the Bank rate when that does not exceed 4. If 42, then 3 is allowed; if 5, 3%; and if 52, 4. When 6 or upwards is attained, a rate is arranged by the banks, which is adopted generally by the bill brokers, who, however, for money at notice" usually give a little more than the banks.* * With the Bank rate at 6 per cent, the whole of the Scottish Banks announce that interest on Deposit Receipts will be at the rate of 4 per cent, but no interest to be allowed unless the money has been lodged a month. That on current accounts, interest calculated on the minimum monthly balances will } • t + } } 1 t Explanation of Weekly Return. 342 BANK OF ENGLAND. * For the better information of the young banker, we shall now proceed to give some explanation of the various items in the Weekly Return, selecting for our purpose that of 28th December, 1881, ante pp. 330, 331. Of the issue department it will be observed that the amount of the first item on the credit side is £11,015,100. This sum forms that portion of the capital of the Bank which has been lent to the Government, and against this, with the succeeding item of £4,734,900, invested chiefly in Government securities, and both amounting to £15,750,000, is made that portion of the note issue which the Act allows to be circulated by the Bank upon securities-see ante page 325. Upon the third and fourth items depend the additional note issues of the Bank. In the above instance, the amount of gold coin and bullion in possession of the department is £19,561,780, the silver bullion being returned blank, and against this amount of specie the department issues an equivalent amount of notes, the addition of the entire credit side giving the total amount of notes issued as on the debit side, £35,311,780, and thus is balanced the account of the issue department. With regard to the proportion of silver bullion to be retained in the issue department, it is enacted by section 3 of the Act that, "whereas it is necessary to limit the amount of silver bullion on which it shall be lawful for the issue department of the Bank of England to issue Bank of England notes: be it therefore enacted, that it shall not be lawful for the Bank of England to retain, in the issue department of the said Bank at any one time, an amount of silver bullion exceeding one-fourth part of the gold coin and bullion at such time held by the Bank of England in the issue department." Previous to 1844, and for several years I be at the rate of 2½ per cent, and calculated on the daily balances, 1½ per cent. It is stated, close of 1881, that in Constantinople, where the legal rate of interest always has been 12 per cent, the rate now in account current with the leading banks is actually lower than it is in London. 1 } • 拳 ​BANK OF ENGLAND. 343 afterwards, the Bank issued notes against silver bullion, Explanation and the following figures, from 1844 to 1850, show the average amount of silver bullion held :— of Weekly Return. 1844 1845 1846 1847 1848 1849 •£ 1,640,000 1,51 1,000 2,169,000 1,373,000 I,125,000 336,000 1850 195,000 After the gold discoveries in California and Australia, and the consequent rise that took place in the value of silver, it was thought undesirable to retain the silver bullion, and since 1853, when it ceased to be held, after being continuously diminished since 1850, its use has not been resumed excepting for a short time in 1860 and 1861, when the Bank of France was accommodated with gold in exchange for silver. By section 4, the issue department is bound to receive all gold that may be offered to it and to give notes in exchange, the terms of the enactment being, that "all persons shall be entitled to demand from the issue depart- ment of the Bank of England Bank of England notes in Exchange for gold bullion, at the rate of £3 17s. 9d. per ounce of standard gold; provided always that the said Governor and Company shall, in all cases, be entitled to require such gold bullion to be melted and assayed by persons approved by the said Governor and Company, at the expense of the parties tendering such gold bullion." Thus, as the quantity of bullion increases or diminishes, so, in a corresponding degree, will the issue of the Bank notes. It does not follow, however, that the whole of these, in their issue through the banking department, find their way into the hands of the Bank's constituents. A large 344 BANK OF ENGLAND. Explanation amount is always kept unused in the Bank, but ready for of Weekly Return. circulation; and it is this amount, along with a certain amount of gold and silver coin, that form, as will presently be seen, the reserve which is kept for the daily wants of the Bank. The rules of the Act, in relation to the issue department, it will thus be perceived, are plain and simple, and a strict adherence to these must be given by the managers of that department. Of the return from the banking department, it will be observed that the debit side commences with the item "Proprietors' Capital, £14,553,000." Originally the capital was £1,200,000, all of which was lent to Government, and for which sum interest at the rate of 8 per cent was received, with a further amount of £4000 a year for the expense of management. After sundry changes and additions. made at various intervals, the capital was, in 1782, increased to £11,642,400, and in 1816 it was raised to its present amount, £14,553,000, by an addition of 25 per cent from the profits of the Bank, under the provisions of the 56 Geo. III., c. 96. At the renewal of the Bank Charter in 1833, by the 3 and 4 William IV., c, 98, it was directed by the Act that the sum of £3,671,700, or the fourth part of the debt which had become due by the public to the Bank, should be repaid, allowing the Bank, if she choose, to deduct it from her capital. But this not being done, the capital continues at £14,553,000, and for that portion of it in the hands of the Government interest at the rate of 3 per cent is received. This interest, and that derived from the other securities in which the capital is invested, form one portion of the profits accruing to the shareholders. Of the second item on the debit side of the Return "Rest £3,114,180." This is the surplus of the Bank's assets over its liabilities, and, of course, varies from week to week. Of the third item, the "Public Deposits." These include the public moneys received from the various departments of revenue, and out of which are paid the quarterly dividends 書 ​BANK OF ENGLAND. 345 on the National Debt, and the civil, military, and other Explanation of Weekly expenditure of the Government. The fourth item or Return. "Other Deposits" comprise some of the Government accounts, the moneys deposited at call by private and joint stock banks, insurance and other companies, as well as by private individuals, and the fifth item of "Seven-day and other Bills" are those short-dated bills issued by the Bank, but for payment of which it does not become liable until they fall due. With this item concludes the debit side of the Return, amounting as above to £48,389,637, and for which the Bank is to its own proprietary and others neces- sarily liable. On the other, or credit side, there is first the item "Government Securities, £13,243,961," and which comprises the various kinds of Government Securities held by the Bank for the purpose of easy conversion into cash, so as to increase its stock of bullion when needful, or to repay deposits or grant increased accommodation to the public on discounts. On referring to the weekly return of 11th November, 1857, ante page 326, it will be observed that the Government Securities included the "Dead Weight Annuity." This was an annuity of £585,740_receivable by the Bank for 44 years from the year 1823, in consideration of the sum advanced to the Government for the payment of naval and military pensions and retired allowances, and in "Fortune's Epitome of the Funds" its history is thus given :-" At the close of the war the naval and military pensions and retired allowances amounted to £5,000,000 per annum, diminishing, of course, with every year, but in an uncertain ratio. Government, desirous to relieve their present necessities by spreading the burden more equally over the 45 years which were calculated as the probable duration of the lives, proposed, in 1822, to pay to any capi- talists who might be willing to engage with them an annuity of £2,800,000 for 45 years, on condition of provision. + • ¿ } 1 346 BANK OF ENGLAND. Explanation being made for the pensions on the basis of a graduated of Weekly Return. scale of payments, commencing in the first year at £4,900,000, and ending at £300,000. The offer was not accepted; but in 1823 the Bank agreed, on condition of receiving an annuity of £585,740 for 44 years ending 10th October, 1867, to provide before 1828 the sum of £13,089,419. This was accordingly done, and the Bank is to this day in receipt of the annuity, which was valued in June, 1832, at £10,935,227, and is considered equivalent to a perpetual annuity of £470,319 10s." J The second item, or "Other Securities," consists princi- pally of mercantile bills discounted by the Bank, and retained in its possession until they fall due. Railway Debentures and Foreign Government Stocks are also included in this heading. The third item of "Notes" comprises the unused portion of the notes received from the issue department, and the fourth item of "Gold and Silver Coin" consists of the ordinary cash in hand kept by the Bank for any immediate demand on the part of its consti- tuents or noteholders, and it is these two items that form the "Reserve" of the Bank, and which, by their increased or diminished amount, furnish the best index of the state and prospects of the money market. As a rule, the rate of discount is regulated by the changes in the reserve, when low, the rate being raised, and when high, diminished. To ascertain the amount of the notes in actual circulation amongst the public, it is only necessary to deduct the third item from the amount of "Notes Issued" in the Return from the issue department, thus, by deducting £9,800,910 from £35,311,780, it will be found that the notes in circulation amount to £25,510,870. With the fourth item above-mentioned terminates the credit side of the Banking Return, which, on being added, gives the sum of £48,389,637, and thus balances the debit side of the statement. · < F BANK OF ENGLAND. 347 For conversion to the old form of Return, ante p. 331:- Explanation ADD:- ADD:- …………………..£35,311,780 Government Debt of Weekly Return. ………………….£11,015,100 and And other Securities in Seven Day and other Bills 173,238 Notes Issued.. C DEDUCT:- Issue Department...... 4,734,900 and £35,485,018 Government Securities..... 13,243,961 The Reserve Notes of...... 9,800,910 Thus giving the "Circula- And other Securities in Banking Department.. 24,589,552 DEDUCT:- £53,583,513 Proprietors' Capital......... 14,553,000 ...£25,684,108 | Thus giving the "Securi- tion, including Bank Post Bills " ADD:- Public Deposits, same as in Banking Department ... 6,318,057 ties" Private Deposits, same as "Other Deposits in Banking Department... 24,231,162 ADD:- Gold Coin and Bullion in Issue Depart- ment........£19,561,780 and Gold and Silver, ·£39,030,513 Coin in Bank- ing Depart- ment 755,214 20,316,994 1 Making the total of Liabilities D £56,233,327 Making the total of Assets ..........£59,347,507 Some Points of Bank's The management of the Bank of England is vested in a governor, deputy-governor, and twenty-four directors. The Practice. qualification for governor is the possession of £4,000, for deputy-governor £3,000, and for each director £2,000 of the capital stock of the Bank, and proprietors must have held £500 stock for six clear months to entitle them to vote at the general courts. Some years ago the Bank had various special regulations for the conducting of its accounts and the general transaction of its business, but these, no doubt, have been modified since in many respects, and it is not unlikely the course of events may induce it to follow more closely the practice, in its main features, of other banks. For the last 60 years it has, with some recent exceptions, 1 ་ > } Some Points of Bank's Practice. Note Issues. 348 BANK OF ENGLAND. we believe, refused to discount bills having more than 95 days to run, but it freely makes advances for short periods on bills maturing within six months, and on other approved securities. For some years past the minimum period for the duration of such advances has been five days, but in May, 1882, the period was extended to ten days, and now, December, 1882, it has been lengthened to fourteen days. Soon after the panic of 1857 the Bank altogether refused to re-discount to the Bill Brokers, a step intended to put some restraint upon the system prevalent amongst them, many of whom held large sums on deposit at interest, of granting unlimited accommodation upon bills bearing Joint Stock Bank endorsements, the brokers knowing that with such their relief by the Bank could be depended upon in times of pressure, and that ultimately their position on the bills. was safe in consequence of the unrestricted liability of the Joint Stock Bank shareholders. The Bank never re- discounts the acceptances held by it, and this fact, it appears, induced a gang of forgers not long since to resort to the following design. With money to the amount of a few thousand pounds already in their possesssion, they opened an account, representing themselves as Railway Contractors. They shortly afterwards presented genuine acceptances, which were discounted and duly met. Having thus gained the confidence of the bank, they then paid in a large amount of forged bills and obtained an advance against these, and the fraud would never have been dis- covered, until their maturity at a distant date, had not there been an accidental omission in one of them which led to immediate inquiry and detection. In 1759 the Bank commenced issuing £10 and £15 notes, the lowest denomination of its notes before that time having been £20. At first it allowed interest at the rate of 2d. per cent per diem on the notes in circulation ; a practice, however, which was but of short continuance. In 1794 it first issued its £5 notes, and in 1797 there NOTE ISSUES. 349 were issued £1 and £2 notes; but their issue may be said Note Issues. to have ceased in 1821. Their circulation followed the English passing, in March, 1797, of the 37 Geo. III., c. 28, which Banks. authorized the issue of notes under £5; and, under the Bank Restriction Act, 37 Geo. III., c. 45, passed on 3rd May, 1797, the Bank was restricted from making payments in gold, a restriction acted upon under several renewal acts, excepting at intervals from 1817 until 1821, when the Bank recommenced payment of its notes in coin. During the panic of 1825 there were found a number of I notes in an old and long-forgotten chest, and these were issued to the relief of the Bank for the time. We have seen, ante p. 232, that by law all banks in England were, after 5th April, 1829, prohibited from issuing notes payable to bearer on demand for less than £5. By section 7 of the Bank Charter Act, 1844, the Bank of England is released from the payment of any stamp duty upon its notes payable to bearer on demand, and they may be signed by machinery—1 Geo. IV., c. 92, s. 3; and 16 and 17 Vict., c. 2, S. I. Of the English provincial banks the note issue has, since the passing of the Act of 1844, been gradually diminishing; a circumstance arising from the cessation of business of some of these institutions, the incorporation of one bank with another, and the relinquishment by several of their own issues for those of the Bank of England. In March, 1858, the fixed issues of the issuing Private Banks, 153 in number, amounted to £4,432,790, and those of the 63 issuing Joint Stock Banks, to £3,303,357, giving a total of £7,736,147 for the authorized issues of the Country Banks. At that period the notes in actual circulation amounted ordinarily to about £6,500,000, while those of the Bank of England reached about £28,000,000, five or six millions of which usually formed part of the reserve in the Bank. At present, October, 1881, the fixed issues of the issuing Private Banks, now reduced to 103 in 2 } } 1 1 } { Note Issues. English Banks. Scottish and Irish Banks. 350 NOTE ISSUES. number, amount to £3,548, 166, and those of the issuing Joint Stock Banks, now reduced to 47 in number, to £2,400,556, giving a total of £5,948,722, for the authorized issues of the Country Banks. Ordinarily the notes in actual circulation amount to about £3,500,000, while those of the Bank of England vary greatly, the range of late years being gener- ally, excluding, of course, the reserve, between £25,000,000 and £28,0000,000, though at times and under exceptional circumstances, the circulation reaches a much higher amount. In 1810, under the old unrestrained circulation, the amount of Country Bank notes issued was little short of 24 millions, while the Bank of England circulation was over that amount, a state of matters which brought down the value of bank notes, as compared with gold, to a discount of 16 per cent, and from the continuance of the over issues they fell in the course of several subsequent years to 20, 23, and at last, in 1814, when the maximum of depreciation was attained, to a discount of 25 per cent. From the benefits which have accrued under the new system of circu- lation, and the extended use of Bank of England notes, it is not unlikely that in the course of time the note issues will be exclusively confined to the Bank of England, an object which Sir Robert Peel had evidently in view, and there appears to be a growing opinion that it would not be undesirable to have the issuing powers exclusively centered in the Bank, not only for this country, but for the Three Kingdoms at large, and that in the meantime an improve- ment in the English currency might be effected by the introduction of £1 notes. In 1845, or a year after the passing of the 7 and 8 Vic., c. 32, for England, measures, likewise introduced by Sir R. Peel, were adopted for the regulation of the note circulation in Scotland and Ireland. By these, the 8 and 9 Vic., c. 37 for Ireland, and the 8 and 9 Vic., c. 38 for Scotland, the power of issuing notes was confined to those banks which issued notes in the year preceding the 1st of May, 1845, the t 、 སྭ 1 1. NOTE ISSUES. 351 Irish Banks. issues being limited to the average amount of those in Note Issues. circulation during that year, and to any amount of gold and Scottish and silver coin that may be in the vaults of the Bank, the silver, however, not exceeding the proportion of one-fourth part of the amount of gold. Of the sixteen Scottish Banks in July, 1858, the authorized circulation was £3,087,209, and of the six issuing Irish Banks £6,354,494, while ordinarily the actual circulation was about £10,000,000, or £4,000,000 for the Scottish Banks and £6,000,000 for the Irish Banks. The Scottish Banks are now, 1881, reduced to ten in number, and their fixed issue is £2,676,350. The Irish Banks remain the same in number, with the same fixed issue of £6,354,494, the average circulation during the four weeks ending 22nd October, 1881, having been £5,570,068 for the Scottish Banks, and £6,989,087 for the Irish Banks, together £12,559,155. Previous to 1765 notes for a less sum than £I were allowed to be circulated in Scotland. The principal differences, besides those which will have been already observed, in the banking systems, as regards the issues of England, Scotland, and Ireland, may be thus briefly enumerated :— In Scotland and Ireland notes down to the value of £1 Distinctions in may be issued. In England no note can be issued for less than £5. The Scottish banks, unlike those in England and Ireland, are all Joint Stock Banks, and are all banks of issue. The notes of the Scottish Banks are only payable in gold at the head office of the respective banks. In England and Ireland the notes are payable in gold at the branches where they have been issued. The English Provincial Banks cannot exceed their fixed issues. The Scottish and Irish Banks may do so, if, as in the case of the Bank of England, they have an amount of gold and silver in their vaults equal to the excess of issue. In England, if two Joint Stock Banks of issue unite, one Issues of English, Scottish, and Irish Banks. 352 BANK OF SCOTLAND. Distinctions in loses its circulation. Issues of English, Scottish, and Irish Banks. Bank of Scotland. Some of its Regulations. In Scotland and Ireland, if two banks unite, the united bank may issue to the amount of the circulation of both the banks so united. And in England, if a bank of issue discontinue its circulation and adopt the issue of Bank of England notes, the Bank of England can only issue to the extent of two- thirds of the issue of the bank whose notes are withdrawn ; while in Ireland, in a similar case, the Bank of Ireland may extend its issue to the amount of the whole of the with- drawn circulation. Of the Bank of Scotland, instituted in 1695, and described as a public national institution, erected and regulated by the legislature alone, for the benefit of the nation and for the advancement of agriculture, commerce and manufactures, and other objects of public policy, the management is by statute vested in a governor, deputy- governor, twelve ordinary and twelve extraordinary directors, the whole of 'whom swear to be equal to all persons. The executive is conducted by a treasurer, and a number of other public officers, all sworn, those having the official charge of cash finding due security. Money is received by the Bank at all its public offices on deposit receipts, or on current deposit accounts. At the Head Office and Branches drafts are issued on the London, Dublin, and English and Irish provincial correspondents of the Bank. Remittances. may be made to the principal colonial and continental towns, and bills payable in the colonies and in foreign countries may be negotiated through the Bank. Bills on any town. in the United Kingdom are discounted at all the Bank's public offices, the branch managers or agents themselves judging in ordinary cases of the bills presented, so that no delay is incurred in the negotiation. The Bank does not re-issue the bills it has discounted. Government Stock and other public funds may be purchased or sold, and divi- Cash Credits. dends thereon received through the Bank. Credit on cash. accounts on bond with security is given by the Bank at ! BANK OF SCOTLAND. 353 any of its offices. The security may be personal co-obli- Cash Credits. gants, or such other security as may be specially agreed on. Applications for cash accounts must be given into the office where the cash account is wanted, and must specify the credit desired and the security proposed, and the individual partners, where co-partneries are proposed. It was in 1729 that the “cash credit" system, the distinguishing feature in Scottish banking, was introduced by the Bank of Scot- land, and to it allusion is thus made in the Report of the Lords' Committee of 1826, on Scottish and Irish Banking: "There is also," say their lordships, "one part of their system which is stated by all the witnesses (and, in the opinion of the Committee, very justly stated) to have had the best effects upon the people of Scotland, and particularly upon the middling and poorer classes of society, in producing and encouraging habits of frugality and industry. The practice referred to is that of cash credits. Any person who applies to a bank for a cash credit is called upon to produce two or more competent sureties, who are jointly bound, and, after a full inquiry into the character of the applicant, the nature of his business, and the sufficiency of his securities, he is allowed to open a credit, and to draw upon the Bank for the whole of its amount, or for such part as his daily transactions may require. To the credit of the account he pays in such sums as he may not have occasion to use, and interest is charged or credited upon the daily balance, as the case may be. From the facility which these cash credits give to all the small transactions of the country, and from the opportunities which they afford to persons who begin business with little or no capital but their character, to employ profitably the minutest products of their industry, it cannot be doubted that the most important advantages are derived to the whole community. The advantage to the banks who give these cash credits, arises from the call which they continually produce for the issue of their paper, and from the W 354 BANK OF SCotland. Cash Credits. Opportunity which they afford for the profitable employ- ment of part of their deposits. The banks are indeed so sensible that, in order to make this part of their business advantageous and secure, it is necessary that their cash credits should (as they express it) be frequently operated upon, that they refuse to continue them unless this implied condition be fulfilled. The total amount of their cash credits is stated by one witness to be £5,000,000, of which the average amount advanced by the banks may be one-third." Former Privileges. Bank of Scotland stock may be conveyed by will and, if specially mentioned, without expense of confirmation. It cannot be arrested, but the dividends may. The holder's right may be adjudged. Wm. III., Parl. I, s. 5. By this Act of the Scottish Parliament, which established the Bank of Scotland, it was declared that all foreigners who became partners in the Bank should, by doing so, become to all intents and purposes naturalized Scotsmen. This clause, however, was abrogated in 1822. The Bank, too, had the exclusive privilege of banking in Scotland for 21 years from its establishment, a privilege which was not renewed. The subscribed capital of the Bank is Capital, &c. £1,875,000 sterling, of which £1,250,000 has been paid up. Its original capital was £1,200,000 Scots, or £100,000 sterling, divided into 1200 shares. A year after its establishment it began to form branches, and in 1704 it first issued notes for £1 each. No exclusive privileges, resembling those of the Bank of England or Bank of Ireland, are enjoyed by either this or any of the other Scottish banks, there being this distinction, however, amongst them, that the three older banks-the Bank of Scotland, Royal Bank of Scotland, established in 1727, and British Linen Company Bank, established in 1746—are chartered banks, claiming limited liability for their shareholders to the amount of capital for which they have subscribed. The remaining seven unlimited Scottish • BANK OF IRELAND. 355 1 constitution of banks, however, have just, December, 1881, formed an Change in arrangement to adopt the principle of limited liability Scottish under the Act of 1879, which owed its origin to the failure Banks. of the City of Glasgow Bank. It is proposed that each bank should register with a subscribed capital of five times its present paid-up capital, and if this is carried out the position of each bank will be as follows:- 1 Subscribed Capital. Paid-up Capital. Reserve. Deposits. Aberdeen Town and County Bank Limited Caledonian Banking Company Limited £ £ I,260,000 252,000 750,000 I 50,000 £ 127,153 £ 1,890,324 51,041 750,207 Clydesdale Banking Company Limited 5,000,000 1,000,000 570,256 7,203,525 Commercial Bank of Scotland Limited 5,000,000 1,000,000 540,866 9,212,844 National Bank of Scotland Limited 5,000,000 1,000,000 644,303 12, 138, 181 North of Scotland Banking Company Limited……….. 2,000,000 400,000 208,913 2,668,332 Union Bank of Scotland Limtd. 5,000,000 1,000,000 418,134 10,150,931 LIMITED BY CHARTER. Bank of Scotland 1,875,000 1,250,000 781,122 12,421,926 British Linen Company Bank 1,000,000 1,000,000 Royal Bank of Scotland 655,750 9,208,284 2,000,000 2,000,000 734,953 | 12,400, 524 { 28,885,000 9,052,000 4,732,491 | 78,045,078 It will be thus seen that the three senior chartered banks, will, in so far as uncalled capital is concerned, compare unfavourably with the other banks, a point of some consequence to the depositor. one of its To the Bank of Ireland, established in 1783 under the Bank of Act of the Irish Parliament, 21 and 22 Geo. III., c. 16, Ireland. privileges were granted somewhat similar to those which Effect of were given to the Bank of England, and to one of these, privileges. the restriction of not more than six partners for the purposes of banking, may be attributed the injury and loss which Ireland for a long series of years sustained by the successive failures and delinquencies of that miscellaneous class of Effect of one of its privileges. &c. 356 BANK OF IRELAND. traders, petty and otherwise, into whose individual hands the note issues of the country were permitted to fall, and the extent of whose banking knowledge was, as has been remarked, about as great as that possessed by the wares in which they severally trafficked. To remedy this state of things an Act, the 1 and 2 Geo. IV., c. 72, was passed in 1821, allowing the formation of Joint Stock Banks at a distance of 50 Irish or 63 statute miles from Dublin, and this being followed in 1824 by the 5 Geo. IV., c. 73, which repealed various restrictions that still continued and restrained the operation of the former act, sundry Joint Stock Banks were established, the most important of which was the Provincial Bank of Ireland, formed in 1825, and which from the number of its branches and the prudence and skill displayed in its administration, has been of singular benefit to Ireland. Its system of business is the same as that of the Scottish Banks, and its notes are received by the Irish Government in payment for duties and taxes equally with the notes of the Bank of Ireland. The original capital of the Bank of Ireland was £600,000, Capital and Management, and after several additions at various times it was augmented in 1821 to its present amount of £3,000,000 Irish currency, or £2,769,230 sterling. The management of the Bank is vested in a governor, deputy-governor, and fifteen directors, who are respectively required to take the oath of allegiance, the oath of fidelity to the Bank, and the oath of qualifica- tion by possession of stock £4,000 for governor, £3,000 for deputy-governor, and £2,000 for each director. It did not begin to establish branches until 1825, and their number now, 1881, is 59, including two sub-branches. By 48 Geo. III., c. 103, the management of the public debt was given to the Bank. By the 23 and 24 Vict., c. 31, the restriction against advancing money on the mortgage or on sale of lands, tenements, or hereditaments, redeemable, has been repealed, and under 27 and 28 Vict., c. 78, its notes and bills may be signed by machinery. 1 I CHARTERED COLONIAL BANKS. 357 Under the 8 and 9 Vict., c. 37, by which a further repeal Capital and Management, of the banking restrictions in Ireland was effected, the &c. Irish Joint Stock Banks can now establish branches within the 50 miles, or at any distance, from Dublin, and they have the power of retiring their notes there. Up to the present time, end of 1881, balance sheets have not been published by the Bank of Ireland, nor by the Provincial, Belfast, and Northern Banks, though, in the event, as it is likely, of the last three registering under the Limited Liability Act of 1879, this want will be supplied, leaving only a hiatus in the case of the Bank of Ireland, which, however, in the course of time, may follow the example of the other Banks in the publication of a full balance statement. Colonial Of the Chartered Colonial Banks, the charters of several Chartered of these are approaching their termination, or have already Banks. expired. The charters of the older Banks were renewals for 21 years of the originals, while the renewal charters granted more recently to the other Banks were for not more than ten years. The charter of the Bank of British North America having come to an end on Ist June, 1881, the Treasury granted an extension until 1st June, 1882. The charter of the Oriental Bank expires in August, 1882, and the charters of the London Chartered Bank of Australia, and the Bank of British Columbia, terminate in 1883. Amongst this description of banks, however, there are two exceptions, the charter of the Bank of Australasia being in perpetuity, and that of the Colonial Bank subsists during the Queen's pleasure. A "model charter" for the whole of New Charter. the Chartered Banks, was in the early part of 1882, prepared and submitted to them by the Treasury, the following being the substance of the charter:-1. Existing charters, with all the powers, privileges, and provisions therein contained, are extended for a further period of ten years. 2. The Treasury shall cease to have or exercise any powers or duties vested in them by the original charter. 3. Notwithstanding 358 CHARTERED COLONIAL BANKS. New Charter. anything contained in the original charter, each company may, with the assent of its members, testified by special resolution, increase its capital by the issue of new shares. 4. The assent of the Treasury to special transactions is dispensed with, and a special resolution of the share- holders is to be considered to supersede the sanction of the Treasury. 5. Notwithstanding anything contained in the original charter, but subject to the restrictions of the new charter, the directors may, by special resolution of the shareholders, exercise any discretionary power given by the said original charter to the Treasury. 6. A resolution shall be deemed special when passed by a majority of not. less than three-fourths of the votes of such members of the company as are entitled to vote. 7. Unless a poll be demanded by five members, the declaration of the chairman that a special resolution has been carried, is to be conclusive. And 8. The liability of any of the members of the com- pany is not to be in any way affected by the new charter in respect of the payment of calls, debt, or otherwise. It was intimated also that each application by the Chartered Banks to come under the new charter would lie on the table of the Houses of Parliament for thirty days, after which time, should no objections have been made, the charter would be granted by the Crown. At present, December, 1882, action appears to have been suspended both on the part of the Chartered Banks and that of the Treasury, the latter waiting apparently for an expression of opinion by the whole of the banks, most of whom, we believe, are not unwilling to accept the proposed charter. PART V. BANK OF ENGLAND RATES. ! Observations. In connection with the subjoined table of the minimum General rates of Discount of the Bank of England since its establishment in 1694, the following general observations may be made. From the end of 1694, until the Early Rates. beginning of 1696, the rate with deposit account holders was, as a rule, on inland bills 4½ per cent, and on foreign bills 3 per cent, while with all other persons the rate on both descriptions of bills was 6 per cent. After this period until 1773, the rates were equalized to all classes of persons, and fluctuated, as will be observed, between 4 per cent and 5 per cent, though in 1704, a distinction was made between foreign bills payable, and those not payable at the Bank, the rate in the former case having been 4 per cent, and in the latter 5 per cent; and later on, in 1742, 5 per cent was the rate on bills drawn in, and 4 per cent on those drawn out of the Kingdom. From the middle of 1822 downwards, foreign and inland bills have borne the same rate, the limit to their currency being 95 days. ↓ 1 L $ 1 General Observations. Former Difficulties of Bank. Variations in Rates. 5 Recent Crises. 360 BANK OF ENGLAND RATES. In 1696 and 1697, the Bank was involved in difficulties from the recoinage, which occasioned a scarcity of specie, and its notes fell to a discount of 20 per cent. In 1745, there was a run upon the Bank occasioned by the advance of the Chevalier and his Highlanders. From 1756 to 1773, a succession of wars occasioned latterly, great distress ainongst all classes, and difficulties to the Bank. Between 1781 and 1800, from wars with France, there were exhaustive drains of specie, and the Bank became involved in some of its greatest difficulties, and early in 1797 it, as we have already seen, suspended cash payments. From 1800 to 1825, owing to over- issues and other causes, its notes fell heavily in value. At the end of 1825 occurred a general panic, the result of overissues and inordinate speculation in all kinds of undertakings both home and foreign. It will be observed from the table, that to the middle of 1839, there was little variation in the rate of discount, notwithstanding the preceding events, but that since then, to the present time, the changes in the rate have been very frequent and very great, the Bank having forsaken its old policy of adhering to a uniform rate as much as possible under all circumstances. In 1839, a pressure occurred from over speculation, being almost a repetition of that which took place in 1836, but in the former year was super-added the effects of the Afghan war. In 1847, occurred a panic attributable mainly to railroad speculation, or the "Railway Mania," as it has been called. In 1855 and 1856, were the wars with Russia and China, followed in 1857 by the Indian Mutiny, and in the closing months of the year a severe panic occurred, occasioned mainly by the commercial crisis in America, brought on by fraudulent railway and financial management, and in London by numerous commercial failures; while in Scotland BANK OF ENGLAND RATES. 361 Observations. Crises. occurred the stoppage of the Western Bank of Scotland. General At the close of 1860, there was a withdrawal of gold by the Bank of France; and in 1861 took place the war Recent between the Northern and Southern States of North America, the effects of which during its long continuance were severely felt, more particularly in 1863 and 1864, in this country and some of the Continental States. At the end of 1865 a drain of specie set in, and in 1866 a great panic followed the failure of some of the largest discount and commercial houses in London, particularly those which occurred in May of that year, and which involved the stoppage of, amongst other banks, three solvent Banks, the Consolidated Bank, the Agra and Masterman's Bank, and the Bank of London; the first two, however, subsequently resuming business. In 1870, broke out the short but decisive war between France and Prussia. In 1872, a great drain of gold set in, occasioned by the French war indemnity, the greater part of which was paid in 1872 and 1873; and in the latter year occurred the German, Austrian, and American crises. At the close of 1874, there was a drain of gold to Germany. Various commercial failures occurred in the first half of 1875, the chief sufferers being the banks, and towards the end of 1878, a crisis was brought about by the stoppage of the City of Glasgow Bank, which occasioned numerous failures throughout Scotland and England. Latterly, it may be added, the London Joint Stock Banks have exercised a considerable influence in Rate of Regulation of connection with the general rate of interest, and they Interest. may now, indeed, be regarded as much its regulator as the Bank of England itself. Minimum Rates of Discount, charged by the Bank of England from 1694 to 1882, inclusive, with yearly average from the end of 1820: ? < 5 Z Rates of Discount. 362 } BANK OF ENGLAND RATES. } Date. Per Cent. Yearly Average. Date. Per Cent. Yearly Average. 1694, 8th August. 6 on F.B. 1839, 16th May... 5 1695, 16th Jan.... 6 "" "" 30th August 4,, F.B. 24th Oct.... 6 I.B. "" 20th June... 5 51 1st August. 6 5 20 F.B. 1840, 23rd Jan.... 5 5 I 03 1841 5 5 0 0 4 5 4 "" • 4 • 4 0 0 3 Notes. 3 10 4 4,, I.B. To Account- holders. 3 on F.B. To Account- holders. 1704, 28th Feb... 4 on F. B. 5 F.B. Not domiciled at Bank. 1842, 7th April... 4 1844, 5th Sept.... 2 Bills. 1845, 13th March 2 16th Oct.... 3 6th Nov.... 3 34... 1710, 22nd June.. 5 on F.B. 1716, 26th July... 4 F. & I.B. 1846, 27th Aug... 3 1847, 14th Jan.... 3 1719, 30th April.. 5 2 13 7 366 5 "" I.B. F.B. 1821 5 1822, 22nd June.. Bills and Notes. 1823 4 4 1722, 23rd Aug... 4,, F.B. 5,, I.B. 1742, 18th Oct.... 5,, I.B. "" Drawn 4 Abroad. 1744, 12th Dec... 4 on F. B. وو 1773, 13th May... 5 "" 21st Jan.... 4 8th April... 5 2nd August 6 5 5th August. 30th Sept.. 6 4th Oct..... 6 25th Oct.... 8 22nd Nov.. 7 2nd Dec.... 6 23rd Dec... 5 1848, 27th Jan.... 4 5 0 0 4 96 5 4 2 00 1824 4 4 о "" 1825, 13th Dec... 1826 ли 5 408 15th June... 32 22nd Nov... 3 3 14 II 5 5 o c 1849, 22nd Nov... 2. 2 19 O 1827, 5th July.... 4 1828 +4 4 IO 2 1850, 26th Dec.... 3 4 O о 1851 3 2 10 I 300 1829 4 4 о о 1852, 1st January 2 1830 44 400 ", 22nd April. 2 1853, 6th January 2 2 3 0. 1831 4 O 1832 4 4 20th Jan.... 3 1833 4 4 О 2nd June... 3 1834 4 4 O о "" 1835 4 4 0 Ist Sept.... 4 15th Sept... 4 1836, 21st July... 4 Ist Sept..... 5 4 7 9 29th Sept... 5 1854, 11th May... 5 3 13 11 1837 5 5 0 оо 3rd August. 5 523 1838, 15th Feb.... 4 + 2 6 1855, 5th April... 4 E L BANK OF ENGLAND RATES. Date. Per Cent. Yearly Average. 1855, 3rd May..... 4 "" 15th June.. 3/ ... "" 6th Sept....... 4 13th Sept.. 4/ 363 Rates of Discount. Date. Per Cent. Yearly Average. 1860, 13th Nov... 15th Nov...... 6 56 29th Nov... 31st Dec.... 1861, 7th January ... 5+ "" 14th Feb... 4 17 9 21st March. 4th April... 27th Sept.. ... 4th October... 18th Oct.... 1856, 22nd May.. 5 76 56 78 76 4 3 7 29th May... 5 "" 11th April.. "" 26th June.. 4 16th May... 56 "" Ist October.. "" 6th October. ... 47 5 1st August. 5 7 15th August... 4/2 4th Dec..... 61 "" 29th August 4 ... 18th Dec... 6 613 19th Sept...... 31 "" 1857, 2nd April... 6/1/2 7th Nov.... 3 5 4 II 18th June... 6 "" 16th July.... 8th October... 6 12th Oct.... 19th Oct.... 5th Nov.... 9th Nov.... 24th Dec... 9 ΙΟ a ∞ 1858, 7th January... 6 " "" 14th Jan... 28th Jan.... 4th Feb IIth Feb... 9th Dec..... 1859, 28th April. 5th May.... 2nd June... "" 9th June.... 14th July... ... ... +4 54 31/1 3 2층 ​33 4 31 3 5 1862, 9th January 23 22nd May..... 3 "" 10th July.. 21/ 78 "" 24th July... 2 30th Oct...... 1863, 15th Jan……... 28th Jan.... 3 4 5 2 10 6 y 8 6 12 II 19th Feb.. 4 23rd April.. 3+ 30th April.. 3 "" 16th May... 1 ... 3/1/20 21st May.... 2nd Nov.... 3 4 7 5th Nov.... 2nd Dec.... "" 3rd Dec.... 24th Dec... 1864, 20th Jan. 11th Feb.. • 3 4 5 6 78 78 1 4 8 2 2+ 2 14 8 1860, 19th Jan.... 3 "" 31st Jan.... 4 "" 25th Feb... 16th April.. 29th March 4. 2nd May.... 76 78 "" 12th April.. 5 5th May.... 10th May... 4 "" 19th May.. соо 9 8 24th May... 4 26th May... 7 8th Nov...... 4 16th June...... 6 مرار Rates of Discount. 364 } BANK OF ENGLAND RATES. Date. Per Cent. Yearly Average. Date. Per Cent. Yearly Average. 1864, 25th July... 4th August. 78 1869, 1st April ... ...... 4 6th May....... 41 8th Sept.... Ioth Nov... 24th Nov... 15th Dec... 1865, 12th Jan…….. 26th Jan.... 2nd March. ... 9 8 76 5/1/0 บก 5 770 10th June.. 4 24th June.. 3 15th July... 3 19th Aug... 2 "" 4th Nov.... 3 34 2 1870, 21st July.... 3 4 5 4 "" 30th March... 4 "" 4th May.... 4 25th May... 4 Ist June.... 3 3 3 وو 15th June... 27th July... 3/12/2 3rd August... 4 28th Sept... 2nd Oct..... 5th Oct..... 7th Oct.. 23rd Nov... 28th Dec.... 1866, 4th January "" >> ་ 39 22nd Feb... ... ... ... 4 Our A 76 78 7 15th March... 6 3rd May.... 8th May..... IIth May... 12th May... 16th August ... 7∞ 8 9 ΙΟ 23rd Aug... 7 30th August... 6th Sept.... 27th Sept... ... 5 4 8th Nov.... 4 20th Dec.... 33 1867, 7th Feb…... ,, 30th May.. 25th July..... 1868, 19th Nov... 3rd Dec........ 3 1 23rd July.. 28th July... 4th August. ... ... 6 11th August 5+ 18th August 4 25th August 1st Sept.... 15th Sept... .. ... 4 क्तल 3/1/2 3 29th Sept... 2 3 I II 1871, 2nd March. 3 "" 13th April, 21/ ... 15th June... "" 13th July... 4 15 6 "" 21st Sept... "" 28th Sept... ... ... 21 2 3 4 7th October "" 16th Nov... ... "" 5 4 "" 30th Nov... 31/ 14th Dec.... 1872, 4th April... ... 3 2 17 8 3 1/2 "" 11th April.. 8 6 ,, 13 1/1/20 20th June... 3 9th May..... 30th May... 13th June... ... 45 4 "" 6 18 II 3 2 2 2 10 9 21/ "" 2 I II 18th July... 18th Sept... 26th Sept... 3rd October roth Oct.... 9th Nov.... 28th Nov... 12th Dec... ... ... ... 31/ 4 4 56 76 5 4 I II BANK OF ENGLAND RATES. : 365 Rates of Discount. Date. Per Cent. Yearly Average. Date. Per Cent. Yearly Average. 1873, 9th January... 4 23rd Jan....... 4 1875, 8th July…….... 3 >" 29th July...... 21 30th Jan.... 3 12th August... 2 26th March 4 7th October 21/ >> 7th May.... 4 14th Oct.... 3/21/1 ,, 10th May... 17th May... 4th June.... 12th June... ... 56 76 21st Oct.... "" 4 18th Nov... 3 "" 10th July... 5 "" 17th July... 4 "" 24th July... 4 311 30th Dec... 1876, 6th January 27th Jan.... ... ... 4 4 23rd March... 32 3 4 8 6th April... 3 2 2 12 2 3" 31st July... 21st August 25th Sept... 29th Sept..... 14th Oct... 18th Oct.... Ist Nov..... 7th Nov.... 20th Nov... 27th Nov... 4th Dec..... IIth Dec... 1874, 8th January "" 15th Jan.... 30th April. ... ... 3 4 5 6 78 8 9∞6 5 4 3 4 28th May...... 33 20th April..... 2 1877, 3rd May.... ?? 5th July.... 12th July... ... 3 2 21 2 28th August.. 3 4th October... 4 IIth Oct.... "" 5 29th Nov... 1878, 10th Jan.... 43 2 2 18 0 31st Jan.... 28th March... 3 4/1/2 4 15 10 30th May... 2호 ​" 27th June.. 3 و, 4th July.. .... ... 3 1/2 "" 4th June.... 18th June... 3 2금 ​30th July... 3 6th August. "" 20th Aug... ... 4 31/2 سلسل الامارات حب 3 456 "" "" 27th Aug... 15th Oct... 16th Nov... 30th Nov... 875, 7th January 14th Jan... 28th Jan.... 18th Feb... ... 3 13 10 Ist August. 12th August... 14th Oct.... 21st Nov.. 1879, 16th Jan………. 30th Jan.... ," 4 5 5 6 5 4 3 13th March... 2 Ioth April.. 6th Nov.... 1880, 17th June 9th Dec..... 2 3 543 3 15 7 2 10 3- • 2층 ​3 2 15 8 1881, 13th Jan.... 3/31/ 17th Feb... 3 "" 28th April.. 2호 ​18th August... 3 7 Rates of Discount. 366 BANK OF ENGLAND RATES. Date. Per Cent. Yearly Average. Date. Per Cent. Yearly Average. 1881, 25th August... 4 1882, 23rd March... 3 "" 6th October... 5 1882, 30th Jan.... 6 397 17th Aug.. ... "" 14th Sep... ... 23rd Feb... 9th March 5 Gr 5 1883, 25th Jan... ... 4 "" 15th Feb 4 3 + 5 + 4 2 II 4 3+ Interest on Short Advances during high rates. Bills of short currency have been in a few rare instances discounted by the Bank of England at per cent, and some at I per cent under the above rates. For short advances made during the prevalence of the higher rates in October and November, 1872, interest at 7 per cent, 8 per cent, and 9 per cent was exacted; and in the same months of the following year the rates charged were 8 per cent, 10 per cent, and 12 per cent. PART VI. TRANSACTIONS IN THE FUNDS, &c. AND STAMP DUTIES. National To the Bank of England the management of the National Debt is entrusted for Great Britain, and to the Bank of Debt. Ireland for Ireland. This debt consists of the funded debt and unfunded debt, the former including- Three per cent annuities or consols, which originated in 1752 by the consolidation of several annuities into one general stock, bearing a uniform rate of interest at 3 per cent, "consols" being an abbreviation for these consolidated annuities. This stock amounting at first to £9,137,821, is now, 1881, £395,515,144. It is redeemable at par, on one year's notice, at the option of the Government. The dividends are due on 5th January and 5th July. Three per cent reduced annuities, formed about the same period as consols, of several sums which had borne a higher rate of interest. The amount originally £17,701,323, is now £92,062,398, redeemable like consols. The dividends are due on 5th April and 5th October. New three per cents, originated in 1830 by the conversion of the new four per cents, amounting to £144,331,212, which had been formed in 1822 from the Navy Five Per Funded. + 1 } f 1 368 TRANSACTIONS IN THE FUNDS, &C. F National Debt. Funded. Unfunded. Cents. The converted stock first bore interest at 3, which was reduced in 1844 to 34, and in 1854 to 3 per cent. The stock now amounts to £203,469,391. The dividends are due on 5th April and 5th October. New three and a half per cents of 1854, redeemable after 5th January, 1894. Amount, £225,746. Dividends due on 5th January and 5th July. Two and a half per cents 1854, redeemable after 5th January, 1894. Amount, £4,159,978. Dividends due 5th January and 5th July.* And a series of terminable annuities, granted and expiring at various dates; annuities terminating in 1885, and Red Sea and India Telegraph Company's annuity, terminable in 1908. The Unfunded Debt includes Exchequer Bills, Treasury Bills, and Exchequer Bonds, all of which have been already considered in our first volume, pp. 362 to 368, and see, also, ante p. 332. It may be further added that the Exchequer Bills outstanding on 31st March, 1881, amounted to £5,162,800, that the interest on on Exchequer Bills is payable half-yearly at the Bank of England, that the rate varies and is previously notified by the Treasury in the LONDON GAZETTE, and that in transactions on the Stock Exchange the purchaser has to pay the seller the accrued interest on each bill to the day of purchase, in addition to the price given. At the above date the amount of Treasury Bills was £5,431,000, applied to Local Loans, and the amount of Exchequer Bonds was £11,483,700, of By sec. 20 of the Revenue Friendly Societies and National Debt Act, 1882, ante p. 315, power has been taken to pay the dividends on the 2½ per cents quarterly on 5th January, 5th April, 5th July, and 5th October, after such date as the Treasury may appoint. Fractions of a penny have never been paid by the Bank of England on account of the dividends on the National Debt, and the amount of these fractions had, at 31st March, 1882, reached the sum of £143,272 11s. 2d. By sec. 18 of this Act, the Bank are now required from time to time, when directed by the Treasury, to certify the amount in hand arising from fractions of a penny not paid on account of dividends, and the Treasury may by warrant order the same to be repaid to the Exchequer. 1 TRANSACTIONS IN THE FUNDS, &C. 369 which £7,750,000 was for Local Loans; and £3,733,700 for Suez Canal Shares. The National Debt grew from £664,263 at the Revolution in 1688, to £902,000,000 in 1816, and is now, March 1881, reduced to £770,045,003. * In exchange for inscribed Stock of the above series Stock of 3 per cent Annuities, and 22 per cents, Stock Certificates. certificates to bearer with relative coupons are obtain- able in amounts of £50, £100, £200, £500, and £1000, at a fee of 2s. per cent. The Owner, or his Attorney, must attend at the Bank to sign the books, and transfer the Stock into certificates to bearer. These may be re-inscribed on payment of Is. per certificate. They may also be deprived of their transferable nature by the insertion of the name, address, and description of a nominee, and they then become nominal certificates, which if duly discharged may be exchanged for bearer certificates on payment of a fee of Is. per certificate. Transfers executed after the balance for a dividend has been struck will not carry the dividend next due. Recently some of the large towns have, with great success, converted their Mortgage Debts into Corporation Stock, Liverpool having succeeded in funding £3,500,000 bearing interest at 3% per cent; and for the purpose of encouraging persons of small means to invest in this Stock, the National Provincial Bank of England has taken up a considerable portion of the last issue of £1,500,000, with the view of subdividing and allotting it in sums of 10 and upwards, to purchasers of this class. The interest on the Stock is payable quarterly, at the Bank of England, where the books are kept, and transfers made. Interest warrants, however, are transmitted by post, if desired. In ordering the purchase of Government and other *The total amount of the National Debts of Europe, at present, is supposed to be about £4,500,000,000. X $ 1 1 Purchase of Stocks registered in Bank of England. 1 Investment of 370 TRANSACTIONS IN THE FUNDS, &C. Stocks, registered in the books of the Bank of England, care must be taken to give, correctly and fully, the name, designation, and address of the purchaser, and if the purchase is in addition to Stock already held, accurate particulars of the name, designation, and address of each holder, as appearing in the Bank's books, must be given. Stock cannot be added to an account where a death has occurred and been made known to the Bank. An account in one name is called a joint a sole account, and in more than one name account. In ordering the purchase of Stock for a person not a holder, n/a, or new account, should be added after his description; and o/a, or old account, if he already holds some of the Stock. If Stock be sold and the seller afterwards makes a re-purchase in the same Stock, there should be inserted in the order after so that the his description "o/a, but no Stock," thus prevent any account may be re-opened, and difficulty that might arise if a new account were opened. The old power for dividends, too, will revive on the re-purchase. Stock cannot be registered in the names of more than four persons, unless under very special circum- stances, and the Bank will not recognize trustees as such, nor firms, or companies, excepting corporations. It was stated generally, in Vol. I., page 49, that Trust Moneys. Trustees, unless prevented by the deed creating their trust, are now at liberty to invest trust moneys in the Stock of the Bank of England, or the Bank of Ireland, or in India Stock. The Acts under which power is granted for investments are the 22 and 23 Vict., c. 35, 13th August, 1859; 30 and 31 Vict., c. 132, 20th August, 1867; and by 34 and 35 Vict., c. 27, 29th June, 1871, it is provided that "where a power has before the passing of this Act been, or shall at any time hereafter be, given to Trustees to invest Trust Funds in the . ! TRANSACTIONS IN THE FUNDS, &C. 371 Mortgages or Bonds of a Railway Company, or of any Investment of other description of Company, such power shall, unless Trust Moneys. the contrary is expressed in the instrument creating the power, be deemed to include a power to invest such funds in the Debenture Stock of a Railway Company, or such other Company as aforesaid, and an investment of Trust Funds in Debenture Stock may be made accordingly. The expression 'Trustees' shall include Executors and Administrators, and any other persons holding funds in a fiduciary capacity." And under the Metropolitan Board of Works Loan Act, 1871, 34 and 35 Vict., c. 47, Trustees, Executors, or Administrators may, unless prevented by their Trust Deed, invest in the Consolidated Stock of the Board. Cash under Court. Of investments of moneys under the control of the Investment of Court, it is declared by general order made under the Control of powers given by the 23 and 24 Vict., c. 38, 23rd July, 1860, that "cash under the control of the Court may be invested in Bank Stock, East India Stock, Exchequer Bills, and 22 per cent Annuities, and upon mortgage of freehold and copyhold estates respectively, in England and Wales, as well as in Consolidated 3 per cent Annuities, Reduced 3 per cent Annuities, and New 3 per cent Annuities," and that "every petition for the purpose of the conversion of any 3 per cent Bank Annuities into any other of the stocks, funds, or securities herein- before mentioned, shall be served upon the Trustees, if any, of such Bank 3 per cent Annuities, and upon such other persons, if any, as the Court shall think fit." Of "East India Stock," the 30 and 31 Vict., c. 132, provides that these words, used in the 22 and 23 Vict., c. 35, "shall include and express as well the East India Stock which existed previously to the 13th day of August, 1859, when the said Act received the assent of her Majesty, as East India Stock charged on the revenues of India, and created under and by virtue of East India Stocks, &c. East India Stocks, &c. 372 TRANSACTIONS IN THE FUNDS, &C. • any Act or Acts of Parliament which received her Majesty's assent on or after the 13th day of August, 1859, and it shall be lawful for every Trustee, Executor, or Administrator to invest any Trust Fund in his possession, or under his control, in the Stock created by the last-mentioned Act or Acts to the same extent and for the same purposes and objects as he can now invest such Trust Fund in the East India Stock which existed previously to the 13th day of August, 1859." And that "it shall be lawful for every Trustee, Executor, or Administrator to invest any Trust Fund in his possession, or under his control, in any securities the interest of which is or shall be guaranteed by Parliament, to the same extent and in the same manner as he may invest such Trust Fund in such securities as aforesaid." The India Stocks created in England are the India 4 per cent Stock, redeemable in 1888; the India 3½ per cent Stock, redeemable in 1931; India Debentures, redeemable in 1884; and various East Indian Railway Debenture Bonds and Debenture Stock, most of which are at 4 per cent. The Stocks created in India guaranteed by the Indian Government are numerous, and besides these, there are Indian Promissory Notes known as "Enfaced Paper," from being marked or enfaced with a broad band, and within which is impressed a notification that "interest is payable in London by draft on Calcutta." There are several distinct issues of these instruments, some of which expire in 1882, 1885, and 1893. There are besides, Loans repayable after three and fifteen months' notice by the Government, and there is also now in contemplation the issue of Stock Notes for sums ranging from 12 to 100 rupees, bearing interest at 4 per cent, with the view of inducing the natives of India to relinquish their hoarding propensities in connection with the precious metals, and to become investors in the public debt of India. 373 Stocks, &c. TRANSACTIONS IN THE FUNDS, &C. The arrangements in connection with the India Stocks East India registered in the Bank of England are the same. as those relating to the Stocks of the United Kingdom. On 31st March, 1881, the total debt of India in England amounted to £71,929,132; and the total debt in India to £85,959,746. With regard to the drawing of dividends on the Govern- ment and other Stocks registered in the Bank of England, if the stockholder does not attend personally at the Bank, a Power of Attorney must be granted by him for each description of Stock held. When a Power of Attorney is ordered, it will be necessary to state in the application for it to the Bank whether it is to be for dividends only, for sale only, or for dividends and sale. Great accuracy must be observed in giving the names, designations, and addresses of the stockholders, and the amount of the stock, all of which must correspond with the particulars appearing in the books of the Bank, and, if necessary, the stock receipt should be sent. Power for dividends covers dividends on subsequent purchases. A power for sale must state the amount covered by it. A power whether for dividends or sale is cancelled by the holder granting a subsequent one of the same kind, or by his personal attendance at the Bank for drawing a dividend or signing a transfer. The form of the Power of Attorney has, latterly, been much simplified, and the one now in use for the receipt of dividends is as follows: SOLE CONSOLIDATED £3 PER CENT ANNUITIES. Account. Powers of Attorney. STAMP. 51- DIVIDENDS. I, A. B., of C............ Merchant, appoint the persons from time to time registered in the books kept for that purpose, at the Bank of England, as the A Powers of Attorney. 374 TRANSACTIONS IN THE FUNDS, &C. representatives of Bankers, and every one of such persons severally my attorneys and attorney in my name, and on my behalf, to RECEIVE and GIVE RECEIPTS for all DIVIDENDS or PAYMENTS due, or to become due, on any sum of CONSOLIDATED £3 PER CENT ANNUITIES, from time to time standing in the books of the Governor and Company of the Bank of England in my name. AND ALSO, to do whatever is necessary or proper to be done for the purpose aforesaid. AND I DECLARE that any act done under, or in pursuance of, this Letter of Attorney shall, so far as the Governor and Company of the Bank of England are concerned, be valid as against my estate, notwithstanding I may be dead at the time of such act, unless notice, in writing, of my death shall have been previously given to the said Governor and Company. In Witness whereof I have hereunto set my hand and seal, this day of in the year of our Lord one thousand eight hundred and eighty-one. Signed, sealed, and delivered in the presence of (Signed) D. E., (Signed) A. B. Seal. Grocer, ... Street, C......... F. G., Iron Founder, Street, C.......... I Demand to act by this Letter of Attorney, this day of .. Witness: 18.... If the stockholder is unable to write, he must make his mark before two witnesses of known position, such as professional men, magistrates, or justices of the peace, and they must declare that the power has been read over and fully explained to, and was understood by him as thus:- The mark of A. B. X SEAL. Signed, sealed, and delivered in the presence of us, who do hereby declare that this Power of Attorney was read over and TRANSACTIONS IN THE FUNDS, &c. 375 fully explained to, and understood by, the said A. B. previous to Powers of execution. C. D., Minister of the Parish of.. E. F., Surgeon, in the county of C. If there be any alteration, interlineation, or erasure made in a power, it will have to be duly confirmed by the initials of the stockholder, and be particularly stated in the attestation, which must also bear that the alteration, &c., was made previously to the execution of the instrument, thus: Signed, sealed, and delivered by of us, "the to in the presence having been first altered from "} or "the words struck out (or erased) and the words having been first interlined." Each execution of a power must be attested by two credible witnesses, who should add their quality, or vocation, and address, and, if they reside in a town, the number of the house and name of the street should be given. If the power be executed out of the United Kingdom, it is necessary, in addition to the two witnesses, that the instrument be attested by a British Minister, Consul, Vice-Consul, or other British authority, or by a Notary Public. If the witness be a female, she must state whether she is a spinster, wife, or widow, and, if a wife, she must give her husband's name, address, and quality, profession, or occupation. A wife cannot validly attest a power executed by her husband, but a husband and wife may sign as witnesses. Servants attesting should give the names and addresses of their employers. A minor should not be a witness. When a power is executed by more than one person, the date of the first signature should be inserted. And the date in all powers must be written in words and not in figures. The delivery of a power for sale does not justify an Attorney. 1 1 Powers of Attorney. Stock in Name of Deceased Party. Stock in Name of Minor. 376 TRANSACTIONS IN THE FUNDS, &c. agent in acting without special written instructions for the sale or transfer, and appropriation of the proceeds. A power for sale lapses in ten years from its date, unless in ordering a sale the stockholder requests that it may be considered as still in force. Should the stock be in the name of a person deceased, it is transferable to his executors or administrators on production of the probate of the will or letters of adminis- tration. If the stock be in joint names, it is, on the death of any of the holders, transferable to the survivors or survivor on the production of the requisite burial certificate, with declaration of identity-a printed form for the latter being supplied by the Bank. If all the holders be dead, then the probate or letters of administration, as regards the last survivor, and the burial certificates and declarations of identity, or probate or letters of administration in con- nection with the others, must be produced. If an error be made in filling up a declaration of identity, the necessary alterations should be confirmed by the initials of the before whom the declaration is made. If the person deceased be wrongly named in the register of burials, all the circumstances must be clearly stated in the declaration. A new power for dividends should be given by the survivors in a joint account, but an existing power for sale may be acted upon, if evidence of death be furnished as above. The executors of the last survivor in a joint account, or of a deceased holder in a sole account, must grant a power before the dividends can be got or the stock sold on their behalf. Stock in the name of a minor cannot be sold nor dividends received until majority, and of this the Bank must be satisfied by production of a certified copy of the baptismal register, unless indeed they have evidence of the majority by lapse of time. If in a joint account one of the holders be a minor, the stock cannot be sold until he attains majority, but the dividends may be received by the others. : TRANSACTIONS IN THE FUNDS, &C. 377 Name of In purchasing stock for a married woman, she must be Stock in described as the wife of giving in full the Married names, residence, and quality of the husband. If stock be Woman. in the joint names of husband and wife, and the former dies, a power will be suspended until the widow applies On the death of the wife the to the Bank for its revival. power is not affected. In transfers of Stock in the case of married women, it will not now be requisite, from the recent change in the law, for the husband to execute a transfer. of Accounts. On making an application to the Bank such as follows, Consolidation two or more accounts in the same stock may be con- solidated :- TO THE BANK OF ENGLAND, Gentlemen, LONDON. I beg to state that I hold in two accounts Stock in the per Cent Annuities, as follows: and shall feel obliged by your uniting them in one account, and by your permitting the ... Bank, through whom this application is made, to receive the dividends under the powers already held by them. I am, &c., And a consolidation may be effected if the holder be the survivor in a joint account, and holder in a sole account of the same stock. ( in connection In cases of mistake or difficulty in connection with Mistakes, &c., accounts, the facts will require to be communicated to the with Accounts. Bank, who will give the necessary instructions as to what should be done under the circumstances. If, however, a holder does not happen to know how he is described in the Bank's books, the Bank will give him no assistance in clearing up the difficulty, and he must use the best means in his power, through the aid of his Stock Receipt, and those who may have purchased for him, to satisfy the Bank, who in the meantime will not allow the Stock to be sold. 1 多 ​Unclaimed Dividends. Transfers. ī Government Life Annuities. 378 TRANSACTIONS IN THE FUNDS, &c. If dividends remain unclaimed for ten years they are then transferred to the Commissioners for the Reduction. of the National Debt, but the person entitled to them may, on satisfying the Bank as to his right, recover them at any time. Lists of unclaimed dividends are now published, and may be had in detached parts, at a small cost. At the expiry of the quarters of the year 1880-1, the amounts outstanding were respectively £901,409 9s. 10d.; £825,855 os. 6d.\; £835,433 12s. 8d.; and £816,327 14s. 3d. Transfers of Stock may be effected under powers for sale, or for sale and dividends. Excepting under special circumstances, the same Stock cannot be transferred twice in the same day. Only half the usual charge for brokerage and bank commission is made in the case of transfers. Government Annuities on the life of a person, or of another called a nominee, of 15 years of age and upwards, may be purchased. An annuity for a shorter period than ten years cannot be obtained. Deferred annuities to commence on the death of a nominee may be had and may be paid for by instalments. The forms of Declaration and Certificates of Existence, necessary for drawing annuities, when personal attendance is not given, are furnished gratis by the National Debt Office. Alterations in the documents are not allowed, and if a mistake be made in either of them, a new form will have to be used. There are heavy penalties attached. to the making of any false statements, and the receiving annuities after they ought to have ceased. If the applicant for an annuity is not a native of the United Kingdom, or if the birth or baptism does not appear in the parish register, a declaration of age, name, occupation, and usual place of abode, together with the place of birth and the names of the parents, or reputed parents, must be procured. 系 ​1 STAMP DUTIES. 379 Government Coupons. Amongst the general exemptions from all stamp Stamp Duties. duties under the Stamp Act of 1870, the 33 and 34 Stocks. Vict., c. 97, are "Transfers of Shares in the Govern- ment or Parliamentary Stocks or Funds"; and we have seen, Vol. I., p. 93, that coupons or interest warrants attached to and issued with any security, are also exempt from duty. By sec. 5 of 44 and 45 Vict., c. 20, passed 18th July, 1881, it is enacted that " every deed, Post Office. instrument, receipt, or document made or executed for the purpose of the Post Office, by, to, or with her Majesty, or any officer of the Post Office, shall be exempt from any stamp duty imposed by any Act, past or future, except where such duty is declared by the deed, instru- ment, receipt, or document, or by some memorandum endorsed thereon, to be payable by some person other than the Postmaster-General, and except so far as any future Act specifically charges the same." And by sec. 9 of the Revenue, &c., Act, 1882, 45 and Public Department. 46 Vict., c. 72, "no stamp duty shall be chargeable upon the following instruments :-Draft or order drawn upon any banker in the United Kingdom by an officer of a public department of the State, for the payment of money out of a public account, and receipt given by an officer of a public department of the State, for money paid by way of imprest or advance, or in adjust- ment of an account, where he derives no personal benefit therefrom." With reference to powers of attorney, the following are Power o Attorney. the duties under the Act of 1870, and the amending Act of 34 and 35 Vict., c. 4, passed 30th March, 1871- Letter or power of attorney or commission, factory, mandate, or other instrument in the nature thereof :- (1.) For the sole purpose of appointing or authorizing a proxy to vote at any one meeting at which votes may be given by proxy, whether the number of persons named in such instrument be one or more £o so d. O O I 1 1 C 1 J 1 I A Power of Attorney. 380 STAMP DUTIES. (2.) By any petty officer, seaman, marine, or soldier serving as a marine, or by the executors or administrators of any such person, for receiving prize money or wages (3.) For the receipt of the dividends or interest of any stock :- Where made for the receipt of one payment only..... In any other case (4.) For the receipt of any sum of money, or any bill of exchange or promissory note for any sum of money not exceeding £20, or any periodical payments not exceeding the annual sum of £10 (not being hereinbefore charged) ... (5.) For the sale, transfer, or acceptance of any of the Government or Parliamentary stocks or funds : Where the value of such stocks or funds does not exceed £20 In any other case (6.) Of any kind whatsoever not hereinbefore des- cribed .... £ s. d. O IO O IO O 5 0 050 o 50 о O IO O O IO O EXEMPTIONS. (1.) Letter or power of attorney for the receipt of dividends of any definite and certain share of the Government or Parliamentary stocks or funds producing a yearly dividend of less than £3. (2.) Letter or power of attorney or proxy filed in the Court of Probate in England or Ireland, or in any ecclesiastical court. (3.) Letter or power of attorney for voting on any election of directors of the East India Company. By sec. 102 of the Act of 1870- (1.) Every letter or power of attorney for the purpose of appointing a proxy to vote at a meeting, and every voting STAMP DUTIES. 381 one Power of Attorney. paper, respectively charged with the duty of penny, is to specify the day upon which the meeting at which it is intended to be used is to be held, and is to be available only at the meeting so specified, or any adjourn- ment thereof. (2.) The said duty of one penny may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the instrument is executed. (3.) Every person who makes or executes, or votes or attempts to vote, under or by means of any such letter or power of attorney or voting paper, not being duly stamped, shall forfeit the sum of fifty pounds. (4.) Every vote given or tendered under the authority, or by means of any such letter or power of attorney or voting paper, not being duly stamped, shall be absolutely null and void. (5.) And no such letter or power of attorney or voting paper shall, on any pretence whatever, be stamped after the execution thereof by any person. By sec. 103, a letter or power of attorney for the sale, transfer, or acceptance of any of the Government or Parliamentary stocks or funds, duly stamped for that purpose, is not to be charged with any further duty by reason of containing an authority for the receipt of the dividends on the same stocks or funds. And by sec. 104, a writing under hand only contain- ing an order, request, or direction from the owner or proprietor of any Stock to any Company, or to any officer of any Company, or to any banker, to pay the dividends or interest arising from such Stock to any person therein named, is not chargeable with duty as a letter or power of Attorney. Bank of England, &c. On the conveyance or transfer, whether on sale or Stock of otherwise, of any Stock of the Governor and Company of the Bank of England, the duty is ... Of any stock of the East India Company £0 7 9 I IO O } } J 1 5 ! 1 } Stock of Bank of 382 STAMP DUTIES. And of any debenture stock or funded debt England, &c. of any Company or Corporation :- Change of Trustees. Stocks and Property in general. 026 For every £100, and also for any fractional part of £100 of the nominal amount transferred And this, by the Colonial Stamp Act of 14th August, 1877, the 40 and 41 Vict., c. 59, applies to stock forming part of the public debt of any colony registered in the United Kingdom. Provided, that a conveyance or transfer made for effectuating the appointment of a new trustee is not to be charged with any higher duty than 10s. (formerly 35s.), ss. 69 and 78, 33 and 34 Vict., c. 97, and sec. 2, 40 and 41 Vict., c. 59. On the conveyance or transfer on sale of any property, except such stock, or debenture stock, or funded debt as aforesaid, where the amount or value of the consideration for the sale does not exceed £5, the duty is... £o o 6 Exceeding £5 and not exceeding £10 "" ༤ رو IO 15 20 >> "" 15 20 '", 25 25 "" >> 50 " "" 75 ΙΟΟ "" 125 150 "" 175 200 ور 50 ... ... 75 ... IOO 125 150 175 : 200 ... O IO O I 6 O2 O 0 2 6 5 0 0 7 6 O IO O 0 12 6 O 15 O 0 17 6 IO O I 2 6 "" " 225 225 " 250 I 5 0 250 "" )) 275 I 7 6 275 "} 300 I IO O 300:- For every £50, and also for any fractional part of £50, of such amount or value 050 33 and 34 Vict., c. 97. And by section 74, it is enacted that } . 1 STAMP DUTIES. 383 (1.) Where any property has been contracted to be sold Stocks and Property for one consideration for the whole, and is conveyed to the in general. purchaser in separate parts or parcels by different instru- ments, the consideration is to be apportioned in such manner as the parties think fit, so that a distinct consider- ation for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration. (2.) Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts or parcels by separate instru- ments to the persons by or for whom the same was purchased for distinct parts of the consideration, the conveyance of each separate part or parcel is to be charged with ad valorem duty in respect of the distinct part of the consideration therein specified. (3.) Where a person having contracted for the purchase of any property, but not having obtained a conveyance thereof, contracts to sell the same to any other person, and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance is to be charged with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser. (4.) Where a person, having contracted for the purchase of any property, but not having obtained a conveyance, contracts to sell the whole, or any part or parts thereof, to any other person or persons, and the property is in con- sequence conveyed by the original seller to different persons in parts or parcels, the conveyance of each part or parcel is to be charged with ad valorem duty, in respect only of the consideration moving from the sub-purchaser thereof, without regard to the amount or value of the orginal consideration. By the case of Wright v. Inland Revenue, 25 L. J., Exch. } } I Stocks and Property in general. Nominal consideration. Mortgages, &c. 384 STAMP DUTIES. 49, II Exch., Rep. 48, a conveyance on sale of property abroad, executed in this country, is liable to stamp duty. The duty on transfers of stock and shares for a nominal consideration, such as five shillings, has been reduced from 30s. to IOS. On a Mortgage, Bond, Debenture, Covenant, Warrant of Attorney to confess and enter up judgment, and foreign security of any kind, being the only or principal or primary security, the duty is for— The payment or repayment of money not Exceeding £25 0 0 8 >> £25 and not exceeding £50 0 I 3 "" 50 100 0 2 6 IOO 150 0 39 "} 150 200 "" 0 5 0 200 "> "" "} 250 0 6 3 "" 250 " 300 0 7 6 " 300 For every £100, and also for any fractional part of £100 of such amount..... (2.) Being a collateral, or auxiliary, or additional, or substituted security, or by way of further assurance for the above- mentioned purpose, where the principal or primary security is duly stamped- For every £100, and also for any fractional part of £100, of the amount secured (3.) Transfer, assignment, disposition, or assignation of any mortgage, bond, debenture, covenant, or foreign security, or of any money or stock secured by any such instrument, or by any warrant of Attorney to enter up judgment, or by any judgment- 026 ооб ? Mortgages, &c. . STAMP DUTIES. For every £100, and also for any fractional part of £100, of the amount transferred, assigned, or disponed 33 and 34 Vic., c. 97. By section 5 of the amending Act, 34 and 35 Vict., c. 4, however, the duty on a mortgage of any stock or marketable security is— For every £5,000, and also for any fractional part of £5,000 of the amount secured 385 006 O IO O And no release or discharge of any such mortgage shall be chargeable with any ad valorem duty. By section 2 of the above Act, "the term 'foreign security' means and includes every security for money by or on behalf of any foreign or colonial state, government, municipal body, corporation, or company, bearing date or signed after the third day of June, one thousand eight hundred and sixty two (except an instrument chargeable with duty as a bill of exchange or promissory note)— (1.) Which is made or issued in the United Kingdom or (2.) Which, the interest thereon being payable in the United Kingdom, is assigned, transferred, or in any manner negotiated in the United Kingdom." And by section 3, "every person who in the United Kingdom makes, issues, assigns, transfers, or negotiates any foreign security not being duly stamped, shall forfeit the sum of twenty pounds." By section 115 of 33 and 34 Vic., c. 97, the Com- missioners may at any time, without reference to its date, allow any foreign security to be stamped without the payment of any penalty, upon being satisfied, in any manner that they may think proper, that it was not made or issued, and has not been transferred, assigned, or V 2 Contract Notes. Letters of Allotment, 386 STAMP DUTIES. 1 negotiated, and that no interest has been paid on it within the United Kingdom. " On contract notes or "any note, memorandum, or writing commonly called a contract note,' or by what- ever name the same may be designated, for or relating to the sale or purchase of any stock or marketable security of the value of £5 or upwards," the duty is ...………………….. Id. The duty may be denoted by an adhesive stamp, to be cancelled by the person by whom the note is first executed. Every person who makes or executes any contract note chargeable with duty, and not being duly stamped, shall forfeit the sum of £20. No broker, agent, or other person shall have any legal claim to any charge for brokerage, commission, or agency, with reference to the sale or purchase of any stock or marketable security of the value of £5 or upwards, mentioned or referred to in any contract note, unless such note is duly stamped. By sec. 26 of 41 and 42 Vict., c. 15, passed 27th May, 1878, it is provided that "Whereas, doubts have arisen as to the application of the charge of stamp duty under the title Contract Note' in the schedule of the Stamp Act, 1870, and there is a variance of practice upon Stock Exchanges in the United Kingdom, as to instruments bearing the stamp duty, and it is expedient to define more precisely the instrument which is to be deemed chargeable under the said title: Be it enacted. that the term Contract Note' wherever used in the Stamp Act, 1870, shall, for the purposes of that Act, mean exclusively, an advice note sent by a broker or agent to his principal, and shall not include any memorandum or contract between brokers or agents, for, or in relation to the sale or purchase of any stock. or marketable security, and no such memorandum or contract shall be chargeable with any stamp duty." By the Act of 1870, on a Letter of Allotment or and Letters of Letter of Renunciation, or any other document having Renunciation. the effect of a Letter of Allotment— STAMP DUTIES. (1.) Of any share of any company or proposed company. (2.) In respect of any loan raised, or proposed to be raised, by any company or proposed company, or by any municipal body or corporation. (3) Issued or delivered in the United Kingdom of any share of any foreign or colonial company or proposed company, or in respect of any loan raised or proposed to be raised by or on behalf of any foreign or colonial state, Govern- ment, municipal body, corporation company, the duty is or 387 O O I By sec. 56 of 43 and 44 Vict., c. 20, 12th August, 1880, the stamp duty of Id. on a letter of renunciation may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the letter of renunci- ation is executed. On a Scrip Certificate, Scrip, or other document— (1.) Entitling any person to become the proprietor of any share of any company, or proposed company. (2) Issued or delivered in the United Kingdom, and entitling any person to become the proprietor of any share of any foreign or colonial company, or proposed company. (3) Denoting or intending to denote the right of any person as a subscriber in respect of any loan raised or proposed to be raised by any company, or proposed company, or by any municipal body or corporation. (4) Issued or delivered in the United Kingdom, and denoting or intended to denote the right of any person as a subscriber in respect of any loan raised, or proposed to be raised, by Letters of Allotment and Letters of Renunciation. Scrip Certificates. 1 1 1 Scrip Certificates. Duties in Book Mines. 388 STAMP DUTIES. or on behalf of any foreign or colonial state, government, municipal body, cor- poration, or company.. OO I issues or And every person who executes, grants, delivers out any document chargeable with duty as a letter of allotment, letter of renunciation, or scrip certificate, or as scrip, before the same is duly stamped, shall forfiet the sum of £20. By the Act of 1870, the duty on any request or respect of Cost authority to the purser or other officer of any mining company, conducted on the cost book system, to enter or register any transfer of any share or part of a share, in any mine, or any notice to such purser or officer of any such transfer, is 6d.; section 128, enacting that the duty may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the request, authority, or notice is written or executed; and that every person who writes or executes any such request, authority, or notice, not being duly stamped, and every purser or other officer of any such company, who in any manner obeys, complies with, or gives effect to any such request, authority, or notice not being duly stamped, shall forfiet the sum of £20. Share Warrants. Of share warrants, the Companies Act, 1867, enacts by section 33, that "there shall be charged on every share warrant a stamp duty of an amount equal to three times the amount of the ad valorem stamp duty which would be chargeable on a deed transferring the share or shares or stock specified in the warrant, if the consideration for the transfer were the nominal value of such share or shares or stock." And by section 127 of the Act of 1870, if a share warrant is issued without being duly stamped, the company issuing the same, and also every person who at the time when it is issued is the managing director, or secretary, or other principal officer of the company, shall forfeit the sum of £50. + STAMP DUTIES. 389 on Transfers Stocks. By sections 53 and 54 of the Inland Revenue Act, 43 Composition and 44 Vict., c. 20, supra, it is enacted that (1) where any of Corporation debenture stock, corporation stock, municipal stock, or funded debt, by whatever name known, has been or shall be created and issued by the council of any city or municipal borough, under the provisions of the Local Loans Act, 1875, or of any other Act, the council may, with the sanction of the Commissioners of Her Majesty's Treasury, agree with the Commissioners for the payment to them, by way of composition for the stamp duty on transfers of such stock, of a sum calculated (1) at the rate of one shilling and threepence for every full sum of ten pounds, and the like for every fraction of ten pounds of the nominal amount of such stock inscribed in the name of each and every stockholder at the date of the composition; with the addition (2), when the period within which the stock is to be redeemed or paid off, or during which annual or other payments in respect of the redemption or pay- ment off of the same are required to be made, exceeds sixty years, but does not exceed one hundred years from that date, of threepence for every such ten pounds or fraction of ten pounds; and (3), if the said period exceeds one hundred years, or no period is fixed for such redemption or payment off, or no such annual or other payments are required to be made, with the addition of the said sum of threepence, and a further sum of threepence for every such ten pounds or fraction of ten pounds; and in consideration of such payment, transfers of the stock in respect of which such composition has been paid, shall be exempt from stamp duty. (2.) The provisions for composition contained in this section shall be substituted for any other enactments for a composition for the same duty, but shall not be applicable where any composition has been actually paid, previously to the passing of this Act, in respect of any stock then created and issued. 1 1 1 Composition on Transfers of Corporation Stocks. 390 STAMP DUTIES. (3.) Where any such stock as in this section mentioned is issued in lieu of mortgages or debentures on the issue of which stamp duty has been paid, it shall be lawful for the Commissioners of Her Majesty's Treasury to reduce the amount of composition payable under this section by the amount of the stamp duty so paid, or any part thereof. 54 Amendment of existing Acts as to composition for Composition. stamp duty, 33 and 34 Vict., c. 24, 37 and 38 Vict., c. 26, 40 and 41 Vict., c. 59. The sum to be paid by way of composition for stamp duty in the following cases, that is to say :- Amendments as to (1.) Under sections 3 and 4 of the Metropolitan Board of Works (Loans) Act, 1870, on transfers of metropolitan consolidated stock and metropolitan annuities, from time to time issued or granted after the passing of this Act; or (2.) Under section 4 of the Canadian Stock Stamp Act, 1874, on transfers of stock of the Government of Canada from time to time inscribed after the passing of this Act in books kept in the United Kingdom; or (3.) Under section 3 of the Colonial Stock Act, 1877, on transfers of colonial stock, to which from time to time that Act is made to apply after the passing of this Act, shall be calculated as if the rates enacted by this Act for the composition of the duty on transfers of stock created and issued by the council of any municipal borough were substituted for the rate or sum of seven shillings and sixpence in the said section respectively. Provided, that where the holders of the debentures of the government of a colony have, before the first day of July, one thousand eight hundred and eighty, had an option given to them to exchange such debentures within twelve months for colonial stock, to which the Colonial Stock Act, 1877, applies, the composition for the stamp duty on transfers of colonial stock issued in accordance with any option declared within the said twelve months, shall be the same as if this section had not been enacted. ་ 1 } મ STAMP DUTIES. 391 By the Customs and Inland Revenue Act 1881, 44 County Stock. and 45 Vict., c. 12, it is enacted, s. 45, where the justices of any county, liberty, riding, parts, or division of a county, shall be empowered by any Act of Parliament to create "county stock," the transfers of such stock shall be chargeable with stamp duty, as if they were transfers of the debenture stock of a company or corporation. cates to Bearer. S. 46. Stamp duty on Stock Certificates to bearer-38 Stock Certifi and 39 Vict., c. 83. (I.) Every "Stock certificate to bearer" which shall, after the passing of this Act, be issued under the provisions of the Local Authorities Loans Act, 1875, or of any other Act authorizing the creation of debenture stock, county stock, corporation stock, municipal stock, or funded debt, by whatever name known, shall be .: charged with the stamp duty of seven shillings and six- pence for every full sum of one hundred pounds, and also for any fraction less than one hundred pounds, or over and above one hundred pounds, or a multiple of one hundred pounds, of the nominal amount of the stock described in the certificate. (2.) Where the holder of any stock certificate to bearer so issued shall have been entered on the register of the local authority as the owner of the share of stock described in the certificate, such certificate shall be forthwith cancelled so as to be incapable of being re-issued to any person. (3.) The foregoing charge of stamp duty shall not be applicable where a composition has been paid, under the provisions of section 53 of the Inland Revenue Act, 1880, for the stamp duty on transfers of the stock described in the certificate. (4.) Every person and body of persons, whether corpo- rate or unincorporate, by whom a "stock certificate to bearer" is issued without being duly stamped, shall forfeit the sum of fifty pounds. S. 47. Stamp duties of one penny may be denoted by } how denoted. 392 STAMP DUTIES. Duties of Id. postage stamps, and vice versâ. On and after the first day of June, one thousand eight hundred and eighty-one, any stamp duties of one penny, which may legally be denoted by adhesive stamps, not appropriated by any word or words on the face of them to any particular description of instrument, may be denoted by adhesive penny postage stamps, and on and after that day postage duties may be paid by the use of penny adhesive stamps, not appropriated by any word or words on the face of them to postage duty, or to any particular description of instrument. How Instru ments are to be Written Amongst the general regulations of the Stamp Act of 1870 to be kept in view are the following: 7. (1.) Every instrument written upon stamped material is to be written in such manner, and every instrument and Stamped, partly or wholly written before being stamped is to be so stamped, that the stamp may appear on the face of the instrument, and cannot be used for or applied to any other instrument written upon the same piece of material. (2.) If more than one instrument be written upon the same piece of material, every one of such instruments is to be separately and distinctly stamped with the duty with which it is chargeable. Instruments to 8. Except where express provision to the contrary is be separately Charged with made by this or any other Act Duty in Certain Cases. (1.) An instrument containing or relating to several distinct matters is to be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of such matters. (2.) An instrument made for any consideration or considerations, in respect whereof it is chargeable with ad valorem duty, and also for any further or other valuable consideration or considerations, is to be charged with duty in respect of such last-mentioned consideration or considerations as if it were a separate instrument made for such consideration or considerations only. } STAMP DUTIES. 393 9. (1.) A stamp which by any word or words on the Use of Appropriated face of it is appropriated to any particular description of Stamps. instrument is not to be used, or if used, is not to be available for an instrument of any other description. (2.) An instrument falling under the particular descrip- tion to which any stamp is so appropriated as aforesaid, is not to be deemed duly stamped, unless it is stamped with the stamp so appropriated. 14. Where the duty with which an instrument is Denoting Stamp. chargeable depends in any manner upon the duty paid upon another instrument, the payment of such last- mentioned duty shall, if application be made to the Commissioners for that purpose, and on production of both the instruments, be denoted in such manner as the Commissioners think fit upon such first mentioned instrument. the Terms upon which Instru- Execution. 15. (1.) Except [where express provision to to contrary is made by this or any other Act, any ments may be unstamped or insufficiently stamped instrument may be Stamped after stamped after the execution thereof, on payment of the unpaid duty and a penalty of ten pounds, and also by way of further penalty, where the unpaid duty exceeds ten pounds, of interest on such duty at the rate of five pounds per centum per annum, from the day upon which the instrument was first executed up to the time when such interest is equal in amount to the unpaid duty. And the payment of any penalty or penalties is to be denoted on the instrument by a particular stamp. (2.) Provided as follows:— Instruments Executed (a.) Any unstamped or insufficiently stamped instru- Abroad. ment, which has been first executed at any place out of the United Kingdom, may be stamped at any time within two months after it has been first received in the United Kingdom, on payment of the unpaid duty only. (b.) The Commissioners may, if they think fit, at any Remission of time within twelve months after the first execution of Penalties. 1 1 ! The Commis- sioners may be required to Express their 394 STAMP DUTIES. any instrument, remit the penalty or penalties, or any part thereof. the Com- 18. (1.) Subject to such regulations as missioners may think fit to make, the Commissioners Opinion as to may be required by any person to express their opinion with reference to any executed instrument upon the following questions :- Duty. Mode and Effect of • (a.) Whether it is chargeable with any duty. (b.) With what amount of duty it is chargeable. (2.) If the Commissioners are of opinion that the Proceeding. instrument is not chargeable with any duty, such instru- ment may be stamped with a particular stamp denoting that it is not chargeable with any duty. (3.) If the Commissioners are of opinion that the instrument is chargeable with duty, they shall assess the duty with which it is in their opinion chargeable, and if or when the instrument is duly stamped in accordance with the assessment of the Commissioners, it may be also stamped with a particular stamp denoting that it is duly stamped. (4.) Every instrument stamped with the particular stamp denoting either that it is not chargeable with any duty, or is duly stamped, shall be admissible in evidence, and available for all purposes, notwithstanding any objection relating to duty. (5.) Provided as follows: (a.) An instrument upon which the duty has been assessed by the Commissioners shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the assessment of the Commissioners. (6.) Nothing in this section contained extends to any instrument chargeable with duty, and made as a security for money or stock without limit. (c.) Nothing in this section contained shall be deemed to authorize the stamping, after the execution thereof, of any instrument prohibited by law from being so stamped. STAMP DUTIES. 395 Effect of And following this section are provisions as to the Mode and proceedings to be adopted by persons who are dissatisfied Proceeding. with the assessment of the Commissioners. With reference to the directions and provisions in connection with adhesive stamps, and spoiled stamps, see Volume I, pages 94 and 98, for the former, and page 95 for the latter. of certain Duties. By the Revenue, &c., Act, 1882, 45 and 46 Vict., c. 72, it Assimilation is enacted, sec. 13, that on and after the first day of Adhesive January, one thousand eight hundred and eighty-three, Stamps for Stamp and any stamp duties of an amount not exceeding two shillings Postage and sixpence, which may legally be denoted by adhesive stamps not appropriated by any word or words on the face of them to any particular description of instrument, and any postage duties to the like amount may be denoted by the same adhesive stamps. With a view to exhaust any adhesive postage stamps denoting an amount not exceeding two shillings and six- pence, which may have been unissued or unused, such stamps to a proper amount may be used to denote any stamp duties of an amount not exceeding two shillings and sixpence, which may legally be denoted by adhesive stamps, not appropriated by any word or words on the face of them to any particular description of instrument. where two or used. Where two or more adhesive stamps are used to denote Cancellation a stamp duty upon an instrument, such instrument is not more Adhesive to be deemed duly stamped, unless the person upon whom Stamps are the duty of cancellation is by law imposed cancels each or every stamp by writing on or across the same his name, or initials, or the name, or initials of his firm, together with the true date of his so writing, so that both, or all, and every of the stamps may be effectually cancelled and rendered incapable of being used for any other instrument, or for any postal purpose, or unless it is otherwise proved that the stamps appearing on the instrument were affixed. thereto at the proper time. If any person contravenes 1 1 ! 1 Documents for which Postage Stamps available. ' 396 STAMP DUTIES. this section he shall incur the penalty [£10] imposed by section 24 of the Stamp Act, 1870. The documents for which postage stamps will thus be available, by this further improvement in the stamp laws, are, Agreements under hand, liable to the duty of 6d. ; Charter Parties, 6d.; Transfers of Shares in Cost Book Mines, 6d.; Notarial Acts, Is.; Warrants for Goods, 3d.; Protests of Bills of Exchange and Promissory Notes, Id., 2d., 3d., 6d., 9d., and Is.; Lease or Tack or Agreement for letting for any definite term less less than a year of a dwelling-house, or part of a dwelling-house, at a rent not exceeding the rate of £10 annually, Id.; of a furnished dwelling-house or apartments, for any definite term less than a year, 6d., IS., IS. 6d., 25., 2s. 6d.; and the following subject to the Id. duty :-Demand Bills of Exchange, Letters of Renunciation, Contract Notes, Delivery Orders, Policies of Insurance, not life or marine, Proxies, Voting Papers, Certified Copies of or Extracts from Registers of Births, Baptisms, Marriages, Deaths, or Burials, and Receipts. PART VII. THE STOCK EXCHANGE AND ITS PROCEDURE. Early Stock It will now be proper to make some allusion to the Stock Exchange, and its transactions, rules, and regu- Jobbing. lations. Stock jobbing commenced soon after the institution of the Bank of England, and was for sometime carried on within its walls by a motley crowd of dealers, the most prominent of whom were Jews. About the year 1700, however, "the dealers in public securities," says Fenn, in his compendium of the Funds, &c., 105, 10th edition, "were found to encumber the Bank by their increased numbers, and they changed their place of meeting to what is now known as 'Change Alley,' which was for a long time their principal place of resort. The early practices of these speculators were, it seems, not very scrupulous; and, whether with justice or not, a strong public feeling was aroused against 'stock jobbing,' which was denounced as a public nuisance. But war, public extravagance, and the difficulties of the Government, gave new life to the pursuits of stock jobbers, although several Acts were passed to check their operations; and a Bill brought before Parliament by Sir John Barnard, in 1732, making time bargains illegal, was passed into law. } 1 4 I 1 Early Stock Jobbing. Present Stock Exchange. 398 THE STOCK EXCHANGE. But the attempt to put down speculation, when the Government itself encouraged the system of lotteries and other schemes for raising money, was necessarily abortive. An increase in business and in numbers induced the jobbers to remove to Sweeting's Alley, in 1773, when several of the brokers came to a resolution to engage a room to be called the 'Stock Exchange,' where any man might transact business by paying sixpence. Such was the history of the 'Stock Exchange' up to that period. The war, which broke out at the close of the eighteenth century, gave fresh importance to this body, and the increasing transactions in which they were engaged gave rise to the formation of a committee, and subscriptions were raised to erect a building for the special purpose of dealing in the public stocks. The site chosen was Capel Court, where stood the residence of William Capel, Lord Mayor of London in 1504. After the erection of the new building, free admission ceased, and only members who were elected by ballot could be admitted as members by paying an annual subscription. About this time the Stock Exchange acquired, moreover, increased influence, as the enormous loans found necessary to carry on the war after the Peace of Amiens, to 1815, were principally effected through the instrumentality of its members.” The building having become inadequate for the increased business done, it was rebuilt on additional space and opened in its renovated shape in March, 1854. It is situate in Capel Court, lying between Threadneedle Street and Throgmorton Street, in the vicinity of the Bank of England and the Royal Exchange, the brokers and jobbers having offices in the immediate neighbour- hood. There is a joint stock proprietary, dividing amongst themselves nearly, it is believed, as handsome a dividend as that earned by the Norwich Union Insurance Society, between 40 and 50 per cent. per ! THE STOCK EXCHANGE. 399 Present Stock annum on its shares. The members, some of whom are proprietors of the Stock Exchange, are, however, purely Exchange. a voluntary association, and consist of brokers and jobbers, each class at present numbering upwards of a thousand. Each member pays an annual subscription of 21 guineas, the entrance fee being 150 guineas. The superintendence of the building is undertaken by managers who represent the proprietors, while the members are represented by thirty of their number styled "The Committee for General Purposes." The association is not connected with any of the Stock Exchanges in other towns, each of which is guided by its own rules and regulations, however much they may resemble in the main those of the London Stock Exchange. Transactions in the Government Funds or Stocks are Transactions effected through the ordinary London Bank Agents of a Country through country bank, while transactions in other stocks or shares Banks. are entrusted to its regular London Stock Broker, with whom it has an arrangement, and where the amount of business done is large, the ordinary commission is usually divided between them. But in any circumstances the country bank so arranges that its clients will not be put to any greater expense than if they themselves dealt direct with a stock broker. In the execution of orders, a proper understanding exists between the country bank and its broker, particularly as regards the time which an order shall remain in force. If an order be given without limit as to price, it is executed at current prices; and if a limit be fixed and no time mentioned, the order, unless a previous understanding exist, is kept in force according to the inclination or practice of the broker, some brokers keeping such orders in view for only two or three days, while others continue them for a week or two, or until settling day, if not countermanded. Strict adherence must be paid to the 1 } } Contract Note. Stock Record. 400 THE STOCK EXCHANGE. terms of the order given by the principal, for if it is in any way varied in its execution he will not be bound. The Broker's Account, or contract note, should be kept by the Banker; and a copy of it, with the banker's charges added, sent to the client. With the written orders of the client and the broker's accounts carefully preserved and properly arranged, the trouble of keeping a Stock Order Book may be dispensed with. But in connection with transactions in the Stocks or Securities registered in the Books of the Bank of England, an indexed Record will require to be kept with ruled columns on each folio, as thus: Consols. New 3 per Cents. Reduced 3 per Cents. India 4 per Cent Stock. Bank Stock. H Name Designation Particulars and Address of Power TH of of Stockholder. Attorney. THE STOCK EXCHANGE. 40I Record. The last column being intended for statements as to the Stock accounts to which the dividends are to be credited, or as to how they are to be dealt with. If the book be of large dimensions, the columns in each folio may be intersected for two or three names, but it is as well to allow ample space for the introduction of the various operations, or the purchases or sales that may be necessary in connection with many of the names. With a book arranged as above, it will be unnecessary to keep a power of attorney book. If Cash and Account. Orders may be effected either for cash or account. for cash, this is for immediate delivery; if for account, then for settlement on the usual account days, two in the month for general securities, the one being in the middle, and the other at the end of the month. Two days before the settling or pay day is the day for, when that is necessary, carrying over" stock to the following account. The day before the pay day is the "name day," on which day the names, addresses, and designations of the purchasers or sellers must be given, if that has not already been done. In the case of a purchase it is usual to hand the money Purchase. to the broker on or before the pay day. If, however, the purchaser has doubts as to the reliability of the broker, or if influenced by any other good cause, it is quite within his power to withhold payment until receipt of the securities, and, indeed, it is not unusual for a purchaser to effect a settlement through his banker, whom he instructs to pay only on receipt of the certificates, or of the transfer deeds executed by the transferor. In ordinary purchases, whether of railway or other stock, considerable delay sometimes occurs in obtaining the certificates, and it consequently behoves the purchaser to be on the watch if he wishes to get them within a reasonable time. Of money entrusted to a broker, it is observed by Money Melsheimer and Lawrence, in their treatise on the Law and Broker. Z entrusted to } រ Money entrusted to Broker. Payment by Trustee. 402 THE STOCK EXCHANGE. Customs of the London Stock Exchange, 1879, page 44, that "if money is entrusted by the principal into the hands of his broker for investment, the relationship created between them is not merely that of creditor and debtor, and must not be treated as analagous to that between a banker and his customer, but the money is considered as having been entrusted by the principal to his agent in a fiduciary character to be applied in a particular way; consequently, if the broker stops payment with such money in his hands, the principal is entitled to follow the money, and, so far as it can be traced, to claim the return of it, Taylor v. Plumer, 3 M. and S. 562, ex parte Cooke, 4 Ch.D. 123; though, no doubt, the practical difficulty of tracing money, if once paid by the broker into his banking account, will generally limit the remedy of the principal to his claim as a general creditor in the liquidation. This difficulty does not, of course, affect the legal right of the principal to the money, or to any securities or other property which can be shown to have been directly purchased with it." In a recent case, the decision in which occasioned no slight consternation on the Stock Exchange, that of In re Speight, Speight v. Gaunt, 7th, 8th, 10th, and 13th June, 1882, Chan. Div., where a trustee gave his broker cheques for £15,275, payable to the latter, who afterwards absconded, and no part of the money was recovered, it was held that the trustee was compellable by law to make good the amount. The investment was intended to be made in the Debenture Stocks of certain corporations, and it was proved in evidence that the contract note was irregular, there being no account day fixed or commission charged, thus showing that the contract had not been entered into in the market, but with the corporations themselves. From the latter the stocks might have been purchased direct by the trustee without the intervention of a broker. In the course of his judgment Bacon, V.C., 3 THE STOCK EXCHANGE. 403 Trustee. observed: "The law on the subject is, and has for centuries Payment by been, too clear to admit of the possibility of doubt, and neither under Lord St. Leonard's Act, nor in any of the cases in which the court has found excuses for trustees, and on some occasions has been able to relieve them from the burden which is sought to be cast upon them, has the court lost sight of the plain principle that a trustee who takes another man's money into his hands is bound, what- ever other duties he may have to discharge, to take care that that shall be preserved, and not to deal with it or do anything with it which a prudent and reasonable man would not do with his own money. That is the test which is properly to be applied to this and to all such like cases." "Now Mr. Gaunt, the defendant, is fixed with the know- ledge that Cooke, the broker's, pretended dealings had been with the corporations; he is fixed with the knowledge that the money was to go to the corporations; and he draws a cheque in favour of Cooke. Why? It was not Cooke's money. There was no deduction to be made for Cooke's commission, even if that could be an excuse. There was no earthly reason (and I have heard none suggested) when Cooke came and said to Mr. Gaunt, ‘I have bought for you £15,000 worth in three different lots, give me a cheque to pay for them,' why Mr. Gaunt should not have drawn the cheque in favour of the corporations that sold him the lots. Why should he have drawn the cheque in favour of Cooke?" "No suggestion has been made except this, that two eminent stockbrokers, one from London and the other from the country, have been called who both say, 'It is our custom when we buy for clients to take a cheque, in order that we may pay the vendor of the stock.' That may be the custom with men of their character and credit, and that may be the set custom for anything I know; but it is not a lawful custom, or appli- cable to the state of facts which I have just been describing. If they do that, well and good; but that is } ! Trustee. 404 THE STOCK EXCHANGE. Payment by their affair. I cannot adopt it as a rule of law establishing a custom that, if a man employs a broker, and takes from him a sale note, he is thereupon at liberty to pay to that broker the price of the thing bought. Consider what a field that would open to frauds of the most flagrant character. After what I thought it just to say of Mr. Gaunt, it will not be supposed that I am comparing such a case as I suggest with the case before me; but, if it is competent for a trustee to give a cheque to a broker, and thereupon acquit himself of his discharge of his duty as trustee, if the broker has not bought (and in this case Cooke had not bought, or, if he bought, he did not fulfil the contract), what is to prevent a broker and a trustee dividing, in whatever proportions might be convenient to them, the results of such a transaction." This decision, however, has, as these sheets are passing through the press, been reversed by the Court of Appeal, Jessel, M.R., and Lindley and Bowen, L.J.J., 20th January, 1883, 27 S.J., 190; Bowen, L.J. having observed that, though it might have been more prudent for the defendant, wishing to invest in corporation securities, to have gone to the corporations direct, there was nothing improper in his having employed a broker to effect the investment. Assuming that the defendant was right in employing a broker, his lordship could not say that he was not also right in paying the money to the broker in exchange for the bought note, according to the ordinary practice, wise or unwise, which prevailed in purchases on the Stock Exchange. The defendant had no reason to doubt that it was an ordinary Stock Exchange transaction, and there was certainly nothing on the face of the bought note to show that it was a purchase from the corporations direct. And Lindley, L.J., in the course of his judgment, said that although a trustee was not entitled to delegate his trust, it could not be said that he was not entitled to employ a broker for the purpose of making investments of the trust THE STOCK EXCHANGE. 405 Trustee. funds, such employment being conformable to the ordinary Payment by common usage of business. And assuming that the trustee was entitled to employ a broker in making the investment, was he acting properly in paying over the money to the broker in exchange for the bought note? His lordship could not see any impropriety in what had been done by the trustee, as it was not the ordinary course of business in transactions of this nature to get the securities from the broker in exchange for the cheque. In reference to Hopgood v. Parkin, L.R. 11, Eq. 74, his lordship must enter his protest against the notion that, when agents were employed, and properly employed, by a trustee, the trustee must be taken to guarantee that they should act properly in the discharge of their duty as agents. In the case of a sale the certificates should be sent to Sale. the broker two or three days beforehand, and where shares are not fully paid up, the bankers' receipt for the payment of the last call should accompany the certificates. In some cases the usual Certificate of Stock is accompanied by a "Registration Certificate," and this on a sale of the stock need not be given up, its retention often proving useful as a record of the transaction. Documents sent to be When certificates are sent to be exchanged for others, or Scrip Certificates sent for registration, or bankers' receipts exchanged. for deposits on stocks or shares allotted, are sent to be exchanged for certificates, there should, for additional safety, be written across the face of each document the purpose for which it is transmitted. In issuing new shares to an allottee, if the latter is not New Shares disposed to accept them, they may in some cases be sold or transferred by means of Letters of Renunciation, which allow new names to be substituted without any attendant expense in the change. In allotments to several persons in a joint account, all should sign the Letters of Renunciation, though in some instances the signature of the allottee named is accepted. 1 + 3 Executors, &c., transferring. 406 THE STOCK EXCHANGE. For the guidance of executors, &c., some of the railways have issued a notice to the following effect, to be kept with the Certificates of Stock, so as to ensure the correct pre- paration of future transfers :- "Deeds of transfer from the executors or administrators of a deceased proprietor, or from the survivors in any joint account when the decease of either party therein has been proved, should be worded as follows, in order to agree with the entry in the books. [Full names, address, and designation to be given in each case.] EXECUTORS OR ADMINISTRATORS ACCOUNTS. We, A……………………. B………….. A...... D........., of... of.... and C......... &c. • Executors [or Administrators] of E.. , F...... late of.... JOINT ACCOUNTS. We, A......... B……………………., of....... D........., of. of.... and C......... Dividends. with E......... F........., late of.. &c. survivors in a joint account > deceased, Proprietors are particularly requested to notify to the Registrar any change in their designation or address, and in case of Transfer of the Stock, such designation and address must be inserted in the Deed." 21 And with reference to the payment of dividends, the practice is being introduced by some of the larger railways to send, with the permission of the Bankers, a dividend warrant accompanied by statements of particulars of the dividends due to each proprietor, for a single amount, to the Bankers of the proprietors, the former apportioning and crediting the sums due to the latter in their respective accounts, each proprietor in the first instance having by letter authorized the Railway Company to pay to his Bankers the dividends or interest that may from time to time become due on any stocks or shares held by him. $ { THE STOCK EXCHANGE. 407 Money. The consideration money in a Transfer sometimes Consideration differs from that which the seller actually receives, and an explanation of this is usually given at the foot of the Transfer thus :-"The consideration money set forth in a Transfer may differ from that which the first seller will receive, owing to sub-sales by the original buyer; and the Stamp Act requires that in such cases, the consider- ation money paid by the sub-purchaser shall be the one inserted in the deed, as regulating the ad valorem duty." And see ante p. 383. The effect of a Transfer containing a greater consider- ation than that paid to the transferor, and having an explanatory note as above appended, was tested in the action of Case v. Mc Clellan, C.P., 24th Nov., 1871, 20 W.R. 113, where it was held that under such circum- stances a transferor was transferor was not justified in refusing to execute the Transfer, Willes, J., observing that "The objection on which the defendant grounded his refusal to sign this Deed is, in my opinion, a hypercritical one. Whatever might have been the difference between the parties would have been removed by inserting, instead of 'paid to me,' the words 'paid upon the completion of the contract,' and it would have been as well to do so. As far as the Act is concerned, the reference to it is inaccurate, for the effect of it simply is, that upon a conveyance to a sub-purchaser the duty should be paid upon the price paid by him, as if the first seller had conveyed to him at that price. I am quite certain that a man cannot be compelled to sign a lie, but it is unnecessary to give an opinion on that, for here the note operated as an interpretation clause; and I cannot agree that because the seal happens to be between it and the rest of the deed, it is, therefore, no part of the deed. The note is just as much part of the deed as if it were referred to by asterisk." And Keating, J., gave it as his opinion that "If this deed "If this deed were without the N.B., 1 } } î 1 1 408 THE STOCK EXCHANGE. Consideration I think that the defendant would have been justified in Money. refusing to sign it, because no agreement among share- brokers for their own convenience can oblige a person to sign that which is untrue, and which he knows to be untrue. But the note makes all the difference, though even with it, I think, the form of the Transfer is un- suitable. The N.B. deprived the deed of that character, which justified him in refusing to execute it. The rule must, therefore, be discharged." Brett, J., concurred. Blank Transfers. When void. With reference to Transfers in blank signed by a transferor, Melsheimer and Lawrence observe, p. 96:- "Under the Companies Clauses Act, it was necessary that all transfers of shares should be by deed, but under the Companies Act of 1862 (25 and 26 Vic. c. 89, s. 22), shares are to be transferable in the manner provided by the regulations of the company, which may or may not require the execution of a deed. (See Ex parte Sargent, L. R., 17 Eq. 273, where the transfer was by deed.) For example, under the provisions of Table A of this Act, which constitute the regulations of every limited company formed under the Act, unless excluded or modified by the articles of association, it is only necessary that the 'instrument' of transfer be executed by the transferor and transferee; there is, apparently, nothing to make the sealing or delivery of a deed compulsory. "In the case, therefore, of a company subject to the Companies Clauses Act, or of a company whose regulations. require a transfer to be by deed, a transfer in blank, that is to say, signed by the transferor, leaving a blank for the name of the transferee, or for the description of the shares, being wholly inoperative as a deed, is void at law (Hibblethwaite v. M‘Morine, 6 M. and W. 200; Swan v. North British Australasian Co., 7 H. and N. 603; 2 H. and C. 175); neither will the Committee of the Stock Exchange interfere (except under special circumstances) in any question arising out of the delivery of securities by 1 THE STOCK EXCHANGE. 409 transfer in blank. A deed which is void in this way may Blank Transfers. be made good by filling up the blanks in the presence of When void. the parties who had executed it, the ratification by them being evidence of a re-delivery. Effect upon "But, inasmuch as the contract for the sale of the shares is binding from the moment it was made, quite inde- the contract. pendently of any deed, or even of any writing, the mere execution of a void deed will of course not prevent the party from being held to his bargain, or from being liable in equity to execute a proper legal transfer (Morris v. Cannan, 4 De G., F. and J. 581. But as to scrip, see Jackson v. Cocker, 4 Beav 59, and Beckitt v. Bilbrough, 8 Ha. 188); this question will depend entirely upon the validity of the original contract (See Tayler v. Great Indian Peninsular Railway Co., 4 De G. and J. 559). "Where the regulations of the company do not require When valid. the instrument of transfer to be under seal, a blank transfer will be perfectly valid, although purporting to be executed as a deed, for the addition of a seal will not render the instrument less effectual than it would have been without a seal (Ortigosa v. Brown, 38 L. T., N. S. 145). estoppel. 'How far the execution of a void transfer deed would When ope- rating as operate as an estoppel, that is to say, how far a person who negligently executes a transfer deed in blank would be estopped as between himself and an innocent person who has acted upon the faith of its being valid, is a question which does not seem to have been decided. It was very much discussed in the well known case of Swan v. N. British Australasian Company (7 C. B., N. S. 400; 7 H. and N. 603; and in Ex. Ch., 2 H. and C. 175), in which, after considerable difference of opinion, it was held by some of the judges that where a deed is void in that way there could be no estoppel. In that case the transfer deed had been executed altogether in blank; the person who executed it owned shares in two companies, and gave authority to his broker to fill them up with shares in one ' ! Blank Transfers. When ope- rating as estoppel. Rights of Mortgagee. 410 THE STOCK EXCHANGE. company, and the broker filled them up with shares in the other company, which were afterwards transferred to an innocent person. The court held that the whole thing was a forgery, and that the proximate cause of the loss was not the negligent execution, but the forgery by the broker. The decision does not go the length of saying that if the broker had filled them up with the same shares which he was authorized to insert, the deed being, never- theless, void in law, because executed in blank, the principal might not have been estopped (See Hunter v. Walters, L. R., 7 Ch. 75).” By a case just decided, a mortgagee by deposit of a chose in action has no greater rights than the pawnee of a chattel, and has therefore no power of sale over such chose in action, unless a time has been fixed for redemption and has expired, or he has given notice to the mortgagor demanding repayment. In this case, Fry, J., said: "The case gives rise to two questions. First, was the effect of the deposit of the blank transfer to confer a power of sale, or only the right to perfect the security. The general principle is clear, that in the case of a pledge of chattels, the pawnee has no right of sale, unless there be a time fixed for redemption, and that time has expired, or he has given the pawnor notice of his intention of doing so in default of payment; and the law is so stated in Story on Bailments. I see no reason why the rule applicable to a pledge of chattels physical should not hold good in the case of a mortgage of a chose in action. But it is contended that the point has been determined in the defendant's favour by Ex parte Sargent [ante p. 408. His lordship here stated the facts of that case, and continued]: The Master of the Rolls, therefore, puts the right he was sanctioning not on there being any implied power of sale in such a mortgage of shares by deposit, but on the power in the mortgagee to transfer his security. This case, therefore, is no authority against the view I adopt. 1 THE STOCK EXCHANGE. 4II The second question is did Q. [who was the third party to Rights of Mortgagee. whom the blank transfer and certificate of shares were handed as security by the plaintiff's stockbroker, Clark, who afterwards died, and with whom they had in the first instance been deposited to secure an advance] acquire the legal estate in the shares without notice of the plaintiff's title? The facts of the case show that he did not. The approval of the directors was required to perfect the transfer; this was not given until the 30th of June, and on the 28th notice had reached Q. The plaintiff, therefore, on paying the £150 with interest, is entitled to redeem the shares, and the defendant, Q., must do all necessary acts for transferring them into his name; and as tender of the amount was made before action, this judgment must be with costs against both defendants." France v. Clark, Chan. Div. 30th Jany., 5th Feby., 1883, 31 W. R., 374. Ten days are allowed for a seller to deliver his shares, on Delivery. expiry of which time a purchaser may, on non-delivery, buy in at the then market price, and charge the defaulter with the difference. Woman. When stock is registered in the name of a married Married woman, railway companies have hitherto as a rule required the husband's assent on forms furnished by them for the purpose. Where stock to which an infant is beneficially Infant. entitled is in his name and that of another person, it has been held, In re Harwood, 51 L.J., Ch. 579, that the Court has power under the Trustee Act, 1852, 16 and 17 Vict., c. 55, s. 3, to make an order vesting the right to transfer in the other person. Documents. In the event of the loss or destruction of Railway Lost, &c., Certificates or Dividend Warrants, application should be made to the Railway Company, who will supply the necessary forms to be filled up for the purpose of obtaining In the duplicates of the lost or destroyed documents. case of bonds and other securities, transferable by mere delivery, great care should be exercised in connection with 130 * ! Lost, &c., Documents. Drawn Bonds. Bank Shares. Act to amend law of sale 412 THE STOCK EXCHANGE. their custody and transmission, as in the event of their loss. they cannot, unlike securities registered in the name of an owner, be replaced by duplicates without very great trouble, expense, and delay. Unless otherwise notified, drawn bonds are usually paid off at the next coupon dates. With the view of preventing fictitious dealings, and repressing pernicious speculation in Bank shares, practices which brought down the Agra and Masterman's Bank, and injuriously affected other Banks, the 30 and 31 Vict., c. 29, commonly called "Leeman's Act," was passed on 17th June, 1867, by which it is rendered incumbent that the distinguishing numbers of the shares, or the name of the registered shareholder, be given in the contract of sale, the following being the terms of the Act :— (( Whereas it is expedient to make provision for the and purchase prevention of contracts for the sale and purchase of shares and stock in joint-stock banking companies, of which the sellers are not possessed, or over which they have no control: of Shares in Joint Stock Banks. Contracts for sale, &c., of "May it, therefore, please Your Majesty that it may be enacted; and be it enacted by the Queen's most excellent Majesty, by and with the advice and consent of the Lords, spiritual and temporal, and Commons, in this present Parliament assembled, and by the authority of the same: "I. That all contracts, agreements, and tokens of sale and Shares to be purchase which shall, from and after the first day of July, void unless the one thousand eight hundred and sixty-seven, be made or numbers by entered into for the sale or transfer, or purporting to be for the sale or transfer, of any share or shares, or of any stock or other interest, in any Joint Stock Banking Company in the United Kingdom of Great Britain and Ireland, consti- tuted under or regulated by the provisions of any Act of Parliament, Royal Charter, or Letters Patent, issuing shares or stock transferable by any deed or written instrument, shall be null and void to all intents and which such Shares are distinguished are set forth in contract. THE STOCK EXCHANGE. 413 numbers by Shares are are set forth in contract. purposes whatsoever, unless such contract, agreement, or Contracts for sale, &c., of other token shall set forth and designate in writing such Shares to be shares, stock, or interest by the respective numbers by void unless the which the same are distinguished at the making of such which such contract, agreement, or token on the register or books of distinguished such Banking Company as aforesaid, or where there is no such register of shares or stock by distinguishing number, then unless such contract, agreement, or other token shall set forth the person or persons in whose name or names such shares, stock, or interest shall, at the time of making such contract, stand as the registered proprietor thereof in the books of such Banking Company; and every person, whether principal, broker, or agent, who shall wilfully insert in any such contract, agreement, or other token, any false entry of such numbers, or any name or names other than that of the person or persons in whose name such shares, stock, or interest shall stand as aforesaid, shall be guilty of a misdemeanor, and be punished accordingly; and, if in Scotland, shall be guilty of an offence punishable by fine or imprisonment. Shareholders "II. Joint Stock Banking Companies shall be bound Registered to show their list of shareholders to any registered may see lists. shareholder during business hours, from ten of the clock to four of the clock. "III. This Act shall not extend to shares or stock in Extent of Act the Bank of England or the Bank of Ireland.” - limited. We are afraid, however, that the provisions of the Act Infringement are not in all instances followed, though its operation has of Act. been on the whole beneficial. In Neilson v. James, Court of Appeal, 4th May, 1882, 46 L.T., N.S., 791; 51 L.J., Q.B., 369, the defendant, a stock broker, sold, on 4th December, bank shares for the plaintiff to a stock-jobber for the account on 15th December, the contract notes not containing the name of the plaintiff, the registered proprietor of the shares. Between the 4th and 13th December-the latter the name 414 THE STOCK EXGHANGE. Infringement day-the Bank stopped payment, and the jobber repudiated the contract. The defendant alleged a of Act. Bargains in New Loans and Shares. Defaulter. custom on the Stock Exchange to disregard the provisions of the Act. In an action for damages by the plaintiff, who had become liable for calls, it was held that the duty of the defendant was to make a valid contract on 4th December, and that the custom alleged was not legal or reasonable, and was not binding on plaintiff, and, therefore, defendant was liable for the amount which plaintiff would have received for the shares if the contract of sale had been binding. Judg- ment of Stephen, J., reversed. By the rules of the Stock Exchange, “bargains in the scrip of a new loan, or the shares of a new company are contingent upon the appointment of a special settling day," and the committee will appoint a special settling day for transactions in the affairs of a new company, provided that no allegation of fraud be substantiated; that there has been no misrepresentation or suppression of material facts; that sufficient scrip or shares are ready for delivery; and that no impediment exists to the settlement of the account." A broker liable to a jobber on shares in a new company bought before the appointment of a settling day, cannot, on the ground that the settling day has been obtained by fraud, object to a summons for payment, unless he can show that the jobber himself was a party to the fraud. And where moneys owing on Stock Exchange transactions to a defaulting member of the Stock Exchange have been received and distributed by the official assignee, another member, a creditor of the defaulter, who has received his dividend under such distribution, may, nevertheless, take out a summons against the defaulter for the unpaid balance. Ex parte Harris. In re Ward, Court of Appeal, 9th March, 1882, 30 W.R. 560; 20 L.R., Ch. D. 356. 1 2 1 لو # THE STOCK EXCHANGE. 415 Debt. The prices of shares contracted to be bought or sold Liquidated by such a defaulter, are, by the rules of the Stock Exchange, to be fixed by the official assignee of the Stock Exchange, and the differences paid to or claimed from the assignee. Held that the price so fixed is substituted for the original contract and is a liquidated sum due under the contract, and therefore, that a bankruptcy petition may be founded upon a claim for such price. Ex parte Ward. In re Ward, 17th Nov., 1882, 31 W.R., 112. Shareholders In limited Banks and in Banks which have been registered as unlimited under the Joint Stock Companies' liability. Acts, the liability of a shareholder is continued for one year after the date of transfer, while in unregistered companies the liability extends to three years, but in both cases the responsibility is only for debts incurred to the date of the termination of the connection, and also after all the existing shareholders have been first exhausted. In the case of Banks and of Companies such as Dock, Canal, Electric Lighting, Gas, Railway, Tramway, Water, and other Companies specially incorporated by Act of Parlia- ment, there is no liability beyond the fully paid up shares or stock. Cost Book With reference to Mining Companies, these may be Mining formed as ordinary Joint Stock Companies, subject to the Companies. Joint Stock Companies' Regulation Acts, but besides being thus constituted, they may be established on the "Cost Book" principle, or according to a general custom which Mines. obtains in the stannaries or mining districts of Devon and Cornwall. Under this system of partnership a shareholder has the power of transferring his shares without the consent of his co-partners, the transference being effected simply by an entry in the Cost Book, which, besides cost, sales, and other particulars, contains a record of the names and addresses of all the shareholders, with the number of shares. held by each, and is signed either by the shareholders or 1 > { Cost Book Mines. 416 THE STOCK EXCHANGE. by the purser of the company as their agent. A share- holder has also the power of relinquishing his shares at pleasure, upon giving notice in writing to the purser at any of the bi-monthly or quarterly meetings of the company, and he may, moreover, claim the proportion then due to him in the value of machinery, materials, ores, and money belonging to the company, though such a claim is seldom resorted to, as a market for the shares can generally be found. Until he transfers his shares or withdraws from the company, a shareholder is liable for all the debts incurred, though there is protection so far afforded him in the circumstance that such companies cannot be carried on upon any general credit, as all accounts must be made up and all expenditure passed at the bi-monthly or quarterly meetings of the partnership. At these meetings the profits and losses are divided pro rata, and a dividend or call declared and payable immediately, in accordance with the actual position of the company's affairs at the time. The partners have not an implied authority to bind each other by bills of exchange, or by borrowing money from bankers, nor do they assume equal authority, the management of the business being entrusted to a certain portion of their number. Ricketts v. Bennett, 4 Com., B. R. 686. As to how the amount of the liability of a shareholder is to be estimated on his relinquishment of his shares, it has been held in the case of In re The Frank Mills Mining Co., before the Court of Appeal, on 22nd January, 1883, 27 S.J. 213, that "he must pay such a proportion of the estimated indebtedness as the number of his shares bore to the number of the shares which were held by solvent share- holders, the solvency being determined at the date of the notice of relinquishment, at which time the valuation of the assets must also be made, otherwise the retiring share- holder would throw upon those of the continuing share- holders who were solvent all the loss resulting from the insolvency of others." THE STOCK EXCHANGE. 417 An owner of shares in a cost book mine, which have Cost Book been invalidly forfeited, cannot, while the concern is not Mines. prosperous, lie by for six years without claim or offer, and then, when prospects become favourable, come forward and assert his right. Clarke and Chapman v. Hart, 6 H. L. C., 633, 7 W. R., H. L., Dig. 4, distinguished. Prendergast v. Turton, 1 Y. and C. C. C. 98 followed. Rule v. Jewell, Ch. Div. 31st May, June 1, 1881, 29 W. R. 755. (( The official already alluded to under the title of Purser," is the paid agent of the company, his salary being paid monthly, and to him belongs the duty of preparing the accounts, and of answering for the receipts and disbursements of the partnership. Any disputes arising amongst the partners may be brought before the Stannary Courts, which are local tribunals established for the administration of justice amongst the miners, and having both a legal and an equitable jurisdiction. It may be added that every book and document belonging to the company is open to the inspection of each shareholder, and that within a few days after every meeting of shareholders a printed statement of the accounts sub- mitted to the meeting, together with the necessary reports, &c., are sent to each shareholder. The largest dividend- paying mines in Cornwall are conducted on the Cost Book principle. To bring a company within the winding-up jurisdiction Winding up of the Stannary Courts to the exclusion of the jurisdiction of the High Court of Justice under sec. 81 of the Companies' Act, 1862, it must have been formed for working mines exclusively within and subject to the jurisdiction of the Stannaries, and also have actually commenced working. In re East Bottallack Consolidated Mining Co., 13 W.R. 197, 34 Beav. 82, overruled. Decision of Hall, V.C., reversed. In re Silver Valley Mines Co., L.R., 18 Ch. D. 472, 45 L.T. 104. By the Stannaries Act, 1869, 32 and 33 Vict., c. 19, A A } Fraud. 418 THE STOCK EXCHANGE. Winding up. being "an Act for amending the law relating to mining partnerships within the within the Stannaries of Devon and Cornwall, and to the Court of the Vice-Warden of the Stannaries," passed 24th June, 1869, it is enacted by section 35, with reference to a fraudulent transfer of shares that, “a transfer of shares made for the purpose of getting rid of the further liability of a Shareholder, as such, for a nominal or no consideration, or to a person without any apparent pecuniary ability to pay the reasonable expenses of working a mine, or to a person in the menial or domestic service of the transferor, shall be presumed to be a fraudulent transfer, and need not be recognised by the company, or by the court on the winding-up of the company, whether the company be a registered or unregistered company." And by section 25, as to the limitation of liability of past shareholders in a winding-up, it is enacted that “on a company being wound up in the Court of the Vice-Warden or any other court, a former shareholder, notwithstanding the provisions contained in the Companies Act, 1862, pt. 8, s. 200, shall not be liable to contribute to the assets of the company, if he has ceased to be a shareholder for a period of two years or upwards before the mine has ceased to be worked, or before the date of the winding- up order." Liability. Securities. Share List. The securities now dealt with on the Stock Exchange are of great variety and very numerous, their value being estimated at no less than £6,000,000,000, the total additions to the official list in 1881 having been upwards of £337,000,000. In August, 1697, the first Share List, called "The Course of the Exchange," was published. It contained six securities, increased by the year 1747 to 20, and was published twice weekly. In 1811, the list was considerably enlarged, and was further increased in size in 1825, and also in 1835. In 1844, it was published daily as the } THE STOCK EXCHANGE. 419 "Daily Railway Share List," and after intermediate Share List. enlargements was doubled in size in 1867, and still further increased in 1878 and 1881. Without the sanction of the Committee no member is allowed to publish and sell the List. The record of "closing quotations is not officially revised, and the prices inserted of non- current, or not readily marketable securities, are only nominal and often very misleading.* "" An explanation as follows may now be offered of some of the terms used in connection with the Stock Exchange and its transactions :— Terms. ACCOUNT, THE.-The period of settlement, including the Technical carrying over or continuation, and the option account day, the name day, and the settling or pay day, or, as it is often called, the account day. ACCOUNT DAY.-See pay day. ACCOUNT, FOR.-Bargains for settlement at next settling day, instead of for ready money. BACKWARDATION.—The sum paid by the seller to the purchaser for postponing delivery of the securities until next account. BEAR.-A speculator who, to increase his profits, does his utmost by foul or fair means to bring or bear down prices, to buy against a previous sale. BULL.-A speculator who, with the same view, uses similar efforts to send or toss up prices, to sell against a previous purchase. BROKER.—A member of the Stock Exchange who buys and sells on behalf of his principal. His position is that of an agent, and he acts by license from the Lord Mayor and Aldermen of the City of London, and pays £5 annually to the Chamberlain of the city. 57 Geo. III., c. 60, * The official List of the New York Stock Exchange, besides quoting prices, records the total number of shares or bonds sold. The right of membership in the New York Stock Exchange has become a somewhat valuable one, as prices ranging from £5,000 to £7,000 have recently been given for a seat in that institution. { ; Technical Terms. 420 THE STOCK EXCHANGE. 33 and 34 Vict., c. 60, s. 5. Formerly he was bound to swear that he would not buy or sell on his own account, hence the term "Sworn Broker," at one time in common use. As to the statutes and some of the cases in con- nection with brokers and stock jobbing, see Vol. I., page 329. CALL.-See Options. CARRYING OVER.-Closing an account at the one settle- ment and reopening it for the next settlement, a certain percentage being paid for the accommodation. The carrying over day is the day but one previous to the account or pay day. CONSOLS.-A contraction, as has already been seen, of the term, Consolidated Annuities. CONTANGO. The sum paid by the purchaser to the seller for carrying over to next account the payment for the securities purchased. Contango day is the same day as carrying over day. CONTINUATION.-See carrying over. CORNER, TO.-To overreach or outmatch in speculation. DEALER.—See Jobber. DELIVERY, FOR.-Payment and delivery on the day the bargain is struck., DIS., OR DISCOUNT.-Securities selling below par. EX COUP., EX DIV., OR X. D., Ex IN.-Without coupon, or dividend, or interest-or the price of the security, not including the coupon, dividend, or interest falling due. Ex NEW.-Without right to new shares, or new issue of stocks. FACE VALUE.-Nominal value. INSCRIBED STOCK.-See Registered Stock. JOBBER OR DEALER.—A member of the Stock Exchange, which, as we have seen, consists of two classes of persons, the brokers and jobbers. The jobber acts between broker and broker, buying and selling at the market prices, and depending generally for his profits on the difference between } t 2 THE STOCK EXCHANGE. 421 Terms. the buying, and the selling prices, which in the case of Technical Consols is % per cent. Many of the jobbers, however, are, from successful speculations, owners of large amounts of securities, as they are at liberty to deal in them on their own account. For the proper and regular fulfilment of their contracts and the validity of the transfer deeds the jobbers are liable to the brokers. A jobber requires no license, and should he act as a broker he subjects himself to a penalty of £100. LAME DUCK.—A defaulter in the Stock Exchange. MAKING A PRICE.-Jobber's quotation of prices for buying and selling in the same security to broker. MAKING UP PRICE.—Price fixed for carrying over secu- rities. MONEY, FOR.-Bargains for ready money instead of for account. NAME DAY.-The day before the pay day is the name day, on which day the names must be given for all transfers to be taken up. Should the purchasing jobber not tender the name by half-past two o'clock, the selling broker may re-sell and charge any loss to the jobber. OMNIUM. Of all, or the whole of the distinct funds of which a loan may be composed. See vol. I., pp. 329, 330. OPTIONS.-Money or percentages paid for the option of buying and selling securities at a certain price at a future time. Such are the options called "Put and Call." "Put" is the giving so much for the option of selling at a certain time, the price and date being fixed when the option money, or percentage, is given. And "Call," for buying in a similar manner. Should the future price. prove the same as the price fixed, the optioner may declare whether he buys, sells, or withdraws. Thus, if I per cent is given for the right to sell £1000 stock at a certain price, say £1000, at a future time, £10 is risked. If before the time fixed the stock falls I per cent, it may be bought without profit or loss to the } C Tchnical T.rms. 422 THE STOCK EXCHANGE. optioner; if it falls 2 per cent, then £10 would be gained, and so on proportionally to further falls. Should the stock rise, however, instead of fall, or remain at the same price, then no action need be taken, and £10 only, being the amount paid for the option, will be lost. Option account-day is the day before name-day. PAR.-An equivalent without discount or premium, as stock for £100 selling at £100, or shares for £100 with £50 paid up, selling at £50, are at par prices. PAY DAY.-The day when all transfers should be completed and paid for, though, as we have seen, ten days additional are allowed the seller for delivery of the securities, after which the purchaser may buy at the current price and charge the difference to the defaulter. The pay day is once a month, generally near its commencement, for consols; and twice a month, the middle and end, for other stocks and shares, English and Foreign. PREM. OR PREMIUM.-Securities selling above par. PRINCIPAL. The outside buyer or seller employing the broker. Principals are bound by the lawful usages of the Stock Exchange. As observed by Kelly, C. B., in Bowering v. Shepherd, L. R., 6 Q. B., 327; "the cases of Grissell v. Bristowe, L. R., 3 C. P.; 4 C. P., and Coles v. Bristowe, L. R. 4 Ch. 3, with several other decisions in Equity, establish, and it has now become settled law, that where a contract for the purchase and sale of shares has been entered into between individuals through their respective brokers, or with the intervention, as purchasers or sellers, of jobbers, members of the Stock Exchange, the lawful usages and rules of the Stock Exchange are incorporated into and become part and parcel of all such contracts, and the rights and liabilities of individuals, parties to any such contracts are determined by the operation upon the con- tracts of these rules and usages." A principal has no remedy against his broker, who buys at the highest and THE STOCK EXCHANGE. 423 Terms. sells at the lowest prices. But if a broker deals with Technical himself instead of third persons, the principal may either withdraw from the transaction or recover any profit that may have been made from it by the broker. The cases in connection with this point are Brookman v. Rothschild, 3 Sim. 153, 5 Bli. N. S. 165 S. C., H. L.; Dunne v. English L. R. 18 Eq. 524; Gillet v. Peppercorne 3 Beav. 78; Kimber v. Barber L. R. 8 Ch. 56; Bank of Bengal v. Macleod 7 Moo. P. C. C. 35; Wilson v. Short 6 Hare 366; Ex parte Dyster 2 Rose 349; and Fox v. Mackreth 1 L. C. Eq. 123. PUT, AND PUT AND CALL.-See Options. QUOTATIONS.—The prices at which securities are quoted. The fractional parts are those of the pound sterling, thus: 1/16 1/8 1/4 3/8 1/2 1/3 5/8 12/6 2/6 3/4 15/- 5/- 7/8 17/6 7/6 15/16 18/9 ... 10/- REGISTERED STOCK.-Stock inscribed or registered in the name of the owner, in contradistinction to securities payable to bearer. SHARE. One of an equal number of portions into which the capital of a Joint Stock Company is divided. Unlike stock, a share is indivisible. STAG. A non-member, or "outsider," who deals as a broker without the house. SCRIP. An abbreviation of subscription, denoting the documents acknowledging payments of deposits and calls, or instalments on shares and stocks, or loans, prior to the issue of certificates. And see Vol. I., p. 330. By the Stamp Act of 1870 the duty of Id. is imposed on scrips, in the manner seen ante pp. 387, 388. STOCK.-A term used for the public funds, and also generally to paid-up funds or capital, the amount of which is indefinitely divisible. Paid-up shares are frequently consolidated and converted into stock. } រ 3 ཏྭཱ Technical Terms. Contracts to pay Differences. 424 THE STOCK EXCHANGE. TIME BARGAINS.-These, in their ordinary acceptation, form a somewhat important feature in the transactions of the Stock Exchange. They are bargains to deliver securi- ties at a certain price at a future time named, the purchaser believing that they will rise in price in the interval, so that he may be able to sell at a profit, and the seller that they will fall so that he may re-buy at a lower price. At the time named a settlement is effected without payment of the price, the losing party merely paying the difference. Commission and money paid for differences may, under certain circumstances, be recovered by the broker. And by Lindley, J., the law was thus laid down in Thacker v. Hardy and two other actions of a similar character brought before him, 2nd July, 1878, 27 W. R. 158: "I have taken some pains to study these cases and the facts, and although the transactions are numerous, and a little difficult to trace, in substance they come out easily enough. The three actions are brought by a broker against his principals for indemnity against liabilities incurred by the broker in buying and selling stocks and shares upon the Stock Exchange for the defendants by their authority. The main defence in each case is that the claim is founded on gaming and wagering transactions, in respect of which no action can be brought. In order to decide the point thus raised it is necessary to consider, first, the real nature of the agreement between the plaintiff and the defendants; and, secondly, how the law stands with respect to gaming and wagering transactions in stocks and shares. "As regards the true nature of the agreement between the plaintiff and the defendants, the conclusions at which I have arrived are as follows:-(1) That the defendants are speculators, and that the plaintiff knew them to be so; (2) that the defendants employed the plaintiff to speculate for them on the Stock Exchange; (3) that they knew, or must be taken to have known, that in order to carry out their transactions the plaintiff would have to enter into } } THE STOCK EXCHANGE. 425 to pay contracts to buy and sell, as the case might be, and, in Contracts order to protect himself and the defendants, to enter into Differences. other contracts to sell or buy respectively; (4) that there was, in fact, no other way in which the plaintiff could speculate for the defendants as they desired; (5) that the plaintiff did buy and sell accordingly; (6) that the defendants never expected or intended to accept actual delivery of what the plaintiff might buy for them, nor actually to deliver what he might sell for them, and that the plaintiff knew that the defendants never expected or intended so to do; (7) that the defendants nevertheless knew that they incurred the risk of having to accept or deliver, as the case might be, but were content to run that risk in the expectation and hope that the plaintiff would be able so to arrange matters as to render nothing but differ- ences payable to or by them, as the case might be; (8) that unless the plaintiff could arrange matters as expected, the defendants would be wholly unable to pay for what was bought for them, or deliver what was sold for them, and that the plaintiff knew perfectly well that the defendants would be unable to do so. "I proceed next to examine the law applicable to trans- actions of this kind. The only statute now in force and material to be noticed is the 8 & 9 Vic., c. 109, s. 18, which, in effect, declares all contracts by way of gaming and wagering null and void, and renders actions for the recovery of money on any wager unsustainable. This Act does not expressly mention or allude to Stock Exchange transac- tions; but it has been decided that agreements between buyers and sellers of shares and stocks, to pay or receive the differences between their prices on one day and their prices on another day, are gaming and wagering transac- tions within the meaning of the statute: Grizewood v. Blane, II C. B. 538; Barry v. Croskey, 2 J. & H. 1. 10 W. R. Ch. Dig. 20; and Cooper v. Neil, 27 W. R. 159, all decide that. But the plaintiff did not agree to buy or sell 1 1 ? Contracts to pay Differences. F 426 THE STOCK EXCHANGE. from or to the defendants, and I have the authority of Lord Justice Brett for saying that the statute only affects the contract which makes the bet or wager. The agreement between the plaintiff and the defendants rendered it necessary that the plaintiff should himself, as principal, enter into real contracts of purchase and sale with jobbers, and the plaintiff accordingly did so, and in respect of these contracts he incurred obligations for the non-performance of which actions could and can now be brought against him. It is against the liability so incurred that he seeks to be indem- nified. "Upon general principles an agent is entitled to indem- nity from his principal against liabilities incurred by the agent in executing the orders of his principal, unless those orders are illegal, or unless the liabilities are incurred in respect of some illegal conduct of the agent himself, or by reason of his default. What the plaintiff was employed in these cases to do was to buy and sell on the Stock Exchange; and this he did; and everything he did was perfectly legal, unless it was rendered illegal as between the defendants and himself by reason of the illegality of the object they had in view, or of the transactions in which they were engaged. "Now, if gaming and wagering were illegal, I should be of opinion that the illegality of the transactions in which the plaintiff and the defendant were engaged would have tainted, as between themselves, whatever the plaintiff had done in furtherance of their illegal designs, and would have precluded him from claiming in a court of law any indem- nity from the defendants in respect of the liabilities he had incurred: Cannan v. Bryce, 3 B. & A. 179; McKinnell v. Robinson, 3 M. & W. 434; Lyne v. Siesfold, I H. & N. 278. But it has been held that, although gaming and wagering contracts cannot be enforced, they are not illegal; Fitch v. Jones, 3 W. R. 507, 5 E. & B. 238, is plain to that effect. Money paid in discharge of a bet is a good THE STOCK EXCHANGE. 427 to pay consideration for a bill of exchange: Oulds v. Harrison, 3 Contracts W.R. 160, 10 Ex. 572; and if money be so paid by a plaintiff Differences. at the request of a defendant, it can be recovered by action against him: Knight v. Cambers, 15 C. B. 562, 3 W. R. C. L. Dig. 187; Jessop v. Lutwyche, 10 Ex. 614, 3 W. R. C. L. Dig. 195; Rosewarne v. Billing, 12 W. R. 104, 15 C. B. N. S. 316; and it has been held that a request to pay may be inferred from an authority to bet; Oldham v. Ramsden, 44 L. J. C. P. 309, 23 W. R. Dig. 32. Having regard to these decisions, I cannot hold that the statute above referred to precludes the plaintiff from maintaining these actions. "It was, however, suggested that, independently of that statute, the gambling here was of so pernicious a nature as to be illegal on grounds of public policy. That the defend- ants were reckless speculators, and that the plaintiff knew it, I consider to be beyond all doubt; but it does not follow that what they did or aimed at was illegal. In one sense they were all gamblers; but care must be taken not to be misled by an epithet; and, in order to avoid ambiguity, I have already pointed out exactly what the real nature of their transactions was. Such gambling as this, however demoralizing and reprehensible, does not appear to me to be illegal, and my reasons for this opinion are as follows. It required a statute of 7 Geo. II., c. 8, to prevent gambling in the public funds; and notwithstanding the strong con- demnation, in the preamble, of such gambling, the Act was itself repealed in 1860; see 23 & 24 Vict., c. 28. Moreover, even when the Act was in force, gambling in shares and foreign stocks was held not to be illegal either under the Act or at common law. Lord Tenterden, indeed, was of opinion that such gambling was illegal at common law. He said so in Bryan v. Lewis, but this opinion was declared erroneous in Hibblewhite v. M'Morine, 6 M. & W. 200. Under these circumstances, I am unable to hold that the transactions engaged in by these parties were illegal, or that the purchases and sales made by the plaintiff were made in f } Contracts to pay Differences. 428 THE STOCK EXCHANGE. pursuance of, or to attain, an illegal object. This view is supported by the judgment of Lord Justice Brett in Cooper v. Neil, supra, and by the case of Ashton v. Dakin, 7 W. R. 384. << 'In answer to the argument that a contract which is void and unenforceable cannot be made the foundation of an implied promise to indemnify, it appears to me sufficient to say that an obligation to indemnify is created whenever one person employs another to do a lawful act which exposes him to liability, and that, in my view of the evidence, the defendants did authorize the plaintiff to incur liability by buying and selling as above described. I am unable to draw the inference which the jury drew in Cooper v. Neil, namely, that the plaintiff was instructed to make time bargains, and that he did, in fact, make such bargains. A real time bargain is, I suspect, a very rare occurrence. Grizewood v. Blane affords an instance of one, and Cooper v. Neil, as understood by the jury, afforded another. But what are called time bargains are, in fact, the result of two distinct and perfectly legal bargains, namely, first, a bargain to buy or sell, and, secondly, a subsequent bargain that the first shall not be carried out; and it is only when the first bargain is entered into upon the understanding that it is not to be carried out that a time bargain, in the sense of an unenforceable bargain, is entered into. Such bargains are very rare, and this is what I understand the witnesses to mean when they say that there are no such things as time bargains on the Stock Exchange. “For the above reasons I hold that the plaintiff is enti- tled to indemnity, notwithstanding the gambling nature of the transactions between himself and the defendants. The inability of the defendant to continue his speculations gave the plaintiff a right to close all the defendants' accounts. That appears from Lacey v. Hill, which was a celebrated case in chancery, and is reported in 22 W. R. 586, L. R. 18 Eq. 182, and L. R. 8 Ch. 441, 22 W. R. Dig. 198. Whether THE STOCK EXCHANGE. 429 to pay they were closed by the plaintiff or by the Stock Exchange Contracts Committee is, I think, immaterial, it not being proved that Differences. the defendant was in any way prejudiced by what was done. Consequently, I give judgment for the plaintiff for the full amount claimed, with costs." This judgment was affirmed by Lords Justices Bramwell, Brett, and Cotton, in the Court of Appeal, 7th December, 1878, Brett, L. J., observing in the course of his judgment, Cooper v. Neil, "when before us, was argued most elaborately, and I think that we all saw, early in the case, that it would be necessary to send it back for a new trial. The jury had found that the plaintiff was instructed to buy and sell according to the rules of the Stock Exchange, but so as to make time bargains and not bonâ fide purchase of shares, and that the plaintiff had acted in accordance with those instructions. "It is obvious that the meaning of a 'time bargain' in that case was not merely a contract for the future delivery of stock to or by the plaintiff, as the case might require, but what the jury meant to find was that the plaintiff had been instructed to make bargains which would only make him liable to pay the person with whom he made the bargain the difference in price of the stock, according to the rise or fall of the market, at a future day, and that he had made such bargains. The action was brought, not only for commission, but also for an indemnity against the liability the plaintiff had incurred in respect of those bargains; and if the plaintiff had made only such bargains as I have said with the jobber, he was not under any such liability; for we were all (at all events I was) of opinion that the contracts he made with the jobber were contracts on which the jobber could not have sued him, as they were within the Gaming and Wagering Act; and that, therefore, as the jobber could not sue him, he could not sue the plaintiff over for an indemnity, for he did not want it. 1 1 ' f $ 1 # } } Contracts to pay Differences. 430 (C THE STOCK EXCHANGE. 'We thought that the case should go back for a new trial, and we all endeavoured, therefore, to express ourselves so as to be a guide to the learned judge who tried the case over again, and who would have to consider whether it would be true to say that the plaintiff was instructed to make time bargains in the sense of the phrase in which it was there used, and to consider the questions which would arise if the plaintiff were instructed and undertook only to make such bargains, but in fact made others, or if he was instructed not to make time bargains, but in fact made them. That was why, in that case, we stated our views that, if the facts were found as Mr. Justice Lindley has in this case found them, the defendant would be liable. "In Cooper v. Neil another supposititious case was put before us, and I, at all events, and I think my learned brothers, dealt with it. It was suggested that the plaintiff (who was the broker) and the defendant came to an express agreement that the broker should enter into transactions on the Stock Exchange which might end in a gain or a loss, but that, whatever happened to the broker on the Stock Exchange, he (the broker) would only obtain the difference from, or pay the difference to, the defendant. So that an express agreement was suggested between the broker and the principal to this effect: 'I will go on the Stock Exchange and make bargains. I know they will be real bargains, for I can only make such bargains; on them I shall be liable, though acting as your broker, for I am the principal with regard to the person with whom I deal, and I shall be obliged to pay in the end to him the real loss, or, on the other hand, entitled to receive from him the real gain, but this I will make the bargain with you, that what- ever happens to me I will never make you (though in the end I may be obliged to take the shares) liable for more than the difference in the price-that is, that my bargains with you shall be a gamble on the mere rise or fall in price, though I must, in order to do that, deal on the { THE STOCK EXCHANGE. 431 to pay Stock Exchange in another way.' I thought that such Contracts a bargain as that might be within the Gaming and Differences. Wagering Statute, but I went on to say that I saw no evidence of any such bargain in the case; and I say now to the defendant, who wishes us to find such a bargain in the present case, that I see no evidence of it, and therefore I do not retract from anything I said in Cooper v. Neil. I hold by what I said, and I think that Mr. Justice Lindley understood what I said, and has guided his inquiries in this case into the facts upon the lines that we all laid down in Cooper v. Neil, and according to his own views, and has found the facts in this case rightly, and the process of the Stock Exchange rightly, and has applied the law in accordance with what I thought was right when Cooper v. Neil was argued, and in accordance with what I still think right. "I think this case is governed by Cooper v. Neil, and whether we so laid the law down in that case or not, I think it is right law. "As to Grizewood v. Blane, I will say no more than my brother Bramwell has said, that it may be that the findings there upon the evidence were right, though the evidence might be wrong or misunderstood by the jury; but upon those findings the court applied the law rightly." The following are selections from the the Rules Rules and Rules and Regulations. Regulations of the Stock Exchange in force at the present time, 1881- of the The business of the Committee shall be divided into two Business classes, viz., routine, and special; the first, to comprehend Committee. the reading of minutes for the purpose of confirmation, or otherwise, the admission of members and clerks, fixing settling days, &c.; the second, the investigation of claims and other matters relating to the interests of the members or of the public. The Committee may expel or suspend any member of Expulsion or Suspension of the Stock Exchange who may violate any of the rules or Members. 1 + 1 1 432 THE STOCK EXCHANGE. Expulsion or regulations, or fail to comply with any of the Committee's Suspension of Members. decisions, or who may be guilty of dishonourable or dis- graceful conduct. The resolution for expulsion or suspen- sion must be carried by a majority of three-fourths in a Committee specially summoned for the purpose, and con- sisting of not less than twelve members, and must be confirmed by a majority of the Committee, at a subsequent meeting, specially summoned. Sureties for New Members. Foreigners. Disqualifica- tion. The Committee may, in their absolute discretion, and in such manner as they may think fit, notify, or cause to be notified to the public, that any member has been expelled, or has become a defaulter, or has been suspended, or has ceased to be a member, and the name of such member. No action or other proceeding shall under any circumstances be maintainable by the person referred to in such notifica- tion against any person publishing or circulating the same, and this rule shall operate as leave to any person to publish and circulate such notification and be pleadable accordingly. Every applicant for admission, previously to being balloted for, must be recommended by three members of not less than four years' standing, who have fulfilled all their engagements, and who are not indemnified. Each recommender must engage to pay five hundred pounds to the creditors of the applicant, in case the latter shall be declared a defaulter within four years from the date of his admission. If the applicant has been a clerk in the Stock Exchange for four years previously to his application, two recom- menders only shall be required, who must each enter into a similar engagement for three hundred pounds. No member shall be surety for more than three new members at the same time. No foreigner shall be admissible, unless he shall have been naturalized for a period of two years. No applicant is admissible, if he be engaged as principal or clerk in any business other than that of the Stock 1 { THE STOCK EXCHANGE. 433 tion. Exchange, or if his wife be engaged in business, or if he be Disqualifica- a member of, or subscriber to, any other institution where dealings in stocks or shares are carried on; and if subse- quently to his admission he shall render himself subject to either of those objections, he shall thereby cease to be a member. Sureties and The Chairman of the Committee, in addition to any Questions to other questions that may appear to be necessary, shall, to Applicants. each of the recommenders of an applicant, put the following:- Has the applicant ever been a bankrupt, or has he ever compounded with his creditors? and, if so, within what time, and what amount of dividend has been paid? Would you take his cheque for three thousand pounds in the ordinary way of business? Do you consider he may be safely dealt with in securities for the account? The chairman shall require every new applicant to acknowledge his signature to the form of application, and shall ask such questions as may be deemed necessary. The Committee will not allow members or their Brokers and authorised clerks to act in the double capacity of brokers Dealers. Jobbers or and dealers; nor will they sanction partnerships between brokers and dealers. No member shall attempt to enforce by law a claim Legal arising out of Stock Exchange transactions against a Proceedings. member or defaulter, or against the principal of a member or defaulter, without the consent of such member, of the creditors of the defaulter, or of the Committee. The Committee have power to intervene in cases where the principal of a member shall attempt to enforce by law a claim which is not in accordance with the rules, regu- lations, and usages of the Stock Exchange, and will deal with such cases as the circumstances may require. If a non-member shall make any complaint against a BB } : Non-members. 434 THE STOCK EXCHANGE. Complaints by member, the Committee shall in the first place consider whether the complaint is fitting for their adjudication, and in the event of the Committee deciding in the affirmative, the non-member shall, previously to the case being heard by the Committee, sign a consent in writing as follows: "To the Committee for General Purposes of the Stock Exchange, London ; "In the matter of a complaint between "GENTLEMEN,- and Also "I do hereby consent to refer this matter to you, and I undertake to be bound by the said reference, and to abide by and forthwith to carry into effect your award, resolution, or decision in this matter, in the same manner as if I were a member of the Stock Exchange; and I further undertake not to institute, prosecute, or cause, or procure to be instituted, or prosecuted, or take any part in proceedings, either civil or criminal, in respect of the case submitted. And I consent that the Committee may proceed in accordance with their ordinary rules of pro- cedure, and I undertake to be bound by the same. that the Committee may proceed ex parte after notice, and that it shall be no objection that the members of the Committee present vary during the inquiry, or that any of them may not have heard the whole of the evidence, and any award or resolution of the Committee, signed by the chairman for the time being, shall be conclusive that the same was duly made or passed, and that the reference was · conducted in accordance with the practice of the Committee. And I hereby consent that such award or resolution shall be deemed to be an award under the Common Law Procedure Act, 1854, and be enforceable accordingly, and that the same may be made a rule of the Queen's Bench, or of either of the other Common Law Divisions of the High Court of Justice. “I remain, "Gentlemen, << 33 > } THE STOCK EXCHANGE. 435 The Committee will not recognise any dealing in letters Letters of of allotment, either of loans or shares in new companies. Allotment. A member applying for shares or stock of loans or Allottees. public companies, and neglecting to pay the deposit on the same, shall be considered to have violated a contract, and shall be compelled to fulfil his engagement. The Committee will not recognise new bonds, stock, or Issues by Foreign other securities, issued by any foreign government that has Governments. violated the conditions of any previous public loan raised in this country, unless it shall appear to the Committee that a settlement of existing claims has been assented to by the general body of bondholders. Companies issuing such securities will be liable to be excluded from the official list. Enemy. The Committee will not, after the restoration of peace, Loans by recognise, or allow the quotation of any loan raised by a power whilst at war with Great Britain. Dividends. No member shall enter into bargains in prospective Bargains in dividends on shares or stock of railway or other companies. All bargains, when no time is specified, shall be con- Bargains when sidered as made for the existing account. no Time fixed. Accounts. The Committee will not recognise any bargain for a Future future account, if it shall have been effected more than eight days previously to the close of the pending account. respect of An offer to buy or sell a sum of stock, at a price named, Offers in is binding as to any part thereof; and an offer to buy or Stock. sell stock, when no amount is named, is binding to the amount of £1,000 stock. Transfers. Purchasers of Bank or East India Company's stock may Number of require, at the seller's expense, as many transfers as there are even thousand pounds stock in the sum bargained for. The Committee will not recognize any bargain in shares Limit of Period for Bargains. or stock effected for a period beyond the ensuing two accounts. An offer to buy or sell an amount of shares or stock at a price named, is binding as to any part thereof, that may be + 2 717 Offers in respect of Shares or Stock deliverable by Deed of Transfer. Seller Respon- sible for Documents. 436 THE STOCK EXCHANGE. a marketable quantity; and an offer to buy or sell shares or stock, when no amount is named, is binding to the amount of ten shares, if in value under £500, or a number not exceeding in value that sum, or to the amount of £1,000 stock. The seller of shares or stock is responsible for the Regularity of genuineness and regularity of all documents delivered, and for such dividends as may be received, until reasonable time has been allowed to the transferee to execute and duly lodge such documents for verification and registration. When an official certificate of registration of such shares or stock has been issued, the Committee will not (unless bad faith is alleged against the seller) take cognizance of any subsequent dispute as to title, until the legal issue has been decided, the reasonable expenses of which legal pro- ceedings shall be borne by the seller. Blank Transfers. Certificates to accompany Transfer. The Committee will not (except under special circum- stances) interfere in any question arising from the delivery of shares, stock, bonds, or debentures by transfer in blank. The buyer of shares or stock may refuse to pay for a transfer deed unaccompanied by coupons or certificates, unless it be officially certified thereon that the coupons or certificates are at the office of the company. But if the transfer deed be perfect in all other respects, the shares or stock must not be bought in until reasonable time has been allowed to the seller to obtain the verification required. If the seller have a larger coupon than the amount of stock conveyed, or only one coupon representing stock conveyed by two or more transfer deeds, the coupon may be deposited with the secretary of the share and loan department of the Stock Exchange, who shall forward it to the office of the company, and certify to that effect on the transfer deeds, which shall then be a valid delivery. No person is to look to the managers or Committee of the Stock Exchange, as being liable for the due or accurate performance of those duties, the managers and Committee THE STOCK EXCHANGE. 437 holding themselves, and being held, entirely irresponsible in respect of the execution, or of any mis-execution, or non-execution, of the duties in question. Shares. The buyer is entitled to new shares or stock issued in Right to New right of old, provided that, within reasonable time, he specially claim the same, in writing, from the seller. Claims should be entered as bargains, and as such be checked in the usual manner. Renunciation. When practicable, claims are required to be settled by Letters of letters of renunciation, but if not practicable, and there be sufficient time for registration, the seller may, after due notice, require the buyer to complete the bargain in old shares or stock. for New If the new shares or stock cannot be obtained by letters Fixing Prices of renunciation, or by the transfer of the old, the Committee Shares. will fix a price at which the same shall be temporarily settled, and which amount may be deducted by the buyer from the purchase-money of the old shares or stock, until the special settlement. Securities. The buyer of bonds or other securities subject to Drawn periodical drawing, shall not be entitled to claim delivery thereof previous to the day for which they were bought. Bargains must be settled in securities which have not been officially notified as drawn. In case of the erroneous delivery of any drawn securities, the buyer (on receipt of undrawn securities, and on allowance being made for any drawing or dividend of which he may have lost the benefit) shall deliver such securities back to the person who held them at the time of the official notification of the drawing, or shall pay to him any proceeds received from such drawing, provided the said securities or the proceeds thereof be traced to, and remain in the possession, and under the control, of such buyer, all intermediate members being released from liability. No claim in respect of the erroneous delivery of drawn securities will be entertained by the Committee, unless made within nine calendar months. 4 Damaged Bonds, &c. Railway Bonds. Application for Settlings in Loans. Documents required. Quotations of New Loans. 438 THE STOCK EXCHANGE. Every bond or scrip share is to be considered perfect, unless it be much torn or damaged, or a material part of the wording be obliterated. The Committee will not take cognizance of any complaint in respect of bonds or shares alleged to have been delivered in a damaged condition, or deficient in, or with irregular, coupons, should such bonds or shares be detained by the buyer more than eight days after the delivery, unless it can be proved that the member passing them was aware of their being imperfect. Bonds and debentures of railways in Great Britain, Ireland, and the East Indies, shall be dealt in so that the accrued interest, up to the day for which the bargain was. done, be paid by the buyer; but bargains in bonds and debentures of colonial and foreign railways shall include the accrued interest in the price. The application for a special settling-day for bargains in foreign, colonial, or other loans, must be laid before the secretary of the share and loan department, who shall give three clear days' public notice previously to its being considered by the Committee. The application must be accompanied by the prospectus, by notarial copies or translations, or other satisfactory evi- dence of the powers under which the loan is contracted, and by a certificate verified by the statutory declaration of the contractors or agents of the amount allotted to the public, and that the scrip or bonds are ready for delivery. The Committee will order the quotation of the scrip and bonds of a foreign, colonial, or other loan, the dividends of which are payable in this country, provided such loan has been publicly negotiated by tender, contract, or otherwise, and provided the bonds specify the amount and conditions of the loan, the powers under which it has been contracted, and the numbers and denominations of the bonds issued, and bear the autographic signature of the contractor or properly authorized agent. The secretary to the share and loan department shall THE STOCK EXCHANGE. 439 give one week's notice to the Stock Exchange of any Applications for Settlings in application for a special settling-day for transactions in the New Shares. shares of a new company, previously to such application. being submitted to the Committee, and shall require the production of the following documents, viz. :- The prospectus, the Act of Parliament, the articles of association, or a certificate that the company is constituted upon the cost-book system, under the Stannary Laws. The original applications for shares, the allotment book, signed by the chairman and secretary to the company, and a certificate verified by the statutory declaration of the chairman and the secretary, stating the number of shares applied for and unconditionally allotted to the public, the amount of deposits paid thereon, and that such deposits are absolutely free from any lien. The bankers' pass book, and a certificate from the bankers, stating the amount of deposits received. New Shares. The Committee will order the quotation of a new Quotations of company in the official list, provided that the company is of bonâ fide character, and of sufficient magnitude and importance; that the above requirements have been complied with, and that the prospectus has been publicly advertised, and agrees substantially with the act of Parliament, or the articles of association, and, in the case of limited companies, contains the memorandum of association; that it provides for the issue of not less than one half of the nominal capital, and for the payment of ten per cent upon the amount subscribed, and sets forth the arrangements for raising the capital, whether by shares fully or partly paid up, with the amounts of each respectively, and also states the amount paid, or to be paid, in money or otherwise, to concessionaires, owners of property, or others on the formation of the company, or to contractors for works to be executed, and the number of shares, if any, proposed to be conditionally allotted; That two-thirds of the whole nominal capital proposed 1 1 1 New Shares. 440 THE STOCK EXCHANGE. Quotations of to be issued have been applied for and unconditionally allotted to the public (shares reserved or granted in lieu of money payments to concessionaires, owners of property, or others, not being considered to form part of such public allotment), that the articles of association restrain the directors from employing the funds of the company in the purchase of its own shares, and that a member of the Stock Exchange is authorised by the company to give full information as to the formation of the undertaking, and be able to furnish the Committee with all particulars they may require. Of Foreign Shares. Issue of New Shares within Twelve Months. Dealings before Allotment. Formation of Company. In cases where fully paid shares have been granted in lieu of money payments, an official certificate will be required that the contract providing for the issue of such shares has been filed with the registrar of joint stock companies, as prescribed by the 25th section of the Companies' Amendment Act, 1867. Foreign companies partly subscribed for and allotted in this country, shall not, unless under special circumstances, be allowed a quotation in the official list until they have been officially quoted in the country to which they belong. A company issuing, or promising to issue, new shares within twelve months after the first settling day appointed by the Committee, unless under special circumstances, shall be liable to exclusion from the official list.* >> *The power, as observed by Melsheimer and Laurence, p. 116, thus reserved by the Committee of refusing a settlement and rendering void all bargains previously made, affords a remedy against the frauds and dishonest practices to which the custom of dealing in shares before allotment almost inevitably leads. These dealings commence as soon as a new loan or company is made known to the public, and the sort of transactions to which they give rise may be best described in the language of the Report of the recent (31st July, 1878,) Commission. "Under the Companies Acts, 1862 and 1867, it is competent to any seven persons to form a company, fix the amount of its proposed capital, and agree together as to the objects or purposes of the new association. This done, a prospectus is issued to the public, who are invited to send in letters of application for shares, accompanied by a deposit of money. Within a limited time, varying perhaps from a few hours to many weeks, the list of applications is closed, and the promoters of the new company proceed to allot the shares among the applicants in such numbers and proportions as they please. Some- times it is declared in the prospectus that a portion of the shares will be THE STOCK EXCHANGE. 44I Brokers. The Committee particularly caution brokers against Caution to giving the sanction of their names. to the bringing out of any company without due inquiry as to the bona fides of its objects, the character of its promoters, directors, reserved for particular purposes and not allotted. Sometimes they are so Formation of reserved and not allotted, without notice in the prospectus of any such Company. intention. "In such a system it is obvious that the problem for the promoters of a new undertaking is, how to get the whole or a sufficient number of shares applied for by the public to start the company. 'It is here that the operations on the Stock Exchange come into play, and in a manner the most simple and the most effective. "It must be remembered that an investor-one of the general public-has, Prospectus. in ninety-nine cases out of a hundred, nothing to go by in forming a judgment on the merits of an undertaking but the unproved and unvouched statements and calculations to be found in the prospectus; and these would often, even in the case of the best and soundest adventures, be quite insufficient to tempt him. Premium. "But what does tempt him is the statement which he reads in the news. Effect of papers, that the shares of the company, not yet allotted, are already being sold Quotation at a in the market (the market being the Stock Exchange) at a premium. This fact conveys to his mind the impression that among men of business-among the keenest critics which the community could supply-the shares are so well thought of, so highly estimated, that they are already worth purchasing at a premium, and, acting on this conviction, he applies for shares and pays the necessary deposit; the shares (perhaps not all that he has applied for) are allotted to him, and his capital is embarked for better or worse in the undertaking. "But the effect of this premium at which the shares (still unallotted) are quoted does not stop here; the premium well established, the public are induced to buy shares in the prospect of a further rise in price, every purchase tends to enhance the price still further, and a daily rise in the premium is the result, until the allotment takes place and the shares begin to be rapidly sold. 'Now the misfortune is that this premium at which the shares are announced by the newspapers to have been sold on the market, is in many cases fictitious, an artificial price being purposely created in order to allure and deceive the public. "And it may be created in this way. Those whose interest it is to get Creation of the shares of the company applied for and taken up, send one, two, or three Premium. brokers into the market, who commence bidding for them at a premium. There is no difficulty in finding sellers, for the shares, when allotted and issued, will be allotted of course at par, and to sell the shares at a premium, being under no obligation to deliver them until after the allotment has taken place, and then to obtain an allotment of them at par, leaves the premium paid by the buyer in the pocket of the seller. "In this manner two large classes of persons are created whose interest it Applications for is to apply for allotments of shares; first, those who look upon the premium Allotment. as a guarantee that the well-informed think highly of the investment, and seek to invest their money accordingly; and next, those who, without any intention of investment, have sold shares at a premium, and then apply for an allotment at par to enable them to deliver what they have sold. It is worth remarking how wholly artificial this dealing is; the first buyers are buying shares not because they want them, not even because they want to sell them again, but because they want people to believe in the bona fides and the success of the undertaking, and thus to attract applications for allotment; the sellers are selling, not because they want to get rid of shares which they possess, but because they hope and expect to be able to get an allotment of shares, for the purpose of delivering to the buyer, at a price less than the buyer has agreed to pay for them. { Caution to Brokers. Price List. Allotment. "Cornering." 442 THE STOCK EXCHANGE. and concessionaires, and of the other persons connected therewith. Members. disregarding this caution are liable to be dealt with in such manner as the case may require. A list of prices of English and foreign stocks, shares, and other securities, permitted to be quoted, shall be published under the authority of the Committee; and no list shall be published and sold by a member without the sanction of the Committee. ઃઃ "In this way the list of applications for shares is rapidly filled. Then comes the allotment. Sometimes the shares remain for a while at a premium, but in general the desire to sell preponderates, and the premium rapidly drops and vanishes—the artificial object of inducing applications for shares no longer exists, the promoters are sellers instead of buyers, and the innocent allottee, who has embarked in the undertaking on the faith of the good opinion of others, implied, as he thought, in the premium at which the shares were dealt in, finds himself in possession of property which he must either sell at a great loss, or keep at perhaps a greater loss still. "That this mode of traffic on the Stock Exchange in its general outline is what happens in the case of worthless companies has been proved; and a few years ago, so universal had the system become, that to a great extent the same thing happened also in the case of companies of a bona fide character and presumably sound adventures. "In all cases, in order to get the shares taken up by the public, it seems to have become necessary to support the issue,' as it is called; that is, for the promoters to send brokers into the market to purchase their own shares before allotment at a premium. "There is another way in which this system of dealing before allotment operates on the Stock Exchange. The promoters of a new company send into the market and buy at a premium a large quantity of their own shares-a quantity so large, perhaps, relatively to the entire share capital, that when the settling day comes after the allotment, and the sellers have to procure the shares to deliver, they find themselves in a difficulty. For the promoters who, it must be remembered, have the allotment entirely in their own hands, have allotted so many shares to themselves or their friends, or to other persons, with an undertaking that they must keep the shares allotted to them and not sell them, or have kept back so large a quantity of shares and not allotted them at all, that they have practically obtained the entire control of the market, and the dealers who have sold in the expectation of having a free market of the entire share capital to buy in for the purpose of delivery, find themselves, as it is called, 'cornered,' and obliged to pay such prices as the sellers choose to ask to enable them to complete their contracts. "This practice of buying shares or other securities-the buyer having already possessed himself, or in some other manner procured the control of so large a quantity of the thing which the seller has contracted on a future day to deliver, that the seller is 'cornered,' and virtually placed at the mercy of the buyer is not confined to the dealings before allotment in the shares of a new company or loan. But it is obvious that the allotment of the shares of a new company being entirely in the hands of the promoters, gives them, if they choose to purchase their own shares before the allotment, unusual facilities. for carrying out such an operation. Accordingly the rules of the Stock Exchange, as administered by the Committee, provide methods of defeating such combinations. They hear and entertain any objection that any member may make to the settlement being granted; and if it is shown to them that the promoters have, by their dealings, coupled with the allotment, practically obtained the command of the market,. and placed the dealers or sellers in an unfair position, the settlement is refused. 1 } THE STOCK EXCHANGE. 443 Prices. No price of English or foreign stock, shares, or other Quotation of securities, shall be inserted in the official list, unless the bargain shall have been made in the Stock Exchange, between members, at the market price; nor on the authority of one of them, if he refuse, when required by a member of the Committee, to give up the name of the member with whom he has dealt. "If false statements are made to the Committee in order to induce them to grant quotation or settlement, the guilty parties may at law be made Liability for criminally or civilly liable. Thus, in the Eupion Gas case,* the promoters of False statements. the company were convicted on a charge of agreeing together by false pretences to deceive the members of the Committee, and to induce them, contrary to Criminal. the true intent and meaning of the rules, to order a quotation of the shares of the company in the official list, and thereby to induce and persuade divers of the liege subjects who should thereafter buy and sell the shares of the said company, to believe that the said company was duly formed and constituted, and had in all respects complied with the rules, so as to entitle them to have their shares quoted. "The civil liability of promoters under such circumstances at the suit of Civil. any person suffering loss in consequence, would seem to follow directly from the general principle of law, that every man is held responsible for the consequences of a false representation made by him to another upon which a third person acts, and so acting is injured or damnified; provided it appear that such false representation was made with the intent that it should be acted upon by such third person in the manner that occasions the injury or loss, and provided also that the injury so sustained is the immediate and not the remote consequence of the representations so made.† Thus, in the case of Bedford v. Bagshaw,‡ the plaintiff, knowing the rule of the Stock Exchange, and seeing certain shares quoted in the official list, was led to believe that two-thirds of the scrip had been subscribed for, and he had suffered loss by buying some of the shares in the market in that belief. He was held entitled to recover the amount of his loss against one of the directors who had procured the quotation by knowingly misstating to the Committee the amount of scrip subscribed for. The director was considered to have acted fraudulently, and to have made representations to the Committee with a view to induce persons to believe in the existence of a certain state of things; and it was held by Pollock, C. B., that all persons buying shares on the Stock Exchange must be considered as persons to whom it was contemplated that the representation would be made, and that therefore the plaintiff had a good cause of action. This judgment was thoroughly approved of by Page Wood, V.-C., in a subsequent case, § but was afterwards in the House of Lords characterised by Lord Chelmsford]] as an extraordinary decision. He pointed out that no representation had been made which reached the eyes or ears of the plaintiff, and that it was his knowledge of the rules alone which led him to assume that a representation had been made, and to appropriate it to himself, and, therefore, it could not be taken to be made to anyone who was ignorant of those rules. This certainly qualifies the judgment of Pollock, C.B., very materially, but it is submitted that it does not touch the question of the right of action by a person who is proved to have known that the representation was made, and to have acted directly on the faith of it. **" * R. v. Aspinall, 1 Q. B. D 730; 2 Q. B. D 48. † Notes to Pasley v. Freeman, 2 Sm. L. C. 64. 14 H. & N. 538. § Barry v. Crosskey, 2 J. & H. 22. Peek. Gurney L. R., 6 H. L. 397. **See also Seymour v. Bagshaw, 18 C. B. 903. • 1 Stocks, &c., ex Dividend or ex Interest. Defaulters, &c. Private Failures. 444 THE STOCK EXCHANGE. All dealings in English stock (except bank stock), and in India four and five per cents, for any day subsequent to the striking of the balances of such stocks for dividend, shall be ex dividend, and quoted accordingly. Bargains in transferable shares or stock shall be quoted ex interest from the beginning of the account in which the interest may become payable; and ex dividend from the beginning of the account following that in which the dividend may have been declared, provided the dividend be made payable to the holders then registered; but in case of a subsequent shutting of a company's books for payment of the dividend, then, from the beginning of the account following that in which such shutting occurs. Bargains in securities to bearer shall be quoted ex dividend on the day when the dividend is payable. Shares in foreign railways shall, when practicable, be quoted ex dividend, or ex interest, at a period in accordance with the practice of foreign bourses. A member unable to fulfil his engagements shall be publicly declared a defaulter by direction of the chairman, deputy-chairman, or any two members of the Committee. A member declared a defaulter in the Stock Exchange, or a member who may become bankrupt or insolvent, although he may not be at the same time a defaulter in the Stock Exchange, ceases to be a member. When a member shall give private intimation to his creditors of his inability to fulfil his engagements, the creditors shall not make any compromise with such defaulter, but shall immediately communicate with the · chairman, deputy - chairman, or two members of the Committee, in order that the member in default may be immediately declared; and in case the Committee shall obtain knowledge of any private failure, the name of the defaulter shall be publicly declared. A member conniving at a private failure, by accepting less than the full amount of his debt, shall be liable to THE STOCK EXCHANGE, 445 Failures. refund any money or securities received from such defaulter, Private provided he shall be publicly declared within two years from the time of such compromise, the property so refunded being applied to liquidate the claims of the subsequent public creditors. Any arrangement for settlement of claims, in lieu of bonâ fide money payment, on the day when such claims become due, shall be considered as a compromise, subject to the provisions of this rule. The Committee will not admit or recognise any payment Claims. or claim on a defaulter's account that does not arise from a Stock Exchange transaction. A defaulter shall not be eligible for re-admission, who Re-admission. shall not have paid from his own resources, independently of his security money, at least one-third of the balance of any loss that may occur on his transactions, whether on his own account or that of principals; or who, in the event of his debts being less than the amount which his sureties may be called upon to pay, shall not have refunded to the sureties one-third of the amount paid by them. Non-members. Non-members shall be allowed an equal participation Claims of of assets, subject to the same conditions as members, provided their claims be admitted by the creditors, or, in case of dispute, by the Committee; and a person whose claim is so admitted, may be represented at the meeting of creditors by any member whom he may select. No member, being a creditor upon a defaulter's estate, shall sell, assign, or pledge his claim on such estate to a non-member without the concurrence of the Committee; and such assignment shall be immediately communicated to the official assignees. Upon any application for the re-admission of a defaulter, Duties of Sub- a sub-committee, of not more than three members, to be committee. chosen in alphabetical rotation, shall investigate his conduct and accounts; and no further proceedings shall be taken by the Committee with regard to his re-admission, until the report of such sub-committee shall have been } } 446 THE STOCK EXCHANGE. Committee. Duties of Sub- submitted, together with a balance sheet of the defaulter's estate, signed by himself. 1 Classes under which Defaulters Re-admitted. The attention of the sub-committee shall be directed, Ist. To ascertain the amount of the greatest balance of shares or stock open at any time during the account, the current balance at his bankers, as well as the balance of shares or stock open at the time of failure; and whether the transactions were on his own account, or on account of principals, specifying the amount of each respectively. 2nd. To ascertain the total amount of money paid by him; specifying the sums collected in the Stock Exchange, and those received from principals; and the money or other property brought forward by himself. 3rd. To ascertain the conduct of the defaulter preceding and subsequent to his failure; and to inquire of the official assignees whether any matter, prejudicial or otherwise to the defaulter's application, has transpired at any meeting of creditors, or has officially come to their knowledge elsewhere. 4th. To ascertain whether the defaulter has violated rule 157, which is as follows:-"A member who passes or retains a ticket for shares or stock, whereby loss is incurred or increased, and who shall be declared a defaulter in that account, shall not be eligible for re-admission for at least one year from the date of such default, provided it be proved to the satisfaction of the Committee that he knew himself to be insolvent at the time of passing or retaining the ticket.” The re-admission of defaulters shall be in two distinct classes :- The first class to be for cases of failure arising from the default of principals, or from other circumstances, where no bad faith, nor breach of the regulations of the house has been practised; where the operations ¿ THE STOCK EXCHANGE. 447 have been in reasonable proportion to the defaulter's means or resources; and where his general conduct has been irreproachable. The second class, for cases marked by indiscretion, and by the absence of reasonable caution. Two or more members shall be appointed annually Official Assignees. by the Committee, to act as official assignees, whose duty it shall be to obtain from a defaulter his original books of account, and a statement of the sums owing to and by him, to attend meetings of creditors, to summon the defaulter before such meetings; to enter into a strict examination of every account; to investigate any bargains suspected to have been effected at unfair prices; and to manage the estate in conformity with the rules, regulations, and usages of the Stock Exchange. Each official assignee shall find security amounting to £1,000 from two or more members of the Stock Exchange. In the event of any default or misappropriation by either assignee of funds or property entrusted to his care, or of any other act of dishonesty on his part, each of his sureties shall pay, under direction of the Committee, such sum as he shall have guaranteed. The assignees shall collect and pay the assets to the credit of their joint account at a banker's, and shall distribute the same as soon as possible. On the first of March, in each year, the official assignees shall lay before the Committee a statement of all dividends paid during the last year on each defaulter's estate. Every defaulter's estate shall be registered in a book, to be kept by the official assignees. The scale of remuneration to the official assignees shall be as follows:- On the first £1,000 collected...4 per cent. from 1,000 to £5,000...I per cent. above £5,000.... 1 per cent. But they shall not be entitled to commission on the Remuneration. 1 ! { : 448 THE STOCK EXCHANGE. Remuneration. re-distribution of sums received from another defaulter's estate, nor upon any funds or other property arising out Rates of Brokerage. of stock delivered to a defaulter, but not duly paid for by him. We may add, that with reference to rates of brokerage, there is no scale fixed or recognised by the Committee of the Stock Exchange, but the following are the charges usually made for commission by stock brokers, though with large amounts the commission is often reduced. In the purchase and sale of securities during the account, one commission is usually charged :- British and foreign funds, per £100 stock...………. Exchequer bills, )) Colonial Government and railway bonds, per cent Shares of £I £ s. d 0 2 6 OIO O 5 0 per share o o 3 ") 5 ..... 5 to 10 IO to 25 25 to 50 "" "" O IO "" OI 6 " 0 2 O 0 5 0 { Stock Exchange Holidays. The Open Stock Exchange £50 and above per cent O IO O Where stock is under £50 the commission usually charged is 4 per cent. The expenses of stamp duty and recording fees are paid by the purchaser. The Stock Exchange holidays are:-1st January, Good Friday, Easter Monday, 1st May, Whit Monday, First Monday in August, 1st November, Christmas Day, 26th December, the Derby Day, and any other day appointed by the Committee for General Purposes on their giving three days' notice. If the 1st January, 1st May, 1st November, or 26th December falls on a Sunday, then the following day is observed. Besides the Stock Exchange, there is "The Open Stock Exchange Company," which has its rooms in Palmerston Company. Buildings, Old Broad Street. These rooms are connected : } THE STOCK EXCHANGE. Stock 449 by wire with the Stock Exchange, and have a self- The Open registering telegraphic receiver, which registers the different Exchange prices of securities as quoted at the moment on 'Change. Company. The Company in reality acts in the capacity of jobber, the public being their own brokers. The telegraphic register can be examined by anyone, a check being thus openly afforded on the prices offered by the Company. The following are its rules:- 1.-All bargains shall be effected for settlement on the Account days as fixed by the London Stock Exchange, unless special arrangement be made to the contrary. 2. The prices at which bargains shall be made are those quoted by the Exchange Telegraph Company, or such others as may be agreed upon. 3.-No Brokerage or Commission shall be charged by the Company. 4.—A margin of from two to five per cent on the nominal value of the stock proposed to be dealt in shall be deposited with the Company, either in money or securities. 5.-The Company shall have the right of closing any bargain for purchase or sale into which it may have entered at the market price of the moment, should the margin deposited with it run off. 6. No customer shall be liable for more than the amount of the margin deposited. 7.-The Company shall at all times have the right to refuse to open an account. 8.-Certificates for stock or scrip stock to be delivered on the Account day and the full purchase money of Stock to be paid for shall be deposited with the Company on the first day of the account. 9.--Differences on closed accounts and balances of margins deposited shall be paid on demand. 10. --All bargains shall be subject to the Rules and Regulations of the London Stock Exchange. There is also the "Stock and Share Auction Company Stock and Limited," recently formed, which has auction sales once or Share Auction twice a week, and recommends itself as the best medium Company Limited. for disposal of all stocks and shares not readily marketable, or that may be difficult to dispose of by private treaty. The following table shows the yield per cent on Stock or Shares at the various purchase prices indicated in the first Investors. column of each page :— Table for CC 450 THE STOCK EXCHANGE. Pur- RATE PER CENT. chase Price. I cent 2 cent 3 cent 4 cent 5 cent 6 TABLE FOR cent 7 cent 8 cent 9 cent 10 P | | YIELD PER CENT. 5... 20 IO... ΙΟ 40 20 60 80 ΙΟΟ 120 140 160 180 200 30 40 50 60 70 80 90 100 15... 6/13/4 13/6/8 20 26/13/4 33/6/8 40 46/13/4 53/6/8 60 66/ 20... 5 IO 15 20 25 30 35 40 45 50 22... 4/10/11 24... 4/3/4 9/1/9 8/6/8 13/12/8 18/3/7 22/14/6 27/5/5 12/10/0 16/13/4 | 20/16/8 25 26... 3/16/11 28... 3/11/5 7/13/10 11/10/9 15/7/8 7/2/10 10/14/3 30... 3/6/8 6/13/4 10 14/5/8 13/6/8 16/13/4 19/4/7 23/1/6 17/17/1 21/8/6 31/16/4 36/7/4 40/18/3 45/ 29/3/4 33/6/8 37/10/0 41 26/18/5 30/15/4 34/12/3 38/ 24/19/11 28/11/4 32/2/9 35/ 20 23/6/8 26/13/4 30 33/ 32.. 6/5/0 3/2/6 9/7/6 34... 2/18/10 5/17/8 8/16/6 36... 2/15/7 5/11/2 8/6/9 38... 2/12/8 5/5/4 40... 2/10 5 I /10/0 42... 2/7/7 4/15/2 7/2/10 44... 2/5/6 4/11/0 6/16/5 I 46... 2/3/6 6/10/6 12/10/0 | | 28/2/6 15/12/6 18/15/0 21/17/6 25 11/15/4 11/15/4 14/14/2 14/14/2 17/13/0 7/13/0 20/11/10| 23/10/S | 26/9/6 II/2/4 13/17/10 16/13/6 | 19/9/1 22/4/8 25/0/3 27 7/18/0 10/10/7 13/3/4 15/16/0 18/8/6 21/1/4 23/14/0 26 10 17/10/0 12/10/C 15 22/10/0 25 10/0 20 9/10/5 11/17/11 14/5/8 16/13/3 19/0/10 21/8/5 | 9/1/11 11/7/4 13/12/10 15/18/3 18/3/9 8/14/0 10/17/5 13/0/11 31/ 29/ 23 20/9/2 22 48... 2/1/8 4/3/4 6/5/0 8/6/8 10/8/4 15/4/5 12/10/0 14/11/8 17/7/11 19/11/5 21 16/13/4 18/15/0 20 50... 2 4 6 8 ΙΟ 12 14 16 18 20 52... 1/18/6 3/17/0 5/15/5 7/13/11 | 9/12/4 11/10/10 13/9/3 15/7/8 17/6/2 19 54... 1/17/1 I 3/14/2 5/11/2 7/8/2 9/5/1 11/2/3 12/19/3 14/16/3 16/13/4 18 56... 1/15/9 3/11/6 5/7/2 7/2/11 8/18/8 10/14/3 3 12/10/0 14/6/0 16/1/5 17 58... 1/14/6 3/9/0 5/3/6 6/18/0 8/12/5 10/6/11 12/1/4 13/15/10 15/10/4 17, 60... 1/13/4 3/6/8 5 6/13/4 8/6/8 ΙΟ 11/13/4 13/6/8 15 16 62... 1/12/3 3/4/6 4/16/9 6/9/0 8/1/3 9/13/6 11/5/9 12/18/0 14/10/3 16 64... 1/11/3 3/2/6 4/13/9 6/5/0 7/16/3 9/7/6 10/18/9 12/10/0 14/1/3 15 66... 1/10/4 3/0/7 4/10/11 6/1/2 7/11/6 9/1/10 10/12/1 12/2/5 13/12/9 15 68... 1/9/5 2/18/10 4/8/3 5/17/8 7/7/1 8/16/6 10/5/11 11/15/4 13/4/9 14 70... 1/8/7 2/17/2 4/5/9 5/14/4 7/2/11 8/11/5 IO 11/8/7 12/17/1 14 72... 1/7/9 2/15/6 4/3/4 5/11/1 6/18/11 8/6/8 9/14/6 11/2/3 12/10/0 13 74... 1/7/0 2/14/0 4/1/0 5/8/0 6/15/0 8/2/0 9/9/0 10/16/0 12/3/0 13 76... 1/6/4 2/12/8 3/19/0 5/5/3 6/11/7 7/17/11 9/4/2 10/10/6 11/16/10 13 78... 1/5/8 2/11/4 3/17/0 5/2/7 6/8/2 7/13/10 8/19/5 10/5/1 11/10/9 12 80... 1/5/0 2/10/0 3/15/0 5 61510 7/10/0 8/15/0 10 11/5/0 12 82... 1/4/5 2/8/10 3/13/2 4/17/7 6/2/0 7/6/4 8/10/9 9/15/1 10/19/6 12 84... 1/3/10 2/7/8 3/11/5 4/15/3 5/19/1 7/2/11 8/6/9 9/10/6 10/14/3 I I 86. 133 2/6/6 3/9/9 4/13/0 5/16/3 6/19/6 8/2/9 9/6/0 10/9/3 I I 88... 1/2/9 2/5/6 3/8/3 4/11/0 5/13/8 6/16/5 7/19/1 9/1/10 10/4/7 I I 90... 1/2/3 2/4/6 3/6/8 4/8/11 6/13/5 5/11/2 7/15/7 8/17/10 10/0/1 II 92... 1/1/9 2/3/6 3/5/3 4/7/0 5/8/9 6/10/6 7/12/3 8/14/0 9/15/9 IC 94... 1/1/3 2/2/6 3/3/9 4/5/1 5/6/4 6/7/8 7/8/11 8/10/3 9/11/6 IC 96... 1/0/10 2/1/8 3/2/6 4/31 3/4 5/4/2 6/5/0 /5/10 8'6/8 9/7/6 IC 98... 1/0/5 2/0/10 3/1/3 4/1/8 5/2/1 6/2/6 7/2/11 8/3/4 9/3/9 I 100.. 105... I 2 3 4 5 6 7 8 9 IC 0/19/0 1/18/0 2/17/0 3/16/1 4/15/2 5/14/3 6/13/4 7/12/5 8/11/6 IIO... 0/18/2 1/16/4 2/14/6 3/12/8 4/10/11 5/9/1 6/7/3 7/5/5 8/3/8 115... 0/17/5 2/12/3 1/14/10 3/9/7 4/7/0 5/4/5 6/1/9 6/19/2 7/16/7 I 20... 0/16/8 1/13/4 2/10/0 3/6/8 4/3/4 5 5/16/8 6/13/4 7/10/0 125... 0/16/0 1/12/0 2/8/0 3/4/0 4 4/16/0 5/12/0 6/8/0 7/4/0 130... 0/15/5 1/10/10 2/6/3 3/1/7 3/17/0 4/12/5 5/7/9 6/3/2 6/18/7 135... 0/14/10 1/9/8 2/4/6 2/19/4 3/14/ 4/8/11 5/3/9 5/18/7 6/13/4 140... 0/14/3 1/8/6 2/2/9 2/17/0 3/11/4 4/5/7 4/19/10 5/14/1 6/8/5 145... 0/13/10 1/7/8 2/1/5 2/15/3 3/91 4/2/11 4/16/9 5/10/6 6/4/4 150... 0/13/4 1/6/8 2 2/13/4 3/6/8 4 4/13/4 5/6/8 6 160... 0/12/6 1/5/0 I/I 2/10/0 3/2/6 3/15/0 4/7/6 5 5/12/6 170... 0/11/9 1/3/6 /15/3 2/7/0 2/18/9 3/10/7 4/2/4 4/14/1 5/5/10 180... I/2/2 0/11/1 1/13/3 2/4/4 /15/6 3/6/7 3/17/8 4/8/10 4/19/11 190... 0/10/6 1/1/0 I/11/6 2/2/0 2/12/6 3/3/0 3/13/6 4/4/0 4/14/6 200... 0/10/0 I 1/10/0 2 2/10/0 3 3/10/0 4 4/10/0 225 0/8/11 0/17/9 1/6/8 250.. 1/4/0 0/16/0 0/8/0 1/15/7 1/12/0 2/4/5 2/13/4 3/2/3 2 2/8/0 2/16/0 3/11/1 3/4/0 4 3/12/0 INVESTORS. THE STOCK EXCHANGE. RATE PER CENT. 451 se e. I 11 cent 12 cent 13 cent 14 P cent 15 cent 16 cent 17 cent 18 cent 19 cent 20 cent YIELD PER CENT. 220 IIO 240 120 260 280 300 320 130 140 150 160 340 170 360 380 400 180 190 200 73/6/8 80 55 60 86/13/4 93/6/8 65 100 106/13/4 113/6/8|| 120 126/13/4 133/6/8 70 75 80 85 90 95 100 50/0/1 54/11/0 59/1/11 63/12/10 68/3/9 | 72/14/8 77/5/7 81/16/5 86/7/4 90/18/3 45/16/8 50 42/6/1 39/5/7 • 36/13/4 40 54/3/4 58/6/8 62/10/0 66/13/4 46/3/0 49/19/11 53/16/10 57/13/9 42/17/046/8/5 46/8/5 49/19/10 53/11/3 | 57/2/8 43/6/8 46/13/4 50 70/16/8 75 61/10/8 65/7/7 69/4/6 79/3/4 83/6/8 73/115 76/18/4 60/14/1 64/5/6 67/16/11 71/8/6 53/6/8 56/13/4 60 63/6/8 66/13/4 34/7/6 32/10/0 35 37/10/0 40 37/10/0 40/12/6 43/15/0 46/17/6 50 32/7/2 35/6/0 38/4/10 41/3/8 44/2/6 47/1/4 30/11/5 33/7/0 36/2/7 38/18/241/13/5 44/9/4 59/7/6 62/10/0 55/17/10 58/16/6 52/16/1 55/11/1 52/12/9 28/19/4 31/12/0 34/4/8 36/17/039/10/042/2/4 44/15/4 47/7/6 50 47/10/0 50 27/10/0 30 26/3/8 28/11/3 30/18/11 33/6/6 35/14/4 38/1/11 | 40/9/6 42/17/145/4/9 47/12/4 25/0/2 27/5/8 29/11/0 31/16/6 | 34/2/0 36/7/4 38/12/10 40/18/2 43/3/7 28/5/3 30/8/9 32/12/3 34/15/9 36/19/2 39/2/8 23/18/4 26/1/9 20/7/4 22/4/4 24/1/4 31/5/0 33/6/8 35/8/4 37/10/0 39/11/8 41/13/4 30 32 | | | 34 36 40 26/18/7 28/17/0 30/15/6 32/13/10 34/12/3 36/10/9 38/9/3 25/18/5 27/15/4 29/12/5 31/9/6 | | 53/2/6 56/5/0 50/0/2 52/19/0 47/4/11 50/0/1 42/10/0 45 41/6/2 45/9/1 43/9/8 22/18/4 25 27/1/8 29/3/4 22 24 26 28 38 21/3/1 23/1/7 25/0/1 33/6/7 19/12/10 21/8/6 23/4/3 35/3/8 37/0/9 25 18/19/4 20/13/10 22/8/3 26/15/8 | 28/11/4 | 30/7/1 24/2/9 25/17/3 27/11/8 29/6/2 32/2/10 33/18/7 35/14/4 31/0/8 32/15/2 34/9/8 18/6/8 20 21/13/4 23/6/8 25 26/13/4 28/6/8 30 31/13/4 33/6/8 17/14/9 19/7/0 20/19/3 17/3/9 18/15/0 20/6/3 22/11/6| 24/3/9 25/16/027/8/3 21/17/6 23/8,9 25 29/0/6 30/12/9 32/5/0 26/11/ 28/2/6 29/13/9 31/5/0 16/13/4 18/3/8 19/14/0 16/3/7 17/13/0 19/2/5 21/4/3 22/14/7 24/4/10 25/15/1 | | 20/11/10 22/1/3 23/10/8 25/0/1 27/5/4 28/15/8 30/6/0 26/9/6 27/18/11 29/8/2 15/5/7 15/14/3 17/2/10 18/11/5 16/13/4 18/1/2 20 21/8/7 22/17/2 24/5/10 25/15/5 27/3/0 28/11/5 19/8/11 20/16/8 22/4/6 | 23/12/3 25 26/719 27/15/6 14/17/0 18/18/0 20/5/0 14/9/5 14/2/0 13/15/0 15 13/8/3 13/1/10 14/5/7 15/9/5 16/13/3 17/17/1 16/5/6 17/8/9 15/18/1 17/0/10 12/4/6 13/6/9 14/9/0 15/11/2 15/4/6 16/6/3 17/8/0 15/19/2 17/0/6 | | 16/13/4 16/4/0 17/11/0 15/15/9 17/2/1 18/8/5 19/14/9 15/7/10 16/13/4 17/19/019/4/8 16/5/0 17/10/0 18/15/0 14/12/7 15/17/0 17/1/5 18/5/9 12/15/9 13/19/0 | 15/2/3 12/10/0 13/12/8 14/15/5 | 11/19/3 13/1/0 14/2/9 11/14/0 12/15/4 13/16/7 14/17/11 21/12/0 22/19/0 21/1/1 22/7/4 23/13/7 24/19/11 26/6/3 20/10/221/15/10 23/1/5 24/7/1 24/6/0 25/13/0 27 25/12/9 20 21/5/0 22/10/0 23/15/0 25 19/10/2 20/14/6 21/18/11 23/3/4 24/7/9 19/0/11 20/4/8 21/8/6 22/12/4 23/16/2 18/12/0 19/15/3 20/18/6 18/3/6 19/6/3 20/9/0 17/15/7 17/15/7 18/17/9 20 22/1/9 23/5/0 21/11/9 22/14/6 21/2/3 22/4/6 18/9/9 19/11/6 20/13/3 21/15/0 18/1/9 19/3/0 20/4/3 21/5/6 11/9/2 11/4/7 12/5/0 12/10/013/10/10 14/11/8 13/5/5 14/5/9 15/12/6 16/13/4 | 17/14/2 17/14/2 18/15/0 19/15/10 20/16/8 15/6/2 16/6/7 17/7/0 18/7/4 19/7/9 20/8/2 II I 2 13 14 15 16 17 18 19 20 10/9/7 11/8/8 12/7/8 13/6/9 14/5/10 15/4/10 16/3/11 17/2/11 18/1/11 19/1/0 IO 10/18/2 11/16/4 12/14/7 13/12/9 14/10/11 15/9/2 16/7/4 17/5/6 18/3/8 9/11/4 10/8/9 11/6/1 9/3/4 ΙΟ 10/16/8 12/3/6 13/0/11 13/18/3 14/15/8 15/13/1 11/13/4 12/10/0 13/6/8 | 16/10/5 17/7/10 14/3/4 15 15/16/8 16/13/4 8/16/09/12/0 10/8/0 11/4/0 I2 12/16/0 13/12/0 14/8/0 15/4/0 16 8/9/4 9/4/9 10/0/1 10/15/6 11/10/11 12/6/3 13/1/8 13/17/1 14/12/5 15/7/9 8/3/0 8/17/10 9/12/7 10/7/5 11/2/3 11/17/1 12/11/10 13/6/8 14/1/6 14/16/3 7/16/11 S/11/2 9/5/6 9/19/9 7/12/08/5/10 S/19/6 9/13/4 10/7/1 10/14/0 11/8/3 11/0/9 12/2/7 12/16/10 13/11/4 14/5/8 11/14/5 12/8/4 13/2/3 13/16/0 7/6/8 8/13/4 9/6/8 IO 10/13/4 11/6/8 I2 12/13/4 13/6/8 6/17/6 7/10/0 8/2/6 8/15/0 6/9/5 7/1/2 7/12/11 8/4/8 9/7/6 8/16/6 ΙΟ 10/12/6 11/5/0 11/17/6 12/10/0 9/8/3 ΤΟ 10/11/9 11/3/6 11/15/3 6/2/1 6/13/2 7/4/4 7/15/5 8/6/7 8/17/8 9/8/10 9/19/11| 10/11/1 11/2/2 5/15/6 6/6/0 6/16/6 7/7/0 7/17/6 8/8/0 8/18/6 9/9/0 19/6 10/10/0 5/10/0 6 6/10/0 7 7/10/0 8/10/0 9 9/10/0 10 4/17/9 5/6/8 5/15/7 6/4/5 6/13/4 7/2/3 7/11/1 8 8/8/11 8/17/9 4/8/0 4/16/0 5/4/0 5/12/0 6 6/8/0 6/16/0 7/4/0 7/12/0 8 PART VIII. BANK BOOK EVIDENCE AND APPROPRIATION OF PAYMENTS. In consequence of the very great inconvenience which Production of as evidence. had been occasioned to bankers, suitors, and the public, by Bank Books the removal of bank books for the purpose of being pro- duced in legal proceedings, an Act, with the view of remedying this, was passed on the 11th August, 1876, the 39 and 40 Vict., c. 48, called “An Act to amend the Law with reference to Bankers' Books Evidence," but from the obscure and slovenly manner in which this Act was drawn, it speedily became inoperative, and was at last wholly repealed by the 42 and 43 Vict., c. II., passed 23rd May, 1879, and entitled “ An Act to amend the Law of Evidence Bankers' with respect to Bankers' Books," the clauses of which are Evidence Act, in the following terms :— Books 1879. as the Bankers' Books Short Title. 1. This Act may be cited as the Evidence Act, 1879. c. 48. 1 2. The Bankers' Books Evidence Act, 1876, shall be Repeal of 39 repealed as from the passing of this Act, but such repeal and 40 Vict., shall not affect anything which has been done or happened before such repeal takes effect. 1 1 ! 3 7 • Mode of proof of entries in Bankers' books. Proof that book is a Banker's book. Verification of copy. Case in which Banker, not compell- able to pro- duce book, &c. Court or judge may order in- spection, &c. 454 BANK BOOK EVIDENCE. 3. Subject to the provisions of this Act, a copy of any entry in a banker's book shall, in all legal proceedings, be received as primâ facie evidence of such entry, and of the matters, transactions, and accounts therein recorded. 4. A copy of an entry in a banker's book shall not be received in evidence under this Act unless it be first proved that the book was at the time of the making of the entry one of the ordinary books of the bank, and that the entry was made in the usual and ordinary course of business, and that the book is in the custody or control of the bank. Such proof may be given by a partner or officer of the bank, and may be given orally or by an affidavit sworn before any commissioner or person authorised to take affidavits. 5. A copy of an entry in a banker's book shall not be received in evidence under this Act, unless it be further proved that the copy has been examined with the original entry and is correct. Such proof shall be given by some person who has examined the copy with the original entry, and may be given either orally or by an affidavit sworn before any commissioner or person authorised to take affidavits. 6. A banker, or officer of a bank, shall not, in any legal proceeding to which the bank is not a party, be compellable to produce any banker's book, the contents of which can be proved under this Act, or to appear as a witness to prove the matters, transactions, and accounts therein recorded, unless by order of a judge made for special cause. 7. On the application of any party to a legal proceeding, a court or judge may order that such party be at liberty to inspect and take copies of any entries in a banker's book for any of the purposes of such proceedings. An order under this section may be made either with or without summoning the bank or any other party, and shall be served on the bank three clear days before the BANK BOOK EVIDENCE. 455 same is to be obeyed, unless the court or judge otherwise directs. 8. The costs of any application to a court or judge Costs. under, or for the purposes of this Act, and the costs of anything done or to be done under an order of a court or judge, made under or for the purposes of this Act, shall be in the discretion of the court or judge, who may order the same or any part thereof to be paid to any party by the bank, where the same have been occasioned by any default or delay on the part of the bank. Any such order against a bank may be enforced as if the bank was a party to the proceeding. of "bank, books." >> 9. In this Act the expressions "bank" and "banker " Interpretation mean any person, persons, partnership, or company carry-banker, ing on the business of bankers, and having duly made a and "bankers' return to the Commissioners of Inland Revenue, and also any savings bank certified under the Acts relating to savings banks, and also any post-office savings bank. The fact of any such bank having duly made a return to the Commissioners of Inland Revenue may be proved in any legal proceeding by production of a copy of its return verified by the affidavit of a partner or officer of the bank, or by the production of a copy of a newspaper purporting to contain a copy of such return published by the Com- missioners of Inland Revenue; the fact that any such savings bank is certified under the Acts relating to savings banks may be proved by an office or examined copy of its certificate; the fact that any such bank is a post-office savings bank may be proved by a certificate purporting to be under the hand of Her Majesty's Postmaster-General or one of the secretaries of the post-office. }} Expressions in this Act relating to "bankers' books include ledgers, day books, cash books, account books› and all other books used in the ordinary business of the bank. 10. In this Act the expression "legal proceeding" 456 BANK BOOK EVIDENCE. Interpretation means any civil or criminal proceeding or inquiry in which of "legal proceeding," evidence is or may be given, and includes an arbitration. court, 'judge." Computation of time. Imperfections of the Act. The expression "the court" means the court, judge, arbitrator, persons or person before whom a legal pro- ceeding is held or taken. The expression "a judge" means, with respect to England, a judge of the High Court of Justice; and, with respect to Scotland, a Lord Ordinary of the Outer House of the Court of Session; and, with respect to Ireland, a judge of the High Court of Justice in Ireland. The judge of a county court may, with respect to any action in such court, exercise the powers of a judge under this Act. II. Sunday, Christmas Day, Good Friday, and any Bank Holiday, shall be excluded from the computation of time under this Act." Though this Act is a considerable improvement upon the former, and is better expressed than the ordinary run of statutes, it is still defective, and has already given rise to contention. The banks, it will have been observed, to which it refers are, besides savings banks and post office savings banks, those which have "duly made a return to the Commissioners of Inland Revenue." The return is, we presume, that of the partners; but as some of the most important banks, such as the Bank of England and the three senior banks of Scotland-the Bank of Scotland, the Royal Bank of Scotland, and the British Linen Company Bank-do not make such a return, it would appear that these banks are excluded from the benefit of the Act. And as seen, it is a return which is required. to be made, leaving it doubtful whether the proof of any return, irrespective of time, would not be sufficient. And in the case of Harding v. Williams, 6th April, 1880, L.R. 14 Ch. Div. 197, 42 L.T. 507, 28 W.R. 615, a question arose upon the construction of clause 3, it being contended that the Bankers' Books Evidence Act of 1876 made 1 1 BANK BOOK EVIDENCE. 457 > entries in bankers' books admissible in evidence, but that Imperfections of the Act. that Act was repealed by the Act of 1879, and their books are no longer admissible. That the entries being inadmissible, copies of the entries are inadmissible. That the Act does not extend the law so that a man can use his own bankers' books as evidence in his own favour, section 3 of the Act of 1879 only referring to cases where the entry is evidence. But Fry, J., before whom the case came, held the point taken as untenable, that the "Bankers' Books Act, 1879, says a copy of any entry in a banker's book shall in all legal proceedings be received as primâ facie evidence of such entry, and of the matters, trans- actions, and accounts therein recorded. It was contended that this applies only to such legal proceedings as to which the original would be admitted. The wording of the clause is plain. I have no right to exclude the plain language of an Act of Parliament. There is, too, in section 10, a definition of what legal proceedings comprise. Besides, the Act requires certain conditions to be performed before the evidence is admitted. Further than this, the Act repeals the Bankers' Books Evidence Act, 1876. This earlier Act showed two objects, one to render entries in bankers' books admissible in evidence, the other to enable copies of those entries to be used as evidence without producing the originals. The preamble to the Act of 1876 recites the necessity for that statute, giving reasons which are equally applicable now; and as the terms of the later Act are wide enough, I hold that the objection fails." decision under In commenting upon this decision, the "Scottish Law Strictures on Magazine" says:-"Copies of entries in the books of a the Act. bank where the defendant kept a banking account were sought to be made evidence against the plaintiff. It was naturally enough objected that, the originals not being evidence against him, it could not have been intended by the Act to make the copies evidence against him. The Act did not make the entry evidence against $ 2 * 1 decision under the Act. 458 BANK BOOK EVIDENCE. Strictures on everybody and of everything; it only made the copy primâ facie evidence of the entry. Mr. Justice Fry held that the copies of the entries relative to the defendant's transactions were evidence against the plaintiff. According to this decision, the matter stands in this way: The entries in the bankers' books themselves are not evidence against the plaintiff, but the copies of these entries are. Mr. Justice Fry said the words we have quoted from the third section are wide enough to make the copies. evidence against anyone.' We should have been inclined. to say that the meaning of this third section was simply this, that, to save the trouble of producing the bankers' books, certified copies of the original entries shall be evidence of the transactions so far, but only so far, as these original entries are, that is to say, evidence of the transactions so far, and only so far, as the parties making the entries, or on whose behalf the entries are made, are concerned. The reason which the learned judge gave for the decision is even more curious than the decision itself. The Act of 1879 'repeals the previous Act of 1876, the preamble of which showed that it had two objects in view to render the entries in bankers' books admissible in evidence, and to enable copies of the entries to be used instead of producing the originals. The reasons mentioned in the preamble of that Act are of equal force now.' These reasons were of equal force before either of these Acts were passed; but would that have been a reason for holding the law to be as an Act of Parliament has made it, supposing the Act had never been passed? At best, it seems to us that the preamble of a repealed Act is nothing. The preamble of a repealed Act explains the object and intent of that Act; but surely it cannot explain the object of a new Act, and one which it has been thought necessary to substitute for it. Nay more; the fact that it has been thought necessary to repeal an Act has some significance in considering the object and } i ? BANK BOOK EVIDENCE. 459 intent of the Act substituted for it. There must have Strictures on decision under been some reason for repealing the first Act. When an the Act. Act is repealed, we cannot think that so far as the statute law and its interpretation are concerned, the reasons stated in its preamble are of equal force now. And when we find not only that in the new Act there is no preamble similar to the preamble in the first Act, but that there is no provision in the sections of the new Act carrying out one of the alleged objects of the first Act, viz., to 'render the entries in bankers' books admissible as evidence,' it is impossible to avoid the reflection that one object intended by the former Act has not been intended by the new Act. Consequently any reference to the preamble of the former Act is misleading. It seems to us probable that the object of repealing the Act of 1876 and substituting for it the Act of 1879 was just this: There was a provision, couched in ambiguous terms, making entries in bankers' books admissible as evidence, which provision might have been read so as to mean that they were to be admissible as evidence against anyone. This was thought to go too far, and more correct provisions were substituted. The Legislature may gain more sense by experience, but Mr. Justice Fry seems determined not to let them. The Legislature may repeal a preamble if they choose, but they are still to be bound by it." Statutes. Of the construction of the modern statutes generally, it Modern was recently, 14th November, 1881, observed by Sheriff Macdonald, in his Court at Perth, that "all the Acts of Parliament passed during the last twenty years had been the cause of greater annoyance and perplexity than every- thing in the Statute Book before that," and it is not an uncommon complaint on the part of the English Bench "that Acts of Parliament are so loosely drawn that it is impossible to fix their exact meaning." Indeed, the chief aim of modern legislation appears to have been to convert the Statute Book into a "Puzzle of errors, a wilderness of doubt, a dark inextricable maze." i * Modern Statutes. } 460 BANK BOOK EVIDENCE. With regard to our own experience, as it will have been observed that a reference to the statute law has been already necessitated by no inconsiderable portion of our work, we can only say that what with the multiplicity of the measures we have had occasion to consult, their conflicting clauses, the re-enactments of abrogated statutes, and amendments and partial rescindments of others, there have been occasioned us in our endeavours to arrive at what the actual law really is, such an amount of labour and expenditure of time as our readers can hardly well conceive, and which, whatever may have been the success attending our efforts, we at least may be allowed to consider as not altogether discreditable to our perseverance, and as perhaps entitling us to a corner in some future record of the worthies who have spent the best part of their lives in the "pursuit of knowledge under difficulties."* CC * Another grievance in connection with the statutes is the delay which occurs in their being made public. Very serious complaints," says the SOLICITORS' JOURNAL, of 7th August, 1880, 'have for many years been made of the delay in printing Acts of Parliament. To take three instances of recent date, we may mention that the Customs and Inland Revenue Act of last session, which materially altered the probate duties, was not obtainable until a considerable time had elapsed after the Royal assent; and that the County Bridges Loans Extension Act, and the Union Assessment Committee (Single Parishes) Act, which are stated in the Parliamentary Record to have received the Royal assent on the 19th of July last, are not yet (August 3rd) obtainable. We have no hesitation in saying that any printer could turn out the work with equal accuracy and within one-fifth part of the time at present occupied, and we think that the profession and the public are entitled to a full explanation of the reasons for the delays complained of. An Act of Parlia- ment, it must be remembered, commences from the date of the Royal assent, 'where no other commencement shall be therein provided.' (see 33 Geo. 3, c. 13, before the passing of which, Acts of Parliament commenced from the first day of the session in which they were passed), and becomes law as soon as the day commences (Tomlinson, Appellant; Bullock, Respondent; L. R., 4 Q., B. D. 230). It is a truism to say that modern statutes frequently bristle with penalties, and in order to avoid some great and manifest injustice' similar to that (see Latless v. Holmes, 4 T. R. 660), to remedy which the Act 33 Geo. 3, c. 13, was passed, it would seem desirable that a statute should be passed declaring that future statutes should not commence until a certain date after their passing. Or we might perhaps fall back upon the humane precedent set (inter alios) by the Act 33, Hen. 8, c. 9 (not yet repealed), 'for maintaining of artillery and debarring of unlawful games.' The 19th section of that statute, 'to the intent that every person may have knowledge of this Act, and avoid the danger and penalties of the same,' enacts that all mayors, sheriffs, &c., shall make open proclamation of this present Act in every market to be holden within their several jurisdictions,' and the 20th section provides that 'the justices of gaol delivery, assizes, and justices of ' 1 BANK BOOK EVIDENCE. 461 With special reference to Bank legislation, if the number Bank Legislation. and variety of legal enactments applicable to a business be evidence of its importance, then there can be little doubt that the profession of a banker should be held in high esteem. And, certainly, when we consider the power at the com- mand of the banking institutions of this country, the vast interests committed to their charge, the peculiarities of their position, and the effects which result from mis- management or a departure from the proper principles of banking, not only upon those directly connected with the Bank, but upon the public at large, the necessity for legislative measures can hardly be well gainsayed even by those most desirous of preserving unimpaired the great principle of freedom of industry.† the peace do cause the same to be proclaimed in their several circuits and sessions before them holden, and that this statute shall begin to take effect concerning the penalties of the same from the feast of St. John Baptist now next coming. It appears that the above has not as yet, December, 1881, mended matters, as renewed complaints have been made of the undue length of time in making public some Acts of the last session relating to railway companies, the blame being attached by the printers to those responsible in the reading department of the Government. The mischief occasioned by a public bank perverted from its proper objects, and mismanaged, "is not," says McCulloch in his treatise on money and banks, "to be estimated by the ruin it entails on its partners, and probably also on its customers. It entails privations on many who might be supposed to be beyond the sphere of its influence. Within the ten years ending with 1842, it was estimated that about £1,500,000 of banking capital was wholly dissipated in Manchester and its immediate vicinity. And as nine-tenths of this enormous loss was occasioned by advances made to manufacturers who had little or no capital of their own, it is not easy to imagine what a ruinous stimulus it must have given to reckless competition, and how very injurious it must have been to parties trading on their own capital." And as to how the necessaries of life may be affected by unprincipled banking administration, it will be only requisite to draw special attention to one instance in the panic of 1857, where, from the accounts of one bank, the Liverpool Borough Bank, it was shown that the sum of £100,000 was advanced to certain Irish speculators to enable them to buy up a commodity of daily consumption to ship to Australia, in order that by its withdrawal from our markets prices might be kept up here. But, as is well known, the system of vicious speculation was not confined to one only of the necessaries of life: and the tax thus imposed upon the community, and the serious loss sustained more particularly by working men and those in the receipt of fixed incomes of moderate amount, will be sufficiently demonstrated by an inspection of the price lists published before and after that panic. Coming to more recent times, and as affecting shareholders, the following is the result of the administration of an unlimited bank by a limited circle of high-handed delinquents. At a meeting of the subscribers to the fund raised for the relief of the shareholders of the City of Glasgow ? 1 រ L Bank Legislation. 462 BANK BOOK EVIDENCE. But still there may be an excess of legislation, and any restrictive measures intended as a protection against mismanagement would require to be very cautiously and circumspectly dealt with. Much discussion has taken place in connection with the constitution of boards of directors. Not disturbing the question as to the "ordinary" directors, it would appear clear that in the case of the acting or managing director, he should be a trained banker, and entirely disconnected with trade. Bank, held at Glasgow in January, 1882, it was mentioned that the number of shareholders who had applied for relief amounted to 948, these representing a capital stock of the bank of £536,685, which, at the market price at the date when the bank stopped payment, showed an asset of £1,234,375. The value of the property surrendered by these shareholders of the bank towards liquidating the liabilities which they had incurred as share- holders, amounted to £3,036,362, showing an aggregate loss to those share- holders of £4,271,738. At present the Committee had 259 shareholders depending for a living on what they got from the fund. The sum payable to them was £13,153 yearly, and the largest grant or annual allowance given to any one shareholder was £150 a year. Some of the parties who were getting that moderate allowance were, before the stoppage of the bank, in possession of thousands a year, some from heritable property, and others from invested money yielding them a certain return. The number of widows who had been put upon the fund in consequence of the death of their husbands, who were shareholders, was very considerable, and provision had also been made in many cases for the children of shareholders who had been left destitute from the deprivation of the means of their parents, and who had nothing else to live upon but the allowance from this fund. The amount given in donations to 566 shareholders was £183,689, and £153,000 had been paid in loans to shareholders who had been completely bereft of means, to enable them to carry on business. These loans were repayable over a series of years, and up to last term £39,023 had been repaid or commuted into donations. During the last year 74 new cases had been brought before the Committee for consideration. And at a final general meeting of the bank in liquidation, subsequently held, it was stated by the Chairman that the liquidation had lasted four years, and had been brought to a close much sooner than was at first anticipated, from 12 to 15 years having been the period which it was generally thought would be required to wind up the bank's affairs. Nearly £6,000,000 had been required to make up the deficit of the bank. If the whole £846,000 of stock held by the public at the date of the liquidation had paid the calls in full, a sum of £700 per share would have sufficed to pay off the whole debt. Taking the surrendering contributories, who held £757,000 of stock, he found that they had contributed only £465 for every £100 of stock they held, while the solvent contributories, holding only £89,000 of stock, had contributed as much as £2,750 per share. That was to say, they had paid their own £700 per share, and 1,050 per share additional to make up for the deficiencies of the surrendering contributories. The total amount of liabilities met, including all expenses of the liquidation, has been £13,644,856, as against £12,404,297, the estimated amount of liabilities at the date of the stoppage. It is to be hoped, too, that the example furnished by this model bank and some other kindred concerns, which have ended in well-merited exposure and effacement, of disparaging and depreciating the sub-officers and their lahours to the personal aggrandisement of one or two of the head officials, is not widely followed. We are not aware whether, to its other misdemeanours, APPROPRIATION OF PAYMENTS. 463 Under the present state of the statute law, too, and Bank Legislation. having regard to Acts with mixed provisions affecting Banks and other undertakings, it would be well if a thorough revision of all the statutes relating to banking were made with the view of one Act being passed applicable to Banks exclusively; forming, in fact, a special code for their regulation and government. APPROPRIATION OF PAYMENTS. On the subject of appropriation of payments, the General Rule. decisions at law and in equity are founded on the same principles, the governing case being that of Clayton, I Merivale 604, where it was ruled that a debtor may make his payment in reduction of any of the debts due from him to his creditor, and that if the debtor should not make this appropriation the creditor may do so, and that at any time before action-Simson v. Ingham, 2 B. & C. 72, 3 D. & Ry. 249; Mills v. Fowkes, 5 Bing., N. C. 455, 7 Scott, 444 S. C. And where neither debtor nor creditor makes the appropriation, the payment will by law be appropriated to the earlier debt. Thus, in an ordinary current account the Bank also added that of petty larceny, by beating down the prices of its various tradesmen, so that little or no legitimate profit could be made by the latter, one of the surest methods to promote and extend fraud and deception, and a practice which was freely indulged in by some of the inferior banks, and large trading firms that have, fortunately, ceased to exist, though not until an incalculable amount of mischief had been done by them; several of the defunct banks, moreover, having been guilty of systematically defrauding clients by overcharges in the interest and commission on their accounts. With better management, and the general spread of the limited liability principle, it is also to be hoped that an improvement will be effected in the position of the real workers in all large concerns, and that a movement may be inaugurated at no distant period for the restriction to the shareholders, particularly in all limited companies, of dividends of not more than from five to ten per cent per annum, the rest of the surplus returns, after duly providing for reserve and annuity or widows' funds, to be divided amongst the entire working staff-those who, in their several degrees, have been instrumental in making the profits of the company. By this means greater stability would be given to industrial undertakings, dividends would be placed on a securer and more permanent basis, and immense benefit would accrue to the community at large by the encouragement that would be given to individual effort, and the formation of proper habits and principles of conduct. The system, indeed, might with great advantage be adopted by small private companies as well as by large joint-stock concerns, the founders of the former deriving a uniform rate of interest for the capital advanced, while the profits would be shared ratably by each person engaged in the business. } 2 ? 1 Surety. } 464 APPROPRIATION OF PAYMENTS. the earlier items will be those to which the earlier payments will be regarded as appropriated. And this rule will be carried into effect even though it is to the prejudice of a surety. Williams and others v. Rawlinson, 11th May, 1825, where John Threlfall having an account with the plaintiffs, bankers in London, and owing them £10,247 9s. Id., the defendant and others then executed to the plaintiffs a bond in the penal sum of £10,000, the recital to the condition of which bond stated that the said John Threlfall had for some time past a banking account with the obligees, that the defendant and others had agreed to join Threlfall in the above bond, and that it had been expressly agreed between the above parties that such bond should not in anywise prejudice or affect a certain bond dated 29th Nov. 1817, which was executed and given by the said John Threlfall and others to the above obligees and their late partner, but that all rights and remedies under or by virtue thereof should remain in full force and effect. No notice was given to defendant by plaintiffs that Threlfall was indebted to them £10,000 at the time the defendant executed his bond. At the close of his account Threlfall was indebted to the plaintiffs more than £10,000, but subsequently to the executing of the defendant's bond he had paid into the plaintiffs' bank more than £5,000. In giving judgment, Best, C.J., said that "the words in the recital of the bond are not very clear, but I cannot collect from them any agreement that money subsequently received should not be applied in discharge of the prior debt. When the money was paid, nothing was said as to the account to which it was to be applied, and if the two accounts were blended, the course of business is to apply the payments to the earlier; that is the principle laid down in Clayton's case, and confirmed in Bodenham v. Purchase, 2 B. & A. 39; but here the accounts must have been blended, for the defendant's principal agreed to such an application of his } APPROPRIATION OF PAYMENTS. 465 payments, his accounts were settled half-yearly, and he Surety. must have seen that the remittances subsequent to the bond had been applied to the £10,000. If so, cadit questio; for, unless by distinct agreement, the surety can have no control over the way in which the principal shall make his payments, and no such agreement appears on the face of the bond. The case of Pidcock v. Bishop, K. B. Hilary term, 1825, 3 B. & C. 605, 5 D. & R. 505, as it has been stated, does not apply to the present, for the whole transaction between the creditor and the debtor was a direct fraud upon the surety, and there is no pretence for imputing fraud to the present plaintiffs. It has been argued that the defendant's undertaking is analagous to an insurance, a transaction in which, according to Lord Mansfield, there must always be uberrima fides; but the same learned person, upon the occasion in which he established that position, referred also to the maxim, aliud est tacere, aliud celare. But there has been nothing like an improper concealment in this cause; it might have been pleaded, if there had; the bond was expressly given for the continuance of an old banking account, and it is well known that such accounts are not carried on till the old balance has been secured." Defendant's rule discharged. 铤 ​Firm. In accordance with the rule of non-appropriation as Change in above, if a banking firm be changed and no specific Banking appropriation made, payments after the change will apply to the earlier items with the old firm. Moneys. But the rule under non-appropriation does not, as will be Trust recollected, apply to trust moneys-volume I., page 395, et seq. and see post, in addenda.* * Quoting a long array of authorities, only some of which we insert, Byles, in the 13th edition of his Treatise on Bills, p. 229, says on the subject of appropriation payments, "The rule of the Roman law, and therefore, in general, of Continental law, is that a payment shall be appropriated, first, according to the intention of the debtor at the time of making it (quotiens quis debitor ex pluribus causis unum debitum solvit, est in arbitrio solventis dicere quod potuis debitum voluerit solutum, et quod dixerit, id erit solutum, D. 46, 3, 1, vide etiam Cod. 8, 43, 1); but if that be unknown, then, secondly, at the election of the creditor (quotiens vero non dicimus ad quod solutum sit, D D L Specific Appropriation 466 APPROPRIATION OF PAYMENTS. Payments specifically appropriated and so accepted, must be strictly followed. Questions, however, sometimes arise as to what is a specific appropriation, the latest case on the point being that of In re Gothenburg Commercial Company Limited, before the Court of Appeal, Jessel, M.R., and Brett and Cotton, L.JJ., 15th January, 1881, 44 L.T. 166, 29 W.R. 358, where a bank in Sweden remitted in arbitrio est accipientis cui potuis debito acceptum ferat. D 46, 3, I., Cod. 8, 43, 1), signified to the debtor at the time of receiving it. (Dam in re agenda (in re praesenti hoc est statim atque solutum est) hoc fiat; ut vel creditori liberum sit non accipere vel debitori non dare, si alio nomine exsolutum quis eorum velit; caeterum postea non permittitur. D. 46, 3, 1, 2, 3). If the intention of neither be known, payment must then be appropriated according to the presumed intention of the debtor, and it will be presumed that he meant to discharge such debts as were most burdensome; as a debt carrying interest, rather than one which carries none; a debt secured by a penalty, rather than one resting on a simple stipulation; a debt on which he may be made a bankrupt, rather than one which will not subject him to such a liability. If all the debts are equal in degree, the payment must then be imputed to them according to their respective priority in the order of time. (D. 46, 3. If all the debts were equal and alike in every respect, the sum paid was applied to a ratable reduction of them all. A ratable appropriation is also sometimes made by the English law. See an example in Favenc v. Bennett, II East, 36. But this presumption is capable of being rebutted by circumstances. Henniker v. Webb, L. R., 4 Q. B. 782; City Discount Co. v. Mc.Lean, L. R., 9 C. B. 693). Such is the rule of the civil law, from which, in some particulars, the common law differs. Wherever, according to the English law, the transactions between the two parties form one general account current, or are treated by them as such, payments are to be imputed to debts in the order But if an of time, and the balance is to be struck at the foot of the account. unappropriated payment be made on account of several distinct insulated debts, which cannot be considered in the light of a running account between the parties, the common law then differs from the civil law, and gives the creditor a right of appropriating it at any time before action as he pleases, provided a prior appropriation have not been communicated to the debtor. An appropria- tion which would have the effect of paying one man's debt with another man's money will not be allowed. Nor can there be an appropriation which would deprive a debtor of a benefit, such as the taxation of costs. an appropriation by the creditor, without the knowledge or consent of the debtor, will not of itself afford sufficient ground for raising against the debtor a new promise to pay. A payment may be imputed to a demand for which the creditor could not recover at law. But where a payment is made by a debtor on account generally, the court will not refer it to a debt barred by the The law will ascribe statute, if it can be attributed to any debt not so barred. And it seems that a payment to a legal debt, rather than to an illegal one. A party receiving money for the use of another from a third person, which is not properly a payment but a set-off, cannot appropriate the money without the knowledge or consent of him for whom it has been received. It has been held that a pay- ment may be appropriated to a disputed debt, if it be really a good debt. There are cases where a payment is appropriated by law to several debts pro- portionally. Thus, where a principal debtor has assigned his effects to a trustee for his creditors, a,creditor who has a guarantee for part of his debt will be forced, even at law, to apply in discharge thereof a ratable part of any payment that he may receive from the trustee. Baidwell v. Lydall, 7 Bing. 489; see Raikes v. Todd, 1 P. & D. 138; 8 Ad. & E. 846, S. C.; Paley v. . --- ནས APPROPRIATION OF PAYMENTS. 467 bills to the above company to put them in funds to meet Specific other bills accepted by them for the bank, part of the Appropriation arrangement being that the company should be at liberty to discount the remitted bills, charging themselves with interest on the proceeds until they were required to meet the acceptances. The company stopped payment, having accepted bills which were afterwards taken up by the bank. At the stoppage the company had received remitted bills, some of which they had discounted, the others being afterwards collected by the liquidator. On a claim by the bank that the bills remitted were specifically appropriated to meet the bills accepted on their behalf, Malins, V.C., had held that the bank were entitled to the amount of the proceeds of all the remitted bills, both those which had been discounted by the company before their stoppage and those which were collected afterwards; but the Court of Appeal reversed part of this decision, and held that Field, 12 Ves., jun. 435. See other instances of ratable appropriation in Favenc v. Bennett, II East, 36; and Perris v. Roberts, I Vernon, 34; 2 Chan. Ca. 83, S. C.; Thompson v. Hudson, L. R., 6 Chan. Ap. 320. And it is further said, with reference to the application of the Statute of Limitations, page 356, "where a debtor owes his creditor some debts from a period longer than six years, and others from a period within six years, and pays a sum without appropriating it to any particular debt, such payment is not a payment on account, to take out of the Statute of Limitations the debts due longer than six years, but the creditor may at any time apply such payments to the debts due longer than six years. Mills v. Fowkes, 5 Bing., N. C. 455; 7 Scott 444, S. C.; Waller v. Lacy, 9 L. J., C. P. 217; I Scott, 186; I M. & Gr. 54, S. C.; Nash v. Hodgson, I Kay, 650; 23 L. J., Chan. 780, S. C.; but see 25 L. J., Chan. 186, 6 De G., M. & S. 474. The following rules as to appropriation of payment have been established in America :-The debtor has the first right to direct the application of any payment he may make. The rule that a debtor may apply payment as he pleases, applies only to voluntary payments, and not those made by process of law. If no appropriation be made by him, it then devolves upon the creditor to make it. Yet the creditor must make such an application as the debtor could not reasonably or justly object to. A debtor or creditor cannot appro- priate a payment in such manner as to affect the relative liability or rights of sureties without their consent. When a debtor makes payments without specifying the application, the creditor cannot apply them to debts not due, if there are other debts which are due. If application be directed by neither, then the law will make the application according to equity.-It has been held that such application by the law shall be made as the debtor may be presumed to have done, in other words as would be most for his interest at the time. The law will make the application first to interest, and then to principal. To the debt which is prior in date. To that debt which is least secured. To make an application of a payment, the person paying must give directions before or at the time of payment. See the authorities in Byles on Bills, 6 American edition, p. 353. J ? } { + រ 468 APPROPRIATION OF PAYMENTS. Specific the bank were not entitled to follow the proceeds of the Appropriation bills, which had been discounted before the stoppage, but were only entitled to the proceeds of those which had been collected afterwards. Jessel, M.R., observing, in the course of his judgment, that there was a line to be drawn on the day of the stoppage, adding, "it seems to me that the money obtained by the discount was the money of the London Company, and remained such. But as regards the bills which had not been used at the time of the stoppage, it appears to me the London Company had no right to use those bills. They could have been turned into money if the London Company could have properly paid the bills accepted on behalf of the Swedish bank after the stoppage. But that could not be done any more than it could be after the winding-up. Their only right, according to my view, is to retain the remitted bills as security for the liability which they had incurred in respect of the acceptances they had given for the benefit of the Swedish bank. And, inasmuch as all those liabilities have been cleared off, it seems to me to follow that the bills now remaining are the property of the Swedish bank, and ought to be delivered to them. The result, therefore, will be, that all moneys received from discounts or otherwise, up to the time of stoppage, belong to the company or to the liquidator, and that all the moneys received in respect of the bills after the stoppage, either before or after the liquidation, belong to the Swedish bank, and a declaration should accordingly be made to that effect." And Cotton, L.J., remarked, "The accounts show that the company in England had been in the habit of carrying the proceeds of the remittances sent by the bank to them for their own purposes; that is to say, whether they discounted them or received them, they carried them into the account, charging themselves with interest for the use of the money which they so obtained; and that was not APPROPRIATION OF PAYMENTS. 469 in any way objected to. That must have proceeded on Specific Appropriation the footing that they in paying interest were at liberty to deal with the proceeds as a fund not set apart and kept for the purpose of paying those acceptances, but as a fund which they might deal with as their own money; whereas the claim of the bank proceeds on the footing that the money remained theirs, on the ground that the discount of these remittances was an improper act, and that the whole of the proceeds still remained their property. In my opinion, therefore, the bank has no right to follow the proceeds of the remittances so dealt with. But then comes the question as to the remittances which remained in specie at the time when the company stopped payment. Now, in my opinion, the contract implied or shown by the accounts which so passed between the parties must be subject to this limitation, that the company in England was at liberty to deal with the remittances made by the bank only so long as they were presumably in a position to meet their own acceptances when they should become due; and that as soon as that state of circumstances came to an end-that is to say, when the company stopped payment—they had no longer any right to deal with the remittances, so that the remittances remaining in specie were remittances which the bank could claim to have handed back to them on their discharging any claim which the company in England might have against them for payments made on their behalf, and also subject to a right on the part of the company to be indemnified against any liability not already matured which the company had undertaken. I understand that the bank has already discharged all the liabilities which the company had undertaken, and therefore, in my opinion, the bank is entitled to the remittances remaining in specie, whatever has become of them since the 20th of January, the date of the stoppage, and is not entitled to follow the proceeds of the remittances realised before that date." -Y 1 PART IX. ATTACHMENT OF FUNDS. With reference to the attachment of funds, the Rules of Court, under the Supreme Court of Judicature Act 1875, 38 and 39 Vict., c. 77—Order XLV-First Schedule-are as follow: Rules of Court. Examination Debtor as to him. 1 RULE I.—Where a judgment is for the recovery by or payment to any person of money, the party entitled to of Judgment enforce it may apply to the Court or a Judge for an order, Debts due to that the judgment debtor be orally examined as to whether any and what debts are owing to him, before an officer of the Court, or such other person as the Court or Judge shall appoint; and the Court or Judge may make an order for the examination of such judgment debtor, and for the production of any books or documents. The Court or Order an RULE 2.-The Court or a Judge may, upon the ex parte application of such judgment creditor, either before or after Judge may such oral examination, and upon affidavit by himself or his Attachment of solicitor, stating that judgment has been recovered, and that Debts. it is still unsatisfied, and to what amount, and that any other person is indebted to the judgment debtor, and is within the jurisdiction, order that all debts owing or accruing from WorM < > 1 } 472 ATTACHMENT OF FUNDS. Rules of Court. such third person (hereinafter called "the garnishee ") to the judgment debtor shall be attached to answer the judgment debt; and by the same or any subsequent order it may be ordered that the garnishee shall appear before the Court or a Judge, or an officer of the Court, as such Court or Judge shall appoint, to show cause why he should not pay the judgment creditor the debt due from him to the judgment debtor, or so much thereof as may be sufficient to satisfy the judgment debt. Order for Attachment to Bind Debts. Proceedings to Levy Amount Due from Garnishee to Judgment Debtor. Order on Garnishee RULE 3.—Service of an order that debts due or accruing to the judgment debtor shall be attached, or notice thereof to the garnishee, in such manner as the Court or Judge shall direct, shall bind such debts in his hands. · RULE 4.—If the garnishee does not forthwith pay into Court the amount due from him to the judgment debtor, or an amount equal to the judgment debt, and does not dispute the debt due, or claimed to be due, from him to the judgment debtor, or if he does not appear upon summons, then the Court or Judge may order execution to issue, and it may issue accordingly, without any previous writ or process, to levy the amount due from such garnishee, or so much thereof as may be sufficient to satisfy the judgment debt. RULE 5-If the garnishee disputes his liability, the Disputing his Court or Judge, instead of making an order that execution Liability. shall issue, may order that any issue or question necessary for determining his liability be tried or determined in any manner in which any issue or question in an action may be tried or determined. Proceedings where Third Person has a Lien on the Debt. a RULE 6.—Whenever in proceedings to obtain an attach- ment of debts it is suggested by the garnishee that the debt sought to be attached belongs to some third person, or that any third person has a lien or charge upon it, the Court or Judge may order such third person to appear and state the nature and particulars of his claim upon such debt. ! ATTACHMENT OF FUNDS. 473 may Bar Claim Person and RULE 7.-After hearing the allegations of such third Rules of Court. Court or Judge person under such order, and of any other person whom by the same or any subsequent order the Court or Judge of Third may order to appear, or in case of such third person not make Orders. appearing when ordered, the Court or Judge may order execution to issue to levy the amount due from such garnishee, or any issue or question to be tried or determined according to the preceding rules of this order, and may bar the claim of such third person, or make such other order as such Court or Judge shall think fit, upon such terms, in all cases, with respect to the lien or charge (if any) of such third person, and to costs, as the Court or Judge shall think just and reasonable. Discharged. RULE 8.-Payment made by, or execution levied upon Garnishee the garnishee under any such proceeding as aforesaid, shall be a valid discharge to him as against the judgment debtor, to the amount paid or levied, although such proceeding may be set aside or the judgment reversed. RULE 9.-There shall be kept by the proper officer a debt attachment book, and in such book entries shall be made of the attachment and proceedings thereon, with names, dates, and statements of the amount recovered, and otherwise; and copies of any entries made therein may be taken by any person upon application to the proper officer. Attachment Book to be kept. RULE IO. 10. The costs of any application for Costs of an Application attachment of debts, and of any proceedings arising from for Attach- or incidental to such application, shall be in the discretion of the Court or a Judge. ment of Debt. Rules. Rules 1 to 5, and 8 to 10, are, for the most part, Source of copies of the garnishment clauses 60 to 67 of the Common Law Procedure Act, 1854, 17 and 18 Vict., c. 125; Rules 6 and 7 being copied from sections 29 and 30 of the Common Law Procedure Act, 1860, 23 and 24 Vict., c. 126. A garnishee order nisi does not create a charge until served on the garnishee. Hamer v. Giles, 11 Ch. D. 942 1 Attachable Funds. 474 1 ATTACHMENT OF FUNDS. 48 L.J., Chanc. 508. The dispute of a garnishee, under Rule 5, must be a bona fide and a substantial one. Wise v. Brokenshaw, L.J., 29 Ex. 240; Newman v. Rook, 4 C.B. N. S. 434. Debts to be attached must not be conditional but absolute ones. Howell v. Metropolitan District Railway Company, 51 L.J., Ch. 158, 45 L.T., 707. The following have been held attachable :-Debts equitable as well as legal, Wilson v. Dundas, 232 W.N., 1875; of unascertained amount, Daniel v. McCarthy, 7 Ir. Com. L.R., 261 Q.B.; due but not payable till some future time, Sparks v. Yonge, 8 Ir. Com. L.R., 251 Ex.; Jones v. Thompson, 1 El. and B., 63; due to one or more of several joint judgment debtors, Miller v. Mynn, 1 E. and E., 1075; proceeds of an execution in the Sheriff's hands, Murray v. Simpson, 8 Com. L.R., App. xlv. Ex.; rent due in the hands of a tenant, Mitchell v. Lee. L.R., 2 Q.B., 259; salary of the secretary of a company, Gordon v. Jennings, Q.B. Div.; 30 W.R., 704.* * In this case, which was an appeal from an order of Denman, J., at Chambers, the secretary of a company was held as not a servant," within the Wages Attachment Abolition Act, 1870, 33 and 34 Vict., c. 30, and that the order for attachment could rightly be made, Grove, J., observing, "I am of opinion that the learned judge's order was right, and that this appeal must be dismissed. We must construe the words of an Act of Parliament as we do any other document-that is, with reference to the subject-matter. If we were only to give words their dictionary meanings, we should often make the Acts of Parliament absurd. No doubt, in one sense, a clerk is a servant, but so, also, is a Secretary of State; but it could not be contended that this Act applied to such as he. What is the object of the Act? It is to abolish the attachment of wages. No doubt the word "wages" properly means whatever a man receives in payment for his work and service; and however large the sum received may be, it is strictly still 'wages," though usually when it is any considerable amount we now term it salary." But the word "wages," in ordinary use, is applied to the earnings of common servants and labourers, and I think the use of the word in the Act shows that is is only intended to apply to such cases. Then what are the other words used with "servant?" They are servant?" They are "servant, labourer, or workman ;" and looking at these, is it not a reasonable interpretation to say that those to whom the Act is intended to apply are those who receive small wages and do labourers' and servants' work. It throws no light on the meaning of the words to show that they are used in a wider or a narrower sense in other statutes; we must consider how they are used in this particular Act. The object of the Act is to protect those who might not be able to protect themselves. It is not for us here to determine whether this is a good བོ་ ATTACHMENT OF FUNDS. 475 from By the National Debt Act, 1870, 33 and 34 Vict., c. 71, Funds Free being "an Act for consolidating with amendments certain Attachment. enactments relating to the National Debt," passed 9th August, 1870, it is enacted, sec. 10, that "the annuities aforesaid (Consolidated 3% Annuities; Reduced 3% Annuities; New 5% Annuities, redeemable at any time after 5th January, 1873; New 3% Annuities, redeemable at any time after 10th October, 1874; New 31% Annuities redeemable at any time after 5th January, 1894; and £2 10s. per cent Annuities, redeemable at any time after 5th January, 1894), shall continue to be not liable to foreign attachment by the custom of London or otherwise." Allowances to Officers of By section 3 of 45 and 46 Vict., c. 72, it is enacted Salaries and that "No salary or sum of money granted or allowed to any officer of Customs or person employed in the collection, Customs. receipt, or management of the Customs revenue, and no sum of money allowed as or by way of compensation for past services, or upon the superannuation or retirement of such officer or person, shall be subject or liable to be seized or taken under or by virtue of any process whatsoever before the same shall have been actually paid to or for the use of the officer or person to whom the same shall have been granted or allowed." Where a collector of taxes had paid the amounts Crown received to his father, who banked them with his own Moneys. private moneys, his banker being aware that some of these sums belonged to the Crown, it was held that an extent in chief might issue against him for their recovery, object or not; but, bearing this in mind, what is the position of the debtor in the present case? He is in receipt of a salary of £200 a year, which is more than necessary to keep him, and which many gentlemen would be glad to receive. It is impossible to make an absolute definition of the exact point at which a man ceases to be a "servant" within the meaning of the Act; but it is clear that this man is not, and that the order was, therefore, right. Lopes, J., said—“I also am of opinion that the order was right. The object of the Act is to protect the earnings of those who would be deprived of their means of livelihood and of supporting their families if their earnings could be attached while in the hands of their employers. The debtor here is not such a person, and the order must be affirmed."" And } } Crown Moneys. Equitable 476 ATTACHMENT OF FUNDS. the amount being a question for a jury, Baron Parke observing, "The law is, that any one is in privity with the Crown who knows that the money which he receives is the money of the Crown; therefore an extent in chief may issue for all sums which the banker received, knowing them to be the moneys of the Crown." Rex v. Ward, 21st Nov., 1836, 28th January, 1837, 2 Exch., R. 301; Rex v. Wrangham, I C. and J., 408. And the Crown is entitled to the interest allowed by bankers on money deposited with them by a tax collector. Regina v. Adams and Warren, 2nd May, 1848, 2 Exch. R. 299, where it was held that an extent in chief may issue against a banker for the recovery of interest allowed by him on the half- yearly balance of a tax collector's account, in which his own and the Crown moneys were blended together, and also to recover the amount of country notes in the hands of a tax collector, and received by him in payment of taxes. In the course of the argument in this case, Pollock, C.B., observed that it may be difficult to trace the money of the Crown when once mixed up with the general funds of any person; but still it may be followed wherever the evidence leads. If so, its proceeds may also be followed; for instance, if an estate were purchased, the crops might be taken; or if stock were bought, the dividends might be taken. In like manner, if money paid for taxes is deposited with a banker whose practice it is to pay interest on the floating balance, the Crown is entitled to that interest. Where French debentures, to a large amount, were Assignment. purchased by defendant, who resided abroad, and a contract was entered into between him and the plaintiff that the latter should advertise them for subscription in London, for which he should be paid £4,600, and large sums were, in consequence of the advertisements, received and banked in London, but no payment made to plaintiff, he thereupon moved to restrain the defendant and the 1 > ATTACHMENT OF FUNDS. 477 bank respectively from withdrawing or parting with any Equitable Assignment. of the moneys so banked until he had been paid the £4,600. Counsel for the defendant objected that the court had no power to make such an order, that there had been no assignment to the plaintiff of the moneys in question, and that without such an assignment there could be no injunction to restrain the removal of the fund. In the course of the argument, however, some correspondence between the parties was read, from which it appeared that it was fully understood and agreed between them that the £4,600 should be paid to the plaintiff out of the first moneys received by the bank from subscribers. Day, J., considered that this consti- tuted in equity an assignment of the fund, and made the order asked for. Morris v. De Lamonta, 26 S.J. 700, 16th September, 1882. In the case of the Agra and Masterman's Bank v. Hoffman, 15th and 18th December, 1865, II L. T. N. S. 701, an accountholder, the defendant, had upwards of £4000 to his credit with the Bank, which, however, had discounted his bills to a much larger amount, and all of which, from the insolvency of the obligants, would prove bad. The Bank, under these circumstances, attached the balance, refusing to further honour the cheques of the defendant, and he thereupon brought an action to recover damages and the amount of his balance. An injunction to restrain the action was granted by the Court, Stuart, V.C., observing, "the plaintiffs in equity have stated that an action has been brought against them by one of their customers, in which he insists that he is entitled to the recovery of a balance standing to his credit at their bank upon a banking account; but the plaintiffs state that, not- withstanding such balance, there is on the part of the defendant a much larger liability to them, and they insist that they ought to be allowed to hold such balance until the defendant has discharged his liability. That is a fair Client's Balance. 1 Client's Balance. 478 ATTACHMENT OF FUNDS. question to be tried by this Court. On the other hand, the defendant in equity insists upon his right to proceed with his action and have the question tried at law. The plain- tiffs, by their bill, have impeached altogether the legal right of the defendant, and have stated the peculiar nature of his liabilities, which they allege have not been discharged. In this state of things the Court, I think, is bound to grant the injunction which has been asked. I do not consider that the case of Rawson v. Samuel, Cr. and Ph. 161, has any bearing on the present question. There is no room for the defendant's complaint of the delay of the plaintiffs in not filing their bill sooner, because it was quite possible that the defendant's heavy liabilities to the plaintiffs might have been discharged before the action could be tried. The bills have been dishonoured, and the plaintiffs, having come for relief to this Court, are entitled to an injunction." And, it having appeared by the evidence that on the day on which the plaintiffs had dishonoured the defendant's cheques, they had received money on his behalf and placed it to his credit, the Vice- Chancellor added: "In conclusion, I cannot avoid observing that it was rather a sharp thing on the part of the plaintiffs to take their customer's money on the very day on which they made up their mind to dishonour his cheques. If it should hereafter be considered that they were not justified in withholding payment of these cheques, then the amount of damages to be paid by them to the defendant will have to be considered; but at present it is quite impossible to say what sum is payable in respect of these damages." Subsequently, on 18th December, it was intimated to the learned judge that the plaintiffs had returned the money which had been received by them on the day they refused payment of the defendant's cheques, and that, moreover, a compromise had been effected between the parties, and that the case would not proceed. { + $ ATTACHMENT OF FUNds. 479 Balance. In the course of the action the manager of the bank had, Client's by his affidavit, stated that it was the ordinary practice amongst bankers to call upon a person for whom they had discounted a bill of exchange to take it up again in the event of the acceptor suspending payment, although it had not arrived at maturity; but on the part of the defendant this was disputed, it being alleged that there was no custom which justified bankers retaining a balance to cover a possible liability in respect of running bills discounted for the accountholder. When a current account has been transferred from another bank, and this should only be allowed after a satisfactory reason for the change has been given, a proper understanding should be come to with the transferor in connection with such of his cheques on the other bank and acceptances domiciled there as may be in circulation, and a written authority should be received from him for their payment in the event of his not having left a sufficient balance with the other bank to meet them. In certain cases, as where the new bank are holders for value of bills accepted by the transferor and domiciled by him at the other bank, and these are returned dishonoured, there would thus be no doubt or difficulty in dealing with them, and all questions would be prevented as to the right to at once debit his account or attach his funds in satisfaction of the instruments.* *The following are the material portions of a correspondence referable to a case of this nature which recently occurred :— * * * A- B, BANKER, TO THE AUTHOR. **""C.' discounts with his bankers a bill on 'D.,' who, at this date, is the client of another bank, where the said bill is accepted payable; but before it matures he also becomes a client of 'C.'s bankers, and remains so when it falls due. The bill is presented at maturity where payable, and dishonoured. 'D.' has sufficient funds with his new bankers, the discounters of the bill, to pay it. Can they debit it to his account as if it had been accepted payable with them? Have they a preferential claim against any balance standing to his credit? And could they refuse with impunity to pay (under above circumstances) his cheque for the balance at his credit ?" * * * * * THE AUTHOR IN REPLY. 'In the absence of a prior arrangement or direct } + + 1 Foreign Sovereign. 480 ATTACHMENT OF FUNDS. Funds or property in this country, belonging to a foreign sovereign prince in his public capacity, cannot be seized under process in a suit instituted against him here, there- fore "where a suit had been brought in the Lord Mayor's Court against the Queen of Spain upon bonds of the Spanish Government, bearing interest payable in London, and moneys, belonging to her as the sovereign of that country, had been attached in the hands of garnishees in London to compel her appearance, the Court of Queen's Bench granted a prohibition, although the action was not, in form, brought against the Queen as sovereign: it appearing sufficiently by the proceedings that she was charged with liability in that character. The same law prevails, a fortiori, where the action is avowedly grounded advice, I think that a banker would not be justified in debiting the account of a client with his dishonoured acceptance domiciled at another bank, which bank, too, might be really under an obligation to pay it; and I am somewhat afraid that though a discounter of the bill, as in the case given, the new banker could not with absolute safety attach the funds to the detriment of the holder of a cheque presented at the time of the return of the bill, or before the client had been communicated with. I have no doubt, however, that some bankers would, under all the circumstances named, and by virtue of a general lien, unhesitatingly take the risk of at once debiting the client; and it is quite possible that their right to do so would be upheld by the courts. FURTHER FROM A- B——. *** * * "In the case which occurred here, the acceptor had no balance to his credit when his bill was dishonoured (of which he had due notice), but sometime afterwards his account became sufficiently in funds to cover it. On his presenting a cheque for the whole, or nearly the whole sum he had here, we told him that he could only draw for such amount as remained after payment of the bill in question. He, however, pressed us for payment of the cheque as it stood, and having some doubt as to whether we could decline it with impunity, yielded to his request. "From the opinion you have expressed on an abstract case, without the above circumstances, I am inclined to think that we should have been perfectly right and justified in attaching the sum required for the bill named, and if not troubling you too much, I should be glad of a line from you upon this particular case. THE AUTHOR IN REPLY. "With the previous notice given, I think you would have been perfectly warranted in debiting the account as soon as it was replenished, unless you received the funds upon a contrary understanding, or for the express purpose of meeting specified cheques." B—. B. PIERPOINT, ESQ., BANKER, MaccleSFIELD, TO A—— B My friend, Mr. Hutchison, has laid your correspondence before me, and asked my opinion (upon your case. I quite agree with his views as expressed in his replies to you, and should certainly not have paid 'D.'s' cheque as mentioned in your second letter. I think the case is very clear there. Supposing, however, the case was strictly as in your first letter-that is, , S ATTACHMENT OF FUNDS. 481 on acts done by the defendant in the character of Foreign Sovereign. The garnishee, in such a case, is a proper Sovereign. party to move for the prohibition, and it is no objection that he has put in a plea (nil habet) to the attachment. Nor is the motion premature, if made after the pleading of such plea and before trial of the issue, though no other excess of jurisdiction is imputed to the Lord Mayor's Court than its having entertained the suit. The motion may also be made by the sovereign prince who is defendant in the Mayor's Court, though such defendant has not appeared, and the garnishee has not pleaded. The pro- hibition may go at the instance of a mere stranger." Head Note to "In the matter of Wadsworth and the Queen of Spain; and In the matter of De Haber and the Queen of Portugal," 15th April, 28th May, 1851, 17 Q.B.R. 171 to 220. Lord Campbell, C.J., delivered, in both cases, the judgment of the Court, in the course of which it was said: "We think that upon simple and clear grounds there has been an excess of jurisdiction by the Court of the Lord Mayor of London, against which we are bound to grant a that 'D.' HAD funds with you at the time of the dishonour of his acceptance -I should still have debited his account, reasoning as in the enclosed. Of course, the legal point rests in No. 4; but I believe I am right, and should assuredly have risked my not being so, and have attached the credit balance to the extent of the unpaid acceptance. You see you would be acting NOT as a banker, but as a holder for value." ENCLOSURE REFERRED TO. "I. 'D.' has funds in the hands of the new bankers. 2. The bill (domiciled at old bankers) is dishonoured. 3. The new bankers are bona fide holders for value, and could sustain their action at law, and get judgment as against 'D.' " 4. Then they clearly have a lien on 'D.'s' credit balance to the extent of his liability on his acceptance; and "5. Therefore they would be justified in attaching such credit balance, or, in other words, debiting 'D.'s' account. A- >> B- IN REPLY. "I have your favor, and am much obliged by your taking the trouble of writing to me on the matter. "The views expressed by Mr. Hutchison, and with which you agree, represented my own opinion on the subject, but a contrary view being held by our solicitors, and the case being an interesting one, was the cause which led to my submitting it to one whom I consider very competent authority, and he, like yourself, very kindly gave his opinion clearly, and, I think, decisively.". EE Foreign Sovereign. 482 ATTACHMENT OF FUNDS. prohibition at the prayer of the defendant. In the first place, it is quite certain, upon general principles, and upon the authority of the case of the Duke of Brunswick v. The King of Hanover, 2 H. L. Ca. I, affirming the decree of the Master of the Rolls in S. C. 6 Beav. I, recently decided in the House of Lords, that an action cannot be maintained in any English Court against a foreign potentate for any- thing done or omitted to be done by him in his public capacity as representative of the nation of which he is the head; and that no English Court has jurisdiction to entertain any complaints against him in that capacity. Redress for such complaints affecting a British subject is only to be obtained by the laws and tribunals of the country which the foreign potentate rules, or by the representations, remonstrances, or acts of the British Government. To cite a foreign potentate in a municipal court, for any complaint against him in his public capacity is contrary to the law of nations, and an insult which he is entitled to resent. The statute 7 Anne, c. 12, passed on the arrest of the Russian ambassador, to appease the Czar has always been said to be merely declaratory of the law of nations, recognised and enforced by our municipal law, and it provides (sec. 3) that all process, whereby the person of any ambassador, or of his domestic servant, may be arrested, or his goods distrained or seized, shall be utterly null and void. On the occasion of the outrage which gave rise to the statute, Lord Holt was present as a Privy Councillor to advise the Government as to the fit steps to be taken, and, with his sanction, seventeen persons, who had been concerned in arresting the ambassador, were com- mitted to prison that they might be prosecuted by information at the suit of the Attorney-General. Can we doubt that, in the opinion of that great judge, the Sovereign himself would have been considered entitled to the same protection, immunity, and privilege as the minister who represents him?" "We have now to consider 1 ATTACHMENT OF FUNDS. 483 whether we can grant the prohibition on the application of Foreign Sovereign. the Queen of Portugal before she appears in the Lord Mayor's Court. The plaintiff's counsel argue that, before she can be heard, she must appear and put in bail in the alternative to pay or to render. It would be very much to be lamented if, before doing justice to her, we were obliged to impose a condition upon her which would be a further indignity and a further violation of the law of nations. If the rule were that the application for a prohibition can only be by the defendant after appearance, we should have had little scruple in making this an exception to the rule. But we find it laid down in books of the highest authority that, where the Court to which the prohibition is to go has no jurisdiction, a prohibition may be granted upon the request of a STRANGER as well as of the defendant himself; 2 Inst. 607, Com. Dig. Prohibition (E). The reason is that, where an inferior Court exceeds its jurisdiction, it is chargeable with a contempt of the Crown as well as a grievance to the party; Ede v. Jackson, Fort. 345. Therefore this Court, vested with the power of preventing all inferior Courts from exceeding their jurisdiction to the prejudice of the Queen or her subjects, is bound to interfere when duly informed of such an excess of jurisdiction. What has been done in this case by the Lord Mayor's Court must be considered as peculiarly in contempt of the Crown, it being an insult to an independent Sovereign, giving that Sovereign just cause of complaint to the British Govern- ment, and having a tendency to bring about a misunder- standing between our own gracious Sovereign and her ally, the Queen of Portugal. Therefore, upon the infor- mation and complaint of the Queen of Portugal, either as the party grieved, or as a stranger, we think we are bound to correct the excess of jurisdiction brought to our notice, and to prohibit the Lord Mayor's Court from proceeding further in this suit." Several recent cases have further shorn the Lord Mayor's ! ་ Foreign Attachment. Custom in Court. 484 ATTACHMENT OF FUNDS. Court of its powers and pretensions, and diminished the value to creditors of the process of foreign attachment or garnishment, a process which, in the form it has been followed for two hundred years, has been now demonstrated as altogether illegal. By the most important of these cases, that of the London Joint Stock Bank v. The Mayor and Aldermen of London, 6, 8, April, 1880, on appeal from the Common Pleas Division to the Court of Appeal, it has been held that the allegations in a plea of the custom of foreign attachment are material, and must be proved; and on appeal by the Mayor, &c., to the House of Lords, March 24, 25, 29, 31, April 1, 1881, 6 L.R. 393, 29 W.R. 870, the judgment of the Court of Appeal was affirmed, and it was held that the process of foreign attachment in the Mayor's Court cannot be issued against a corporation aggregate as garnishees. In the case before the Common Pleas Division, the plea Lord Mayor's setting out the custom stated in effect that immemorially there had been a custom that if any plaint of debt should be levied by any person in the Mayor's Court, so that by virtue of such plaint the court should command the Serjeant-at-Mace to summon the defendant to appear to answer the plaintiff, and the Serjeant-at-Mace should, by virtue of such precept, testify that the defendant had nothing within the liberty of the city whereby he might be summoned, and then the defendant, at the same Court, should make default, and thereupon in such Court the plaintiff should testify that some other person or body corporate carrying on business within the city had any goods and effects of the defendant in his hands or custody within the city and jurisdiction of the Court, or for any cause whatsoever was indebted to the defendant in any sum of money arising or accruing within the city and liberties thereof, amounting to the debt in the plaint specified, or part thereof, then, on the petition of the plaintiff, the Court should command the Serjeant-at-Mace M ATTACHMENT OF FUNDS. 485 to attach the defendant by such goods and effects, or such Custom in Lord Mayor's sum being in the hands or custody of such other person Court. or body corporate; and then, if the Serjeant-at-Mace returned and certified to the Court such defendant to be attached, according to the custom, by such goods and effects, or sum of money, to be defended and kept so that the defendant might appear at the same or the next Court to answer the plaintiff, and if the defendant, at that and three other Courts then next severally holden, being solemnly called, did not appear, but made default, and such four defaults, according to the custom, were recorded against the defendant at such four Courts after such attach- ment made, if the plaintiff at every of such four Courts appeared according to the custom, then, at the last of the four Courts, or at any Court holden after such four defaults recorded at the petition of the plaintiff, it had been used for the Court to command the Serjeant-at-Mace to warn such other person or body corporate carrying on business within the city and liberties thereof, so being found within the city, according to the custom of the city, to appear at any Court afterwards to be holden, to show cause why the plaintiff ought not to have judgment and execution of the goods or effects or sum so attached; and if such person or body corporate so warned, being solemnly called at such Court, did not appear, but made default, then from time immemorial it had been accustomed for the Court to award the plaintiff to have judgment and execution of such goods and effects, or sum so attached, to satisfy the plaintiff the debt in the plaint specified, or so much thereof as such goods and effects or sum so attached respectively extended to satisfy, by sufficient pledges to be given by the plaintiff, according to the custom, to restore to the defendant such goods and effects, or such sum of money so attached, if the defendant within a year and a day thence next ensuing came into the Court and disproved the debt in the plaint mentioned, according to the custom, 3 Custom in 486 ATTACHMENT OF FUNDS. The plea alleged that this custom was by authority Lord Mayor's of Parliament in the seventh year of the reign of Court. King Richard II., and by divers other statutes, ratified and confirmed to the then mayor and commonalty of the city and their successors. From the special case stated for the Court of Appeal, it appeared that the practice relating to foreign attachment, as it has prevailed for at least two centuries, is this:- A plaintiff intending to resort to the remedy of foreign attachment, enters his action against the defendant. No process against the defendant issues, and no notice is given to him of the action or attachment; but the plaintiff makes an affidavit of debt, and gives information in the Mayor's Court Office that the defendant has money or goods in the hands of, e.g., John Jones, the garnishee. The Serjeant-at-Mace then serves a notice on John Jones, attaching all such moneys, goods, and effects in his hands of the defendant to answer the plaint, and warning him not to part with such moneys, goods, or effects without license of the Court.* The next step is the issue, at the expiration of four days, and, at the instance of the plaintiff, of a scire facias, calling on the garnishee to appear on a day named, and show cause why the plaintiff should not have execution of the moneys or goods of the defendant in his hands. This is served by the Serjeant-at-Mace on the garnishee, and if he does not appear, judgment is given for the plaintiff against him by * In the case of Wadsworth v. The Queen of Spain, ante p. 481, the form of notice served upon the garnishee bankers was as follows:— "Take notice, that by virtue of an action entered in the Lord Mayor's Court, London, against Her Most Christian Majesty Doña Isabel Segundar, Queen of Spain, defendant, at the suit of Thomas Page Wadsworth, plaintiff, in a plea of debt upon demand of £20,000, I do attach all such moneys, goods, and effects as you now have, or which hereafter shall come into your hands or custody, of the said defendant, to answer the said plaintiff in the plea aforesaid; and that you are not to part with such moneys, goods, or effects without license of the said Court. "CHARLES SEWELL, Serjeant-at-Mace. "GEORGE ASHLEY, Plaintiff's Attorney. "Lord Mayor's Court Office, Old Jewry." ATTACHMENT OF FUNDS. 487 Court. default. If the garnishee does appear, the appearance is Custom in Lord Mayor's recorded, and then a record is made up "stating the matters aforesaid, and containing a number of other averments which, whatever their origin, are now, and have long been, formal and fictitious." A rule to plead is then given to the garnishee, and upon his pleading that he has not in his hands any money or goods of the defendant, or any other defence, the issue or issues are tried in the usual way, and if determined in favour of the plaintiff, judgment is given for the plaintiff against the garnishee. It is a part of the practice that upon the defendant appearing to the action at any time before execution levied in foreign attachment, the attachment is ipso facto dissolved. Upon execution executed, however, the garnishee is discharged as against the defendant of the sum or goods of which execution was had. The special case contained also the following statements :— "The proceedings above sketched out are real, and in force at the present day. But, besides these proceedings, the record of foreign attachment made upon the appearance of the garnishee mixes up with the true history of what has been done a number of what are now, at all events, purely fictitious matters. It begins by stating that the plaintiff has summoned the defendant in an action of debt, that the Serjeant-at-Mace has returned that the defendant has nothing within the city by which he might be summoned, and that thereupon the plaintiff has by word of mouth testified to the Court that some other person has money or goods of the defendant in his hands within the jurisdiction, and that thereupon the Court has ordered the Serjeant-at- Mace to attach the defendant by such money or goods in the hands of such other person. It then goes on to state a return by the Serjeant-at-Mace of an attachment made accordingly (the last averment being according to the fact), and to allege that at that Court and three subsequent Courts the defendant has been solemnly called and made default, { } } { Custom in Lord Mayor's Court. 488 ATTACHMENT OF FUNds. and that such four defaults have been recorded. It then proceeds to state (truly) the scire facias to the garnishee, and the subsequent proceedings already described. There is no doubt that the preliminary proceedings thus fictitiously alleged have, for at least two centuries past, ceased to be more than formal, but it cannot be ascertained at what precise period they became so." The case also stated that, in order to enforce the attach- ment against the garnishee, the practice was to issue a writ against him commanding the Serjeant-at-Mace to "take John Jones, if he be to be found within the liberties of the city of London, and him safely keep, so that you have his body here in court without delay." It appeared that a writ in that form had been in the present case issued against the bank. In delivering their judgments, in the Court of Appeal, James, L.J., said, "I am of opinion in this case that the plaintiffs in prohibition are entitled to our judgment. A great number of very interesting points have been raised, but as there is one point upon which the whole matter may be determined for the purpose of the day, I myself think it right to determine it upon that one point, and that one point is this. The defendants have pleaded a certain custom, and they have averred that the custom they have pleaded has been followed. Now, it seems impossible for us, without violating our judicial oaths, to find in point of fact that that which has not been done has been done, and to find that that has been followed which has not been followed. The allegation is a proceeding to compel a man to appear, suit, default, and proceedings based on that default. The whole of that is admitted now to be a mere fiction, and nothing of the kind has been done; therefore, in point of fact, not only is the plea not proved, but it is essentially disproved in all respects and particulars.” “And I think I may perhaps not improperly say this, that if the proceedings in foreign attachment produce the result which 1 5 ATTACHMENT OF FUNDS. 489 they were intended from the first to produce, that is, to Custom in Lord Mayor's compel the original defendant in the original action, the Court. real action, to appear in court, and he does appear in court and submit himself, if they should take him into custody, I think they had better consider once, twice, and three times what the result of that would be on an action of false imprisonment or any other action; and I certainly advise no officer of the Court to make any return which is not according to the truth for giving effect to foreign attachment." And by Bramwell, L.J., it was observed:-"Then it has been urged upon us that it is an immaterial allegation. Now, really, that is the most astonishing proposition that I ever heard, to say that that which is the very foundation of the proceeding of foreign attachment-confessedly the foundation of foreign attachment-namely, that the debtor had been summoned, I do not say that he need have notice, but that something has been done which would give him the opportunity of appearing and constituting himself defendant in an action, and so precluding the necessity of any foreign attachment at all—to say that that is imma- terial certainly is really to say that the very foundation and principle of the proceeding is needless, and I am at a loss to understand it. It is said why it is immaterial is, because for two hundred years the thing had gone on without its being done. Well, it is a marvel to me that it should have existed for two hundred years with no greater abuse of it than appears to have taken place; because one does not hear-I do not know, I am sure, what the truth is-but one does not hear many defendants in these pro- ceedings have come forward and said, 'We have been wronged by this behind our backs, and proceedings have taken place by which some one who owed us money has been bound to hand it over to a third person, and without that third person having any right to it, if the truth were known.' But how could this Court possibly hold that was 7 Practice of High Court of Justice. 490 ATTACHMENT OF FUNDS. immaterial? Just see what our own practice is. There is a proceeding by attachment in our own Court. Well, what do we do? We do not allow a man, in the first instance, to come and say, A. B. owes me money, and C. D. owes it to him, therefore tell C. D. to pay it me. In this court the High Court of Justice-if a man wants to attach a debt, he must first get a judgment against a man who owes him the money, and he cannot get that judgment without taking the most elaborate pains, without either personally serving him or taking the utmost pains to do so, and getting an order for substituted service; and if that is a rational practice in this court—and I do not suppose anyone will say it is not-how can it possibly be an immaterial part of the practice of the court below? I hold, therefore, that there really is no pretence for saying that this is an immaterial allegation which need not be proved." In the course of his judgment in the House of Lords, Lord Selborne, C., said, "Upon the facts stated in the special case, the Court of Appeal held, first, that the custom had not been followed in divers necessary points, as to which fictitious statements had been introduced upon the record; and secondly, that the demurrer had been properly disposed of by the Common Pleas Division taking into account both the original pleadings and the new matter, of which it had been agreed that the court should take notice. There is, therefore, only one question now before your lordships, namely, whether a corporation aggregate is within the custom.* Addressing myself to this * When the privileges of a corporation belong only to one natural person and his successors, it is called a sole corporation; and when they belong to a number of persons and their successors it is called an aggregate corporation. Aggregate corporations are divided into lay and ecclesiastical, the latter composed wholly of spiritual persons and the former of laymen. Of incor- porations sole, examples are found in the Sovereign, in archbishops, bishops, archdeacons, parsons, and vicars. Lay incorporations are divided into civil and eleemosynary, the former being for the purposes, amongst others, of banking, insurance, art, science, government of towns, and commerce; the latter for charitable purposes, as the distribution of alms, or the relief of the sick and needy. Corporations can only be created by the authority of the Sovereign, express or implied, or by an act of Parliament, and they may be 1 $ ATTACHMENT OF FUNDS. 491 question, the first matter to be considered is the nature of In hands of a Corporation the custom itself. Foreign attachment is an incidental Aggregate. process to compel the appearance of a defendant who has not appeared, after having been duly summoned to do so. The only thing which makes such a custom reasonable is that the court which has jurisdiction over the defendant is, in substance, acting by the custom against the defendant alone, to compel his submission to that jurisdiction. For this purpose it arrests or attaches his goods, or the debts owing to him, within the jurisdiction, by way of security to enforce his appearance, in whatever hands they may happen to be found. The person in whose hands the goods are found, or to whom the debt is due to the defendant, has no interest in the matter, and he is indem- nified by the custom if duly followed. In other words, the whole proceeding is res inter alios acta, as against the garnishee. He is no party to the suit. No judgment, in the proper sense of the word, can pass against him in the suit, or be executed against him on any principle which is applicable to a defendant before a competent court. In order to bind him, and in order also to indemnify him, the custom must be strictly applicable to the case, and it must be followed in all material points. The effect of the custom when it is so followed, and when the goods in the garnishee's hands are delivered over, or when the debt due from him is paid, or security is given by him for the payment (if it is not then payable), is to discharge him, not by virtue of his contract, but against that contract, and without the consent of the bailor or creditor, from all further liability for the goods or money to which the bailor or creditor was entitled. Such an effect can be produced upon only one principle, namely, that of delivery or pay- extinguished by the power that formed them, by the death of all the members, by the surrender of their charter, by bankruptcy or insolvency, or by forfeiture, where the trust for which the corporation was created is broken, and its institution perverted. In certain cases, on the dissolution of a corporation, its lands revert to its founders, donors, or their heirs. 1 } Aggregate. 492 ATTACHMENT OF FUNDS. In hands of a ment by compulsion of law. If that element were absent Corporation it would be impossible for him to be absolved, as against his creditor, from a debt which he has paid, without the creditor's consent, to a person to whom it was not payable under the contract. If it be by compulsion of law he is discharged. It may be by compulsion of law if the custom is reasonable, and the custom, being established by law, is not unreasonable so long as its operation is strictly limited to its proper object-that of compelling the submission of a defendant in an action duly instituted against him in a proper court, to the jurisdiction of that court in that action, and so long as it is pursued only against that which is ascertained to be the property or the debt of the defendant, in the hands of the garnishee. Execution, therefore, by some process of law which amounts to compulsion, is indispensable for the indemnity of the garnishee, and is also indispensable in order that he may be bound. On further examination of the matter, I think it becomes clear that the custom essentially requires personal process against the garnishee as the only means of enforcing his obedience. The special case states that though between 1852 and 1872 there were numerous instances in which moneys in the hands of corporations aggregate had de facto been attached in the Mayor's Court, and judgment signed against the garnishees, and in many cases execution had been actually issued, and the money paid by the garnishee under that process, yet the process issued has always been in the form of a capias, the direction being to the Serjeant-at-Mace to 'take' the corporation. Thus, there is evidence that within a late period this process has been used against corporations with effect in this sense, that garnishee corporations have paid the money, whatever risks they may have run by doing so; but that, so far from any attempt to enforce that process against corporations, the uniform practice has been to issue a capias, as if assuming that the corporation could be taken, and perhaps put in prison. Nothing can more ATTACHMENT OF FUNDS. 493 clearly show that no other method was known of making In hands of a Corporation this attachment compulsory upon a garnishee. Another Aggregate. material statement in the special case is this, that whenever a garnishee chose to appear he had the right, as of course, to say, upon his appearance, that he owed nothing to the defendant, and had no goods of the defendant's in his hands; but that if he chose to appear, for this or any other purpose, he was obliged to find sureties to be present from court to court, until the plea of foreign attachment should be ended, otherwise he was committed to prison.' The garnishee could make his defence only upon compliance with that condition. How can a corporation be present from court to court? It is said that it can be so present by attorney; but if the object is to have the means of committing the garnishee to prison if he does not obey the process, I apprehend the presence of an attorney would be of very little value. How could a corporation be committed to prison? The sureties he gave, if he gave sureties, were not that he would pay the amount if the issues were found against him, but that he should be present in the body from court to court until the plea of foreign attachment was determined; not present by his attorney, but present in the body, that his body should be taken if he was guilty of disobedience to the lawful orders of the court. That this is an accurate statement is clear from several of the ancient authorities. There is a case which arose on habeas corpus in 1443, Welles's case (Rolls and Memoranda A. 70, R. 5), and by the return it appears, after stating the preliminary proceedings, that goods in the hands of Welles belonging to the defendant in the action were adjudged to be delivered according to the custom of the city to the plaintiff in the action, and that the said John Welles,' the garnishee, 'named in the same writ, for that he was summoned and came not according to the custom of the said city, by default was condemned by the foreign attachment afore- said—whereupon, according to the custom of the city,' at 3 3 1 & 494 ATTACHMENT OF FUNDS. In hands of a the instance of the plaintiff, one of the Serjeants-at-Mace Corporation Aggregate. was 'commanded to attach by his body the said John Welles, and cause him to be led to the prison of the lord the King, there to remain until the said John Welles should satisfy the said plaintiff of the said sum. It was not to distrain his goods, not to levy anything upon them, but to attach him by his body. We have also examples of the form of security given when submission to the court was not made. There is a precedent of the year 1680, where Ayliffe was the name of the garnishee (Returns to Writs, City Archives, vol. III., f. 20b.). The defen- dant Hayden was attached by £20 in the hands of Aylife, and Ayliffe was warned to appear at the suit of the plaintiff. He appeared and found sureties 'to have his body from court to court until the end of the plea.' In the case of Gooch v. Loveland (Returns to Writs, City Archives, vol. I., f. 139b.), the proceedings were similar, and the party did not produce his body according to the engagement. Francis Haddon, the garnishee, had given as sureties persons named Edney and Lench. The security was to have, &c.' (and, no doubt, that means his body), 'from court to court until the end of that plea, &c., according to the custom.' Afterwards the garnishee, Francis Haddon, 'by and at the instance of his main- pernours aforesaid (that is, his sureties), was committed to the prison of the lord the King in the Counter of the Poultry of London under the custody of us, the aforesaid sheriffs, there to remain until the end of the plea of the attachment aforesaid."' These examples show that the custom was, if the garnishee did not appear, to commit him to prison; and if he did appear, and time was given for further proceedings, to take security for his personal appearance from court to court: and, if he made any subsequent default, then also to commit him to prison. Committal to prison is the only way in which, according to the whole course of these precedents and the finding ATTACHMENT OF FUNds. 495 in the present case, the garnishee could be compelled to In hands of a Corporation obey; and that, as I have already said, rests upon an Aggregate, intelligible principle. Nothing more need be said to show that such a custom cannot be applied to a corporation, because it fails in this essential and indispensable point, that it cannot, as against a corporation, have the force of compulsion in law." And Lord Blackburn said:-"Is there any ground for saying that corporations were, in fact, treated as garnishees from early times. If so, I should infer that there must have been some process against them. No corporation ever seems to have been treated as a garnishee, as far as can be found, until, I think, the year 1796, and then for a considerable period there are entries from which it appears that foreign attachments had been commenced against corporations aggregate as garnishees; but there are no instances of their having been acted upon or obeyed until comparatively recent times. I think the earliest was in 1817; it may be as early as that, but most of them were after 1830. Now, we know perfectly well that before 1830 the practitioners in the City of London-or I may say the City of London-had been endeavouring to extend the custom of foreign attachment to a degree which went outrageously beyond what was justified. Their efforts to do so were hardly put an end to finally until the decision in the The Mayor of London v. Cox (L. Rep., 2 H. of L., 239), in 1867. In that case they boldly con- tended, and the Recorder certified, that it was the custom of the City to sue any person, whether he was in the City or out of the City, for any debt, whether it had occurred within the City or out of the City, and for that purpose to attach any garnishee, whether resident in the City or not resident in the City, if they could catch him within the City, so that the Serjeant-at-Mace could give him a warning. This House held—and, even if it were not the decision of this House, I should say that no one could read the } 1 496 ATTACHMENT OF FUNDS. In hands of a elaborate opinion given by Willes, J., in which I myself Corporation Aggregate. concurred as one of the summoned judges, without being convinced that this was a complete usurpation. What I have now to deal with is only the point that the system of usurpation which was stopped then had begun as early as 1830, or earlier. There are very clear traces of an attempt of the kind having been made in that case which was referred to, Welter v. Rucker, I Bro. and B. 494, where it appears that a Swiss merchant sued an Italian merchant in the City Court of London, and by what looks extremely like collusion, attached a debt in the hands of a common factor. The decision which was then come to—at least, the only decision which is material to the present case—was that payment under that attachment, under the circum- stances in which it was made, was not payment by compulsion, and that no other payment would discharge the garnishee. It is, therefore, a very important authority for the proposition with which I first started, that, to make the custom good it must be shown that there is some process by which the garnishee could be compelled to pay. I think, therefore, that corporations are not shown to be garnishees, so as to lead to the inference that there must have been some process against them. Has there been, in fact, shown to have been any process against individuals, that is to say, natural persons, who are garnishees, which could be applicable to a corporation aggregate? I have already said that it is essential to show that there is a customary process to enforce an order which only rests upon the custom itself-a process according to the custom. Has there been anything of the kind? I need not mention all the cases that were referred to, because as they went on they were all distinguished from this. The only case which is applicable is the case of Gascoyne v. Penyke, year 1374, Rolls and Memoranda A. 19, Roll 19. That was a peculiar case undoubtedly, in which it is difficult to say exactly what the suit was, but the important part of it, as regards this 1 ATTACHMENT OF FUNds. 497 Corporation aggregate. case, was that after the garnishee had made final default In hands of a judgment was given against him. 'Whereupon,' says the Recorder, 'it is considered that £50 of the moneys afore- said defended in the hands of the aforesaid John Marian,' the garnishee, 'be levied of the goods and chattels of the same John Marian, if he have whereof, &c., and be delivered to the same Torellus by security, according to the custom of the City aforesaid, &c.; and if the same John Marian have nothing whereof the moneys aforesaid can be levied, that then the same John Marian be taken and committed to prison until he shall have delivered here in court the moneys aforesaid;' so that in that case, no doubt, the court of the City did take upon itself to order a fi. fa., and, in the event of no goods being found, a ca. sa. in the same breath; and if such a thing as was then done had been done since, and that practice had been followed, so that you could consider whether it was good and reasonable in itself or not, it would be another matter; but to say that such an anomalous and peculiar thing as that should be considered as established, as being part of the custom, because once, and only once, rather more than five hundred years ago, it was done, and has never been acted upon since, seems to me impossible. We are to find the matters of fact as to the custom of the City by the terms of the order of reference upon the special case. I do not see how one could find as a fact that it was part of the custom of the City to pursue this very anomalous course, which once, and only once, appears to have been pursued five hundred years ago. As I said before, the question seems to me to come round to this: can a corporation aggregate be allowed to appear and plead nil habet? If it be so, then a corporation aggregate can only do so upon the terms of giving special bail that the corporation aggregate shall come in person and attend the court, and if not, shall be kept in custody in person; the corporation aggregate cannot come in and plead nil habet; and the custom, if it F F } } { 498 ATTACHMENT OF FUNDS. In hands of a applied to such a corporation, would be utterly unreason- Corporation Aggregate. able and void. If the corporation aggregate is to make a payment, that payment will not be good as against the debtor, unless the payment is made by compulsion of law, and that comes round to be, unless there can be shown to be some customary process applicable to a corporation aggregate by which it could be compelled to pay. I have already stated that in my opinion neither of these things is made out, and consequently I think that the judgment should be as it was given in the Court of Appeal, the judgment of the Common Pleas Division should be affirmed, and this appeal dismissed with costs." 42 L.T., N.S., 747; 29 W.R., 870; L.R. 6, App. 393; 50 L.J., Q.B., 594. Transfer of Action. Where an action was brought in the Lord Mayor's Court against a defendant and a co-defendant company, to restrain the latter from paying to the former money which the plaintiff claimed, the plaintiff obtained an interim injunction. Subsequently, a motion being made by the company to have the proceedings transferred to the Chancery Division, this was acceded to by the Vice-Chancellor, who observed: "There are various jurisdictions in this country, the Lord Mayor's Court being one of them, and, without meaning any disrespect, that is called an inferior court, but a separate and distinct court, and the Legislature has, as well in the Lord Mayor's Court Act as in the Judicature Act, provided that whenever circumstances shall so make it fit that the litigation should be transferred from the Lord Mayor's Court to this Court, this Court has the power to order it—it has the power, if it becomes satisfied of the importance of the proceeding. I am not going into any of the matters that have been argued ; I have nothing to do with them or to entertain them, except to know that there is a positive denial on the part of the company that they owe anything to the defendant. It is said there will be questions in which others are interested necessary to be decided before the main question $ ATTACHMENT OF FUNDS. 499 Action. can be decided, and in that state of things I cannot Transfer of hesitate for a moment to say it is fit that this action should be transferred. The Lord Mayor's Court has not the internal jurisdiction which this Court possesses, although, of course, it has in the cases referred to. In the present state of the law I cannot doubt that a corporation aggregate cannot be sued in the Lord Mayor's Court. I cannot hesitate to accede to the application that the proceedings be transferred into this Court. It is not necessary to go further into the Act. I need not consider any of the points that engaged the attention of the Court of Common Pleas, or that elaborate judgment of Lord Coleridge, but founding myself on the Judicature Act, upon the 24th section and the 16th order, I cannot hesitate to say that a state of circumstances is represented to me, and not disputed, upon which it is fit that this case should be transferred from the Lord Mayor's Court to this Court. I consequeutly make an order like that in Nothard v. Proctor, L.R., I Ch. Div. 4, to transfer all the proceedings from the Lord Mayor's Court to this Court." Vickers v. Stevens, 26th March, 1881, 44 L.T., 679, 29 W.R., 562. A creditor who has served on his debtor a writ of foreign attachment out of the Lord's Mayor's Court, is not, without obtaining judgment, a secured creditor within the Bankruptcy Act, 1869. Foreign attachment is a process. merely to compel appearance. Levy v. Lovell, 6th, 8th March, 1880, L.R., 14 Ch. D. 234, 42 L.T., 242, 49 L.J., Ch. 305, 28 W.R., 602, reversing decision of Bacon, V.C.; overruling in re London Cotton Mills Compay, 25 W.R., 109; and following Redhead v. Walton, 29 Beav., 521, 9 W.R., 473; and Richter v. Laxton, 27 W.R., 214. Secured Creditor. Custom in The process of foreign attachment in the Tolzey Court of Bristol has the same effect as that of the like process in Tolzey Court the Lord Mayor's Court of London, and therefore a creditor in whose suit the debtor's goods have been attached is not of Bristol. · + Custom in Tolzey Court of Bristol. Mortgagor. Adjudication in Bankruptcy. 500 ATTACHMENT OF FUNDS. a secured creditor. Ex parte Seear, in re Price, Court of Appeal, 44 L. T., 887, overruling the decision of Mr. Registrar Hazlett, sitting as Chief Judge in Bankruptcy. A garnishee order obtained by a judgment creditor, against a mortgagor does not entitle him to attach the surplus proceeds of sale, when the mortgaged property is afterwards sold by the first mortgagee. Chatterton v. Watney, 30th March, 1881, L.R., 17 Ch. Div., 259; 50 L.J., Ch. 535, 44 L.T., 391, 29 W.R., 573, Jessel, M.R., observing, "By the operation of the statute 27 and 28 Vict., c. 112, which provides, s. 1, that no judgment shall affect any land until the land has been actually delivered in execution, it is plain that the holder of a garnishee order cannot claim the land or the proceeds of the sale of it. But it is suggested that the garnishee order carries or transfers the securities. That is a very bold suggestion, and simply amounts to saying that the land can be got at before it is given in execution. In my opinion, he cannot get the land, he cannot enquire what has become of the land, or of the proceeds of sale of it. The appeal must be dismissed." A garnishee order nisi obtained by a judgment creditor, and served, but not perfected by payment or sale of the debt before adjudication in bankruptcy of the judgment debtor, is no protection as against the trustee in bankruptcy, Court of Appeal, 28th April, 5th May, 1881, reversing judgment of Bacon, C.J., in ex parte Pillers. In re Curtoys, 44 L.T., 691; L.R., 17 Ch., D. 653; 50 L.J., Ch. 691, 29 W.R. 575, Baggallay, L.J., saying:-" The County Court Judge held that this transaction was good under the Bankruptcy Act, 1869, section 94, sub-section 3. The Chief Judge did not take that view, but held it was good under section 95, sub-section 3. In fact there is a dilemma. Was this debt part of the 'goods' of the Amongst the other inferior Courts of Record, besides the above, are the Court of the Savoy, the Provost Court at Exeter, the Court of Passage at Liverpool, and the Court of Requests at Salford. 1 ATTACHMENT OF FUNDS. 501 bankrupt? If so, then the attachment must have been Adjudication in Bankruptcy. executed by seizure and sale to protect the transaction. If it was not 'goods,' then the attachment was not within the protection of the statute at all. It is immaterial to decide whether the debt was 'goods' or not, because either way the transaction cannot stand; but I agree with the Lord Justice that it was not 'goods' within the meaning of the section. The statute 6 Geo. 4, c. 16, in which the words were first introduced, was passed long before there was such a thing known as a garnishee order, though there was a process of attachment in the Lord Mayor's Court. Attachment at that time was a mode by which an equitable proceeding against the goods of the debtor would be supported by the Commissioner in Bankruptcy, if followed up by seizure and sale, but if not so followed, would not be protected. Whether the words in the present statute can have the meaning attributed to them or not, at all events this attachment was not followed up by seizure and sale, and cannot be protected." Permission to appeal to the House of Lords was refused, as the judges, James, Baggallay, and Lush, L.J.J., enter- tained no doubt of the correctness of their decision, and the amount at stake was inconsiderable. An order cannot be made to attach the surplus of a bankrupt's estate, against the trustee as garnishee. Greensill, L.R., 8 C., P. 24. Re ' 1 t PART X. MONEY. It will now be incumbent to say something of that which Money has given birth to maxims followed as earnestly-hæc recinunt juvenes dictata senesque-by the worldly of present as well as of past times:- "Quærenda pecunia primum est ; Virtus post nummos." HOR. EP. I., I. 53. And which in sacred language "is a defence," but the love of which "is the root of all evil "—Money. tives. After the first process of conducting commerce by barter Its primitive merely, money was invented as a measure of value and representa- medium of exchange, and this, according to circumstances, place, and various stages of civilization has been represented by a vast variety of objects, such as cakes of salt, sugar, compressed tea, dried fish, hides, leather tablets, furs, pieces of cloth, tobacco, elephant's teeth, shells, carved wood, engraved stones, &c. Though metals were early discovered, and were, according to Moses, in use in the fourth generation from Adam, they do not appear to have been employed for the purpose of exchange until the time of Abraham, when we read of the latter (Genesis xxiii., 16) weighing to } 1 ' 504 MONEY. .i representa- tives. Its primitive Ephron for the field and cave of Machpelah "four hundred shekels of silver." From this period, however, and for many centuries after, the metal employed was not coined, but passed by weight, as will be more particularly seen by a reference to II. Samuel xiv., 26, and see Genesis xxxvii., First coinage. 28, xliii., 21, and other Books of the Old Testament. It Early English Coinage. The Penny. was not until about nine hundred years after the time of Abraham, and nearly a thousand years previous to the Christian era that coined money was first used, the inventors, according to Herodotus, in his first book, c. 94, being the Lydians, who inhabited a tract of country in Asia Minor. About three hundred years after this the Romans. are said to have first coined in gold and silver, and a hundred years later the Jews. It may be noted that the Lydian and Greek stater, or standard, the first gold money coined, was worth twenty subsequently coined silver pieces, analogous to our shillings, so that the relative proportion of our shillings and sovereigns is the same as that of the first coinage that was ever struck.* Like most of the other nations of Europe, we appear to have derived the idea of coinage, or at least the knowledge of an advanced species of it, from the Romans; for though some doubt is occasioned by a statement of Cæsar's, De Bello Gallico, lib. 5, c. 12, as to whether there was really a primitive native coin circulation, it appears certain that in his time, the chief articles of exchange current were nothing more than rudely constructed rings made of brass and iron. Of the Roman-British period comparatively few coins have come down to us, and it was not until the time of the Saxons that the coinage assumed that marked and dis- tinctive feature which connects it with our present system. At this period the silver penny was first coined—a money *It is stated by the NEW YORK HERALD that a Chinese coin 3,000 years old has been recently found by gold miners digging in a claim at Cassiar, British Columbia. It is supposed to have belonged to Chinese mariners, wrecked on the coast long before the Christian era. MONEY. 505 which has continued from the time of the first Christian The Penny. king in this island, Ethelbert, King of Kent, who died, after a reign of fifty years, in 616, down to the present time with- out almost a single interruption. This coin is, according to Ruding, in his Annals of the Coinage, mentioned in the laws of Ina, King of the West Saxons, about the year 688. The penny, used also in the other kingdoms of the Heptarchy, was for centuries the only actual coin of British origin in circulation; for though in the time of King Ethlebert money accounts began to assume the names of pounds, shillings, pence, and mancuses, or as it is con- jectured marks, all but the pence were an imaginary money and mere terms to represent a certain value. The penny, thought to have derived its name from the word pendo, to weigh, being then as now the two hundred and fortieth part of a pound, was, previous to the Conquest, about twenty-four grains in weight; afterwards, under several successive sovereigns, twenty-two and a half grains, and then decreased to an average of about twenty grains, until the time of Henry III.* By Edward I., who further * To afford a quicker apprehension of the various times referred to in the text, we subjoin a table of the names of our monarchs, with the years in which they successively began to reign. As it was not until after the Conquest that the more important changes in the coinage took place, we shall begin the list from that period of the NORMAN MONARCHS. HOUSE OF LANCASTER. Henry IV 1399 William I, or "The Conqueror, Henry V 1413 crowned in the year 1066 Henry VI 1422 William II....... 1087 Henry I... I 100 HOUSE OF YORK. Stephen 1135 Edward IV 1461 Edward V HOUSE OF PLANTAGENET. 1483 Richard III 1483 Henry II Richard I John 1154 HOUSES OF LANCASTER AND YORK 1189 UNITED. ... I 199 Henry III Edward I Edward II. 1216 Henry VII.... 1485 1272 Henry VIII 1509 1307 Edward VI 1547 Edward III 1327 Mary 1553 Richard II.. 1377 Elizabeth 1558 } Halfpenny and Farthings. Easterlings. Sterling. 506 MONEY. debased the coin, silver half-pence and farthings were coined in the year 1280; the latter money continuing until the time of Edward IV., and the former expiring with the Commonwealth. The silver half-penny and farthing, which are both mentioned in the translation of the Saxon Gospels, represented respectively about 134d. and 34d. of our time, and were the first species of money coined round and not square as hitherto. The origin of their names is connected with the penny, which had been latterly struck with a cross, so deeply impressed as to be easily divided into two, whence halfpence; or into four, whence feorthlings or fourthings, corrupted into farthings. Previous to the time of the first Edward, however, and in the time of King Richard I., certain coins, called Easterlings, were, on account of their beauty and purity, brought from some parts of Germany, and circulated in this country. These appear to have given rise to the term sterling, and they seemed to have had a beneficial effect upon our coinage, which not long after became both finer in execution and more diversified in design. Of the term "Sterling," it may be added, Blackstone says: "when a given weight of gold or silver is of a given fineness it is then of the true standard and called sterling metal; a name for which there are various reasons given, but none of them entirely satisfactory. And of this sterling metal all the coin of the kingdom HOUSE OF STUART. HOUSES OF ORANGE AND STUART. William and Mary 1689. James I ... Charles I 1603 Anne 1702 1625 HOUSE OF HANOVER. (Commonwealth 1649 to 1660.) George I 1714 Charles II...... Restored.. James II... ... 1649 George II 1727 George III. 1760 1660 George IV 1820 1685 William IV. 1830 and VICTORIA.. 1837. From the time of the first mentioned sovereign, William the Conqueror, down to the present, the proportion between the pound, the shilling, and the penny has been uniformly the same, though the coins to which they respectively refer have not by any means borne always the same value. MONEY. 507 must be made, by the statute 25 Edward III., c. 13." Sterling. Commentaries, B. I., c. 7, s. v. By Humphreys, in his Coinage of the British Empire, page 57, it is stated that "Walter de Pinchbeck, a monk of St. Edmondbury, in the time of Edward I., derives the term sterling from 'Easterling,' a name given to persons who periodically examined the mint, and regulated the coinage—possibly at Easter; so that the term means, true money, according to the last examination; as as 100 pennies, or pounds, Easterling, or sterling. And Grimm, in his "Deutsche Mythologie," has given us the derivation of Easter, from Bede, who states that April, in which Easter generally falls, was anciently called by his countrymen Esturmonat (Eastermonth), from the name of their goddess Eastra, whose festival occurred at that period of the year." The first sterling money was coined by Henry III. in 1216, or within twenty years from the introduction of the easterling; and it was under Edward I. that a fixed standard for coin was first established; Rockley, Master of the Mint, having thus expressed it, "A pound of money containeth twelve ounces. In a pound there ought to be eleven ounces, two easterlings, and one farthing; the rest alloy. The said pound ought to weigh twenty shillings and three pence in account and weight. The ounce ought to weigh twenty pence, and a penny twenty-four grains, and an half; note, that eleven ounces, two pence sterling ought to be of pure silver, called leaf silver, and the minter must add of other weight seventeen pence half penny farthing, if the silver be so pure." It was not until the reign of Henry III. that a coinage Gold Coinage. of gold was first instituted, but during his time and that of the two succeeding monarchs it appears to have been limited in use. Indeed, throughout most of the continental states very little gold was coined before the beginning of the 14th century; Constantinople having furnished up to that period the greater part of Europe with coins of gold. } # 1 # 508 MONEY. 1 Gold Coinage. These were styled Bezants, a name derived from their place of coinage, Byzantium, now Constantinople. This scarcity of gold proceeded, we must suppose, from that want of trade which existed in former times, and not from the feeling manifested towards the coin by the Spartans, who, after its introduction into their country by Lysander, and experiencing its corrupt influence, were unanimous for its instant rejection by the Ephori, and that afterwards "no coin whether of gold or silver should be admitted into Sparta, but that they should use the money that had hitherto long obtained;" that is money made of iron, quenched with vinegar, so that being rendered brittle and unmalleable it might not be applied to any other use. Vide Plutarch's Lysander. Throughout the States of Greece, indeed, any attempt at exclusiveness based upon the possession of wealth merely was viewed with the utmost scorn and resisted by a general and deep-rooted feeling of instinct; a feeling contrasting on this point, ancient with modern times, which should have, if possible, a yet firmer hold upon the Christian, in whose judgment, as has been somewhat forcibly observed, "the man of money should not be regarded as a man, but a golden calf." The money struck by Henry III. was a gold penny, which was first current for twenty pennies of silver, and afterwards for twenty-four, or two shillings of twelve pence. Under Edward III., the gold as well as the silver coinage was much extended, that monarch having introduced the gold florin, valued at six shillings, with its half and quarters, and which coin was named from the city of Florence, where florin pieces were first coined; the gold or rose noble, valued at six shillings and eightpence, or half a mark, with also its half and quarters, sometimes called halfpennies of gold and farthings of gold; and the silver groat and half- groat, named from the French word gros, as indicative of the size of the coin, which was the largest of silver then known, and which was, in reality, first coined to a limited Extension of Gold and Silver Coinage. Gold Florin, &c. ! MONEY. 509 On the extent by Edward I. The gold or rose noble, a beautiful Rose Noble. coin of elaborate workmanship and heavier and purer than our sovereign, was substituted for the florin, and had impressed on one side, with the legend, "Edward Dei Gra. Rex. Anglo. et France, D. Hyb.," a figure of Edward III. completely armed in a ship of war, to commemorate the great naval victory obtained over the French fleet at Sluys, in 1340, when two French Admirals and 30,000 men were slain, and 230 ships taken, other side was the legend: "Jesus autem transiens per medium illorum ibat ;" the reason of its introduc- tion having given rise to some controversy amongst numismatists. This appears to be the only attempt made in England to render the coinage an instrument for commemorating and perpetuating contemporaneous cele- brated actions. On this point it may perhaps be a matter of regret that the plan proposed by Dean Swift to the Lord Treasurer in the latter part of Queen Anne's reign, was not carried into execution. In then submitting his proposition for the improvement of the British coinage by its being impressed with inscriptions and devices referring to the more remarkable events of the sovereign's reign, he urged that "By this means medals that are at present only a dead treasure, or mere curiosities, will be of use in the ordinary commerce of life, and at the same time perpetuate the glories of her Majesty's reign, reward the labours of her greatest subjects, keep alive in the people a gratitude for public services, and excite the emulation of posterity. To these generous purposes nothing can so much contribute as medals of this kind, which are of undoubted authority, of necessary use and observation, not perishable by time, not confined to any certain place; properties not to be found in books, statues, pictures, buildings, or any other monu- ments of illustrious actions." Down to the time of Edward IV. there was little or no change in the coinage, but by this monarch there 1 $ $ 3 Gold Angel, &c. Sovereign. Shilling. Crown, &c. 510 MONEY. was introduced in 1465 the gold angel, impressed with a figure of the Archangel Michael spearing a dragon; and the angelet or half-angel, having on its reverse, 'O crux ave spes unica." These coins were of the same value as the noble and half-noble. During this and several of the preceding reigns the value of money, compared in relation to commodities, and taking into account the difference in the standard and other attending circumstances, is estimated to have been generally about fifteen times greater than that of the money in the reign of our present sovereign, Victoria-that is to say, when a pound of the former period is mentioned, it may be considered as equal to about fifteen pounds of our money. The next new coins were issued by Henry VII., these being the sovereign of twenty shillings, and its double, though the term "sovereign" was afterwards disused, and, it may be said, not again formally adopted until the new coinage of George III., in 1817. Henry was likewise the first to render the imaginary shilling, which, we have seen, was a money of account as old as the Heptarchy, a real coin. It was issued by him in the 18th year of his reign, but it did not obtain a great circulation until the reign of his successor. The shilling, thought to have derived its name from scilingus, used by the Romans for the fourth part of an ounce, was at this time commonly called a testoon, from the French word teste, or tête, a head, the sovereign's head being for the first time impressed in the form of a profile, the money having previously borne the face in full, with often the entire figure of the monarch. crown was first coined, also, of IIS. 8d., the angel of 7s. "Per. Crvce. Tva. Salva Nos. Xre. Redet"-" By Thy Cross save us Christ the Redeemer," and the George noble of 6s. 8d., the last so called from the impress of St. George By Henry VIII. the silver amongst others, the royal, 6d., bearing on its reverse ! * { P 1 MONEY. and the Dragon on its obverse. 511 Half-crowns, By this monarch the money of the kingdom was openly debased to the extent of 66 per cent. Under his son and successor, Edward VI., were coined silver half-crowns, the first issued in England, &c. shillings, sixpences, and threepences, the coinage of this king being the first English money that was dated; and on the shillings and threepences were impressed XII. and III. respectively, the first time that the value was so denoted on the coinage of England. On some of the shillings was the motto, "Timor Domini fons vitæ," and on others, "Inimicos ejus induam confusione," from Proverbs xiv. 27, and Psalms cxxxii. 18.* By Queen ' *"The confusion in the value of the precious metals at this time," says Humphreys, page 81, appears to have been extreme; silver being rated at 125. the ounce, and gold at only 60s., so that gold was only made five times more valuable than silver; and in the third year of the reign, when gold was rated at 48s., it was only made four times the value of pure silver. There could, it would appear, have been no freedom in the exchanges, or the value of gold must have been eleven times greater than that of silver. Stowe tells us that the base money caused the old sterling moneys to be hoorded up, so that he had himself seen 21s. given for an old angel to guild withall. It seems scarcely credible that after the crying down of the shillings to ninepence (and those, in fact, only worth fourpence-halfpenny), that a still baser coinage was issued; and to ascertain with what view, let us see the king's own journal It was appointed to make 20,000 pounds weight SOMEWHAT BASER, to get GAINS £15,000 clear by which,' etc., etc., the coin was to be amended!! The silver now issued had nine ounces of alloy to three ounces of silver. These coins bear the same types as the preceding ones, and in the reign of Elizabeth they were stamped with a greyhound, and ordered to pass for twopence farthing. The base shillings were alluded to by Bishop Latimer in a remarkable passage of one of his sermons :— "We have now a pretty little shilling, a very pretty shilling,' etc., but 'the fineness of the silver I cannot see, yet thereon is printed a fine sentence, Timor domini fons vitæ The fear of the Lord is the fountain of life.' I would to God this sentence was always printed in the heart of the king.' In another place, speaking of the baseness of the coinage, he says, applying a text of Isaiah, 'Argentum tuum versum est in scoriam:' Thy silver is turned into-what? into testions? No! Scoriam into dross !' These passages both occurred in sermons preached before the king. Such allusions having been spoken of as seditious, Latimer replied in a subsequent discourse, alluding to the passage in Isaiah :-' Thus they burdened me ever with sedition, etc.; but I have now gotton one fellow more a companion in sedition, and wot you who is my fellow?-Esay, the prophet.' و Amongst the modes adopted to preserve the circulation at this time, were proclamations ordering the people to bring to the markets their commodities, and for which arbitrary prices were fixed; and in the time of Henry VII., to maintain the light coin then in circulation, it was enacted that no person should refuse the king's coin, if good gold and silver, on account of thinness, under pain of imprisonment or death. Latterly, however, Edward VI. commenced to improve the coinage, but it was not, as will be seen, until the reign of Elizabeth that its complete restoration was effected. [ $ $ 512 MONEY. Elizabeth silver three-halfpenny pieces and silver three- farthing pieces were coined at an early period of her reign, but these were discontinued in 1582. In this reign Milled Money. first appeared milled money, and to Elizabeth is to be ascribed the merit of having finally restored to its original proportions the money which had been so much corrupted by her father, Henry VIII., as well as in the former part of his reign, by her brother, Edward VI. Whilst its Reformation reformation was being effected she went publicly to the of the Coinage under Elizabeth. First Copper Coinage. Coinage of James I. Coinage of Charles I. Tower, and with her own hands coined several pieces, which were distributed amongst the persons immediately around her. No reform, however, took place in the coinage for Ireland, the shillings, sixpences, and three- pences of which continued in a greatly debased state; the pound of silver, worth £3 5s. in England, making £8 in Ireland. In 1601 copper pence and halfpence, the first struck by a British sovereign, were issued by her in Ireland. By James I. were issued, amongst a number of other coins, the rose ryal or laureat of £I IOS., the spur ryal of 15s., the angel of 10s., and angelet of 5s; and on his coinage the Arms of Scotland and Ireland were for the first time quartered with those of England and France. The term "Mag. Brit." was also adopted, and the mottoes, amongst others, of “Que Deus conjunxit nemo separet" and “Tueatur unita Deus" were used on some of the coins. In the reign of his successor, Charles I., the same denomination of money was in a measure preserved, but the coins which then issued bore great variety of form, being besides circular, octagonal, square, lozenge-shaped, &c., arising from the troubled nature of the times and the number of places at which the money had to be coined, as in Oxford, Shrewsbury, Pontefract, Newark, York, Carlisle, Aberys- twith, and other places; but wherever coined the pieces may be said to have been all of the proper purity and weight. On some of the coins of this reign is impressed a figure of the king on horseback, in armour and with his sword drawn, MONEY. Į 513 } Coinage of the wealth. and he was the first to enclose the royal arms in the garter. Coinage of Silver twenty-shilling and ten-shilling pieces were issued Charles I. by him. A good many pieces of his irregular obsessional or siege money, coined from gold and silver plate derived from private sources for his service, are in existence. In this reign the term "Irish Money" was abolished, and it was ordered that all accounts should hereafter be kept in sterling or English money, but it was not until 1826, under the 6 Geo. IV., c. 79, that the currency of Ireland was assimilated to that of Great Britain-the shilling of the latter having, immediately preceding the date of the Act, been accepted in Ireland for 13 pence and the £1 for £1 Is. 8d. Under the Commonwealth, and, when the war had termi- nated, a coinage superior to any that was ever struck was Common. issued. The gold coins were twenty, ten, and five shilling pieces, there being issued, to a limited extent, copper farthings, and for Cromwell the celebrated Thomas Simon executed the silver crown, half-crown, shilling, sixpence, and farthing, all unequalled for beauty, the silver crown in particular being esteemed a wonderful work of art. These coins now sell at high prices, and take precedence of the celebrated Queen Anne's coins by Croker, which constitute the next valuable remains of former coinage. In the first issues of the Commonwealth, which consisted of crown, half-crown, shilling, half-shilling, twopenny, and halfpenny pieces, the cross of St. George, placed within a palm and olive branch, was substituted for the royal arms on one side, and was also placed in one of two joined shields on the other, or reverse side, the second shield having the harp of Ireland, and the legends and mottoes were, impressed in English, "The Commonwealth of England," and "God with us," the smaller pieces, however, having no mottoes, and the halfpenny being impressed merely with the cross on one side, and the harp on the other. The crowns and half-crowns of Simon bear the laureated bust of Cromwell, with "Oliver, D.G.R.P. Ang., G G 1 514 ? MONEY. 1 Common- Coinage of the Sco., et Hib., etc., Pro.," the reverses having a crowned shield with the arms of England-the cross-Ireland, and Scotland, and the legend, "Pax quæritur bello." wealth. Coinage of Charles II. Full Copper Coinage. By Charles II. was first coined the guinea, so called from being made of the gold imported by the African Company The Guinea. from Guinea. He likewise coined the half-guinea, and the two and five-guinea pieces. The term guinea for a twenty- shilling piece, afterwards made current at 21s., having been continued to be applied, irrespective of the source of the gold; and notwithstanding the coin has now been long out of circulation, it is not unusual, though the practice appears to be on the wane, for payments to be made under that denomination, particularly in connection with fees and subscriptions to charitable undertakings. To supersede the deteriorated copper tokens which had been so largely coined previous to this time by private individuals, Charles instituted a full copper coinage of halfpence and farthings, the same from which our present dates. In the last year of his reign he coined tin farthings with a small centrepiece of copper, having on their edge, as in the case of the copper coinage, "Nummorum Famulus," the "Servant of Money," a royal prejudice having long prevailed against a currency of the inferior metals. The figure of Britannia upon the reverse of his copper coinage, and still preserved by us, is said to be modelled from the beautiful Frances Stuart, afterwards Duchess of Richmond. By James II., and William and Mary, the tin coinage of the farthing was continued. To this they added a halfpenny of the same material, but these ceased in 1693. On the coinage of William and Mary is impressed both their Majesties' profiles, surrounded with "Gulielmus et Maria, Dei Gratia," the reverse of most of the coins having four shields arranged as a cross, with the arms of Nassau in the centre, and "W. & M." interlaced in the angles. On the death of Mary, in 1695, and during the reign of William (III.), who had appointed Sir Isaac Newton to the post of Master of William and Mary. ? 1 $ MONEY. 515 the Mint, another extended reformation of the money Reformation of this country took place, for it had now become so much under of the Coinage depreciated by clipping as to be reduced to nearly half its William III. value-572 bags of silver coins brought to the Mint in 1695 only weighing 9480 lbs., instead of 18,450 lbs. Amongst papers relating to the Mint collected by Sir Isaac Newton, and in possession of Lord Portsmouth, his descendant, the following appears in his own handwriting: Particulars of silver moneys coyned from the first day of Queen Elizabeth's accession to the Crown to the end of King James the Second's reign. The silver moneys coyned in Queen Elizabeth's time made in tale The silver moneys coyned in K. James the Ist and King Charles the Ist's reigns were in tale The silver moneys coyned in K. Charles the 2nd's time were in tale Coyned in K. James the 2nd's reign, silver moneys in tale Total £4,500,000 8,500,000 3,790,000 1 0,480,000 £17,270,000" Of Queen Anne's coins, the farthings which were struck Queen Anne's have long obtained a remarkable notoriety. Their rarity Farthings. though not so great as at one time imagined—£500 having been asked for a specimen-is still such as to render them valuable, more particularly in the estimation of the numismatist and antiquarian. This coinage comprises six different coins, those of 1715 the rarest, having the Queen's head, with "Anna: Dei. Gratia" for the obverse, and on the reverse a figure of Peace, with "Bello et Pace." Some of the coins of 1713 and 1714 have on the reverse a figure of Britannia in a decorated niche, and others Victory in a war chariot, with the motto, "Pax missa per orbem." By George I. was issued a gold quarter Coinage of the guinea, and on his coins first appeared the letters F. D., Georges. 2 516 MONEY. Coinage of the for Fidei Defensor. In the reign of George II. an Georges. endeavour was made to check further malpractices with the silver. The shillings and sixpences, &c., had been milled at the edges; but though this had put a stop to clipping, filing was being resorted to, and the lines on the edges afterwards restored. As a remedy, a serpentine line, difficult to imitate, was adopted, but even this proved ineffectual, and it was not until the further improvement of the milling, in the great 're-coinage of 1817, in the following reign, that almost complete protection was secured. By George III. were coined gold seven-shilling pieces, and copper twopenny pieces and pennies, the two former, however, being recalled sometime afterwards. There were likewise coined a few five-pound pieces, the Prices given rarity and value of which are such that thirty pounds for Rare Coins. Present Coinage. have, in recent times, been readily given for one of them. The silver crown, too, of George III., has become so rare, that collectors give from twenty to thirty shillings for a well-preserved specimen. And of the prices recently given for former coins, it may be added that between £1 and £2 have been given for a five-shilling piece of James II., and that a specimen of the pattern crown of Charles II., by Simon, obtained the large amount of £155. In 1815 the guinea and half-guinea were withdrawn, being replaced by the existing sovereign and half-sovereign; and the last new coins which have been issued are the silver fourpenny pieces, first re-issued in the reign of William IV., and the silver florin, or two-shilling piece, of Queen Victoria. At the present time (1882) the coins most in use in England and Scotland are the gold sovereign and half-sovereign, the silver half-crown, shilling, sixpence, and threepence; and the bronze, substituted for the copper, penny, halfpenny, and farthing. The silver crown or five shilling piece is gradually disappearing, none having been coined for, we believe, the last thirty years; and the fourpenny bits or pieces are now being actively withdrawn from circulation, MONEY. 517 their last issue, except for Maundy money, having been in Present Coinage. 1856. Latterly this coin has fallen into such odium that many traders refuse to receive it for more than 3d., and it need hardly be said that with reference to bankers it has to them been a source of daily trouble and annoyance, causing an immense waste of valuable time in the separation of it from the threepenny pieces, the two coins, often very much abraded and abused, being frequently received together in large numbers. The crown, from its weight and size, is well out of circulation; and with respect to half-crowns and florins, a circular was issued by the Mint in 1873 to bankers, asking their opinion as to whether it was desirable that one or other of these coins should be suppressed or whether both should continue in circulation. As about two-thirds of the answers received were in favour of having both in circulation, they have since been coined in pretty equal quantities. The bronze coins are a great improve- ment upon the former heavy copper coinage, though for several years past their issue has been on the decline, owing it is supposed to the large circulation of foreign bronze coins, particularly the French two sous or ten centime pieces, passing for the same value as our penny. A limited number of half-farthings have been in circulation, but the issue of this little coin, useful and convenient to the poor, appears to have been stopped. It may be noted that the pennies of the previous reign have become exceedingly scarce from the fact that by accident they contained gold, making each penny in- trinsically worth three halfpence. Their issue was, of course, at once stopped on discovery of the circumstance. Some years ago an idea prevailed that a bar of gold had got mixed with the bronze when the pennies of 1864 were coined, and many were hoarded, and numbers passed readily in some places for two or three shillings each. They are very scarce, but it is needless to say they contain no gold. , resent Coinage. 518 MONEY. The annual report of the Deputy-Master of the Mint for 1880 shows that the total number of pieces struck during the year was 26,870,533, against 30,050,311 in 1879, and their value £4,926,255. 15s 8d. The total number of British coins struck during the year was 25,812,033, of which £3,650,800 were in sovereigns, £504,524. 10s. in half- sovereigns, £168,293. 15s. in half-crowns, £216,717 in florins, £242,139. 6s. in shillings, £97,312. 10s. 6d. in six- pences, £86. 3s. in Maundy fourpences, £20,181. 19s. 3d. in threepences, £52. Is. 2d. in Maundy twopences, £46. 4s. in silver pence, £12,503. 9s. 3d. in pence, £5,048. 17s. 8½d. in half-pence, and £1,919. 9s. 92 d. in farthings, making a total of £4,919,905. 15s. 8d. The balance is made up of other denominations of coinage, of which 23 were struck during the year, including gold two-dollar and silver pieces of several denominations for Newfoundland, bronze quarter piastres for Cyprus, and nickel coins for Jamaica. The amount of light gold coin received for re-coinage was £389,375.* *The light coinage is thus referred to by the Deputy-Master of the Mint in his next annual report just issued, "The position of the public and the Govern- ment in regard to the question may be briefly stated. Receivers of light gold coins, i.e., coins below the 'least current weight' prescribed by the Coinage Act (14 Geo. III., c. 70), are, by the 7th section of the Act, obliged to cut or deface them, but the law on this point is systematically disregarded by bankers, by most of the public departments, and by the public generally. It is observed, however, by the Bank of England, by whom bankers sending in light gold are called upon to pay the difference between its nominal and metallic value, with the natural result that the larger part of the light coin which the latter receive is purposely replaced in circulation, while a small proportion only is allowed to find its way to the Bank of England or its branches, and thence to the Mint for re-coinage. The state of the gold currency has been the subject of careful inquiry at different times at the Mint and Bank of England, by Mr. Stanley Jevons and other persons interested in the question, and more recently by Mr. John B. Martin, whose able paper, read before the Institute of Bankers, on April 19, 1882, contains the latest information on the subject. Experiments made by Mr. Jevons in 1868, and confirmed by Mr. Martin, prove that a sovereign becomes light at the expiration of eighteen years from its date of issue, but no serious attempt has been made to withdraw light gold coins from circulation since 1844, or thirty-eight years ago. "" And "In 1882 it is necessary to reckon with a coinage which was begun sixty-five years ago, and which has been permitted during the last thirty-eight years to become lighter and lighter each year. The coins to be withdrawn, therefore, are obviously much lighter, and the loss on their withdrawal would consequently be greater than in 1842. Experiments made at the Mint in 1879 on a considerable parcel of light gold show that the average loss of weight in worn sovereigns and half- . ! 1 MONEY. 519 The intention of introducing a decimal coinage, the Present Coinage. florin having been considered the first step to it, appears to have been altogether abandoned. By the Articles of Union, the coins of Scotland and England are assimilated, and the same accounts appointed to be observed throughout both countries. The most ancient Scottish silver coin yet discovered is that of Malcolm III., Ancient Scottish 1057, and coins are in existence of Donald Bane, 1093, Coins. and Alexander I., 1107. The silver pennies of William the Lion, 1165, are numerous, and this coinage continued down to the time of James V., David II. having added silver groats, half-groats, and half-pennies. The silver sovereigns may be taken to be 3d. per £1. Taking the gold circulation at £100,000,000, of which about 50 per cent is light, the amount to be re-coined cannot be estimated at less than £50,000,000; and it is also to be noted that the fineness of a large proportion of the coins now in course of withdrawal is deficient, as explained in former reports, to the extent of about £400 per million. It follows that the deficiency of precious metal in the light coin to be withdrawn and re-coined must be reckoned at nearly £650,000, a sum which does not include the expenses of re-coinage.' In the last calling in of the gold coin in 1842, when about £14,000,000 light coin was withdrawn, the loss fell upon the holders of the coins. In the more serious loss which would be entailed under a present withdrawal, the question has arisen whether it would be just that the holders should bear the burden of the whole of it, and whether this should not rather fall upon the Exchequer, or general public, though at the same time, if the latter were the case, it is alleged that the loss would be greatly increased by unscrupulous holders further reducing the coins by the "sweating sweating" process, and making large gains from this and the full nominal value they would receive for each coin. It is suggested that questions of this kind might in future be obviated by a one pound note circulation-an additional plea to the more familiar ones for the adoption of such a currency. 66 The Hanoverian Medal," it may be added, is also alluded to by the Deputy-Master of the Mint, who considers it desirable that an Act should be passed prohibiting its manufacture and sale. On the obverse it has the profile of the Queen, with the words "Victoria Regina," and on the reverse an equestrian figure, with the inscription "To Hanover," and the date. These medals or toy coins have been the cause of much crime, and during 1881 there were thirty prosecutions of children and adults for the offence of uttering them as sovereigns. We have seen above that, legally, not only bankers, but the public at large, are bound to "cut or deface" light coin when received; a law which, it is hardly necessary to say, has never been, nor will ever likely be observed, the government departments themselves not hesitating to receive light gold, and to pay it over to one another and to the public, the Bank of England being the only establishment which does not accept light coin without charging for any deficiency in the legal weight; and this of course it is bound to do for its own protection and exemption from loss. In receiving base coin the banker is, of course, quite justified in breaking or destroying it, unless expressly requested not to do so for some sufficient reason by his constituent; and in the case of light coin it rests with himself whether he should receive it at its nominal value or not. } # Ancient Scottish Coins. Coinages of James V. and subsequent Reigns. Scottish Copper Money. Right of Coinage. 520 MONEY. coins of John Baliol, 1293, and Robert Bruce, 1306, are of a superior character, and excel the English contemporary coinage. The first coinage of gold does not appear to have been instituted until the year 1371, when three different species of coins, called St. Andrews, were issued, the Arms of Scotland being on the obverse, and St. Andrew on his cross on the reverse. After this period there were various kinds of gold coins, the value of some of which, however, has not been accurately ascertained, and that of others appears to have fluctuated. In the reign of James V. was issued a beautiful gold coin known as the "bonnet piece," from the cap or beret, called in Scotland a bonnet, with which the head of the likeness of the king was surmounted. In Queen Mary's time, the gold coins though not numerous, were varied, the best being the royal. On some of her coinage she is represented with a crown on some without, and on others with a high frilled dress and widow's cap. In the time of James VI. were issued, amongst a number of other coins, the lion, sceptre, rose royal, spur royal, angel, angelet, laurel, jacobus, double crown, and thistle crown. In this reign the relative value of the Scottish and English coins was declared to be as Copper money was introduced into Scotland about a century and a half earlier than in England, and was generally designated "black money." This consisted. at various times from James II.'s reign of groats and half-groats, or placks and half-placks, derived from the plaques of the continent, hard heads, or threepenny pieces, bodles, or twopenny pieces, pennies, and last of all bawbees, which is still the vernacular for the halfpenny. 12 to I. Though the right of coining has from the earliest times been a prerogative of the sovereign (an unsuccessful attempt having been made in 1780 to vest the power of coining in the Bank of England), it has yet been sometimes. exercised by the subject, and even usurped by the latter, a circumstance occurring previous to the time of Henry II. { MONEY. 521 amongst the more powerful barons of the kingdom. When Right of Coinage. exercised by the subject, however, it has generally been done by special grant from the sovereign, and this privilege we find to have been so widely accorded by the Saxon kings that in every considerable town of the kingdom there was at least one mint, the chief towns, such as London, Canterbury, and Rochester, having sometimes as many as six or eight. In later times the right was much more restricted, and generally given only to bishops, monasteries, and great corporations; and by the time of Edward VI. it may be said to have been all but withdrawn from the subject. For a considerable period it was. common to appoint clergymen to posts in the Mint, and against this practice Latimer thus protested: "Well, well! Is this their duetie? Is this their office? Is this their calling? Should we have ministers of the Church to be comptrollers of the myntes? Is this a mete office for a priest that hath cure of soules? Is this his charge? I would here ask one question. I would fayne knowe who comptrolleth the devill at home at his parishe, while he comptrolleth the mynt? But the saying is, that since priestes have been mynters, the money hath beene worse than it was before!" Upon the introduction of copper as a coin the old right was partially revived, and given to cities, villages, and latterly to single individuals. These issued what were called tokens, which expressed on one side the value of the piece, and on the other represented the arms or some other device of the maker. When coined by a private person his address was given in addition. Some of this money was issued in 1609, and in 1653 the liberty of coining tokens for pennies, halfpennies, and farthings was extended to private individuals. This liberty, however, was so much abused that King Charles II., as we have seen, interfered, and, in 1672, introduced, for the first time under the stamp of royalty, a systematic copper coinage. 4 Right of Coinage. Sources of ¡Supply to the Mint. 522 MONEY. By subsequent enactments in the time of George III., and after private tokens had been for a short time tolerated in the middle of his reign, the right of issuing these as money was entirely abolished. As to the further powers of the sovereign in connection with the coinage it may be observed, on the authority of Blackstone, B. I., c. 7, that he may, by proclamation, legitimate foreign coin, and make it current here, declaring at what value it shall be taken in payments. The sources from which the Mint derives its supply of gold and silver bullion are various. In former times silver was procured in considerable quantities in England, Edward I. in 1296 having received seven hundred and four pounds weight of the metal from Devonshire alone. In the time of George I., and during several of the previous reigns, there was a regular supply of silver refined from the lead mines of Wales, the coins made from it always bearing the Welsh feathers, to denote the origin of the metal; such coins as were made from the silver of the West of England bearing the rose; while those made. from a mixture of the two bore both impressions. After a long period of decline in the native produce the yield was revived, and at present not only silver but gold find their way to the Mint from British mines, the value of the silver obtained in 1878 having been estimated at about £88,000, and that of the gold in the same year at about £3000, most of which was obtained from the Clogan Mine in Merionethshire, a mine which, from the appearance of its strata, is expected to become more productive in gold. With reference to the native silver, however, its yield is uncertain, and at present, though apparently again on the increase, is less than half what it was some ten or twelve years ago. Within the last thirty or forty years the sources of supply of the precious metals have been greatly multiplied; diminished and exhausted yields from some of the localities } MONEY. 523 Gold. during this period having been counterbalanced by the Sources of Supply to the supplies afforded by new mines opened up in other places. Mint. The first of the new great gold supplies came from Californian California, the quality of the gold of which country fluctuated to the extent of about three per cent, the assays having varied from 14 to 44 grains worse than the English standard, though in some instances a slightly greater difference was observed. The average was about 234 grains worse than standard, which, after deducting the loss of weight in melting, from three to four per cent, and the melting and other charges, yielded a net value of about 72/ to 72/6 per oz. The following is one of the early pro forma account sales of CALIFORNIAN GOLD DUST. Weighing 581bs. 7 oz. 14 dwt. melted into three bars. 34 4 4 12 W.0. 0*234 33 3 6 IO II 17 II 3 15 56 7 16 12 وو 2 I 25 858 0.34 IO 6 19 0'214 II O 5 15 26½ 290 14 24 271 54 το 12 2 std. 1419 £2560 6 5 658 oz. 12 dwt. 2 grs. Gold, @ 77/9 per oz. 1419 dwts. of fine Silver, 7019-B. 17. 76'7 std., @ 59¾ Parting, 4/- P lb. 19 O I £2579 6 6 II 6 7 £2567 19 11 £4 8 0. Melting.. Assaying Brokerage.... Cartage to and from Melters O II O 34 2 020 * 85 2 £2559 14 9 is * } 524 MONEY. ! Californian Gold. Present Gold and Silver Producing Countries. The decrease, however, in the yield of the precious metals in California has been very remarkable. During the year previous to June, 1880, that country yielded $17,150,941 gold, and $1,150,887 silver, while in 1853 the gold production alone was $65,000,000. For several years past no Californian gold has, except in the form of United States eagles, been received in London. The gold appears to be now refined at the mines up to the American standard, and converted into eagles before being exported.* Four years after the Californian discoveries which took place in 1847, the rich auriferous deposits of Australia were discovered, followed by those of New Zealand, and, more recently, immense stores of the precious metals have been furnished by Nevada, Colorado, Utah, Montana, Idaho, and other states and territories of the United States, over- shadowing the old sources of supply from Peru, Mexico, and the Russian Ural Mountains. At present, moreover, new gold fields are opening up in India and South Africa; and in Victoria and New South Wales new gold-producing areas are being worked; while, by the aid of improved machinery, greatly increased yields are being received from the existing quartz and alluvial mines of these two colonies; "The * According to the following from San Francisco, 5th October, 1881, gold is at present being sent to California from Australia and New Zealand. favourable state of the exchanges between America and Europe has given a new direction to the export of gold from Australia and New Zealand. By several of the mail steamships lately small parcels of gold were received, which went to the United States mint in this city, and were coined into eagles and half-eagles. The Australia, which arrived last Monday, brought a heavy shipment, aggregating $926,151.79. Of this total, the following were consignees or purchasers: Comptoir d'Escompte de Paris, by its San Francisco agents, $484, 199.79 in gold bars; Anglo-Californian Bank, $417,619.50 in gold bars and sovereigns; Bank of British Columbia, $24,332. 50 in sovereigns. Of the shipment to the Anglo-Californian Bank, $300,000 was on account of the Bank of New Zealand, which is shipping by next mail steamer $200,000, of which $50,000 dollars will be new sovereigns. It will ship about $100,000 each month thereafter. The Bank of New Zealand gold was sold at £3 17s. 10d. per standard ounce, freight and insurance added. With exchange on London at 50 pence, there is a considerable profit on gold handled this way in making remittances to London from Auckland and Sydney. For example, 10,000 new sovereigns at the mint are worth $48,627; draft on London for £10,000 at 50 pence, $48,360; profit on transaction, $267. When freight and insurance, $75, are deducted, the balance is still considerable, and foots up on large transactions." 3 MONEY. 525 and Silver Gold. though, at the same time, according to the Secretary for Present Gold Mines, in the "Mineral Statistics of Victoria for the Year Producing 1881," the produce during that year from the alluvial gold Countries. was 313,828 ounces, and from quartz mining, 519,550; while, in 1868, 1,087,502 of alluvial gold was obtained.* From all of the above-mentioned sources, and the gold supplies that are likely to be afforded in other directions, such as in Corea, and the Colombian States of Antioquia and Tolima, and in Guatemala and Chili, the general yield of the precious metals is likely to be maintained, and amongst the more moderate estimates, it has been cal- culated that, since the discovery of the gold mines in California, more than one thousand million pounds sterling of gold and silver have been extracted from the earth. Originally the gold discoveries were in some instances Finds of made by pure accident, and occasionally the "finds" have been as unexpected as they were extraordinary. The luckiest of these appear to have occurred amongst the roots of trees; in one instance where two men who had just arrived from England, and were resting in the shade of a gum tree, one of them in rubbing up the soil with the heel of his boot disclosed to view a huge cake of gold, with the proceeds of which they realized a handsome fortune, and were enabled to leave for England by the first return ship; and in another instance, where two diggers were in the last extremity of poverty and despair, one of them in driving his pick between two branches of the root of an old tree, struck against a mass of gold which, on being taken to the bank at Dunolly, was found to weigh nearly two hundredweight-the sum of £10,000 being placed for it to the credit of the discoverers. Fortunes have also turned up under the wheels of * The total yield of gold in the colony of Victoria during 1882 is stated to have been 1,066,533 ounces, a considerable increase, as will be observed, over the yield of 1881. } $ [ 1 Riches of South Africa. Imports and 526 MONEY. wagons passing over the Victorian goldfields; and in the Transvaal nuggets of gold have appeared as unexpectedly, adding another item to the riches of South Africa, from the diamond fields of which between three and four million pounds worth of diamonds have sometimes passed annually through the Cape Post Office alone since the first diamonds were discovered in 1867. In 1880 the largest diamond, weighing 150 carats uncut, of the century, was found in the Kimberley mine, and before it left the locality £500 had been paid by spectators admitted to see it, and £60,000 have been offered fruitlessly for it by a syndicate of London jewellers. This gem, however, falls far short of the sapphire, exceeding six ounces in weight, preserved in the Prussian capital, and valued at sixty-four million marks, or nearly three million two hundred thousand pounds sterling.* The imports and exports of gold, and of silver and Exports of the silver coin for the last six years, have been as follows:- Precious Metals. Gold. GOLD. Imports. f Exports. £ 1877. 1878...... I 5,000,000 21,000,000 1879....... 13,250,000 20,000,000 14,000,000 ... 16,500,000 1880...... 9,000,000 II,500,000 1881.... 10,000,000 I 5,500,000 1882 14,350,000 12,100,000 * The yellow diamond is largely obtained in South Africa, and is of considerably less value than the white diamond, but by introducing the former into a dye of aniline violet (yellow mixed with violet light producing white light) it assumes all the appearance and brilliancy of the latter, as was found to the cost of some diamond merchants who have been recently imposed upon by the trick. A little rubbing with soap and water removes the violet, and the yellow re-appears. Artificial gold, closely resembling the pure metal, is made by a mixture of copper 100 parts weight, zinc or tin 17, magnesia 6, sal-ammoniac 360, quick lime 180, and tartar 9. When tarnished by oxidation, the brilliancy of the alloy thus formed is restored by the application of acidulated water. } MONEY. SILVER AND SILVER COIN. 527 Imports and Imports. £ Exports. Exports of the Precious £ Metals. 1877. 20,000,000 19,000,000 Silver. 1878....... I 1,000,000 I1,250,000 1879...... 10,500,000 I 1,000,000 1880.... 6,500,000 7,250,000 1881.... 6,700,000 7,000,000 1882..... 9,100,000 8,950,000 1881. The total weight of silver melted at the mint in 1881 Coinage of was nearly 255 tons. There was no gold coinage, but the coinage of silver and bronze and the smaller colonial coins was large. The total number of pieces struck was 30,351,285, and their value £1,021,739. 10s. Id. The half- crowns issued amounted to £229,400, the threepenny pieces to £23,625, and the bronze pieces to £23,405, the greater portion of the latter having been coined by contract at Birmingham. On worn silver coins there was a loss of £54,200, the silver withdrawn from circulation being purchased at its full nominal value. The gold coin received from the Australian Mints amounted to £3,306,000, more by nearly £1,000,000 than that received in 1880, and exceeded only during the last six years by the amount received in 1877. Coining. Bullion may be transmitted for coining to the Mint by Terms for any one, and this is generally effected through the Bank of England, which with the foreign importer, is indeed the sole medium of communication. By the Bank silver is received at the current rate and coined at 5s. 6d. an ounce or 66s. per pound troy, and gold is received at £3. 17s. 9d. per ounce, specimens of the latter metal having in the first instance been sent by it for assay to the Queen's Assay-Master of the Mint.* In 1851 the price of bar silver was five shillings * 'The coinage of gold," it is stated in TATE'S MODERN CAMBIST, p. 6, 17 ed., 1880, "is conducted for the public free of all charge. Everybody has the right to take bar gold to the Mint for coinage, provided that the value is not less than £20,000, and for standard weight of metal the same 1 Terms for Coining. 528 MONEY. and one farthing per ounce; during 1881, the average price was about four shillings and threepence per ounce, this, or about a fraction under, having been the average price for the past few years. In 1876 the price had fallen to 4634d., the lowest point reached during the present century. From the Deputy-Master's Report, the rate of seignorage or profit made by the Mint on the manufacture of silver coins appears to have been higher in 1881 than in any previous year except 1878, being at the rate of 27½ per cent. In weight of coin will be delivered to him without any expenses but those for assaying. However, as the Bank of England, by the Act of 1844, is obliged to buy gold of standard fineness at 77s. 9d. per ounce, bars are generally taken to the Bank, which has thereby practically become the only importer of bullion to the Mint. A mistake is frequently committed in supposing that, because gold is coined under the superintendence of public officers, and the Crown, with the sanction of Parliament, prescribes the standards and current values, the gold coins are therefore issued by the Government. This supposition is altogether contrary to the fact. The Government coins no gold for itself; but, like any private individual, it procures its supplies, when wanted, from the Bank of England. No claim can therefore be made upon the Government (or upon the Bank) to reimburse whatever loss arises from the wear or ill-usage of the gold coins. Permission has been given to the Bank to receive light gold coins by weight; they are taken at 77s. 9d. per ounce standard. The conditions on which the Bank buys gold bars are :- "(1) That the gold must be melted by melters appointed by the Bank, into bars not exceeding 204 ounces in weight; charge d. per ounce. "(2) That the bars are then assayed by an assayer appointed by the Bank; charge 4s. 6d. per bar. and selling "I'his makes the total charge per bar of 204 ounces, 8s. 9d. "Besides buying gold of standard fineness at 77s. 9d. per ounce, bars of 900 or 916 fine at 77s. 10d., and bars of 990 or greater fineness at 77s. 11d., the Bank of England buys and, when in stock, sells the following gold coins :- "Napoleons, Russian Imperials, United States Eagles, and German Reichsmark pieces. "The buying and selling prices of these coins at the Bank vary a little; on the average they are as follows:- For French coins German coins >> Russian coins ... U.S. coins ( For Buying. 77s. 24d. per oz. 76s. 3d. 77s. 73d. >> 76s. 3 d. "" For Selling. 76s. 7d. per oz. 76s. 7d. 77s. IId. 76s. 7d. The Bank delivers gold at its branches, Birmingham, Bristol, Hull, Leeds, Liverpool, Manchester, Newcastle-on-Tyne, Plymouth, Portsmouth, charging 4s. per mille for delivery, and 6d. per cent for advice of the money, making the whole charge equal to 9s. per mille. "The privilege of having silver or copper wrought into coin is vested solely in the Crown. The coins of these metals, therefore, being issued by the Government, and not being the standards of value, are, when much worn, at occasional periods either called in, new coins being given for them, or, which comes to the same, the Bank is authorised to select and send into the Mint the deteriorated pieces, obtaining full weight pieces in exchange. The silver coins are worth about 80 per cent, the bronze coins about 25 per cent of their nominal value." 1 MONEY. 529 1870 it was only 9 per cent. The reason of the exceptional Terms for Coining. profit is the low price of silver bullion, along with the circumstance that our subsidiary money circulates not at its intrinsic value, but at an artificial value, maintained by limiting the quantity issued in accordance with the public requirements.* From a return made by the Company of Moneyers in Returns of 1837, the amount of gold coined from 1558 to 1830 was Coinage. £154,762,335. IS. Iod., and of silver £39,139,581. os. 8d. The following is the coinage of gold and silver from 1867- GOLD. SILVER. £ £ 1867 496,397 93,842 1868 1,653,384 301,356 1869 7,372,204 76,428 1870 2,313,384 336,798 1871 9,919,656 701,514 1872 15,261,442 1,243,836 1873 3,384,568 .... 1,081,674 1874 1,461,565 890,604 1875 243,264 594,000 1876 4,696,648 222,354 1877 981,468 420,948 1878 2,265,069 613,998 # 1879 35,050 549,054 1880 4,150,052 761,508 1881 None. 997,128 The full coinage, including home and colonial, of the present reign, must have reached enormous proportions, * During 1882 the range of bar silver was from 50d. to 52½d., and of Mexican dollars from 4834 d. to 51%d. With reference to other rates during 1882, it may be added that India Council bills ranged from Is. 7d. to Is. 8d., and telegraphic transfers from Is. 7d. to Is. 8d.; rupee paper, 4½ per cent, from 83% to 91%, and 4 per cent from 792 to 854; sixty days' sight bills on Shanghai from 4s. 1034 d. to 5s., and on Hong Kong from 38. 62d. to 3s. 8d. The following Table shows the aggregate amount obtained during each official year ending March 31, since 1867, for India Council bills, the average Η Η } 1 1 J Mode of 'Coining. 1 530 MONEY. outrivalling that of any other sovereign, and bearing conspicuous testimony to the extended commerce and vast riches and resources of the Empire. In the three kingdoms alone, the amount of coin at present in circula- tion has been moderately estimated at about one hundred and twenty millions, of which about £100,000,000 is in gold. In the process of coining an alloy (from the French a loi, Latin ad legem, according to law,) is used for the purposes of rendering the coin more durable, and of defraying the expenses attending the coinage. In gold the alloy used is silver or copper, or both, and in silver copper alone, the proportion to the former being one part in twelve, and to the latter eighteen pennyweights to a pound weight. Thus the standard of gold is 22 caracts or carats (French carat, used for the weight by which the fineness of gold is ascer- tained, and the name derived from the bean of the Kaura tree of Abyssinia; these beans, from the uniformity of their weight, having been from the earliest times used as a weight for gold in Africa) of fine gold, and 2 carats of alloy in the pound troy, and the standard for silver II ounces 2 pennyweights, and 18 pennyweights alloy of copper. When first melted the bullion or ingots receive this alloy, and rate per rupee at which they were sold, and the amount of loss sustained by the Indian treasury, assuming that the nominal and proper rate is 2s. per rupee :- Years. Average rate per rupee. 1868...... Proceeds of drafts sold. £ 4,137,285 Loss. s. d. £ I II 19 144,533 1869..... 3,705,741 I 11'19 128,259 1870.... 6,980,122 I II 26 219,878 1871. 8,443,509 I 10'49 564,991 1872. ... 10,310,339 I II'I2 389,661 1873 13,939,095 I 10'75 763,405 1874 13,285,678 I 10'35 980,022 1875... 10,841,615 I 10'15 902,085 1876..... 12,389,613 I 9'62 1,360,387 1877. 12,695,799 I 8.50 2,161,713 1878... 10, 134,455 I 8.79 1,564,045 1879..... 13,948,565 I 7'79 2,963,796 1880. 15,261,810 I 7'96 3,088, 190 1881. 15,239,677 I 7'95 3,088,023 1882.... 18,412,429 I 7.89 3,798,506 ? MONEY. -- 531 when thus mixed the metal undergoes the first process, Mode of Coining. that of being cast into small bars; these are then subjected to various rollers and other machines, which bring them down to the required thickness and uniformity preparatory to being cut out as coins. When this is effected, and after passing through some intermediate processes, the coin is at one stroke stamped on both sides and milled at the edge by powerful and massive presses. After undergoing the trial of the Pyx, or having its quality and weight tested by the assayers, the coin is then ready for circulation to the public.* The Pyx or Pix, from the Greek Tukos, the box tree, The Pyx. whence the Latin pyxis, a box or chest, is the box or case containing the coins to be tested, the "Trial of the Pyx" having been formerly, when the coinage was carried on under contract by the company of moneyers, instead of being intrusted as at present (and since 1851, when the constitution of the Mint was changed) to salaried officers, a very important and imposing ceremony, and occurred at irregular intervals. Now the ceremony is much simplified and takes place annually before a jury, composed as before of members of the Goldsmiths' Company. * Previous to the introduction of the mill and screw machines, in 1561, the metal for coinage was first cast from the metal pot into long bars, which were then cut with shears into square pieces of the necessary weight, these being forged with the tongs and hammer into a round shape, and after being blanched by annealing and boiling, were stamped by hammer, and then sent into circulation. Recently extensive alterations have taken place at the Mint, at a net cost of £39,000, £30,000 of which represents the cost of the new and improved machinery. It had been proposed to remove the Mint to the Thames Embank- ment at Whitefriars, but as this would have involved an outlay of £300,000, the scheme was abandoned. The old screw presses have been now superseded by lever presses on the Uhlhorn system, which, besides turning out from 90 to 100 coins a minute, produce a very small number of breakages or defectively coined pieces. The whole establishment of artificers has been centralised, and, as remarked by the TIMES, in its account of the re-arranged and re-organised buildings and machinery, "there is scarcely a single process from the melting of the metal to the delicate and automatic weighing of the new-born coin which will not now be performed under better and improved conditions, and "the general result will be to enable the Mint to execute without undue difficulty the work which in future will probably devolve upon it, including an extensive re-coinage of gold, which cannot be much longer delayed." >> ; 1 J 1 Production of 7 Gold and Silver in of America. 532 MONEY. From the Report of 31st December, 1882, of the Director of the Mint of the United States of America, United States the yield during the year ended 30th June, 1882, was, approximately, £6,300,000 of gold, and £8,940,000 of silver, against £6,940,000 of gold and £8,600,000 of silver in 1881, and £7,200,000 of gold and £7,840,000 of silver in 1880. From British Colombia, and from Mexico, via San Francisco, the receipts of gold and silver during 1882 are stated in a San Francisco estimate to be respectively £236,400, and £464,000, and the net production west of the Missouri river since 1869 is thus given :- SILVER. GOLD. 1870 £ 6,750,000 £ 3,464,000 1871 6,879,600 3,857,200 1872 7,635,479 3,984,885 1873 7,841,III 5,496,660 1874 7,693,300 5,939,824 1875 7,993,639 6,327,047 1876 8,577,387 7,858,582 1877 8,976,044 9,169,221 1878 7,515,206 7,449,627 1879 6,294,052 7,406,55 I 1880 6,511,813 7,606,611 1881 6,130,791 8,597,520 1882 5,802,263 9,626,607 Production of Gold through- By the NEW YORK COMMERCIAL CHRONICLE, the out the world. following is given as the production of gold throughout the world from 1857 to 1882:- 1857 1858 ………….. 12,762 In Australia. £ 12,096 ... (ooo omitted.) In United States. £ In Russia. £ ... In other Countries. £ 2,500 Total. ... £ 29,145 I0,000 1859 ... 12,861 ... 10,000 1860 .... 11,838 ... 1861 ... 12,635 8,600 ... 9,200 ... I1,000 3,549 ... 3,454 2,500 28,716 ... ... 3,156 2,500 28,517 ... 3,053 2,500 26,591 ... ... 62,192 48,800 ... 2,980 ... 2,500 ... 26,715 16,192 12,500 139,684 L 1 है MONEY. (000 omitted.) 533 Production of Gold through- out the world, In Australia. £ In United States. £ In Russia. £ 1862 ………….. 12,933 1863 ...... 13,003 ... 1864 .... II,724 ... In other Countries. £ 7,840 2,990 2,500 26,263 ... 8,000 2,988 2,500 26,491 9,200 2,862 2,500 26,286 ... ... ... Total. £ ... 1865 ...... 11,805 10,645 ... ... 3,227 2,500 28,177 1866 ………….. 12,529 ... 10,700 3,397 ... ... 2,500 29,126 61,994 46,385 15,464 12,500 136,343 / i 1870... 9,237 1871... 9,605 1867 ………….. 10,583 1868 ………….. 11,051 1869 ...... 11,382 ... ... ... ... 9,600 9,900 10,000 8,700 ... 10,345 3,377 ... ... 2,500 ... 26,805 3,503 2,500 26,654 ... ... 4,108 ... 2,500 27,890 ... 4,414 ... ... 2,500 26,151 4,913 ... ... 2,500 25,718 51,858 48,545 20,315 12,500 133,218 1872 ...... 8,841 7,200 4,771 ... 1873 10,609 ... 7,200 4,500 ... 2,500 23,312 ... 2,500 24,809 ... t 1874 ... ... 8,250 8,000 ... 4,035 ... 2,500 ... 22,785 1875 1876 ..... 7,243 8,250 8,000 4,500 ... 9,670 ... ... 2,500 23,250 4,500 2,500 ... 23,913 43, 193 40,070 22,306 12,500 118,069 1877 1878 ..... 5,995 9,690 ... 5,625 ... ... 2,232 23,542 5,995 ... 10,580 5,785 ... ... ... 2,246 24,606 1879 5,943 8,037 5,899 2,596 ... ... ... ... 22,475 1880 5,943 7,440 ... 5,899 2,7II ... ... 21,993 1881 6,431 . 7,169 ... 5,899... 2,767 22,266 30,307 42,916 29,107 12,552 114,882 1882 ...... 6,405 ... ... 6,504 5,948 ... 2,920 ... 21,777 } } 534 MONEY. } Comparative Tables of Coins. We shall now proceed to give comparative tables of the coins of France, Great Britain, and the United States of America, at the nominal par rates, with a general view of foreign moneys of various denominations. MONNAIES DE FRANCE. VALEUR GRANDE ETATS NOMS. Or. Double Napoleon, Louis 40 00 Napoleon, Louis......... 20. FRANCAISE. BRETAGNE. UNIS. Francs. Centimes. £ s. d. Dolls. Cents. I 12 O 7 60 00 O 16 ο II 3 80 Argent. Piece de 5 francs 5 00 = 0 4 0 O 95 Piece de 2 francs 2 00 0 I 74 = Franc O IOO 0 0 9½ = O 38 O 19' Demi franc...... O 50 0 0 434 = 0 092 Quart de franc .. O 25 0 0 22 = 0 043/4 Cuivre. Ten centime piece, or piece de 2 sous Five centime piece, O IO || Ο ΟΙ 11 0 02 or sou Centime.. 0 05 0 0 0% = Ο ΟΙ 1 Ο Ο.ΟΙ О O ΤΟ 0 00/1/ There are now also in circulation, under the Monetary Convention, gold pieces of 100, 50, 10, and 5 francs each, and silver 20 centime pieces; and there are copper or bronze 2 centime pieces. There is a rumour that the copper or bronze 10 and 5 centime pieces are to be replaced by a nickel currency. Upwards of £2,508,000 of these pieces are stated to be in circulation. It is considered, however, that there is one drawback to the adoption of a nickel currency in its resemblance to silver currency, which occasionally gives rise to mistakes, and also to fraud in giving change, as most travellers on the Continent are aware. In December, 1865, an agreement was entered into • MONEY. 535 Tables of between France, Italy, Belgium, and Switzerland, under Comparative which a double standard was adopted, and the coinages of Coins. these countries assimilated in weight and fineness. Greece in September, 1868, joined, and afterwards Spain identified herself with them-the whole constituting what has been termed the "Latin Monetary Convention," or the "Latin Union." The French franc, Italian lira, Greek drachma, and Spanish peseta constitute the unit of value. From the establishment of the union to the beginning of October, 1878, France had coined £84,035,295, Italy £2,462,942, Belgium £22,121,138, and Greece £40,000 in gold. Down to 1882 Spain had coined £34,297,780 in gold, and £18,439,762 in silver. In May, 1873, was formed the "Scandinavian Monetary Convention," embracing Norway, Sweden, and Denmark. In this case gold was made the sole standard of value, and the gold coins of each country assimilated in weight and fineness the krone or crown constituting the unit of value. With reference to the Paris Mint, it may be stated that it enters into contracts for the supply of coins to various foreign governments. At present it is coining largely for the Government of Morocco and the Hellenic Government. It may be added that, following the general movement of the last few years to lessen permanent national debt, France, notwithstanding the magnitude of its debt, the largest of any country in the world, the heavy and increasing expenditure necessary to maintain its enor- mous military establishments, its outlay upon public works, and the deficits in its Budgets, has, it is rumoured, resolved upon a conversion of the Five per Cent Rente into a rente bearing 3 per cent, or if that be found impracticable, 4 or 42 per cent interest. Upon its entire public debt of £960,000,000, the average rate of interest is about 334 per cent, but upon £248,000,000 of this debt the interest is at the rate of 5 per cent. ? ; 1 ་ ; + Comparative Tables of Coins. 536 MONEY. COINS OF GREAT BRITAIN. NAMES. ENGLISH VALUE. FRANCE. UNITED STATES OF AMERICA. Gold. £ S. d. Francs. Centimes. Dolls. Cents. Sovereign Half-Sovereign O IO O Silver. IO O 25 O 4 80 12 50 2 40 Crown Half-crown 0 5 0 6 25 I 20 0 2 6 Florin... 0 2 О 3 2 3 12.5 обо 50 О 48 Shilling O IO I 25 O 24 Sixpence 0 0 6 0 62.5 о 12 Four pence...... 0 0 4 O '4I O 08 Threepence оо 3 0 31 О об Copper or Bronze. Penny O O I O 'IO Halfpenny 0 0 0½ *05 || || О 02 O ΟΙ 888 Farthing 。。 0 04 = O *025 L 0 002 There are also gold coins of £2 and £4 each, but not in circulation as money. And there are silver two- penny and one penny pieces, used only for royal alms on Maunday Thursday, and hence called Maunday money. The crown and fourpenny pieces have now for some time ceased to be coined. The sovereigns and half-sovereigns supplied by the Australian Mints of Sydney and Melbourne are legal tender throughout the British dominions. By the act of 1860 the bronze coinage consists of 95 parts of copper, 4 of tin, and I of zinc. The florins of one issue were recalled in consequence of "Dei Gratia" having been omitted to be impressed upon them. The legal tenders are: Current gold coin, shillings to number of forty, pence to number of twelve, and farthings to number of twenty-four. Formerly gold and silver were a legal tender to any amount, and afterwards, and until 1816, silver to the extent of £25. The weight of a sovereign is 123 27447 grains troy, and that of a half- 1 } MONEY. 537 Tables of sovereign 6163723 grains troy, and when these respec- Comparative tively fall under 122.5000 and 61*12500 grains, they are no Coins. longer legal tender. COINS OF THE UNITED STATES OF AMERICA. NAMES. AMERICAN VALUE. FRANCE. GREAT BRITAIN. Gold. Dolls. Cents. Francs. Centimes. £ 5. d Eagle....... Half Eagle Quarter Eagle.. ΙΟ О 52 50 2 I 8 5 О 26 25 I O IO 2 50 13 12/2 = O IO 5 Silver. Dollar Ο ΙΟΟ Dime.. O IO || || 5 25 O 0 522 = 4 2 0 0 5 Copper or Bronze. Cent O I 0 054 0 0 0% There are also in circulation the Double Eagle, and 3 Dollar and I Dollar gold pieces, and silver coins of 5 and 3 cents.* * 66 By the act of 1792," as stated in TATE'S MODERN CAMBIST, p. 148, 17th edition, "both silver and gold coins in dollars and their multiples were made legal tender to any amount at the rate of 15:1. In 1837 Congress altered the legal proportion between gold and silver to 15'988:1, the new gold dollar weighing 25.80 grains troy, 900 fine, and the new silver dollar 412½ grains, 900 fine. The former rate had given to silver a higher value in gold than it had at the time in Europe; the latter rate undervalued the white metal, which, in consequence, was largely exported, with the result of giving the United States practically a gold standard. In 1853 the whole matter had to be re-considered in consequence of the difficulties experienced by the expul- sion even of the small silver coins from the channels of circulation, and it was decided to reduce the weight of the silver coins of less denomination than one dollar, so as to ensure their retention in circulation, limiting their legal quality, at the same time, to the sum of 5 dollars. By the same Act the free coinage of silver was likewise stopped, so that, although silver dollars continued to be legal tender, the gold standard was virtually introduced. This state continued till 1873, when silver was legally demonetised. At that time the real currency of the country was, however, neither gold nor silver, but an inconvertible paper money (greenbacks) issued during the civil war, at first in 1862. This paper was declared convertible into coin 1st January, 1879, and is now on a par with gold, after having been at one time at a very great discount. During the preparation of the resumption of specie payments, the first attempt to remonetise silver was made in 1876. Silver dollars weighing 412.80 grains troy, 900 fine, were issued against the fractional currency to be legal tender up to $20. In 1878 the so-called 'Bland Bill' followed, which re-introduced the silver dollar of 412½ grains troy, 900 fine, as legal tender, giving, however, the right of coinage to the Government only, and fixing the amount to be coined at the minimum of $2,000,000, and the maximum of $4,000,000 per month. These new coins have, however, at present (1880) not yet made their way into circulation, and the United States have practically still the 'gold valuation.' "The principal gold coins are the eagle of $10 and the half eagle of $5. L Various Moneys of the World. $ 538 MONEY. Further allusion will be made to the money of the preceding countries in the following view of the moneys, with the relative approximate English value, used in various parts of the world :— Ackie, of Ashantee, about .... £ S. d. O 5 3 The ordinary currency of Ashantee has long been in pieces of gold of various weights, gold dust, and amongst the poorer classes, various kinds of shells. Alfonso, Spanish, about Altmichlic, of Turkey, worth about O 19 9 0 0 3 A withdrawal of the old metallic coins, and a general reform of the Turkish currency, is at present contemplated.. A new stamp law has been already promulgated, and under it bills of exchange not duly stamped are declared null and void, though it is provided that the drawer and acceptor are alone to be amenable to the law. Anna, of Bengal..... In Bengal the money used is :— O O 11/2 2 Double......equivalent to 4 Single Pysa. 12 Pie, or Pice 16 Annas 16 Rupees...... >> I Anna. "" "" I Rupee. I Gold Mohur. "" "" This The weight of the former is o'5375 oz., or 258 grains troy, 900 fine. makes the Mint price of gold $20.67183 p. or fine, and the gold dollar 4s. 1316d. sterling. The 'Mint par' between London and New York is, therefore, I = 4·866564. "Besides the legal tender dollar in silver, the United States are coining since 1873 the 'Trade Dollar,' a commercial money, intended to enter into competition with the Mexican and Spanish dollars in the Eastern trade, principally in China. This trade dollar weighs 420 grains, 900 fine (about four grains more than the Mexican dollar). The value in pence of the United States silver dollar is as follows:- Bar silver in London per oz. standard. Grains Troy. 54d. 542d. 55d. 55½d. 56d. 562d. 57d. 412½...... 420....... 45 15 45 57 45°99 46°41 | 46.82 47°24 47.66 45'97 46 40 46.82 47°25 47 68 48 10 48 53" + MONEY. Ashereh, of Egypt, worth about Asper, of Turkey, worth about £ s. d. 0 539 Various Moneys 0 02 of the 0 0 0 I Batzen, of Switzerland, a base silver coin, worth o o 12 Benda, of Ashantee, worth Bendiky, of Morocco, a gold coin, worth about Beshlic, or Beshleck, of Turkey, a silver coin, worth about Bisti, of Persia Boliviano, of Bolivia, worth about Carlino, of Naples, a silver coin, worth Carlino, of Sardinia, a gold coin, worth .... Candareen, of China, see under Tael. Cash, see under Tael. Cent, of the United States of America 10 13 4 0 90 0 0 7 002 0 4 0 0 0 4 1/ 1 18 10 0 0 0% By a law passed some years ago the mint of the United States was authorised to coin silver three cent pieces, to be a legal tender in payment of debts for all sums of thirty cents and under. This originated chiefly from the desire to facilitate payment of the uniform rate of postage which had been established, three cents being the charge for any distance not beyond two thousand miles on letters of the proper weight. Centime, of France In France accounts are now kept in francs and centimes. Formerly the money of account was in livres, sous, and deniers, the last coin being in value the twelfth part of the sou. There was, also, a small copper coin, called the liard, of the value of three deniers. By money of account is, of course, meant that kind of money which is used to express value in all commercial and monetary transactions. England the money of account is pounds, shillings, and pence, so that in expressing the value of anything we do not say that it is worth so many half-sovereigns, crowns, and sixpences, but so many pounds, shillings, and pence. In the United States of America the money of account, as In World. 1 1 › ? 4 * 540 दे } MONEY. Į Various Moneys of the World. 1 will have been observed from the preceding tables, is dollars and cents. The money of account has been styled imaginary or fictitious, but it is now almost universally represented in its component parts by actual coin. Coins. distinct from the money of account, and of great variety, are often circulated in the same country. Christian d'or, of Denmark, a gold coin, worth Cobang, see Kobang. £ s. d. o 16 5 Condor, gold, of Chili and La Plata, worth about 1 17 6 Condor, gold, of Columbia I 19 8 Condorin, of Japan, a copper coin, worth about o O 034 Copek or Kopek, of Russia, a copper coin, worth o o ol The copper coinage of Russia is the most ancient, and was at one time the most abundant in the country. Besides the half and quarter copek, denominated respec- tively the denga and poluska, there is the grosh, equivalent to two copeks, but all these may now be said to have fallen into disuse. There are silver pieces of five and ten copeks, called respectively the piatak and grivna. Further as to the money of Russia, see Ruble. Coroa or Crown, of Portugal, see under Milreis. Cowries, a species of small shells, used for money in various parts of India, 2560 are reckoned to a current rupee, value o 20 These shells, the best being small, white, and glossy, are procured from numerous clusters of islands, termed the Maldives and Sechelles, lying near the west coast of the peninsula of India, and are chiefly used for paying coolies, and making small payments. They are only current so long as they continue entire, and are thus reckoned in Bengal :- 4 Cowries I Gundah. 20 Gundahs I Pun. 8 Puns I Anna. These rates, however, vary, the anna being sometimes valued at only four or five puns.* * There is a species of shell money likewise used amongst many of the MONEY. 54I £ s. d. Various Moneys of the World. 1,000,000 o o Crore a Crore of India is 100 Lacs, or ten millions of Rupees, generally reckoned at about... Crusado, silver, of Portugal 0 2 I Daric, see under Toman. Decime, of France, a copper coin, equivalent to 2 sous or 10 centimes Denga, see under Copek. Dime, of the United States of America, a silver coin, worth .. Dinar, of Servia, worth about Dinero, of Peru, Dobra, of Portugal, a gold coin, formerly worth Ο Ο Ι 0 0 5 0 0 9½ 。。 434 3 11 6 Not being current, it now passes at a valuation. Doit or Duyt, of Holland, a small copper coin, worth Dollar, of America, silver………………. 0 0 0% 04 2 In the British provinces of North America accounts are now kept in dollars and cents; and in the British possessions of the West Indies accounts are kept in either pounds, shillings, and pence, or dollars and cents, the dollar being valued at the government par of 4s. 2d., and the doubloon at £3 4s. The currency money is now abolished in all the islands of the West Indies. In the currency of the various islands the dollar used to range in value from 6s. 8d. to 10s. currency. Dollar of Spain, Peso Duro, Piastre, or Piece of Eight, silver Dollar, specie, of Norway... Doppia or Pistole, a Papal gold coin, worth... O 4 3 O 4 5½ 0 13 tribes of Africa and America. These shells, known under different names by the natives, represent in both countries a lower value than even the Cowrie. Amongst civilised nations a more singular species of money than even this has obtained, for, at the seige of Milan, Frederick II. instituted stamped money made of leather, and, in 1574, the Hollanders are known to have used pasteboard as a circulating medium. At the present day fruit is used for money in many of the Indian Islands; and see ante page 503. 1 } } 3 { ! } 1 Various Moneys of the World. 542 Now superseded. MONEY. There were formerly the doppia of Naples, worth £1 IS.; and the doppia of Sardinia, worth £1. 12s. 6d. Double Napoleon, Louis, of France, a gold coin, worth £ s. d. I 12 O Doubloon, of Spain, a gold coin, worth......... I O 7½ The succession of Doubloons from 1772 have varied in value, and were worth much more than the one at present in circulation, the value of the old coins having been £3 75. 8d., £3 6s. 6d., and the more recent ones, £3 4s. 6d. Drachma, of Greece 0 0 9½ The unit of value and account, and now, under the Latin Monetary Convention, assimilated in fineness and weight to the franc. It is divided into 100 lepta, the lepton being equivalent to the centime. Ducat current, of Denmark, a gold coin, worth 0 7 6 Only a few of these ducats are now in circulation. The ducat, though very general and a favourite coin at one time, particularly with the Dutch, is now seldom used, and it has ceased to be the monetary unit in any country. The best known of the old gold ducats are those of Germany, which varied in value in the different states from 9s. 2d. to 9s. 5½d., their general value being 9s. 4d. There were also the gold ducats of Russia, Holland, Hungary, Sweden, and Lapland, ranging between 9s. 2d. and 9s. 6d.; and the silver ducats of Naples, Venice, Sicily, and Malta, varying from 3s. 4d. to 3s. 6d. Any of the old ducats that may now circulate are generally bought and sold as bullion. The ducat is said by some to have been originally the coin of a dukedom, whence its name, and to have been first coined at Venice; while others attribute its origin to Roger II. of Apulia, who issued a coin in 1140 bearing for its device the figure of our Saviour, and for its legend, "Sit Tibi Christi Datus, Quem Tu Regis, Iste Ducatus.” Į MONEY. 543 The coins of Germany, as well as those of Italy, were Various Moneys formerly very numerous, and varied in character, each state of the having generally coins peculiar to itself, and some of which were not current even in neighbouring provinces. £ s. d. Eagle, gold, of the United States of America 2 I 8 This coin now weighs 258 grains, fineness 900-1000. Previous to 1837 it weighed 270 grains, of which one- twelfth was alloy. Escudo, of Spain, about Escudo de Oro, a gold coin of the Phillippine Islands, worth...... Florin of Austria and Hungary, a silver coin worth about 020 0 8 I 020 In Austria the paper florin is now used in preference to the coin, notes indeed being generally preferred to coin in those countries whose inhabitants have become accustomed to them. Florin of Holland, Bavaria, St. Gall, and South German States, a silver coin, worth about OI 8 The Florin is also called gulden and gülden, terms which are sometimes corrupted to guilder or gilder. The Dutch 5 and 10 "guilder" gold pieces ceased being a legal tender in June, 1850, but recently the gold standard has been re-introduced into Holland, the 10 florin gold piece being worth about 16s 8d. From the present depreciated value of silver, it may be noted that the silver florin in all countries having a gold standard is worth much less than 1s. 8d., it passing in some cases for not much more than the half of that amount. Florin, Polish, of Russia Franc of France, Belgium, and Switzerland, a silver coin worth 0 0 34 0 0 9% Until 1795, the franc and livre were equivalent, but in the coinage of that period the former coin was made so heavy that its value was increased one and a quarter per cent, so that 80 francs were equal to 81 livres. World. } 1 ५ 1 ¿ Various Moneys of the World. 544 MONEY. £ s. d. worth about Franciscone, or Leopoldone, formerly one of the principal silver coins of Tuscany, Frederick d'or, single, of Prussia, a gold coin 0 4 6 worth about 0 16 54 Fuddah, see Para. Genovino of Genoa, a gold coin now worth 3 2 7 Previous to 1790 this coin was worth about £3. 10s. 0 4 4 Genovino of Genoa, a silver coin, worth………………... Georgino, an old silver coin of Genoa, worth about Grano, or Grain, of Naples and Malta O O IO In Naples accounts were formerly kept in Ducati di regno, of 100 grani. Grivna, a silver coin of Russia, worth about ... Groot, or Grote, of Holland………….. Groschen gut, of Prussia, Hanover, and other 0 0 32 parts of Germany, a silver coin worth... oo 1% I Grosh, see under Copek. Guilder, or Gulden, see Florin. Ichibu, of Japan, worth about O I 5 I 12 IO Imperial, of Russia, a gold coin, now worth ... There is likewise in circulation the polu-imperial, or half-imperial, value 16s. 5d.. The Imperials coined previous to 1763 were worth £2. Is. 6d. In Belgium, a gold imperial, worth IIS. 3d., was formerly in circulation. Itziboo, silver coin, of Japan, about Kobang, a gold coin of Japan; after many OI 5 variations in value, reduced to about ... 05 6 Kopek, see Copek. Kran, see under Toman. Kreutzer, Creutzer, or Cruitzer of Austria, a copper coin, worth......... 0 0 0 Krone, gold, of Norway, Sweden, and Denmark Krone, silver, О I 14 0 I 0% ") ¿ } MONEY. 545 £ Lac, or Lakh, of India, is 100,000 Rupees, or, taken at 25. per Rupee.........…………………..10,000 .10,000 O O Various Moneys of the World.. S. d. عليم Leang, see Tael. Leopoldone, see Fransciscone. Lepton, plural Lepta, see Drachma of Greece. Ley, gold and silver, of Roumania, worth about o o 9 Li, see under Tael. Lira, of Italy 0 0 9½ 1 The old Lira of Tuscany was worth about 8d. The Pezze da Otto Reali, or Pezzi of eight Reals, in which accounts there were principally kept, were withdrawn in 1837. The former money of account of Genoa and Venice was comprised of lire of 20 soldi, each soldo containing 12 denari, the money being divided into banco, and fuori di banco, six old lire di banco being equivalent to about five new lire. The lira is the unit of value and of account in Italy, in accordance with the monetary laws of 1862 and 1866, as well as of the Latin Monetary convention. But the actual money of Italy is a paper currency, the variation of the value of which as against gold accounts for the differences. existing between the franc and the Italian lira. The bank notes in circulation are for 1000, 500, 250, 100, 50, 20, IO, 5, 2, and I lire. It is announced that the resumption of specie pay- ments in Italy has been fixed for 12th April, 1883. Within two years the Italian Government has collected, in readiness for the resumption, more than 16½ millions sterling in gold. The following is a statement of the proportions in which the countries contributed :-England, £2,060,000; France, £2,580,000; Germany, £2,690,000; Austria, £1,500,000; Russia, £1,009,000; Denmark, £220,000; Belgium, £90,000; Spain, £25,000; Australia, £400,000; United States, £2,920,000; Italy, £3,205,000. 1 1 I I 1 1 t 546 MONEY. Various Moneys of the World. Lira or Medjidie, of Turkey and Egypt......... Livre, see Centime and Franc of France, &c. Mace, see under Tael. Mariengrosche, of Germany..... £ s. d. O 0 18 I O O 1% Formerly in Hanover and Brunswick the reckoning was in rix dollars, of 36 mariengroschen, equivalent to 3s. 6d. of our money, 8 pfennigs being equal to the mariengrosche. Mark, of Finland 0 0 92 The Finland State Bank Notes in circulation are for 500, 100, 20, 10, and 5 marks. Mark or Reichsmark, gold, of Germany " "} silver, "" O O 1134 O O 10% The mark is divided into 100 pfennige, and is the unit of value and unit of account in Germany. The gold coins are 5, 10, and 20 mark pieces; the silver, 1, 2, and 5 mark pieces and 20 and 50 pfennige pieces; the nickel, 5 and 10 pfennige pieces, and there are copper coins of smaller amounts. Excepting the thaler piece, which was the monetary unit to 1871, all the former silver coins of the different German states have been withdrawn. Mark Banco, of Hamburg Former money of account. Mark Courant, of Hamburg. OI 6 0 1 2 In Hamburg the currency value is the value of the silver coinage as compared with bank money, the latter having formerly existed in Amsterdam and other towns besides Hamburg. It was meant to facilitate transactions between traders, coins, these circulating in great variety, and being often much defaced and worn, being taken to the bank, assayed and weighed, and a bank credit opened for their value with the depositor, which bank credit, more generally called bank money or bank value, was exchangeable on demand for money of full weight and fineness. The prac- tice, however, has been now all but extinguished by the modern system of banking. T MONEY. Maximilian, or Max d'Or, of Bavaria, a gold coin, worth.... Medjidie, or Lira, of Turkey and Egypt Milreis, of Brazil, gold, about "" silver, about...... 547 £ S. d. 0 13 7 Various Moneys of the World. O 18 I 0 2 24 020 1,000 reis are equal to I milrei. The coinage of gold from 1867 to 1880 amounted to £3,452,000, and of silver to £1,613,000, but the coins now in circulation are com- paratively few. The irredeemable note currency amounts to about £24,500,000. The value of the paper milreis varies, and is at present about Is. 9d. Measures are, we believe, in contemplation to reduce the note circulation, so as to restore it to its full value. Milreis, of Portugal, gold..... 0 4 54 There are in circulation in Portugal gold crowns of 10 milreis, also gold half-crowns, fifth-crowns, and tenth- crowns. The value of the silver 500 reis piece is about 25. There are also silver 200, 100, and 50 reis pieces, and the copper coins consist of 40, 20, 10, and 5 reis pieces. Since the law of 1854, regulating the currency of Portugal, it has been estimated that to the end of 1882 £1,400,000 in gold, and £2,000,000 in silver have been coined. A considerable amount of English gold circulates in Portugal. The milrei is the money of account in the Portuguese settlements. Its value, however, is variable, as payments are made in paper money, the issue of which is often excessive. In the notation of accounts the milreis are separated from the reis by a crossed cipher, thus: Rs. 500 250," or 500 milreis and 250 reis. Mohur, gold, of India Moidore, or Moeda d'Oro, an old gold coin of Portugal, worth..... I 9 2 I 7 0 Napoleon, Louis, of France, a gold coin, worth o 16 o This coin weighs 99'564 grains, and contains 89.61 grains of pure gold. It is the successor of the Louis-d'or. } } 、 548 } MONEY. 1 Various Ochavo, of Spain, a copper coin, worth... Moneys of the World. Oncia, of Sicily 0 0 0% O IO O Ore, of Norway, Sweden, and Denmark, about O 0 0% There are in circulation 10, 25, and 50 silver, and 1, 2, and 5 copper ore pieces. Pagoda Star or Current, of Madras, an old gold coin still met with, and valued at about 0 8 0 In Madras, the old coins, some of which are still occa- sionally seen, were :— IO Cash..... 8 Doodees 45 Fanams ......equivalent to I Doodee. to I Fanam. "" to I Pagoda. The copper coin doodee, and its half; and the pie, a copper coin of 20 cash, were coined in England. Paolo, an old Papal silver coin, worth about ... Para, or Fuddah, of Egypt, worth about Patacon, gold, of Uruguay, about Paunchea, see under Rea. Penni, a copper coin, of Finland ….. Peseta, a silver coin, of Spain And see under Real. Peso, silver, of Chili and Columbia........……………….. £ S. d. O 0 54 0001108 0 4 0 0.0010 0 0 9½ 0 3 11½ The metallic peso is called the peso duro, or hard peso, to distinguish it from the paper peso in circulation amongst some of the South American States. Pezza, of Malta, a silver coin and money of account, worth Pfennig, of Germany, worth about... Piastre, or Mocha Dollar, of Arabia, worth about Piastre, of Tunis…………………. Piastre, of Turkey, worth about 0 4 2 0 3 6 0 0 55 0 0 24 This is the unit of value and of account in Turkey. The coins of Turkey and of other Mahommedan coun- tries are the only coins, with the exception of those of A } > MONEY. 549 Moneys China, that do not bear an effigy of the sovereign or other Various reigning potentate. They are merely inscribed with the of the name of the latter, and with the year of the transmigration World. of Mahommed. Various gold and silver coins of other countries are current throughout Turkey. Piatak, a silver coin of Russia, about Pie, see under Anna. Pistole, German, worth about Pistole, of Spain £ S. d. .... O O 134 O 16 o O 16 2 I 6 8 Pistole, of the West Indies Polpoltin and Poltinik, see under Ruble. Poluimperial, see Imperial, of Russia. Poluska, see under Copek. Purse, of Egypt Purse, of Turkey Quattie, a silver coin of the West Indies, worth about Quattrino, an old Italian copper coin, worth about Rea or Re, of Bombay, formerly a money of account 5 2 62 4 10 32 O O 12 0 0 04 In Bombay accounts were formerly kept in rupees, quarter rupees, and reas :— 5 Reas ............being equal to 5 Pice 16 Annas or 80 Pice 100 Reas I Pice. I Anna. >> "" 1 Rupee. "" "" I Quarter Rupee. 1 Rupee. 800 Reas or 4 Quarters,, "" The Urdec, Doreea, and Fuddea, equal to two, six, and eight reas respectively, are in circulation, as also the Paunchea, equal to five rupees. Real, silver, of Spain....... $ } 0 0 22 The reals of Spain and her colonies, however, are various, some of the old coins ranging in value to 5d. In Madrid and the greater part of Spain, accounts were www 550 1 MONEY. Various Moneys of the World. formerly kept in reals vellon of 34 maravedis. Accounts are now kept in pesetas and centesimos, the peseta repre- senting the French franc, and the centesimo the centime. A hundred centesimos are equal to one peseta, the peseta to four reals, five pesetas making one duro. There are now in circulation gold pieces of 5, 10, 20, 25, 50, and 100 pesetas. In 1854 was introduced the gold doblon de Isabel, or centen = 100 reals, or £1 os. 72d. See Doubloon. Real, of Uruguay, about Reichsmark, see Mark of Germany. Reis, see Milreis. Rix Dollar, of the Cape of Good Hope, and Ceylon...... Rix Dollar, new, of Denmark, a silver coin, worth about £ s. d. 0 0 4% OI 6 023 The old specie rix dollars of Denmark and Norway were valued at 4s. 6d. The rix dollars, which formerly circu- lated in Germany and Switzerland, varied in value from 3s. 6d. to 4s. 3d. Rix Dollar, of Holland, worth about Rix Dollar, of Sweden 0 4 2 0 I 14 Formerly in Sweden the money was of three kinds, viz: specie or coin, banco or notes issued by the States bank, and Riksgald or notes issued by the Riksgald Contoir, both of which notes obtained an extensive circulation. The relative value of these kinds of money was,-three riksdaler silver specie equal to eight riksdaler banco, which were equivalent to 12 riksdaler Riksgald, the value of the riksdaler silver specie being 4s. 5%d. Ruble, or Rouble, of Russia, a silver coin, worth about 030 In recent years its value, however, has much varied, ranging to as low as 2s. At one time it was worth 4s. 6d. A paper currency has been long in circulation in Russia. MONEY. 551 World. By an imperial ukase the value of the paper ruble as Various Moneys compared with the silver ruble was fixed so that the of the latter was made equal to three rubles and 60 copeks of the former. These notes, however, were called in, and there are now notes in circulation, issued by the State Bank. These, having been made inconvertible in 1854, have fallen in value, and are at present worth only about 70 per cent of their nominal value. Besides the silver ruble there are in circulation its half, called the poltinik, and its quarter, called the polpoltin, along with the silver five and 10 copek pieces already mentioned. The silver coinage, however, of Russia being comparatively limited a considerable number of foreign coins pass current, the chief of which are German, French, and Swedish. The Spanish dollar likewise is pretty extensively circulated, particularly in the southern parts of the empire. As to the copper coinage, see Copek.* Rupee, the Company's or Government, of India, a silver coin, worth in all ordinary retail transactions £ S. d. 0 2 0 The * An intended reform of the Russian monetary system is announced. imperial paper issue will, it is said, be adopted as the monetary unit with forced currency. That is, it will be legal tender in all transactions, unless specially stipulated by both parties that payments shall be made in gold, silver, or other metallic money, and even then the debt shall be payable in paper at the exchange rate of the day. "In view," it is added, "of this scheme and past experience of the uncertainty of Russian issues of paper, it will perhaps be desirable that all sellers should specially stipulate for payment in coin, and that they should also name the coin." For the last year or two counterfeit notes for amounts between one and five rubles have been in extensive circu- lation in Russia, particularly in the frontier districts. From 1877 the State Bank has issued "Gold Notes" against deposits of gold, these notes being used for defraying the custom duties which are payable in gold. The following are the amounts of the imports and exports of gold from Russia for the past eight years :— Imports. Rubles. 5,700,000 Exports. Rubles. 26,100,000 1875....... 1876.... 4,600,000 IO1,900,000 1877…….. 10,200,000 18,200,000 1878..... 15,900,000 13,300,000 1879..... 13,900,000 8,900,000 1880..... II,400,000 26,300,000 1881 8,800,000 67,800,000 1882....... 9,400,000 79,100,000 1 1 4 552 MONEY. Various Moneys of the World.. Besides this, there are, or have been, various other denominations of rupees in India, such as the Current Rupees. Sicca Rupee, 100 of which were equivalent to Sonat Rupee, Bombay Rupee, Arcot Rupee, "" "" >> " "" "" 116 III IIO' 108 With regard to the coinage of silver in India, by a recent measure the presidency mints may now refuse to give certificates against deposits of silver for coinage purposes, and thus compel the holder of the silver to lie out of his money, for it may be several months, until it is actually- coined, whereas with the certificates these were available either for immediate discount or for security with the banks. The following shows the net imports of gold into India during the nine months ending December 31st, 1880, 1881, and 1882:— IMPORTS AND EXPORTS OF GOLD. 1880. £ 1881. £ Imports..... 2,685,802 3,792,999 Exports...... 15,063 7,429 1882. £ ... 4,359,557 96,852 3,785,570 4,262,705 been long kept in dollars, And in the Island of Java Net Imports 2,670,739 In Singapore accounts have divided into cents or 100 parts. and its dependencies accounts are kept in florins, divided into 100 parts, represented by a copper coinage of doits. See under Tael for corresponding pars between rupees and taels and silver. Schilling, of Cape of Good Hope Schilling, of Hamburg Scudo, of Malta, a silver coin and money of account, worth Malta reckons also in £. s. d. £ S. d. O O 0 214 o O 08 OI 8 & MONEY. Scudo, of Rome, a former money of account, 553 £ s. d. Various Moneys 0 4 4 worth This is now superseded by the new scudo of 10 lire. The old Roman coins varied very much, as a change was generally made in the coinage by each new Pontiff. Sequin, of Abyssinia, worth about Sequin or Zecchino, of Rome, Milan, Tuscany, and Venice, a gold coin varying in value from 9s. 2d. to Shahi, see under Toman. Shilling, of England, a silver coin worth 094 0 9 6 O O 12 The pound troy of silver is now, under the Act 56 Geo. III., c. 68, coined into 66 shillings, after having been at various former times coined into 40, 60, and 62 shillings. The weight of the shilling is 87.2727 grains, or 5655 grammes, and fineness 925-1000. Skilling, of Norway Sol, of Peru Sou or Sol, of France, replaced by the five- centime piece, worth..... Sovereign, of England, a gold coin, worth twenty shillings, or 0 0 0 0 3 11½ 0 0 0% гоо Its weight is 123′274 grains troy, or 7.988 grammes, and fineness 91666-1000. By law, 1869 sovereigns or pounds are directed to be coined out of 40 troy pounds' weight of gold II-12ths fine. schillings The sovereign is equal at par to 25 francs of France, 4 dollars 80 cents United States, 12 florins Germany, 6 thalers 20 silver groschens Prussia, 16 marks 10 Hamburg, 12 guldens Holland, 25 liri nuovi Italy. Sovereign, of Austria, a gold coin formerly circulating there, and worth...... Stiver or Stuyver, of Holland, a copper coin, worth about Tael or Tale, of China, a fixed weight of silver, worth about I 7 10 OOI o 60 of the World. } { + ។ 1 Various Moneys of the World. 554 MONEY. The tael or tale, called leang by the Chinese, is worth 10 mace or tsien = 100 candareens or fen = 1000 cash or li- these being the Chinese moneys of account. The mace, candareen, and tael, however, are merely denominations denoting certain fixed weights of silver, the cash or li being alone represented by coins, these being circular, with a square hole in the middle, round which are inscribed the reign and the name of the mint. like beads on a string or wire. at one time 750 having been they are much depreciated, and though nominally repre- senting a thousandth part of a tael, sometimes it is necessary to give as many as 1700 or more for the latter. In some parts of China bank notes are issued for very small amounts payable in copper cash, those for larger amounts being payable in silver. In Canton, Hong Kong, Foochow, and Amoy accounts are kept in dollars and cents. They are generally carried Their value varies greatly, equal to the tael, but now The following, from the BANKERS' MAGAZINE, April, 1882, v. 42, p. 292, shows the corresponding "pars" between Indian rupees and Chinese taels and silver, a noticeable varia- tion from which causes a demand for silver for the East :- SILVER per oz. 60d. QUOTED IN STERLING. Rupees. Taels. s. d. S. d. = I II = 5 II.075 59d. = 1 105% =5 9·891 58d. = 1 104 = 5 8.706 57d. =1 9% =5 7.520 56d. =1 9½ = 5 6.335 55d. =1 9% =5 5*151 54d. = =I 834 =5 3·967 53d. I 816 -5 2782 52d. =1 718 =5 1598 51d. I 7.1% = 5 0'413 50d. I 7% 3 = 4 II 229 49d. =1 613 =4 10'044 48d. =I 61% =4 8.859 MONEY. Talaro, former coin of some of the states of Italy, worth from..................3s. Id. to Testoon, of Portugal, a silver coin, worth 555 £ s. d. Various Moneys of the o 4 6 World. 0 0 4 C Thaler, of Germany, a silver coin, worth Tinse, Polish silver coin worth about.... 0 2 114 ооб The Polish currency, however, is now merged in that of Russia. Formerly there were the Shelen, an imaginary money of low denomination, the grish, trigross, and the billon or base coins, choustack and segros, the silver roup, kopfstuck, attine, timpfe, and zlotte, and the gold polonaise. Billon, from the French, and originally signifying the place of melting or the mint, is a term now exclusively used for base coin, or coin with an excess of alloy, bas billon denoting the worst description of this coinage. In France billon of silver was silver below the standard of ten pennies fine, and billon of gold below that of twenty-two carats fine. In Spain the coin was called Moneda de Vellon. Billon coin has been for several centuries in use in many of the European states, and was at one time circulated in England, Scotland, and Ireland. Toman or Tomann, of Persia, a gold coin, 093 worth about Besides tomans there are gold half-tomans, silver krans, and copper shahis in circulation, 10 krans or 200 shahis being equal to the toman. Russian, Turkish, and other foreign coins circulate in Persia; and hitherto Russian notes have also been in circulation, but the following royal order respecting them has just been issued, February, 1883, "The Shah deprecates the circulation of Russian bank notes. Gold and silver coin are being sent out of the country, and pieces of paper which are liable to become old, torn, or burnt are taken in exchange. All holders of such bank notes are advised to convert the same quickly into specie, as from March 15th all Russian bank notes found in Persia will be confiscated." 1 0 * Various Moneys of the World. Treasure Trove. } 556 MONEY. Amongst the ancient moneys of Persia it will be recollected were the darics of gold and silver, named after Darius, and which were nearly equivalent to our guineas. and shillings. Tsien, see under Tael. Urdec, see under Rea. Venezolano, of Venezuela, a gold coin, worth o 3 11½ There is also the silver venezolano of about the same value. Yarim, of Turkey, a gold coin, worth........ Yen, gold and silver, of Japan, worth about ... Yermeebeshlek, of Turkey, a gold coin, worth. £ 5. d. 0 9 0½ 0 4 2 o 12 6 Occasionally extensive discoveries of old coins and other treasures take place, such as those in a field near Kendal, a short time ago, and at Delgany, in Wicklow, in 1874, the former consisting of a number of gold and silver coins, which, from their dates, appear to have been buried about the year 1530, and the latter of a number of early Anglo- Saxon coins, including "the most essentially Kentish hoard of which we have any record." The latest in date of these coins were those of Beornvulf, from 820 to 824. Neither in Sweden nor Denmark have such coins been found of earlier date than 830. The law in connection with treasure trove-thesaurus inventus-and defined by Bracton as "vetus depositio pecuniae," is that the owner being unknown, the articles, whether money or coin, gold, silver, plate, or bullion, belong to the crown, just as it is entitled to take the property of an intestate without next of kin, and the maxim is "Quod nullius est, fit domini regis." But if the articles be lost, and not hidden, then the general law applies, and, failing the owner, the finder keeps them. In cases of hidden or buried treasure such as the above, however, it is now the practice of the Crown to pay the finder the value of the property on its surrender. The concealment of treasure trove is a misdemeanour, punish- + MONEY. Trove. 557 able by fine and imprisonment; formerly, according to Treasure Blackstone, it was punishable by death-B. iv., ch. 9; and see B. i., ch. 8, where it is stated: "Formerly all treasure trove belonged to the finder, as was also the rule of the civil law. Afterwards it was judged expedient for the purposes of the state, and particularly for the coinage, to allow part of what was so found to the king, which part was assigned to be all HIDDEN treasure; such as is CASUALLY LOST and unclaimed, and also such as is DESIGNEDLY ABANDONED, still remaining the right of the fortunate finder. And that the prince shall be entitled to this hidden treasure is now grown to be, according to Grotius, 'jus commune, et quasi gentium;' for it is not only observed, he adds, in England, but in Germany, France, Spain, and Denmark. The finding of deposited treasure was much more frequent, and the treasures them- selves more considerable, in the infancy of our constitution than at present. When the Romans, and other inhabitants of the respective countries which composed their empire, were driven out by the northern nations, they concealed their money underground with a view of resorting to it again when the heat of the irruption should be over, and the invaders driven back to their deserts. But, as this never happened, the treasures were never claimed, and on the death of the owners the secret also died along with them. The conquering generals, being aware of the value of these hidden mines, made it highly penal to secrete them from the public service. In England, therefore, as among the feudists, the punishment of such as concealed from the king the finding of hidden treasure was formerly no less than death; but now it is only fine and imprisonment." } 1 PART XI. 1 PASSPORTS. in connection The Passport system, though being gradually disused Purposes of, or relaxed, still extensively prevails in various countries, and changes It is of somewhat ancient origin, and in some of the Euro- with Passports. pean States is very rigidly carried out in the hope, fruitless though it generally proves, of checking dangerous or improper persons from entering the country. The Pass- port is intended to serve as a voucher of the character of the bearer, entitling him to the protection of the authorities. of the countries through which he may pass, and which are on peaceful terms with his own. In 1861 the system was introduced into the United States of America, but as affecting British subjects, the regulations requiring Pass- ports for entering the States have been abolished. In England the system was somewhat changed in 1858, and the stamp duty on the Passport was reduced from 5s. to 6d., with a charge for its issue of Is. 6d. Since 1858 several of the Continental States have either abolished altogether the system, or relaxed it in favour of British subjects. Į 560 3 1 PASSPORTS. General Regulations. The following general regulations respecting Passports were issued by the Foreign Office, on 7th July, 1876, and continue in force: I. APPLICATIONS for Foreign Office Passports must be made in writing, and inclosed in a cover addressed to "The Chief Clerk, Foreign Office, London," with the word “PASSPORT” conspicuously written on the cover. 2. The charge on the issue of a Passport, whatever number of persons may be named in it, is 2s. If the applicant reside in the country, and if it is desired that the Passport should be sent by post, that sum must be. forwarded with the application for the Passport by a Post Office order, made payable at the Post Office, Charing Cross, London, to the Chief Clerk of the Foreign Office, Francis B. Alston, Esq. Postage stamps will not be received in payment. 3. Foreign Office Passports are granted only to British- born subjects, or to such foreigners as have become natu- ralized either by Act of Parliament or by a Certificate of Naturalization granted by the Secretary of State for the Home Department. When the party is a “Naturalized British subject," he will be so designated in his Passport; and if his Certificate of Naturalization be dated subse- quently to the 24th of August, 1850, and previously to the Ist of August, 1858, his Passport will be marked as good for one year only; or should the certificate be dated subse- quently to the 1st of August, 1858, his Passport will in that case be marked as good for six months only, except in cases where a license for a longer period of residence abroad has been granted by the Secretary of State for the Home Department: but this regulation will not preclude any person whom it affects from obtaining at the Foreign Office, at any future time, on his producing his old Passport, a fresh Passport in exchange for it for a further limited period, without being required to pay a fresh charge. A Foreign Office Passport granted to a British-born subject + PASSPORTS. 561 or to a Naturalized British subject" who has been natu- General ralized by Act of Parliament, or whose Certificate of Natu- Regulations, ralization is dated previously to the 24th of August, 1850, is not limited in point of time, but is available for any time, or for any number of journeys to the Continent. Aliens naturalized as British subjects under the "Naturalization Act, 1870" (33 Vict., c. 14), will also receive Passports unlimited in point of time, but subject to the qualification mentioned in the 7th clause of the Act. 4. Passports are granted to all persons either known to the Secretary of State or recommended to him by some person who is known to him; or upon the application of any Banking Firm established in London or in any part of the United Kingdom; or upon the production of a Certifi- cate of Identity (see subjoined Form) signed by any Mayor, Magistrate, Justice of the Peace, Minister of Religion, Physician, Surgeon, Solicitor, or Notary, resident in the United Kingdom; in certain cases, the production of a Certificate of Birth may be demanded. 5. If the applicant for a Passport be a Naturalized British subject, his Certificate of Naturalization, with his signature subscribed to the oath printed on it, must be forwarded to the Foreign Office with the Certificate of Identity granted on his behalf; and his Certificate of Naturalization will be returned with the Passport to the person who may have granted the Certificate of Identity, in order that he may cause such Naturalized British subject to sign the Passport in his presence. The Agents at the outports are not authorized to grant passports to Naturalized British sub- jects, and such persons, if resident in London or in the suburbs, must apply personally for their Passports at the Foreign Office. 6. Passports are issued at the Foreign Office between the hours of II and 4 on the day following that on which the application for the Passport has been received at the Foreign Office. K K 1 1 ト ​General Regulations. 562 PASSPORTS. 7. A Passport cannot be issued by the Foreign Office, or by an Agent at an outport, on behalf of a person already abroad; such person, being a British-born subject, should apply for one to the nearest British Mission or Consulate. A Passport cannot be issued abroad to a Naturalized British subject unless naturalized under the Act of 1870, except for a direct journey to England, or in the case of a Colonial Naturalized subject, for a journey back to the Colony where he has been naturalized; neither can a Passport granted at the Foreign Office to a Naturalized British subject for a limited period be renewed by Her Majesty's Diplomatic or Consular Agents in Foreign Countries; but only at the Foreign Office. 8. The bearer of every Passport granted by the Foreign Office should sign his Passport as soon as he receives it; without such signature either the visa may be refused, or the validity of the passport questioned abroad. Travellers who may have any intention of visiting the Russian Empire at any time in the course of their travels are particularly and earnestly advised not to quit England without having had their Passports vises at the Russian Consulate in London, 17, Great Winchester Street, E.C. Persons pro- ceeding to Cuba, Portugal, or Turkey, should also have their Passports vises at the Spanish Consulate, 21, Billiter Street, E.C.; at the Portuguese Consulate, 8, St. Mary Axe; and at the Turkish Embassy, 1, Bryanston Square, respectively. Travellers about to proceed to any other country need not obtain the visa of the Diplomatic or Consular Agents of such country, resident in the United Kingdom. N. B.-Although British subjects are now free to enter Belgium, France, Germany, Holland, Italy, Denmark, Sweden, and Norway without Passports, and the rules about Passports have been virtually relaxed in other countries, nevertheless, British subjects about to visit the Continent are recommended not to omit to provide themselves with Passports, for even in those countries where they are no longer obligatory, they are found to be convenient, as offering a ready means of identification, and more particularly when letters have to be claimed at a poste restante. } PASSPORTS. 563 MODEL FORM of Certificate of Identity to be written out General on a separate sheet, and signed by the person giving it; Regulations. as also by the person in whose behalf it is granted. (Date of Place and Day of the Month.) The Undersigned, Mayor of (Magistrate, Justice of the Peace, Minister, Physician, Surgeon, Solicitor, or Notary, as the case may be), residing at hereby certifies that A. B. (Christian and surname to be written at length), whose a British subject, signature is written at foot, is a naturalized British subject, to proceed to requires a Passport to enable him and to travel on the Continent (accompanied, as the case may be, by his wife and children, with their tutor, named C. D. (Christian and surname to be written at a British subject, length), and a naturalized British subject, and maid servant [or servants], and governess, man servant [or servants], named E. F., a British subject [or subjects], and a courier, named G. H., a naturalized British subject.) (Seal.) (Signed) (With the usual Signature.) Signature of the above-named Banker. If application be made through a Foreign Office Passport Application Agent, the above form has to be used; but these agencies through are, we believe, being gradually withdrawn, and the application is now very generally effected through the banker, the applicant merely giving his name and other necessary particulars, which are transmitted by the country banker to his London agents, who in return duly obtain and forward him the passport from the Foreign Office. In applying to the Foreign Office the banker addresses Her Majesty's Secretary of State for Foreign Affairs as follows, the secretary being a nobleman :- MY LORD, (Place and Date). We beg that your lordship will authorise the grant of a passport for travelling on the Continent (Spain or ļ J 564 Application through Banker. Special Official Instructions. PASSPORTS. elsewhere), to A. B., a British subject (or C. D., a naturalized British subject), residing at ...., accompanied by (as the case may be) .. We have the honour to be, my lord, Your lordship's most obedient and humble servants, And the following special official instructions should receive his attention :- 1. The application for a Foreign Office Passport should, for the sake of official convenience, be made on a half- sheet of paper, and be folded in three parts; and it should be either delivered at the Foreign Office, or posted in a stamped cover sufficiently early to ensure its being delivered before six o'clock in the afternoon. 2. The cover enclosing the application must be sealed with the seal of the firm, and addressed to Her Majesty's Secretary of State, with the word "Passport" conspicuously written upon it. 3. Separate applications are necessary when separate Passports are required; but any number of applications may be enclosed in the same cover. 4. The name of any particular country or place to which the traveller is proceeding, with the view of residing perma- nently or for any length of time therein, should be speci- fically mentioned in the application, but when a Passport for travelling on the Continent generally is required, then that object should be so stated. 5. The application must state the name or names to be inserted in the Passport; in the case, however, of a gentle- man travelling with his wife and family, it is only necessary to give the name or title of the wife when it differs from the name or title of the husband; the number of sons and daughters respectively, and the number of the women servants; but the name of each man-servant (who must be a British subject) must be given in full, in order that it may be inserted in the Passport. 6. Servants and others deputed to call at the Foreign. PASSPORTS. 565 Official Office for Passports previously applied for, should attend Special at the office as soon after eleven o'clock as possible; and Instructions. all such attendants must present to the Passport Clerk a memorandum, stating the name of the person for whom the Passport is required, and the name of the parties who applied for it; but when the person requiring a Passport is a naturalized British subject, such person must himself attend at the office with his certificate of naturalization, and must there sign his Passport in the presence of the clerk. 7. Bankers are requested to refrain from sending with their applications any letters which they may have received from their correspondents soliciting their intervention to procure passports; and they are further requested to assist in making it generally known that it is particularly desired that every person should abstain from forwarding with his banker's application any explanatory letter or paper from himself. The application itself must specify every particular required to be inserted in the Passport. 8. Parties recommending persons for Foreign Office Pass- ports will be considered as having thereby undertaken to vouch for their general character, entitling them to the protection of the British Government; and, accordingly, if well-founded suspicion shall ever arise that any party has, through laxity of practice or principle, been the means of obtaining a Passport for an objectionable individual, no application from such party will subsequently be attended to at the Foreign Office. With reference to Russia it is of consequence, as we Russia. have seen, that the visa of the Russian Consulate in London should be obtained to the Passport, but personal The Passport, having attendance for this is not necessary. the holder's signature, may be forwarded by post in a registered letter, which should also contain the visa fee of two shillings, and an addressed stamped envelope to be used in returning the Passport, this being generally done on the third or fourth day after. Should the holder intend to reside for some time in the country a billet of residence must 1 566 PASSPORTS. Russia. Belgium. Continent generally. Exhibition of be obtained from the civil governor of the place, this costing from about four to.ten rubles, according to the rank of the applicant. Books are only admitted after receiving the approval of a committee of censure. On leaving Russia the holder's passport must be vised, and this being done, a passport for departure is given to him, no previous adver- tisement of his intention to leave being now necessary. Recently, with reference to Belgium, Her Majesty's Minister at Brussels intimated his opinion that it would be desirable that all British subjects intending to establish themselves or take up their residence in Belgium should provide themselves with Passports before leaving England; and that, in view of the determination of the Belgian police to enforce strictly existing regulations respecting hotels and lodging houses, persons travelling through the country would escape inconvenience by adopting the same precaution. Indeed, in travelling on the Continent, Passports are always more or less useful, as they are often required for in- spection, serve as means of identification, secure readier access to public buildings, museums, &c., and are convenient, as observed, ante p. 562, in claiming letters at a poste restante. For better preservation they should be kept in a case, which may be had for two or three shillings, or be bound in a pocket-book, containing blank leaves to receive the requisite official signatures or visas. Passports become illegible or soiled from age, or damaged, should be ex- changed for new Passports. A permit is sometimes necessary to be procured on leaving a foreign seaport, but this is at once given on the Passport being exhibited and proving to be in proper form. By s. 3, 6 and 7 W. IV., c. II, being an "Act for the Passports in Registration of Aliens," it is enacted that every alien England. from foreign parts shall, besides making certain declarations, "present and show to the Chief Officer of Customs at the port of debarkation any Passport he may have in his possession." Though still in force, we presume, however, that this statute is not now much in use. 1 PART XII. ADDENDA TO VOLUME I. I 3 PAGE 9-Cheques drawn by Guardians acting as a Poor Law Rural Sanitary Authority are, it would seem, not exempt Unions. from stamp duty. PAGE 18.-An executor trading as an executor, is Executors, personally liable, the remedy of the creditors of the Trading. business being by action against him on his contract. "An executor," observes Bacon, V.C., "carrying on the testator's business is liable for all the contracts he enters into, and probably has the right to say that that portion of the testator's estate which is being employed in the business shall not be administered by the Court of Chancery. An executor going beyond the limit of his trust estate, contracts a debt which can be proved in his bankruptcy. There is no doubt as to the principles laid down in ex parte Richardson, 3 Madd., 138; and ex parte Garland, 10 Ves., 120. It is clear that the Court will give effect to a trust created by a testator, and will keep apart the assets directed to be used for that purpose. There is not only a personal remedy against the executors, and, if that fails, a right to go against the trust estate (and in this case that right would have arisen 4 Y } Executors, Trading. Married Woman. Executrix. Infants Trading. 568 ADDENDA TO VOL. I. if an action had been previously brought); but what the plaintiff is now entitled to is to be paid by the persons with whom he has contracted." Owen v. Delamere, 10, II December, 1872; L.R. 15 Eq. 134, 21 W.R. 218. If the testator's business be a partnership one, and the executor acts in accordance with the provisions of partner- ship articles by which the testator's capital is retained in the business, and profits are paid upon terms which leave no discretion to the executor, he would not become personally liable for the acts of the partnership; in fact, his personal liability depending apparently upon whether the business is carried on jointly by him with the surviving partners, or by the latter alone. Where a married woman was appointed by the will of her mother sole executrix and sole legatee to her separate use, and she had been for seventeeen years separated from her husband, who opposed an application for a grant of probate to her on the ground that a married woman had no right to undertake the office without the consent of her husband, who is liable for all her acts done in that capacity, quoting Williams on Executors, 8th ed. 236, 1844; and Pemberton v. Chapman, 6 W.R. 769, E.B. & E. 1056. But, as he had no objection to a grant being made to his wife's attorney, Hannen, P. made a grant under section 73 of the Probate Act, 1857, 20 and 21 Vict., c. 77, of letters of administration, with the will annexed, to the attorney. Quære: Whether a married woman is entitled to a grant of probate without her husband's consent. Clerke v. Clerke, Prob. Div., 22nd March, 1881; 29 W.R. 823. But see post as to the recent change in the law. PAGE 23.-INFANTS TRADING. It is of importance to note that infants or minors cannot be held responsible as traders. That though they may by law trade, they are not liable to pay trade debts. And as by virtue of the Relief Act, 1874, an infant cannot have any trade creditors * ADDENDA TO VOL. I. 569 amongst whom his property ought by law to be divided Infants Trading. within the meaning of section 12 of the Debtors' Act, 1869, he cannot therefore be convicted under that section of feloniously, within four months before the presentation of a bankruptcy petition against him, taking such property with him out of England. Reg. v. Wilson, C. C. R., 22nd November, 1879, L. R. 5 Q. B. D. 28, 28 W. R., 307, in which case the prisoner had traded in Hull as a Baltic merchant. At the time of the adjudication of bankruptcy, and when he contracted the debts which had been proved against his estate, he was a minor, and it was contended on his behalf that by reason of his infancy the proceedings in bankruptcy were void; that he had not and could not have any creditors within the meaning of the 12th section. of the Debtors' Act, 1869, amongst whom the property which he took away with him ought by law to be or to have been divided, inasmuch as since the Infants' Relief Act, 1874, contracts by infants, except for necessaries, are void; and that the prisoner was never liable at law or in equity for the debts contracted during his infancy, and could not have creditors in respect of them. The jury, however, convicted the prisoner, and the question reserved for the court was whether under the circumstances stated the prisoner ought to have been convicted. The court (Cockburn, C.J., Huddleston, B. Lindley, Manisty, and Hawkins, J. J.) quashed the conviction. The Chief Judge in Bankruptcy's interpretation of the Infants' Relief Act is, however, different. See his decisions in the cases ex parte Lynch, in re Lynch, 7th Feb., 1876; and ex parte Jones, re Jones, 9th May, 1881, where he held that an infant trader may be made a bankrupt, observing in the former case that "the object of the Infants' Relief Act was to protect young persons, not from the conse- quences of trading, but from extravagant debts incurred. for unnecessary articles, such as jewellery." By the Court of Appeal, consisting of Jessel, M.R., and ་ Infants Trading. Married Women. Rights of Wife. 570 ADDENDA TO VOL. I. Baggallay, and Lush, L.J.J., the decision in ex parte Jones. was reversed, 23rd June, 1881, the Master of the Rolls, moreover, observing, in the course of his judgment, that he entirely dissented from the decision in ex parte Lynch, which case must be considered as overruled; that he could not agree with any of the propositions laid down in it, and that the Infants' Relief Act of 1874 was general, and could not be restricted so as not to apply to trade debts. If persons chose to trust an infant they must take their chance of being paid. Lord Justices Baggallay and Lush also expressed their disapproval of the decision in ex parte Lynch, and the latter learned judge observed that the decision of the Court of Criminal Appeal in Reg. v. Wilson was based on the same ground as the present decision. And in Roche v. Brown, Q.B.D., 23rd January, 1882, before Denman, J., and a common jury, the action was on a bill of exchange for £55. 2s., accepted by the defendant, who simply pleaded infancy. The plaintiff was a book- seller in London, and the defendant now carried on business as a "general merchant" in Hull. The parties had previously had some transactions, and in October, 1880, the defendant, by letter, ordered a further supply of books amounting in the whole to £62. 13s. In January, 1881, three days before he came of age, the defendant gave the acceptance sued on in payment of his account, but it was not met. It was alleged on behalf of the defendant that he had only put the plea of infancy on the record after the plaintiff's solicitors had refused to give him time for payment. The Judge, in summing up, said that as there was evidence of infancy, the only question for the jury would be whether the books or any of them were necessaries." A verdict was found for the defendant. PAGE 38.-RIGHTS OF WIFE.-A separate business may be carried on by the wife while residing with her husband, but if he takes such a part in it as to make himself person- ally liable, the business will not under the act be considered { ADDENDA TO VOL. I. 571 Women. If Rights of Wife. as carried on separately from the husband. Laporte v. Married Cosstick, 10th November, 1874; Q. B. 23 W. R., 131. stock-in-trade be vested in trustees to enable the wife to carry on the business, she does so as their agent, and they would appear both at law and in equity to be liable for her debts. In a question relating to separate estate and the covenants. undertaken in a marriage settlement, where the latter recited that it was agreed that all real and personal estate which during the marriage should devolve upon or vest in the wife or the husband in her right, should be settled on the trusts of the settlement; and it was witnessed that it was agreed and declared between and by the parties thereto, and the husband did thereby covenant that if during the marriage any real or personal estate should descend and devolve upon or vest in the wife or the husband in her right, the husband would make and concur in making all such conveyances and assurances as would effectually vest the same in the trustees on the trusts of the settlement; and after the marriage the wife became entitled to property for her separate use, it was held by the Court of Appeal, reversing the judgment of Fry, J., 19th May, 1881, that the wife's separate estate was not bound by the covenant, Jessel, M.R., stating that the case, notwithstanding the recital, was the same as Ramsden v. Smith, 2 Drew, 298, 2 W. R., 435, the rule being that the recital does not restrain the operative part when the operative part is unambiguous, "and, in my opinion," he added, "this covenant is perfectly clear. Whose covenant is it? It is the husband's when 'it is agreed and declared between and by the parties to these presents' that one of the parties will do something, it is not a covenant by all the parties, but only a covenant by the one with the others. If, therefore, we find no act to be done except by one party, it is a covenant by the one with the others. Here what is to be done is to be done by the husband only, 3 3 1 Married Women. Rights of Wife. Absence, &c., of Trustee. Lunacy of Trustee. 572 ADDENDA TO VOL. I. Therefore it is the covenant of the husband alone. Must it not, therefore, be something he can do? It cannot be that he is to convey property over which he has no control. He cannot covenant to coerce his wife so as to control her separate estate. If the property vests in him by law, or if he has a disposition by law, he is to assign it; if it does not vest in him absolutely, he is to procure a conveyance to be made. But it cannot affect property as to which he has no control whatever. As I have said, you cannot go back to the recital, but if you could, it does not help you much. The lady was an infant. Does the recital mean more than that the covenant hereafter contained is to be inserted? The appeal must be allowed." Dawes v. Tredwell, from Chan. Div. 29th June, 1881, 29 W. R., 793. PAGE 48. And in the case of a trustee become incap- able of acting, from permanent residence abroad, or through old age and infirmity, the court has power to appoint a new trustee in his place. In re Bignold's Trusts, 7 L. R. Ch. 223. In re Lemann's Trusts, Ch. Div. 27th Jan., 1883, 31 W. R.,520. Where one of three trustees had become lunatic, and a petition was presented in lunacy and in chancery for the discharge of the lunatic and re-appointment of the two continuing trustees in place of the three, it was held that the original number of trustees must be filled up. In re Colyer, 50 L. J., Ch. 79; 43 L. T., 454. And in the case of In re Nash, 16 L. R., Ch. D., 503, it was held that where one of several trustees had become lunatic, a new trustee must be appointed in the place of the lunatic, before making a vesting order under the Trustee Act, 1850, 13 and 14 Vict., c. 60, s. 5; but in In re Watson, Lun., 3rd Dec., 1881, 30 W. R., 554, where a sum of stock vested in three trustees, one of whom became lunatic, had become divisible, it was held that the proper course was to present a petition, intituled in lunacy only, asking for an order vesting in the other two trustees the right to transfer the stock, Jessel, M.R., observing "In my opinion the 5th ADDENDA TO VOL. I. 573 Trustee. section of the Trustee Act, 1850, clearly gives jurisdiction Lunacy of to vest the right to transfer the stock in the two other trustees, and where there is no object to be attained by appointing a new trustee, it only causes useless expense to appoint one. The present case is plainly within the terms of the section, and, notwithstanding In re Nash, I think that an order ought to be made vesting the right to transfer the stock in the two trustees who are not under disability. It is clearly unnecessary that such an order should be made in the Chancery Division as well as in lunacy, and to make it in both would cause useless expense. The petition, there- fore, may be amended by striking out the title in the Chancery Division." Baggallay, L.J., concurred. Trust. PAGE 49.-It is the recognised doctrine of equity that as Breach of between a trustee and his cestui que trust, no time will operate as a bar to the equitable claim of the latter in respect of a breach of trust, and the rule is well established that a cestui que trust who, knowing that his trustee had committed a breach of trust, obtained from him a part only of that to which he was entitled, did not thereby waive his right to such further relief as he might be able to obtain, unless there was something in the surrounding circum- stances from which an intention so to do could be clearly inferred. Harston v. Tenison, C. A., 16th January, 1882, 26 S. J., 183, in which the cases of May v. Selby, I Y. and C. Ch. 235; and Hovenden v. Lord Annesley, 2 Sch. and Lef. 607, were referred to and commented on. Securities. PAGE 58.-SECURITIES.-Where there are several distinct Proof. securities, instead of inserting the value of each as in the above form, it is not unusual to give merely the descriptions, adding "all of which, I hereby value at £ " naming only a total value, and this perhaps is admissible from the general terms of the act and rules. Proof. Under the old practice a creditor swearing he had no Amending security was not allowed to amend his proof on it turning out that he had security. The rule, however, is now so far & 1 Amending Proof. Judgment Debt. 1 Bills. Debt Founded on Felony. 574 ADDENDA TO VOL. I. relaxed that, in cases of inadvertency or mistake, the Court will allow proofs to be amended. Ex parte Nicholson's Discount Company Limited In re Guerrier, 3rd November, 1881; 26 S.J., 27. The Court may enquire as to how a judgment was obtained. A plaintiff had brought his action for purposes of extortion, and obtained judgment by compromise, owing to the defendant's fear of exposure. On the plaintiff tendering a proof for the amount of his judgment, the Court went behind the judgment, enquired into circum- stances, and rejected the proof. Callisher v. Bischoffsheim, 18 W.R., 1137, 5 L.R.Q. B., 449, and Ockford v. Barelli, 20 W.R., 116, questioned. Decision of Bacon, C.J., reversed. Ex parte Banner in re Blythe, C.A., 7th April, 1881; 30 W.R., 24, PAGE 61.—Of the proof of bills acquired after the acceptor's bankruptcy, Byles, quoting a number of authorities, states, 13 ed. 458, that "a holder who has bought up the notes or acceptances of the bankrupt after the bankruptcy, will be admitted to prove, provided that, at the time of the bankruptcy, they were in the hand of a person entitled to prove." And of acts of bankruptcy in respect of bills, he adds that, "if a trader deny himself to the holder of a bill on the morning of the day when it is! payable, though the trader pay it the same day, that is an act of bankruptcy. Colkett v. Freeman, 2 T.R., 59; and see Bleasby v. Crossley, 2 C. & P., 213. A bill of exchange is a chattel, the fraudulent transfer of which was an act of bankruptcy within the 6 Geo. IV., c. 16, s. 3. Cumming v. Bailey, 6 Bing., 363, 4 Moo., and P., 36, S.C., and within the 12 and 13 Vict., c. 106, s. 67; and a fraudulent transfer of a bill of exchange is also clearly an act of bankruptcy within the recent act, 32 and 33 Vict., c. 71, s. 6.” A client had been allowed by his bankers to overdraw his account against bills lodged, which afterwards turned out forgeries, but were replaced by genuine ones, and } } ADDENDA TO VOL. I. 575 1 he was adjudged a bankrupt some months afterwards. Debt Founded on Felony. In the bankruptcy the bankers proved for their balance, stating in their affidavit of proof that they held the bills as security, but they did not claim to prove on them. The trustee rejected the proof on the ground that the claim arose out of a felony, and that the bankers on the exchange of the bills had entered into an agreement not to prosecute the bankrupt for felony, but the Court of Appeal held that the proof ought to be admitted, that it arose out of an ordinary contract for a loan, and even if the alleged corrupt agreement had been entered into, it could not destroy the antecedent contract to repay the loan. Ex parte Leslie. In re Guerrier, 16th Feb., 1882, 30 W. R., 344, 20 L. R., Ch. D. 131, 51 L. J., Ch. 689, 46 L. T., 548. Felon. A convict is liable to bankruptcy like any other Convicted person. Ex parte Graves. In re Harris, C. A., 10th Nov., 1881, reversing decision of Mr. Registrar Brougham; Lush, L.J., saying that the Felony Act 1870, 33 and 34 Vict. c. 23, leaves a convict for felony in possession of his property, just as the common law left a convict for misdemeanour in possession of his property. The obvious meaning of the 8th section is that he shall not make away with it. Power is reserved to the Crown to intervene and appoint an administrator, against whom an action may be brought. Why, therefore, should there not be a summons in bankruptcy? The convict is just as liable after conviction to pay his debts as he was before. There is no reason why he should not be liable to the same law in all respects. Proof on tion Bill } The holder of an accommodation bill deposited as security for a debt less in amount, may prove for the Accommoda- full amount of the bill, but cannot receive dividends deposited as beyond the amount of the debt. Ex parte Griffin, ex Security. parte Newton, in re Bunyard, Court of Appeal, 9th December, 1880, reversing judgment of Bacon, C.J., who held that the right of proof was limited to only the amount of the debt secured by the deposit. } 1 Guarantor. Custom of Bill Brokers. 576 ADDENDA TO VOL. I. It is the custom of the majority of the London bill brokers not to indorse the bills they discount with their bankers, but to give a letter of guarantee, by which, in consideration of the bankers discounting for them any bills they may approve from time to time, the brokers guarantee the due payment of the bills as they respectively fall due. The trustee in liquidation of a bill broker who, having so discounted bills, has had to pay the amount due on the bills, may prove in the liquidation of the acceptors for the amount paid, and it makes no difference that the bills paid are accommodation bills. Ex parte Bishop, in re Fox, L.R. 15 Ch., D. 400; 50 L.J., Ch. 18; 43 L.T., 165. As was remarked by James, L.J., 24 S. J., 652, 26th June, 1880, the transaction was in substance the same as if both drawers and acceptors had gone together to the bankers and asked them to discount the bills. It must have been perfectly well known to both that the brokers could discount the bills only by means of advances made to them by their bankers; that they would re-discount the bills, and would have to make themselves liable to the bankers. The well-established practice of bill brokers not to indorse the bills which they re-discounted with their bankers, but to give the bankers a general guarantee that they would be liable upon the bills to the bankers as if they had indorsed them, must have been well known to the So far as he gentlemen who manufactured these bills. was aware, there was no authority, and he could see no principle, for holding that the liability created by such a guarantee differed from that which was created by the indorsement of a bill. No special authority was ever given by the acceptor of a bill to the holder to indorse it. His lordship was of opinion that by the making of a negotiable instrument, a sufficient authority was given to the brokers to render themselves liable in respect of the bills, and that they paid the amount which they had paid to the bankers as much under compulsion as if they had indorsed the { ADDENDA TO VOL. I. 577 Custom of bills in the ordinary way. Indeed, it might be called a Guarantor. mere accident that the brokers did not, by the guarantee, Bill Brokers. confer on the bankers a formal authority to indorse their names on the bills. If they had done so there would have been no dispute about the right to prove. Cotton, L.J., said that no doubt the payment of a bill of exchange under a compulsion, undertaken without the express or implied request of the person primarily liable, would not give a right to prove against that person's estate. But why was it that the indorser of a bill of exchange was under a compulsion, authorised by the acceptor, to pay it? Because the acceptor impliedly authorised any holder to indorse the bills, and to transfer his rights against the acceptor. In the present case the drawers of the bills must be taken to have been acting on behalf of the acceptors, as well as of themselves, and to have been authorised by the acceptors to deal with the bills in the ordinary way of business, for the purpose of getting them discounted. They acted within that authority in going to the brokers to get the bills discounted; and that conferred on the brokers an authority to deal with the bills according to the ordinary course of business in the city of London, and consequently to guarantee the payment of the bills to the bankers. The payment, therefore, was made under a compulsion, which was undertaken under the implied authority of the acceptors, and the brokers were entitled to prove against the estate of the acceptors for what they had paid. Thesiger, L.J., was also of opinion that an original authority from the acceptors to the brokers to give the guarantee was to be implied from the circumstances. And their lordships subsequently admitted proof for interest from the time of payment to the commencement of the liquidation, Cotton, L.J., observing that if there was no authority on the point there might be some doubt whether interest was payable, but that the cases of Petre v. Dun- combe, 2 L. M. and P., 107, Hitchman v. Stewart, 3 Drew, L L 1 1 } 1 Surety. 578 ADDENDA TO VOL. I. 271, and in re Swan's estate, 4 Ir. Rep. Eq. 209, were authorities for allowing interest. PAGE 64.—A debtor and surety gave to the bankers of the former a joint and several bond for £1,000 to secure the current balance of the debtor's account, the liability of the surety being limited to £500. The bond contained the usual proviso, that, in the event of the bankruptcy of the debtor, the dividends from his estate should not, so far as concerned the surety, go in discharge of his liability, but that the bank should be entitled to recover on the bond to the full extent of £500, or so much thereof as should, together with the dividends, amount to 20s. in the pound on the balance due by the debtor to the bank. The debtor filed a liquidation petition, and the bank proved for the whole balance due to them. Afterwards the surety paid the bank £500, and he then proved in the liquidation for that amount. Held by the Court of Appeal, reversing decision of Bacon, C.J., that the bank were entitled to retain their proof for the full amount, James, L.J., observing: "Independently of the proviso, it seems to me the result would be the same. But the proviso is perfectly clear. To use the expression of Lord Justice Knight Bruce, in ex parte Hope, 3 M. D. and D., 723, 'the sureties who paid a portion of the debt would or might have been entitled to the dividends on that portion if there had been no such proviso; by the proviso they, in effect, sell their right in these dividends to the creditor. So, in the present case, the surety has chosen to contract himself out of that possible equity in the plainest and most distinct terms, and, as Lord Justice Knight Bruce said, he can have no right to intercept any dividend which would otherwise be payable to the principal creditor." Ex parte National Provincial Bank of England in re Rees. Court of Appeal, 7th April, 1881, 17 L. R., Ch. D. 98, 44 L. T., 325. A surety has no claim against his co-sureties until he has paid more than his own proportion of the debt due to the ADDENDA TO VOL. I. 579 principal creditor. Davies v. Humphreys, 6 M. and W., Surety. 153, ex parte Giffard, 6 Ves., 805. A surety or sureties deriving benefit from securities received from their principal, must allow co-sureties to participate in the benefit. Steel v. Dickson, reported in BANKERS' MAGAZINE, June, 1881, v. 41, p. 479. Omission of PAGE 68.—If a compounding debtor includes in his state- Partial ment of liabilities one debt, and omits another due to the Debt. same creditor, the latter is not bound by the composition in respect of the debt stated. Macdonald v. Chesney, 50 L. J., Q. B., 87. Preference. PAGE 69.—And see ex parte Griffith before the Court Fraudulent of Appeal, 15th February, 1883, 27 S. J., 295, in which case Bowen, L.J., said that he "would like to pause in the current of judicial decisions for the last thirteen years, and to take note of the position in which the Court was placed. As everyone was aware, there was for many years no statutory enactment as to fraudulent preference. But from the time of Lord Mansfield the Courts had considered certain transactions a fraud on the bankruptcy law. After many years the Bankruptcy Act of 1869 explained what was meant by a fraudulent preference, and it used very definite language. The course of subsequent judicial deci- sions had been very unfortunate, for it had a tendency to lead the Courts away from the true question. The first question raised was, whether the act had altered the old law, and the Courts came to the conclusion that it had not. Then began what might be called the old metaphysical exploration, and the Courts had been drawn into questions of pressure and volition, and in the present case there had been a discussion of what was meant by a motive of a motive. He thought it was the wiser policy to go back, as he would do, in a humble spirit to the words of the statute. He thought the assignment in the present case was made with a view to prefer Griffith; he thought it was made with THE view to prefer him. But, as the Master of the { Fraudulent Preference. Debt Incurred by Fraud. Payment by Liquidating Debtor. Cash Account. Notice of 580 ADDENDA TO VOL. I. Rolls had said, this was not enough, and in order to give the coup de grace to it, he, sitting as a juryman, thought the assignment was made with THE SOLE view of giving Griffith a preference.” PAGE 71.—A liquidating debtor may, immediately after his discharge, and before the liquidation is closed, be proceeded against for the full amount of a debt incurred by fraud, though the debt has been proved in the liquidation. Decision of Mr. Registrar Murray, acting as Chief Judge, reversed. Ex parte Hemming, In re Chatterton, Court of Appeal, 13, 27th November, 1879, 28 W. R., 218. A liquidating debtor paid into a bank, three days after filing his petition, cheques, a portion of the amount of which was at his request placed to the account of one of his creditors, and the balance paid in cash to himself. Neither the bankers nor the creditor had notice of the petition. Held by Bacon, C.J., that this was a dealing within sec. 94, sub-sec. 3 of the Bankruptcy Act, 1869, 32 and 33 Vict., c. 71, and protected as against the trustee in liquidation. Ex parte Guardians of Atcham Union in re Dicken, 13th March, 1882, 30 W. R., 644, overruling decision of the Registrar of the Shrewsbury County Court. Under sec. 19 of the act, supra, the court has power in extreme cases to order a bankrupt to file a cash account of his receipts and payments. Ex parte Moir, in re Moir, C. A., 11th May, 1882, 30 W. R., 738. Ex parte Crawford, 21 W. R., 509, approved. A banker had, on the 18th June, incidentally received Bankruptcy. notice of a client's bankruptcy from a solicitor's clerk, and he a day or two afterwards saw the client, who stated that the petition had been settled. In the following August the client was adjudicated a bankrupt upon another petition founded upon another act of bankruptcy committed before the act alleged in the petition of which the banker had been told. The Court of Appeal held that the banker had sufficient notice of an act of bankruptcy on 18th June, and ADDENDA TO VOL. I. 581 that he must account to the trustee for all moneys of the Notice of Bankruptcy. bankrupt which they had received since that date, Jessel, M.R., observing that he was not prepared to decide now what kind of merely casual conversation would be a suffi- cient notice to a man of business, but that in the present case the notice was treated by the banker as a matter of business, and he thought it so important that he interro- gated the bankrupt on the subject. It was given as a notice, and accepted as a notice, and after the decision in Lucas v. Dicken, 6 L. R., Q. B. D., 84, it must be held sufficient. Ex parte Banks In re Salisbury, C. A., 17th November, 1881. Where purchasers paid part of the purchase money of property by a post-dated cheque, and had, before date of the cheque, notice of the vendor's bankruptcy, but did not stop the cheque, they were, by Bacon, C.J., held liable to pay the money over again to the trustee. Ex parte Armstead In re Palmer, 21st November, 1881, 30 W. R. I24. But this decision was reversed by the Court of Appeal, 19th January, 1882, ex parte Richdale and Tomlinson (who were the drawers of the cheque), in re Palmer, 30 W. R., 262; 19 L. R., Ch. D., 116.* 409; 46 L. T., * Jessel, M.R., in delivering his judgment, said: "The case is a somewhat singular one, but it appears to me to be clearly met by the 3rd sub-section of the 94th section of the Bankruptcy Act. Át the time the cheque was given the act of bankruptcy had been committed, but the givers of the cheque had no notice of it. The giving of the post-dated cheque was a dealing with the bankrupt, made in good faith and for valuable consideration, before the order of adjudication, by persons not having notice of the act of bankruptcy; it was, therefore, a valid dealing protected by the 94th section. The dealing was the giving what in law is a bill of exchange for the balance of purchase- money due to the debtor. Is there any obligation upon a person who has, as it is commonly called, paid his debt by a bill of exchange (thought it is not a payment of the debt in law), to refuse to pay the bill if the payee becomes a bankrupt, or to direct the drawer not to pay it? I am not aware of any such obligation. If the giving of the cheque was a valid transaction, everything follows from it; the person ordered to pay pays, I see no reason why the drawers of the cheque should give notice to stop it. I never heard that the giver of a cheque for value was bound to stop it for the benefit of a third person. But we must consider what the result would be of imposing such an obligation. The stopper of the cheque would run the risk of its being in the hands of a bona fide holder for value-that is, the risk of being sued by such a holder for stopping his cheque, and of having to pay the costs of the action. } < 1 3 t Avoidance of Voluntary Settlements. 582 ADDENDA TO VOL. I. PAGE 72.-By section 91 it is enacted that any settle- ment of property made by a trader, not being a settlement made before and in consideration of marriage, or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration, shall, if the settler becomes bankrupt within two years after the date of such settlement, be void as against the trustee, and shall, if the settler becomes bankrupt at any subsequent time within ten years after the date of such settlement, unless the parties. claiming under such settlement can prove that the settler was, at the time of making the settlement, able to pay all his debts without the aid of the property comprised in such settlement, be void against the trustee. Any covenant or contract made by a trader, in consideration of marriage, for the future settlement upon or for his wife or children, of any money or property wherein he had not at the date of his marriage any estate or interest, whether vested or contingent, in possession or remainder, shall, upon his becoming bankrupt before such property or money has been actually transferred or paid, pursuant to such contract or covenant, be void against the trustee. "Settlement," for the purposes of this section of the act, includes any conveyance or transfer of property. Where a guarantor guaranteed the banking account of his son to the extent of £1000, and a few years afterwards voluntarily assigned his leaseholds, worth about £200 per or not. And it is suggested that he should run such a risk for the benefit of the creditors of a bankrupt. Indeed, that very state of circumstances seems to have happened here, for Alfred Palmer, the bankrupt's nephew, paid in the cheque to his own bankers on the day as on which it was dated and credited to his account. These bankers received payment from the appellants' bankers; and therefore, they having credited Alfred Palmer with the amount, were holders for value, though it does not appear whether his account was overdrawn If it was they could have sued upon the cheque. But I am quite satisfied to put it upon the ground that the original transaction, the giving of the cheque without notice of the act of bankruptcy, was a protected transaction, and that therefore the trustee of the bankrupt cannot claim." And Brett, L.J., in the course of his judgment observed, that he knew of no legal obligation by contract or by law upon a person who has once given a cheque to stop it, and that in the present case, if the appellants had stopped the cheque they would have made themselves liable to the indorsee's bankers, who were holders of the cheque for value. 1 } ADDENDA TO VOL. I. 583 annum, to another son in trust for himself for life, and after Avoidance of Voluntary his decease, in trust for that other son and a daughter for Settlements. their joint lives, and for the survivor absolutely, and the son guaranteed became, three years after the date of this settlement, bankrupt, paying 3s. in the pound, the Bank brought an action against the guarantor, and sought to set aside the settlement. The guarantor died, his estate being proved under £200. Held that the settlement was void under 13 Elizabeth, c. 5, being voluntary, though carrying liability to rent and covenants, and being, in the circumstances, calculated to defeat or delay the creditors. Price v. Jenkins, 5 L. R., Ch. D., 619, commented on. In re Ridler, Ridler v. Ridler, Court of Appeal, 9th November, 1882, 31 W. R., 93, reversing decision of Bacon, V.C. Account. PAGE 80.-The member of a firm deposited with his Proof. Separate and bank security against his own and the firm's advances. Joint Account. Each partner in the firm having gone into liquidation Suspense the bank realized the security, deducted the private debt of the depositor, from the proceeds of sale, and carried the balance to suspense account. Held that the bank could prove for their whole debt against the joint estate of the partners. Carrying to suspense account signifies that the right to an amount is not yet determined. Ex parte Watson in re J. B. Walker & Co., before Bacon, C.J., 26th April, 1880, 28 W. R., 632. Joint Security. Debt. On dissolution of a partnership between B. and T., B. Proof. leased his moiety of the joint property, a mill, to T., who Separate continued the business in his own name. The two joined in depositing the lease of the mill to secure T.'s banking account to the amount of £15,000. T. afterwards went into liquidation and the bank claimed to prove for £29,000, balance of his account, without valuing the security, on the ground that it was a joint security, but it was held they were not entitled to prove without first deducting the value of T.'s half of the security. Jessel, M.R., said that a creditor could not be allowed to prove against the estate } } + Proof. Joint Security. Separate Debt. Proof. Interest. 584 ADDENDA TO VOL. I. of his bankrupt debtor, and at the same time retain a security for the debt, which if it were surrendered would augment that estate. The question resolved itself into whether the security would if given up go to augment the estate. If the security was from a stranger it would not, if cancelled, go to augment the estate, and therefore it need not be given up. And the exception had been ex- tended, but never further, to the case of a creditor of a partnership who held security for his debt on the separate estate of one of the partners, and also to the case of a separate creditor of a partner, who held a security on the joint estate. Ex parte West Riding Union Bank in re Turner, 18th Nov., 1881, 19 L. R., Ch. D. 105, 45 L. T., 546. A creditor of partners in trade elected to prove against the separate estate of each partner instead of the joint estate. He received 10s. in the. pound from each estate, and claimed to retain the benefit of his proofs until he had received interest on his debt to the time of payment. The joint estate paid only Is. 6d. in the pound to the joint creditors. The claim was refused, the Court stating that when a creditor competed with other creditors he could not prove for interest accrued due after the adjudication, that if he held security his right was different, but that otherwise he could not have interest after the adjudication until all the joint and separate creditors had been paid 20s. in the pound. Ex parte Findlay & Co., re Alexander Collie & Co., C. A., 5th May, 1881. The cases re Joint Stock Discount Co., 21 L. T. N. S., 626; 5 L. R., Ch. Ap. 86; and re Humber Ironworks Co., 21 L. T. N. S., 626; 5 L. R., Ch. Ap. 88, distinguished. Holder's right The question as to the holder of a bill's right to securities to Securities deposited with an acceptor who has failed, or is insolvent, deposited with Acceptor, and is a difficult one, and has given rise to much discussion. deposited with The original and leading case on the point is ex parte person. Waring, 19 Ves., 345; and Byles, 465, 13 ed., 1879, in to Funds a third ADDENDA TO VOL. I. 585 to Securities deposited with to Funds considering the subject says that the general rule of law Holder's right established by recent decisions seems to be that when both the drawer and the acceptor of a bill become bankrupt, and Acceptor, and bills, securities, or funds have been remitted by the drawer deposited with a third person to the acceptor, and specifically appropriated to cover the acceptor's liability on his acceptance, the holder of the bill may avail himself of them, that they do not belong to the acceptor's general creditors, nor pass to his assignees or trustee in bankruptcy. And he adds, with reference to the holder's right to funds deposited with a third person, that where the client of a banker had lodged a sum of money with a bank to meet an acceptance, and the acceptor failed before its maturity, it was held that at law the drawer could not maintain an action against the banker, there having been no privity of contract between him and the Banker: Moore v. Bushell, 27 L. R., Exh. 3. See Farley v. Turner, 26 L. J., Chan. 710. And in a similar case the Vice-Chancellor followed the law, and held there was no equity in favour of the drawer. Hill v. Royds, 8 L. J., Eq. 290. The funds must be specifically appro- priated to that purpose, and no mere statement of the drawer can create any lien on funds in the drawee's hands. Thompson v. Simpson, 5 L. R., Ch. Ap., 659; 39 L. J., Ch. 857; Louisiana Bank v. Bank of New Orleans, 6 L. R., H. of L., 352.* * In 42 BANK. MAG., 639, is given the case of The Royal Bank of Scotland v. The Commercial Bank of Scotland and others, House of Lords, before the Lord Chancellor, and Lords Blackburn and Watson, 10th July, 1882, in these terms :-"This was an appeal from the Court of Session in Scotland. The case was argued some time ago, when time was taken for consideration. Their Lordships delivered judgment in favour of the respondents. The Lord Chancellor, in the course of his judgment, said :- This is an appeal in an action of multiplepoinding, arising out of two Scottish bankruptcies, the one of a person named Saunders, who failed in November, 1878, and the other of a person nained Ramsay, who failed in December of the same year. These two parties had dealings together, Ramsay sending raw materials (jute, flax, &c.) to Saunders' spinning works to be converted into yarn, under an agreement in writing, which provided that all material and yarn at Saunders' works should continue to be the sole property of Ramsay, subject to the lien of Saunders for whatever might from time to time be due to him, and that Saunders should give acceptances for a sum not exceeding three-fourths of the value of the raw material held by him on 1 A 2 1 + Hotel Keeper. Furniture on Hire. 586 ADDENDA TO VOL. I. Judicial notice is now taken of the custom to hire furniture. Ex parte Powell, In re Matthews, 24 W. R… 378. I L. R., Ch. D., 501, overruled on this point. A person giving credit to an hotel-keeper is not entitled to rely on the hotel keeper's apparent possession of the > C Ramsay's account, and should be entitled to a right of lien or retention of goods to a value sufficient to cover such acceptances.' At the time of each bankruptcy, Saunders was liable as acceptor, upon the footing of this agree- ment, on bills drawn by Ramsay to the amount of £16,000, and he held goods belonging to Ramsay (since sold for £4,025. 14s. 2d.) on which he had a right of lien or retention to indemnify him from that liability. The appellants are the holders of the £16,000 bills, and, as such, have proved, or have a right of proof, against both the insolvent estates. In the Court below they claimed to have the whole proceeds applied, in the first place, in payment of the bills, as far as they would extend, so as to reduce the amount of their proof against the two estates to about £12,000, instead of £16,000, relying for that purpose upon the English case 'Ex parte Waring,' 19 Ves., 345, and 2 Rose, 182. That claim was rejected by the Court of Session, from whose judgment the present appeal is brought. The rule laid down by Lord Eldon in Ex parte Waring, and confirmed by subsequent decisions of the English Courts, is now well established in England; but this cannot be a sufficient reason why your Lordships should also hold it to be the law of Scotland, unless it can be shown that its application to the circumstances of such a case as the present, in the manner for which the appellants contend, is required by those principles of equity which are common to the jurisprudence of both parts of the United Kingdom. The laws which govern the administration in bankruptcy_or insolvency are not in all respects the same in Scotland as in England. The rule in question has not, down to the present time, been received or known in Scotland, though it is nearly 70 years since Ex parte Waring' was decided. The Judges of the Court of Session, whose opinions are now under review, all think that, if such a rule were applied, under the circumstances of the present case, it would result in consequences not only not required by any principle of equity, but practically inequitable. After carefully considering the arguments which have been addressed to your Lordships, I am unable to differ from that conclusion. It is conceded (and it has always been so laid down by all the English authorities) that bill-holders cannot claim to have securities deposited with the acceptors by the drawers for the acceptors' indemnity, applied in payment of the bills, by virtue of any right or title of their own to the benefit of those securities. They can, at the utmost, only claim to come in under a jus tertii, availing themselves of the administration of the insolvent estates (in; which they have the ordinary locus standi of creditors), to ask that the securities, which would be assets of the one estate but for the lien and right of indemnification belonging to the other, but which cannot be realised until that lien and right of indemnification is discharged, may be so applied as to give effect to the contract between the drawers and the acceptors, in the way most conveniently practicable. If the securities were sufficient, or more than sufficient, to cover the whole amount of the acceptances, the acceptors would be fully indemnified by the application of those securities to the payment of the bills; and the drawers (or those representing their estate) might in that case be entitled to require that they should be so applied; while, on the other hand, they could not be entitled to reclaim any part of those securities, without (in that or some other way) fully indemnifying the acceptors. It may well be that, under such a state of circumstances, the appropriation of the securities according to the rule in 'Ex parte Waring' (both drawers and acceptors being insolvent) might be the most conveniently practicable way of giving effect to the contract between the drawers and the acceptors. This was, in fact, the state of circumstances which (so far as an opinion can be formed, either from the 1 ADDENDA TO VOL. I. 587 Furniture on furniture, therefore on the bankruptcy of the latter furniture Hotel Keeper. held by him under a hiring agreement, not registered as a Hire. bill of sale, was held not to be in his order and disposition, James, L.J., observing that he did not think an hotel-keeper ever obtains credit now on the assumption that the furniture in his hotel is his absolute property. Crawcour v. Salter, C. A., 9th May, 1881, 30 W. R., 21, 18 L. R., Ch. D., 30. But it is otherwise in the case of a private person, ex parte Brooks, C. A., 8th March, 1883, 27 S. J., 332. C report in 19 Vesey, or from that in 2 Rose) was directly in the contemplation of Lord Eldon, when his judgment in Ex parte Waring' was pronounced. To confer a benefit upon the bill-holders, who are no parties to the contract, at the expense of the acceptors, and so to deprive the acceptors, to any extent, of any part of the indemnity for which they have contracted (whether the drawers or their creditors are also benefited by that deviation from the contract or not), must be (as the Court of Session has considered it) inequit- able; nor could it be reconciled, in my opinion, with the reasoning of Lord Eldon's judgment. It is true, as was stated by Lord Cranworth in Powles v. Hargreaves' (3 D. M. G., p. 453), that the order in 'Ex parte Waring, as drawn up, 'distinctly provided for the case of the short bills deposited either being equal or more than sufficient, or being insufficient; and expressly provided that, if insufficient, the parties holding the acceptances were to prove for the deficiency.' The authority of Lord Eldon in the English Courts of Equity and Bankruptcy was very great; and it is, therefore, in no way surprising that, after the lapse of nearly 40 years, the form of order drawn up to carry his judgment into effect should have been regarded as conclusive in a similar case, and should have been (perhaps too readily) assumed to be con- sistent with the reasons assigned for that judgment. No man could entertain a more sincere respect than I have always done for the very eminent and learned judges who decided 'Powles v. Hargreaves,' and I assume, for the purposes of the present judgment, that the positive rule of administration, which has been accepted as law in England since the order in 'Ex parte Waring' was made, must be understood in accordance with the determination in Powles v. Hargreaves.' But, so far as it is a positive rule of administration, and not the necessary result of equitable principles, it cannot be held to be of force in Scotland merely because it is so in England. Of the reasons assigned by Lord Cranworth ('3 D. M. G.,' p. 453) to justify the extension of the rule to the case of a deficient security, I cannot but say that they are unsatis- factory to my mind, if applied to such a contract as that between Ramsay and Saunders in the present case; and, indeed, they appear to me to overlook the fact that, when the whole benefit of a deficient security is given to the bill-holder, the estate of the bankrupt acceptor may lose some part of the indemnity to which, by the contract, he is entitled. If, in the case before your lordships, the whole fund in medio were applied in the first instance towards payment of the bills held by the appellants, and the appellants were then admitted to prove against both the insolvent estates for the difference, viz., £12,000, the practical result would be to leave the respondents without any indemnity at all for the dividends which might be paid out of their estate on that £12,000. The result, on the other hand, of the decision of the Court of Session is to indemnify them to the full extent of the fund (as, under the contract, they have a right to be indemnified) for every shilling which their estate may pay on the bills. Suppose the estate of Saunders to pay a dividend 1 1 X Sale of Bankrupt's Property. 588 ADDENDA TO VOL. I. A trustee in bankruptcy cannot, even by auction, sell to his partner the bankrupt's property. Ex parte Moore In re Moore, 28th November, 1881, 30 W. R, 123, Bacon, C.J., observing that "there is a well-established rule of law that a trustee cannot sell to certain persons-to his son, for instance, nor to his partner." Where a policy for £550 on the life of the bankrupt was sold for £250 to two persons, one of whom was the trustee's son, under 21, and the other a nephew of the trustee's partner in business, and shortly after the agreement for sale had been entered into a creditor had offered to purchase the policy for £270, which being declined, he applied to the Court to rescind the contract, and to order a sale of the policy by public auction, his objections being that the sale had been made at an undervalue, and that it had not been made by public auction. The Registrar dismissed the application with costs. Upon appeal the Court set aside the sale, Lord Selborne, C., stating that many authorities had laid down emphatically, not only with regard to trustees generally, but with regard to assignees in bank- ruptcy in particular, that they could not exercise the power of 5s. in the pound, this, on £16,000, would be £4,000; and the trustee of that estate would have a right, according to judgment appealed for, to have the whole fund in medio (being, in round figures, £4,000) applied for their reimbursement. But, if the fund in medio were first applied in payment of the bill-holders, Saunders' estate would then pay on the remaining £12,000 (at 5s. in the pound) £3,000, without any indemnity at all. Can there be a doubt which of these results is the more equitable? The one violates, the other gives effect to, the contract. What right can the bill-holders have to ask that it should be violated for their benefit? What right could the trustee of Ramsay, the debtor primarily liable under the contract, have to ask for any appropriation of the securities, which would take away from Saunders' estate any part of the indemnity for which he contracted, and at the same time leave that estate liable on the greater part of the bills? With respect to the argu- ment from convenience, in some possible circumstances (as when the party secured might have no assets of his own, so as to pay any dividend, and yet might for some reason fail to get his discharge, or when he might have assets falling in by driblets, so as to pay repeated dividends at uncertain intervals, without exhausting the security fund), it is enough to say that a sufficient practical answer seems to me to be given to that argument in the opinion of one of my noble and learned friends, which I have had the advantage of seeing in print. It is impossible that mere inconvenience or delay in working out the security can make it necessary or just to infringe the contract in favour of persons who are strangers to it. I therefore move your lordships to dismiss this appeal, with costs. The other noble and learned lords having concurred, the appeal was dismissed, with costs." 1 ↓ ? ADDENDA TO VOL. I. 589 of sale given to them for the benefit of the creditors directly Sale of or indirectly for the benefit of themselves or of anyone so Property. Bankrupt's connected with them as to stand in a position more advan- tageous than an ordinary purchaser. He could not agree that the present bankruptcy law, which authorized and required the trustee to act under the direction of the committee of inspection, had in any way displaced the principle of these decisions. If in any case the trustee had been reduced to the condition of a mere passive agent, of course the Court must take all the circumstances into consi- deration. case. But there was nothing of that kind in the present The trustee received a proposition for the purchase of the policy, and informed the committee of inspection of it, and on the information which he gave them they sanc- tioned the sale, and beyond that they did not interfere. And even that sanction was not shown to have been given with any knowledge of the relationship between the trustee and one of the purchasers, or of the fact that he was a minor. Whether they were or were not to blame for not having asked any questions when they saw that one of the purchasers bore the same name as the trustee, as a matter of fact they did not ask any question. The principle, there- fore, which had been established by a series of decisions, a principle of most cardinal importance, was fully and entirely applicable to the case. And in addition to the fact that the sale was made for the benefit of the trustee's own son, there was the fact that he was a person legally incapable of contracting. The trustee must have been perfectly aware of this, and could have made no mistake. He deliberately entered into a contract which was void, which, indeed, was no contract at all. How, under such circumstances, the bankrupt's estate could be bound by the contract it was impossible to conceive. At any rate the circumstances threw on the trustee the burden of showing that it was a proper contract; the circumstance that these facts were not brought before the Registrar could make no difference, 1 } } J 1 Sale of Bankrupt's Property. Carrying on Business. Winding up. Right of Minority of Shareholders. Discharge. 590 ADDENDA TO VOL. I. except as to costs, for, if the facts were capable of explana- tion, it was the duty of the trustee himself to bring them forward. No doubt the Registrar would have come to the same conclusion if the same facts had been before him. But although the order for payment of costs by the appellant could not stand, no costs could be given to him. But the trustee who had misconducted himself must per- sonally pay the costs of the appeal. Ex parte Forder, 14th July, 1881, as noted in 25 Sol., J., 720. Under the Bankruptcy Act a majority of creditors have no power to bind a dissenting minority by authorizing the trustee to carry on the business of the bankrupt, excepting for its beneficial winding-up, and a resolution of the credi- tors to carry on the business for any other purpose will be set aside on the application of a dissenting creditor. Deci- sion of Mr. Registrar Murray reversed. Ex parte Emmanuel in re Batey, 17 L. R., Ch. D., 35, 50 L. J., Ch. 305, 44 L. T.,832. On the failure of the objects for which a company is formed, and when the Court is satisfied that the business cannot be carried on, a winding-up order will be made, even though the company is not insolvent, and against the wishes of an overwhelming majority of the shareholders. In re the Haven Gold Mining Company, Court of Appeal 13, 14th January, 1882, reversing decision of Bacon, V.C. The petition for winding-up had been presented by two share- holders. The prospectus quoted extravagantly favourable opinions of the prospects of working the mineral property, in New Zealand, extracted from reports of two valuers, one of them a Professor," who, it turned out, had never seen the property, but had given their opinions upon information supplied by the person who had first sold the property in England. CC A resolution providing that upon the assignment of the bankrupt's property to the trustee the bankruptcy should be annulled, operates as a discharge. Gilbey v. Jeffries, Q. B. Div., 2nd December, 1882, 31 W. R., 381. ADDENDA TO VOL. I. 591 PAGE 81.-It not infrequently happens that an undis- Undischarged Bankrupt. charged bankrupt who has surrendered all his property to his creditors opens, by the assistance of his friends, a banking account with the view of resuming business, and in such a case it is not an unusual practice for the banker to allow him to conduct the account in the ordinary way; and this practice is perhaps safe in the absence of any notice of claim on the part of his creditors. tion. PAGE 82.—Of the rights of a secured creditor in connec- Arrangement tion with an arrangement for composition, a most important by Composi- point was decided by the Court of Appeal on 6th April, Secured 1876, in the case of ex parte Hodgkinson, where, in the Creditor. statement of the affairs of the debtor, who had filed a petition for liquidation by arrangement or composition with his creditors, Hodgkinson was entered as a creditor for £3,300, the security given to him, the mortgage of the debtor's mill being valued at the same sum. He received the usual notices, but did not prove, and after the expiry of two years from the payment of the final dividend, the composition accepted by the creditors being 10s. in the £, he, in the exercise of his power of sale, sold the mill, and the proceeds being insufficient to satisfy the debt, he claimed upon the balance. The Judge of the Manchester County Court held that the registration of the resolution come to by the creditors operated as the close of the composition, that he had elected to stand upon his security, and could not claim. On appeal to the Chief Judge in Bankruptcy the latter, however, decided that he could claim to the extent of the composition fixed by the resolution, as he had done nothing by which it could be inferred that he had accepted the security in full satisfaction of the debt, that he was not bound by the debtor's estimate of the value of the security, and that he was entitled to wait until he had realized it, and then claim on the unpaid balance of the debt, the rights of the other creditors being thus in no way prejudiced. This decision of the Chief Judge was affirmed by the Court of 1 1 Secured Creditor. Sole and Partnership Business, C Registration. 592 ADDENDA TO VOL. I. Appeal, Lord Justice Mellish observing, 20 S. J., 457, that he could see no reason why, in a case of composition, a secured creditor should not be entitled to do what he would clearly have a right to do in the case of bankruptcy or liquidation, viz., abstain from proving his debt until after he had realized his security, and then come in and take a dividend on the unpaid balance of his debt. There was this difference, however, between composition and bankruptcy or liquidation, that in the latter cases, if the creditor waited he might find all the assets gone, and he would have no power to disturb dividends already paid, and moreover, the debtor might have obtained an order of discharge; whereas, in the case of composition the claim against the debtor would still remain, there being no question of distribution of assets. In the case of a liquidating debtor having carried on business alone, and in partnership with another who remains solvent, he must make a full statement not only of his own debts and liabilities, but also of those of the partnership business, and of the account between himself and his partner, the Court, Jessel, M.R., Brett and Cotton, L.JJ., observing that this might be some hardship upon the solvent partner as disclosing the state of his business, but if it was not complied with, the debtor could not have the benefit of liquidation, and must be made a bankrupt. Ex parte Amor in re Amor, C. A., 3rd August, 1882, 31 W. R., 282. As to the registration of composition resolutions, in a case where the debtor's statement showed debts £1,167, and assets nil, the statutory majority of creditors agreed to the acceptance of 2d. in the £, payable without security in three months from the registration of the resolutions. No creditor opposed the registration of the resolutions, but the Registrar refused to register them, as they had been passed. solely in the interest of the debtor, and not for the benefit of the creditors. On appeal it was urged that in the absence of opposition by the creditors, the Registrar was bound to 3 4 1 ADDENDA TO VOL. I. 593 register the resolutions. Ex parte Elworthy, 20 L. R., 742, Registration in Bankruptcy. but the court affirmed the Registrar's decision, Cotton, L.J., observing that, though there was no opposition to the regis- tration, the Registrar was bound to refuse to register the resolutions, if upon the evidence he came to the conclusion that they were passed solely in the interest of the debtor. That the act gave the majority of the creditors very large powers to bind the minority, and they ought to be strictly watched in the exercise of these powers. Ex parte Williams, 4th August, 1881, and see ex parte Terrell, 4 L. R., 293; ex parte Russell in re Robbins, Court of Appeal, 1st February, 1883, 31 W. R., 442, reversing deci- sion of Bacon, C.J.; and ex parte Stubley, C. A., 19th April, 1883, 27 S. J., 432. If resolutions, however, are passed bona fide, they will be registered. Registration may be refused by the Registrar, on the ground of the debtor's absence at the first meeting of credi- tors. In the case of ex parte Best, before the Court of Appeal, 5th August, 1881, it was stated that it is the ordinary practice at such meetings in the city of London for the debtor not to be present in the room in which the meeting is held, unless the creditors expressly desire his attendance, but for him to be in an adjoining room, from which he can be summoned if wanted; the reason given being that the creditors prefer to discuss the affairs of a debtor in his absence, because they can express their opinions more freely than in his presence. The court, however, held that the directions of the Act, sec. 126, Presence of sub-sec. 4, as to the presence of the debtor at the meetings, First Meeting. - were not merely formal, but were intended for important and substantial purposes, that unless he was prevented by the causes specified in the Act, he was to be present at the first meeting, and personally to put in his own statement of affairs, and that there were very good reasons why this should be required. These composition arrangements ought M M Debtor at } 7 Presence of Debtor at First Meeting. 594 ADDENDA TO VOL. I. to be perfectly fair and above board, and all the information should be given to the creditors at the first meeting, which was necessary to enable them to decide what course they would adopt. If the proper information was not given at the first meeting, the matter came before the second meeting with some prejudice. And Cotton, L.J., observed that if the custom in the city was such as it was alleged to be, all he could say was that it was contrary to the Act. The Act required, as a rule, that the debtor should be personally present, the provision as to the production of the statement of affairs showed that personal presence was intended. Of course, there might be circumstances in which though not actually in the room the debtor might be treated as present. And though, if any creditor desired to ask the debtor questions the majority could not prevent him from doing so; it would be another matter if all the creditors excused his presence. If the custom was that as a rule the debtor should not be in the room unless the creditors sent for him, it was contrary to the Act; the debtor ought to be there unless the creditors excused him. And Brett, L.J., thought the true interpretation of the provision of section 126 was that the debtor should be personally present at the meeting, and should personally bring in his statement of affairs unless prevented by sickness or other cause satisfactory to the meeting; and his lordship could not accede to the argument that he might be present by his agent, and hand in his statement by his agent It was said that these requirements were in favour of the creditors, and that they could waive them if they chose. His lordship thought that they could not waive them, except in the cases mentioned in the Act. He was not prepared to say that there might not be circum- stances in which it might be said that a debtor was present at a meeting though he was not actually in the room, but they must be very special circumstances. 25 S. J.. 775. There is no rule that a man having no assets may not file 1 F > ADDENDA TO VOL. I. 595 a liquidation petition if a composition is secured by a third No Assets person. Ex parte Hudson in re Watton, 25th January, 1883, 31 W. R., 372. Ex parte Terrell, ante p. 593, and ex parte Aaronson, 26 W. R., 470, 7 L. R., Ch. D., 713, com- mented on and distinguished. Presence of Shorthand Ex parte Solomon, Writer at Creditors' Meetings. 1881. Shorthand writers may be present at creditors' meetings to take a note of the debtor's answers. C. A., 9th March, 1882, 30 W. R., 603. PAGE 87.-The returns furnished in 1881 by the Bankruptcy Comptroller in Bankruptcy, though they show a consider- Returns of able decrease in the number of insolvencies of the better class in 1880 as compared with 1879, show no improvement in the worst forms of liquidation by arrangement; and he further explains, though with less fullness of detail than in his previous annual report, the practice of touting for proxies. The fact, he says, that majorities of creditors too commonly exercise their powers by handing them over to canvassing agents, leads necessarily to an incalculable amount of direct or indirect fraud. The first step in canvassing being to obtain a list of the creditors, an agent acting for the debtor has, so far, the best chance, and, if he cannot himself collect enough proxies to carry the reso- lution, he may, perhaps, arrange with other agents who have canvassed on their own account, and are in the same position. The system begins from the beginning of difficulties; almost every person who has a bill of sale registered, or a judgment against him, receives a number of circulars; one of these, which claims to be the original, is rather long. The writer does not presume to infer that his services are required, but, as such things as bills of sale may lead to bankruptcy and the "destruction of comfort- able homes," he offers the assistance of his long and extensive practice in "arranging for an extension of time for payment of debts, or for a composition of the same," observing that "the Bankruptcy Act of 1869 has extended considerable advantages to debtors and creditors, and its 6 T 2 + Returns of 1881. 596 ADDENDA TO VOL. I. Bankruptcy liquidation clauses afford the former an easy method of arranging their affairs, and relieving themselves from their difficulties without the objectionable publicity and suspen- sion of business which happened under previous acts. (Signed) E. C., Accountant in Bankruptcy." A postscript stating that "no charge whatever is made unless business is actually done," and that money can be advanced the day after application, is followed by this: "Caution. Several persons who really have no knowledge or experience, are copying this circular with the object to extort fees. Mr. C. conceived the idea of sending to persons who have bills of sale or judgments issued against them, some eighteen years since, therefore all others are only copyists." The senior Registrar of the London Bankruptcy Court recently notified to the public (COUNTY COUrts' CHRONICLE, 1st June, 1881,) that the writer of another circular, headed with the Royal arms, who also described himself as "Accountant in Bankruptcy," with the addition. "and an officer of the Court," is not the "Accountant in Bankruptcy," or an officer of the Court, in fact he is only a (( copyist," who has improved on and explains one or two points in the above original. His "office aims at effecting an arrangement with creditors whereby the trader continues in business uninjured, and there is a fund from which loans can be granted to pay the composition or to enable the debtor to purchase his estate in the unusual event of liquidation. Consultation free. N.B.-The new and very stringent Bankruptcy Bill, now being passed through the Houses of Parliament, will come into operation shortly." However little attention such circulars may deserve, the idea of sending them being conceived eighteen years ago,. or soon after the commencement of the Bankruptcy Act, 1861, and of arrangements and compositions to which a majority of creditors can bind a minority, without any 1 + } “ ADDENDA TO VOL. I. 597 Returns of examination into the debtor's affairs, seems to agree very Bankruptcy well with the enormous annual increase of compositions 1881. under that Act; and with their extraordinary reduction by such simple provisions as that persons helping to carry deeds by signing them as creditors should prove that they are creditors; the present Act of 1869 is, perhaps, correctly stated to offer greater facilities to debtors then previous Acts. The promised result of compositions is that com- fortable homes are not disturbed, the trader continues in business uninjured, the amount of composition being no more than he may borrow on the security of his property leaving him, say, one-third of that property with freedom from all liabilities, a very tempting prospect to a man whose property consists of goods bought on credit, and who, perhaps, by such composition would be better off than he ever was before. All these may appear idle promises "to extort fees," but debtors have appeared in better circumstances after compounding, and there can be no doubt that agents of this class learn by experience how resolutions of majorities of creditors may in most cases be carried. As pointed out in a former report there were in the first two years of the present Act many more declarations of insolvency by debtors seeking adjudication of bankruptcy than since-arrangement or composition was soon found to be easier and more profitable; in a year or two agents are generally acquainted with any means by which new legislation may be evaded. While this class of agent is all for the debtors and composition, another and very similar class represents itself as all for the creditors and liquidation by arrangment, its aim being the profits to be made by trusteeships, and between them touting for proxies has become, as is generally well known, a regular business under the present Act. A striking illustration was afforded, a few months ago, in the conviction of an individual, who had for years successfully carried on that business in all parts of England, the only peculiarity of his proceedings A 598 Bankruptcy being that Returns of 1881. ADDENDA TO VOL. I. being that he frequently changed his name and address, and that instead of being satisfied with the more or less lawful profits of trusteeship he appropriated the whole funds of liquidations in which he represented the majority of creditors, sometimes declaring dividends payable in various places by purely imaginary persons, for no apparent purpose but to amuse himself at the expense of the creditors.* The amount of annual loss by insolvency has been shown from former returns to have varied considerably, reaching to about £25,000,000 in more recent times. In 1880, however, the loss is estimated at about £14,000,000, the average minimum loss for the six years, 1875-80, being roughly estimated at about £20,000,000 per annum. The rate of costs in closed bankruptcies was higher in 1880 than in any preceding year, being 41½ per cent of net assets, or 3½ per cent more than in the year 1879, and II per cent more than in the year 1873, when the assets * Of the touting in proxies, the Comptroller, in his previous report, says :- The first object of canvassing is to obtain enough proxies to carry liquidation by arrangement and secure the trusteeship, with the common result that the creditors receive very much less as dividend from the trustee than they might have had as composition from the debtor; but every proxy has its money value, and a single proxy will sell for a considerable sum when needed to carry or to prevent a resolution. It appears to be the regular practice in some parts of England to hold what are called 'knockouts,' or private meetings of touting agents, for the purpose of arranging that the proxies they have collected among them shall be used in the interest of one of their number, but such arrangements are more commonly made at the first meeting of creditors in a liquidation, or before the registration of the resolutions. Stray proxies. are bought from the holders, but where two or more agents hold each a sufficient number to prevent the other carrying the resolutions, a joint trustee- ship may be agreed upon, though more often one becomes trustee on the usual terms, an expression which evidently indicates a very usual transaction and means, I am informed, that the trustee shall pay the other one-third of whatever he can make out of the trusteeship. Beginning with the sale and barter of proxies, a system of commissions and corruption prevails through every step of proceedings under the Bankruptcy Act; solicitors are paid by the trustees they are able to appoint, either directly or (in liquidation) by the trustee improperly paying their costs without taxation, trustees being, in turn, paid by the auctioneers they employ, and so on; the whole amount of these commissions necessarily coming in the end out of the pockets of the creditors." The abolition of the bankruptcy laws altogether has been advocated, leaving claims to be settled by the ordinary laws of debtor and creditor, and patent dishonesty dealt with as a crime, and it is not at all improbable that this will' sooner or later be the final ending of the matter. No fewer than seven distinct Bankruptcy Acts have been passed during the last forty-five years, thus showing the average life of a Bankruptcy Act to be between six and seven years. $ ADDENDA TO VOL. I. 599 Returns of were of about the same average. This is accounted for Bankruptcy partly by the assets of two large bankruptcies being 1881. entirely absorbed by costs, chiefly of litigation, partly by the closing in the last two years of estates that have been a considerable time in hand, and partly by the fact that in the early years of the Act a larger proportion of estates were undertaken by creditor trustees without remuneration or by solicitors under the provisions of section 29 of the Act, at a moderate per centage, including their professional charges. The balance of unemployed funds in bankruptcy on the 31st of December, 1880, was £308,907; judging only by their relative assets in the last two years, there would be not quite four millions between bankruptcy and liquidation, the whole of which fund is in the hands, or under the control of the trustees, except £14,467 unclaimed dividends, &c., in bankruptcy, lodged in the Bank of England. Like the former estimates, the above supposes that the same trustees who in bankruptcy need to be considerably pressed to perform their duties, perform them as regularly in liquidation without any supervision or chance of the results of their administration being known. The amount of unclaimed dividends in bankruptcy affords moreover no index to the probable amount in liquidation; general rules require trustees in liquidation to reserve dividends for all persons who appear as creditors in the bankrupt's statement, or who may notify that they claim to be creditors; the amount of unclaimed dividends may be largely increased by imaginary claims, and various other means to the advantage of trustees, but, without reference to that possibility, considerable funds must remain in their hands that in bankruptcy would be distributed among the persons who had proved that they were creditors.* * Amongst the curiosities of liquidation, a "first and final" dividend of one penny and nineteen-twentieths of a penny in the pound has just been declared, May, 1880, in the liquidation by arrangement of the affairs of a debtor in Sheffield. We happen, says the SHEFFIELD INDEPENDENT, to know a case in which, the debt being Ios., the trustee liberally gives the benefit of * > } Bills purport- ing to be drawn abroad. Month. Hiring Agreement. 600 ADDENDA TO VOL. I. PAGE 94.-Previous to the passing of the 17 and 18 Vict., c. 83, bills or notes, except those payable to bearer on demand, drawn or made in a foreign independent state, or at sea, did not, to be available in this country, require a stamp. If drawn or made in a foreign possession, it was necessary, however, that they should have the stamp appro- priated by the law of the place, though it fell upon the party relying upon it to prove the local stamp law. Unstamped bills purporting to be drawn abroad, but really drawn in England, could not be enforced by even a bona fide holder, and for some time previous to the remedy which was afforded by the above Act, these instruments had become so numerous and so extended in circulation as to occasion considerable loss to many of the Banks, and to, in a measure, check the negotiation and depreciate the value of the true foreign bill itself. PAGE 104, N. MONTH.-In the case of Hutton v. Brown, 8th July, 1881, 29 W.R., 928, where, under a hiring agree- ment of chattels for 26 months, the property becoming that of the borrower if all the weekly instalments were paid by him, the lender contended that the months were calendar ones, the effect of which would be to give him eight more weekly instalments than if the months were lunar ones, it was stated by Fry, J., before whom the case came, that the general rule of law was that months meant lunar months, and that there was nothing to rebut the presumption in this case; that in mortgages months were always understood to mean calendar months, but that was because the interest on mortgage money was a fixed yearly sum, and therefore a half year's interest would be for six calendar months; but that the rule did not apply to a hiring agreement like the one in question. one-twentieth of a penny, and transmits by post a dividend warrant for one penny. And if the fortunate creditor should be unable to make personal application, the dividend will be remitted by post at the cost of yet another penny. To pay this dividend an actual expenditure of double its amount is thus incurred, even if no account be taken of stationery, &c. t 1 ADDENDA TO VOL. I. 601 bills. PAGE 113.-Latterly numerous spurious bills have been Domicile. Retiring in circulation and taken up as they become due by the spurious forger, who, if the drawer, is in the habit of representing to the country bank through whom they are retired that he has received remittances for the purpose from the acceptor. Cases of this kind had become so frequent that the Asso- ciation of English Country Bankers issued, two or three years ago, a circular to the country banks, urging them to exercise great caution when asked to retire acceptances by persons purporting to be the acceptors, who may be strangers to them, and more especially when asked to do this by drawers, and in the latter case to satisfy themselves as to the legitimacy of the transaction, and that indeed payment of bills in London should be advised only for persons known or properly introduced to them; and it was suggested that when an acceptance was retired by a stranger purporting to be the acceptor or to be acting on his behalf, that notice should be sent by post to the drawer, as follows: "............beg to mention, for the guidance of...... that they have received £............for the retirement of a bill for that amount, drawn on. .due the.... .inst. 18...... If taken up by a drawer, notice in somewhat similar terms to be sent to the acceptor. Pencil. PAGE 121.—As the use of pencil, not only in signing but Signatures in in writing out cheques, has been latterly very prevalent, it is time, we think, for bankers to make a resolute stand against the practice, as it is full of danger, not only from the perishable nature of the writing, the greater part of which on some old cheques, drawn in mauve pencil, which we have seen, being wholly illegible, but from its easy alteration or obliteration, which, if done by collusion or otherwise, might entail great loss not only to the client, but in some cases to the banker himself. In some instances, as in hastily written or executed agreements or wills, pencil Pencil. 602 ADDENDA TO VOL. I. Signatures in has been held valid at law, the only case in connection with bills that we are aware of being that cited by us, vol. 1, p. 121, Geary v. Physic, a case which was decided on 6th February, 1826, since which time circumstances have altogether changed in connection with the free use and extended circu- lation of all negotiable instruments, and particularly cheques. In the above case it was held that an indorsement in pencil upon a promissory note was valid. It was contended on behalf of the defendant that a writing in pencil was not a writing recognized at common law, and there was cited Co. Lit., 229 a., where Lord Coke, speaking of a deed, says, “Here it is to be understood that it ought to be in parchment or in paper. For if a writing be made upon a piece of wood, or upon a piece of linen, or on the bark of a tree, or on a stone, or the like, &c., and the same be sealed or delivered, yet is it no deed, for a deed must be written either in parch- ment, or paper, as before is said, for the writing upon these is least subject to alteration or corruption." For the same reasons it was urged a writing ought to be made with materials least subject to alteration or corruption, that writing made with a pencil is easily altered or obliterated, and therefore, for the reasons given by Lord Coke, where the law requires a contract to be in writing, it ought to be in writing made with materials the least subject to altera tion, general convenience requiring that negotiable instru ments should be written with materials more durable than pencil; and moreover, as was contended, it was not a writing according to the custom and usage of merchants, that in point of practice bills of exchange were generally written in ink, and it lay upon the plaintiff to shew by evidence that this was a writing according to the custom of merchants. But Abbott, C.J., in his judgment, said: "There is no authority for saying that where the law requires a contract to be in writing, that writing must be in ink. The passage cited from Lord Coke shews that a deed must be written on paper or parchment, but it does not shew that it must + ADDENDA TO VOL. I. 603 Pencil. be written in ink. That being so, I am of opinion that an Signatures in indorsement on a bill of exchange may be by writing in pencil. There is not any great danger that our decision will induce individuals to adopt such a mode of writing in preference to that in general use. The imperfection of this mode of writing, its being so subject to obliteration, and the impossibility of proving it when it is obliterated, will prevent its being generally adopted. There being no authority to shew that a contract which the law requires to be in writing should be written in any particular mode, or with any specific material, and the law of merchants requiring only that an indorsement of bills of exchange should be in writing (see the custom stated in Lutwidge, 878) without specifying the manner with which the writing is to be made, I am of opinion that the indorsement in this case was a sufficient indorsement in writing within the meaning of the law of merchants, and that the property in the bill passed by it to the plaintiff." The other judges, Bayley and Holroyd, JJ., concurred. On behalf of the plaintiff, the following case, referable to an agreement in pencil, was cited-Jeffrey v. Walton, I Stark., 267; and the following, referable to Wills, Rymes v. Clarkson, I Phill., 22; Green v. Skipworth, 1 Phill., 53; and Dickenson v. Dickenson, 2 Phill, 173. R The Signatures by Unfortunately, however, recent practice has falsified the view above expressed by the learned judge. } PAGE 122.-SIGNATURES BY BANK OFFICERS. provisions of 7 and 8 Vict. c. 113, excepting s. 47 and part of s. 12, were repealed by 25 and 26 Vict. c. 89, which by section 47 enacts that "a promissory note or bill of ex- change shall be deemed to have been made, accepted, or indorsed on behalf of any company under this Act, if made, accepted, or indorsed in the name of the company by any person acting under the authority of the company, or if made, accepted, or indorsed by or on behalf or on Bank Officers. 1 Signatures. Church- wardens and Overseers. 604 ADDENDA TO VOL. I. account of the company by any person acting under the authority of the company. )) * With regard to churchwardens and overseers contracting by bill or note and signing in their official capacity they are nevertheless individually liable. For example, where a parish vestry borrowed money from a party who in security took the promissory notes of two churchwardens and an overseer, the latter were held personally bound. In this case the notes were signed by the defendants in the follow- ing form: "Joseph Pettet, George Wanger, churchwardens for the parish of Chingford; James Freeman, overseer." It was observed by Patteson, J., "However hard it may be on the defendants, we cannot say that there is any bar to the legal right of the plaintiffs. I have no doubt whatever upon the evidence. The parish wanted to borrow money from Henry Newton; he would not trust the parish, because they could not bind themselves in that character; and accordingly he takes from the churchwardens and an overseer some promissory notes. If these notes were merely memorandums, why should they have had the stamps and/ other requisites of promissory notes? Now, the makers of the notes could not bind themselves as parish officers, they contract therefore as individuals. Hence the addition of their titles to their signatures cannot destroy their individual >> * Under the Joint Stock Companies Act, 1856, 19 and 20 Vict., c. 47, it was provided, sec. 43, that "a promissory note or bill of exchange shall be deemed to have been made, accepted, or indorsed, on behalf of any company registered under this Act, if made, accepted, or indorsed in the name of the company by any person acting under the express or implied authority of the company. And, under a previous Joint Stock Companies Act, 7 and 8 Vict., c. 110, sec. 45, it was provided that "if the directors of the company be authorised by deed of settlement or by-law to issue or accept bills of exchange or promissory notes, then every such bill of exchange or promissory note shall be made, or accepted, as the case may be, by and in the names of two of the directors of the company on whose behalf or account the same may be so made or accepted, and shall be by such directors expressed to be made or accepted by them on behalf of such company; and that every such bill of exchange and promissory note so made or accepted as aforesaid, shall be countersigned by the secretary or other appointed officer of the company in whose behalf the same is expressed to be made or accepted ;" and, as to indorsation, "that every bill of exchange so made as aforesaid, or received by or on behalf of the company, may be indorsed in the name of the company by any officer authorised by deed of settlement or by-law in that behalf.' 1 ADDENDA TO VOL. I. 605 resident One of Now wardens Overseers. liability. But that addition does shew that they were Signatures. entering into the transaction for the parish, and that they Church- therefore intended the parish to manage it. The interest and is paid all along by the parish; the defendants are all along, and might have known of the payments. the defendants actually signs the parish accounts. this, though not a recognition for all, of the joint liability, may be coupled with other facts, as an admission of the right of the parish to pay for him; and if it be a payment for him it is a payment for all." Rew and another, Executors, v. Pettet and others, 1 Ad. and Ell. 196. The personal liability of churchwardens and overseers is not transferred to their successors by the II and 12 Vict. c. 91. See Chambers v. Jones, 5 Exch. 229. Byles 76, 13 ed. ers. And in a case where commissioners under an inclosure Commission- Act drew upon their banker drafts which they subscribed in their capacity of commissioners, they were held person- ally liable. Eaton v. Bell, 5 B. and Ald. 34. In which case the defendants were the commissioners, and plaintiff the banker appointed under the Act. The commissioners. were authorised by the Act to raise money by rate, and it was directed that persons making advances for the purposes of the Act should be repaid with interest out of the money raised by the commissioners. Defendants drew on plaintiff in this form: "Pay A., or bearer, £40 on account of the public draining, and place the same to our account as commissioners of the Frodsham inclosure." Plaintiff sued defendants personally, and it having been left to the jury whether credit was given by plaintiff to defendants person- ally or to the fund they had to raise, the jury considered it given to defendants personally, and the court thought this view correct, and plaintiff had judgment. PAGE 127.-Where a bill was drawn and accepted for Alterations £22 25., and afterwards the words "two hundred and "when vitiating. were, by the drawers, fraudulently inserted in a space left wide enough for the purpose before the amount in the 2 Alterations when vitiating. 606 ADDENDA TO VOL. I. body of the bill, and the figure "2" was introduced in a space after £ at the top of the instrument, thus converting its amount into £222 2s., and it was moreover drawn on a 35. stamp sufficient for a bill of £300, and the plaintiffs, who were indorsees for value and had no notice of the fraud, had sued the acceptor on the bill for the amount as altered, it was held by Chitty, J., 4th April, 1882, that the case was covered by that of the Société Générale v. The Metropolitan Bank, 16th and 22nd January, 1873, 27 L.T., N.S., 849 (where "eight" days had been converted into "eighty" days), which showed clearly 'that the defendant was not to suffer by reason of the subsequent alteration. The plaintiffs, said his lordship, relied, no doubt, upon the case of Young v. Grote (see vol. 1, p. 386), and some more recent cases, but in Young v. Grote the case was one of banker and client, and the latter, by issuing a carelessly drawn cheque, subsequently increased in the amount, had himself contributed to the fraud; and, besides, the client did not sue on the cheque, but for the balance of his account. The present case was also distinguishable from those where the acceptance had been in blank. He thought the loss must remain with the plaintiffs, who had trusted the drawers, and against whom they would have their remedy, whatever that was worth. The Stamp Act, too, clearly required a bill of exchange to be stamped after any alteration, which in effect made it a new bill. This decision was affirmed by the Court of Appeal, Baggallay, Brett, and Lindley, L.JJ., 24th and 25th November, 1882, Baggallay, L.J., observing that to hold there was negligence on the part of the acceptor would be to oblige a man, before accepting a bill, to consider the possibility of fraud by the drawer. Testing the present case by the rule laid down by Blackburn, J., in Swan v. North British Australasian Co., ante pp. 408, 409, it was impossible to say that there was negligence in the defendant such as to work an estoppel against him. } ADDENDA TO VOL. I. 607 Adelphi Bank v. Edwards being one of three actions Alterations when vitiating. against the same defendant arising out of a similar state of facts, 27 S.J. 70. Alteration In Garrard v. Lewis, April 29, Nov. 2, 1882, 10 L.R., Marginal Q.B.D. 30, where the defendant signed an acceptance, the not vitiating. amount in the body of the bill being left in blank, but the margin having in figures £14 os. 6d., the sum for which the defendant intended to accept, and he handed the bill to the drawer, who afterwards fraudulently increased the figures to £164 os. 6d., inserting that amount in the body of the instrument, it was held that the acceptor was liable to a bona fide indorsee for value without notice of the alteration, the acceptance being equivalent to one in blank. The following cases and authorities were cited on behalf of the plaintiffs: Young v. Grote, Swan v. N. British Australasian Co., Société Générale v. Metropolitan Bank, supra; Saunderson v. Piper, 5 Bing., N.C. 431; Ingham v. Primrose, 7 C.B., N.S. 82; ex parte Swan 7 C.B., N.S. 400; Baxendale v. Bennet, 3 L.R., Q.B.D. 525; Story on Bills, s. 42; Mason on Bills, 41, 42; Marius ed., 1655, p. 34; Beawes, s. 193; Nonguier, Lettres de Change, ed. 1875, 127; and Heineccius ed. 1769, c. 4, ss. 5 and 12:— Denique sollemne etiam est campsoribus sub finem lemmatis cifris exprimere summam solvendam, addito monetæ genere, quo exactori sit satisfaciendum; quamvis hoc requisitum vel ideo essentiale dici nequeat, quod summa in ipsis litteris cambialibus bis exprimi solet. Hoc requi- situm non esse essentiale vel inde patet, quod ipse acceptans hanc summam supplere potest, quum tamen debitor sine falsi crimine in ipsa obligatione nihil mutare possit. Adjicitur ergo summa magis notitiæ, quam necessitatis, caussa." -CC 1 PAGE 132.-FORGERY.—INCOMPLETE BILL.—As an in- Forgery. strument in the form of a bill, accepted by the person upon Bill. Incomplete whom it is drawn, but not signed by the drawer, is not a bill of exchange, it has been held that proof of forgery of an } F } ༈ > Forgery. Incomplete Bill. Bank Note. Payment on Loss of Halves. Alteration of number. Indorsement. Inoperative. 608 ADDENDA TO VOL. I. indorsement on such an instrument would not support a conviction for forgery of an indorsement on a bill of ex- change, Reg. v. John Harper, 21st May, 1881, 29 W.R. 743, in which the Court, consisting of Lord Coleridge, C.J., Grove, Hawkins, Lopes, and Stephen, JJ., said, "We are all clearly of opinion that this conviction cannot be supported. The prisoner has been convicted of forgery of an indorsement. on a bill of exchange. It is clear upon principle that the document in question was merely an inchoate bill of ex- change, having words of drawing upon it and an acceptance; but, in the absence of the drawer's signature, it was not a complete bill of exchange. This view of the case is also supported by the authority of Stoersiger v. South Eastern Railway, 2 W.R. 375, and Mc.Call v. Taylor, 13 W.R. 840," Stephen, J., however, adding that inasmuch as the thing done had all the effect of a forgery, there did not appear to be any reason why the prisoner should not be indicted for the offence of forgery at common law. PAGE 161.-BANK NOTE.-PAYMENT ON LOSS OF HALVES.-In claiming payment of Bank of England notes, the halves of which have been lost, the Bank of England require the full names and quality of those to whom and from whom the notes were sent, and all particulars in connection with the latter and their loss, and after the expiration of two months from the date of the loss the amount is paid on a satisfactory indemnity being given. The alteration of the number on a Bank of England note is a material alteration, and avoids the instrument. Suffell v. The Bank of England, Court of Appeal, 28th April, 1882, reversing judgment, 4th July, 1881, of Lord Coleridge, C.J., 51 L.J., Q.B., 401 ; 9 L.R., Q.B., 555. PAGE 199.-Where a bill was drawn in Glasgow by John E. Walker on, and accepted by William and Thomas Mc.Kinlay, Strabane, for an advance of £1,000, and James Mc.Kinlay, the father of the acceptors, signed his name simply on the back of the bill before it was indorsed by & 1 rt ADDENDA TO VOL. I. 609 the drawer, and the bill was dishonoured at maturity, it Indorsement, was held by the House of Lords, on appeal from the Court Inoperative. of Session, that James Mc.Kinlay was not liable upon the bill either as an acceptor or as a guarantor for the acceptors, or as an indorser to the drawer. Steele and others v. Mc.Kinlay, May 13, 14, 24, and June 14, 1880, 29 W.R., 17. John E. Walker and James Mc.Kinlay had both died, and what passed between them was to a great extent a matter of inference. In the course of his judgment Lord Blackburn said: "Lord Shand takes the view that James Mc.Kinlay's signature operated as an indorsement by him to the drawer. Now, an indorsement in general is a transfer in writing by the holder of the bill to a new holder, upon whom the property is conferred, and it is clear that James Mc.Kinlay was not such an endorser; but I agree that by the custom of merchants, as modified by English law, there may also be an indorsement by a person, not a holder of the bill, who puts his name upon it to facilitate the transfer to a holder. By the old foreign law this might be done by an aval (said to be an antiquated word signifying "underwriting ") either upon the bill itself or upon a separate paper, and if such aval was given by anyone, his obligation to all subsequent holders of the bill was precisely the same as that of the person to facilitate whose transfer the aval was given. Jackson v. Hudson, 2 Camp., 447, is an authority to shew that an aval for the honour of the acceptor, even upon the bill, is not effectual in English law. That case cannot now be questioned, and I do not think it could have been impugned at the time when it was decided; but the indorse- ment of the name of a stranger to the bill is efficacious in English law, and has the same effect as an aval. The effect of such an indorsement was recognized by Lord Holt in Hill v. Lewis, I Salk., 133, and also in Penny v. Innes, I C. M. and R., 439. It creates no obligation towards previous parties to the bill, but is for the sole benefit of those who take it afterwards. It is not a collateral engagement, but N N } 1 Į 骨 ​༢ 1 610 ADDENDA TO VOL. I. Indorsement. an engagement upon the bill, and for that reason, and also Inoperative. because the original bill was incident to it by the custom of merchants, the capacity of an indorsement in the nature of an aval, such an indorsement requires no stamp. Such an indorsement is also required by the law of Scotland. In Penny v. Innes, the defendant, who had apparently agreed to become an indorser in the nature of an aval for the drawer of the bill, who was about to transfer it to the plaintiff, did not actually write his name upon the bill until the drawer had written his, and it was held that the order in which the signatures were written was immaterial. In the present case the bill purports to be drawn by Walker upon William and Thomas Mc.Kinlay, and payable to Walker's order. That is so far from being a blunder that I think the fact was from the beginning what the bill recites. James Mc.Kinlay wrote his name on the back, and anyone who took the bill after that would be entitled to hold him liable as an indorser in the nature of an aval for the drawer; but it does not purport to be an indorsement to Walker, the drawer. Even if it was intended (and I do not think this is made out) that James Mc.Kinlay should make himself liable to Walker as surety for his sons, and wrote his name on the back of the bill with that object, ' he did not carry out such an intention. To construe the bill, with the help of extrinsic evidence, as a drawing by James Mc.Kinlay upon William and Thomas Mc.Kinlay, and an indorsement by him as drawer to Walker, would not rectify a blunder made in drawing up the instrument, but would make a new one, because, owing to mistakes in law, the instrument did not operate as the parties wished. I, therefore, come to the conclusion that there was no effectual guarantee for William and Thomas Mc.Kinlay, and that James Mc.Kinlay's signature cannot be effectual as an obligation upon the bill, either as an acceptance or as an indorsement to Walker, who purports to be the drawer, and who would primâ facie be liable to indorsers, and would not be able to sue them." } ADDENDA TO VOL. I. 6II The defendant's son undertook that the defendant should Re-indorse become his surety for his debt to the plaintiffs, who accord- ment. ingly drew bills upon the son who accepted them, and then the plaintiffs indorsed them to the defendant, who re- indorsed them to the plaintiffs. Held that since the defendant could not have sued the plaintiffs, there being no consideration for the indorsement by them, there was no circuity to prevent the plaintiffs suing the defendant, and that the agreement to become surety could be proved by parol evidence, since the action was brought, not on the guarantee, but on the bill. Wilkinson v. Unwin, C. A., 46 L.T., 123, 30 W.R., Dig. 27, Sept. 9, 1882. to Securities An indorser of a bill is a surety for the acceptor, to the Indorsers right holder, and having paid it on dishonour is entitled to the of Acceptor. benefit of any securities deposited by the acceptor with the holder to secure the bill. Duncan Fox & Co. v. The North and South Wales Bank, House of Lords, 27th Oct., 1881. 6 L. R. Ap. 1; 43 L. T. 706; 50 L. J. Ch. 355, reversing the decision of the Court of Appeal. 11 L.R., Ch. D. 88. PAGE 244.-The initialing a bill, accompanying it by Payment. a credit note, and afterwards issuing cheque, amount Banker. to payment which cannot be revoked, without previous understanding, at clearing time. Pollard v. Bank of England, Q. B., 2nd June, 6th July, 1871, which was an action on bill so treated at Newcastle-upon-Tyne. There all the banks have accounts at the Branch Bank of England, and use it as the means of making all payments. between each other. As mentioned in the statement of case in this action, any one of the bankers, not being the Bank of England, who has a bill made payable at another banker's sends it in the morning to that banker to see if it is in order and will be paid; and if it is the banker at whose bank it is payable initials it, and returns it to the banker who is the holder. The bills thus initialed are sent by the holder to the Bank of England for collection in the same manner as cheques. No question arose as to the 1 1 Payment. Banker. 612 ADDENDA TO VOL. I. effect of initialing a bill and returning it so initialed to the holder, the present bill having been held by the Bank of England itself, and not by one of the other bankers. When the Bank of England itself holds the bill, the practice is that the bill is left with the bankers at whose bank it is domiciled, and a credit note is given to the Bank of England. The credit note is also treated by the Bank of England in the same manner as cheques. The bill in question was taken on the morning it became due to Lambton's Bank, and upon presentation was marked by them for payment, and a credit note was given indica- ting that it, with other moneys, was in order for payment and would be paid, of which note the following is a copy: Newcastle-upon-Tyne, 24th February, 1868. Credit Branch Bank-Four hundred and ninety-seven pounds. 16s. 10d.—£497: 16s.: 1od. For Lambton and Co., Thomas Johnson. About 2 p.m. the Bank of England took all the cheques drawn on Lambton's to their bank, together with their credit note, which was admitted into the total amount, and a cheque upon the Bank of England was handed by Lambton's for the amount of the balance due. After the banks had closed to the public, at 3 o'clock, Lambton's for the first time ascertained that the acceptor of the bill had stopped payment, and that the balance to his credit with them was not sufficient to meet the bill. They imme- diately gave notice to the Bank of England that they had paid the bill in error, and required them to take it back. This was done before 4 o'clock, but after their account was already debited with the amount in the accounts of the Bank of England. The question was whether they still had the right to do this. "If the bill," the Court observed, If what took clearly had not. (( was already paid they place amounted to no more than an arrangement amongst f ADDENDA TO VOL. I. 613 Banker. the bankers, by which for convenience sake they, at 3 Payment. o'clock, stated the account of what they had at that time intended to pay at the later hour of 4, but only provisionally, so that the intention was revocable, up to the time of actual payment, it would be otherwise; and if, instead of giving a cheque for the amount, the banker had given a credit note expressing that their account was to be debited provisionally with this amount, but subject to alteration and revocation at their pleasure up to a later hour, it would have clearly indicated that there was such an arrangement. But a cheque given purports to be primâ facie an absolute payment, and it would require very strong evidence to show that it was not so." And in concluding their judgment, it was said, "The matter may therefore be shortly put thus: The bill having been presented by the defendants at Lambton's, a cheque on the defendants themselves was given by Lambton's, who had funds in defendants' hands to cover the amount. Thereupon, unless the giving the cheque was provisional, and subject to ratification on going over the accounts later in the day, it became the duty of the defendants at once to transfer the amount of the bill from the account of Lambton's to that of the plaintiff, and this they in fact did. Such a transac- tion might, no doubt, by arrangement between the bankers be provisional only, and subject to be set aside; but it is for the defendants to show that such an arrangement existed in order to divest the transaction of what would otherwise be its necessary effect. This the defendants have failed to do, and our judgment must therefore be for the plaintiff." It may be proper to add that the Bank of England had debited the plaintiff with the bill as returned dishonoured, and that an indemnity had been received from Lambton's by the Bank of England. Law. PAGE 257. This case, Rothschild v. Currie, is stated by International Byles, 405, 13th edition, as doubted in Gibbs v. Fremont, Contract by 22 L.J., Exch. 5; 9 Exch. 31, and by Story, p. 197, but Indorsement. | $ ་ > 614 ADDENDA TO VOL. I. Law. Contract by Indorsement, International that it was recently recognised and followed by the Court of Common Pleas in Hirschfield v. Smith, 35 L.J., C.P., 177; L.R., I C.P., 340. And see also Allen v. Kemble, 6 Moore, P.C.C., 314, where it was held that the drawer is liable, according to the law of the country where the bill is drawn. And in Rouquette v. Overman, 10 L.R., Q.B., 525, it was held that the computation of time of payment is determined by the law of the place of payment. Where a bill was indorsed in England by defendant to plaintiff, and the latter indorsed it to his correspondent,. M. Monforte, in Spain, in which country it was payable, and on presentment for acceptance it was dishonoured, and a delay of several days occurred before notice of dishonour was sent by Monforte to the plaintiff, who, however, at once gave notice to the defendant, it was held that the plaintiff was entitled to recover on the bill against the defendant. By the law of Spain no notice of dishonour is necessary. Horne v. Rouquette, Court of Appeal, 2nd July, 1878, 3 L.R., Q.B.D., 514, 26 W.R., 894, in which case Brett, L.J., said, in the course of his judgment: "The description of the contract of the indorser cited from Sir John Byles' treatise, may, therefore, be somewhat more strictly defined. It may be thus stated: 'An indorser contracts that if the drawee shall not on presentment accept, or at maturity pay the bill, he, the indorser will, on receiving due notice of the dishonour, pay to the person who has a right to claim as holder as against him, if such person, though he has given value for, has received no value on the bill, or if such person, though he did receive value on the bill, is liable to pay on the bill the sum which the drawer ought to have paid, together with such damages as the law prescribes or allows as an indemnity.' Within this definition the ultimate indorsee will, if he has given due notice or notices, recover, because, though he has given value for the bill, he has received no value on it. Any intermediate indorser will recover if the notices are in order, because, though he 1 L 1 A ADDENDA TO VOL. I. 615 received value on the bill when he indorsed it, he is made International Law. liable on the bill by having to indemnify his indorsee, or a Contract by subsequent indorsee. But such intermediate indorser will Indorsement. not be liable if the notices are not in order, because he has received value on the bill when he indorsed it, and is relieved from liability by defect of notices, and therefore is entitled to no indemnity. The law and its principles and its application, where all the transactions on the bill are in England, being thus worked out, it is necessary to apply them where some indorsement has been made abroad. Every party to a bill knows that by the law merchant it may be indorsed abroad. He cannot object to its being indorsed abroad. He, by the law merchant, undertakes some liability in respect of such indorsement abroad. The question is, How will he be affected by such indorsement abroad? Such an indorsement raises a contract between the immediate indorser and indorsee. Such an indorsement then raises a foreign contract, and this must be construed according to the law of the country in which it is made. The liability of each of these contracting parties to the other is to be determined by the law of the country in which the contract was made. this case the liability of the plaintiff to Monforte is there- fore to be measured by the law of Spain. The plaintiff then was liable to Monforte, though he gave no notice of the dishonour by non-acceptance. By an indorsement, of which the defendant has no right to complain, which by the law merchant he in effect authorized the plaintiff to make at pleasure, the plaintiff, by reason of the default of the drawer, though he did once receive value on the bill, is liable to pay on the bill. He brings his case within the definition of the defendant's liability to him. It follows that, by the law of England applied to the English contract made between the plaintiff and the defendant, the defendant is liable to the plaintiff. The rules and their application thus deduced were applied in the case of Rothschild v. In 25 ! Law. Contract by 616 ADDENDA TO VOL. I. International Currie, and in Hirschfield v. Smith. In both those cases, as in this, the contract sued on was an English contract of Indorsement. indorsement, made immediately between the plaintiff's indorsees and the defendant's indorsers. In both cases there had been subsequent foreign indorsements. In both cases the plaintiffs were, according to the construction of the foreign contracts of indorsement by foreign law, liable to the foreign subsequent indorsers, though they would not have been liable if such indorsers had been English indorsers. In both cases the plaintiffs were held, and I think rightly held, to be entitled to recover. The case of Gibbs v. Fremont, I W.R., 482, 9 Ex., 25, does not raise the same point. The only question was whether, as against the drawer, his contract was a Californian or a Washington contract, and it was held that it was Californian. The case of Aymar v. Sheldon, 12 Wendell's, Rep. (N. Y.), 439, seems to be in accordance with Rothschild v. Currie. I am of opinion that the judgment of Lord Coleridge was right, and that the appeal must be dismissed." Non-payment. Australian Colonies. Forgery. Banker's Lien. PAGE 264.-Dishonoured bills from the Australian Colonies are subject to re-exchange at the rate of ten per cent. PAGE 293.-Continued silence on the part of a person. whose signature upon a bill has been forged is not sufficient to preclude him from alleging the forgery, unless his con- duct has occasioned loss to, or prejudiced the position of the holder of the bill. Freeman v. Cooke, 2 Ex. 654 approved. Mackenzie v. The British Linen Company, Bank, House of Lords, from Court of Session, 3, 4, 8, II Feb., 1881, 29 W.R. 477; 6 L.R. Ap. 82; 44 L.T. 431. PAGE 341. In the case of Misa v. Currie and others, House of Lords, 23rd, 26th June, 1876, 35 L.T., N.S. 414, I L.R. Ap. cas. 544, 45 L.J. Ex. 414, 24 W.R. 1049, Misa on 11th February purchased from Lizardi in London bills on Cadiz at 15 days' date, which by custom, were to be paid for on next post day, 14th February. Lizardi was > + ADDENDA TO VOL. I. 617 Lien. largely indebted to Glyn, Mills, Currie, & Co., and from Banker's pressure on their part, he on the 13th handed to them, along with other securities, a Id. stamped document in these terms: "London, 14th February, 1873, M. Misa, Please to pay Messrs. Glyn, Mills, & Co., or bearer, the sum of nineteen hundred and ninety-nine pounds, three shillings, for bills negotiated to you last post. F. De Lizardi & Co." Mr. Bertram Currie deposed at the trial that it was usual for Lizardi to sell bills on the Exchange and then draw an order like this on the purchaser, and that that is the course of business when bills are sold, and that sometimes the person on whom such orders are drawn writes his name across them and makes them payable at his banker's. On the 14th Misa's agent, however, handed Glyn's a cheque for the above amount, in exchange for the order, but the same. afternoon, hearing that Lizardi had stopped payment, he directed Misa's bankers not to pay the cheque. The bills were remitted to Cadiz and were refused acceptance. In an action upon the cheque it was held that the bills were a good consideration for the cheque, and their subsequent dishonour was no defence; and that the pre-existing debt from Lizardi to Glyn's made them holders for value of the order drawn by him on Misa, and not merely agents for collection. Semble that even if they were such agents their lien on the balance due, gave them a property in the cheque. Judgment of the Court of Exchequer Chamber, 10 L.R. Ex. 153, 23 W.R. 450, affirmed. Lord Hatherley, in the course of his judgment, remarked-"It appears to me, therefore, that, as between Messrs. Glyn & Co. and Misa, the Court below were right in saying that there was a document of value to Glyn & Co. which had been depo- sited with them on the 13th to be put in force in the only mode in which it could be put in force, on the 14th, and that the cheque was given in consideration of the delivery up of that document. As I have said, if it were necessary, I should be prepared to hold that, in this case, Banker's Lien. 618 ADDENDA TO VOL. I. according to the decision which has been so often referred to, of Brandao v. Barnett, 3 C.B. 519, the custom of bankers is now perfectly well established, and must be known to every mercantile person in the city of London. Mr. Misa, like others, is bound by his knowledge of that custom. Of course, he must have been perfectly well aware that all moneys paid into a bank are subject to a lien, and that all documents, as well as moneys, deposited with a banker are subject to a lien in respect of any balance that may be due to him from his customer. When Misa's agent paid in this cheque due to Lizardi, he was aware that it was going into Glyn's bank; the very document that he got in exchange for it informed him of that fact. In reality, Lizardi, being at that time in a position in which he could have demanded the money, executed this negotiable instrument with every intent, as Misa knew, of paying it in to his bankers, and giving them that lien which the case I have referred to decided that they had upon all documents which came into their hands. . . . It would be a very serious thing indeed in its effect upon the numerous transactions carried on by means of cheques in the city of London, if we were to hold that any bankers holding these enormous drafts which are drawn daily, and which we read of in the accounts of the transactions of the clearing-house, are to be exposed to an inquiry as to what equities may subsist between any one of their customers, upon all of whose documents delivered to them they have supposed themselves to have a lien, and third persons, so that they might find themselves affected with equities with regard to that customer, and consequently be unable to give that credit which the right of lien at present enables them to give, and thereby contributes so much to carrying forward the vast trade of this metropolis." And in the Duke of Roxburghe v. Cox & Co., C.A., 10, 13 May, 1881, 30 W.R. 74, 17 L.R. Ch. D. 520, where an officer in the army owed defendants £647 in account current, and the sum of £3000, value of his commission, 5 ADDENDA TO VOL. I. 619 Lien. was paid to them by the Paymaster-General, it was held Banker's by Bacon, V.C., in an action by the plaintiff who claimed the whole £3000 in virtue of a charge upon all moneys to arise from the sale of the commission, that the defendants had a banker's lien upon the £3000 for the £647 due, and on appeal it was held that, independently of the question of banker's lien, the defendants had a common law right of set-off in respect of the balance due to them. Credits. PAGE 356.—And latterly, some of the Australian Banks Special with London offices, instead of granting to a colonial client, who wishes to remit money to London, a bill at 60 days' sight on their London offices, issue a letter in these terms: BANK, BRANCH, 18 GENTLEMEN, receipt of this letter credit the sum of ... We have to request that you will, 63 days after in account, with with which your office has been this day credited. To the Bank, London. Manager. Accountant. On presentation at the London office, the letter is stamped "confirmed," followed by the necessary signature. This document is, of course, not negotiable, though some banks discount it on the proper ad valorem stamp being affixed, while others require the nominee to draw a bill upon the bank to which the letter is addressed, get the instrument accepted and then discount it, the letter itself being retained by the accepting bank. The attention of the Colonial Revenue authorities had been drawn to the issue of these letters, but their opinion was that the practice, although really constituting an evasion of the spirit of the Colonial Stamp Acts, was not actually an offence according to the letter of the existing law. PAGE 373-CHEQUES PAYABLE TO ORDER.--But, under section 12, of the Crossed Cheque Act, 1876, 39 and 40 1 > { } 1 620 ADDENDA TO VOL. I. Protection to Vict., c. 81, post page 406, it has been decided by the case collecting Banker under of Matthiessen and Buck v. The London and County forged indorsement. (C Banking Co., C.P. Div., 21st May, 1879, 41 L.T., N.S. 35, that the protection given to bankers in the latter part of that section extends to all cheques crossed generally or specially to the banker, whether bearing the words not negotiable" or not. The action was by the payee of three crossed cheques against the defendants for a conversion, by receiving the proceeds of the cheques which had come into their hands with forged indorsements, and had been collected by them on account of two clients from the country bankers upon whom the cheques were drawn. In delivering judgment, Grove, J., said, "The 12th section says, a person taking a cheque crossed generally or specially, bearing in either case the words 'not negotiable,' shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had. Sec. 4 has already explained what a cheque crossed specially or generally is, and sec. 5 provides that where a cheque is already crossed generally, a lawful owner may cross it specially. Then come the words of sec. 12, which I have quoted. Now, it cannot be denied that the words 'not negotiable' are not only important, but that they are the most important words in the sentence. They make a distinct difference between cheques across which they are written, and cheques without them; so that when they are written across a cheque its negotiability is affected in such a way that the holder cannot have or give a better title to it than the person from whom he took it. Then comes the next half of the section, which says (I omit for the present the word 'but'): 'A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque prove defective, incur any liability to the true owner of the having received such payment.' cheque by reason only of Taking these two clauses ADDENDA TO VOL. I. 621 indorsement. as they appear by the plain reading and grammatical Protection to construction, they apply to different states of things. Banker under collecting The first clause applies to cheques limited by the words forged 'not negotiable,' the second clause, omitting these words, gives protection to bankers with respect to cheques crossed generally or specially. The second clause, then, says nothing about the words 'not negotiable.' Had the figure 13 been prefixed to it, making it the thirteenth separate section, no human being could have disputed the meaning. But it is contended that the use of the introductory word 'but' connects it, as if in the nature of a proviso, with the first clause; and that we are, therefore, to read the latter part of this section as if the words, 'bearing in either case the words not negotiable,' were repeated in it. We must see some very strong reason before we import words into a clause of an Act of Parliament which are not there already, but which are apparently omitted, and omitted, as we must assume, intentionally. Now, do we require to give that meaning to the language of the clause because the word but' is employed. It appears to me that the use of the word but can be quite sufficiently explained without putting such a forced construction as that to its presence. The first part of the section relates to persons generally, the second to bankers. Therefore, having given certain protection to all persons in respect of cheques on which the words 'not negotiable' are used, the section then goes on to place bankers in a different category, and to give them a further protection, whether 'banker' is included in the word 'person' or not. It is not necessary to decide how far a banker is affected by the first part of the section, because the protection given to him by the second part is general. He is not to incur any liability by reason only of having received payment of a cheque which is crossed generally or specially to himself. Why are we to construe this latter part of the section against the plain and obvious meaning of the words, and to import words from a different 1 } ! 1 1 { : 622 ADDENDA TO VOL. I. Protection to provision which are not repeated in it? especially when collecting Banker under the Legislature might have affected its purpose-if that forged indorsement. was its purpose-by inserting the words 'such a cheque' or 'so crossed' without repeating the words bearing in either case the words 'not negotiable.' Are we to suppose that the Legislature has made a gross blunder in its language, and to have expressed in 'plain' words that which they did not really mean? I should be forcing the words of the statute, and virtually making a new section, by interpolating words into this second clause which do not occur there, and which I cannot suppose to have been otherwise than intentionally omitted. I cannot see that there is anything in the reason of the thing, looking at the history of the subject in the past, to suggest the advisability of making such an alteration in violation of the plain words of the statute. It is not irrational to suppose that the Legislature wished to give to collecting bankers that protection which it was supposed that a previous statute (16 and 17 Vict., c. 59, s. 19) had already given, but which turned out, in fact, according to the decision in Ogden v. Benas not to have been given. For these reasons I am of opinion that the plain words of the Act must be followed, and that this demurrer must be overruled." Lindley, J. "I take the same view of the construction of the Act The Act is confined to crossed cheques, with which it exclusively deals; and I wish to confine the remarks I have to make to crossed cheques also. Now, the Act of Parliament in question has done more things than one. It has enacted that a crossed cheque is to be paid through a banker, and through a banker only. That practically makes it necessary for bankers to receive and collect these crossed cheques for their customers, and that is the position of a collecting bank. Then comes this question, what is the consequence if the bank does collect such cheques, and the customer from whom the cheque came happens to have a bad title? It is to my mind a little hard that in any case 14. } بھی مو ADDENDA TO VOL. I. 623 indorsement. a banker who collects money merely for his customers Protection to should incur liability by so doing, and it appears not Banker under collecting unreasonable that an enactment which really imposes new forged duties upon them should relieve them from some of their former liabilities. Now, sec. 12 first says what effect the words 'not negotiable' when written across cheques shall have, and then the second part goes on to say what the liabilities of the banker shall be with respect to the proceeds of cheques. If he has received payment for a customer of a crossed cheque in good faith and without negligence, he shall not incur any liability to the true owner in case his customer's title to the cheque turns out defective. If he has the cheque, it may be stopped in his hands, but if he has only the proceeds, this section relieves him from all liability whether the cheque bore the words 'not negotiable' on it or not. If he has done nothing more than collect it for his customer in the only way in which it can practically be done, the Act of Parliament says that he is not to be charged with any liability for having done so. That is the plain meaning of the 12th section. It is contended that a different meaning ought to be put upon it, and that the use of the word 'but' so far connects the latter part of it with the former as to import into the latter part the condition. that the cheques referred to shall bear the words 'not negotiable.' I think that 'but' is far too loose a word to control the plain meaning of a section of an Act of Parliament, and that the plaintiffs' contention is unfounded. The demurrer must be overruled."— Judgment for the defendants with costs. 1 features of PAGE 380.-Moreover, in the case of bills, as seen, the Distinguishing banker before payment must satisfy himself as to the Cheque. authority for per procuration indorsements. Unlike a bill or note, too, the cheque cannot be treated as a continuing security, but must be duly presented for payment by the holder. 龠 ​* 5 } Marked or Certified Cheques. Post-dated Cheques. 624 ADDENDA TO VOL. I. And the death of the drawer of a cheque operates, as we have seen, as a revocation of the banker's authority to pay, dissimilar to the case of drawer and drawee of a bill. PAGE 382.-It may be interesting to note the following from v. 42, p. 935 of BANK. MAG., November, 1882-In the United States a question has arisen out of a "certified cheque" for $254 drawn by a Chicago bank upon the New York Banking Association. The cheque was presented for certification to the latter bank, and by it duly certified. Subsequently it was "raised" to $2,540, and then offered to a broker in payment of bonds. Before accepting it the broker sent to the bank which had certified it, and inquired whether "that certification" was good. The teller replied in the affirmative, whereupon the broker accepted the cheque. When it was presented to the bank the fraud was detected, and payment refused. The broker then sued the bank, alleging that he had taken the cheque relying upon the representation of the teller that it was good. The Court of Appeal held that the bank was only liable for the sum it certified—namely, $254—and not for the full amount of the “raised" cheque. This liability, the court decided, was not varied by the representation made by the teller, who simply guaranteed that the certification was genuine, but gave no assurance that the cheque had not been raised." " PAGE 385.—On the subject of post-dated cheques, “arises the question," says the SOLICITORS' JOURNAL, 27th January, 1883, v. 27, p. 194, "when should a post-dated cheque be presented to the banker on whom it is drawn for payment? If presented on or after the date which it bears, the bank is bound to honour it in due course, as appears by the decision In that case a in Emanuel v. Robarts, 9 B. and S., 121. cheque had been presented for payment in the city of London before the date which it bore, and it was proved that there was a custom in the city to mark such a cheque on presentation "post-dated," and to refuse payment of it. ADDENDA TO VOL. I. 625 both then and at any time thereafter when it might be again Post-dated presented. There remains the question, what course should Cheques. banks not situate in the city adopt when post-dated cheques are presented for payment before the date they bear? In Watson v. Poulson, 15 Jur., IIII, Parke, B., said that if a banker paid a cheque (post-dated) without knowing of the false date, the payment was good, but he meant good under the Stamp Acts, and not that the banker might not render himself liable to the drawer. In the case of Da Silva v. Fuller, [see our previous volume, page 385,] it was held that a banker who pays a cheque before it is due is liable for any consequences that may ensue. It would, therefore, appear that a banker runs some risk who pays a post-dated cheque before the date it bears.” And it is suggested that post-dated cheques should be prac- tically abolished by making them payable on presentation without regard to their date at all. fraud of Cheque. PAGE 386. And in the case of the Guardians of the Alteration in Poor of the Halifax Union v. Wheelright, Ex. 8th May, drawer of 1875, where the rule was affirmed, it was observed by the Court that "a man cannot take advantage of his own wrong, and a man cannot complain of the consequences of his own default against a person who was misled by that default, and not through any fault of his own." ministrators. PAGE 391.—In a case where a Persian had a deposit with Executors the Bank of England, and he died in Persia, leaving a will, and Ad- by the law of which country neither a will nor a copy of it is allowed to go out of the possession of the Court, nor is the position of an administrator recognised, but the contents of the will are published by the Court in the presence of all the parties interested in the estate, each of whom receives a document certifying the share of the property to which he is entitled, and a certificate of this class was granted to the eldest son of the deceased, and recited that the funds at the Bank of England were his special property, the bank refused to transfer the money until a title by representation had ا Executors and Ad- ministrators. Probate Act, 20 & 21 Vic., c. 77. Court of Probate. 626 ADDENDA TO VOL. I. been created. The Probate Court, subject to the verifica- tion of the accuracy of the translation of the certificate of the Persian Court, granted letters of administration, with the certificate annexed, to the attorney of the eldest son of the deceased, limited to the property specified in the certi- ficate. In the goods of Dost Ali Khan, 6 L.R., P.D., 6; 49 L.J., 78. PAGE 392.-Formerly wills disposing of property in the public funds required to be proved in the Preroga- tive Court of the Archbishop of Canterbury, and, in cases of intestacy, letters of administration required to be obtained in the same Court, as the Bank of England did not acknowledge any other probates or letters of administration. But now, by 20 and 21 Vic., c. 77, being "an Act to amend the law relating to Probates and Letters of Administration in England," and which came into operation on 1st January, 1858, the testa- mentary jurisdiction "of all Ecclesiastical, Royal Peculiar, Peculiar, Manorial, and other Courts and Persons in England" is abolished, and is now vested "in a Court to be called the Court of Probate, to hold its ordinary sittings and to have its principal registry at such place or places in London or Middlesex as Her Majesty in Council shall from time to time appoint." And there are also established District Registries attached to and under the control of the Court.* * * By sec. 23 of the Act it is declared that "the Court of Probate shall be a Court of Record, and such Court shall have the same powers, and its grants and orders shall have the same effect, throughout all England, and in relation to the personal estate in all parts of England of deceased persons, as the Prerogative Court of the Archbishop of Canterbury and its grants and orders respectively now have in the province of Canterbury, or in the parts of such province, within its jurisdiction, and in relation to those matters and causes testamentary and those effects of deceased persons which are within the jurisdiction of the said Prerogative Court; and all duties which by statute or otherwise are imposed on or should be performed by Ordinaries generally, or on or by the said Prerogative Court, in respect of Probates, Administrations, or matters or causes testamentary, within their respective jurisdictions, shall be performed by the Court of Probate: provided that no suits for legacies or suits for the distribution of residues shall be entertained by the Court, or by any Court or person whose jurisdiction as to matters and causes testamentary is hereby abolished." } ADDENDA TO VOL. I. 627 PAGE 396.-But in order to follow trust money, it Trust Moneys. must be shown that the trust fund exists, and forms part of the fund claimed. Ex parte Hardcastle, in re Mawson, 11th April, 1881, 44 L.T., 525, where, after it was shown that the bank notes of which the trust fund And with reference to the granting of probates and administration by Probates and District Registrars, it is enacted, ss. 46 to 52, that " probate of a will or Administration letters of administration may, upon application for that purpose to the District may be granted Registry, be granted in common form by the District Registrar in the name of Registrars if it by District the Court of Probate, and under the Seal appointed to be used in such appear by District Registry, if it shall appear by affidavit of the person, or some or one affidavit that of the persons applying for the same, that the testator or intestate, as the Testator, &c., had a fixed place case may be, at the time of his death had a fixed place of abode within the of abode. district in which the application is made, such place of abode being stated in the affidavit, and such probate or letters of administration shall have effect over the personal estate of the deceased in all parts of England accordingly. S. 47. Such affidavit shall be conclusive for the purpose of authorizing the Affidavit to be grant, by the District Registrar, of probate or administration; and no such conclusive for grant of probate or administration shall be liable to be recalled, revoked, or authorizing otherwise impeached by reason that a testator or intestate had no fixed place of abode within the district at the time of his death; and every probate and administration granted by any such District Registrar shall effectually discharge and protect all persons paying to or dealing with any executor or administrator thereunder, notwithstanding the want of or defect in such affidavit, as is hereby required. grant of Probate. S. 48.-The District Registrar shall not grant probate or administration in District any case in which there is contention as to the grant, until such contention is Registrars not to terminated or disposed of by decree or otherwise, or in which it otherwise make grants appears to him that probate or administration ought not to be granted in where there is common form. for contention, &c. Grants. S. 49.-Notice of every application to any District Registrar for the grant Transmission of of probate or administration shall be transmitted by such District Registrar to Notice of the Registrars of the Principal Registry by the next post after such application Applications for shall have been made; and such notice shall specify the name and description, or addition (if any) of the testator or intestate, the time of his death, and the place of his abode at his decease as stated in the affidavit made in support of such application, and the name of the person by whom the application has been made, and such other particulars as may be directed by rules or orders under this Act; and no probate or administration shall be granted in Pursuance of such application until such District Registrar shall have received a certificate under the hand of one of the Registrars of the Principal Registry; that no other application appears to have been made in respect of the goods of the same deceased person, which certificate the said Registrar of the Principal Registry shall forward as soon as may be to the District Registrar; all such notices in respect of applications in the District Registries shall be filed and kept in the principal Registry, and the Registrars of the Principal Registry shall, with reference to every such notice, examine all notices of such applica- tions which may have been received from the several other District Registries, and the applications which may have been made for grants of probate or administration at the Principal Registry, so far as it may appear necessary to ascertain whether or no application for probate or administration in respect of the goods of the same deceased person may have been made in more than one Registry, and shall communicate with the District Registrars as occasion may require in relation to such applications. S. 50. In every case where it appears to a District Registrar that it is doubtful whether the probate or letters of administration which may be applied for should or should not be granted, or where any question arises in relation 3 } } 15 628 ADDENDA TO VOL. I. Trust Moneys. was composed had not been paid by the debtor to his banking account, the fund claimed, and that the account opened as a "Number 2 account" in contradistinction to his overdrawn account was proved not to have been consi- dered by the bank as a trust account, it was held that the cestuis que trust had no right to that fund. District Registrar in case grant to take the directions of the Judge. of doubt as to District Registrars to transmit Lists of Probates and to the grant, or application for the grant of any probate or administration, the District Registrar shall transmit a statement of the matter in question to the Registrars of the Court of Probate, who shall obtain the directions of the judge in relation thereto, and the judge may direct the District Registrar to proceed in the matter of the application according to such instructions as to the judge may seem necessary, or may forbid any further proceeding by the District Registrar in relation to the matter of such application, leaving the party applying for the grant in question to make application to the Court of Probate through its Principal Registry, or, if the case be within its jurisdiction, to a County Court. S. 51. On the first Thursday of every month, or oftener if required, by any rules or orders to be made in that behalf, every District Registrar shall transmit to the Registrars of the Principal Registry a list, in such form and Administrations containing such particulars as may be from time to time required by the Court and copies of of Probate, or by any rules or orders under this Act, of the grants of probate Wills. and administration made by such District Registrar up to the last preceding Saturday, and not included in a previous return, and also a copy, certified by the District Registrar to be a correct copy, of every will to which any such probate or administration relates. District S. 52.-Every District Registrar shall file and preserve all original wills of Registrars to which probate or letters of administration with the will annexed may be preserve original granteď by him, in the Public Registry of the District, subject to such regula- tions as the Judge of the Court of Probate may from time to time make in relation to the due preservation thereof, and the convenient inspection of the same. Wills. By s. 59 it is provided that "it shall not be obligatory on any person to Not obligatory to apply for Probate, apply for probate or administration to any District Registry, or through any &c., to District County Court, but in every case such application may be made through the Registries or Principal Registry of the Court of Probate, wherever the testator or intestate County Court, but may in every may at the time of his death have had his fixed place of abode; provided, that case be made to where in any contentious matter arising out of any such application it is shown Court of Probate. to the Court of Probate that the state of the property and place of abode of the deceased were such as to give contentious jurisdiction to the Judge of ja County Court, the Court of Probate may send the cause to such County Court, and the Judge thereof shall proceed therein as if such application and cause had been made to and arisen in his Court in the first instance.' Place of Deposit By s. 66 it is provided that "there shall be one place of deposit under the of original Wills. control of the Court of Probate, at such place in London or Middlesex as Her Majesty may by order in Council direct, in which all the original wills brought into the Court, or of which probate or administration with the will annexed is granted under this Act in the Principal Registry thereof, and copies of all wills, the originals whereof are to be preserved in the District Registries, and such other documents as the Court may direct, shall be deposited' and preserved, and may be inspected under the control of the Court and subject to the rules and orders under this Act. Judge to cause Calendars to be made from time to time in the Principal Registry, and to be printed. By s. 67, 'the Judge shall cause to be made from time to time in the Principal Registry of the Court of Probate calendars of the grants of probate and administration in the Principal Registry, and in the several District Registries of the Court, for such periods as the Judge may think fit, each such calendar to contain a note of every probate or administration with the will } } ADDENDA TO VOL. I. 629 The debtor, a solicitor, owed his bankers, in November, Trust Moneys. 1879, upwards of £4,000, and apprehensive that money paid in by him would be appropriated to that debt, he opened an account with another bank. In November, 1879, by the advice of the first-named bankers, he opened with them a Calendars to be annexed granted within the period therein specified, and also a note of every Judge to cause other administration granted within the same period, such respective notes made from time setting forth the dates of such grants, the Registry in which the grants were to time in the made, the names of the testators and intestates, the place and time of death, Principal the names and descriptions of the executors and administrators, and the value Registry, and to be printed. of the effects; and the calendars to be so made shall be printed as the same are from time to time completed. "" By s. 68, "the Registrar shall cause a printed copy of every calendar to be Registrar to transmitted through the post or otherwise to each of the District Registries, transmit printed and to the office of Her Majesty's Prerogative in Dublin, the office of the copies to certain Commissary of the county of Midlothian in Edinburgh, and such other offices, if any, as the Court of Probate shall from time to time by rule or order direct; and every printed copy of a calendar so transmitted as aforesaid shall be kept in the registry or office to which it is transmitted, and may be inspected by any person on payment of a fee of one shilling for each search, without reference to the number of calendars inspected." By s. 69, an official copy of the whole or any part of a will, or an official Official copy of certificate of the grant of any letters of administration may be obtained from whole or part of the Registry or District Registry where the will has been proved or the Will may be administration granted, on the payment of such fees as shall be fixed for the same by the rules and orders under this Act." obtained. With reference to the appointment of administrator, it is enacted by s. 73 Power as to that "where a person has died or shall die wholly intestate as to his personal Administrator. appointment of estate, or leaving a will affecting personal estate, but without having appointed an executor thereof willing and competent to take probate, or where the executor shall at the time of the death of such person be resident out of the United Kingdom of Great Britain and Ireland, and it shall appear to the Court to be necessary or convenient in any such case by reason of the insolvency of the estate of the deceased, or other special circumstances, to appoint some person to be the administrator of the personal estate of the deceased, or of any part of such personal estate, other than the person who, if this Act had not been passed, would by law have been entitled to a grant of administration of such personal estate, it shall not be obligatory upon the Court to grant administration of the personal estate of such deceased person to the person who, if this Act had not passed, would by law have been entitled to a grant thereof; but it shall be lawful for the Court, in its discretion, to appoint such person as the Court shall think fit to be such administrator upon his giving such security (if any) as the Court shall direct, and every such administration may be limited as the Court shall think fit." And as to payments upon probates or letters of administration it is enacted Persons, &c., by s. 78, that "all persons and corporations making or permitting to be made making payment any payment or transfer bona fide, upon any probate or letters of adminis- upon Probates granted for tration granted in respect of the estate of any deceased person under the Estate of authority of this Act, shall be indemnified and protected in so doing, notwith- deceased person standing any defect or circumstance whatsoever affecting the validity of such to be indemni- probate or letters of administration. >> fied. istrations shall be By secs. 81 to 83, "Every person to whom any grant of administration Persons to whom shall be committed shall give bond to the Judge of the Court of Probate to grant of Admin- enure for the benefit of the Judge for the time being, and, if the Court of committed shall Probate or (in the case of a grant from the District Registry) the District Registrar give Bond. shall require, with one or more surety or sureties, conditioned for duly } 630 ADDENDA TO VOL. I. Trust Moneys. number 2 account, to be kept separate from the first account, and to the full extent of which he was to be allowed to draw. On the 18th of that month he paid in £800, and on the following day another sum of £800 to the number 2 account. On 26th April, 1880, he filed a committed shall Persons to whom collecting, getting in, and administering the personal estate of the deceased, grant of Admin- which bond shall be in such form as the Judge shall from time to time by any istrations shall be general or special order direct: Provided that it shall not be necessary for the Solicitor for the affairs of the Treasury or the Solicitor of the Duchy of Lancaster applying for or obtaining administration to the use or benefit of Her Majesty to give any such bond as aforesaid. give Bond. Penalty on Bond. Power of Court to assign Bond. As to Deposi- tories for safe custody of the Wills of living persons. 20 and 21 Vict., c. 79. Probates granted in Ireland to be of like force as if originally granted in England on being resealed. 36 and 37 Vict., C. 52. For purposes of Act application may be made to a Registrar of a County Court. S. 82.-Such bond shall be in a penalty of double the amount under which the estate and effects of the deceased shall be sworn, unless the Court or District Registrar, as the case may be, shall in any case think fit to direct the same to be reduced, in which case it shall be lawful for the Court or District Registrar so to do, and the Court or District Registrar may also direct that more bonds than one shall be given, so as to limit the liability of any surety to such amount as the Court or District Registrar shall think reasonable. S. 83. The Court may, on application made on motion or petition in a summary way, and on being satisfied that the condition of any such bond has been broken, order one of the Registrars of the Court to assign the same to some person, to be named in such order, and such person, his executors or adminis- trators, shall thereupon be entitled to sue on the said bond in his own name, both at law and in equity, as if the same had been originally given to him instead of to the Judge of the Court, and shall be entitled to recover thereon as trustee for all persons interested the full amount recoverable in respect of any breach of the condition of the said bond." By Sec. 91, it is enacted that "one or more safe and convenient depository or depositories shall be provided under the control and direction of the Court of Probate, for all such wills of living persons as shall be deposited therein for safe custody; and all persons may deposit their wills in such depository upon payment of such fees and under such regulations as the Judge shall from time to time by any order direct. >> There is a similar provision to this in the Probate and Letters of Adminis tration Act for Ireland, s. 98, 20 and 21 Vict. c. 79, which also enacts, s. 95, that "when any probate or letters of administration to be granted by the Court of Probate in Ireland shall be produced to and a copy thereof deposited with the Registrars of the Court of Probate in England, such probate or letters of administration shall be sealed with the seal of the last-mentioned Court, and being duly stamped shall be of the like force and effect and have the same operation in England as if it had been originally granted by the Court of Probate in England.' On 28th July, 1873, was passed the 36 and 37 Vict. c. 52, "An Act for the Relief of Widows and Children of Intestates where the personal estate is of small value,” and by which the facilities for taking out letters of administration were increased and the attendant expenses reduced; sec. I, providing that "where the whole estate and effects of an intestate shall not exceed in value the sum of one hundred pounds, his widow or any one or more of his children, provided such widow or children respectively shall reside at a distance ex- ceeding three miles from the Registry of the Court of Probate having jurisdic- tion in the matter, may apply to the Registrar of the County Court within the district of which the intestate had his fixed place of abode at the time of his death, and the said Registrar shall fill up the usual papers required by the Court of Probate to lead to a grant of letters of administration of the estate and effects of the said intestate, and shall swear the applicant and attest the execution of the administration bond according to the practice of the Court of Probate, and shall then transmit the said papers by post to the Registrar ADDENDA TO VOL. I. 631 (6 The liquidation petition. At this time £799. 19s. 6d., the sum Trust Moneys. in dispute, was to the credit of number 2 account. bankers having paid themselves from securities held, laid no claim to the amount. In August, 1879, the debtor received the trust money, amounting to £1,200, the understanding being that £400 of this should be left with him as a loan, and the balance of £800 should be invested by him on mortgage. In concluding his judgment, Bacon, C.J., said: 'I take it that it is absolutely necessary that in all cases of this kind it should be distinctly made out that it is the trust fund in question. Here it is not till November, 1879, that the debtor deals with a sum of £800 at all, and then he pays in another sum of £800 to the bank. It is impos- sible to say that it was earmarked in any way. way. The bankers had to quiet his fears, told him he might start a second account, but that account was never supposed to be a trust fund. Nothing can be clearer than that the bank " of the Court of Probate having jurisdiction in the matter, who shall in due course make out and seal the letters of administration of the estate and effects of the said intestate, and transmit them by post to the said Registrar of the County Court, to be by him delivered to the party so applying for the same, without the payment of any fee for the same save as is provided by this Act. And by sec. 7, "The provisions of this Act shall apply to Ireland, subject Application of to the modifications following (that is to say): The term the Registrar of the County Court' shall be construed to mean the 'Registrar of the Civil Bill Court.' The term 'Court of Probate' shall be construed to mean the 'Court of Probate in Dublin. SCHEDULE. Where the whole estate and effects of the intestate shall not exceed in value twenty pounds, the sum of five shillings; and where the whole estate and effects shall exceed in value twenty pounds the sum of five shillings and the further sum of one shilling for every ten pounds or fraction of ten pounds by which the value shall exceed twenty pounds. Act to Ireland. And the benefits of this Act were extended to the children of poor intestate 38 and widows, by 38 and 39 Vict., c. 27, passed on 29th June, 1875, which enacts č. 27. that "where the whole estate and effects of an intestate widow shall not exceed in value the sum of £100, any one or more of her children, if they shall reside at a distance exceeding three miles from the Registry of the Court of Probate having jurisdiction in the matter, may apply to the Registrar of the County Court within the district in which the intestate had her fixed place of abode at the time of her death, and on compliance with the regulations prescribed in the said Act of 36 and 37 Vic., shall be entitled to the benefits in that case made and provided by the said Act, and the schedule thereunto annexed." Scotland is provided for by the 38 and 39 Vic., c. 41, passed 19th July, 1875, being "An Act for the relief of Widows and Children of Intestates in Scotland, where the personal estate is of small value," the limit, however, in this case being £150. 39 Vict., 38 and 39 Vict., C. 41. $ 1 632 ADDENDA TO VOL. I. Trust Moneys. notes came from a totally different source. It cannot be said that it was performing his obligation to pay in a similar sum obtained from elsewhere. The bankers say that the trustee never told them before the other trustee that it was a trust fund. The manner in which the matter was dealt with shows the character of it. He deals with it in the ordinary course of his business. There is no kind of iden- tification between the sums and the £800. In my opinion it is quite clear upon the facts proved that the sum referred to was part of the assets of the bankrupt, divisible among his creditors, notwithstanding the similarity to the trust fund." The very responsible and delicate position in which bankers may be placed when trustees have private as well as trust accounts with them, will be gathered from the case of Foxton v. The Manchester and Liverpool District Bank, Chan. Div., 23rd March, 1881, L.T., 44, N.S., 406, where the bank, having an account in the names of two trustees, each of whom had also private accounts, and who were allowed by the bank, which knew that the trustees were not beneficially interested in the trust funds, to transfer sums at different times from the trust account to their respective private overdrawn accounts, it was held that the cestuis que trustent were entitled to recover from the bank the sums so allowed to be transferred, and that it was immaterial whether or not the bank knew what were the circumstances of the trust, and also whether or not the bank profited by the transfer from the one account to the other, so long as they were aware that the money dealt with was trust money; and it was also held, following Wilson v. Moore, My. and K., 337, that in such a case the Statute of Limita- tions, 21 Jac., I.c. 16, would not constitute a defence to the action.* * The money had been left by the testator, William Hardman, who died in 1836, in trust for his three daughters. The latter were all married, and at the date of the action two of them were dead, leaving children, while the third was still living and had children also living. The plaintiffs being children ADDENDA TO VOL. I. 633 amount. PAGE 400.—According to Cumber v. Wane, 3 Str., 426; Satisfaction of debt by cheque I Sm. L.C. 7th edition, 341, a debt cannot be discharged for smaller by the payment of a smaller sum, a doctrine, however, as has been observed, 26 S.J. 592, which has been on every opportunity whittled away as much as possible, the recent case of Goddard v. O'Brien, 27th March, 1882, 9 L.R., Q.B. D. 37, 46 L.T. 306, seeming almost to reduce the state of The of Ann Foxton, one of the deceased daughters, commenced the action against the Bank on 2nd April, 1879. By their statement of claim they alleged that the transfers from the account of the trustees, Edmund Hardman and Henry Hardman, both since dead, were breaches of trust, that the bank had notice of the trust, and that the estates of E. Hardman and H. Hardman were insolvent and would only yield a very small dividend towards making up the losses occasioned by the breaches of trust, and that the plaintiffs had only recently discovered the circumstances. The plaintiffs claimed a declara- tion of the bank's liability to make good, with interest, the sums transferred from the trustees' account to the trustees' respective private accounts. judgment of Fry, J., before whom the case came, was as follows:-"This case is, in my judgment, a clear one. It appears that in the year 1840 an account was opened which was headed, 'The account of the 'Trustees of the late William Hardman,' that is, Edmund Hardman and Henry Hardman, and it appears that on the 30th January, 1843, Edmund Hardman drew a cheque on that account in his own favour to the extent of £3,000. It is signed, For the trustees of the late William Hardman,' in his own name. That cheque he paid into the bank with the direction that it should be placed to the credit of his account, which at that time was overdrawn, which had been the subject of anxiety to the bank managers, and the subject of corres- pondence between them and Edmund Hardman. Now, it appears to be plain that the bank could not derive the benent which they did from that payment, knowing it to be drawn from a trust fund, unless they were prepared to show that the payment was a legitimate and proper one, having reference to the terms of the trust. It is said that they did not know what the trust was at that time. That appears to me, I confess, to be immaterial, because those who knew that a fund is a trust fund cannot take possession of that fund for their own private benefit, except at the risk of being liable to refund it in the event of the trust being broken by the payment of the money. But, even if that be not so, I think, upon the evidence before me, I must infer that on the 30th January the Bank did know in substance who the cestuis que trust of the fund were, because I find that on the 13th May in the same year Mr. Wolfenden, who was the manager of the Bury branch of the bank, at which this transaction took place, in writing to the Manchester head office, said: "The parties interested in the property lately held by the bank in the names of the trustees of W. Hardman, I believe are the sisters of E. Hardman, and their families. I do not think E. H. (who has no children) has any direct interest in it.' He understood perfectly and with sufficient accuracy the persons interested in the fund, and with sufficient exactitude described them in that letter. When then did he first come to know who the persons interested in that fund were? Having regard to the admissions which have been made, I think I must consider that on the 30th January, 1843, he knew as much as he did in May of the same year. If so, it is plain that he knew who the cestuis que trust were. The same letter reminds the bank that they had taken £3,000 of the deposit by a transfer to his credit on the 1st Feb. last. On the 17th Feb., 1848, another 1,000 was drawn out of this bank by Edmund Hardman and was placed, by the direction of Edmund, to the credit of Henry. Now there can be no doubt, as it seems to me, that at that f ¿ I { 634 ADDENDA TO VOL. I. Satisfaction of the law to an absurdity. It now stands thus: If I owe debt by cheque £10 and pay £7 on an understanding that that is to satisfy for smaller amount. the whole debt, nevertheless the balance remains due; but if instead of giving £7 I give a cheque for £7, the whole debt will be discharged. The latter action was tried before the judge of the Southwark County Court, who, in his judgment on 12th January, 1882, found for the defendant, and held that the payment to and acceptance by the plaintiffs of the cheque for £100 in settlement of their claim of £125. 7s. 9d. was a good accord and satisfaction by reason of the cheque, being a negotiable security, though different from a promissory note, but that the payment of time they knew perfectly that this was trust money belonging to the sisters of these two brothers, and that they took it to pay the private account of Henry. It is said that they derived no benefit from it, and therefore are not within the principle of the case of Gray v. Johnston, L.R., 3 H. of L. 1. I am not satisfied that they did not derive benefit from it, because, if I look at the banking account, I find there were several bills, amounting to nearly £1,000, which were subsequently paid out of it. But that is immaterial, because they had distinct knowledge that the money belonged to the family of the three sisters, and they knew that they gave Henry the benefit of that, themselves making payments on the faith of the £1,000 which they paid to Henry's account. Then similar transactions took place in 1853, when Henry drew out the whole balance and paid it to his own credit. With regard to the pay- ments, the only observations which have been made on behalf of the defendants other than the one to which I am about to refer, are those I have already mentioned. The remaining point before me is this: It is said that the Statute of Limitations applies, or that it ought to apply. The case of Wilson v.. Moore, I My. and K. 126, 337, which was a very similar one, is a decision not only of the Master of the Rolls, but of the Lord Chancellor, and was pronounced as far back as 1834. In that case both the learned judges declined to allow the Statute of Limitations to operate in favour of the defendants. They declined so to do on two perfectly distinct grounds: the one that, even if the demand had been a legal one, the statute would not have operated; the other, which each of the learned judges put in the forefront of his decision, was the equitable ground. This is what the Lord Chancellor says: It is not necessary to dwell long on the defence set up on the ground of the lapse of time. If the defendants are bound to replace the stock sold, it is because they have made themselves accessories to a breach of trust by the executors; and whether a party has made himself liable directly by his conduct as a trustee, or by combining with the person who misapplies the trust fund over which he has the legal control, time will not run as in the case of an ordinary demand, for he is held in either case a trustee.' Mr. Cookson (who appeared for the defendants) has not been able to show me any case which has thrown the least doubt on the principle there mentioned. According to my notion, it is the common principle on which this Court acts. I shall hold myself bound by the decision of the Lord Chancellor, and therefore I dis- allow the plea of the Statute of Limitations. The result is that I must declare that the defendants are liable to make good those three sums, and direct an I inquiry in general terms whether any other sums are similarly situated. shall give interest at £5 per cent, and the plaintiffs must have the costs of the action." C ! ADDENDA TO VOL. I. 635 amount. £100 in cash would not have been a good accord and Satisfaction of debt by cheque satisfaction, and this decision, the Court, Grove, J., and for smaller Huddleston, B., considered right, the latter judge observing, "The doctrine of Cumber v. Wane is no doubt very much qualified by Sibree v. Tripp, 15 M. and W. 23, and I can- not find that better stated than in 'Smith's Leading Cases,' vol. I, 7th edition, p. 349: 'The general doctrine in Cumber v. Wane, and the reason of all the exceptions and distinc- tions which have been ingrafted upon it, may perhaps be summed up as follows, viz., that a creditor cannot bind himself by a simple agreement to accept a smaller sum in lieu of an ascertained debt of larger amount, such an agree- ment being nudum pactum, but if there be any benefit, or even legal possibility of benefit, to the creditor thrown in, that additional weight will turn the scale, and render the consideration sufficient to support the agreement.'" appeal was dismissed with costs. It may be added that the Judge of the County Court thought the case might be brought within the doctrine laid down in Yeomans v. Williams, L.R., Eq. 184; String v. Bird, 18 L.R., Eq. 315; and Ongley v. Ongley, 4 Ch. Div. 73, viz., that a creditor who has declared his intention to release a debtor under certain circumstances is bound to make good such release.* * I The "Payment," says Byles on Bills, 13th ed., p. 237, "by the debtor himself of a sum smaller than the debt is no satisfaction. (Fitch v. Sutton, 5 East., 230. Unless the demand be unliquidated. Wilkinson v. Byers, 1 Ad. and El. 106; 3 N. and M., 853, S.C.; Walters v. Smith, 2 B. and Ad., 889: Beaumont v. Greathead, 2 C.B., 494; Cooper v. Parker, 24 L.J., C.P., 68; 15 C.B., 822, S.C.) But payment of a smaller sum by a third person has been held to be a discharge of the whole debt. The defendant was drawer of á bill for £18 35. 11d., and the plaintiff had taken from the defendant's father £9 in satisfaction of the whole debt. The plaintiff, nothwithstanding, afterwards sued the defendant for the balance. But Abbott, C.J., said, “If the father did pay the smaller sum in satisfaction of this debt, it is a bar to the plaintiffs now recovering against the son, because, by suing the son, he commits a fraud on the father, whom he induced to advance his money on the faith of such advance being a discharge of his son from further liability." (Welby v. Drake, I Car. and Payne, 557; Cooper v. Parker, 15 C.B., 822). Payment of a smaller sum may be a satisfaction where that smaller sum is the result of an account stated, including cross demands (Smith v. Page, 15 M. and W., 683; Perry v. Atwood, 25 L.J., Q.B., 408; 6 E. and B., 691, S.C.) So although a contract by the defendant himself to pay a smaller sum f Change in Banking Firm denoted by Cheques. Alteration in date of cheque. Payment of Account- holder's Cheque at an- 636 ADDENDA TO VOL. I. { PAGE 410.—A change in a banking firm may be denoted by the requisite alteration of its cheque forms. This alteration upon the cheques supplied would amount to sufficient notice of the change to the client. PAGE 414-NINTH LINE FROM FOOT OF PAGE.- ALTERATION.-In Vance v. Lowther, 45 L.J., Ex. 200, 34 L.T. 286, where the payee of a cheque dated 2nd March, 1875, sent it for credit to his bankers, and the person to whom it was entrusted absconded with it, and, after altering the date to 26th March, 1875, passed it to the plaintiff, who took it in ignorance of the alteration, without negligence and for value, it was held in an action on the cheque against the drawer that the alteration of the date was a material one, and invalidated the cheque. PAGE 417.-On an account-holder wishing his cheques to be paid at another branch, or by any of the Bank's other Branch correspondents, the arrangement should be effected by the manager through head office, and not direct with the branch or correspondent. or Bank. sentation. • PAGE 427-OPINIONS.-FALSE REPRESENTATION.- False Repre- A referee, in answer to an inquiry by A as to whether B was responsible enough to lease premises of the annual value of £400, and whether he would be "a safe and advisable tenant," wrote: "I have much pleasure in replying affirmatively.” On this B was accepted as tenant, but he afterwards deserted the premises without paying any rent. The referee had no intention to deceive, though at the time he knew B to be without substantial means, and to have twice failed in businesses similar to that which he intended to carry on in the premises in question. Held that the referee was answerable to A in damages for can be no satisfaction unless it be negotiable (Sibree v. Tripp); yet a contract by a third person to do so may be. Thus, the taking a bill from one of the two partners may operate as a satisfaction of the joint debt; for the sole liability of one person may, in some instances, be more advantageous than his liability jointly with another. Thompson v. Percival, 5 B. and Ad., 925; 3 N. and M., 667, S.C.; Henderson v. Stobart, 5 Exch., 99; and see Belshaw v. Bush, 11 C.B., 191. "" } ADDENDA TO VOL. I. 637 misrepresentation. Decision of Bacon, V.C., reversed. False Repre- Leddell v. Mc.Dougal, 136 W.R. Dig., 1st Oct., 1881. And in Nordberg v. The Trade Auxiliary Co.- Stubbs and Co.-42 BANK. MAG., 43, January, 1882, where the defendants had reported that J. and F. C., Glasgow, "had been some time in business as commission agents, &c., were considered respectable, and reputed good for the sum quoted, £300," the plaintiff in consequence trusted them to the extent of £259. 7s. 6d., and had only been paid 6d. in the pound of his debt, the jury returned a verdict for him for the amount claimed —£253. The defendants had intimated that "the agency would not be responsible for losses arising from inaccurate information," and that "the greatest care was exercised to prevent the possibility of error." On receipt of the plaintiff's inquiry they had sent their Glasgow agent, who, along with the secretary, was called as a witness, who said he consulted a firm of iron merchants, &c., and the Glasgow Bank. They told him that the objects of the inquiry were respectable, and the landlord stated that the rent due to him had been paid. These were the details sent to the defendants, who, in their answer to the plaintiff, had also stated there was no registered information against J. and F. C. sentation. Women. PAGE 476.— MARRIED WOMEN. — LIABILITIES OF Married WIFE.-But, on appeal of Lady Louisa FitzGibbon, Liabilities that portion of the decision of Vice-Chancellor Malins of Wife. in Pike v. FitzGibbon referring to after-acquired property and property subject to restraint on anticipation, was reversed by the Court of Appeal, 26th and 28th March, 1881, who held that judgment obtained against a married woman could extend only to property which was her separate estate without restraint on anticipation, at the time when her engagements were entered into, and that it could not extend to after-acquired separate estate, or to separate estate which, when the engagements } { Y L t ་ : Married Women. 638 ADDENDA TO VOL. I. were entered into, was subject to a restraint on anti- cipation, although at the date of the judgment the restraint had become inoperative by the death of the Anticipation. husband. In the contention for the appellant, it was Restraint on New Law introduced by Act of 1882. stated that the Vice-Chancellor had carried the doctrine of separate estate further than it had ever been carried before, that there was no jurisdiction to attach property which at the date of the engagements entered into was subject to restraint on anticipation, Johnson v. Gallagher, 9 W.R. 506, 3 De G., F. and J. 494, Roberts v. Watkins, 46 L.J. Q.B. 552, Re Sykes' Trusts, 2 J. and H. 419, and that restraint on anticipation was a personal disability to enter into any contract so as to affect the property or alienate it. Owens v. Dickenson, Cr. and Ph. 48, Baggett v. Meux, 7 Coll., 138. After-acquired property, however, will now, under sec. I sub-sec. 4 of the 45 and 46 Vict. c. 75, being "an Act to consolidate and amend the Acts relating to the property of married women," passed 18th August, 1882, and in opera- tion from 1st January, 1883, be liable for her engagements equally with that which she had at the time of making the contract. This Act, one of a series of very valuable and important Acts recently passed, and doing great credit to the Legislature in a most trying and arduous session, not only consolidates the Acts of 1870 and 1874, but entirely alters the legal status of married women, and releases them from all the disabilities of coverture. So effectual and thorough a change indeed has been made in their favour, that alarm has been excited to such an extent in the mind's of numerous members of the legal profession as to prompt them to suggest steps for the repeal of the Act "at the next opportunity." They, however, are not alone in their opposition to the measure, as many public writers have attacked it, drawing a harrowing picture of the domestic dissensions and strife which will be occasioned by it, and the appalling effect it will have upon the social system at 1 1 ADDENDA TO VOL. I. 639 Women. Act of 1882. large.* Taking a more hopeful view, however, there is no Married doubt that in many cases the new law will prove highly New Law beneficial to the objects of it; and it may be safely asserted introduced by that to the Banker it will come as a happy relief, banishing anxiety, doubt, and trouble, and freeing him from the many snares and pitfalls that have beset him in his transactions with married couples. In future, as will be seen from the Act, infra, a married woman may, amongst other things, bank, become an executrix or a trustee, trade, invest, and acquire or sell shares, and otherwise contract in her own name and without the concurrence of her husband. Settle- ments, however, are not interferred with, nor restraints on anticipation, and should parties contract themselves out of the Act, then, notice being given to the Banker, the position of the latter would be the same as before the Act, and the various forms we have given still prove useful.† } * As to some of the legal effects of the Act, the Judge, Mr. Daniel, Q.C., of the Bradford County Court observed, 9th January, 1883, "that there had now been introduced into the household a state of things, with respect to property, which never existed before. There was now one household with two distinct owners of property in that household, and no means known to the law for Husband and discovering which was the property of the one or of the other. wife now were not tenants in common, but joint-tenants; they were simply separate owners of one household, and when the officer of the law, whether it was the high bailiff or the sheriff, went into the house, it was impossible for him to know, except from what was told him, what was the husband's or what was the wife's property. It was possible, and he was afraid more than possible, that officers would find themselves in this position when they went to levy an execution, that the husband or the wife, as the case might be, would say, "That is mine.' Litigation must arise. High bailiffs were sometimes placed in a difficulty when claims were made and it could not be found out exactly who was claiming. A sale was effected, and the claimant came forward afterwards. In the case of a wife coming forward they would know who the claimant was, and it would lead to an interpleader. But supposing the wiſe failed to establish her claim she would have to pay the costs, and where would those costs come from? Difficulties of that sort would arise, and could only be prevented by those who sold goods being careful not to part with them before they got the money. It would considerably affect travelling drapers in regard to the wives, with whom they principally dealt." If, however, all this, and other difficulties alluded to by the Judge, conduced, as he hoped they would do, to the cessation of the credit system and the adoption of the practice of selling for cash only, a very beneficial end would be attained. + The following are the provisions in detail of the Act :— I. (1.) A married woman shall, in accordance with the provisions of this Act, Married woman be capable of acquiring, holding, and disposing by will or otherwise, of any holding property to be capable of real or personal property as her separate property, in the same manner as if and ofcontracting she were a feme sole, without the intervention of any trustee. as a feme sole. J 1 Married Women. New Law introduced by Act of 1882. Property of a woman married 640 ADDENDA TO VOL. I. With reference to the provisions of the Act as under, it may be noted that with regard to:- Sec. I., in the case of settlements, trustees will still be necessary, but it would appear that in disposing of realty coming to her under the Act she can do so without the (2.) A married woman shall be capable of entering into and rendering herself liable in respect of and to the extent of her separate property on any contract, and of suing and being sued, either in contract or in tort, or other- wise, in all respects as if she were a feme sole, and her husband need not be joined with her as plaintiff or defendant, or be made a party to any action or other legal proceeding brought by or taken against her; and any damages or costs recovered by her in any such action or proceeding shall be her separate property; and any damages or costs recovered against her in any such action or proceeding shall be payable out of her separate property, and not otherwise. (3.) Every contract entered into by a married woman shall be deemed to be a contract entered into by her with respect to and to bind her separate property, unless the contrary be shown. (4.) Every contract entered into by a married woman with respect to and to bind her separate property shall bind not only the separate property which she is possessed of or entitled to at the date of the contract, but also all separate property which she may thereafter acquire. (5.) Every married woman carrying on a trade separately from her husband shall, in respect of her separate property, be subject to the bankruptcy laws in the same way as if she were a feme sole. 2. Every woman who marries after the commencement of this Act shall be entitled to have and to hold as her separate property and to dispose of in manner aforesaid all real and personal property which shall belong to her at be held by her as the time of marriage, or shall be acquired by or devolve upon her after after the Act to a feme sole. husband. marriage, including any wages, earnings, money, and property gained or acquired by her in any employment, trade, or occupation in which she is engaged, or which she carries on separately from her husband, or by the exercise of any literary, artistic, or scientific skill. Loans by wife to 3. Any money or other estate of the wife lent or entrusted by her to her husband for the purpose of any trade or business carried on by him, or otherwise, shall be treated as assets of her husband's estate in case of his bankruptcy, under reservation of the wife's claim to a dividend as a creditor for the amount or value of such money or other estate after, but not before, all claims of the other creditors of the husband for valuable consideration in money or money's worth have been satisfied. Execution of general power. Property ac- quired after the Act by a woman married before the Act to be held by her as a feme sole. As to stock, &c., to which a married woman is entitled. 4. The execution of a general power by will by a married woman shall have the effect of making the property appointed liable for her debts and other liabilities in the same manner as her separate estate is made liable under this Act. 5. Every woman married before the commencement of this Act shall be entitled to have and to hold and to dispose of in manner aforesaid as her separate property all real and personal property, her title to which, whether vested or contingent, and whether in possession, reversion, or remainder, shall accrue after the commencement of this Act, including any wages, earnings, money, and property so gained or acquired by her as aforesaid. 6. All deposits in any post office or other savings bank, or in any other bank, all annuities granted by the Commissioners for the Reduction of the National Debt or by any other person, and all sums forming part of the public stocks or funds, or of any other stocks or funds transferable in the books of the Governor and Company of the Bank of England, or of any other bank, which at the commencement of this Act are standing in the sole name of a married woman, and all shares, stock, debentures, debenture stock, or other interests of or in any other corporation, company, or public body, municipal, ADDENDA TO VOL. I. 641 Women. necessity of an acknowledgment before a commissioner, as Married well as without the concurrence of her husband. Sub-sec. Act of 1882. 2. A husband will apparently still be liable, under the Notes on common law, for his wife's torts, should procedure be taken Torts. against him. Sec. I. married woman commercial, or otherwise, or of or in any industrial, provident, friendly, As to stock, &c., benefit, building, or loan society, which at the commencement of this to which a Act are standing in her name, shall be deemed, unless and until the is entitled. contrary be shown, to be the separate property of such married woman; and the fact that any such deposit, annuity, sum forming part of the public stocks or funds, or of any other stocks or funds transferable in the books of the Governor and Company of the Bank of England or of any other bank, share, stock, debenture, debenture stock, or other interest as aforesaid, is standing in the sole name of a married woman, shall be sufficient primâ facie evidence that she is beneficially entitled thereto for her separate use, so as to authorise and empower her to receive or transfer the same, and to receive the dividends, interests, and profits thereof, without the concurrence of her husband, and to indemnify the Postmaster-General, the Commissioners for the Reduction of the National Debt, the Governor and Company of the Bank of England, the Governor and Company of the Bank of Ireland, and all directors, managers, and trustees of every such bank, corporation, company, public body, or society as aforesaid, in respect thereof. woman. 7. All sums forming part of the public stocks or funds, or of any other As to stock, &c., stocks or funds transferable in the books of the Bank of England or of to be transferred, any other bank, and all such deposits and annuities respectively as are &c., to a married mentioned in the last preceding section, and all shares, stock, debentures, debenture stock, and other interests of or in any such corporation, company, public body, or society as aforesaid, which after the commencement of this Act shall be allotted to or placed, registered, or transferred in or into or made to stand in the sole name of any married woman shall be deemed, unless and until the contrary be shown, to be her separate property, in respect of which so far as any liability may be incident thereto her separate estate shall alone be liable, whether the same shall be so expressed in the document whereby her title to the same is created or certified, or in the books or register wherein her title is entered or recorded, or not. Provided always, that nothing in this Act shall require or authorise any corporation or joint stock company to admit any married woman to be a holder of any shares or stock therein, to which any liability may be incident, contrary to the provisions of any Act of Parliament, charter, by-law, articles of associa- tion, or deed of settlement regulating such corporation or company. 8. All the provisions hereinbefore contained as to deposits in any post Investments in office or other savings bank, or in any other bank, annuities granted by married women joint names of the Commissioners for the Reduction of the National Debt or by any and others. other person, sums forming part of the public stocks or funds, or of any other stocks or funds transferable in the books of the Bank of England or of any other bank, shares, stock, debentures, debenture stock, or other interests of or in any such corporation, company, public body, or society as aforesaid respectively, which at the commencement of this Act shall be standing in the sole name of a married woman, or which, after that time, shall be allotted to, or placed, registered, or transferred to or into, or made to stand in, the sole name of a married woman, shall respectively extend and apply, so far as relates to the estate, right, title, or interest of the married woman, to any of the particulars aforesaid which, at the commencement of this Act, or at any time afterwards, shall be standing in, or shall be allotted to, placed, registered, or transferred to or into, or made to stand in, the name of any married woman jointly with any persons or person other than her husband. P P Married Women. Act of 1882. Notes on Sec. I. Petition. As to stock, &c., standing in the joint names of a married woman and others. Fraudulent in- vestments with money of husband. Moneys payable under policy of assurance not to form part of estate of the insured. 642 ADDENDA TO VOL. I. Under this sub-section it has been decided that a married woman has a right to petition the Court without joining her husband. In re Outwin's Trusts, before Fry, J., 16th February, 1883, 27 S.J. 276, 31 W.R. 374- In this case a petition was presented for the appointment of new trustees of a will. Two of the petitioners were married 9. It shall not be necessary for the husband of any married woman, in respect of her interest, to join in the transfer of any such annuity or deposit as aforesaid, or any sum forming part of the public stocks or funds, or of any other stocks or funds transferable as aforesaid, or any share, stock, debenture, debenture stock, or other benefit, right, claim, or other interest of or in any such corporation, company, public body, or society as aforesaid, which is now or shall at any time hereafter be standing in the sole name of any married woman, or in the joint names of such married woman and any other person or persons not being her husband. 10. If any investment in any such deposit or annuity as aforesaid, or in any of the public stocks or funds, or in any other stocks or funds. transferable as aforesaid, or in any share, stock, debenture, or debenture stock of any corporation, company, or public body, municipal, commercial, or otherwise, or in any share, debenture, benefit, right, or claim what- soever in, to, or upon the funds of any industrial, provident, friendly, benefit, building, or loan society, shall have been made by a married woman by means of moneys of her husband, without his consent, the Court may, upon an application under section 17 of this Act, order such invest- ment, and the dividends thereof, or any part thereof, to be transferred and paid respectively to the husband; and nothing in this Act contained shall give validity as against creditors of the husband, to any gift by a husband to his wife, of any property which, after such gift, shall continue to be in the order and disposition or reputed ownership of the husband, or to any deposit or other investment of moneys of the husband made by or in the name of his wife in fraud of his creditors; but any moneys so deposited or invested may be followed as if this Act had not passed. II. A married woman may by virtue of the power of making contracts hereinbefore contained, effect a policy upon her own life or the life of her husband for her separate use; and the same and all benefit thereof shall enure accordingly. A policy of assurance effected by any man on his own life, and expressed to be for the benefit of his wife, or of his children, or of his wife and children, or any of them, or by any woman on her own life, and expressed to be for the benefit of her husband, or for her children, or of her husband and children, or any of them, shall create a trust in favour of the objects therein named, and the moneys payable under any such policy shall not, so long as any object of the trust remains unperformed, form part of the estate of the insured, or be subject to his or her debts: Provided, that if it shall be proved that the policy was effected and the premiums paid with intent to defraud the creditors of the insured, they shall be entitled to receive, out of the moneys payable under the policy, a sum equal to the premiums so paid. The insured may by the policy, or by any memorandum under his or her hand, appoint a trustee or trustees of the moneys payable under the policy, and from time to time appoint a new trustee or new trustees thereof, and may make provision for the appointment of a new trustee or new trustees thereof, and for the investment of the moneys payable under any such policy. In default of any such appointment of a trustee, such policy, immediately on its being effected, shall vest in the insured and his or her legal personal representatives, in trust for the purposes aforesaid. If, at the J 1 { } ADDENDA TO VOL. I. 643 Women. women, who under the will were entitled, subject to a Married life-tenancy, to absolute interests in remainder, with an Act of 1882. executory gift over to their issue in the event of their Notes on dying in the lifetime of the tenant for life. Their husbands Petition. had been joined as co-petitioners, and the question was and Sec. I. time of the death of the insured, or at any time afterwards, there shall be no Moneys payable trustee, or it shall be expedient to appoint a new trustee or new trustees, a under policy of trustee or trustees or a new trustee or new trustees may be appointed by any assurance not to form part of court having jurisdiction under the provisions of the Trustee Act, 1850, 13 estate of the 14 Vict., c. 60, or the Acts amending and extending the same. The receipt of insured. a trustee or trustees duly appointed, or, in default of any such appointment, or in default of notice to the insurance office, the receipt of the legal personal representative of the insured shall be a discharge to the office for the sum secured by the policy, or for the value thereof, in whole or in part. 12. Every woman, whether married before or after this Act, shall have Remedies of in her own name against all persons whomsoever, including her husband, the married woman same civil remedies, and also (subject, as regards her husband, to the proviso and security of for protection hereinafter contained) the same remedies and redress by way of criminal separate proceedings, for the protection and security of her own separate property, as if property. such property belonged to her as a feme sole, but, except as aforesaid, no husband or wife shall be entitled to sue the other for a tort. In any indictment or other proceeding under this section it shall be sufficient to allege such property to be her property; and in any proceeding under this section a husband or wife shall be competent to give evidence against each other, any statute or rule of law to the contrary notwithstanding: Provided always, that no criminal proceeding shall be taken by any wife against her husband by virtue of this Act while they are living together, as to or concerning any property claimed by her, nor while they are living apart, as to or concerning any act done by the husband while they were living together, concerning property claimed by the wife, unless such property shall have been wrongfully taken by the husband when leaving or deserting, or about to leave or desert his wife. 13. A woman after her marriage shall continue to be liable in respect Wife's ante- and to the extent of her separate property for all debts contracted, and nuptial debts all contracts entered into or wrongs committed by her before her marriage, and liabilities. including any sums for which she may be liable as a contributory, either before or after she has been placed on the list of contributories, under and by virtue of the Acts relating to joint stock companies; and she may be sued for any such debt and for any liability in damages or other- wise under any such contract, or in respect of any such wrong; and all sums recovered against her in respect thereof, or for any costs relating thereto, shall be payable out of her separate property; and, as between her and her husband, unless there be any contract between them to the contrary, her separate property shall be deemed to be primarily liable for all such debts, contracts, or wrongs, and for all damages or costs recovered in respect thereof: Provided always, that nothing in this Act shall operate to increase or diminish the liability of any woman married before the commence- ment of this Act, for any such debt, contract, or wrong, as aforesaid, except as to any separate property to which she may become entitled by virtue of this Act, and to which she would not have been entitled for her separate use under the Acts hereby repealed or otherwise, if this Act had not passed. 14. A husband shall be liable for the debts of his wife contracted, Husband to be and for all contracts entered into and wrongs committed by her before liable for his marriage, including any liabilities to which she may be so subject under wife's debts the Acts relating to joint stock companies as aforesaid, to the extent of all marriage to a property whatsoever belonging to his wife which he shall have acquired or certain extent. contracted before } } Married Women. 644 ADDENDA TO VOL. I. raised whether the petition ought to be amended by Act of 1882. striking out the names of the husbands. Fry, J., held that Notes on Sec. I. Petition. Husband to be liable for his wife's debts contracted before marriage to a certain extent. Suits for ante- the married women were suing within the meaning of the above provision, and that the petition should be amended by striking out the names of the husbands. become entitled to from or through his wife, after deducting therefrom any payments made by him, and any sums for which judgment may have been bona fide recovered against him in any proceeding at law, in respect of any such debts, contracts, or wrongs for or in respect of which his wife was liable before her marriage as aforesaid; but he shall not be liable for the same any further or otherwise; and any court in which a husband shall be sued for any such debt shall have power to direct any inquiry or proceedings which it may think proper for the purpose of ascertaining the nature, amount, or value of such property: Provided always, that nothing in this Act contained shall operate to increase or diminish the liability of any husband married before the commencement of this Act for or in respect of any such debt or other liability of his wife as aforesaid. 15. A husband and wife may be jointly sued in respect of any such nuptial liabilities. debt or other liability (whether for contract or for any wrong) contracted or incurred by the wife before marriage as aforesaid, if the plaintiff in the action shall seek to establish his claim, either wholly or in part, against both of them; and if in any such action, or in any action brought in respect of any such debt or liability against the husband alone, it is not found that the husband is liable in respect of any property of the wife so acquired by him or to which he shall have become so entitled as aforesaid, he shall have judgment for his costs of defence, whatever may be the result of the action against the wife if jointly sued with him; and in any such action against husband and wife jointly if it appears that the husband is liable for the debt or damages recovered, or any part thereof, the judgment to the extent of the amount for which the husband is liable shall be a joint judgment against the husband personally and against the wife as to her separate property; and as to the residue, if any, of such debt and damages, the judgment shall be a separate judgment against the wife as to her separate property only. Act of wife liable to criminal proceedings. Questions be- tween husband and wife as to property to be decided in a summary way. 16. A wife doing any act with respect to any property of her husband, which, if done by the husband with respect to property of the wife, would make the husband liable to criminal proceedings by the wife under this Act, shall in like manner be liable to criminal proceedings by her husband.) 17. In any question between husband and wife as to the title to or possession of property, either party, or any such bank, corporation, com pany, public body, or society as aforesaid, in whose books any stocks, funds or shares of either party are standing, may apply by summons or otherwise in a summary way to any Judge of the High Court of Justice in England or in Ireland, according as such property is in England or Ireland, or (at the option of the applicant irrespectively of the value of the property in dispute) in England, to the Judge of the County Court of the district, or in Ireland to the Chairman of the Civil Bill Court of the division in which either party resides, and the Judge of the High Court of Justice or of the County Court, or the Chairman of the Civil Bill Court (as the case may be) may make such order with respect to the property in dispute, and as to the costs of and consequent on the application as he thinks fit, or may direct such application to stand over from time to time, and any inquiry touching the matters in question to be made in such manner as he shall think fit: Provided always, that any order of a Judge of the High Court of Justice to be made under the provisions of this section shall be subject to appeal in the same way as an order made by the same Judge in a suit pending or on an equitable plaint in the said court would be; and any order of a County or Civil Bill Court under the provisions of this section shall be subject to appeal in the same way as any other order made ADDENDA TO VOL. I. 645 Women. In Jones v. Jones, before the Judge of the Salford County Married Court, 13th March, 1883, it was held that there was nothing Act of 1882. to limit the right of a married woman to bring an action Notes on after the 1st January, 1883, in respect of a wrong committed Action. upon her before the statute was passed, except the Statute of Limitations. 27 S.J. 350. Sec. I. and wife as to by the same Court would be, and all proceedings in a County Court or Civil Bill Questions be- Court under this section in which, by reason of the value of the property in tween husband dispute, such Court would not have had jurisdiction if this Act or the Married property to be Women's Property Act, 1870, had not passed, at the option of the defendant decided in a or respondent to such proceedings, be removed as of right into the High summary way. Court of Justice in England or Ireland (as the case may be), by writ of certiorari or otherwise as may be prescribed by any rule of such High Court; but any order made or act done in the course of such proceedings prior to such removal shall be valid, unless order shall be made to the contrary by such High Court: Provided also, that the Jndge of the High Court of Justice or of the County Court, or the Chairman of the Civil Bill Court, if either party so require, may hear any such application in his private room: Provided also, that any such bank, corporation, company, public body, or society as afore- said, shall, in the matter of any such application for the purposes of costs or otherwise, be treated as a stakeholder only. or trustee. 18. A married woman who is an executrix or administratrix alone or Married woman jointly with any other person or persons of the estate of any deceased as an executrix person, or a trustee alone or jointly as aforesaid of property subject to any trust, may sue or be sued, and maytransfer or join in transferring any such annuity or deposit as aforesaid, or any sum forming part of the public stocks or funds, or of any other stocks or funds transferable as aforesaid, or any share, stock, debenture, debenture stock, or other benefit, right, claim, or other interest of or in any such corporation, company, public body, or society in that character, without her husband, as if she were a feme sole. 19. Nothing in this Act contained shall interfere with or affect any Saving of existing settlement or agreement for a settlement made or to be made, whether before settlements, and the power to or after marriage, respecting the property of any married woman, or shall make future interfere with or render inoperative any restriction against anticipation at settlements. present attached or to be hereafter attached to the enjoyment of any property or income by a woman under any settlement, agreement for a settlement, will, or other instrument; but no restriction against anticipation contained in any settlement or agreement for a settlement of a woman's own property to be made or entered into by herself shall have any validity against debts contracted by her before marriage, and no settlement or agreement for a settlement shall have any greater force or validity against creditors of such woman than a like settlement or agreement for a settlement made or entered into by a man would have against his creditors. parish for the 20. Where in England the husband of any woman having separate Married woman property becomes chargeable to any union or parish, the justices having to be liable to the jurisdiction in such union or parish may, in petty sessions assembled, upon maintenance of application of the guardians of the poor, issue a summons against the wife, her husband. and make and enforce such order against her for the maintenance of her husband out of such separate property as by the 33rd section of the Poor Law Amendment Act, 1868, 31 and 32 Vict., c. 122, they may now make and enforce against a husband for the maintenance of his wife if she becomes chargeable to any union or parish. Where in Ireland relief is given under the provisions of the Acts relating to the relief of the destitute poor to the husband of any woman having separate property, the cost price of such relief is hereby declared to be a loan from the guardians of the union in which the same shall be given, and shall be recoverable from such woman as if she were a feme sole by the same actions and proceedings as money lent. 1 ? *** Married Women. Notes on 646 ADDENDA TO VOL. I. In a testamentary suit, the Court of Probate refused to Act of 1882. require security for costs from married women who, as executors, propounded a will in their own names, without joining their husbands with them in the suit. Threlfall v. Wilson, 6th February, 1883, 31 W.R. 508. Sec. I. Suing. Contracting, &c. On Sec. 2. Curtesy, Married woman Sub-sec. 3. A wife would appear to have still power to contract, as agent, for her husband, so as to render him, and not her separate property, liable. Sub-sec. 4 alters, as we have seen, the law as to the wife's after-acquired property in connection with her contracts, but query as to her torts. Sub-sec. 5. Query as to whether a married woman not "carrying on a trade separately from her husband" can be made a bankrupt. Sec. 2. A husband would still appear to be entitled to his right to curtesy in his wife's estate undisposed of during her lifetime. 21. A married woman having separate property shall be subject to all to be liable to the such liability for the maintenance of her children and grandchildren as the parish for the husband is now by law subject to for the maintenance of her children and grandchildren: Provided always, that nothing in this Act shall relieve her husband from any liability imposed upon him by law to maintain her children or grandchildren. maintenance of her children. Repeal of 33 and 34 Vict., c. 93, 37 and 38 Vict., C. 50. Legal represen- tative of married woman. Interpretation of terms. Commencement of Act. Extent of Act. Short title. 22. The Married Women's Property Act, 1870, and the Married Women's Property Act, 1870, Amendment Act, 1874, are hereby repealed: Provided that such repeal shall not affect any act done or right acquired while either of such Acts was in force, or any right or liability of any husband or wife, married before the commencement of this Act, to sue or be sued under the provisions of the said repealed Acts or either of them, for or in respect of any debt, contract, wrong, or other matter or thing whatsoever, for or in respect of which any such right or liability shall have accrued to or against such husband or wife before the commencement of this Act. 23. For the purposes of this Act the legal personal representative of any married woman shall in respect of her separate estate have the same rights and liabilities and be subject to the same jurisdiction as she would be if she were living. 24. The word "contract" in this Act shall include the acceptance of any trust, or of the office of executrix or administratrix, and the provisions of this Act as to liabilities of married women shall extend to all liabilities by reason of any breach of trust or devastavit committed by any married woman being a trustee or executrix or administratrix either before or after her marriage, and her husband shall not be subject to such liabilities unless he has acted or intermeddled in the trust or administration. The word "property" in this Act includes a thing in action. 25. The date of the commencement of this Act shall be the first of January, one thousand eight hundred and eighty-three. 26. This Act shall not extend to Scotland. 27. This Act may be cited as the Married Women's Property Act, 1882. 1 ADDENDA TO VOL. I. 647 Women. Sec. 3. If her property, however, be vested in trustees Married and the loan is made from it, the trustees would be entitled Act of 1882. to rank pari passu with the other creditors of the bankrupt Sec. 3. husband. Notes on Loans. Equity to a Sec. 5. Under this section, and section 2, the wife's On Sec. 5. equity to a settlement is rendered obsolete as to property, Settlement. the title to which accrues to her after the commencement of the Act, 1st January, 1883. Secs. 6, 7, 8, 9, 10 and 17 will be specially noted by On Secs. 6, &c. Stock, Bankers. In investments made by a wife before the Investments, commencement of the Act, the husband will still continue liable, unless he frees himself by a reinvestment.* &c. Insurance. Sec. II re-enacts, with the omission of the words On Sec. 11. "separate use," the 10th section of the Married Women's Property Act, 1870, 33 and 34 Vict. c. 93. In the case of In re Adam's Policy Trusts, before Chitty, J., 21st and 23rd April, 1883, 27 S.J. 433, where a married man effected a life insurance for the benefit of his wife and children, and the wife pre-deceased him, and he died insolvent, leaving eight children, the question arose whether the wife took a life interest only in the fund with remainder to the children, or whether she and the children took the fund concurrently, in which case her legal personal representatives might be entitled to her share. The case of In re Mellor's Trusts, 26 W.R. 70, L.R. 6 Ch. D. 127, 26 W.R. 309, L.R., 7 Ch. D. 200, was referred to, where Malins, V.C., in a similar case authorized the division of the fund as under an intestacy; but Chitty, J., said that the effect of the policy and the Act of Parliament, when fead together, was to constitute a declaration of a trust that was to be executed, and all the Court had to do was to construe the language of the trust. There were two possible constructions. The meaning might be either that * Some banks, notwithstanding the provisions of this Act, require, on a current account being opened in the name of a married woman, an authority from her husband, such as that given in Vol. I. page 34. ' 1 { Married Women. Act of 1882. On Sec. II. Insurance. Sec. 17. Savings from Earnings, &c. Criminal Liability. 648 ADDENDA TO VOL. I. the wife was to take a life interest, with remainder to the children, or that the wife and children were to take concurrently. He was of opinion that the fairer construc- tion was that the wife took a life interest. The decision in In re Mellor's Trusts could not be supported as a judicial precedent, and his lordship added that when it was considered that the Act of 1882 had dealt with policies effectuated for the benefit of the insured's wife and children in almost the same terms as the Act of 1870, it would appear desirable for the insurance offices to adopt some form of policy, meeting the objects and requirements of the Act of 1882, and precluding all further litigation. In questions between husband and wife it will be observed, S. 17, that the bank as well as the husband or wife may now make the requisite application to the Court. On 26th April, 1883, an action, that of Mitchell v. The Victoria Permanent Benefit Building Society, and Mitchell was brought, under this section, in the Manchester County Court, and the decision given in favour of the wife, with costs against her husband. The wife had for a great number of years saved money from her earnings, the amount being increased by one or two small legacies left to her by relatives, and had deposited part of it, £92, with the building society. With reference to criminal proceedings, at the Worcester Assizes, in Brooks v. Brooks, before Stephen, J., 18th April, 1883, a married woman who had eloped from her husband and taken some of his property, was sentenced to six months' imprisonment for the theft, the judge remarking that he could not imagine a case which better illustrated than this the wisdom of the recent legislation. Until the passing of the Act, as observed by the prosecuting counsel, it was impossible that the present offence could have been committed, as by common law a wife could not steal the property of her husband, but women of late years had made certain advances in the direction of procuring what they F ¿ ADDENDA TO VOL. I. 649 Women. considered their rights. Among the rights so acquired was Married that of being sent to gaol for stealing their husbands' Act of 1882.. property, and the prisoner was unfortunately one of the Criminal Liability. first of her sex to avail herself of it. It may be noted that money saved by the wife from allowances for household purposes belongs to the husband. Barrack v. Mc.Culloch, 3 K. and J., 110, and that the income of the wife's separate property may be received by the husband so long as she acquiesces. Dixon v. Dixon, 9 C.D., 587. Household Savings, &c. of Company. Where a wife had bought shares, during coverture, in her Shares. sole name, from savings of her separate income, and divi- Winding up dends were paid to her on her separate receipt, and on winding up of the company the liquidator placed her name on the list of contributories, and afterwards sought to put on the husband's also, it was held by Pearson, J., before whom the case came, 10th May, 1883, that the husband ought not to be placed on the list. the shares were purchased was really separate estate of the wife, and she invested it with the knowledge of the company as separate estate, and they accepted her as the separate owner of the shares. In re the Fire Re-Insurance Corpora- tion, 27 S.J., 484. The money with which The Act appears to make no change in the devolution Intestacy. of the property of a wife dying intestate. The husband will therefore succeed to her separate real estate as tenant by curtesy, where the right exists; to her personal estate in possession, in his marital right; and to her choses in action, or things not in possession, but which he has a right to by action or other proceeding, as her administrator. Where an intestate, a married woman, had lived apart from her husband under a deed of separation, by which it was agreed that all her property undisposed of should go as if she had survived her husband, the Court passed over the latter and made a grant to her father, limited to the property covered by the separation deed. Humphreys v. ļ 1 1 1 1 Married Women. Act of 1882. Intestacy. Statutes of Limitation and separate Property. Administra- tion. 650 ADDENDA TO VOL. I. Allen, 12th December, 1882, 31 W.R., 292, Hannen, P., observing that "in the absence of any facts showing that the husband would be prejudiced by the grant, I must hold that he can have no legitimate object in applying for the control of his wife's estate. On the contrary, his interest will be protected by making a grant limited to that which the father would take on the execution of the deed. I shall therefore make a grant limited to the separate estate covered by the deed. If there is anything outside the deed in which the husband has an interest, he can make an application to the Court." If separate property under the Act be regarded as not a trust, but a legal estate, the Statutes of Limitation will apply to actions respecting it; formerly it was held that they did not, as "the separate estate of the feme covert was a trust estate for the payment of debts, and a trust was not within the statutes." Norton v. Turvil, 2 P., Wms., 144; Hodgson v. Williamson, 15 Ch. D., 87. In granting an application for letters of administration by a married woman whose husband had refused to join in the administration bond, Hannen, P., said that ss. I, 5, and 24 of the Act had apparently not been under the consideration of any other division of the Court, and therefore it would be necessary for him to give a construction. He accepted the argument which, had been addressed to him, for s. I expressly rendered a married woman capable of entering into a "contract" as if she were a feme sole, and by s. 24 the word "contract was to include the acceptance of the office of executrix or administratrix. Hence the reasons which formerly rendered it necessary for the husband to execute the administration bond no longer existed, and, therefore, his consent to his wife's acceptance of the grant of administration was now unnecessary. He therefore granted the application. In the Goods of Ayres, P.D. and A. Div., 8th May, 1883, 27 S.J., 467. 1 1 ADDENDA TO VOL. I. 651 Women. Sec. 25. An Act comes into operation from the first Married moment either of its passing, or of the day named for its Sec. 25. commencement. Tomlinson, appellant; Bullock, respon- ment of dent, ante page 460. Commence- Acts of Parliament. Sec. 26. For Scotland there is the 40 and 41 Vict., c. Sec. 26. 29, being "an Act for the protection of the property of Scottish Acts. Married Women in Scotland," passed 2nd August, 1877; the 43 and 44 Vict., c. 26, "an Act to extend to Scotland the facilities for effecting policies of assurance for the benefit of married women and children, now in force in England and Ireland," passed 26th August, 1880; and the 44 and 45 Vic., c. 21, "an Act for the amendment of the law regarding property of married women in Scotland," passed 18th July, 1881. Further, as to married women, it is thus enacted by the Conveyancing and Law of Property Act, 1881, 44 and 45 Vict., c. 41. Part VIII. :- her interest. Sec. 39. (1.) Notwithstanding that a married woman Power for is restrained from anticipation, the Court may, if it thinks Court to bind fit, where it appears to the Court to be for her benefit, by judgment or order, with her consent, bind her interest in any property. (2.) This section applies only to judgments or orders made after the commencement of this Act, from and immediately after 31st December, 1881. Attorney. Sec. 40. (I.) A married woman, whether an infant or Power of not, shall by virtue of this Act have power, as if she were unmarried and of full age, by deed, to appoint an attorney on her behalf for the purpose of executing any deed or doing any other act which she might herself execute or do; and the provisions of this Act relating to instruments creating powers of attorney shall apply thereto. (2.) This section applies only to deeds executed after the commence- ment of this Act. And by the Conveyancing Act, 1882, 45 and 46 Vict., 39, it is enacted :- 1 } } 1 $ 1 Married Women. 652 ADDENDA TO VOL. I. Sec. 7. (1.) In section 79 of the Fines and Recoveries Acknowledg. Act, 3 and 4 Will. IV., c. 74, and section 70 of the Fines and ment of Deeds. Recoveries (Ireland) Act, 4 and 5 Will. IV., c. 92, there shall, by virtue of this Act, be substituted for the words "two of the perpetual commissioners, or two special commissioners," the words "one of the perpetual commissioners, or one special commissioner;" and in section 83 of the Fines and Recoveries Act, and section 74 of the Fines and Recoveries (Ireland) Act, there shall, by virtue of this Act, be substi- tuted for the word "persons," the word "person," and for the word "commissioners," the words "a commissioner;" and all other provisions of those Acts, and all other enact- ments having reference in any manner to the sections aforesaid, shall be read and have effect accordingly. (2.) Where the memorandum of acknowledgment by a married woman of a deed purports to be signed by a person authorized to take the acknowledgment, the deed shall, as regards the execution thereof by the married woman, take effect at the time of acknowledgment, and shall be conclusively taken to have been duly acknowledged. (3.) A deed acknowledged before or after the com- mencement of this Act by a married woman, before a judge of the High Court of Justice in England or Ireland, or before a judge of a County Court in England, or before a chairman in Ireland, or before a perpetual commissioner or a special commissioner, shall not be impeached or impeachable by reason only that such judge, chairman, commissioner was interested or concerned either as a party, or as solicitor, or clerk to the solicitor for one of the parties, or otherwise, in the transaction giving occasion for the acknowledgment; and general rules shall be made for preventing any person interested or concerned as aforesaid from taking an acknowledgment, but no such rule shall make invalid any acknowledgment; and those rules shall, as regards England, be deemed Rules of Court within 1 ADDENDA TO VOL. I. 653 section 17 of the Appellate Jurisdiction Act, 1876, 39 and Married Women. 40 Vict., c. 59, as altered by section 19 of the Supreme Acknowledg- Court of Judicature Act, 1881, 44 and 45 Vict., c. 68, and ment of Deeds. shall, as regards Ireland, be deemed Rules of Court within the Supreme Court of Judicature Act (Ireland), 1877, 40 and 41 Vict., c. 57, and may be made accordingly for England and Ireland respectively at any time after the passing of this Act, to take effect on or after the com- mencement of this Act, from and immediately after the 31st December, 1882. (4.) The enactments described in the schedule to this Act are hereby repealed. (5.) The foregoing provisions of this section, including the repeal therein, apply only to the execution of deeds by married women after the commencement of this Act. (6.) Notwithstanding the repeal or any other thing in this section, the certificate, if not lodged before the commencement of this Act, of the taking of an acknow- ledgment by a married woman of a deed executed before the commencement of this Act, with any affidavit relating thereto, shall be lodged, examined, and filed in the like manner and with the like effects and consequences as if this section had not been enacted. (7.) There shall continue to be kept in the proper office of the Supreme Court of Judicature an index to all certificates of acknowledgments of deeds by married women lodged therein, before or after the commencement of this Act, containing the names of the married women and their husbands, alphabetically arranged, and the dates of the certificates and of the deeds to which they respectively relate, and other particulars found convenient; and every such certificate lodged after the commencement of this Act shall be entered in the index as soon as may be after the certificate is filed. (8.) An office copy of any such certificate filed before or after the commencement of this Act shall be delivered } Married 1 Women. 654 ADDENDA TO VOL. I. to any person applying for the same; and every such office copy shall be received as evidence of the acknow- ment of Deeds. ledgment of the deed to which the certificate refers. Acknowledg- SCHEDULE. REPEALS. 3 & 4 Will. IV., | The Fines and c. 74, in part. Recoveries Act. in part; namely— Tenant for Life. 4 & 5 Will. IV., c. 92, in part. 17 & 18 Vict., c. 75. 41 & 42 Vict., c. 23. Section 84, from and including the words, "and the same judge," to the end of that section. Sections 85 to 88, inclusive. The Fines and Recoveries (Ireland) Act. in part; namely — Section 75, from and including the words, "and the same judge," to the end of that section. Section seventy-six to seventy-nine, inclusive. An Act to remove doubts concerning the due acknowledgments of deeds by married women in certain cases. The acknowledgment of deeds by Married Women (Ireland) Act, 1878. By the Settled Land Act, 1882, 45 and 46 Vict., c. 38, being “An Act for facilitating Sales, Leases, and other dispositions of Settled Land, and for promoting the execu- tion of Improvements thereon," it is enacted— Sec. 61. (2.) Where a married woman who, if she had not been a married woman, would have been a tenant for life, or would have had the powers of a' tenant for life under the foregoing provisions of this Act, is entitled for her separate use, or is entitled under any statute passed or to be passed, for her separate property, or as a feme sole, then she, without her husband, shall have the powers of a tenant for life under this Act. 1 ADDENDA TO VOL. I. 655 Women. (3.) Where she is entitled otherwise than as aforesaid, Married then she and her husband together shall have the powers of Tenant a tenant for life under this Act. 1 (4.) The provisions of this Act referring to a tenant for life and a settlement and settled land, shall extend to the married woman without her husband, or to her and her husband together, as the case may require, and to the instrument under which her estate or interest arises, and to the land therein comprised. (5.) The married woman may execute, make, and do all deeds, instruments, and things necessary or proper for giving effect to the provisions of this section. (6.) A restraint on anticipation in the settlement shall not prevent the exercise by her of any power under this Act. for Life. It will now be necessary to consider another of the Bills of recent important statutes, the 45 and 46 Vict., c. 61, Codifying Act Exchange. being an Act to codify the law relating to bills of of 1882. exchange, cheques, and promissory notes," passed 18th August, 1882, and which came into immediate opera- tion. Although several attempts had been previously made to pass codifying bills, such as the Partnership Bill and the Criminal Code Bill, this is the first that has proved successful in obtaining the sanction of Parliament, and the measure appears, on the whole, to be a clear and comprehensive embodiment of the statute and case law on the three subjects with which it deals; other instruments, such as negotiable bonds or scrip, not being affected by it, nor are the laws relating to the issue of bank notes. It may be said to represent the effect of seventeen statutes or parts of statutes, and of about two thousand four hundred cases decided by the Courts. It applies to the whole of the United Kingdom, and assimilates the laws of England and Scotland, with one exception, that contained in section 53, which preserves to Scotland the rule that where the 1 } } 1 " Bills of Exchange. 656 ADDENDA TO VOL. I. drawee has funds in his hands available for payment the Codifying Act bill operates as an assignment of the amount for which it of 1882. is drawn in favour of the holder from the time when it is presented to the drawee. This rule was not accepted here, although its adoption was recommended by the Royal Commission of 1855. But, besides being a codification of the existing law, the Act effects a few changes either in the shape of new law, the dispelling of doubtful points, or the mitigation of the rigour of rules laid down by judicial decision. These it shall, of course, be incumbent upon us to notice in detail, and in doing so we shall make the needful references to our first volume, and give under the sections in question of the statute the relative notes of its very able and talented draughtsman, Mr. Chalmers, as appearing in the 3rd edition of his useful little handbook of the Act.* I. 2. * The following are the provisions in detail of the Act :- PART I. PRELIMINARY. Short title. This Act may be cited as the Bills of Exchange Act, 1882. Interpretation of terms. In this Act, unless the context otherwise requires- >> Acceptance means an acceptance completed by delivery or notification. "Action" includes counter-claim and set-uff. "Banker" includes a body of persons whether incorporated or not who carry on the business of banking. Bankrupt " includes any person whose estate is vested in a trustee of assignee under the law for the time being in force relating to bankruptcy. " Bearer >> to bearer. means the person in possession of a bill or note which is payable "Bill means bill of exchange, and note means promissory note. Delivery" means transfer of possession, actual or constructive, from one- person to another. "Holder means the payee or indorsee of a bill or note who is in posses- sion of it, or the bearer thereof. "Indorsement means an indorsement completed by delivery. " Issue " means the first delivery of a bill or note, complete in form to a person who takes it as a holder. " Person " includes a body of persons whether incorporated or not. "Value" means valuable consideration. “Written" includes printed, and "writing" includes print. 1 1 1 ADDENDA TO VOL. I. 657 PAGE 2.—-SEC. 91. (1.) When, by this Act, any instru- Bills of Ex- ment or writing is required to be signed by any person, 1882. change Act, it is not necessary that he should sign it with his own Signature. hand, but it is sufficient if his signature is written thereon by some other person by or under his authority. PART II. BILLS OF EXCHANGE. FORM AND INTERPRETATION. defined. 3. (1.) A bill of exchange is an unconditional order in writing, addressed Bill of Exchange by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer. (2.) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange. (3.) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to re-imburse himself or a particular account to be debited with the amount, or (b) a state- ment of the transaction which gives rise to the bill, is unconditional. (4.) A bill is not invalid by reason- (a.) That it is not dated; (b.) That it does not specify the value given, or that any value has been given therefor ; (c.) That it does not specify the place where it is drawn or the place where it is payable. 4. (1.) An inland bill is a bill which is or on the face of it purports Inland and to be (a) both drawn and payable within the British Islands, or (b) drawn Foreign Bills. within the British Islands upon some person resident therein. Any other bill is a foreign bill. For the purposes of this Act "British Islands " mean any part of the United Kingdom of Great Britain and Ireland, the Islands of Man, Guernsey, Jersey, Alderney, and Sark, and the islands adjacent to any of them being part of the dominions of Her Majesty. (2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill. 5. 1.) A bill may be drawn payable to, or to the order of, the drawer; or it may be drawn payable to, or to the order of, the drawee. Effect where different parties same person. (2.) Where in a bill drawer and drawee are the same person, or where the to bill are the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note. 6. (1.) The drawee must be named or otherwise indicated in a bill with Address to reasonable certainty. (2.) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange. 7. drawee. (1.) Where a bill is not payable to bearer, the payee must be named Certainty re- or otherwise indicated therein with reasonable certainty. (2.) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being. (3.) Where the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer. ее quired as to payee. + 1 J Bills of Ex- change Act, 1882. 658 ADDENDA TO VOL. I. (2.) In the case of a corporation, where, by this Act, any instrument or writing is required to be signed, it is sufficient Common Seal. if the instrument or writing be sealed with the corporate What bills are negotiable. Sum payable. Bill payable on demand. Bill payable at a future time. Omission of date in bill payable after date or sight. seal. But nothing in this section shall be construed as requir- ing the bill or note of a corporation to be under seal. See sects. 23 to 26. 8. (1.) When a bill contains words prohibiting transfer, or indicating an intention that it should not be transferable, it is valid as between the parties thereto, but is not negotiable, (2.) A negotiable bill may be payable either to order or to bearer. (3.) A bill is payable to bearer which is expressed to be so payable, or on which the only or last indorsement is an indorsement in blank. (4.) A bill is payable to order which is expressed to be so payable, or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it should not be transferable. (5.) Where a bill, either originally or by indorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option. 9. (1.) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid— (a.) With interest. (b.) By stated instalments. (c.) By stated instalments, with a provision that upon default in payment of any instalment the whole shall become due. (d.) According to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill. (2.) Where the sum payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by the words is the amount payable. (3.) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof. 10. (1.) A bill is payable on demand - (a.) Which is expressed to be payable on demand, or at sight, or on presentation; or (6.) În which no time for payment is expressed. (2.) Where a bill is accepted or indorsed, when it is overdue, it shall, as regards the acceptor who so accepts, or any indorser who so indorses it, be deemed a bill payable on demand. II. A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable— (1.) At a fixed period after date or sight. (2.) On or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect. 12. Where a bill expressed to be payable at a fixed period after date is issued undated, or where the acceptance of a bill payable at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the bill shall be payable accordingly. Provided that (1) where the holder in good faith and by mistake inserts a wrong date, and (2) in every case where a wrong date is inserted, if the bill subsequently comes into the hands of a holder in due course the bill shall not be avoided thereby, but shall operate and be payable as if the date so inserted had been the true date. { 5 ADDENDA TO VOL. I. 659 Bills of Ex- 1882. PAGE 99.-SEC. 12. Where a bill expressed to be change Act, payable at a fixed period after date is issued undated, or omission of where the acceptance of a bill payable at a fixed period date in bill after sight is undated, any holder may insert therein the date or sight. payable after 13. (1.) Where a bill or an acceptance or any indorsement on a bill is Ante-dating and dated, the date shall, unless the contrary be proved, be deemed to be the post-dating. true date of the drawing, acceptance, or indorsement, as the case may be. (2.) A bill is not invalid by reason only that it is ante-dated or post-dated, or that it bears date on a Sunday. 14. Where a bill is not payable on demand the day on which it falls due Computation of is determined as follows:- time of payment. (1.) Three days, called days of grace, are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace: Provided that— (a.) When the last day of grace falls on Sunday, Christmas Day, Good Friday, or a day appointed by Royal proclamation as a public fast or thanksgiving day, the bill is, except in the case hereinafter provided for, due and payable on the preceding business day. (b.) When the last day of grace' is a bank holiday (other than Christmas Day or Good Friday) under the Bank Holidays Act, 1871, and Acts amending or extending it, or when the last day of grace is a Sunday and the second day of grace is a Bank Holiday, the bill is due and payable on the succeeding business day. (2.) Where a bill is payable at a fixed period after date, after sight, or after the happening of a specified event, the time of payment is deter- mined by excluding the day from which the time is to begin to run and by including the day of payment. (3.) Where a bill is payable at a fixed period after sight, the time begins to run from the date of the acceptance if the bill be accepted, and from the date of noting or protest if the bill be noted or protested for non-acceptance, or for non-delivery. (4.) The term month in a bill means calendar month. 15. The drawer of a bill and any indorser may insert therein the name Case of need. of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may think fit. 16. The drawer of a bill, and any indorser, may insert therein an express Optional stipula- stipulation- (1.) Negativing or limiting his own liability to the holder : (2.) Waiving as regards himself some or all of the holder's duties. tions by drawer or indorser." 17. (1.) The acceptance of a bill is the signification by the drawee of his Definition and assent to the order of the drawer. requisites of (2.) An acceptance is invalid unless it complies with the following acceptance. conditions, namely: (a.) It must be written on the bill and be signed by the drawee. mere signature of the drawee without additional words is sufficient. + The (b.) It must not express that the drawee will perform his promise by any other means than the payment of money. 18. A bill may be accepted- Time for (1.) Before it has been signed by the drawer, or while otherwise incomplete: acceptance. (2.) When it is overdue, or after it has been dishonoured by a previous refusal to accept, or by non-payment : (3.) When a bill payable after sight is dishonoured by non-acceptance, and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance. ļ 1 Bills of Ex- change Act, 1882. Omission of date in bill 660 ADDENDA TO VOL. I. true date of issue or acceptance, and the bill shall be payable accordingly. Provided that (1) where the holder in good faith and by mistake inserts a wrong date, and (2) payable after in every case where a wrong date is inserted, if the bill date or sight. subsequently comes into the hands of a holder in due course the bill shall not be avoided thereby, but shall General and qualified acceptances. Inchoate instruments. Delivery. 19. (1.) An acceptance is either (a) general or (¿) qualified. (2.) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn. In particular an acceptance is qualified which is— (a.) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated: (b.) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn : (c.) local, that is to say, an acceptance to pay only at a particular specified place : An acceptance to pay at a particular place is a general acceptance, unless it expressly states that the bill is to be paid there only and not elsewhere: (d.) qualified as to time : (e.) the acceptance of some one or more of the drawees, but not of all. 20. (1.) Where a simple signature on a blank stamped paper is delivered by the signer in order that it may be converted into a bill, it operates as a primâ facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, or the acceptor, or an indorser; and, in like manner, when a bill is wanting in any material parti- cular, the person in possession of it has a primâ facie authority to fill up the omission in any way he thinks fit. (2.) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact. Provided that if any such instrument after completion is negotiated to a holder in due course it shall be valid and effectual for all purposes in his hands, and he may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given. 21. (1.) Every contract on a bill, whether it be the drawer's, the acceptor's, or an indorser's is incomplete and revocable, until delivery of the instrument, in order to give effect thereto. Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable, (2.) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery— (a.) in order to be effectual must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be : (b.) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill. But if the bill be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed. (3.) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved. ADDENDA TO VOL. I. 1 661 Bills of Ex- operate and be payable as if the date so inserted had been change Act, the true date. 1882. Omission of date in bill payable after date or sight. The law on the subject dealt with by this section was previously very doubtful. See sect. 20 for the general rule as to omissions in a bill. A bill is not invalid by reason that it bears date on Sunday. a Sunday. CAPACITY AND AUTHORITY OF PARTIES. 22. (1.) Capacity to incur liability as a party to a bill is co-extensive with Capacity of parties. capacity to contract. Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations. (2.) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto. 23. No person is liable as drawer, indorser, or acceptor of a bill who has Signature not signed it as such: Provided that (1.) Where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name : (2.) The signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm. essential to liability. 24. Subject to the provisions of this Act, where a signature on a bill is Forged or forged or placed thereon without the authority of the person whose signature unauthorised it purports to be, the forged or unauthorised signature is wholly inoperative, signature. and no right to retain the bill or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority. Provided that nothing in this section shall affect the ratification of an unau- thorised signature not amounting to a forgery. 25. A signature by procuration operates as notice that the agent has but a Procuration limited authority to sign, and the principal is only bound by such signature signatures. if the agent in so signing was acting within the actual limits of his authority. 26. (1.) Where a person signs a bill as drawer, indorser, or acceptor, and Person signing adds words to his signature, indicating that he signs for or on behalf of a as agent or in representative principal, or in a representative character, he is not personally liable thereon; capacity. but the mere addition to his signature of words describing him as an agent, or as filling a representative character, does not exempt him from personal liability. (2.) In determining whether a signature on a bill is that of the principal or that of the agent by whose hand it is written, the construction most favourable to the validity of the instrument shall be adopted. THE CONSIDERATION FOR A BILL. 27. (1.) Valuable consideration for a bill may be constituted by— (a.) Any consideration sufficient to support a simple contract. (b.) An antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time. (2.) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time. (3.) Where the holder of a bill has a lien on it arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien. Value and holder for value. 1 } 1 4 S f 1 Bills of Ex- change Act, 1882. Computing time. Accommodation bill or party. Holder in due course. Presumption of value and good faith. Negotiation of bill. Requisites of a valid indorse- ment. 662 ADDENDA TO VOL. I. PAGE 275.-SEC. 92.-Where, by this Act, the time limited for doing any act or thing in less than three days, in reckoning time, non-business days are excluded. "Non-business days" for the purposes of this Act mean (a) Sunday, Good Friday, Christmas Day. 28. (1.) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person. (2.) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not. 29. (1.) A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely (a.) That he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact : (b.) That he took the bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it. (2.) In particular the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud. (3.) A holder (whether for value or not), who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder. 30. (1.) Every party whose signature appears on a bill is primâ facie deemed to have become a party thereto for value. (2). Every holder of a bill is primâ facie deemed to be a holder in due course; but if in an action on a bill it is admitted or proved that the accept- ance, issue, or subsequent negotiation of the bill is affected with fraud, duress, or force and fear, or illegality, the burden of proof is shifted, unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill. NEGOTIATION OF BILLS. 31. (1.) A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill. (2.) A bill payable to bearer is negotiated by delivery. (3.) A bill payable to order is negotiated by the indorsement of the holder completed by delivery. (4.) Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the indorsement of the transferor. (5.) Where any person is under obligation to indorse a bill in a representa- tive capacity, he may indorse the bill in such terms as to negative personal liability. 32. An indorsement in order to operate as a negotiation must comply with the following conditions, namely:- (1.) It must be written on the bill itself and be signed by the indorser. The simple signature of the indorser on the bill, without additional words, is sufficient. An indorsement written on an allonge, or on a "copy" of a bill issueď or negotiated in a country where " copies" are recognised, is deemed to be written on the bill itself. ADDENDA TO VOL. I. 663 change Act, 1882. (b.) A bank holiday under the Bank Holidays Act, Bills of Ex- 1871, or Acts amending it. (c.) A day appointed by Royal proclamation as a public Computing fast or thanksgiving day. Any other day is a business day. See e.g., sect. 49 (12); sect. 67 (2). time. ment. (2.) It must be an indorsement of the entire bill. A partial indorsement, Requisites of a that is to say, an indorsement which purports to transfer to the indorsee valid indorse- a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally does not operate as a negotiation of the bill. (3.) Where a bill is payable to the order of two or more payees or indorsees who are not partners all must endorse, unless the one indorsing has authority to indorse for the others. (4.) Where, in a bill payable to order, the payee or indorsee is wrongly designated, or his name is mis-spelt, he may indorse the bill as therein described, adding, if he think fit, his proper signature. (5.) Where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved. (6.) An indorsement may be made in blank or special. It may also contain terms making it restrictive. 33. Where a bill purports to be indorsed conditionally the condition may Conditional be disregarded by the payer, and payment to the indorsee is valid whether indorsement. the condition has been fulfilled or not. 34. (1.) An indorsement in blank specifies no indorsee, and a bill so indorsed becomes payable to bearer. (2.) A special indorsement specifies the person to whom, or to whose order, the bill is to be payable. (3.) The provisions of this Act relating to a payee apply with the necessary modifications to an indorsee under a special indorsement. (4.) When a bill has been indorsed in blank, any holder may convert the blank indorsement into a special indorsement by writing above the indorser's signature a direction to pay the bill to or to the order of himself or some other person. Indorsement in blank and special indorsement. 35. (1.) An indorsement is restrictive which prohibits the further nego- Restrictive tiation of the bill or which expresses that it is a mere authority to deal with indorsement. the bill as thereby directed and not a transfer of the ownership thereof, as, for example, if a bill be indorsed Pay D. only," or "Pay D. for the account of X., or Pay D. or order for collection." (2.) A restrictive indorsement gives the indorsee the right to receive pay- ment of the bill and to sue any party thereto that his indorser could have sued, but gives him no power to transfer his rights as indorsee unless it expressly authorise him to do so. (3.) Where a restrictive indorsement authorises further transfer, all subse- quent indorsees take the bill with the same rights and subject to the same liabilities as the first indorsee under the restrictive indorsement. 36. (1.) Where a bill is negotiable in its origin it continues to be negotiable Negotiation of until it has been (a) restrictively indorsed or (b) discharged by payment or overdue or otherwise. (2.) Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had. (3.) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section, when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreason- able length of time for this purpose is a question of fact. dishonoured bill. ધ 1 I } { Bills of Ex- change Act, 1882. Payee. Negotiation of overdue or dishonoured bill. Negotiation of bill to party already liable thereon. Rights of the holder. When present- ment for accept- ance is necessary. 664 Time for present- ing bill payable after sight. ADDENDA TO VOL. I. PAGE 108.-SEC. 7. (2.) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees. A bill may also be made payable to the holder of an office for the time being. This section alters the law in so far as it allows a bill to be made payable to one of two persons in the alternative, or to the holder of an office for the time being. Previously a bill payable to "the treasurer for the time being" of a society would have been invalid. (4.) Except where an indorsement bears date after the maturity of the bill, every negotiation is primâ facie deemed to have been effected before the bill was overdue. (5.) Where a bill which is not overdue has been dishonoured any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this sub-section shall affect the rights of a holder in due course. 37. Where a bill is negotiated back to the drawer, or to a prior indorser or to the acceptor, such party may, subject to the provisions of this Act, re-issue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable. 38. The rights and powers of the holder of a bill are as follows: (1.) He may sue on the bill in his own name : (2.) Where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill: (3.) Where his title is defective (a) if he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill, and (b) if he obtains payment of the bill the person who pays him in due course gets a valid discharge for the bill. GENERAL DUTIES OF THE HOLDER. 39. (1.) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument. (2.) Where a bill expressly stipulates that it shall be presented for accept- ance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment. (3.) In no other case is presentment for acceptance necessary in order to render liable any party to the bill. (4.) Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of) reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and indorsers. 40. (1.) Subject to the provisions of this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time. (2.) If he do not do so, the drawer and all indorsers prior to that holder are discharged. (3.) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case. ظم ADDENDA TO VOL. I. 665 PAGES III, 187.-SEC. 8. (1.) When a bill contains Bills of Ex- change Act, words prohibiting transfer, or indicating an intention that it 1882. should not be transferable, it is valid as between the parties What bills are negotiable. thereto, but is not negotiable. This sub-section adopts the Scottish rule, and a bill made payable to John Smith is now in legal effect payable to John Smith or order. If it be desired to make a bill not transferable, it should be drawn in the form "pay John Smith only." As to when a bill negotiable in its origin ceases to be negotiable, see sec. 36. Rules as to pre- sentment, for excuses for non- 41. (1.) A bill is duly presented for acceptance which is presented in accordance with the following rules :-- (a.) The presentment must be made by or on behalf of the holder to the acceptance, and drawee or to some person authorised to accept or refuse acceptance on presentment. his behalf at a reasonable hour on a business day, and before the bill is overdue : (b.) Where a bill is addressed to two or more drawees, who are not part- ners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only: (c.) Where the drawee is dead presentment may be made to his personal representative: (d.) Where the drawee is bankrupt, presentment may be made to him or to his trustee : (e.) Where authorised by agreement or usage, a presentment through the post office is sufficient : (2.) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance- (a.) Where the drawee is dead or bankrupt, or is a fictitious person, or a person not having capacity to contract by bill: (b.) Where, after the exercise of reasonable diligence, such presentment cannot be effected: (c.) Where, although the presentment has been irregular, acceptance has been refused on some other ground. (3.) The fact that the holder has reason to believe that the bill, on present- ment, will be dishonoured does not excuse presentment. 42. (1.) When a bill is duly presented for acceptance and is not accepted Non-acceptance. within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he do not, the holder shall lose his right of recourse against the drawer and indorsers. 43. (1.) A bill is dishonoured by non-acceptance— (a.) When it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or (b.) When presentment for acceptance is excused and the bill is not accepted. Dishonour by non-acceptance and its conse- quences. (2.) Subject to the provisions of this Act when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and indorsers accrues to the holder, and no presentment for payment is necessary. 44. (1.) The holder of a bill may refuse to take a qualified acceptance, and Duties as to if he does not obtain an unqualified acceptance, may treat the bill as qualified dishonoured by non-acceptance. I (2.) Where a qualified acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorised the holder to take a qualified accept- ance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the bill. The provisions of this sub-section do not apply to a partial acceptance, whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance. acceptances. 1 ~ 3 Bills of Ex- change Act, 1882. 666 ADDENDA TO VOL. I. (3.) A bill is payable to bearer which is expressed to be so payable, or on which the only or last indorsement is What bills are an indorsement in blank. negotiable. Rules as to This sub-section brings the law into accordance with custom by making a special indorsement control a previous indorsement in blank. See, too, sec. 34. (3.) When the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall he deemed to have assented thereto. 45. Subject to the provisions of this Act a bill must be duly presented for presentment for payment. If it be not so presented the drawer and indorsers shall be dis- payment. Excuses for delay charged. A bill is duly presented for payment which is presented in accordance with the following rules: (1.) Where the bill is not payable on demand, presentment must be made on the day it falls due. (2.) Where the bill is payable on demand, then, subject to the provisions. of this Act, presentment must be made within a reasonable time after its issue in order to render the drawer liable, and within a reasonable time after its indorsement, in order to render the indorser liable. In determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of the trade with regard to similar bills, and the facts of the particular case. (3.) Presentment must be made by the holder or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf, if with the exercise of reasonable diligence such person can there be found. (4.) A bill is presented at the proper place: (a.) Where a place of payment is specified in the bill and the bill is there presented. (b.) Where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented. (c.) Where no place of payment is specified and no address given, and the bill is presented at the drawee's or acceptor's place of business if known, and if not, at his ordinary residence if known. (d.) In any other case if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business of residence. (5.) Where a bill is presented at the proper place, and after the exercise of reasonable diligence no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptør is required. (6.) Where a bill is drawn upon, or accepted by two or more persons who are not partners, and no place of payment is specified, presentment must be made to them all. (7.) Where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal repre- sentative, if such there be, and with the exercise of reasonable diligence he can be found. (8.) Where authorised by agreement or usage a presentment through the post office is sufficient. 46. (1.) Delay in making presentment for payment is excused when the or non-present- delay is caused by circumstances beyond the control of the holder, and not ment for pay- imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate presentment must be made with reasonable diligence. ment. { ADDENDA TO VOL. I. 667 PAGE 126.-SEC. 64. (1.) Where a bill or acceptance Bills of Ex- change Act, is materially altered without the assent of all parties liable 1882. on the bill, the bill is discharged except as against a party Alteration of who has himself made, authorized, or assented to the alteration, and subsequent indorsers. bill. Excuses for delay (2.) Presentment for payment is dispensed with- (a.) Where, after the exercise of reasonable diligence, presentment, as or non-present- required by this Act, cannot be effected. The fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment. (6.) Where the drawee is a fictitious person. (c.) As regards the drawer where the drawee or acceptor is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if presented. (d.) As regards an indorser, where the bill was accepted or made for the accommodation of that indorser, and he has no reason to expect that the bill would be paid if presented. (e.) By waiver of presentment, express or implied. ment for pay- ment. 47. (1.) A bill is dishonoured by non-payment (a) when it is duly presented Dishonour by for payment and payment is refused or cannot be obtained, or (b) when non-payınent. presentment is excused and the bill is overdue and unpaid. (2.) Subject to the provisions of this Act, when a bill is dishonoured by nonpayment, an immediate right of recourse against the drawer and indorsers accrues to the holder. honour and effect of non-notice. 48. Subject to the provisions of this Act, when a bill has been dishonoured Notice of dis- by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged; Provided that- (1.) Where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission, shall not be prejudiced by the omission. (2.) Where a bill is dishonoured by non-acceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non-payment unless the bill shall in the meantime have been accepted. 49. Notice of dishonour in order to be valid and effectual must be given in Rules as to accordance with the following rules :- (1.) The notice must be given by or on behalf of the holder, or by or on behalf of an indorser who, at the time of giving it, is himself liable on the bill. (2.) Notice of dishonour may be given by an agent either in his own name, or in the name of any party entitled to give notice whether that party be his principal or not. (3.) Where the notice is given by or on behalf of the holder, it enures for the benefit of all subsequent holders and all prior indorsers who have a right of recourse against the party to whom it is given. (4.) Where notice is given by or on behalf of an indorser entitled to give notice as hereinbefore provided, it enures for the benefit of the holder and all indorsers subsequent to the party to whom notice is given. (5.) The notice may be given in writing or by personal communication, and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non-payment. (6.) The return of a dishonoured bill to the drawer or an indorser is, in point of form, deemed a sufficient notice of dishonour. notice of dis- honour. T 2 } Bills of Ex- change Act, 1882. Alteration of bill. Rules as to notice of dis- honour. Excuses for 668 Provided that— ADDENDA TO VOL. I. Where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, such holder may avail himself of the bill as if it had not (7.) A written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication. A misdescription of the bill shall not vitiate the notice unless the party to whom the notice is given is in fact misled thereby. (8.) Where notice of dishonour is required to be given to any person, it may be given either to the party himself, or to his agent in that behalf. (9.) Where the drawer or indorser is dead, and the party giving notice knows it, the notice must be given to a personal representative if such there be, and with the exercise of reasonable diligence he can be found. (10.) Where the drawer or indorser is bankrupt, notice may be given either to the party himself, or to the trustee. (II.) Where there are two or more drawers or indorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for the others. (12.) The notice may be given as soon as the bill is dishonoured and must be given within a reasonable time thereafter. In the absence of special circumstances notice is no deemed to have been given within a reasonable time, unless- (a.) where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dishonour of the bill. (2.) where the person giving and the person to receive notice reside in different places, the notice is sent off on the day after the dishonour of the bill, if there be a post at a convenient hour on that day, and if there be no such post on that day then by the next post thereafter. (13.) Where a bill when dishonoured is in the hands of an agent, he may either himself give notice to the parties liable on the bill, or he may give notice to his principal. If he give notice to his principal, he must do so within the same time as if he were the holder, and the principal upon receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder. (14.) Where a party to a bill receives due notice of dishonour, he has after the receipt of such notice the same period of time for giving notice to antecedent parties that the holder has after the dishonour. 15. Where a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour, nothwithstanding any miscarriage by the post office. 50. (1.) Delay in giving notice of dishonour is excused where the delay Non-notice and is caused by circumstances beyond the control of the party giving notice, and Delay. not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the notice must be given with reasonable diligence. (2.) Notice of dishonour is dispensed with— / (a.) When, after the exercise of reasonable diligence, notice as required by this Act cannot be given to, or does not reach the drawer or indorser sought to be charged : (6.) By waiver express or implied. Notice of dishonour may be waived before the time of giving notice has arrived, or after the omission to give due notice: (c.) As regards the drawer in the following cases, namely, (1) where drawer and drawee are the same person, (2) where the drawee is a fictitious } |- ADDENDA TO VOL. I. .. 669 1 been altered, and may enforce payment of it Bills of Ex- according to its original tenor. The proviso is new and mitigates the rigour of the existing law. change Act, 1882. Sec. 97 Alteration of saves the operation of the Stamp Acts. Where, then, an alteration is bill. such as to make the instrument a new bill requiring a fresh stamp, the bill may be void under the Stamp Acts, though otherwise enforceable under this section. person or a person not having capacity to contract, (3) where the Excuses for drawer is the person to whom the bill is presented for payment, (4) Non-notice and Delay. where the drawee or acceptor is as between himself and the drawer under no obligation to accept or pay the bill, (5) where the drawer has countermanded payment; (d.) As regards the indorser in the following cases, namely, (1) where the drawee is a fictitious person or a person not having capacity to contract and the indorser was aware of the fact at the time he indorsed the bill, (2) where the indorser is the person to whom the bill is presented for payment, (3) where the bill was accepted or made for his accommoda- tion. 51. (1.) Where an inland bill has been dishonoured it may, if the holder Noting or Pro- think fit, be noted for non-acceptance or non-payment, as the case may be; test of Bill. but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or indorser. (2.) Where a foreign bill, appearing on the face of it to be such, has been dishonoured by non-acceptance it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non- acceptance, is dishonoured by non-payment, it must be duly protested for non- payment. If it be not so protested the drawer and indorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary. (3.) A bill which has been protested for non-acceptance may be sub- sequently protested for non-payment. (4.) Subject to the provisions of this Act, when a bill is noted or protested, it must be noted on the day of its dishonour. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting. (5.) Where the acceptor of a bill becomes bankrupt or insolvent, or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and indorsers. (6) A bill must be protested at the place where it is dishonoured: Provided that-- (a.) When a bill is presented through the post office and returned by post dishonoured, it may be protested at the place to which it is returned, and on the day of its return if received during business hours, and if not received during business hours, then not later than the next business day : (6.) When a bill drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non- acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on the drawee is necessary. (7.) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify— (a.) The person at whose request the bill is protested : (b.) The place and date of protest, the cause or reason for protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee or acceptor could not be found. (8.) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof. $ 1 罾 ​} t 1 1 ' Bills of Ex- change Act, 1882. Effect where different parties to bill are the same person. Noting or protest of bill. Duties of Holder as regards Drawee or Acceptor. Funds in hands of Drawee. Liability of Acceptor. Liability of Drawer or Indorser. 670 ADDENDA TO VOL. I. PAGE 172.-SEC. 5. (2.) Where in a bill drawer and drawee are the same person, or where the drawee is a ficti- tious person or a person not having capacity to contract, the holder may treat the instrument at his option, either as a bill of exchange or as a promissory note. See the definition of "person" in sec. 2. As an illustration, suppose a firm has two houses, one in London, the other in Liverpool. If the London house draws on the Liverpool house, and the bill is dishonoured, the holder need not give notice of dishonour. (9.) Protest is dispensed with by any circumstance which would dispense with notice of dishonour. Delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate the bill must be noted or protested with reasonable diligence. 52. (1.) When a bill is accepted generally presentment for payment is not necessary in order to render the acceptor liable. (2.) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day that it matures. (3.) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him. (4.) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it. LIABILITIES OF PARTIES. 53. (1.) A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument. This sub-section shall not extend to Scotland. (2.) In Scotland, where the drawee of a bill has in his hands funds available for the payment thereof, the bill operates as an assignment of the sum for which it is drawn in favour of the holder, from the time when the bill is presented to the drawee. 54. The acceptor of a bill, by accepting it— I. (1.) Engages that he will pay it according to the tenor of his acceptance : (2.) Is precluded from denying to a holder in due course : (a.) The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill; (b.) In the case of a bill payable to drawer's order, the then capacity of the drawer to indorse, but not the genuineness or validity of his indorsement; In the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to indorse, but not the genuineness or validity of his indorsement; (c.) 55. (1.) The drawer of a bill by drawing it— (a.) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or any indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken; (b.) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse. (2.) The indorser of a bill by indorsing it— (a.) Engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or a subsequent indorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken; { 1 } ADDENDA TO VOL. I. 671 PAGE 175.-SEC. 18. (3.) When a bill payable after sight Bills of Ex- change Act, is dishonoured by non-acceptance, and the drawee subse- 1882. quently accepts it, the holder, in the absence of any different Time for agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance. acceptance. (b.) Is precluded from denying to a holder in due course the genuineness Liability of and regularity in all respects of the drawer's signature and all previous drawer or indorsements; (c.) Is precluded from denying to his immediate or a subsequent indorsee that the bill was at the time of his indorsement a valid and subsisting bill, and that he had then a good title thereto. indorser. 56. Where a person signs a bill otherwise than as drawer or acceptor, he Stranger Signing thereby incurs the liabilities of an indorser to a holder in due course. Bill liable as Indorser. Measure of damages against 57. Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows: (1.) The holder may recover from any party liable on the bill, and the parties to dis- drawer who has been compelled to pay the bill may recover from the honoured bill. acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor, or from the drawer, or from a prior indorser- (a.) The amount of the bill: (b.) Interest thereon from the time of presentment for payment if the bill is payable on demand, and from the maturity of the bill in any other case: (c.) The expenses of noting, or, when protest is necessary, and the protest has been extended, the expenses of protest. (2.) In the case of a bill which has been dishonoured abroad, in lieu of the above damages, the holder may recover from the drawer or an indorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re-ex- change, with interest thereon until the time of payment. (3.) Where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper. 58. (1.) Where the holder of a bill payable to bearer negotiates it by Transferor by delivery without indorsing it, he is called a transferor by delivery. (2.) A transferor by delivery is not liable on the instrument. C (3.) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee being a holder for value that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless. DISCHARGE OF BILL. delivery and Transferee. 59. (1.) A bill is discharged by payment in due course by or on behalf of Payment in due the drawee or acceptor. Payment in due course means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective. (3.) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but (a.) Where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not re-issue the bill. (b.) Where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he course. 1 1 1 J Bills of Ex- change Act, 1882. Presentment for acceptance. Payment in due course. Banker paying demand draft 672 ADDENDA TO VOL. I. PAGES 177, 210.-SEC. 39. (4.) Where the holder of a bill, drawn payable elsewhere than at the place of business. or residence of the drawee has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day that it falls may, if he thinks fit, strike out his own and subsequent indorsements, and again negotiate the bill. (3.) Where an accommodation bill is paid in due course by the party accommodated the bill is discharged. 60. When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary whereon indorse- course of business, it is not incumbent on the banker to show that the indorse- ment is forged. ment of the payee or any subsequent indorsement was made by or under the authority of the person whose indorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such indorsement has been forged or made without authority. Acceptor the holder at maturity. Express waiver. 1 Cancellation. Alteration of Bill. Acceptance for honour suprà protest. 61. When the acceptor of a bill is or becomes the holder of it at or after its maturity, in his own right, the bill is discharged. 62. (1.) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor the bill is discharged. The renunciation must be in writing, unless the bill is delivered up to the acceptor. (2.) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation. 63. (1.) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged. (2.) In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent. In such case any indorser who would have had a right of recourse against the party whose signature is cancelled, is also discharged. (3.) A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inoperative; but where a bill or any signature thereon appears to have been cancelled the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority. 64. (1.) Where a bill or acceptance is materially altered without the assent/ of all parties liable on the bill, the bill is avoided except as against a party who has himself made, authorised, or assented to the alteration, and subsequent indorsers. Provided that, Where a bill has been materially altered, but the alteration is not apparent and the bill is in the hands of a holder in due course, such holder may avail himself of the bill as if it had not been altered, and may enforce payment of it according to its original tenor. (2.) In particular the following alterations are material, namely, any alteration of the date, the sum payable, the time of payment, the place of payment, and, where a bill has been accepted generally, the addition of a place of payment without the acceptor's assent. ACCEPTANCE AND PAYMENT FOR HONOUR. 65. (1.) Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill suprà protest for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. 1 ! ADDENDA TO VOL. I. 673 due, the delay caused by presenting the bill for acceptance Bills of Ex- before presenting it for payment is excused, and does not 1882. change Act, discharge the drawer and indorsers. This sub-section settles a doubtful point. Suppose a bill, payable one month after date, is drawn in New York on Liverpool payable in London. It only reaches the English holder on the day it matures. He must, nevertheless, present it for acceptance to the drawee in Liverpool. Formerly the usual practice was to protest the bill in London without any presentment to the drawee. Presentment for acceptance. (2.) A bill may be accepted for honour for part only of the sum for which Acceptance for it is drawn. (3.) An acceptance for honour suprà protest in order to be valid must- (a.) be written on the bill, and indicate that it is an acceptance for honour : (b.) be signed by the acceptor for honour. (4.) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer. (5.) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour. honour suprà protest. 66. (1.) The acceptor for honour of a bill by accepting it engages that he Liability of will, on due presentment, pay the bill according to the tenor of his acceptance, honour. Acceptor for if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts. (2.) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted. 67. (1.) Where a dishonoured bill has been accepted for honour suprà Presentment to protest, or contains a reference in case of need, it must be protested for non- Acceptor for payment before it is presented for payment to the acceptor for honour, or referee in case of need. (2.) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment the bill must be forwarded not later than the day following its maturity for presentment to him. (3.) Delay in presentment or non-presentment is excused by any circum- stance which would excuse delay in presentment for payment or non-present- ment for payment. (4.) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him. honour. 68. (i.) Where a bill has been protested for non-payment, any person may Payment for intervene and pay it suprà protest for the honour of any party liable thereon, honour suprà or for the honour of the person for whose account the bill is drawn. (2.) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference. (3.) Payment for honour suprà protest, in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour which may be appended to the protest or form an extension of it. (4.) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intention to pay the bill for honour, and for whose honour he pays. (5.) Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is R R protest. 4 1 Bills of Ex- change Act, 1882. Duties as to qualified acceptances. Payment for honour suprà protest. Holder's right to duplicate of lost Bill. Action on lost Bill. Rules as to sets. Rules where laws conflict. 674 ADDENDA TO VOL. I. PAGE 180.-SEC. 44. (2.) Where a qualified acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorized the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the subrogated for, and succeeds to both the rights and duties of the holder as regards the party for whose honour he pays, and all parties liable to that party. (6.) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest. If the holder do not on demand deliver them up he shall be liable to the payer for honour in damages. (7.) Where the holder of a bill refuses to receive payment suprà protest he shall lose his right of recourse against any party who would have been dis- charged by such payment. LOST INSTRUMENTS. 69. Where a bill has been lost before it is overdue, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer if required to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again. If the drawer on request as aforesaid refuses to give such duplicate bill he may be compelled to do so. 70. In any action or proceeding upon a bill, the court or a judge may order that the loss of the instrument shall not be set up, provided an indemnity be given to the satisfaction of the court or judge against the claims of any other person upon the instrument in question. BILL IN A SET. 71. (1.) Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill. (2.) Where the holder of a set indorses two or more parts to different persons, he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if the said parts were separate bills. (3.) Where two or more parts of a set are negotiated to different holders in, due course, the holder whose title first accrues is as between such holders deemed the true owner of the bill; but nothing in this sub-section shall affect the rights of a person who in due course accepts or pays the part first presented to him. (4.) The acceptance may be written on any part, and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill. (5.) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof. (6.) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise, the whole bill is discharged. CONFLICT OF LAWS. 72. Where a bill drawn in one country is negotiated, accepted, or payable in another, the rights, duties, and liabilities of the parties thereto are determined as follows:- (1.) The validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance or indorsement, or 2 ADDENDA TO VOL. I. 675 bill. The provisions of this sub-section do not apply to Bills of Ex- change Act, a partial acceptance, whereof due notice has been given. 1882. Where a foreign bill has been accepted as to part, it must Duties as to be protested as to the balance. See sec. 19, as to what is a qualified acceptance. The most important instance is the case of a bill accepted payable against delivery of bills of lading. In some trades the practice of taking such acceptances is so common that it might perhaps be held that there was implied authority to the holder to take such an acceptance. Sometimes, too, the terms of a documentary bill are such as impliedly to authorise it. When the holder takes a partial acceptance he should give notice of the qualification, not notice of dishonour. qualified acceptances. acceptance suprà protest, is determined by the law of the place where Rules where such contract was made. Provided that— (a.) Where a bill is issued out of the United Kingdom it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue : (b.) Where a bill, issued out of the United Kingdom, conforms, as regards requisites in form, to the law of the United Kingdom, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold, or become parties to it in the United Kingdom. (2.) Subject to the provisions of this Act, the interpretation of the drawing, indorsement, acceptance, or acceptance suprà protest of a bill, is deter- mined by the law of the place where such contract is made. Provided that where an inland bill is endorsed in a foreign country the indorsement shall as regards the payer be interpreted according to the law of the United Kingdom. (3.) The duties of the holder with respect to presentment for acceptance or payment and the necessity for or sufficiency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured. (4.) Where a bill is drawn out of but payable in the United Kingdom and the sum payable is not expressed in the currency of the United Kingdom, the amount shall, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable. (5.) Where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable. PART III. CHEQUES ON A BANKER. laws conflict. 73. A cheque is a bill of exchange drawn on a banker payable on demand. Cheque defined Except as otherwise provided in this Part, the provisions of this Act appli- cable to a bill of exchange payable on demand apply to a cheque. 74. Subject to the provisions of this Act :- (1.) Where a cheque is not presented for payment within a reasonable time Presentment of of its issue, and the drawer or the person on whose account it is drawn cheque for had the right at the time of such presentment as between him and the payment. banker to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid. : Bills of Ex- change Act, 1882. Duties as to qualified acceptances. Presentment of cheque for payment. Revocation of banker's authority. General and special crossings defined. Crossing by drawer or after issue. Crossing a material part of cheque. Duties of Banker as to crossed cheques. 676 ADDENDA TO VOL. I. (3.) When the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto. (2.) In determining what is a reasonable time regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case. (3.) The holder of such cheque as to which such drawer or person is discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge, and entitled to recover the amount from him. 75. The duty and authority of a banker to pay a cheque drawn on him by his customer are determined by- (1.) Countermand of payment: (2.) Notice of the customer's death. CROSSED CHEques. 76. (1.) Where a cheque bears across its face an addition of— (a.) The words "and company "and or any abbreviation thereof between two parallel transverse lines, either with or without the words "not negotiable"; or (b.) Two parallel transverse lines simply, either with or without the words "not negotiable"; that addition constitutes a crossing, and the cheque is crossed generally. (2.) Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable, not negotiable," that addition constitutes a crossing, and the cheque is crossed specially and to that banker. 77. (1.) A cheque may be crossed generally or specially by the drawer. (2.) Where a cheque is uncrossed, the holder may cross it generally or specially. (3.) Where a cheque is crossed generally the holder may cross it specially. (4) Where a cheque is crossed generally or specially, the holder may add the words "not negotiable.' (5.) Where a cheque is crossed specially the banker to whom it is crossed may again cross it specially to another banker for collection. (6.) Where an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection, he may cross it specially to himself. 78. (1.) A crossing authorised by this Act is a material part of the cheque; it shall not be lawful for any person to obliterate or, except as authorised by this Act, to add to or alter the crossing. 79. (1.) Where a cheque is crossed specially to more than one banker except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall refuse payment thereof. (2.) Where a banker on whom a cheque is drawn which is so crossed nevertheless pays the same, or pays a cheque crossed generally otherwise than to a banker, or if crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection being a banker, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid. Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed, or to his agent for collection being a banker, as the case may be. ADDENDA TO VOL. I. 677 PAGE 197.-SEC. 33.-Where a bill purports to be Bills of Ex- change, Act, indorsed conditionally, the condition may be disregarded 1882. by the payer, and payment to the indorsee is valid whether Conditional the condition has been fulfilled or not. As between indorser and indorsee the condition presumably would be operative; and if the indorsee received payment without the condition being fulfilled, he would hold the money in trust for the indorser. The following indorsement would be conditional :— Pay C., or order, on 'the arrival of the ship Swallow at Calcutta.'" Pay C., or order, if 'he marries D."" See sec. 35 as to restrictive indorsement. indorsement Drawer where 80. Where the banker, on whom a crossed cheque is drawn, in good faith Protection to and without negligence pays it, if crossed generally, to a banker, and if Banker and crossed specially, to the banker to whom it is crossed, or his agent for cheque is crossed. collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof. 81. Where a person takes a cheque which bears on it the words "not Effect of crossing negotiable," he shall not have and shall not be capable of giving a better title on holder. to the cheque than that which the person from whom he took it had. Banker. 82. Where a banker in good faith and without negligence receives payment Protection to for a customer of a cheque crossed generally or specially to himself, and the collecting customer has no title or a defective title thereto, the banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment. PART IV. PROMISSORY NOTES. 83. (1.) A promissory note is an unconditional promise in writing made by Promissory one person to another signed by the maker, engaging to pay, on demand, or at note defined. a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer. (2.) An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unless and until it is indorsed by the maker. (3.) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof. (4.) A note which is, or on the face of it purports to be, both made and payable within the British Islands is an inland note. Any other note is a foreign note. 84. A promissory note is inchoate and incomplete until delivery thereof to Delivery the payee or bearer. necessary. 85. (1.) A promissory note may be made by two or more makers, and Joint and they may be liable thereon jointly, or jointly and severally, according to several notes. its tenor. (2.) Where a note runs "I promise to pay I promise to pay " and is signed by two or more persons it is deemed to be their joint and several note. 86. (1.) Where a note payable on demand has been indorsed, it must be Note payable presented for payment within a reasonable time of the indorsement. If it be on demand. not so presented the indorser is discharged. (2.) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case. (3.) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue. } Bills of Ex- change Act, 1882. 678 ADDENDA TO VOL. I. PAGES 203, 208.-SEC. 15.-The drawer of a bill and any indorser may insert therein the name of a person to whom Case of need. the holder may resort in case of need, that is to say, in case Referee. Presentment of the bill is dishonoured by non-acceptance or non-payment. Such person is called the referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may think fit. A bill must be noted before it can be presented to the referee in case of need, see secs. 65, 68. . It may possibly still be necessary to resort to the case of need to charge a foreign drawer in his own country. 87. (1.) Where a promissory note is in the body of it made payable at a note for payment. particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable. Liability of maker. Application of Part II. to notes. (2.) Presentment for payment is necessary in order to render the indorser of a note liable. (3.) Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an indorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the indorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice. 88. The maker of a promissory note by making it— (1.) Engages that he will pay it according to its tenor; (2.) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse. 89. (1.) Subject to the provisions in this part, and except as by this section provided, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes. (2.) In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first indorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer's order. (3.) The following provisions as to bills do not apply to notes, namely, provisions relating to- (a.) Presentment for acceptance; (b.) Acceptance; (c.) Acceptance suprà protest; (d.) Bills in a set. Good faith. Signature. (4.) Where a foreign note is dishonoured, protest thereof is unnecessary. PART V. SUPPLEMENTARY. 90. A thing is deemed to be done in good faith, within the meaning of this Act, where it is in fact done honestly, whether it is done negligently or not. 91. (1.) Where, by this Act, any instrument or writing is required to be signed by any person, it is not necessary that he should sign it with his own hand, but it is sufficient if his signature is written thereon by some other person by or under his authority. (2.) In the case of a corporation, where, by this Act, any instrument or writing is required to be signed, it is sufficient if the instrument or writing be sealed with the corporate seal. But nothing in this section shall be construed as requiring the bill or note of a corporation to be under seal. f .) ADDENDA TO VOL. I. 679 change Act, When present- PAGE 209.-SEC. 41. (2.) Presentment in accordance Bills of Ex- with these rules is excused, and a bill may be treated as 1882. dishonoured by non-acceptance--- (a.) Where the drawee is dead or bankrupt, or is a ficti- acceptance tious person or a person not having capacity to contract by bill : In the first official issue of the Act the words "or bankrupt " had slipped out. (6 The omission has been rectified in subsequent issues. See 'bankrupt" defined by sec. 2. ment for excused. 92. Where, by this Act, the time limited for doing any act or thing is less Computation of than three days, in reckoning time, non-business days are excluded. Non-business days" for the purposes of this Act mean— (a.) Sunday, Good Friday, Christmas Day: (6.) A bank holiday under the Bank Holidays Act, 1871, or Acts amending it : (c.) A day appointed by Royal proclamation as a public fast or thanks- giving day. Any other day is a business day. time. 93. For the purposes of this Act, where a bill or note is required to be When noting protested within a specified time or before some further proceeding is taken, it equivalent to is sufficient that the bill has been noted for protest before the expiration of the protest. specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting. accessible. 94. Where a dishonoured bill or note is authorised or required to be Protest when protested, and the services of a notary cannot be obtained at the place where notary not the bill is dishonoured, any householder or substantial resident of the place may, in the presence of two witnesses, give a certificate, signed by them, attesting the dishonour of the bill, and the certificate shall in all respects operate as if it were a formal protest of the bill. The form given in Schedule I to this Act may be used with necessary modifications, and if used shall be sufficient. 95. The provisions of this Act as to crossed cheques shall apply to a Dividend warrant for payment of dividend. 96. The enactments mentioned in the second schedule to this Act are hereby repealed as from the commencement of this Act to the extent in that schedule mentioned. Provided that such repeal shall not affect anything done or suffered, or any right, title, or interest acquired or accrued before the commencement of this Act, or any legal proceeding or remedy in respect of any such thing, right, title, or interest. warrants may be crossed. Repeal. 97. (1.) The rules in bankruptcy relating to bills of exchange, promissory Savings. notes, and cheques, shall continue to apply thereto notwithstanding anything in this Act contained. (2.) The rules of common law including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to bills of exchange, promissory notes, and cheques. (3.) Nothing in this Act or in any repeal affected thereby shall affect- (a.) The provisions of the Stamp Act, 1870, or Acts amending it, or any law or enactment for the time being in force relating to the revenue: (b.) The provisions of the Companies Act, 1862, or Acts amending it, or any Act relating to joint stock banks or companies : (c.) The provisions of any Act relating to or confirming the privileges of the Bank of England or the Bank of Ireland respectively: (d.) The validity of any usage relating to dividend warrants or the indorse- ments thereof. Bills of Ex- change Act, + 1882. दे Į When presentment for acceptance excused. Saving of summary diligence in Scotland. Construction with other Acts, &c. Parole evidence 680 ADDENDA TO VOL. I. (b.) Where, after the (c.) (3.) Where, after the exercise of reasonable diligence, such presentment cannot be effected: Where, although the presentment has been irregular, acceptance has been refused on some other ground. The fact that the holder has reason to believe that the bill, on presentment, will be dishonoured does not excuse presentment. 98. Nothing in this Act or in any repeal effected thereby shall extend or restrict, or in any way alter or affect the law and practice in Scotland in regard to summary diligence. 99. Where any Act or document refers to any enactment repealed by this Act, the Act or document shall be construed, and shall operate, as if it referred to the corresponding provisions of this Act. 100. In any judicial proceeding in Scotland, any fact relating to a bill of allowed in certain exchange, bank cheque, or promissory note, which is relevant to any question judicial proceed- of liability thereon, may be proved by parole evidence: Provided that this ings in Scotland. enactment shall not in any way affect the existing law and practice whereby Form of Protest in absence of Rotary. Enactments Repealed. the party who is, according to the tenor of any bill of exchange, bank cheque, or promissory note, debtor to the holder in the amount thereof, may be required, as a condition of obtaining a sist of diligence, or suspension of a charge, or threatened charge, to make such consignation, or to find such caution as the court or judge before whom the cause is depending may require. This section shall not apply to any case where the bill of exchange, bank cheque, or promissory note has undergone the sesennial prescription. SCHEDULES. FIRST SCHEDULE. Form of protest which may be used when the services of a notary cannot be obtained. at Know all men that I, A.B. [householder], of in the county of in the United Kingdom, at the request of C.D., there being no day of notary public available, did on the 188 demand payment [or acceptance] of the bill of exchange hereunder written, from E. F., to which demand he made answer [state answer, if any] wherefore I now, in the presence of G.H. and J.K. do protest the said bill of exchange. (Signed) A.B. G.H. J.K. } Witnesses. N.B.-The bill itself should be annexed, or a copy of the bill and all that is written thereon should be underwritten.* Session and Chapter. SECOND SCHEDULE. 9 Will. III., c. 17.... 3 & 4 Anne, c. 8...... ENACTMENTS REPEALed. Title of Act and extent of Repeal. An Act for the better payment of inland bills of exchange. An Act for giving like remedy upon promissory notes as is now used upon bills of exchange, and for the better payment of inland bills of exchange. 17 Geo. III., c. 30... An Act for further restraining the negotiation of promissory notes and inland bills of exchange under a limited sum within that part of Great Britain called England. * See forms of the various descriptions of protests-for non-acceptance, non-acceptance and retention of bill, non-payment, honour, and better security, in our first volume, and where at page 222 reference is made to the stamp duty on the instrument. The above Act does not require a protest to be under seal. ADDENDA TO VOL. I. 681 change Act, PAGE 238.-SEC. 61.-When the acceptor of a bill is or Bills of Ex- becomes the holder of it at or after its maturity, in his own 1882. right, the bill is discharged. It was formerly held at common law, that where the acceptor of a bill became the holder of it as executor of the late holder the bill was discharged. This section apparently negatives that rule. Session and Chapter. 39 & 40 Geo. III., c. 42 48 Geo. III., c. 88... I & 2 Geo. IV., c. 78 7 & 8 Geo. IV., c. 15 9 Geo. IV., c. 24 .... 2 & 3 Will. IV., c. 98 6 & 7 Will. IV., c. 58 8 & 9 Vict., c. 37. in part. 19 & 20 Vict., c. 97.. in part. 23 & 24 Vict., c. III in part. 34 & 35 Vict., C. 74.. 39 & 40 Vict., c. 81.. 41 & 42 Vict., c. 13.. Title of Act and extent of Repeal. Acceptor the holder at maturity. An Act for the better observance of Good Friday in Enactments Repealed. certain cases therein mentioned. An Act to restrain the negotiation of promissory notes and inland bills of exchange under a limited sum in England. An Act to regulate acceptances of bills of exchange. An Act for declaring the law in relation to bills of exchange and promissory notes becoming payable on Good Friday or Christmas Day. An Act to repeal certain Acts, and to consolidate and amend the laws relating to bills of exchange. and promissory notes in Ireland, in part; that is to say, Sections two, four, seven, eight, nine, ten, eleven. An Act for regulating the protesting for non-payment of bills of exchange drawn payable at a place not being the place of the residence of the drawee or drawees of the same. An Act for declaring the law as to the day on which it is requisite to present for payment to acceptor or acceptors suprà protest for honour, or to the referee or referees, in case of need, bills of exchange which have been dishonoured. An Act to regulate the issue of bank notes in Ireland, and to regulate the repayment of certain sums advanced by the Governor and Company of the Bank of Ireland for the public service, in part; that is to say, Section twenty-four. The Mercantile Law Amendment Act, 1856, in part; that is to say, Sections six and seven. An Act for granting to Her Majesty certain duties of stamps, and to amend the laws relating to the stamp duties, in part; that is to say, Section nineteen. An Act to abolish days of grace in the case of bills of exchange and promissory notes payable at sight or on presentation. The Crossed Cheques Act, 1876. The Bills of Exchange Act, 1878. ENACTMENT REPEALED AS TO SCOTLAND. 19 & 20 Vict., c. 60.. in part. The Mercantile Law (Scotland) Amendment Act, 1856, in part; that is to say, Sections ten, eleven, twelve, thirteen, four- teen, fifteen, and sixteen. } + 1 ནཱ } 3 1 Bills of Ex- change Act, 1882. Express waiver. Protest of bill. When noting equivalent to protest. Notice by return of dishonoured bill. 682 ADDENDA TO VOL. I. SEC. 62.—(1.) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor the bill is discharged. The renunciation must be in writing, unless the bill is delivered up to the acceptor. The provision requiring the renunciation to be in writing is new in England. PAGES 256, 258.-SEC. 51. (6.) A bill must be protested at the place where it is dishonoured: Provided that— (a.) When a bill is presented through the post office, and returned by post dishonoured, it may be pro- tested at the place to which it is returned, and on the day of its return if received during business hours, and if not received during business hours, then not later than the next business day : This sub-section recognises the custom of the Liverpool notaries as to bills drawn on the cotton spinners in Lancashire. (b.) When a bill drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further pre- sentment for payment to, or demand on, the drawee is necessary. SEC. 93.—For the purposes of this Act, where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting. See especially secs. 65 to 68. PAGE 272.-SEC. 49. (6.) The return of a dishonoured bill to the drawer or an indorser is, in point of form, deemed a sufficient notice of dishonour. This sub-section recognises a common practice of collecting bankers which before was of doubtful validity. See, too, sub-sections (8) and (13). ADDENDA TO VOL. I. 683 Acceptance honour PAGE 283.-SEC. 65. (1.) Where a bill of exchange Bills of Ex- change Act, has been protested for dishonour by non-acceptance, or 1882. protested for better security, and is not overdue, any cour person, not being a party already liable thereon, may, with suprà protest. the consent of the holder, intervene and accept the bill suprà protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn. By virtue of sec. 93, it is sufficient that the bill has been noted, without the protest having been actually extended. The person for whose account the bill is drawn is commonly spoken of as the "third account." (3.) An acceptance for honour suprà protest in order to be valid must- (a.) be written on the bill, and indicate that it is an acceptance for honour: (b.) be signed by the acceptor for honour. Compare sec. 68 (3), (4.) The clause in the bill requiring acceptance for honour to be attested by a notarial act was cut out in committee. PAGE 287.-SEC. 65. (5.) Where a bill payable after Maturity under sight is accepted for honour, its maturity is calculated from acceptance for the date of the noting for non-acceptance, and not from the after sight. date of the acceptance for honour. This sub-section affirms the existing practice, and gets rid of an inconvenient decision that the maturity should be calculated from the date of accept- ance for honour. honour on bill summary PAGE 294-SEC. 98.-Nothing in this Act or in any Saving of repeal effected thereby shall extend or restrict, or in any diligence in way alter or affect the law and practice in Scotland in Scotland. regard to summary diligence. As to summary diligence in Scotland, that is to say, the summary enforce- ment of a bill or note, see 12 Geo. III., c. 72, secs. 37, 39-43, and 1 and 2 Vict., c. 114, secs. I, 9. A summary procedure in England was given by the Act of 1855, 18 and 19 Vict., c. 67; but the procedure under that Act has been abrogated as regards the High Court by Order II., 6a, of the Rules of the Supreme Court and the summary procedure under Order XIV. of those Rules has been substituted. The Act of 1855 still applies to some of the inferior courts in England; e.g., the Mayor's Court of London. { } 1 } k Bills of Ex- change Act, 1882. Presentment of cheque for payment. Prolonged circulation. 684 ADDENDA TO VOL. I. PAGE 384.-SEC. 74.-Subject to the provisions of this Act- The provisions referred to, presumably, are those of sec. 46, which deals with excuses for non-presentment. (1) Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person on whose account it is drawn had the right at the time of such presentment, as between him and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid. (2.) In determining what is a reasonable time regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case. (3.) The holder of such cheque as to which such drawer or person is discharged shall be a creditor in lieu of such drawer or person of such banker to the extent of such discharge, and entitled to recover the amount from him. This section is new law. It was introduced in the Lords to mitigate the rigour of the common law rule, according to which, if the bank failed before the cheque was presented, the drawer was discharged, even though the bank eventually paid nineteen shillings in the pound. The new rule operates as follows:-A. draws a cheque for £100 on his banker, which is not presented within a reasonable time. The banker fails, A. having at the time sufficient money to his credit to meet the cheque. A. is discharged; but the holder can prove for £100 against the banker's estate. And see London and County Bank v. Groome, 26th Nov., 19th Dec., 1881, 30 W.R., 382; 8 L.R., Q.B.D., 288; 51 L.J.Q.B., 224; 46 L.T., 60. In a note to section 36, sub-section 3, relating to the negotiation of bills, Mr. Chalmers says that by virtue of section 73 { • ADDENDA TO VOL. I. 685 sub-section 3, of section 36 applies to cheques, that a Bills of Ex- change Act, person who takes a stale cheque takes it at his peril, that 1882. if it be all right he can enforce it against the drawer, Prolonged but if it be affected by fraud or illegality, he cannot recover on it. circulation. 1 Warrants may PAGE 404.—SEC. 95.-The provisions of this Act as to Dividend crossed cheques shall apply to a warrant for payment of be crossed. dividend. The Crossed Cheques Act only applied in terms to the dividend warrants of the Bank of England and Bank of Ireland. The present section is general. And under "Crossed Cheques," it is noted that secs. 76 to 82 reproduce, with two slight additions, the provisions of the Crossed Cheques Act, 1876, 39 and 40 Vict., c. 81, and that sec. 82 reproduces the second clause of sec. 12 of the Crossed Cheques Act, 1876, as interpreted by the case of Matthiessen v. London and County Bank, 5 C.P.D., 7. As to this case see ante pp. 620 to 623, and as to the Crossed Cheques Act, 1876, see our first volume, pp. 403 to 406. It will be observed from section 97 that the rules in bankruptcy, the provisions of the Stamp Acts, and of the Companies Acts relating to Joint Stock Banks or Companies, and of any act relating to the privileges of the Bank of England or Bank of Ireland, and the validity of any usage relating to dividend warrants or their indorsement are not affected by the statute, and that questions relating to bills and notes which are not specifically dealt with by it are still to be governed by the common law, "which," as remarked by Mr. Chalmers, "includes the law merchant, that is to say, the usages of trade as recognized and enforced by the Courts." With reference to dividend warrants payable to the order of two or more persons, the usage is to pay on the indorsement of any one of them. This usage is preserved in so far as it is now valid. F Reservations. PAGES 479–481.—The decision in this case, in re Duffy, Bills accepted Dutch v. O'Leary, was followed in Carter v. White, Chan. in blank. Div., Kay, J., 10th, 11th, and 14th March, 1882, 30 W.R., 1 1 $ ? Alleged libellous publication. 686 ADDENDA TO VOL. I. 466; 20 L.R., Ch. D., 225; 51 L.J., Ch. 465; 46 L.T., 236. The following case, involving long and costly litigation, may be noted. In the Capital and Counties Bank v. Henty and Sons, before the House of Lords from the Court of Appeal, Nov. 11, 14, 22, 1881; July 6, 13, 1882, reported at great length, 31 W.R., 157, Henty and Sons, trading as brewers, took umbrage at a manager of one of the branches of the bank, in connection with the cashing of their cheques, and issued to a number of their tenants and customers a circular as follows:- "Messrs. Henty and Sons hereby give notice that they will not receive in payment cheques drawn on any of the branches of the Capital and Counties Bank." This occasioned a run upon the bank, who thereupon brought an action for libel, alleging as an innuendo that the meaning of the circular was that they were insolvent. It was held, however, by Lords Selborne, C., Lords Blackburn, Watson, and Bramwell, Lord Penzance dissenting, that the circular was not in itself defamatory, and that there was no evidence to go to the jury that it was intended in a defamatory sense, and that, in the absence of express malice, the occasion was privileged. Decision of the Court of Appeal, which had reversed a judgment of the Common Pleas Division in favour of the Bank, affirmed. J PART XIII. ADDENDA TO PRESENT VOLUME. ANTE END OF PAGE 5.-Add to Total, after State Inspection. Book, "and General Ledger." Bills negotiated. Report I. PAGE 16-Following Bills Current, where the number Report I. of foreign bills negotiated is considerable, a page may be appropriated to them, ruled, as in the case of Bills Current. PAGE 41.- Foreign Countries.-British Agencies. Commission British Possessions and Colonies.-On 1st January, 1883, Orders. the rates of commission were reduced, being now for sums not exceeding :- on Money £2...... £5....... £7..... £10 6d. IS. Is. 6d. 25. PAGE 57.-On 1st October, 1882, Double or Reply Reply Post Inland Post Cards were introduced, and are sold at the Cards. following prices :- REPLY THICK CARDS. REPLY THIN CARDS. I......1½d. 4.52d. I......1/4 d. 4......43/4d. 2......234d. 5......634d. 2......2/2d. 5......6d. 3......4d. 6......8 d. 3......32d. 6......7d. 6/8 per parcel of 60. The Reply Cards are not sold in sheets like the single cards. 11/8 per parcel of 120. * E 1 1. 688 Embossed "Commercial" Envelopes. ADDENDA TO PRESENT Vol. PAGE 61.-In February, 1883, were introduced cheaper envelopes, called "commercial envelopes," the prices of which are:— I......1/4 d. 2......2/4d. 3......34d. 4......44d. 5......5/4d. 10½d. IO... 20.....1/9 240......21/- ! Foreign Post Cards. Besides these, there will remain the 434in. x 3in., and the 54in. × 3in. kinds, the former at the prices indicated under A., ante page 61, and the latter at those indicated under "B., C., and D. sizes," same page. On 1st January, 1883, there was a new issue of foreign post cards with impressed stamps of Id., 1½d, and 2d. each, and these cards are sold at those rates, and are transmissible to all the countries of the Postal Union without extra charge. Reply post cards for certain places abroad are also issued with impressed stamps of 2d., 3d., and 4d. respectively.* By the Berne International Office the following statement is given of the World's Postal Statistics for 1881 :-"Ten new states have entered the Postal Union, and, as many of these are insular countries, we cannot but remark with regret that Australia and New Zealand still hold aloof from this most beneficial zollverein. The new members of the Union are Chili, Columbia, the Island group of the Antilles, Grenada, Saint Lucie, Tabago, and the Turkish Isles, another group of the Antilles, Barbadoes and St. Vincent, Guatemala, Haiti, Paraguay, and since the commencement of the present During 1881 the year the island of Hawai and the Nicaraguan States. countries of the Postal Union forwarded 3,866,000,000 letters, 649,000,000 post cards, 3,000,000 post cards with prepaid replies, 1,983,000,000 news- papers, 1,023,000,000 circulars, &c., 64,000,000 patterns, and 98,000,000 small parcels. Money orders representing £322,000,000 (95,000,000 single orders) were circulated, mostly in small amounts. preceding figures produces some interesting data. 13,000,000 letters and post cards are posted daily on the face of the globe; 3,418,000,000 letters are annually distributed in Europe, 1,246,000,000 in America, 76,000,000 in Asia, 36,000,000 in Australia, and 11,000,000 in Africa." The subdivision of the We find that more than From the Postmaster-General's Report for 1881-2, the number of letters, post cards, book-packets, newspapers, &c. received in the United Kingdom from abroad during the year is roughly estimated at 69,000,000, and the number dispatched at about 87,000,000. The number of letters delivered was in round figures over 1,229,000,000, post cards over 135,000,000, and telegrams over 31,000,000. As contrasted with the telegraphic charges in this country, those of France and Belgium are less, messages of ten words in both of these countries costing 5d.; and in Paris the price for pneumatic tube messages is 3d. for open cards, and 5d. for closed cards. Respecting postal orders, there were issued within the year 4,462,920, amounting to 2,006,917, and the classes of orders most in demand were the Is., 55., IOS., and 20s. The average time of circulation of these orders was six days, a fact not justifying the fear that they would be used as currency and so practically inflate the paper money of the country. The gross Post Office } J 4 ₤ ་ ADDENDA TO PRESENT VOL. 689 Exchange. Record of PAGE 102.-In the class of books used for Bills of Exchange, Bills of where these instruments are very numerous, it may be useful to have a special record of the various acceptors, arranged Acceptors. in the form of an alphabetical index, ruled as follows:- NAME. 4/82 144/82 1/4/82 6/5/82 3/6/82 A……….. 50p 673 340 I 000 A..... A....... B............ &c. On maturity of the acceptances, their amounts, with the dates when due, are simply expunged as above. whom bills In connection with the regular bills remitted for Record of collection book, a separate record constructed on the same Clients for principle as the above might in some instances be found collected. serviceable, the name column being, of course, used for the names of clients for whom the bills are collected. revenue for the year was £9,028,374, and the expenditure £5,927,899, leaving a net revenue of £3,100,475-an increase of £32,396 over the previous year. The long deferred Inland Parcels Post scheme is to come into operation on Ist August, 1883, the rates of postage to be 3d. for parcels not exceeding 1lb.; 6d. exceeding Ilb., and not exceeding 3lb.; 9d. exceeding 3lb., and not exceeding 5lb.; and Is. exceeding 5lb., and not exceeding 7lb. And it is stated that the scheme has been approved of for the insurance of letters containing money and other valuables, the rates to be the same as for parcels, Id. up to £5, and 2d. up to £10, the two insurance schemes to come into operation as soon as working arrangements can be made. As this is being printed, it is announced that a sixpenny telegram is to be introduced on Oct. 1st, 1884. The necessary preliminary expenses are expected to amount to £500,000, of which £200,000 will be expended in the current financial year. The reduction of the postage to d. for printed matter under 1 oz. is contemplated. In Holland the rate is 4d. In France d., and in Belgium d. With reference to insurances and annuities on lives, it may be added that under 27 and 28 Vict., c. 43, the Postmaster-General is empowered to insure the lives of persons of either sex, between the ages of 16 and 60, for not less than £20, or more than 100; and to grant immediate or deferred annuities of not more than £50 on the lives of persons of either sex, and of the age of 10 years and upwards. SS 1 3 I 3 General Signature Book. Married Woman. Treasury Bills. 690 ADDENDA TO PRESENT VOL. PAGE 106.—And to each letter may be several pages under each of the vowels, the number of these pages being increased in connection with those letters under which most names will appear. PAGE 120-But see the recent change in the law, ante page 639, and see footnote, ante page 647. PAGE 334, FOOTNOTE.—The following is in continuation of the table, obtained from the same source, 13th Dec., 1882- TREASURY BILLS. THREE MONTHS.' Maximum Equivalent SIX MONTHS. d. 98 6 4 Equivalent to a discount rate of £ S. d. 3 7 4 None allotted. 2 12 6 to a discount 1882. price. £ S, d. rate of £ S. d. Maximum price. £ S. March...... 99 I O April May 99 8 99 9 I 2 June 99 10 73...... 3 2 2 H 3 16 O • July • August I ... 38 7 I 17 4 6 I 19 4 2 3 38 8 O 4 I 8 ... 98 13 9 98 19 5 2 I 2 None allotted. • 98 14 3 2 II 6 98 6 0 380 ... None allotted. Advances to September October 99 IO 2 99 9 99 3 O 98 19 7 November *** 99 3 December ..99 3 7 * 2 3 7 4 358 None allotted. 98 9 0 320 As has been previously pointed out, it is not possible to arrive at an exact average of the prices paid by the Government, inasmuch as the figures published show the lowest prices, that is the highest discount rates, that obtain an allotment, but it is interesting to find that the averages show that the Treasury has during this year paid £3. Is. 4d. as the maximum discount rate on the three months' bills, and £2. 19s. 10d. as the maximum discount rate on the six months' bills. It may therefore be assumed that, seeing the minimum price announced frequently obtains only a percentage of the total amount applied for, the Treasury has certainly not paid more than 3 per cent all round on its borrowings on these bills. PAGE 348.-Sometime after 1857 advances were partially Bill Brokers. resumed to the bill brokers, and latterly the old practice was in a measure reverted to, but a check to this has been recently given, and it has been now determined to limit the accommodation to the periods immediately before the dividends become payable, and when the amount of public money is considerable at the Bank, and only to depart from this rule in very exceptional cases. By this means it is hoped to check undue speculation, and confine the business to strong hands. { } ADDENDA TO PRESENT VOL. 691 Colonial PAGE 358.-In the case of those Banks whose charters Chartered have expired, they have, in the absence of the united Banks. action required by the Treasury, been again compelled to continue under an extension of their previously existing charters, the period of extension granted being for twelve months only. The trouble attending the applications for the annual extensions is considerable, and the cost, including stamps and fees, amounts to 100 guineas in each case. Some of the banks, however, are still hesitating to accept the "model charter," and the Treasury do not intend to bring the subject forward for legislation until there is unanimity amongst the banks in question. favour of PAGE 366.-For clients who exclusively bank with it, Concession in the Bank of England has, since 1878, been in the habit of Clients. discounting at lower rates than those publicly announced when the latter exceed the outside rates. Cash under Court. PAGE 371.-Where a Private Estate Act enacted that Investment of all moneys paid into Court pursuant to the Act "shall in control of the meantime," and until applied, invested, or laid out for any of the purposes by the Act authorized, "be laid out in the name of the Accountant-General in the purchase of Exchequer bills," and an application was made to the Court to sanction the sale of some of the Exchequer bills which were in Court, and invest the proceeds on mortgage, so as to produce a larger income for the tenant for life, Pearson, J., held, on the authority of ex parte St. John's College, Oxford, 31 W.R. 55, L.R. 22, Ch. D. 10, that the Court had power to sanction such an investment. He thought that the judgments of the Court of Appeal in that case showed clearly that they intended to decide that whenever money was under the control and care of the Court, the enlarged power of investment was given by the Act of 1860. Jackson v. Tyas, 8th May, 1883, 27 S.J. 466. PAGE 396.-With reference to a recent and prevailing practice of Limited Liability Companies issuing unstamped 1 1 I 是 ​} Receipts for Loan Deposits. Claim by Stockbrokers against Sellers, and Account between Brokers. 692 ADDENDA TO PRESENT Vol. receipts for loan deposits, the following is a letter from the Secretary of the Inland Revenue to the Limited Liability Association of Oldham :— "Inland Revenue, Somerset House, "London, W.C., 9th May, 1883. "I am directed by the Board of Inland Revenue to acknow- ledge the receipt of a memorial from the Limited Liability Association of Oldham (representing 37 limited liability com- panies), in reference to the neglect of the companies to give duly stamped receipts for loans of £2 and upwards received on deposit. Having carefully weighed the statements made in this memorial, and by the deputation which attended in support thereof, the Board have been pleased to direct that no further proceedings be taken against any of the companies as regards past transactions, on condition that each company pays over to the revenue the sum of forty shillings, and in future strictly adheres to the law applicable to the giving of stamped receipts. I have also to state that inasmuch as there are understood to be other companies outside the Oldham Association who have for like omissions rendered themselves liable to proceedings, the Board would be prepared to accept from each of such other companies the same amount, and on the same conditions. The amount must be paid by each company or society within thirty days from this date. "I am, &c., "F. L. ROBINSON, Secretary." PAGE 405.-Where defendants directed another person to sell on the Stock Exchange, and the latter absconded with Settlement in the money received, the former were held not responsible and not bound by the rules as to settlement between persons dealing on the Stock Exchange. "If the defendants," observed Brett, M.R., in delivering judgment, "had held out Beckett as a person to whom payment might be made they would be bound, but there was no evidence that they did so. The defendants were not dealing on the Stock Exchange, they were directing Beckett to do so. He was directed to sell or get another broker to sell the North British shares, and authority was given to apply the proceeds } 着 ​ADDENDA TO PRESENT VOL. 693 ment in between The plaintiffs Brokers. to the purchase of Great Western shares. Beckett, when Claim by Stockbrokers he received the proceeds of the North British shares, was against Sellers, bound to pay over the money or to apply it to the purchase and Settle- of Great Western shares. He did not do so. He authorized Account the plaintiffs fraudulently to sell other shares. did so, and did not hand over the price. They settled an account which was good against Beckett, but could they set it up against the defendants? It was argued that, by the custom of all exchanges, twò brokers-the one the purchaser and the other a seller-might have settled, as in the present case, so as to bind the principals. No such custom had been proved; if it existed the present was not a settlement within it. The argument as to custom failed." Barker and another v. Beckett and others, C.A., 16th April, 1883, 27 S.J., 417. PAGE 456.-Under sec. 7 it has been held in the recent Bankers' case of Reg. v. Bradlaugh, that the Lord Mayor of London Evidence Act, has no power to make an order for the inspection of 1879. bankers' books. Books Medal." PAGE 519.-In consequence of the fraudulent use of "Hanoverian medals struck in imitation of current coin of the realm a "Bill for Preventing the Sale of Medals resembling Current Coin" has just been introduced. It provides that if any person without due authority or excuse (the proof whereof shall lie on the person accused) makes or has in his posses- sion for sale, or offers for sale, or sells "any medal, cast, coin, or other like thing made wholly or partially of metal or any metallic combination, and resembling in size, figure, and colour any of the Queen's current gold or silver coin, or having thereon a device resembling any device on any of the Queen's current gold or silver coin, or being so formed that it can by gilding, silvering, colouring, washing, or other like process be so dealt with as to resemble any of the Queen's current gold or silver coin," he shall be guilty in England and Ireland of a misdemeanour, and in Scotland of a crime and offence, and on being convicted shall be liable to be imprisoned for any term not exceeding one year, with or without hard labour. V J t Returns of Coinage. Silver Coin Transactions. 694 ADDENDA TO PRESENT VOL. PAGE 529.-From the annual report of the Mint for 1882, it appears that no gold was coined during that year, as in 1881, and that the gold coin received from the Australian Mints by the Bank amounted to £2,203,000, against £3,306,000 in 1881, the following being the receipts for the six preceding years:-1875, £2,726,000; 1876, £2,075,000; 1877, £3,748,000; 1878, £2,773,000; 1879, £1,617,000; and 1880, £2,377,000. In consequence of the contemplated alterations at the Mint the coinage of silver was suspended on 1st February, 1882, the stock of new silver money then held being £489,000, reduced by the end of November to £3,200. A large amount of it went to the Colonies. The following table shows the amount of silver coin delivered to the Bank of England by the Mint in each year since 1866, that issued by the Bank to the public on balance, and in two exceptional years, the amounts received on balance by the Bank from the public. The quantity of worn silver coin withdrawn from circulation is added: SILVER COIN TRANSACTIONS. Delivered to the Bank by the Mint. £ 1867...... 87,000 • Issued by the Bank to the Public. £ Received by the Bank from the Worn Coin withdrawn from Circulation. £ 60,000 75,000 ......105,000- Public. £ 17,000 1868...... 175,000 193,000 1869...... 30,000 228,000 1870...... 188,000...... 328,000 80,000 1871………….. 566,000 650,000 75,000 1872...... 972,000 910,000 65,000 1873...... 578,000 595,000 ... 95,000 1874...... 500,000 432,000 ......II5,000 1875...... 481,000 433,000 ......143,000 1876...... 87,000 57,000 ......275,000 1877...... 186,300 66,000 ......170,000 1878...... 215,500. 187,000 ......220,000 1879...... 153,430 ......121,700 ......240,000 1880...... 190,700 283,000 ......250,000 1881...... 276,000 481,000 ......200,000 1882...... 147,900 251,000 40,000 } 鲁 ​ADDENDA TO PRESENT VOL. 695 held by the PAGE 530.-By the Coinage Committee of the Council Gold Coin of the Institute of Bankers, the average holding of gold Banks of the coin by the banks of the United Kingdom is estimated at about £25,000,000, made up as follows:- Bank of England English Banks Scottish Irish " £11,000,000 8,100,000 3,100,000 2,800,000 £25,000,000 United Kingdom. "The PAGE 545-On 17th May, 1883, the total amount of Resumption of Specie specie paid against notes amounted to £1,600,000 gold, Payments by and £800,000 silver, which, with £2,000,000 distributed Italy. amongst the banks of issue, made a total of £4,400,000 out of the amount borrowed by Italy for the purpose. following table," says the MANCHESTER GUARDIAN of 21st May, 1883, "shows the precise form in which £19,640,000 of gold accumulated by Italy for the purpose of resuming specie payments was received :- Bullion German reichsmarcs. Russian imperials….. English sovereigns Spanish pesetas American dollars • 100 franc or lire pieces. Lire. £ 934,135 23,353,369 5,259,993 210,400 59,755,528 2,390,221 10,058,742 402,350 39,925 = 2,140,233 998, 128 53,505,824 93,300 80 50 >> 40 6,960 14,200 14,040 20 "} "" 328,035,660 ΙΟ )) 9,659,810 5 244,445 Total of Latin coins......... 338,068,415 Total....... ..£19,640,000 13,522,736 ; 5 1 1 of Specie Payments by Italy. 696 ADDENDA TO PRESENT VOL. Resumption It is thus evident that of the whole amount collected about 69 per cent consisted of the coinage of the Latin Union, and this must have been derived mainly from Italy herself and from France. In the published tables showing the countries from which the gold was drawn, Russia is credited with only £1,008,998, but the figures we have quoted prove that much more than double this amount was Russian coin. Germany, on the other hand, stands credited with £2,621,573 of gold, whilst only £210,400 of German coin was collected. It is probable, therefore, that the large amount of Russian gold absorbed by Italy came through German hands. It has all along been supposed that the increased supply yielded by the Russian mines of late has provided much of the foreign gold taken up by Italy for the resumption operations, and the figures we have given afford a substantial confirmation of the theory." Gold and PAGE 552.-The following shows the net gold and silver Silver Imports and Exports imports of British India for each of the last three years ending 31st March :- of British India. Gold. FROM IMPORTS OF GOLD. 1880-1. £ 1881-2. 1882-3. £ £ Australia ........ 291,211 1,321,860 ... 1,426,680 United Kingdom 1,047,849 ... 1,098,202 1,393,172 ... China 1,548,684 1,376,977 1,167,915 Egypt 284,923 290,338 234,475 Ceylon.... 36,838 ... 191,709 ... 211,527 Turkey in Asia 93,225 95,819 ... 205,915 Arabia 206,028 ... 213,688 ... 158,113 Other countries 163,299 267,799... 297,335 Total 3,672,057 4,856,392 5,095,132 Less exports 16,858 12,407 164,263 Net imports............ 3,655,199 4,843,985 4,930,869 Į { FROM ADDENDA TO PRESENT VOL. 1880-1. £ IMPORTS OF SILVER. United Kingdom...... 2,864,594 1881-2. £ 3,767,975 697 Silver. 1882-3. £ 4,390,533 Italy.... 998,700 ... 392,221 1,581,864 Austria....... 168,396 ... 238,175 Other countries...... 1,284,466 1,284,466 ... 2,306,193 ... 2,147,660 Total 5,316,156 6,466,389 8,358,232 Less exports 1,423,582 1,087,339 877,585 7,480,647 Fraudulent Preference. Net imports............ 3,892,574 5,379,050 PAGE 580.-And see ex parte Hill, 27 S.J. 531. In the case of liability for fraud of partner, see Cooper Debt incurred v. Prichard, 28th May, 1883, 27 S.J. 518. by Fraud. Women. Cases. PAGE 587.—And further as to reputed ownership, see Ex Reputed Ownership. parte Lovering, C.A., 21st June, 1883, and 27 S.J., pp. 580, 582. PAGE 649.—It is announced in the Scottish papers that Married Lord Fraser has just given an important decision in regard Divorce to divorce cases. He refused a wife expenses to enable her to conduct a counter action against her husband (who was suing for divorce against her), on the ground that the Married Woman's Property Act having made the wife practically independent of the husband in the matter of estate and the conduct of business, she must in future litigate with her own means like any other litigant. PAGE 650.-Under the Act a gift in joint tenancy to a Gift in Joint Tenancy with man and his wife and a third person is divisible into thirds, Third Person. and not moieties, as it would have been under the old law, by which husband and wife were regarded as one person, and consequently one-half only would have gone to the married couple, the other half going to the third person. It was submitted, in support of the contention that the gift was divisible into moieties, that the general principle of the law as to the status of two parties to a marriage was not rescinded, or in any way affected by the Act. As by the law the wife took nothing, there was no property upon which the Act could operate; to take a contrary view of } } 698 ADDENDA TO PRESENT VOL. Gift in Joint the Act would be to construe it, not so much as giving the Tenancy with Third Person. wife a separate interest in the joint gift to her husband, but Separate Property. Fund in hands of drawee. Telegraphic Transfers. as giving the two, at the expense of the third doneę, a larger share in 1883, when the testatrix died, than they would have taken in 1880, when the will was made. The object of the Act was not to increase, but to secure the wife's property. Chitty, J., however, observed, in the course of his judgment, that the alterations effected by the Act in the old law of husband and wife were so extensive and so marked that it would be wrong any longer, even in the question of the construction of a will, to apply the old principle of husband and wife being a compound person. In re March, deceased, Mander v. Harris, noted in 27 S.J., 566, 23rd June, 1883, while this sheet is passing through the press. And in connection with separate use, see In re Warren;. and King v. Lucas, 27 S.J., 584. PAGE 670.-SEC. 53, SUB-SEC. 2.-In Scotland it has been held that this sub-section applies to a sum less than the amount for which the instrument is drawn, as in a case just reported in the Scottish papers, where a cheque for £161 was presented to the bank and refused payment in consequence of the drawer, who subsequently became bankrupt, having only £135 to his credit, it was decided by the Court of Session that the holder had a right to this amount in preference to the trustee of the bankrupt's estate. Latterly, from the increasing use of telegraphic transfers, or remittance of money by telegraph, particularly in con- nection with the East and the United States of America, there has been a marked diminution in the international bill circulation. The trader now, in preference to drawing a bill against goods and discounting it, has, in many cases, the goods which have been shipped, sold at once "to arrive," the proceeds being immediately remitted to him by telegraph through a banker. One disadvantage resulting from this system is the necessity on the part of the banker of keeping large sums locked up to meet sudden demands, and plans are being now proposed to remedy this, such as by the $ 1 ADDENDA TO PRESENT VOL. 699 Transfers. paying bank "responding to the telegraphic advice, not Telegraphic by an immediate cash payment, but by the issue of a promissory note or the acceptance of a draft at sixty days date payable to the order of the person favoured." Contracts. Another practice of not infrequent occurrence may be Discount noticed, that of contracting by the Indian Banks with the London Bill Brokers to discount beforehand at a fixed rate bills" to arrive" by subsequent mails. This kind of transaction is of course purely speculative, and sometimes results in serious loss to the bill brokers. Recently, December, 1882, considerable contracts were made, by which the bill brokers took the entire contents of mails to arrive up to the middle of January, containing three, four, and six months' bills, at an overhead discount rate of 33% per cent. At the present time of writing, when delivery of the bills is being made, the rate is at least 4 per cent higher than the contract price. dence. In addition to many letters received by the author from Correspon- all parts of the United Kingdom, referring to various points of law and practice, and which, with the author's answers, have afforded material for some parts of the present volume during its progress, the following is the substance of a few of the further communications latterly received, with the replies of the author attached. And for other corres- pondence see ante pages 479 to 481. CORRESPONDENT. "Will you kindly inform me if I am right in understanding the last paragraph in your "Practice of Banking," page 383, thus:- "That I may take a cheque drawn on ourselves by A, and enter it to the credit of B, in his pass book, without losing the right to return the cheque and debit B's account with the amount, should I find, on reference to the ledger, that there are not sufficient funds on A's account to meet the cheque, and that I am not obliged to refer it, and, if necessary, refuse it on the spot, nor even to warn B that it may not be paid." Holder and his Banker. { Holder and his Banker. Payment. Banker: Cheques. Alteration. 700 ADDENDA TO PRESENT VOL. AUTHOR'S REPLY. You would, the holder having given no intimation of the character in which he desired you to receive the cheque, be clearly entitled as agent to legally follow the course indicated. In practice, however, I think that in ordinary cases it would be unadvisable to do so, and that before crediting the holder it would be preferable to see that there are funds to meet the cheque.” * CORRESPONDENT. "Pelican Assurance Company v. Robarts. Vol. I., pp 239 to 244. CC Am I correct in concluding that :- "1. When Robarts suffered the loss of the £5,000, they were unable to look to either Jones, Lloyd, and Co., or "2. The Stockport bankers, who discounted the bill bearing the payees' forgeries?" AUTHOR'S REPLY. Yes. Unless due notice be given, that is, notice on the day the bill is paid, of the mistake in payment, the payer cannot recover." CORRESPONDent. . . . . Having a large number of loose order cheques on hand, we wish to use them up at the Telling Desk. Will you kindly say whether, supposing we have the word "order" obliterated and "bearer" printed immediately above it, you would consider them in order if paid without indorse- ment, or without the alteration being initialled by the drawer." AUTHOR'S REPLY. It would be preferable, and would not occasion much trouble, to have the alteration confirmed by the drawer at the time of signing, but, at the same time, if you have the whole of the cheques altered in the way * In the event of another cheque of the same drawer being afterwards presented on the same day for immediate payment, it would be prudent, if not incumbent, for the banker to act in the capacity of drawee and not agent in connection with the previously received cheque. 2 1 ! ADDENDA TO PRESENT Vol. 701 proposed before they are used, and for Telling Desk Cheques. purposes only, I think there would not be much risk Alteration. incurred in paying them without indorsement or con- firmation. The cheques would, of course, be drawn out in favour of 'self' by the drawer." CORRESPONDENT. I am also somewhat at a loss as to the position of overseers and the moneys they receive. There are three overseers here, but the account is opened in the names of two only. I am informed that any two out of a larger number can act, that they can make a rate independently of the others, and transact all business, and that their action is never questioned. Can you enlighten me, or state the law on the subject?' AUTHOR'S REPLY. With reference to overseers, the poor rate should, in the case of a parish, be levied by them and the churchwardens, who by virtue of their office are also over- seers, and a majority of them, failing all, must subscribe the declarations and notices necessary to be made in connection with the rate. The number of overseers varies, but, I believe, never exceeds four. In the case of a township or chapelry the churchwardens are not overseers, and the rate is levied exclusively by the overseers appointed for either. In some cases within my own knowledge the parish church- wardens do not as a rule interfere, and even the overseers take their duties lightly, throwing the chief burdens of their office upon the assistant overseer. "Overseers appear to have power to arrange amongst themselves as to how the moneys should be banked, and in which of their names. In whatever names the lodgment may be made, all should join in drawing. The practice here is for the moneys to be lodged in the names of the whole of the overseers, four in number, and we only pay on the signatures of all. Overseers may, however, retain the moneys received by them, and if they do so they have to account for the amounts with interest.” Overseers. 1 Husband and Wife. 702 ADDENDA TO PRESENT VOL. CORRESPONDENT. In the new Act relating to the property of married women, there is one point not quite plain to me. Sec. 8 is clear enough, but most of our joint accounts are "husband and wife." I can find nothing in this Act touching such accounts. Was there any provision in the 1870 Act? "In what position shall we be regarding these accounts when opened thus: 'John Smith and Jane Smith, Preston.' I find that in many cases the husband keeps the pass book and looks upon himself as the sole owner of the money, and the wife's name being inserted for convenience only in operating upon the account by his instructions, and generally, but not always, he intends that the wife should deal with the money in case of his death. Of course I do not suppose it would much matter what the bank's practice had been, or what the accountholder intended or under- stood. The point would be-'How was the account opened, and how has it been affected since by the written act of the accountholder or ourselves?' SEC. 17.- Provided also, that any such bank, &c., be treated as a stakeholder only.' I take it that this means 'if we have done nothing that would give both parties a right of action against us for the same money,' e.g., having opened an account as above, and afterwards having added ' either or survivor to draw,' without obtaining a proper mandate." to. AUTHOR'S REPLY. Neither in the present Act, nor in the previous Acts, is the point in question specially adverted But, in the face of such Acts, it is all the more incumbent to be particular, and I think it would be very imprudent to pay without the joint signatures, or the possession of an authority from both parties to pay on the signature of one or either. I observe from sec. 17 of the present Act that in questions between husband and wife, { ام ADDENDA TO PRESENT VOL. 703 Wife. the Bank will be at liberty to apply to the Court if Husband and necessary. The Act of 1870 confines the application to husband or wife only. "'Stakeholder.' The provision appears to be mainly referable to costs, entitling the Bank to them under its application." In conclusion, the following forms and list of abbrevia- tions may be found useful at a pinch :— FORMS OF ADDRESS IN CORRESPONDENCE. The Queen. Madam, To the Queen's Most Excellent Majesty. (Concluding.) I remain, with the greatest (or most profound) veneration, Madam, Your Majesty's most faithful subject and dutiful servant. The King would be addressed in similar terms, using Sire for Madam. - The Prince of Wales. Sir, To His Royal Highness the Prince of Wales. I remain, with profound respect, Sir, Your Royal Highness's most dutiful and devoted servant. Other members of the Royal Family being similarly addressed as Royal Highness, with Sir or Madam, and concluding in appro- priate terms of courtesy and respect. Forms of Address in Correspon- dence. Royalty. Of the Nobility and Gentry. Duke. To His Grace the Duke of My Lord Duke. I have the honour to be, My Lord Duke, Your Grace's most obedient, humble servant. Nobility. 1 } I पे 1 * 704 Duchess. Forms of Address in Correspon- dence. Madam. Nobility. Marquis. ADDENDA TO PRESENT VOL. To Her Grace the Duchess of- I have the honour to be, Madam, Your Grace's most obedient, humble servant. To the Most Honourable the Marquis of——————— (but "of" is omitted if the title is from the name of the family, and not from that of a place, the "of” also not being used in connection with viscounts and barons. Formerly "Most Noble was used for a marquis, but this was held inaccurate, the style properly belonging, otherwise than by letter, to a Duke.) My Lord (or more formally, My Lord Marquis.) Marchioness. I have the honour to be, my Lord, Your Lordship's most obedient, &c. To the Most Honourable the Marchioness of— Madam. I have the honour to be, Madam, Your Ladyship's most obedient, &c. Earls, Viscounts, and Barons are addressed as The Right Honourable, beginning, My Lord, and ending, I have the honour to be, my Lord, your Lordship's most obedient, &c. And their wives are addressed respectively :- To the Right Honourable the Countess of——————, To the Right Honourable Viscountess , and To the Right Honourable Lady———— beginning with Madam, and ending, I have the honour to be, Madam, your Ladyship's most obedient, &c. The eldest sons of dukes, marquises, and earls take the second title of the father, and the younger sons of dukes and marquises are addressed as lords, the Christian name being added. The younger son of an earl is addressed "The Honourable "" only, the eldest son being addressed as "The Right Honourable Lord Viscount All the sons of viscounts and barons are addressed honourables only, as The Honourable A― B—. 1 1 ADDENDA TO PRESENT VOL. " 705 Correspon- The daughters of dukes, marquises, and earls are addressed Forms of The Right Honourable Lady (Christian and surname). The Address in eldest daughter of a viscount or baron is addressed The Honour- dence. able Miss and the other daughters The Honourable Nobility. Miss -, introducing the Christian name. On marrrying husbands of inferior rank, daughters of dukes, marquises, and earls retain their title and precedence, changing only the SURNAME; and daughters of viscounts and barons retain the title of honourable, thus, if married to a baronet or knight, the address in their case would be To the Honourable Lady commoner, To the Honourable Mrs.- Baronets and Knights. , and if to a To Sir AB, Bt. (omitting Kt. in the case of a knight.) Sir (or, more familiarly, Dear Sir A-), ending, I have the honour to be, Sir (or Dear Sir A -), yours, &c. Their wives are addressed, To Lady B Madam. I have the honour to be, Madam, Your ladyship's most obedient, &c. Widows having a title and marrying a person of inferior rank, are, by courtesy, allowed to retain the title and name of the former husband. Esquires and Gentlemen. To those of superior consideration the word "esquire" is written at full length, and if the person be Queen's counsel, Q.C. will immediately follow esquire, preceding any additional letters. Etc., etc., etc. are as a further mark of respect often added to an address. The wives and daughters of esquires and gentlemen, and of lesser members of the body politic, are equally "Madam,” and in the address of younger daughters the Christian name is given with the surname. In "The Laws of Honour," it is stated, page 281, that esquires and gentlemen have ensigns of coats of arms, and are thereby distinguished from the ordinary people, "in which respect T T Gentry. 1 > 1 1 } 1 Forms of Address in Correspon- dence. Gentry. Privy Councillors. Government Departments. 706 ADDENDA TO PRESENT VOL. Bartoll's Tract de Ensignes called them noble, but yet of weak nobility, for it hath no further prerogative." And that "of these two sorts of gentlemen, with us the esquire hath the priority, but it seemeth if an esquire be named gentleman, or a gentleman called an esquire, it is no offence or fault in legal proceedings." And it is added, pp. 284 and 287, that "the King may make an esquire by patent, viz., Creamus te Armigerum, &c., vide the preface to the Titles of Honour,' 5 B. 318." And that "if a gentleman is bound apprentice to a merchant or other trade, he does not thereby lose his degree of gentility." Esquires by birth are the sons of younger sons of dukes and marquises, the younger sons of earls, viscounts, and barons, and their eldest sons, with the eldest sons of baronets and of knights of all the orders, their precedence being regulated by the rank of their respective ancestors. By virtue of their calling, all officers of the army and navy, and of the Royal household, doctors of law, and members of the learned professions are esquires. Privy Councillors. To the Right Honourable Government Departments. Secretaries of State. To Her Majesty's (or To the Right Honourable Majesty's) Principal Secretary of State. Treasury. For the My Lord, or Sir, according to rank. Her Department. To the Right Honourable the Lords Commissioners My Lords. Admiralty. of Her Majesty's Treasury. To the Right Honourable the Lords Commissioners My Lords. of the Admiralty. Other Government Boards, such as the Commissioners of Her Majesty's Customs, &c., being addressed as The Honourable the Commissioners, &c., and beginning Gentlemen. } Judges. ADDENDA TO PRESENT VOL. 707 Forms of Address in The Lord Chancellor. Correspon- To the Right Honourable the Lord High Chancellor, or To dence. the Right Honourable Lord, Judges. Lord High Chancellor. My Lord, I have the honour to be, With great respect, My Lord, Your Lordship's most obedient, &c. Lord Chief Justice of England. To the Right Honourable, the Lord Chief Justice of England, or To the Right Honourable Lord My Lord, &c. Lord Chief Justice of England. Lords of Appeal in Ordinary. To the Right Honourable Lord My Lord. They are life lords only, unless otherwise entitled to sit as members of the House of Lords. The Lords Justices of Appeal. To the Right Honourable, the Lord Justice, or To the -, Lord Justice of Appeal. Right Honourable Sir Sir. I have the honour to be, Sir, Your most obedient, &c. On the Bench these Judges are always styled "My Lord." Master of the Rolls. To the Right Honourable Lord Master of the Rolls, or 2 To His Honour, The Master of the Rolls. My Lord (or Sir.) Vice-Chancellor. I have the honour to be, &c. or To the Honourable To His Honour Vice-Chancellor Sir Sir. Vice-Chancellor. " I have the honour to be, &c. 1 } * 1 Forms of Address in Correspon- dence. Judges. The Clergy. ADDENDA TO PRESENT VOL. 708 Puisne Judges. Sir. To the Honourable Mr. Justice I have the honour to be, Sir, your &c. These judges are knights, but they are addressed as the "Honourable Mr. Justice," the title of Judge being much superior to that of either knight or baronet. On the Bench they are styled "My Lord." Their wives are addressed as "Lady ," and (C Madam." In Scotland all the Judges, both of the outer or ordinary, and of the two Inner, or First and Second Divisions of the Supreme Court or Court of Session, are properly recognized and addressed as "Lords," both on and off the Bench. The Clergy. Archbishop. To His Grace (or, more formally, To the Most Reverend His Grace) The Lord Archbishop of———. My Lord Archbishop. I remain, with great respect, Bishop. My Lord Archbishop, Your Grace's most obedient, &c. To the Right Reverend the Lord Bishop of———— (or, if a privy councillor, or younger son of a duke or marquis,) "To the Right Honourable and Right Reverend," or if a younger son of an earl or baron, "To the Honourable and Right Reverend." My Lord. I have the honour to be, my Lord Bishop, Your Lordship's most obedient, &c. The wives of the above and of all other ecclesiastics are addressed merely as "Mrs.," unless they have a title in their own right, or through the husband independently of his office in the Church. Dean. Reverend Sir. Archdeacon. To the Very Reverend the Dean of———. To the Venerable Archdeacon (Surname only.) Reverend Sir. } 1 } { } Canon. ADDENDA TO PRESENT VOL. To the Reverend Canon -(Surname only.) Reverend Sir. " 709 always Other clergymen are addressed The Reverend introducing the Christian name, or if that be not known, a instead of "Mr.," adding to the surname the initials of any honorary degree they may have. The letter may commence Sir, or, more formally, Reverend Sir, concluding more formally, I have the honour to be, Reverend Sir, your most obedient, &c. When possessing lay titles, the address will be The Right Honourable and Reverend the Earl of— The Right Honourable and Reverend Lord- The Honourable and Reverend Forms of Address in Correspon- dence. The Clergy The Reverend Sir Bart. The Navy, Army, and Auxiliary Forces. Admiral. Following name and title, the rank of the flag is given as "Admiral of the Blue." Commodore. Captain. To Commodore To Captain (introducing Christian name) or when on service, To > Esq., Captain of H.M.S. , R.N., Navy. If of title, To Captain the Right Honourable, &c., R.N., or B— To Captain Sir A—— B▬▬▬▬▬, Bart., R.N. All officers in the army above the rank of lieutenants or Army. subalterns have their military rank prefixed to their titles, and when not of title, to their names; the subalterns being addressed as esquire, with the name of the regiment to which they are attached, if on service. Instead of "Dear Sir," it is usual to address officers according to their rank, as "Dear Major," "Dear Colonel," &c. Volunteer officers have no right whatever to be addressed as Volunteers. military men, excepting on matters relating to the corps. 1 * I ! * ! 2 1 t Forms of Address in Correspon- dence. Civic Functionaries. Foreign Ambassadors. 710 ADDENDA TO PRESENT VOL. Civic Functionaries. Lord Mayors. These are of London, York, and Dublin; Edinburgh and Glasgow having Lord Provosts. They are addressed as "Right Honourable," and "My Lord." Mayors, Sheriffs, Aldermen, and Recorder of London. These are addressed as "Right Worshipful," and "Sir." The wives of Lord Mayors are addressed, To the Right Honourable the Lady Mayoress. Madam. I have the honour to be, Madam, Your Ladyship's most obedient, &c.; and the wives of Mayors, To the Right Worshipful the Mayoress of -———— Madam. Foreign Ambassadors. The term, "To His Excellency," is prefixed to their other titles, and their accredited rank added as : To His Excellency the Prince —, Ambassador Extraordinary and Minister Plenipotentiary From H.M. the Emperor of "Sir" being used whatever may be their title. An Ambassador Extraordinary is one appointed on a special occasion. End. I have the honour to be, with great respect, Sir, your Excellency's most obedient, &c. The wives are addressed: Madam. To Her Excellency the Countess de I have the honour to be, Madam, your Excellency's most obedient, &c. [ I 1 A ADDENDA TO PRESENT Vol. 711 ABBREVIATIONS. A.A., Associate in Arts. A.B. or B.A., Bachelor of Arts. A.C. or B.C., Before Christ. A.M., Anno Mundi. In the year of the world. A.M. or M.A., Master of Arts. A.R.A., Associate of the Royal Academy. A.R.S.A., Associate of the Royal Society of Arts, or of the Royal Scottish Academy. A.U.C., Anno urbis conditæ. In the year of the building of the city,—Rome. B.A. or A.B., Bachelor of Arts. B.C. or A.C., Before Christ. B.C.L., Bachelor of Civil Law. B.D., Bachelor of Divinity. B.L. or L.B., Bachelor of Laws. B.M. or M.B., Bachelor of Medicine. C.B., Companion of the Bath. C.E., Civil Engineer. C.I., Crown of India. C.I.E., Companion Indian Empire. C.M.G., Companion of the Order of St. Michael and St. George. C.P.S., Custos Privati Sigilli. Keeper of the Privy Seal. C.S. or W.S., Clerk or Writer to the Signet. C.S.I., Companion of the Star of India. D.C.L., Doctor of Civil Law. D.D., Doctor of Divinity. D.V., Deo Volente. God Willing. E.G. or Ex. Gr., Exempli Gratiâ. For example. F.A.S., Fellow of the Antiquarian Society. F.C.P., Fellow of the College of Preceptors. F.G.S., Fellow of the Geological Society or Geographical Society. F.G.H.S., Fellow of the Genealogical and Historical Society of Great Britain. F.L.S., Fellow of the Linnean Society. F.M., Field Marshal. , Abbreviations. } B N 1 } ८ 1 1 Abbreviations. f { 712 1 ADDENDA TO PRESENT VOL. F.R.A.S., Fellow of the Royal Astronomical Society. F.R.C.P., Fellow of the Royal College of Physicians. F.R.C.S., Fellow of the Royal College of Surgeons. F.R.S., Fellow of the Royal Society. F.R.S.E., Fellow of the Royal Society of Edinburgh. F.S.A., Fellow of the Society of Arts or Antiquaries. F.S.S., Fellow of the Statistical Society. G.C.B., Grand Cross of the Bath. G.C.H., Grand Cross of Hanover. G.C.M.G., Grand Cross of St. Michael and St. George. G.C.S.I., Grand Commander of the Star of India. H.E., His Excellency. H.I.H., His Imperial Highness. H.M.S., His or Her Majesty's Service, or Ship. H.R.H., His or Her Royal Highness. Ib. or Ibid., Ibidem, in the same place. Id., Idem, the same. I.e., id est, That is, that is to say. I.H.S., Jesus hominum Salvator, Jesus the Saviour of men. I.H. S., In hoc cruce Salus, In the Cross is Salvation. . J.P., Justice of the Peace. K.B., Knight of the Bath. K.C.B., Knight Commander of the Bath. K.C.H., Knight Commander of Hanover. I K.C.H.G., Knight Commander of the Guelphic Order. K.C.J.J., Knight Commander of St. John of Jerusalem. K.C.M.G., Knight Commander of St. Michael and St. George. K.C.S.I., Knight Commander of the Star of India. K.G., Knight of the Garter. K.G.C.M.G., Knight of the Grand Cross of St. Michael and St. George. K.H., Knight of Hanover. K.J.J., Knight of St. John of Jerusalem. K.M., Knight of Malta. K.P., Knight of St. Patrick. K.T., Knight of the Thistle. L.A. H., Licentiate of Apothecaries' Hall. LL.B., or B.L., Bachelor of Laws. { { } ADDENDA TO PRESENT VOL. 713 L.C.J., Lord Chief Justice. Abbreviations. LL.D., Doctor of Laws. 1 L.R.C.S., Licentiate of the Royal College of Surgeons. L.S., Locus Sigilli, The place of the Seal,-indicating where the seal is to be placed. L.S.A., Licentiate of the Society of Apothecaries. M.A., or A.M., Master of Arts. M.B., or B.M., Bachelor of Medicine. M.D., Doctor of Medicine. M.R.A.S., Member of the Royal Asiatic Society. M.R.C.S., Member of the Royal College of Surgeons. M.R.G.S., Member of the Royal Geographical Society. M.R.I.A., Member of the Royal Irish Academy. M.W.S., Member of the Wernerian Society. N.B., Nota bene. Mark well. Nem. con., Nemine contradicente. Nem. diss., Nemine dissentiente. dissenting. N.P., Notary Public. N.S., New Style,—since 1752. O.S., Old Style,—before 1752. P.C., Privy Councillor. } Oxon., Oxoniensis. Of Oxford. 1 Ph. D., Doctor of Philosophy. No one contradicting. 1 No one disagreeing, or Pro tem., Pro tempore. For the time. Q.C., Queen's Counsel. Q.D., quasi dicit, as if he should say; or, quasi dictum, as if it were said. Q.E.D., Quod erat demonstrandum. Which was to be proved. Q.E.F., Quod erat faciendum. Which was to be done. Q.S., Quantum sufficit. As much as is sufficient. Q.V., Quod vide. Which see. Qy., Query. R.A., Royal Academician; Royal Artillery. R.E., Royal Engineers. Reg. Prof., Regius Professor. R.H.A., Royal Horse Artillery. R.I.P., Requiescat in pace. May he rest in peace. ' } 1 1 + 1 1 2 714 Abbreviations. ADDENDA TO PRESENT Vol. R.M., Royal Marines, R.N., Royal Navy. Sc., Scilicet, same as viz. S.P.Q.R., Senatus populusque Romanus. The Senate and Roman people. Sq., plural sqq., Sequens. The following. S.S.C., Solicitor before the Supreme Court. S.T.P., Sanctæ Theologiæ Professor. Professor of Theology. V.C., Victoria Cross. Viz., videlicit. Namely. That is to say. W.S., or C.S., Writer or Clerk to the Signet. Xt., Christ. Xtmas., Christmas. Postage and Inland Revenue Stamp. Production of Gold and Silver in Mexico. Separate Property. FURTHER ADDENDA. PAGE 396.—A postage and inland revenue stamp of the value of 2/6, available for postage, telegraph, and inland revenue purposes, is now being issued. PAGE 532.—The total production of the precious metals in Mexico during the year 1881-2 amounted to £4,836,855. In many of the early years of the century the annual amount of silver produced and coined averaged about £4,000,000 and £2,000,000¸ while that of gold varied very much, ranging from a few thousand pounds to about £300,000. According to Humboldt, the value of the gold and silver coined from 1690 to 1806 amounted to upwards of £321,000,000, Later in the century the annual production of silver appears to have ranged to about £7,000,000 and that of gold to about £500,000. PAGES 650 AND 698.-And further, on the point of separate use, see the case of In re Stonor's Trusts, before Pearson, J., 30th June, 1883, 27 S.J., 600. * ADDENDA TO PRESENT VOL. 715 Publishers. In answer to the regret of correspondents, Scottish and Irish Authors and Bankers, that the first volume was not published at a lower price in order to secure for it a wider dissemination amongst the junior members of the profession, the following statement will show how impossible it was to make the price less, and some idea will be formed from it of the true position of an author with the publishing trade as at present conducted :— VOLUME I.-PRICE 15/-. Publisher's Commission "" 12 33 Apportion- ment of 15/-. Amount. Per Centages. S. d. ΙΟ 1 6 Profits of one copy appropriated by them at 10/9 for every dozen copies sold ... Use of money for a year to 18 months, moderately 5 per cent, but say rate which author can get Discounts (some of which, how- ever, when full price is paid by the purchaser, is, excepting cost of carriage, pure profit to the publishers) Agents' discounts Proportion in publishing Charges for advertising ... ور Printer's charges Bookbinder's,, : 7 4 25 10 5 | || 51 6 57 || || 1 0% Per Cent. 34 ... 5 39 || || 96 = 3 9 0 9 7 72 Ο ΙΙ 8 62 5 10 14 4% "1 1 } Authors and Publishers. 716 ADDENDA TO PRESENT VOL. Apportion- ment of 15/-. Amount. Per Centages. S. d. Brought forward………………. Balance to Author 96 14 42 4 From which is to be deducted various incidental charges in con- nection with special advertising, issuing circulars, furnishing free copies of book, postages, and cost of carriage ... 3 。 5½ 14 IO < Leaving for the Author I per cent or for each volume sold, excluding loss of interest at 4 per amount paid for printing and bookbinding. 2d. cent on In consequence of the additional cost in printing the present volume, both from its tabulated contents and its increased size, its pages numbering 752, against 526 of the first volume, the price has been fixed at £1 Is., an amount which the author can only hope may free him from loss. * It may be added that as only a few copies of the first volume remain, the purchasers of the present volume who may not have the former should make early application for it, as it will be soon out of print. * In justice to the publishers, the present volume is being published on somewhat more favourable terms to the author than the former one. For the sake of authors, as well as the respectable class of publishers and booksellers, a thorough and searching reform is required in connection with "trade discounts, perquisites, and credits," these apparently now prevailing for the express purpose of fleecing authors and damaging the higher class of publishers and booksellers. 1 1 } و : THE PRACTICE OF BANKING, BY JOHN HUTCHISON. VOLUME I., DEMY 8vo, 526 pp., CLOTH. PRICE, 15s. 1 ; } 4 PART I. PART II. GENERAL CONTENTS. ACCOUNTS.-Corporations and other Public Bodies-- Companies and Associations-Executors, etc.--Infants- Mandatories, etc.-Married Women-Private or Ordinary Partnerships-Trustees, etc. BANKRUPTCY.-Steps necessary in-Proof-Bills Lodged- Securities, etc.-Private Arrangements Sureties-Fraudulent Preference-Married Women-Act_1869—Proceedings in Bankruptcy and Liquidation-Debts Provable, etc.-Set-off- Dividends-Delay in Proving-Joint and Separate Estate- Distinct Contracts-Discharge, etc.-Arrangement by Com- position, etc.-Practical Result of the Act. PART III. BILLS OF EXCHANGE.-Inland and Foreign-Promissory Notes-Bank Notes-Circular Notes-I OU's-Documentary Bills-Marginal Credit Bills-Special Credit Bills-Letters of Credit-Exchequer and Treasury Bills, etc. PART IV. PART V. PART VI. CHEQUES.-Former Law and Practice-Present Law and Practice Distinguishing Features of Cheque - Marked Cheques-Holder and his Banker-Prolonged Circulation- Premature Payment-Forgery, etc.-Husband and Wife- Companies, etc.-Branch Banks-Trust Moneys, etc. Crossed Cheques. Miscellaneous points of practice. DEPOSIT RECEIPTS.-Applicant and Owner-Joint Owners, etc.-Renewals, etc.-Stipulations as to Interest, etc.- Precautions in Payment-Donatio Mortis Causa. OPINIONS.-Practice-False Representation-Interchange of Opinions, etc.-Precautions. PART VII. USANCE AND OLD AND NEW STYLES OF COM- PUTING TIME. -Change in Practice-Various Tables- Days of Grace in different Countries-Old Roman Calendar- Julian Calendar-Gregorian Calendar, or New Style. PART VIII. NUMERALS.-Cardinal and Ordinal, with relative terms in connection with the Currency of Bills, translated into the French, Italian, Spanish, Portuguese, Hungarian, German, Dutch, Danish, Swedish, Norwegian, Russian, and Turkish languages. With Preface, Statutes Cited, Cases Cited, Addenda, and Index. 1 น > t OPINIONS OF THE PRESS. THE LAW TIMES. "Mr. Hutchison has evidently written upon a subject with which he is familiar, and we can readily understand that his knowledge and experience were acquired, as he tells us in his preface, in his capacity of acting Branch Manager of a bank. The work, of which this is the first instalment, will consist of three volumes, which will be distinct and independent treatises. We think the author is justified in saying that he has endeavoured to overlook no point of importance in connection with the practical part of banking. The practical character of this work may be gathered from an extract which we make from page 185. On the whole, we have no hesitation in saying that this is one of the best works which has appeared upon the practice of banking. THE ATHENEUM. "This is a very solid book on the legal aspect of banking practice, a subject little known comparatively outside the banking profession, and the knowledge of which inside it is generally attained more by experience-to use plainer language, by 'rule of thumb'-than through any course of scientific study. Mr. Hutchison has in his treatise, for so it may be well described, embodied the result of a long, extensive, and varied experience,' the study of the record of which will, he trusts, lead to uniformity in banking practice. As an instance of the need of a general understanding among bankers, we may refer to the subject mentioned by Mr. Hutchison (p. 416) on the correct mode of dealing with cheques which have to be returned for insufficiency of funds. This point is one of frequent occurrence, and is, perhaps, one of those in which it is most desirable that uniformity of practice should prevail, from the very serious consequences frequently entailed. We have not seen so carefully- designed or so solidly-written a book on the subject before; and we hope Mr. Hutchison may find the opportunity to write the two other volumes he proposes-on the proper inspection of banks and on securities deposited for advances, and on banking precedents. THE BANKERS' MAGAZINE. "The law defining the manner in which accounts should be opened; the persons entitled to draw on them in the cases of corporations and other public bodies, registered and unregistered companies, etc.; the law as to bills of exchange, inland as well as foreign, with the many complicated points arising therefrom; the law as to cheques, etc., and the opinions which banks are called on to give concerning their customers; in fact, a very large number of the difficult and intricate questions which bankers have frequently and quickly to decide, are treated on with great copiousness and intelligence in this volume. The The volume now before us is written with great care. contents are rendered available by a very good index, which will be found exceedingly convenient for reference to the various subjects mentioned." OPINIONS OF THE PRESS. iii. • THE ECONOMIST. "Mr. Hutchison has brought together in this volume the cases at law and in equity bearing upon all branches of the subject. A knowledge of these things is of great importance to a banker, and though he will probably save himself expense and trouble in the long run if he does not undertake any business of a legal nature, which is not strictly a matter of routine, without consultation with his solicitor, yet there are many matters with respect to which he will find a knowledge of the general principles of law very convenient to him. Mr. Hutchison places the qualifications for carrying on the business of banking very high. The law as to the conditions of acceptance of bills of exchange, bankruptcy, cheques, and many other points will be found detailed at great length in this volume, with many forms which it may be con- venient for a banker to have by him. The language used throughout is clear, and the book is well arranged for convenience of reference. The remarks as to the proper mode of dealing with cheques in case of insufficiency of funds (p. 416) are clear and instructive. A banker may learn a great deal from this volume, and if, as Mr. Hutchison hopes may be the result, the study of its contents leads to greater uniformity in practice, considerable advantages will follow." JOURNAL OF THE INSTITUTE OF BANKERS. Each section is accompanied by a great variety of forms, most of which, the author states in his preface, have been prepared by himself, and are given in the hope that they will be found useful and convenient, besides saving trouble and uncertainty in the hurry and pressure of business. A "Ihese forms, and the various legal opinions which are very freely scattered throughout the work will, no doubt, be keenly criticised by bankers. notice of this work would not be complete without some reference to the carefully prepared index which concludes the volume.' "} PUBLIC OPINION. "We have been delighted with the legal acumen that has enabled the author of this work to go over the ground—perhaps exhausted by the late Mr. Justice Byles in his treatise on Bills of Exchange,' though, of course, he only considered one, and that the smallest part-of the general practice of banking. The banker of the present day has to consider many different points, some of which may, perchance, require a far greater amount of education than is possessed by a large proportion of persons who commence a career that requires, in some cases, the highest mathematical knowledge to succeed as a leading banker. No sort of intelligence, however, can compensate for the lack of primary instruction in the law of banking. So many contradictory decisions have been given, and the minds of the Lords of the Court of Appeal have been so often exercised, that a comprehensive manual of the state of the law, as it really is, was much needed. No sort of elementary work previous to this time was so fitted to be placed in the hands of a neophyte as this volume. Intelligent aspirants to the dignity of a British banker have often been baffled by the superficial character of the works placed in their hands; but we are, on the whole, very well satisfied with a volume that appears to give so many copious citations, and to exhaust the subject entirely. THE CITY PRESS. "Mr. Hutchison proposes to devote three volumes to the important subject of the practice of banking, and when complete, the work cannot fail to be regarded as one of great value. The present volume is occupied with cases at law and equity, bearing upon all branches of the subject, and will be found very useful for purposes of reference." À J 1 iv. OPINIONS OF THE PRESS. THE BOOKSELLER. • "The author has collected into one view his experience of many years, and offers to bankers a full compendium of practice, of which the present large volume is a first instalment. The most approved forms of banking practice are clearly laid down and explained, and, for the elucidation of points of law, full lists of statutes and of reported cases are supplied, with an excellent index." THE SCOTTISH BANKING AND INSURANCE MAGAZINE. "In many respects this work should prove a valuable one to the practical banker. While written from an English point of view, it is yet in most respects applicable to Scottish banking also. It supplies a vast amount of inform- ation for the guidance of bankers in conducting the ordinary operations of their offices. Mr. Hutchison's technical knowledge of banking comes out strongly, and in no portion of his work, perhaps, more so than in the section 'on accounts. Incidentally, it may be observed that in that part he clearly defines the respective positions of corporations and private partnerships, and brushes away the cobwebs which have, in recent years, led to unnecessary doubts regarding the liability of proprietors of stocks of corporations. The observa- tions on the intricate subject of crossed cheques—a matter in which legislation has unfortunately distorted what was originally comparatively simple-are interesting; but it may be feared that an absolute exposition of the subject is unattainable. The remarks regarding points to be observed in connection with the interchange of opinions regarding clients should be useful, more especially to bank agents. Indeed the whole work, embracing as it does many business- like forms of documents for use, will be very serviceable to them, and is well worthy of their study and preservation for reference. A copious index is supplied, and the subjects treated of are designated in marginal notes. not only enhance the value of the work for reference, but, together with lists of statutes and cases, should make it of great assistance to students. Taken as a whole, Mr. Hutchison's work promises, in its complete form, to be a valuable and serviceable addition to banking literature." FORM OF ORDER. These To MR. EFFINGHAM WILSON, II, ROYAL EXCHANGE, LONDON, E. C.; Or, To MR. PERCIVAL PEARSE, WARRINGTON. Please forward сор ...188 of HUTCHISON'S PRACTICE OF BANKING, price 15s. each, post-free, for which I enclose P.0.0. for £ : Name Address D If to the former, P.0.0. should be made payable at Cornhill, E. C.; or order through any Bookseller. 4 INDEX. Abbreviation of names of United States Abbreviations, various other... Acceptance, Forwarding for ... ވ وو "" Time for • ... ... PAGE. 121 PAGE. Accounts, Minors 65 711-714 Conditions in con- nection with ... Errors in ... ... 241 Rating of... 671 "" in Funds, Consolida- Mistakes in connec- 121 128 ... 170, 171 ... 377 ... ... 377 479 Presentment for, 672, 673, 679, 680 Qualified 674-676 for honour suprà protest ... ...683 of incomplete bill 685 Acceptor, indorser's right, to securities of 611 holder at maturity... 681 Accident Insurance Companies 84 Accommodation Bill deposited as security, proof on Account, the ... ... 575 .. 401, 419 Incidental Expenses "" Postage ་ 15, 47 15, 47, 48, 116 Stamp 11-14, 47, 115, tion of tion with transferred from another bank... in name of husband and wife... .702, 703 Accountant, Branch Bank General ... ... 156 2, 160 Acknowledging remittances... 241, 242 subscriptions.. 245 by Post Card.. 246 Acknowledgment of Deeds by Married Women ...640, 641, 652-654 655-685 "" 116 Act, Bills of Exchange "" Stamp, deficiency in 46 Forms... Accounts, computation of...23, Opened and Closed ... .251, 252 "" 89, 90, 116 Book ... Joint Executors Church ... ... 90 ... . 119, 132 120 25 120, 132 Conveyancing, of 1881.. 154, 155, 651 of 1882.651-654 affecting Bank Shares..412-414 Bankers' Books Evidence.. 453-456, 693 of 1882, relating to Married Women ... Scottish ... 638-651 >> Married Women.120, 647 Settled Land "" } 3 ... ... UU ... 651 .654, 655 រ 1 722 } INDEX. PAGE. PAGE. 498 574 Act, Proposed, against medals resembling current coin. 693 Action, transfer of, from Lord Mayor's Court ... Acts of Bankruptcy in respect of bills Acts of Parliament, commence- Allotment, Dealings before.440, 441, 442 435 118 ... Alteration in Cheques when vitiating ... 605–607 Allottees ... "" not vitiating 607 ment of.460, 651 modern.459, 460 important new...v., vi. "" of number of Note... 608 in fraud of Drawer... 625 "" 1'53 ,, 703-710 "" Additional Fire Insurance Address in Correspondence (and see Forms) Administration... ...130, 625, 626 "" "" " Exhibition of letters of "" ... 124 629 payment on and Probate 626-631 estates of small value ... 630, 631 Married women 650 Administrators, &c., transferring 406 Advances, Bank of England... "" of Cheque on change ... in banking firm 636 of Cheque in date 636 667-669 of bill of Cheque for telling desk purposes.700, 701 ... Analysis of Charges Return 268 Annual Return for Commis- "" sioners..314-316 Registrar.317-319 Annuities, Government Life ... 378 "" Post-Office Application for Limit Applying for Signatures Appropriated Stamps ... ... 689 32, 33 245 ... 393 Appropriation of Payments.463-469 General Rule 348, 366, 690 Surety ... 31 21 Irregular... Securities for ... to Bill Brokers..348, 690 Advice Books "" ... Cheques ... 463 ... .464, 465 Change in Banking Firm.. 465 Trust Moneys ... ... 465 Specific Appropriation.466-469 Approximate time in course of ... 102, 223 123, 216 Post of Acceptance Form 217 ... of Drafts, payment without ... ... 223 List to London Agents. 249 Advising payments received... " Drafts issued 243, 244 ... 244, 245 164 Agency and Branch Office London ... 164-167 Allotment, Letters of, duty on.. "" 386, 387, 388 Dealing in 435 ... 64, 65 155-159 Arrangement of Branch duties.. at Head Bank 160-167 Articles and Rules ... Assignees, Official ... Assignment, Equitable ... 135, 139 ... ... 447 476, 477 Assimilation of Stamps..48, 60, >" 395, 396, 714 of Irish coins.. 513 of Scottish coins 519 Assurance and Insurance by Husband ... 85 647, 648 } 5 INDEX. 723 Bank of England 1314 PAGE. 323-349 "" position during ... 474 crises... 327-330 Attachment of Funds Rules of Court. PAGE. 471-501 471-474 Weekly Re- turn · 342-347 Returns, com- parative table Attachable Funds Funds free from attachment 475 Salaries and Allowances to Officers of Customs "" Weekly re- turns ... 325, 475 326, 330, 331 Crown Moneys... 475, 476 ,, Explanation of Equitable Assignment... 476, 477 Client's balance... 477-479 Foreign Sovereign ... 480-483 Court Foreign Attachment...484, Custom in Lord Mayor's Practice of High Court of In hands of a Corporation Transfer of action 498, 499 486, 499 ... 484-489 "" Justice ... ... aggregate Secured creditor ·· .. 490 490-498 Custom in Tolzey Court of Bristol Mortgagor... of ... . 340, 341 Some points of its practice 347-349 Advances.. 348 366, 690 Rates 359-366 Purchase of stock regist- ered in Transactions 370 in gold by... 528 ... 499 "" ... 499, 500 "" Notes, Pay- 500 500, 501 Adjudication in Bankruptcy Attesting signatures by mark... 122 Attorney, Powers of Auditor ment on loss of halves 608 ... 691 Concession to Clients Notes, Registration of 373-376 Bank Note Register... 209 616 • Australian Colonies-Non-pay- ment ... Authors and Publishers 715, 716 Aval ... Backwardation... Bad Debts... ... ... ... .609, 610 419 ... ... 24 Bad and Doubtful Debt Returns 271 Balance Cash 4-6, 28-30, 36-42 Minimum monthly ... 102 59 Notes, return of 230, 231 ... Notes, stamp duty on 232 Officers. I, 2, 24, 37, JIO, Juniors 160, 203-209, 603 Officers' Fund Rates in 1881... Notes under £5 Salaries Rate Book "" • ... 171 Statements... 95 Withdrawal of 125 Statement, general 312, 313 Attachment of Client's 477 Balances, proving • 95 "" Half-yearly Return of 269 ..205, 207 206 331-335 ... 102 232 205, 206 of France and its arrange- ment as to Cheques, &c. ... Licenses... Investments ... .. 219, 220 228-232 · 313 1 1 724 PAGE. INDEX. 1 PAGE. Bankruptcy- Proof, Joint Security, Sepa- Bank, Half-yearly Returns of Unstamped Notes and Bills, with Letter of Advice... ... 228-230 "" Shares, Act affecting 412-414 "" ... 355-357 of Ireland of Scotland ... ... Legislation 352-355 461-463 Mismanagement, results of 461 Book Evidence • 453-463 Bankers' Books Evidence "" Act ... 453-456, 693 Bankers' Books Evidence Act, Imperfections 456, 457 Bankers' Books Evidence Act, strictures on de- cision under Modern Statutes ... ... Banker and Holder... Payment by...611-613, 700 457-459 ..459, 460 Legislation ... Holidays... 461-463 94 "" Protection to ing Collect- 619-623 699, 700 Bankers and Light, &c., Coin 519 Bankers' Books Evidence Act Lien... >> 453, 693 616-619 Banking Partnerships, forma- tion of ... Banking Partnerships, change ... 227 in ... ... 465, 636 Bankruptcy- Proof, Securities.... amending... 573, 574 for amount of judg- ... ... 573 rate Debt ...583, 584 Interest ... 584 Custom of Bill Brokers 576-578 Acts of, in respect of Bills... 574 Debt of felon Surety ... ... Partial Omission of Debt in Statement... 574, 575 ... .578, 579 ... 579 579, 580, 697 Fraudulent Preference Debt incurred by Fraud 580, 697 Payment by Debtor Liquidating ... ... 580 580 ... .. 580, 581 Filing of Cash Account Notice of Avoidance of Voluntary Set- ... ... ... tlements 582, 583 Holder of Bills, right to Se- curities deposited with ac- ceptor, and to funds de- posited with a third person Hired Furniture, 584, 585 Hotel Keeper ... ... .. 586, 587 Reputed ownership Sale of Bankrupt's Property Carrying on business of Bank- rupt Winding-up, right of Minority of Shareholders ... 697 588-590 ... 590 590 Discharge Undischarged Bankrupt ... 590 591 ment 574 of Bills ... ... ... 574 on accommodation Bill deposited as security 575 by Guarantor 576-578 Separate and Joint Account, Suspense Account ... ... 583 Arrangement by composition, Secured Creditor . 591, 592 Sole and Partnership Business 592 Registration... Presence of Debtor at First Meeting No Assets ... ... 592, 593 ... ..593, 594 4 ... 595 Presence of Shorthand Writer at Creditors' Meetings 595 ... 1 # INDEX. 725 Bankruptcy- Returns of 1881 ... PAGE 595-599 Touting for Proxies, &c. 595-598 Losses by ... Bills Returned Notice to Head PAGE. 236 332-334, 368, 690 · 598 "" Office Treasury ... "" Exchequer Documentary Costs in Closed Bankruptcies Unemployed Funds in….. Married Women ... ... 598, 599 ... ... Bargains in New Loans and Bear ... 333 333-335 Currency of, from the East 335 purporting to be drawn ... Retiring Incomplete 599 "" 646 "" abroad Shares ... ... 414, 438 435 "" ... 419 "" Forgery ,, on ... on Stock Exchange ... ... Belgium, &c., Passports in con- nection with Bengal Currency .. 562, 566 ... ... Bill Brokers, Custom of ... 538 576-578 Advances to 348, 690 "" Bill Diaries, Branch "" "" Office Register ... 61, 64, IOI, 112, 113 Record of Acceptors Billon Coin ... Bills Current, &c. Dishonoured "" Miscellaneous ... 162-164 100, IOI ... 689 555 16, 17, 61-66 ... 18, 66, 114, 130, 164 Book ... ... ΙΟΙ Notice Book 114 "" ... 17, 62-66 33 Received and Remitted for Acceptance Books, &c. IOI, 102, 689 for Collection, &c. ... 128, 129 "" ... • ... ... ... 600 бол 685 .607, 608 Inoperative Indorsement ... Dishonoured, Colonies Australian Accepted in blank • Record of Acceptors .. 608-610 616 ... 685 689 of Clients for whom Bills collected... 689 Bills of Exchange Act, 1882 ... General Observations...655, 656 The Act Part I. Part II. 655-685, 698 ... 656-681 656 Preliminary Form and inter- pretation of bills 657 Capacity and au- thority of parties 661 Consideration ... 661 Negotiation General duties of Holder ... Liabilities of par- 662 664 Remitting Negotiated ,,` Rating " of Companies 129 ... 164, 687 ties ... 670 ... 171, 172 Discharge... 671 ... Signatures to, on behalf Returns in connection with Acceptance and ... 227 honour Unstamped ... 228-230 payment for Lost Instruments 674 672 Discounted Note of " ... 235 Bill in set... ... 674 to Head Office "" 235 Conflict of Laws 674 Country ... ... 235 Part III. Cheques 675 "" for Collection Notice 235, 236 Crossed Cheques 676 f 726 Bills of Exchange Act- INDEX. PAGE. Part IV. Promissory Notes 677 Part V. Supplementary... 678 First Schedule-Form of Protest ... ... 680 Second Schedule-Enact- ments Repealed Signatures... ... ... ... Common Seal Omission of Date Sunday ... Time... Payee ... ... ... ... 680, 681 ... ... 657 658 659-661 661 ... ..662, 663 ... ... Bills of Exchange Act- Saving of summary dili- gence in Scotland Presentment of Cheque for payment PAGE. 683 ... ... 684 Prolonged circulation 684, 685 Dividend Warrants... Reservations of the Act ... 685 685 ... Funds in hands of Drawee 698 Bi-metallism Blank Transfers Bombay Currency Bonds 664 drawn " damaged What Bills negotiable 665, 666 Alterations ... ... Different parties to Bill, dealings in ... 335-339 .408-411, 436 549 ... 19, 151 412, 437 ... ... 438 438 ... ... 313 Drafts Issued Book... 44, 115 ... Plate Register ... Life and Fire Premium Diary 667-669 Bonuses same person ... 670 Books- Fictitious person Funds in hands of Drawee Time for Acceptance Presentment forAcceptance Qualified Acceptance ... ... 670 670, 698 671 672, 673, 679, 680 674-676 Conditional Indorsement 677 Case of need ... ... ... 678 Referee ... ... 678 When presentment for Ac- ceptance excused 679, 680 Acceptor, Holder at matu- rity... Waiver ... ... Protest ... ... When Noting equivalent to Protest ... ... Outstanding Premium Re- ... ceipts Book Coupon Diary... ... 67 68, 115 69 89 ... 90 Accounts Opened and Closed Book... Money Lent and Lodged Book Pass Books ... 90 91, 113 Current and Deposit Ac- count Ledgers and Ba- lance Book 97, 98, 111, 112 Extract and Daily Debit Balance Books Discount Ledger, and View of Discount Obligations 98 681 ... 682 ... 682 682 Notice by return of Dis- Book honoured Bill ... ... 682 Register of Limits ... Acceptance for honour suprà protest... Maturity, under acceptance for honour on bill after Telegraph Numbers Book 99 ... ... 683 General Ledger sight 683 98, 99 99 ... 99, 112 Tellers' Books... 99, 100, IIO, III Incidental Expenses Book 100 1 INDEX. 727 Books- Numbered Cheques. Clients Book State Book Bill Register .... Cheque Register Bill Diary... to ... ... PAGE. Books- 99, 100 100, 101 100, IOI ... 101, 112 Bill Diary Balance Book, and Bills Negotiated Book and Diary ΙΟΙ Bills Dishonoured Book... IOI ΙΟΙ Bills Dishonoured Notice Book ... 114 Bills Received and Bills Remitted for Acceptance, and for Collection Books Weekly Return Book Register of Letters Re- ... ceived Letter Books PAGE. 106 ... 106, 107 107 ... Head Office Special Books 107 General Cash Balance ... Book Minor Branches Traders' Books Cash Balance Book... at Sub-Branch ... London Diary 108 ... 109 ... 99, 109 IIO, III Current Account Book 155 ... ... 165 166 ... 166 213 Outstanding Items Book Credit Forms Book... 101, 102 " Advice Books ... 102, 223 Bank Rate Book ... 102 Bank Note Register 102 Deposit Receipt Applica- Cheque Forms Books 217-219 Register of Members of tion and Deposit Receipt Forms Books Deposit Receipt Register 102 and Relative Index 102, 103 Counterfoils of Draft and Deposit Receipt Forms Books Company 1 ... ... 317 Stock Record ... .400, 401 ... ... 415 Cost Book... Debt Attachment Book 473 Record of Acceptors "" ... 103 Book Post... Charges General Book 103 Minute and Procedure Book 103, 104, 114 Private Information Book 104 Opinion Books ... 689 Clients for whom Bills collected 689 ... ... 55 Branch and Agency Office 164 ... 104, 114 29 Drafts Issued Book ... Drafts, Weekly Return of ... 44 ... 46, 266 IOI, 112, 113 ... ... 104, 105 ** Premium Diary 68 Registers of Securities for Advances and for Safe Custody Bill Diaries... 61, 64, Obligants on Book ... ... Probate Register Guarantee ... ... Signature Books 105, 106, 105 105 113, 690 Bank Correspondents' Cir- cular Book ... Duties, arrangement of 155-159 Officers 24, 37, 110, ... 203-209 Manager 156, 159, 203 ... " Accountant. 106 Teller ... 156, 157 ... 157 ་ 7 1 728 INDEX. Branch Subalterns "" ور "" Returns PAGE. ... 157-159 ... 167-170 Return Forms ... Entries in Transitu 255-312 PAGE. Cancelled or Spoiled Drafts 45, 46 Carrying over ... ... Case of Need ... ... 258 Cash and Account Weekly General Re- turn... 259-263 Monthly Current Ac- count Balance Return 266 Monthly Current Ac- count Decimal Return 267 Monthly Discount Ob- ligation Return Monthly Charges Re- turn ... ... 267 ... ... ... 268 Quarterly Deposit Ac- count Balance Return 268 Quarterly Deposit Ac- count Decimal Return 269 Half-yearly Return Balance ... ..401, 420 ... ... Cash Balance... 4–6, 28-30, 36– 678 401 42, IIO Cash Balance Book... 99, 108, Cash Credits Cash, Differences in Investment of, IIO, III 352-354 39-41 under ... control of Court... 371, 691 Cash Orders 37, 110, 129 Cattle Insurance Companies ... 84 Certificates, with transfer Certified Cheques ... ... ... 436 624 Change of Signatories 122, 123 ... in Banking Firm.. 465, 636 Charges, General Book ... 103 ... 269 "" Return of closing entries 270 Schedule of Money lodged and lent. 272, 273 Returns of Manchester and Liverpool Dis- trict Bank Réturns of Scottish ... Return Chartered Colonial Checking of Postings held over ... Banks... ... 268 357, 358, 691 I12, 204 100, IOI 37, III Cheque Register Cheques for Collection 274-296 297-312 547 206 ... 522 III Banks ... ... Brazilian Currency British Linen Co. Bank ... Silver and Gold North American and West Indian Curren- cies "" Broker "" ... and Jobber Caution to Brokerage, Rates of Californian Gold Bull, ... Call ... Calling over .. ... ... ... ... ... 541 419 420, 433 .441, 442 ... 448 419 523, 524 ... 420 ... II2, 204 Cancellation of Adhesive Stamps, 386, 387, 388, 395, 396 by Bank Officers. 37, 110 on Local Banks, Re- ... gister Payment details to Client's Book by Savings Bank by Companies Alterations in ... 99 III 99 117 117, 118 118, 625, 636, 700 by and to Overseers... 119, 132, 604, 605, 701 by Churchwardens... 604, 605 ... by Commissoners 605 by Unions... 120 ... on Church Accounts.. 120 Advice Informal ... 123 123 3 -19 3 { INDEX. } 729 Cheques to self or order... "" "" Stopped Stopping ... PAGE • Chief Officers ... Chinese Currency 124 124 ...581, 582 Church Accounts Crossed 124, 125, ... 134, 676, 677 Remitting... Clearing House Letters as "" Advice Form "" to Bearer to Order Request Special ... 130 161 ... ... 216 ... ... PAGE. ..I, 2, 160 553, 554 Churchwardens and Overseers.. Circulars ... 120, 132 604, 605 55, 56 ... ••• ... 217 City of Glasgow Bank Clearing in 1881 Clergymen Minters... ... 461, 462 ... ... 335 521 Client's Balance, attachment of 477 217 ... 217 Closing Entries Return 218 Coinage. See Money. 218 "" ... ... Collateral Security ... 270 152 "" 39 "" Book, Notice in.. 218, 219 Former Government, 219 Discount on Assortment of paid ... 219 Bank of France and its arrangement as to 219 Unpaid, returning 236, 237 Clearing List ... 248 Protection to collect- ing Banker under forged indorsement.. 619-623 Distinguishing features 11 of ... Certified Collection, instruments left for III "" &c., Bills for 128, 129 Colonial Banks, Chartered 357, 358 Commencement of Acts... Commission ... ... Commissions, Insurance Com- panies ... ... Commissioners of Inland Re- venue, Return for Commissioners Duties ... and ... Stamp Commissioners, Drafts by Company Cheques ... Indorsements. ... ... ... ... ..623, 624 624 "" Mongering 458 193-196 86 314-316 394, 395 ••• 605 117 118 ... 200, 440-443 པ པ པ Post-dated... 624, 625 Alteration in fraud of drawer Alteration on change ... 625 in banking firm 636 Alteration in date 636 Payment at another branch or bank 636 Alleged libellous publi- ... cation in connection with... Presentment for pay- ... ... 686 ment of ... .684, 685 Holder of, and his Banker • ... 699, 700 Comparative Statement of De- posits, &c. Table of Bank 24 Returns, &c. 340, 341 Tables of Coins... Complaints as to missing, &c., letters ... 534-537 62 ... by Non-members of Stock Exchange 433, 434 Completion of Inspection Re- port ... ... 109 Compliance with Covenants 150 Compound Interest .. ...192, 193 t ' 1 t } 730 INDEX. Compounding for Stamp Du- PAGE. ties...222-224, 228-230, 389-391 Computation of Accounts... 23, 89, 90, 116 Computation of time .. 662, 663 Conditional Accounts >> Conference, Monetary ... Indorsement Conflict of Laws 121, 122 677 International ... ... 335-339 .674, 675 Consideration Money in Transfers ... Consolidation of Accounts in the Funds ... Consols in 1881 وو Contango ... Continuation ... ... ... ..407, 408 · 377 ... 367, 420 ... Continent, Passports in con- ... nection with... Contract Note... "" duty on ... ... Corresponding pars between rupees, taels, and silver Cost Book, Mines "" ... ... PAGE. ... 554. ... 415 and Stamp Duties 388 ... Counterfoils of Draft, and De- posit Receipt Forms Books.. 103 Country Clearing Cheque List. 248. Bank and its Stock County Stock, and Stamp ... ... Duty Coupon Diary... Court, investment of Cash under Broker ... ... ... 399 391 89. ... ... ... .371, 691 626 ... 500 150 control of Court of Probate ... Courts of Record, inferior Covenants, compliance with ... 335 420 420 ... 566 "" 400 "" 386 by Indorsement. In- ternational Law 613-616 Contracts to pay differences... Discount 424-431 ... ... 699 Conveyancing Act of 1881... "> 154, 155, 651 Act of 1882, and acknowledgment of Deeds by Married Women Corner, to ... 651-654 ... ... Credit Forms, various 211-216 Vouchers ... 116, 117 placed to indorsements.. 124 Creditor, secured ... ... 499. judgment, and gar- nishee order... 500, 50F Credits, established, &c.... 128 special ... 619 Crises and Bank of England... recent Crossed Cheques Crown Moneys ... 420, 442 Corporation Aggregate, attach- ment of funds in hands of... 490-498 Corporations, sole and aggre- gate ... ... 490 Corporation Stocks, composi- ... tion on Transfers of .389, 390 Correspondence with Author... 479-481, 699-703 Correspondence, Forms of Ad- dress in (and see Forms). 703-710 ... ... 327-330 . 360, 361 124, 125, 134, 676, 677 ... 475, 476 Currency of Bills from the East 335 Current Account Ledger... 97, III, 112 Monthly Balance Re- turn Custom of Bill Brokers Customs, Officers of ... ... ... ... Daily Debit Balance Book "" "" Statement 266 576-578 ... ... 475 98 255-258 Totals of Week Return from Branches 264, 265 ... Damaged Bonds, &c. • 438 INDEX. PAGE. 731 PAGE. Date, omission of in bill... 659-661 Days of Grace, Insurance Quarter Death of Fundholders of Minors "" ... 71-82, 86-89 ... ... ... ... 82 121 121 ..420, 433 Diamonds... Differences, Contracts to pay... in Cash 99 Directors ... ... ... ... ... 526 424-431 39-41 196-202 Trafficking in Shares. 196 between 196 Fraud 216 ... ... Distinction "" and Trustees ... 199. Dealer Debit Form "" and Credit Letter Form. 242 Debt, National "" ... ... 367-369 satisfaction of, by pay- ment of smaller sum... 633-635 Debtor, presence of, at first meeting of Creditors 593, 594 ... Debts, attachment of.-See At- tachment of Funds. "" Plurality of Director- ships ... ... Criminal liability ... Compensating for mis- deeds of fellow- director... 200, 201 ... 201 Acting or Managing... 462 ! "" Discount ... Debts, Bad ... ... 24 Contracts • "" Bad and Doubtful Re- turn ... 271 Deceased Stockholder ... ... 376 Defaulter on Stock Exchange... 414, 415, 433, 444-447 Deficiency in Stamp Account... 46 Denmark, Norway, and Sweden, currency of ... 535, ... ... Ledger and view of Discount tions Book 420 699- Obliga- 98, 99 Obligations Return... 267 Rates, Table of Delivery of Shares ... ... 411, 420 Discounting Bills Dishonoured Bills 542, 544, 548, 550 Denoting Stamp ... 393 Deposit Receipt 47 Distinguishing Cheque... 21 "" ... Forms, Weekly Return of ... 46, 266 Forms ..232, 233 ... Application, &c. Books... ... Register and re- lative Index.. Account Ledger... 97, 102 ... ... 361-366, 691 ... . 171, 172 18, 66, 114, 130, 164 Notice Book 114. features of Dividend Warrants... Dividends, payment of Unclaimed ... 623, 624 ... 685 ... ... 406 378 Restricted, suggested 463 Divisional Courts, &c. Docquet Form ... Documentary Bills ... Documents, exchange of 102, 103 "" III, 112 Balance Return 268 23 vii.-ix. ... ... 210 ... 333-335 405 · 436 396. regularity of for which postage stamps available ... Drafts Decimal " 33 269 • • 7-10, 43-47, 220-230 Cancelled or spoiled 45, 46 732 INDEX. PAGE. PAGE. 1 420 Draft Issued Book, Branch ... Ex New ... ... 44, 115 Exchange and Discount Book.. 99 "" Weekly Return of... 46, 266 Exchequer Bills Bonds "" ... Forms of 221, 222 Executors ,, Application Forms 220, 221 and Stamp Duty 222, 224 ... Payment without advice 223 Enactments in connec- ,, tion with "" advising issue of without acceptance ... Drawee, Funds in hands Drawer and Drawee person Drawn Bonds ... ... ... Duplicate Ledgers ... Early Stock Jobbing East India Stocks ... "" "" ... Notice by one several ... ... Transferring Trading and Probate Executrix marrying ... ... 333, 368 368 130-132 of ... ... 120 406 567, 568 ... 626 120 Exhibition of Probates, &c. 124 ... ... 223-227 227 244, 245 of... 670, 698 panies' ... 670 ... same ..412, 437 ... 36, 255, 274 Effects of Bank Mismanage- ment Embossed Postage Envelopes... ... · 397, 398 371-373 ... ... ... 459 61, 688 ... 223-227 372 Enactments in connection with Bankers' Drafts Enfaced Paper ... England, Bank of.-See Bank of England. England, present Moneys of ... 516-519, 536, 553 ! Entries, verification of ... 95, 96 61, 688 Envelopes, embossed postage... Registered Letter... 59 Equitable Assignment .476, 477 Jurisdiction in con- nection with Interest Equity and Law ... Expenses, Insurance Com- 85, 86 342-347 Explanation of Bank of England, Weekly Return ... Exports and Imports of the Precious Metals Extract, Balance Book Face value... ... ... 526, 527 98 ... : 420 False representations, liability "" for, by Promoters of Companies Opinions Felon, debt of.. ... Fictitious, &c., person ... 443 ..636, 637 ... ... 574, 575 .. 670 85 Fidelity Guarantee Insurance Companies ... • Fire and Life Insurance Com- 184 "" iv. ... ... Errors in Accounts, &c.... 128, 138 Esquires and Gentlemen... 705, 706 Essentials in connection with Securities Ex. Coup. &c. ... ... 420 ... 144, 145, 154 panies...70-81 Days of Grace. 71- 82, 86-89 Premiums 22, 68, 69, 115 Insurance Premiums additional 82 ... 153 Forgery. Incomplete bill... "" 607, 608 Silence of party whose signature forged 616 Protection to collect- ing Banker ... 619-623 INDEX. PAGE. 733- PAGE. ...3-26 Foreign Securities, duties on 384-386 Shares, quotations of... 440 Sovereign, attachment .. 480-483 of funds of Attachment...484, 486, 499 Forms, various- Inspection Report I., Gen- eral Business... ... Inspection Report II., Ad- Forms, various- General Cash Balance Book 108: Savings Bank Credit and Cheque.. ... 117 Married Women.-Man- ... 120, 690, 647 dates Docquet ... ... 210 Credit 211-216, 612 Debit... 216 ... ... vances, &c. 27-33 1 Advice of Acceptance 217 Application for Limit 32, 33 Cheque 217, 218 III. 34, 35 38 42 Inspection Report Securities ... Money Order ... Postal Order Branch Drafts Issued Book 44 Plate Register ... ... Diaries for Life and Fire Premiums ... Outstanding Premium Half-yearly Return of Un- stamped Notes and Bills with letter of advice. 229, 230. Weekly Return of Notes... 231 Deposit Receipt Draft application 220, 221 Draft... 221, 222 67 233 68 Indemnity on Loss of Drafts, &c. 234 Receipts Book 69 Notices in connection with Premium Receipt Circular 69 Money Lent and Lodged Bills ... ... 235, 236. Book 90 Cheques Current and Deposit Ac- count Ledgers 97 Discount Ledger 98 Register of Limits 99 Letters returning unpaid Letters with remittances... Forwarding for acceptance 241 Acknowledging remit- .236, 237 237-240- Bill and Cheque Registers 100 Bills Dishonoured Book ... IOI Bank Rate Book tances ... ... .241, 242 ΙΟΙ 102 ... دو Note Register... 102 Deposit Receipt Register... 102 Index Book... Debit and Credit Letter ... 242 Advising payment received 242, 243 243, 244 + ... 103 issue of Draft... Charges General Book 103 244, 245 245 Paying over 4 ! Register of Securities for Advances ... ... 104 Register of Securites for Safe Custody.. Obligants on Guarantee ... 105 ... 105 105, 106 Book .་་ Signature Books Register of Letters received 106 Owning Subscription Application for Signature.. 245 Memorandum Letter and Lists to London Agents 246 ... 246-249. 1 249-251 ... ..251, 252 Letter, &c., from London Agents Account 734 Forms, various— Status Inquiry... PAGE INDEX. 252, 253 Forms, various- Branch Returns of Man- chester and Liver- PAGE. Branch Daily Statement... 255-258 Entries in Transitu 258 Weekly General Returns 259-263 Return of Daily Totals 264, 265 Return of Draft and Deposit Re- ceipt Forms 266 Monthly Current Account Balance "" Return Monthly 443 ... ... 266 Current Decimal Return. 267 Monthly View of Discount Obliga- tions... ... ... 267 268 Monthly Analysis of Charges Quarterly Deposit Account Balance Return ... 268 Quarterly Deposit Decimal Return. 269 Half-yearly Balance Return ... Half-yearly Return 269 of Closing Entries 270 Half-yearly Return of Money Lent and Lodged Book Totals and Averages. ... Half-yearly Return of Bad and Returns of Scottish pool District Bank... 274-296 ... . 297-311 312, 313 Banks General Balance Statement Return for Commissioners of Inland Revenue 315 for Registrar of Joint Stock Companies.. Statement by Limited Banks 318, 319 ... 320, 321 Power of Attorney 373-375 Application to Bank of England to consolidate Accounts ... ... 377 Executors, &c., transferring 406 Undertaking, in complaint to Stock Exchange, by Non-Member 434 Notice to Garnishee Bankers 486 Certificate of Identity for Passport ... ... 563 Application for Passport... 563 Notice on retirement of Bill for stranger Special Credit ... Of Protest... ... 601 ... 619 680 ... 144 Of Address in Correspond- ence ... Royalty 703-710 703 Nobility Gentry 703-705 705, 706 271 Privy Councillors 706 ... 706 Doubtful Debts. 271 Half-yearly Sche- dule... .. 272, 273 ... Government Depart- ments Judges Clergy Navy ... ..707, 708 ...708, 709 709 1 } INDEX. 735 Forms, various- PAGE. Of Address in Correspondence Army... Volunteers ... ... PAGE. 99, 112 Return weekly, Branch General Ledger ... . 709 709 ... Civic Functionaries... 710 Foreign Ambassadors 710 Certificate in terms of in- ferior Courts Judgments Fractions of a penny and Na- tional Debt Extension Act ... vii, viii. ... 368 543, 547 535 France, Moneys of 534, 539, "" National Debt of Fraud, Debt incurred by 580, 697 alteration of Cheque in fraud of Drawer Frauds, Statute of Limitations in connection with ... 196-199, 632, 634 Fraudulent Transfers 259-263 Balance Statement 312, 313 106, 690 Signature Books 105, Gentlemen and Esquires... 705, 706 German Currency ...546, 542, 543 Gladstone, Mr. ... Gold and Silver producing V. Countries... ... ... 524 Finds of 525 Artificial "" Imports and Exports of 526 Transactions in by Bank ... ... 526 " 625 of England 528 and Silver Productions of United States of America 532 ... ... 418 "" of Mexico 714 Bank Management 461-463 Preference 579, · Fund for Bank Officers 580, 697 206 Guarantee Companies ... "" Funded Debt ... 367, 368 Production of the World Government Life Annuities 532, 533 378 ... ... 85 Funds, Attachment of.-See Attachment of Funds. Funds, Transactions in the 367-378 Fundholders, Death of ... 121 ... Garnishee Bankers, Form of "> Notice to ... ... 486 Order, Holder of, and Mortgagor... 500 Order obtained by judgment creditor insufficient in amount 149 Guarantor, Proof by Guarantor's Book Hail Storm Insurance panies ... 576-578 105 Com- ... ... 84 Half-yearly Balance Return 269 ༤ 35 Return of Closing Entries ... ... 270 Money L. & L. Book Totals & Averages Return ... 271 Return of Bad and Doubtful Debts... 271 Schedule Statement by Lmtd. Banks Hamburg, Currency of Hanoverian Medal ... ... 272, 273 · 320, 321 546 ·519, 693 "" 500, 501 General Cash Balance Book ... 107, 108 General Irregularities in con- nection with Vouchers 125-128 } 736 Head Office, Special Books "" INDEX. PAGE. 107 Arrangement at .. 160 Head Post Offices Held over Cheques ... ... ... High Court of Justice, attach- ment in ... 61 III 490 Hiring Agreement for Months 600 Holder and Banker... ... 699, 700 Holidays, Bank ... 94 Stock Exchange 448 Honour suprà protest, accept- ance for... ... Companies from ... ... 683 ... 85 62 Horse, Vehicle, &c., Insurance Hot Climates, Letters to and Husband and Wife, Accounts ... ... in name of 1 Imperfect Lodgment ... .702, 703 147-149 Imports and Exports of the Precious Metals...... 526, 527 Incidental Expenses Account... PAGE 613-616 Indorsements Contract by, In- ternational law Forged of Cheque. Protection to Collecting Banker... 619-623 Conditional 677 Indorser's right to Securities of ... ... Infant Stockholder... Acceptor Trading 611 ... ... ... 411 568-570 500 Inferior Courts of Record Judgments Ex- tension Act... vi.-viii. Informal Debits or Cheques. 123 ... ... Inland Parcels Post... Inland Revenue, Return for Commissioners of Inland Revenue Commissioners and Stamp Duties 689 314-316 ... ... 394 ... 31 Incomplete Bill 15, 47 Book 47, 100 685 Inoperative Advances Indorsement.. 608-610- Inquiries Status Forgery... 607, 608 Inscribed Stock Incomplete Title ... ... 145-147 . 153 .. 252, 253 420¹ ... iv., 1-210 234 ... 529, 530 Incumbrances, Notice of Indemnity in connection with Lost Drafts, &c. ... India Council Bills.. "" Regulation as to silver in 552 Imports and Exports of Gold ... 552, 696, 697 Indorsements, Absence of 134 " "" "" པ ... by Married Wo- man ... ... 134 by Companies... 118 by Overseers 119 Placed to credit 124 Self or order 124 Inoperative 608-610 Re-indorsement. 611 Inspection, Inspector-General Chief Officers ... I, 160 2, 160 Periodical Inspection... 2, 27, 35 Report I., General Busi- ness ... Cash Balance Drafts 3-26, 109, 687 ... 4-6, 28-30, 36-42, 110 ... ... 7-10, 42-47 Stamp Account ... II-14, 47, 60, 115, 116 Postages Account ... 15, 47, 48, 60, 116 Incidental Expenses Ac- count Bills, Current ... ... 15, 47 16, 61 # INDEX. PAGE. 737 PAGE. Registration Railway Stamps 57-59 Stamp and Postages Ac- Inspection- Inspection- Miscellaneous Bills 17, 62-66 Bills dishonoured ... 18, 66 Bonds ... ... ... 19 Securities for Safe Custody Securities for Advances... 20, 67 21 counts Bills of Exchange Securities... 59, 60 60 61-66 ... 66-68 ... 67 ... ... Plate Register…. Life and Fire Premiums 68, 69 Insurance Companies, &c. 70-89 Coupon Diary ... Securities temporarily lodged 22 Life and Fire Premiums... 22, 68, 69 Computation of Accounts.. 23, 89, 90, 116 Comparative Statement. Accounts 24 Closed Book... Branch Officers... 24, 37, 89 Number of Accounts 89, 90 Opened and Money Lent and Lodged Book Pass Books J 90 ... 90 91-94 Balance Statements and Proving Balances 95 Verification of Entries 95, 96 II0, 203-209 Pass Books Remarks ... ... 25, 91-94 26, 109 Report II., Advances, &c. 27-33 Cash Balance ... 28-30 Securities. Report III.... 96 Irregular Advances... Application for Limit 32, 33 Report III., Securities ... Procedure at General In- 31 Books 97-109, III-115 Completion of Report 109 spection Cash Orders Letter-General Business 1 110-139 Securities 139-154 Arrangement of Branch 34, 35, 96 "" ... 36 Sub-Branches ... ... 37, IIO 37, 110 37, 38 Cheques by Bank Officers Post Office Money Orders Postal Orders 37, 38, 42 ... Differences in Cash... Drafts Stamp Account Postages "" ... ... 39-4I 42-47 ... 47 47, 48 Incidental Expenses Ac- count ... ... ... ... 47 60 Assimilation of Stamps 48, Telegrams Receipts ... ... Post Wrappers Post Cards ... ... 48, 49 50-52 53, 54 55-57 Duties ... Arrangement Bank ... at ... .. ... Branch Returns Rating Accounts Rating Bills Interest ... ... • 155 155-159 Head 160-167 167-170 170, 171 171, 172 172-192 Compound Interest... 192, 193 Commission • ... Directors... ... 193-196 196-202 203-209 Branch Officers Final Matters in connec- tion with Inspection 209 Inspecting and Auditing... 209 Pass Books and Return of Paid Vouchers 210 ... V V 1 Į 738 F INDEX. PAGE. PAGE. Inspection of Register of Mem- bers of Joint Stock Companies 319 Inspector-General ... Interest, Unrestricted Rate Equitable Jurisdiction ,, I, 160 Instructions in connection with Pass Books 93, 94 in connection with Cheque Books... "" 218, 219 III Instruments left for collection Insufficient Terms of Mortgage Amount of Guaran- tee ... 144, 145 ... 149 85 Insurance and Assurance by Husband .647, 648 ... of Remittance, &c., 180 in connection with 184-192 Compound... 192, 193 ... Allowed by London Banks, &c Proving for... 341 584 International Law, Contract by Indorsement 613-616 Monetary Confer- Intestates, Estates of small ence 335-339 value... 630, 631 ... Married Women.. 649, 650 313 of Trust Moneys of Cash under con- trol of Court 371, 691 370, 371 Investments, Bank ... Letters Insurance Companies Accident Cattle... ... 689 70-85 84 ... ... 84 Hail Storm Life and Fire Marine Plate Glass Fidelity Guarantee Horse, Vehicle, &c... ... 85 Investors, Table for... ... 449-45I 84 Ireland, Bank of ... 85 Irish Banks ... ... 355-357 .. 356, 357 ... 70-81 ... 82 31 135 ... ... ... ... 83 Steam Boiler Commissions by Constitution of... Expenses of ... ... ... ... ... ... 83 86 85 85, 86 Impropriety of Bankers act- ing as Agents of ... 202 ... Insurance, Days of Grace 71- "" وو 82, 86-89 Lodgment of Deeds without ... Additional Fire by Post Office Intemperance ... Irregular Advances ... Documents Irregularities, general, in con- nection with Vouchers 125-128 Issues by Foreign Governments 435 Italian Currency ... 543, 545, Jobber Joint Accounts... Owners Joint Stock ... 553, 695, 696 .420, 433 . 119, 132 Companies, ... ... 151 Register of Members of 317 Joint Stock Companies, Return for Registrar of 149 ... 153 689 122 Lame Duck ... Interest, Former Law and Rates 172-176 Juniors, Bank ... ... ... 316-319 ..205, 207 ... 421 63 } ... Late Letters Latin Monetary Convention 1. 535 "" Usury.. ... ... € 176 Law and Equity Former Foreign Rates 179 Law Merchant ... ... ... ... IV. 685 I } INDEX. PAGE. 739 PAGE. 24 Leeman's Act • 412 Legal Coin Tenders. .536, 537 ... Legal Proceedings in connec- tion with Stock Exchange Legislation, Bank ... ... 433, 436 461-463 Statements Letter Books ... 107 Libel, Alleged... ... ... Letters, with Remittances 237-240 "" Insurance of Liability of Shareholders...415, 689 416, 418 ... 443 of Promoters for False "" 置 ​Debit and Credit Forms 242 Inspection, General Business ... • 110-139 "" Inspection, Securities... and Lists to London "" 139-154 &c., Agents from 246-249 Licences, Bank Lien, Banker's ... ... 616-619 Life Annuities, Government 378 and Fire Insurance Com- panies ... 70-81 and Fire Insurance Com- panies, Days of Grace... 686 228 ƒ 篓 ​London 71-82, 86-89 Agents 249-251 and Fire Premiums "" Letters, Circular ... 55, 56 Policies ... Conveyance of 62, 63 • in Returned Letter. Dimensions of, for Post 60 Office 62 Late ... 63 "" Missing, &c. 62 61 པ Posted, effect of of of Allotment, dealing in 435 Allotment and Renunciation, duty on of Renunciation Light Coinage Limit, Application for Limited Banks, Statement by ... 22, 68, 69, 115 ... ... 152 .518, 519 32, 33 Half-yearly ... Limits, Register of ... Liquidators Lives, Property for ... ... 320, 321 99 133, 134 151 691, 692 181 ... Loan Deposits, Receipts for... 386, 387 Loan Swindling ... 405 Loans by Enemy ,, Bargains in Registration of, Post Office Regulations 1 as to Retention of, by Post ... 435 438 414 647 Quotations of New by Married Women Local Banks, Cheques Register 99 Lodgment, Imperfect 33 པ "" ว 57-59 Office 63 147-149 to be called for 62 Lodgments to Credit .. 116, 117 1 to Hot Climates 62 London Agency Office ... 164-167 Unpaid and Insuffi- Diary ... ... ... 165 ciently Paid 60 ... ... 48, 107 Posted Book Received Register ... Unpaid гоб 216 as Cheques Returning Cheques · 236, 237 Current Account Book 166 Postal Districts ... Outstanding Items Book ... ... Agents, Letter and 166 63 Lists to ... { ... 246-249 4 ! 740 + 1 INDEX. い ​London Agents, Letter, &c., " from PAGE. ... . 249, 251 Lord Mayor's Court, Attachment in Married Woman, Liabilities Married Woman, New Law of PAGE. 6.37 638-651, 697, 702 1882 ... The Act ... ... 639-646 484-489, 499 Lord Mayor's Court, Attach- Torts... ment in Lord Mayor's Court, Transfer ... ..484-489, 499 Petition General Rights, &c....639, 640 ...641, 646 642-644 Action : : : of Action from ... ... 498, 499 Suing ... ... Loss of Deposit Account Pass Halves of Notes, Pay- Book 113 Contracting Bankruptcy Curtesy : ment on Losses by Bankruptcy 608 Loans ... 598 Bills "" Lost, &c., Documents Remittance, &c. Drafts, &c., Guarantee and Indemnity in con- ... ... .411, 412 674 ... Equity to a Settlement Stock, Investments, &c.... 647 ... 645 646 ... 646 646 ... 646 ... 647 647 ... 135 Current Accounts ... Insurance ... ... 647 647-648 nection with Madras Currency Making Price ... Manager, Branch Bank General ..233, 234 ... ... ... 548 421 156, 159 ... 2, 160 Manchester and Liverpool Dis- trict Bank Branch Returns- Daily Weekly Monthly ... ... ... Half-yearly Mansfield, Lord Marginal Alteration ... ... 274-278 279-286, 287 ... 286, 287 ... 287-296 iv. ... 607 Marine Insurance Companies... 82, 83 Mark, Attesting Signatures by 122 Marked or Certified Cheques... 624 Married Woman -120, 690, པ 639, 647-132, 134, 151, 152 as Stockholder 377 Railway Stock and "" as Executrix... 568 411 Rights of 570-572 Savings from Earnings, &c. 648 Criminal Liability ...648, 649 Divorce Cases... ... 697 Household Savings, &c.... 649 Shares, Winding up of Company Intestacy ... Statutes of Limitation and Separate Property Administration... ... 649 ..649, 650 650 650 ... Gift in Joint Tenancy with ... Third Person ..697, 698 Separate Property ...698, 714 Commencement of Act 651 Scottish Acts, relating to.. 651 Power of Court to bind her ... 65I Interest Power of Attorney ... 651 ... Acknowledgment of Deeds 651-654 Tenant for Life ...654, 655 Accounts in name of, and Husband Maunday Money ... .702, 703 ... Mayor of London's Court, 536 Attachment in 484-489, 499 ... INDEX. 741 Mayor of London's Court, PAGE. Transfer of Action from 498, 499 Medal, Hanoverian, &c....519, 693 Members of Joint Stock Com- panies, Register of Memorabilia of Year 1881 331-340 Memorandum Form ... Mexican Gold and Silver Money- Gold Angel, &c. ... Coinage, proposition of Dean Swift ... Relative Value of Sovereign... 317 246 Shilling 714 Crown, &c. • PAGE. 510 } ... 509 510 510 ... 510 510 ... 511 Minimum Monthly Balance 171 Mining Companies... Minors as Stockholders • ... 415-418 121, 132 ... Mint, The, Sources of Supply to 376 522 and Coinage... 527-531 Minute and Procedure Book... 103, 114 Miscellaneous Bills 17, 62-66, 112 Miscellanies in Cash Balance Book Mismanagement, Bank Half-crown, &c. Coinage first dated and III ... 461 "" Mistakes, &c., in connection with Accounts in the Funds.. 377 Mode of Coining Modern Statutes ... ... · 530, 531 459, 460 Monetary Conference, Interna- "" tional 335-339 ... Convention, Latin... 535 value denoted 511 debasement of 511 ... debasement of, Bishop Latimer on Milled... Reformation ... ... of, under Queen Elizabeth First Copper of James I... Quartering 511 512 ... 512 1. 512 512 ... on, and adoption of "6 'Mag. Brit."... 512 of Charles I 512, 513 of Commonwealth Money of William & Mary 514 513, 514 of Charles II 514 Scandi- of the Guinea "" 514 navian. 535 503-557 Full Copper 514 ** Its Primitive Representa- Reformation of, tives First Coinage 503 ... 504 Early English Coinage Table of Monarchs 504 505 505 ... 515 The Penny ... Halfpenny and Farthings 506 Easterlings Sterling Gold Coinage Spartan contempt of Gold Florin, &c. Rose Noble ... 506 ..506, 507 507 508 "" 508 509 under Wm. III 515 particulars of, by Sir Isaac Newton 515 Farthing of Queen Anne of the Georges 515, 516 Prices for rare specimens of ... 516 Present Light 516-519 ... .518, 519 Ancient Scottish 519, 520 1 } $ * * 1 742 1 INDEX. PAGE. PAGE. Money- Coinage of James V and sub- "" وو sequent reigns... 520 Scottish Copper 520 Right of 520-522 Clergymen and the 521 ... of 1881 Returns of ... 529, Money- Norway, Sweden, and Den- mark, Currency of 535, 542, 544, 548, 550 French Public Debt... ... 535 English Moneys 536, 553 ... 527 Maunday Money Legal Tenders ... 694, 695 rency ... 513 Hanoverian Medal 519, 693 World ... Assimilation of Irish Cur- 536 536 539, 543 538-556 548, 549 ... 538 Tokens .521, 522 Sources of supply to the Mint 522 Native yield of Silver and United States Moneys 537, Various Moneys of the Turkish Currency, &c. 538, Gold Californian Gold Bengal Currency 522 523, 524 Money of Account Russian Currency Shell Money ... ... 539, 540 · 540, 544, 550, 551, 555 4. 540, 541 British North American and West Indian Cur- rencies Present Gold and Silver- producing countries 524, 525 Finds of Gold ... 525 Riches of South Africa 526 ... Imports and Exports of the Precious Metals Terms for Coining ... • 541 526, 527 527-529 Italian Currency 543, 545, 553, 695, 696 694, 695 Indian Treasury Loss Transactions in Gold by Bank of England... 528 Returns of Coinage... 529, "" German Hamburg Brazilian "" Portuguese,, Madras 542, 543, 546 • 546 ... 547 : ... 530 "" ... 547 548 Mode of Coining ... 530, 531 Bombay "" 549 1 Mint Alterations 531 Spanish 549, 550, 542 The Pyx ... 531 552 in Mexico 714 Comparative Coins -532, 533 Tables of ... 534-537 Production of Gold and "" Silver in U.S. of America 532 "" Production of Gold through- out the World Indian regulations in con- nection with Silver Indian Imports and Ex- ports of Gold ... 552, 696, 697 553, 554 Chinese Currency Corresponding pars be- tween Rupees, Taels, and 543, 547 French Moneys 534, 539, Latin Monetary Convention 535 Billon Coin Scandinavian 554 ... 555 ... 555 "" "" 535 Persian Currency 555, 556 Silver ... ... Polish Currency A 1 * } ? INDEX. 743 Money- PAGE. Name Day National Debt ... sian Notes ... 555 Persian treatment of Rus- Treasure Trove 556, 557 Silver Coin transactions... 694 Gold Coin held by Banks of United Kingdom 695 Money Lent and Lodged Book 90 Money Lent and Lodged Book دو ... Totals and Averages 271 Order Offices Consideration, Transfers... For "" Orders "" ... ... ... 61 in 407, 408 ... 421 37, 38 Regulations Af- ... 38-42 fecting Commission on... 687 Moneys, Crown دو Trust... ... ... "" "" : ... PAGE. ..401, 421 ... 367-369 .. 367, 368 ... Funded "" Unfunded "" 368 and Fractions of a Penny 368 of France 535 Negotiable, what Bills are 665, 666 New Loans and Shares, Bar- gains in ... • 414 New Loans and Shares, Quota- tions of New Shares وو 438-440 405, 437, 439, 440 Issue of within year after first settling day 440 Newspaper, Post Office Regula- tions ... 54, 55 Wrappers 53, 54 ... Nominal Consideration, Duty ... 475, 476 465 on ... ... . ... 384 616 # "" Court ༤ "" 401, 402 539, 540 600 Investment of... 370, 371 ... 371 entrusted to Broker... } of Account Month Non-payment, Australian Colo- nies North America, British, Cur- rency Norway, Sweden, and Den- mark, Currency of 535, 542, 541 544, 548, 550 Monthly Branch Current Ac- count Balance Return... Monthly Branch Decimal Re- Note Issues, Provisions as to 266 turn 267 Discount Ob- وو دو f "" وو ligation Return 267 Charges Re- turn... Mortgage, insufficient terms of Mortgagee, rights of under blank transfer ... Mortgages, &c., Stamp Duties on ... ... 268 144, 145 .. 410, 411 384, 385 500 Mortgagor, and Holder of Gar- nishee Order... 144 .. 35 وو 323-325 English Banks 348-350 Scottish and Irish Banks .350, 351 ... Distinctions in, of English, Scot- tish, and Irish Banks · 351, 352 ... Register Notes, Paying away ور Registration of Remitting ... : 102 III 59 129, 130 608 Payment on Loss of Halves Alteration in Number.. 608 1 1 ย J 1 ན { 744 Notice, Bond at Long "" ... by one of several Exe- cutors of Incumbrances of Bankruptcy ... ... INDEX. PAGE. 151 ... I20 ... 153 580, 581 in connection with Cheque Books... 218, 219 on Retirement of Bill for Stranger Firm ... of Change in Banking ,, by Return of Disho- Notices in connection with Bills бол ... ... 636 noured Bill ... ... 682 235, 236, 682 Number of Accounts... 23, 89, 90, 116 ... ... ... ... 99 Ordinary Bank Documents- Debit Forms Cheque ... ... ... ... PAGE. 216 217-219 Draft Application Forms Draft Forms ... 220, 221 221-223 Drafts, enactments, &c. ... ... relative to Notes, Enactments, ... ... relative to Deposit Receipts ... 223-230 &c. 230-232 .232, 233 Indemnity in connection with lost Drafts, &c. Notices in connection with Numbered Cheques to Clients' Book Obligants on Guarantee Book... 105 Offers in respect of Stock, &c.. Officers, Branch 24, 37,110, 203-209 "" Chief ... Public Funds "" "" 435, 436 ...I, 2, 160 203 ... ... ... ... ... ... ... 206 475 447 659-661 of Customs Official Assignees Omission of Date in Bill ... Open Stock Exchange Company 448, 449 Omnium ... Opinion Books "" -False Representation ... 421 ... 104, 114 636, 637 421, 422 ... 37, 110 Options Orders, Cash "" Post Office Money 37, 38 دو "" Postal ... Traders' ... 37, 38, 42 ... 129 Ordinary Bank Documents 211-253 Docquet Form Credit Forms 210 211-216 Bills ... Letters returning Unpaid Cheques 234 ... 235, 236 ... .236, 237 237-240 Letters with Remittances Forwarding for acceptance 241 Acknowledging remittances 241, 242 Debiting and Crediting Letter Forms Paying over ... ... 242 .242, 243 Advising Payments Re- وو ceived... 243, 244 Drafts Issued 244, 245 Owning Subscriptions 245 ... Applying for Signatures ... 245 Memorandum Form Acknowledgments by Post Card ... Letter and Lists to London Agents ... ... Letter, &c., from London Agents ... Account Forms ... 246 246 246-249 249, 250 ... 251 ... 252, 253 166 68 Status Inquiries Outstanding Items Book, Lon- don Premium Receipts Book 1 1 1 INDEX. PAGE. 745 PAGE. Overdrawn Accounts ... Overseers, Cheques by and to 31 119, 132, 604, 605, 701 Owning Subscriptions ... ... 245 and Silver ... • Paid Vouchers... Par and Premium Parcels Post Pars between Rupees, Taels, Part Disposal of Property 149, 150 ... ... 210, 219 "" ... 422 "" *** ... 689 "> 554 >> "" Particulars of Securities ... 33 Pass Books 25, 91-94, 113, 209 in 91-93 Legal effect of entries Mode of Writing up 93 Instructions in con- nection with Loss of Deposit Production of 210, Payment by Trustee to Broker 402-405 on Loss of Halves of Notes ... ... 608 by Banker 611-613, 700 on Death of Persian Client ... ...625, 626 on Exhibition of Pro- bates and Letters of Administration 629 ► of Debt by Smaller Sum ... 633-635 of Cheques at another ... Branch or Bank 636 Presentment of "" Cheque for 684, 685 ... ... 94 113 Payments, Appropriation of 463–469 Received, Advising.. 213, 214 Pencil, Signatures in 243, 244 601-603 and Paid Vouchers.. 210 Penny Post Passports ... 559-566 Purposes of, and Changes in connection with General Regulations ... 559 560-563 Application thro' Banker 563 Special official instructions Periodical Inspection Persian Currency Treatment of Russian ... 69 2, 27, 35 ... .555, 556 Notes ... ... 555 1 Client, Payment on Death of ... 625, 626 ... "" 564, 565 In connection with Russia 565 Belgium Placed to Credit Indorsements 124 Plate Glass Insurance Com- panies 83 Register 67 Plurality of Directorships 200 ... 555 ... 547 and Continent generally 566 Utility of ... ... 566 Exhibition of, in England 566 Past Due Bills Book Pay Day on Stock Exchange Payee... ΙΟΙ Polish Currency Portuguese Currency Post, Time occupied in course 401, 422 ... ... ... ... 664 Cards "" ... ... III >> of 64, 65 ... ... ... Paying away Notes... Over "" .242, 243 Payment, Details on Cheque... III to Drunken Account- >> holders ... ... .. 122 "" of Drafts without advice ... ... 223 55-57 for acknowledg- ments ... Reply Foreign Office, Miscellaneous in- formation in connection 246 .687, 688 688 ... ... with ... 60-66, 688 : ! 746 Y INDEX. PAGE. PAGE. Post Office Money Orders 37, 38 Office Money Orders Regulations affecting 38-42 Office Money Orders and Stamp Duties Office Revenue Parcels " ... 1 "" Wrappers Premiums Receipt Outstanding Book ... Presentment for Acceptance ... 69. 672, 673, 679, 680- of Cheque for Payment... 684, 685 379 ... ... .688, 689 689 Prices for Rare Coins ... 53, 54 Principal ... ... 516. ... .422, 423 Postage Envelopes, Embossed.. 61 Private Information Book ... 104 Rates of 60 Probate Court ... Stamps from Rural Probate Register Messenger 61 Probates, &c., Exhibition of ... "" Orders ... "" Stamps, imperfect and Stamps, Documents for which available Contemplated Reduc- tion of Postages Account 15, 47, 48, Postal Advantages, further Districts, London Regulations af- "" spoiled ... 61 "" ... 396 ... ... 689 and Administrations... Procedure at General Inspection 36 and Minute Book... 626 ... 105 124 Payment on 629. 626-631 60, 116 Promissory Notes 103, 114 ...677, 678 66 63 Promoters of Companies, Lia- bility for False Representa- 37, 38, 688 tions • 443 Proof.-See Bankruptcy. ... fecting 42, 43 Statistics of World 688 for Lives... • دو و, United Kingdom 688 Post-dated Cheques Postmaster-General, privilege of Powers of Attorney... "" ..624, 625 exclusive ... Property, part disposal of 149, 150 Protection to Collecting Banker under Forged Indorsement of Cheque Protest Book 62 373-376 and Stamp Duties 379-381 by Married Women... 651 Precautions in Practice ... 138, 139 Precious Metals, Imports and Exports of Precious Stones ... ... ... ... . 526, 527 526 68 Premium Diary, Branch... وو Head Office... 68 Premiums, Fire Insurance of Bill ... Forms of "" Proving Balances 151 • ... 619-623 ... ... ΙΟΙ : 682 ... 680 ... ... 95 Proxies, &c., Touting for 595-598 Public Department and Stamp Duties ... Public Officers, Bank ... 379 203 Publishers and Authors 715, 716 ... Purchase of Stocks Registered in Bank of England Purchases through Broker Purser ... ... ... 370 401 82 ... 417 Put, and Put and Call Pyx, The ... ... 423 ... 531 Life and Fire... 22, 68, 69 ... 1 ་ 1 INDEX. 747 PAGE. Qualified Acceptance Quarter-Days ... 674-676 82 Quarterly Deposit Account Balance Return from Branches ... 268 Quarterly Deposit Account Decimal Return from Register of Plate, &c. PAGE. 67 of Members of Joint Stock Companies... 317 of Members of Joint Stock Companies, Inspection of 319, 413 Registered Letter Envelopes ... 59 Branches ... ... 269 Stock 9.4 ... 423 ... ... 423 316-319 "" 59 Quotations of New Loans and Shares... 438-440 .. of Foreign Shares... 440 Railway Bonds, Dealings in 438 "" Stamps Rate Bank, Book Rates in 1881 ... "" of Postage "" "" ་ ... ... ... 59, 60 Registrar of Joint Stock Com- panies, Return for Registration of Bank Notes 102 99 331-335 ... of Interest, former 175, 60 176, 179 unrestricted 180 allowed by London Banks, &c. 341 of Brokerage... Bank of England ...359- of Letters, Post Office regulations as to... 57-59 of Resolutions in Bankruptcy 592 ... Regulations under Stamp Act Re-indorsement 392-395 ... 611 Remarks, Inspection Report 26, 109 Remittance Lists to London ... "" of of 1882 Rating Accounts "" Bills Receipts >> ... ... : ... 448 Agents Remitting Bills ... .247, 248 Notes 129 129, 130 366, 691 Table Cheques. ... ... ... 130 362-366 by Letter Renunciation, Letters of... 237-240 405 529 ,, Duty on ... 170, 171 386, 387, 388 171, 172 50-52 Reply Post Cards ... .687, 688 109, 687 II, III, 27-33 Provisions of the Stamp Act affecting... 52-54 for Loan Deposits 691, 692 Record, Inferior Courts of Re-delivery of Securities.. } Referee in case of need ... ... 500 153 678 Report I, Inspection... 3-26, وو 34, 35, 96 .586, 697 Reputed Ownership Requisites in certain cases in connection with Securities ... 139-144 Restricted Dividends,'suggested 463 Results of Bank Mismanage- ment Retention of Letters by Post 105 Office 461 63. ... Register of Letters Received ... 106 of Limits "" 141 of Securities for ad- vances ... of Securities for Safe Custody... 99 I04 2 C F 748 INDEX. { f Retiring Bills ... Return, Weekly, of Draft and ") and Deposit Receipt Forms PAGE. бог Schedule of Money Lodged and Lent PAGE. ... 272, 273 352-355 Scotland, Bank of ... ... 46, 266 Scottish Banks... for Commissioners of Inland Revenue 314-316 for Registrar of Joint Stock Companies ... Returned Letter Office 316-319 62 "" ..354, 355 Branch Bank Returns- Weekly 297-302, 306, 307 Monthly 303-305, 307, 308 Quarterly ... ... .308, 309 Half-yearly .310, 311 ... Acts relating to Married Returning Paid Vouchers "" ... 210 Unpaid Cheques 236, 237 Returns by Branches 167-170, Women ... " Judges... ... Scrip ... ... 651 708 423 255-312 Certificates, Duty on 387, 388 Weekly, of Bank of Seal of Companies ... 658 England .325, Secretary ... ... 161, 474 326, 330, 331 Weekly, of Bank of >> tion of 342-347 "" Temporary Secured Creditor 499, 591, 592 Securities for Advances... 21, 66 for Safe Custody 20, Particulars of 33, 34, Report III. "" cases Requisites in certain ... 67 22 35 96 139-144 England, explana- Bank of England, com- parative Table of... 340, 341 529, 694, 695 of Coinage in Bankruptcy Right of Coinage Rules and Articles "" ... ... 595-599 ... 520 . 135, 139 and Regulations of the Stock Exchange 431-448 Russia, Currency of...540, 544, "" 550, 551, 555 Passports in connection with ... 562, 565, 566 Safe Custody, Securities for 20 Salaries, Arrangement as to Sale of Bankrupt's Property Sales through Broker ... 39 ... Mortgages, insuffi- cient terms of 144, 145 Incomplete Title 145-147 Imperfect Lodgment, &c. ... Re-delivery ... ... 147-153 153 "" with cies Notice in connection Additional Fire Poli- Essentials in connec- ... 153 153 1 154 ་ Stock Exchange of Foreign Govern- ments Drawn ... Damaged... ... 418 ... 435 ... 437 438 ... 117 with Acceptor, Holder 205 "" tion with ... 588-590 ... ... 405 Satisfaction by payment of smaller sum · 633-635 Savings Bank, Credit and Cheque Forms vention ... Scandinavian Monetary Con- 535 of Bills' right to .. 584, 585 1 INDEX. 749 Securities of Acceptor, Indor- ser's right to Self or Order Cheques Set, Bills in .. ... PAGE, Stag 611 .. 124 674 Settlements, Voluntary 582, 583 Settlings in Loans and Shares.. Share "" 414, 438, 439, 440 ... 423 List... 418, 419, 442, 443 Warrants, Duty on Shareholders' Liability "" ... ... Stamp Account 11-14, 47, 60, Duties "" "" ... 388 415, 416, 418 Right of Minority of 590 Shares, New ... ... PAGE. 423 115, 116 Deficiency in.. 46 ...379-396, 714 Compounding for 222-224, 228-230, 389-391 Duties on Bank Notes.. 232 Act Regulations ... 392-395 Stamping of Instruments 392, 393 Stamps, Affixing of on Letters "" ..405, 437 Ex Dividend or Ex Interest in Name of Wife Shell Money ... ... Shorthand Writers at Creditors' Meetings Signatories, Change of Signature, &c., Books Appropriated Assimilation of ... Stannary Courts State Book 60. ... 393 48, 60, 395, 396, 714 ... Statement, comparative ... ... 417 100- 24 ... General Balance... 312, 313 ... 444 649 540, 541 ... ... 595 123 Statements or Returns by Branches 167-170 ... ... 105, 106, 113, 114, 690 Signatures by Mark, Attesting 122 པ ་ 35 པ to Bills, &c. Applying for in Pencil ... 227, 657, 658 by Bank Officers ... 245 601-603 603 ... by Churchwardens and Overseers... Half-yearly, by Li- mited Banks 320, 321 ... Stationery and Voucher Office 167 Status Inquiries 252, 253 Statute of Limitations in con- nection with Frauds 196-199, 632, 634 in connection with separate property of Married Women 650 Statutes in connection with 604, 605 by Commissioners 605 Bankers' Drafts ... ... 223-227 Silver and Gold producing Countries Silver Imports and Exports 527 Sovereign, Foreign, Attachment Statutes, Modern ... · 459, 450 ... 524 Steam Boiler Insurance Com- ... of Funds of ... A · 480-483 panies Sterling Stock * ... 83 506, 507 Spanish Currency ... 549, 550, 542 Special Credits ... 619 Specific Appropriation 466-469 Spoiled or Cancelled Drafts 45, 46 Postage Stamps... Spurious Bills, Retiring ... 61 ... ... бол Stock Exchange and its Proce- dure Early Stock Jobbing 397, 398. Present Stock Exchange... 398, 399 Certificates ... ... ... ... 423 ... 369, 391 397-451 1 5 750 { .INDEX. • } PAGE. PAGE. Stock Exchange- Transactions through Country Bank Contract Note... Stock Record Cash and Account Purchases... Money entrusted to Broker Payment by Trustee Sales... ... Documents sent to be 399 400 ... .400, 401 ... 401 Stock Exchange- Table for Investors.. 449-451 Claim by Stockbrokers, and Settlement between Stock Exchange Company, 692, 693 ... ... 401 Open ... ... 448, 449 Stock and Share Auction Com- 401, 402 pany Limited 449 402-405 Stock, Transfers of... ... 378 405 Stocks registered in Bank of England, purchase of 370 Exchanged 405 East India "" ... ... 371-373 New Shares 405 Executors, &c., Trans- ferring ... ... 406 ... ... 406 Dividends... Consideration Money 407, 408 Blank Transfers Delivery of Shares Married Woman Infant ... • 408-411 4II ... ... 4II ... 411 Lost, &c., Documents 411, 412 in name of Deceased in name of Minor in name of Married Woman ... and Stamp Duties 381-- Record... ... 384, 389-391 ... 400, 401 Offers in respect of 435, 436 ex dividend or exinterest 444 Party ... ... ... 376 376 377 Drawn Bonds ... ... ... 412 Stopped Cheque Bank Shares ... ... Stopping 412-414 Bargains in New Loans and Shares Defaulter ... ... 414 .414, 415 Shareholders' Liability 415 ... Mining Companies-Cost Book, Mines... ... ... 415-418 418 418, 419 419-424 ... 424-431 Securities ... Share List Technical Terms Contracts to pay Differ- Rules and Regulations of Stock Exchange 431-448 ... Rates of Brokerage... ences ... Subalterns at Branch 157-159, Sub-Branches ... Sub-Post Offices 124 ... ...581, 582 207-209 ... . 155 61 : ... Subscriptions, owning Summary Diligence... Sunday ... ... ... Sundry Dividend Items ... Surety Suspense Items ... 245 683 661- 138 464, 465, 578, 579 ... . 137, 138 Sweden, Norway, and Den- mark, Currency of 535, 542, 544, 548, 550 448 Table of Treasury Bills · 333, 334, 690 رو Comparative, of Bank Returns, &c. of Bank of England Dis- 340, 341 ... 449 count Rates ... 361-366 Holidays ... ... ... Open Stock Company ... Exchange ... 448 .448, 449 Stock and Share Auction Company Limited f INDEX. 7 751 Table for Investors... • "" PAGE. 449-45I of English Monarchs 505, 506 of Particulars of Coinage by Sir Isaac Newton... 515 of Imports and Exports of Precious Metals... 526, 527, 551, 552, 696, 697 · 529, 694 of Coinage Tokens Tolzey Court of Bristol Touting for Proxies, &c. Traders' Books... Orders PAGE. 521, 522 .499, 500 Transactions in the Funds, &c. Transfer Entries "" ,, of India Council Bills ... 530 Transfers of Stock of Gold and Silver pro- duce in United States 532 of Gold produce of World 595-598 109 129 367-378 ... 134 479 378 of Account from an- other Bank ,, Composition on 389-391 by Executors, &c. ... 406 Consideration Money in ... 407 Blank ...408-411, 436 "" 532, 533 "" of French Money ... 534 "" "" of English 536 وو وو World وو and Silver... "" of United States Money of various Moneys of the of corresponding pars be- tween Rupees, Taels, of Silver Coin transac- 537 "" ... 538-556 Fraudulent Number of "" and the Certificates 418 • 435 436 ... 554 "" Treasure Trove tions ... 694 Telegraphic ...698, 699 Treasury Bills... 332-334, 368, 690 ... 556, 557 "" of Gold Coin held by Trust Company 199 Banks 695 "" Moneys ...465, 627-632 Investment of... >> "" وو Italy ... ... ... 695 370, 371 of Gold Coin held by Technical Terms in connection with Stock Exchange ...419-424 Telegrams... وو ... 48, 688, 689 regulations affecting 49-51 Telegraph Numbers Book 99 Telegraphic Transfers 698, 699 ... ... Trustee, distinction between, Teller Branch Head Bank ... ... 157 161, 162 " Tellers' Books ... 99, 100, 110, III Tenders, Legal Coin .. 536, 537 Terms, Quarter "" for acceptance ... ... ... 82 424-431 ..662, 663 ... Time Bargains... Computation of occupied in course of post Title, Incomplete "" 671 64, 65 145-147 and Director... ... 199 and Stamp Duty . 382 Payment by, to Broker absence, &c., of Lunacy of... Breach of trust by Trusteeship Accounts ... 402-405 572 572, 573 573 119, 120, 133 538, 548, 549 378 Turkish Currency and Bills Unclaimed Dividends Undischarged Bankrupt Unfunded Debt Union Cheques Union Générale ... ... ... 591 .368, 369 120, 567 202 3 1 1 $ > kex } 752 PAGE. INDEX. PAGE. United States Abbreviations... 65 وو Production of Gold and Silver in Moneys of 537, Weekly Returns of Bank of England, Explanation of 342-347 Weekly Return Book 532 "" 538, 539 Unpaid Cheques, returning 236, 237 Usury Variances Various Moneys of the World ... • ... Return of Draft and De- posit Receipt Forms 106 46, 266 General Return from "" 176 135-137, 150, 151 Branches... 259-263 Return of Daily Totals 264, 265 538-556 West Indies, British Currency 541 Wife. See Married Woman. 85 Winding up ..417, 418 ... 95, 96 ix. "" Shareholders 590. ... ... 267 Withdrawal of Balance ... ... 125 Vehicle, &c., Assurance Com- panies Verification of Entries Vice-Chancellors ... ... View of Discount obligations form right of minority of Voluntary Settlements 582, 583 ... Voucher and Stationery Office 167 Vouchers, Inspection World, production of Gold throughout · 532, 533 ... Various Moneys of 538-556 وو Waiver Paid... ... ... 116-128 210 Wrappers, Post or Newspaper 682 ... 53, 54 Weekly Returns of Bank of England... 325, 326, 330, 331 Year 1881, Memorabilia of 331-340 END OF VOL. II. 11 THE PRACTICE OF BANKING EMBRACING THE CASES AT LAW AND IN EQUITY BEARING UPON ALL BRANCHES OF THE SUBJECT 1 BY JOHN HUTCHISON. VOL. I. 1 London: EFFINGHAM WILSON, ROYAL EXCHANGE. Warrington: PERCIVAL PEARSE, 8, SANKEY STREET. FEBRUARY, 1881. [ALL RIGHTS RESERVED.] יז ધ 2 UNIVERSITY OF MICHIGAN 3 9015 06585 3924 14738