THE UNIVERSITY 
 dF ILLINOIS 
 LIBRARY 
 
 From the collection of 
 James Collins, 
 Drumcondra, Ireland. 
 Purchased, 1918. 
 
 332.1 
 
 T253t 
 
* 
 
 , f 
 
 Digitized by the Internet Archive 
 in 2016 with funding from 
 
 University of Illinois Urbana-Champaign Alternates 
 
 https://archive.org/details/lawpracticeofbanOOcoll 
 

THE 
 
 Upt 
 
 L 
 
 LAW AND PRACTICE 
 
 OF 
 
 BANKING 
 
 IN IRELAND, 
 
 WITH AN INTRODUCTORY 
 
 HISTORICAL SKETCH AND AN APPENDIX OF STATUTES, 
 
 CHARLES MacCARTHY COLLINS, 
 
 BARRISTER-AT-LAW. 
 
 DUBLIN : 
 
 JAMES CORNISH & SONS, 18, GRAFTON STREET; 
 London: 297, HIGH IiOLBORN, W.C. ; 
 
 Liverpool : 37, LORD STREET. 
 
 1880, 
 
Dublin : 
 
 Printed at The Abbey Printing Works, 
 
 97, MIDDLE ABBEY STREET. 
 

 332,1 
 
 T^S3£ 
 
 3 ^ 
 
 r— 
 
 INSCRIBED 
 
 TO MY FRIEND 
 
 ROBERT FARQUHARSON, 
 
 SUB-MANAGER 
 
 THE MUNSTER BANK, DUBLIN. 
 

PREFACE, 
 
 THE AIM of the accompanying Volume is to provide, in 
 an intelligible, concise, and inexpensive form, information of 
 which all Officials in Banks, and the Commercial Public 
 generally, should be possessed. 
 
 It has been acknowledged that a work of this description 
 was urgently required, 
 
 The Introductory Historical portion does not pretend 
 to be more than a sketch, and the entire work is chiefly a 
 compilation from authoritative sources not readily acces- 
 sible to bankers. Technicalities of expression have as far 
 as possible been avoided with the intent that the work 
 should commend itself even to the most junior official. 
 
 Much of the Practice of Banking is regulated by what may 
 be called unwritten laws. These are differently interpreted 
 by different minds; but in this matter the endeavour has 
 been made to set forth those views which are not only in 
 accord with the best opinions but in consonance with common 
 sense, 
 
 28, Brighton Square, 
 
 Dublin, 1880. 
 
CONTENTS 
 
 Introduction. 
 
 Page. 
 
 Chapter I. — The Earliest Records of Banking and 
 
 Coinage ... ... ... ... 9 
 
 „ II. — Early European Banks ... ... ... 24 
 
 „ III. — Early English Coinage ... ... ... 28 
 
 „ IV. — Early London Bankers ... ... ... 31 
 
 „ V. — The Bank of England ... ... ... 45 
 
 ,, VI. — English Private and Joint Stock Banks ... 52 
 
 ,, VII. — Banking in Scotland ... ... ... 54 
 
 „ VIII. — Early Irish Coinage ... ... ... 59 
 
 „ IX. — Banking in Ireland — Early Dublin 
 
 Bankers ... ... ... .. 63 
 
 ,, X.— Irish Joint Stock Banks ... ... ... 80 
 
 „ XI. — Conclusion ... ... ... ... 92 
 
 The Law and Practice of Banking in Ireland. 
 
 Chapter I. — The Relations Between the Banker and 
 
 His Customer ... ... ... 101 
 
 „ II. — Deposit Receipts ... ... ... ... 105 
 
 „ III. — Current Account — Cheques ... ... m 
 
 „ IV. — Crossed Cheques ... ... ... ... 127 
 
 „ V. — Presentation, Payment, and Dishonour of 
 
 Cheques ... ... ... ... 137 
 
 „ VI. — Pass Book — Overdrawn Current Account 
 
 — Right to Sue on Cheques ... 149 
 
 ,, VII. — Bills of Exchange and Promissory Notes 154 
 „ VIII. — Persons Incapacitated to be Parties to a 
 
 Bill of Exchange ... ... ... 168 
 
8 
 
 Contents. 
 
 Page. 
 
 Chap. IX. — ' The Stamp Duties ... ... ... 173 
 
 „ X. — The Transfer of Bills ... ... ... 184 
 
 „ XI.- — Presentation of Bills ... ... ... 187 
 
 „ XII. — Noting and Protesting — Notice of Dis- 
 honour ... ... ... ... 192 
 
 „ XIII. — Discount — -Bills for Collection — Foreign 
 
 Bills, &c. ... ... ... ... 199 
 
 „ XIV. — Bankers Drafts and Post Bills, &c. — Lien 
 
 — Confidential Reports, &c., &c. ... 205 
 
 ,, XV. — Securities Deposited Against Advances, 
 
 &c. ... ... ... ... ... 211 
 
 „ XVI.— Bank Notes— I. O. U. ... 216 
 
 „ XVII. — Shares and Shareholders ... ... ... 230 
 
 ,, XVIII. — Guaranties by Third Parties ... ... 239 
 
 „ XIX.— The Banking Act of 1879 — Conclusion ... 242 
 
 APPENDIX, 
 
 Appendix I. — Joint Stock Banks of Great Britain — 
 
 No. of Branches — Subscribed 
 Capital — Paid-up Capital and 
 Authorized Issue ... ... i. 
 
 II. — Statutes ... ... ... v. — lvi. 
 
CORRIGENDA. 
 
 Page 97. — 8th line from bottom, for allowed read admitted. 
 
 ,, 158. — 6th line from bottom, for collcUteriy read collaterally. 
 
 ,, 84. — Line 19. For “ The Capital was and is 1,000,000,” 
 
 read “ The Capital was ,£1,000,000, but was subsequently increased to 
 ,£2,000,000 — its present figure 
 
INTRODUCTION. 
 
 AN HISTORICAL SKETCH, 
 
 m • 
 
 I. 
 
 THE EARLIEST RECORDS OF BANKING AND COINAGE. 
 
 THE trade of Banking is one of immemorial antiquity, and 
 its origin is beyond the range of authentic history. It was the 
 natural and necessary outgrowth of the commerce which arose 
 from, and grew with, civilization. Commerce is no more than 
 an exchanging of commodities ; and exchange created the 
 necessity for standards of value that would be generally re- 
 cognised. These were found in the precious metals, which 
 combined value with facility of carriage and transit. The 
 system of Bills of Exchange grew out of the exigencies of trade. 
 When a commercial community was founded, the inevitable 
 conditions of society being that some members of it were rich 
 and others poor, a trade in money was necessarily established, 
 the richer lent to the poorer for interest — the poorer hired 
 money and paid a wage for the use of it; and thus arose 
 promises to pay and bonds. Commerce demanded a coinage, 
 and various countries having varying coinages, the trade of 
 money-changing was developed. It was requisite that a dealer 
 in money should have a safe and strong place to protect his 
 monies and securities from the predatory bands that flourished 
 with comparative impunity of old, when government was un- 
 settled and many held but a precarious tenure of wealth, land, 
 
 B 
 
Introduction . 
 
 10 
 
 r 
 
 and even life. To those strongly-built places, people brought 
 their gold and jewels and valuables, and deposited them for 
 better security, paying a fee for the safe custody. Thus 
 originated the system of deposits of money, which has so far 
 altered that the depositor is now paid for his deposit, instead 
 of paying for the privilege of depositing ; and from the custom 
 of depositing money grew the means of drawing it out ; hence 
 our modern Cheques and Banker’s Drafts. 
 
 But the trade of Banking in its various phases — not only in 
 a primitive fashion but even on a well developed system and 
 advanced principles — boasts of an extraordinary antiquity. 
 The Jews in the infancy of the nation were a pastoral and 
 not a commercial people, though during Christian centuries the 
 greatest and the least of them have been addicted notoriously 
 to money-trading. 
 
 The early Biblical references to “ pieces of silver” in Genesis, 
 do not, in the original, convey the idea of coins, but of weights 
 (shekels). The Mosaic “ oblation to God” was half a shekel, 
 and a shekel is explained by Josephus as equal to four Athenian 
 drachmae, or of a value of two shillings and three pence of 
 our money. A coinage with the Jews, as with the Egyptians 
 and Assyrians, was a late institution, preceded by the long- 
 retained custom of treating the metals like other merchandise, 
 exchangeable by weight. The first Jewish coinage under 
 authority was, it is believed, struck by Simon the Maccabee, 
 about the year 140 b.c. # 
 
 * “ The earliest known genuine Hebrew coin is a unique specimen in 
 copper, in the Cabinet du Roi, Paris, bearing on the obverse the sacred 
 seven-branched palm-tree, and the letters forming * ** Eliashib,” the name 
 of the high priest. This name furnishes no definite clue to the date, nor 
 
 does that of Eleasar, on another coin of the same archaic type. Under 
 the Seleticidae there is a copious sequence of Jewish coins, especially 
 
An Historical Sketch . 
 
 i i 
 
 But though there were no coins, nevertheless lending at inte- 
 rest, which seems — notwithstanding the agricultural and pastoral 
 life the nation led — to have been an instinct of the race, was 
 carried on to such a degree that it grew to be an evil, against 
 which Moses had to hurl Divine enactments. These were 
 to the effect that the Hebrew was not to “lay usury upon 
 the poor ; ” “ and if thy Brother become poor, thou shalt not 
 give him thy money upon usury, ” and so on — “ because it is 
 not just to make advantage of the misfortunes of one of 
 thy own countrymen : it is thy gain if thou obtainest their 
 gratitude.” # The trade of money-lending on usury was there- 
 fore recognised in the early Jewish community ; and though 
 it was forbidden to be practised on “ thy brothers who were 
 poor” — perhaps on the principle that Hawks shouldn’t “pike out 
 Hawks e’en” — nevertheless it was permitted against a stranger. 
 “Unto a foreigner ,” runs the Divine command, “thou mayest 
 lend upon usury;” and Jeremiah (445 b.c.) therefore rebukes 
 “ the nobles and the rulers because they exacted usury every 
 one from his brother.” But though the trade of money lend- 
 ing was general, and partly permitted by the Mosaic law, it seems 
 to have fallen into disrepute. David condemns it ; and Jeremiah 
 significantly says — “ I have neither lent on usury, nor have men 
 lent to me : yet every one of them doth curse me” From the 
 New Testament, however, it seems that transactions correspond- 
 ing to our deposits were usual and that interest was allowed on 
 
 of those bearing the name of Simon. Many pieces have figured 
 on their face the vessels and instruments of the sanctuary, the candle- 
 sticks, the trumpets, or the golden cup. The list here given closes 
 with the tiny copper coin weighing about 25 grains, which most probably 
 represents the widow’s mite ( lepton , Mark xii. 41). It bears on the face 
 an anchor, and on the reverse the Greek word chalkous .” — Condeds 
 Handbook to the Bible. 
 
 * Josephus, 
 
12 
 
 Introduction . 
 
 money deposited. In the parable of the Talents, in Matthew, 
 the “ wicked and slothful slave ” is denounced, his lord saying 
 to him, “thou oughtest therefore to have put my money to the 
 Bankers and at my coming I should have received my own with 
 usury,” (Mat. xxv., 26); and in Luke, “why then gavest not 
 thou' my silver into the bank that at my coming I might have 
 received it with usury/’ (Luke xix., 23). But beyond this we 
 have little certain knowledge regarding the money dealings of 
 the chosen people. 
 
 Coins were cast in China, so long ago, it is said, as the year 
 2250 b.c., — and Bank Notes, or what would correspond to 
 our Bank Notes, are said to have originated also there, about 
 120 b.c. But there can be little doubt that notes were issued 
 in China about 1000 a.d., first by a private person and soon 
 after by a duly constituted Joint Stock Bank of Issue. Paper 
 money, it is recorded, was in existence in the dominions of the 
 Mongol Prince, Mangu Khan, in the year 1252, and — accord- 
 ing to that unreliable historian Sir John Mandeville — the 
 Emperor of Tartary, in 1322, manufactured paper and leather 
 money to such an extent that gold and silver fell into disuse. 
 The inexpensiveness and the facility of manufacturing the 
 new circulating medium were such that it was issued profusely, 
 and the Emperor was enabled thereby to spend “ enow and 
 outrageously.” But, as was to be expected, this reckless and 
 unbounded circulation of an intrinsically worthless and irredeem- 
 able mock money, led to the evils naturally consequent on its 
 depreciation to such an extent that it was valueless. The 
 paper and leather money got into just discredit and disrepute, 
 and seems to have disappeared altogether, so that in 1668 a 
 traveller could not find even a “ recollection” of it. The issue 
 can scarcely be regarded in its late stages in any other light than 
 
An Historical Sketch . 
 
 13 
 
 the act of an autocrat to enable him to “ despende out- 
 rageously.” 
 
 The Chinese have, in Banking as in everything else, made 
 little or no progress for thousands of years. Though in 
 the world’s infancy they were more advanced in the arts and 
 sciences than the white races, their exclusiveness and conser- 
 vatism have been such, that the Chinese of to-day possess no 
 better system of Banking than their ancestors possessed cen- 
 turies ago — indeed their system at present seems to consist 
 solely of issuing Bills and redeeming them ; and the Japanese 
 are even still more backward and primitive in Banking and 
 Finance. 
 
 Abraham is said to have been lich in silver and gold ; 
 but as this statement refers to a period subsequent to his return 
 from Egypt, it has been surmised that he obtained his know- 
 ledge of the values of these metals from the Egyptians, but 
 strange to say, in Egypt, the cradle of civilization and com- 
 merce, there was no imperial coinage. Copper and silver and 
 gold were used to indicate values, but they were manufactured 
 into lumps, shaped sometimes like bricks, but in the case of gold 
 and silver generally in rings like the ancient Irish money of ten 
 centuries ago ; and they were valued by weight like any other 
 commodity of commercial merchandise. It appears, to use the 
 words of Sir John Lubbock, “ almost inconceivable that a people 
 who created the Sphinx and the Pyramids, the Temples of 
 Ipsamboul and Karnac should have been entirely ignorant of 
 coins. Yet it is certain from the statements of Herodotus and 
 the evidence from the monuments themselves that such was 
 really the case.” The first coinage of money in Egypt with 
 which we are acquainted was struck, not to assist the Egyptians 
 themselves in their commercial dealings, but rather because the 
 foreign merchants with whom they traded, the Greeks and 
 
14 
 
 Introduction . 
 
 Phoenicians, demanded some value-medium which would have 
 a guarantee of its value apparent on it, and would circulate for 
 that value ; and the satrap Aryandis yielded to the pressure, 
 and thus the honour is with him of having been the first who 
 “ struck” the precious metals into circulating authorised coin. 
 
 Turning to the great and ancient empires of Assyria and 
 Babylonia we find that though they, equally with the Egyp- 
 tians, adhered for ages to the primitive blocks of copper and 
 ingots of silver and gold, and did not evolve an imperial 
 coinage, nevertheless they were possessed of a system of 
 Banking unexpectedly complete and well-developed. Indeed, 
 their Banking practice was so complete, and affords such con- 
 clusive evidence of the high stage of commercial knowledge to 
 which they had attained, that while we wonder at their ad- 
 vancement we wonder also at the fact that their neighbours 
 were so backward and childish in their Banking. Before a 
 coinage was known, the great Banking House of Egibi & 
 Company flourished as State Bankers, it is said, for a period 
 of 150 years at least. Founded presumably in the reign of 
 Sennacherib, we trace it through five generations down to the 
 reign of Darius, and we are informed that it was the Great 
 National Bank of Babylon when Babylon was the greatest city 
 on the earth. From the clay tablets unearthed of late years in 
 and near Nineveh and Babylon we obtain an insight into the 
 social life of those wonderful peoples, and gather revelations 
 of an astonishing progress from the records of their financial 
 doings and commercial arrangements. The excavations in this 
 old world have given us the originals of many most interesting 
 documents — if that word can be permitted as applied to baked 
 tablets. We have contracts of sales of slaves; of sale and 
 transfer of lands with maps and plans attached. We have re- 
 cords of loans on lands, and on house property. We have evi- 
 
An Historical Sketch . 
 
 15 
 
 dences of loans of silver at fixed rates of interest on personal 
 guaranty. We have receipts and contracts of various kinds. 
 
 The people among whom, nearly 3,000 years ago, such 
 usages were common, must have been possessed of the highest 
 aptitude for commercial science, and a classification of the 
 Banking Instruments in vogue with them — for which we are 
 indebted to Mons. Le Normant, — reads rather as a description 
 of Banking extracted from a treatise written in the 19th century, 
 than a recital of the veritable contracts made and prepared by the 
 subjects of Sennacherib and of Darius the King. M. Le Nor- 
 mant thus classifies these contracts. — 1. Simple obligations. 2. 
 Obligations with a penal clause in case of default, (he quotes one 
 that had 79 days currency), 3. Obligations with a guarantee 
 of a third party. 4. Obligations payable to a third party. 5. 
 Drafts drawn upon one place and payable at another. — Of the 
 latter he quotes the following, which dates between 500 b.c. and 
 600 b.c. : — “ Four minas fifteen shekels of silver (credit) of 
 “Ardu-Nana son of Yakin, upon Mardukabalussur son of 
 “ Mardukbalatirib in the town of Orchoe. Mardukbalatirib will 
 “ pay in the month of tibil, four minas fifteen shekels of silver 
 “to Belabaliddin, son of Sennaidour, the 14 arakh-samma in 
 “the 2nd year of Nabonidus, King of Babylon.” This is a 
 perfect instrument. The date, the time of payment, the payee, 
 the amount, the drawer, and the drawee are specified, and 
 further, the parties are identified. These Drafts or Letters of 
 Credit were drawn on the fresh tablet, which was then baked, 
 and thus became enduring and negociable. Frequently the 
 payee’s designation was omitted, whereby they became as drafts 
 payable to bearer and freely transferable, for it is evident that 
 being hard and solid they could not be transferred by endorse- 
 ment. It is said that those Drafts must have been advised, 
 and this step being a precautionary device, seems to be a neces- 
 
i6 
 
 Introduction . 
 
 sary development. Thus it will be seen that in the time of 
 “Nabonidus, King of Babylon/’ and, extraordinary to contem- 
 plate, in a time when there was no such thing as current coin, 
 there were Letters of Credit, Letters of Guaranty, Mortgages, 
 and penal obligations.* 
 
 The following is a translation, by Mr. T. G. Pinches, of one 
 of the tablets which seems to be a bond for money advanced for 
 twelve months by a member of the house of Egibi & Son. 
 
 “1214 manas of silver from Iddin-Marduku son of Basa , 
 son of Nur-Sini , unto Itti-baladhi-Marduku and Nabu-musetig- 
 udda , sons of Ziri-ya , son of the priest of Gula . For a month, 
 to (the amount of) 1 maneh 1 shekel of silver it increases unto 
 them ; from the first day of the month Tebet the interest unto 
 them increases. (In) the month Tisri the silver and its interest 
 they give (back), their receipt they ask, and afterwards the bond 
 (?). (Agreed in) the dwelling of Iddin-Marduku , the owner (of 
 the money lent). Whoever, for the completion of the agree- 
 ment, unto Iddin-Marduku his silver and his interest will pay, 
 notice (?) the two (men) shall send up. Witnessing : Marduku- 
 irba , son of Basa , son of Sinu-niqi-magir. Gimillu , son of 
 
 Nabit-iddina , son of the priest of Gula. I tti-Nabibaluadu , 
 the scribe, son of Marduku-banai-suma , son of Belu-edheru. 
 Babylon, month Kislev, day 25th, year 1st [or nth] Kambyses, 
 King of Babylon ; in this day also Kyrus his father, King of 
 Countries.” 
 
 To the Lydians, the invention of coining gold and silver is 
 attributed, and the year 862 b.c. is fixed as the era of the in- 
 vention, and a poetic comment on the circumstance is found in 
 the fact that some 300 years after this period Croesus was King 
 of Lydia. But the coins of the period are not very elegant, 
 
 * A recent writer says, however, that these records are not of a commer- 
 cial character. 
 
An Historical Sketch . 
 
 1 7 
 
 and beyond the coinage we have no record of any operations 
 of a banking nature. 
 
 But in Greece — the most illustrious portion of the Western 
 world — Banking was undoubtedly carried on to a considerable 
 extent. Homer speaks of brass money (1184 b.c.), but the term 
 was applied to weights and not coins. The art of coining, inven- 
 ted by the neighbouring Lydians, was soon acquired by the 
 Greek and was perfected to such a degree, that the ancient 
 Greek coins far surpassed any modern coinage. The nation 
 who strove after the beautiful in all things, elevated beauty into 
 a religion, and made human beauty perfect in idealism, manu- 
 factured coins on which we see the most lovely faces and the 
 most perfect models of beauty in the entire range of art. 
 Gods and goddesses, kings and heroes, lions and horses, mice, 
 insects, and ears of wheat, in supreme excellence of de- 
 sign, all find places on the old Hellenic coins. The Greeks 
 developed rapidly also their system of banking ; they changed 
 foreign monies, they received money on deposit at interest ; they 
 granted loans. We learn this from Demosthenes, who himself 
 kept a banking account. The rate charged on loans is said to 
 have usually been 36 per cent., but this statement is doubtful. 
 
 Though those who engaged in the pursuit of Banking in 
 ancient Greece were generally of low origin, being freedmen or 
 aliens, yet they frequently rose to positions of great eminence, 
 and became wealthy members of the State. They therefore en- 
 joyed good credit and repute. One of the most eminent Bankers 
 in Ancient Greece was one Pasion, who, from being a manumit- 
 ted slave, became the greatest Banker of his time. Demosthenes 
 and contemporary orators frequently make mention of him ; we 
 even get a glance at his business. He is said to have had 
 ^2,681 in deposit from his customers; to have lent ^12,187 
 out at interest, and to have owned land worth ^4,875. If this 
 
i8 
 
 Introduction . 
 
 be so we are surprised at the statement that the business was 
 worth only ^400 sterling a year. The state was more than once 
 indebted to Pasion’s financial support, and he was a man of 
 undoubted integrity, well known and trusted throughout Greece, 
 and enjoying the friendship of the great. So eminent was his 
 reputation and so undoubted his credit that his son Apollodorus 
 boasted that he could obtain money wherever he pleased, 
 because he was the son of Pasion. 
 
 The Greek Bankers were called Trapezitae from Trapeza, 
 a table , (as the Roman were called Mensarii from mensa ) 
 because they conducted their business at tables in the public 
 streets and in the temples. The Greeks were acquainted with 
 letters of credit, and knew a method of endorsement, for one 
 Xceratus drew in Athens a bill on his father in Pontus, which 
 was guaranteed by Pasion the great Banker, and then bought 
 by Stratocles. They seem to have had an instrument corres- 
 ponding to our cheque, and the Athenian Bankers were the 
 inventors of discounts , i.e., of the system of deducting the in- 
 terest at the time of making the advance or loan. The Greek 
 Bankers also acted as public notaries and public drawers and 
 witnesses of contracts. Even bottomry bonds were used in their 
 commercial dealings. 
 
 The Greeks carried their Banking practices with them in their 
 conquests, and thus Banking in a matured fashion was introduced 
 into Rome. This is proved by the fact that all the expressions 
 bearing on finance used by the early Latin authors, are of 
 Greek extraction. In Rome, Servius Tullius stamped copper 
 pieces as early as about 550 b.c., with the image of a sheep 
 ( pecus ), and hence, the word pecunia , the Latin for money. 
 Brass money was in use previous to 269 b.c., when Fabius 
 Pictor coined silver; and gold was coined 206 b.c. The 
 devices on the coinage were the heads of deities or of those to 
 
An Historical Sketch . 
 
 19 
 
 whom divine honours were accorded. The first coin which bore 
 a representation of a human head was one of Lysimachus, which 
 bore a device of the head of Alexander the Great. But he is 
 represented with the ram’s horns, which was an indication of 
 his descent from Jupiter Ammon. But though exhibited in 
 his divine character, the circumstance is interesting, as marking 
 the transition from the pure worship of the gods to the com- 
 promising worship of the hero. Julius Caesar (48 b.c.) obtained 
 the permission of the Senate to impress his own portrait on the 
 coins. The practice has been perpetuated, and the coins of 
 nearly all countries are now adorned with a device of the 
 sovereign’s profile. 
 
 The first mention of Banking in Rome that we find, refers 
 to the year 352 b.c., when the Plebeians being in great distress, 
 the State appointed certain persons to lend them portions of the 
 public funds on security, and hence sprung an authorised and 
 recognized system of advances made by these Bankers, whose 
 functions were limited merely to lending. There were other 
 descriptions of Bankers which played an important part in the 
 social economy of Rome. Of these there were three principal 
 classes : — 
 
 (1.) The Negotiators.) whose chief business consisted in 
 lending money at high rates of interest to the inhabitants of the 
 neighbouring provinces, and as the laws regulating Banking did 
 not extend to the provinces, the Negociatores were enabled to ply 
 an extensive trade at fancy prices, and not being restrained by 
 any legal restrictions, they seem to have realized large profits. 
 Their system degenerated into usury and became such an evil 
 that at length a law was promulgated to curb their practices 
 — the Lex Sempronia De Fcenore . 
 
 (2.) The Argentarii. These were private Bankers, with 
 whom individuals kept their private accounts, and who 
 acted as disbursers of their clients’ monies. From Cicero we 
 
20 
 
 Introduction. 
 
 learn that their chief business lay in attending to the payments 
 due in Rome, on account of the citizens dwelling in the 
 country districts. They kept books of their customers' ac- 
 counts. The Argentarii introduced, if they did not invent, 
 perfect documents of the same nature as our cheques. These 
 were called prcescriptiones or at tribut tones , and were written 
 orders by the owners of the money to the holders of it to pay 
 certain amounts to specified persons. 
 
 (3.) The Mensarii. These were a class of Bankers called 
 into existence by the State and constituted the Bankers of 
 the Republic. They were created, Livy tells us, to counter- 
 act the usurious practices of the money-lenders and to abate 
 the evils caused thereby to the citizens. This class appears in 
 later years under the Empire to have merged into the Argentarii 
 —at least the two terms are frequently applied to the same 
 individual, for Suetonius speaks of one C. Octavius indis- 
 criminately as Argentarius and Mensarius. 
 
 Besides these there was another class, the Nummularii - — 
 but they can scarcely be regarded as Bankers. Their duties 
 lay in assaying and weighing monies, and they were recognized 
 by the State and appointed to test the fineness of the metal 
 and to estimate the current and the intrinsic values. Their 
 nearest approach to Banking was in their business of changing 
 the money thus estimated. 
 
 The important and prominent position occupied by the Roman 
 Bankers can be judged by the fact that numerous laws were 
 made regulating their practice, and by the frequent references 
 to them in the Latin authors. There is no doubt that as a 
 body they enjoyed a high reputation for honourable dealing in 
 their profession, but nevertheless they were frequently a mark 
 for uncomplimentary allusions in the comedies of the time. 
 Usury, which originally conveyed no more than a payment for 
 
An Historical Sketch . 21 
 
 the use of money, came to have an opprobrious meaning, 
 because the payment became extortionate, and the lenders ex- 
 tortioners. Nevertheless, outside the Roman Bankers we have 
 described, private individuals were money-lenders at oppressive 
 and ruinous rates, Pompey, Brutus — even Cato himself, perhaps 
 in sustainment of “ the dignity of man,” lent money at 50 per 
 cent, interest. And in one of his Satires, Horace speaks 
 of one Furfidius, who, wealthy in lands and in money put out at 
 interest, is afraid of having the character of a rake and spend- 
 thrift. Furfidius understood his business and saw the advantages 
 of discount . “ This fellow,” says Horace, “ deducts five per 
 
 “ cent, from the principal at the time of lending, and the more 
 “ desperate in his circumstances any one is, the more cruelly he 
 “ pinches him. He hunts out the names of young fellows just of 
 “ age.” And we are further told that Furfidius notwithstanding 
 his wealth lived meanly, and was no “ friend to himself.” The 
 rate he charged— five per cent. — was — if it means five per cent, 
 per annum, which is doubtful — remarkably moderate for those 
 days. Laws against usury were enacted in Rome, as in 
 England, and a legal rate of interest was fixed at 8^ per 
 cent. In the time of Cicero, the legal rate was fixed at 12 
 per cent, and in 528 a. d., the Emperor Justinian reduced it to 
 4 per cent, for loans to illustrious persons ; 6 per cent, for loans 
 for commercial purposes ; and 8 per cent, for loans which did 
 not come under either of these descriptions. One of the legal 
 provisions in regard to Bankers is interesting and perhaps equi- 
 table. When a Roman Banker stopped payment, those citizens 
 who had deposited money with him for safe custody alone, 
 ranked as preferential creditors, and were to be satisfied before 
 those who lodged money at interest. The law forbade lending 
 money to minors, i.e., persons under 25 years of age. 
 
 We have reason to gather that foreign letters of credit were 
 
22 
 
 Introduction . 
 
 also understood by the Romans, as from Cicero again we learn, 
 that when he was sending his son Marcus to Athens to study, 
 he made enquiries as to obtaining in Rome a letter of credit on 
 Athens, in preference to the alternative of Marcus taking money 
 on his person. The enquiry would hardly have been made 
 unless instruments of this nature were issued by the Bankers. 
 
 After the division of the Empire in a.d. 364, the city of 
 Rome was not the pleasantest or most profitable place for 
 Banking. In the 5th century it was thrice taken, pillaged, and 
 devastated, by Alaric, Genseric, and Odoacer. In the 6th, 
 Totila the Goth seized it. In 553 the Senate was abolished 
 and in 600 the great and ancient “ Eternal City” was at its very 
 lowest ebb. During the long middle ages, — or as they are more 
 appropriately called the “ dark ages,” — commerce, like the arts 
 and learning, was little attended to. Where commerce was mori- 
 bund there was little field for the development of Banking. 
 But money-lending and money-changing were ever necessary, 
 and the people who have a genius for money-trading — the Jews 
 —established businesses in many parts of Europe about 800 
 a.d. It was the Jews of Lombardy, or Lombard Jews who 
 thus distinguished themselves. Some of these merchants were 
 sent into England by Pope Gregory the IX., in 1229, to lend 
 money to the convent communities and private persons who 
 were unable to pay the tithes which in that year were rigorously 
 collected throughout the Kingdom. These emigrants settled 
 in that street in London, which to this day is named after them 
 (Lombard Street), and in which at present many Bankers have 
 their offices. The transactions of the Lombard Jews — who are 
 not to be confounded with the descendants of those Jews 
 brought over by William the Conqueror — seem to have been 
 conducted in the usual extortionate and usurious fashion, until 
 
An Historical Sketch . 
 
 23 
 
 at length their trade became so pernicious and mischievous, 
 that in Queen Elizabeth's time they were expelled the Kingdom. 
 
 But though during the dark ages commerce was generally in 
 a very feeble and exhausted condition, nevertheless, Tuscany 
 stands out bright in its pre-eminence in learning, and also in 
 mercantile trading ; and Florence became the centre of the 
 money transactions of the commercial world, and great success 
 attended its commercial enterprises. Here Guilds were estab- 
 lished in the 13th century, and so rapidly had the city pro- 
 gressed, that at one time it is said that eighty Bankers flourished 
 and throve in Florence. About the year 1430, an association 
 formed of seventy-six Bankers, lent 4,865,000 gold Florins to 
 the State. But these were still private Bankers, and though 
 public Banks existed before this period, there was no State 
 Bank in Florence.* 
 
 * Macaulay in writing of the State of Florence in the early part of the 
 14th century, says: — “Four hundred thousand Florins were annually 
 “coined. Eighty Banks conducted the commercial operations, not of 
 “ Florence only, but of all Europe. The transactions of these establish- 
 “ ments were sometimes of a magnitude which may surprise even the 
 “contemporaries of the Barings and the Rothschilds. Two houses ad- 
 vanced to Edward the III. of England upwards of three hundred 
 “ thousand marks, at a time when a mark contained more silver than fifty 
 “ shillings at the present day, and when the value of silver was more than 
 “ quadruple what it now is.” — Essay on Machiavelli . 
 
Introdiiction . 
 
 24 
 
 II. 
 
 EARL Y EUR ORE AN BA NETS. 
 
 THE earliest public Bank in modern Europe was the Bank 
 of Venice, the formation and establishment of which, is said 
 to have taken place in 1157. It originated as subsequent 
 national Banks did, in a device of the State to extricate itself 
 from its financial difficulties. Owing to foreign wars and con- 
 quests, the State was in an impecunious condition and it sought 
 relief from its straits in the creation of a Public Loan. It forced 
 the citizens to lend their money, promising them interest 
 at the rate of 4 per cent. This Relief Loan Fund so 
 far, can scarcely be considered a Bank, though to the 
 Venetian State belongs the honour of having created the insti- 
 tution of a permanent National Debt on the funding system. 
 The stock thus forced on the citizens was transferable, and a 
 body of commissioners was appointed to manage the debt— to 
 attend to the payment of the interest and to the transfer of the 
 slock. But the Bank of Venice for centuries seems to have been 
 little more than a body constituted to manage the public debt, 
 for undoubtedly it did not engage in Banking business. It was 
 an authorised mart for the exchange of foreign and clipped and 
 worn coins, which, being assayed, were purchased and paid for 
 in promissory notes payable to bearer. And as these notes 
 were redeemable and not liable to depreciation, they were in 
 high esteem and bore a premium as compared with the current 
 money. The Bank of Venice does not appear to have engaged 
 in discounts, and it was not till 1587 that it received money on 
 deposit, — but, even then, the nature of the deposit was simply 
 
An Historical Sketch . 
 
 25 
 
 safe custody ; the Bank in fact was only a bailee, a money 
 changer, and the manager of the public debt, and cannot be 
 considered to have been a true Bank. The Bank of Venice 
 continued to exist until the fall of the Republic in 1797. 
 
 The Bank of Geneva was founded in 1345, but its 
 functions were so restricted that it, neither, can be regarded as 
 a Bank as we understand the expression. 
 
 The earliest public National Bank in the modem sense of the 
 term, was the Bank of Barcelona, founded in the year 1401. 
 For some fifty years previous to this date the cloth merchants 
 of Barcelona, then a wealthy community, engaged in Banking, 
 and in 1401 their business as Bankers was consolidated by the 
 Spanish Magistrates into a public Bank under the auspices of 
 the Government. Its liabilities to the public were secured by 
 the city property, which was held in pledge on behalf of the 
 Depositors. The Bank of Barcelona discounted Bills and 
 allowed interest on Deposits, but it did not issue notes, nor 
 does it appear to have been acquainted with cheques. 
 
 The Bank of Genoa, or as it was called the Bank of St. 
 George, though its constitution was devised in 1345, was not 
 established till 1407. Its operations for a couple of centuries can- 
 not be characterized as Banking, for they were similar to those 
 of the Bank of Venice, and like it, originated in the pecuniary 
 exigencies of the State. The Republic borrowed from the 
 citizens, consolidated the debt, and appointed eight “ pro- 
 tectors,” chosen annually by the stockholders, to manage it. 
 However, in 1675, F appears to have extended its operations 
 and engaged in genuine Banking business. The Bank was 
 pillaged by the Austrians when the city was taken by them in 
 1746, and in 1750 it closed its doors finally. 
 
 The Bank of Amsterdam was founded in 1609 
 with the principal object of remedying the disadvantage and 
 
26 
 
 Introduction . 
 
 inexpedience arising from the circulation of the clipped foreign 
 coins which circulated amongst the merchants. Its busi- 
 ness was to purchase all worn and clipped gold and silver 
 coins at their bullion value, and to give credit to the selling 
 party for such value. On these transactions it charged a small 
 commission, and the gold and silver purchased was re-coined. 
 There was a State enactment, aimed at the evil of the de- 
 fective coins, to the effect that all debts of 600 guilders (which 
 was afterwards reduced to 300, equal to 25 guineas) should be 
 paid in the money coined and issued by the Bank. At this 
 period Amsterdam was a great commercial centre ; the Ex- 
 change there was built in 1634. The Bank received monies on 
 Deposit, and declared that it had bullion in its coffers equival- 
 ent to the amount of deposits, as it avowedly lent no money 
 and discounted no bills. But if these were its principles in the 
 earlier days of the Bank, there was a departure later on, for 
 when Amsterdam opened its gates to the French in 1795, it 
 was ascertained that the Bank had lent a sum equivalent to one 
 million sterling to the States of Friesland and Holland, and 
 this discovery dissipated confidence, and wrought the ruin of 
 the Bank of Amsterdam. About twenty years later, in 1814, 
 the Bank of the Netherlands was established to fill the 
 void. 
 
 The Bank of Hamburg was established in 1619, on the 
 same basis as the Bank of Amsterdam, and it is still in 
 existence. The other Banking establishments on the conti- 
 nent, worthy to be classed with the National Banks, were the 
 Bank of Rotterdam, founded in 1635; the Bank of 
 Stockholm, which, according to Hume and other authorities, 
 was the first that invented Bank Notes in Europe, founded 
 in 1688; the Bank of Copenhagen, in 1736; the Bank 
 of Berlin, in 1765; the Caisse D’Escompte (France), 
 
An Historical Sketch . 
 
 2 7 
 
 in 1776 ; the Bank of St. Petersburgh, in 1786 ; and the 
 Bank of France, which was instituted in 1803, by laws 
 which were approved in 1808, and which, as Napoleon said, 
 was established with the object of providing money at all 
 times at 4 per cent, interest. Since the Joint Stock principle 
 has become understood on the continent, many other Banks 
 have been established under it, which have met with varying 
 
 success. 
 
28 
 
 Introduction . 
 
 III. 
 
 EARLY ENGLISH COINAGE . 
 
 AMONGST the Ancient Britons, as amongst all primitive 
 nations, metals were used as values, the values being de- 
 termined by weight, and we learn from a passage in Caesar, 
 that iron in the form of bars was used as money in England 
 b . c . 55. Long previous to this period, however, there appears to 
 have been a coinage in Britain, which is said to have originated 
 about the year 200 b . c ., in Kent, and to have spread thence, 
 as far as Devonshire on the one hand, and Oxford on the 
 other. At the time of the Roman invasion the Britons had 
 in use silver and brass coins, shaped oblong, square and round. 
 Some of these coins are lettered, one series bearing the letters 
 CVN, which is taken as being intended for Cunobelinus— the 
 Cymbeline of Shakespere — who was King of Britain in the 
 year 4, a.d. Some of the coins of this period, seem to be 
 copies of the staters of Philip of Macedon, having the chariot 
 and horses on one side, and the head of Apollo on the other. 
 But rude and unintelligible as the majority of the early British 
 coins are, we hnd nevertheless, that the race was sufficiently 
 advanced to have acquired the art of manufacturing spurious 
 money. Forgery was a profession amongst the semi-civilized 
 inhabitants, and base metal coins plated with silver, and even 
 with gold, have been found. A coinage in tin was struck but 
 immediately relinquished for obvious reasons, though it was 
 re-introduced for a moment by Charles II. The Romans 
 established a Mint at Camulodunum — now Colchester. 
 Athelstan enacted regulations for the Government of the 
 
An Historical Sketch . 
 
 29 
 
 Mint and the coinage in 928. In the Anglo-Saxon and early 
 Anglo-Norman Mints the coins were devised and made by the 
 “ moneyers,” who were officers of the Mint, and who were 
 supervized by an authority called the u reeve.” After the con- 
 quest, the Royal Mint in London was placed under the 
 jurisdiction of the Court of Exchequer, and the officers and 
 master were sworn in to their offices before the Barons of that 
 Court. Henry I. established a Mint at Winchester, in 1125. 
 But at this period, besides the Royal Mint, there were several 
 other coin manufactories. The Barons and Bishops coined 
 money in Stephen’s time, and the privilege of issuing coins 
 was sometimes accorded to the higher monasteries. In King 
 John’s reign there was an episcopal Mint in Chichester. In 
 Henry II. ’s reign the moneyers were exempted from taxes, 
 and various concessions were made to them by subsequent 
 monarchs. Coin was made sterling in 1216, and before this 
 time, as Stow informs us, rents were mostly paid in kind, and 
 money was only to be found in the coffers of the Barons ; and 
 he further says that the Royal Mint w r as kept at this time by 
 Italians, as the English were ignorant of the art of coining. 
 
 The first English gold coins on reliable record were 
 struck by Henry III. in 1257, and the first entry of gold 
 being brought to the Mint for coinage is under the date T343 
 (Edward III). Under the same reign gold Florins, six shilling 
 pieces, nobles, and half- and quarter-nobles were introduced. 
 The noble was value for six and eight pence, and it was this 
 coin that fixed the lawyer’s fee, which is still unchanged. The 
 coinage was reformed by Edward VI. (1547-53), and Elizabeth 
 caused all the base coin which was in circulation to be called in 
 and genuine money issued. Under the Stuarts, clipping was a 
 general practice, and debased spurious money was largely 
 circulated, all of which was called in by William III., and the 
 
30 
 
 Introduction . 
 
 expenses of a new coinage (;£i, 200,000) were raised by a 
 house duty. English and Irish money was assimilated in 1826. 
 Sovereigns were first coined by the Mint in 1489 ; shillings in 
 1504; crowns and half-crowns in 1553 ; one guinea, two guinea, 
 and five guinea pieces in 1664; quarter guinea, in 1716; gold 
 seven shilling pieces in 1797 ; silver florins in 1849 5 fourpenny 
 pieces in 1836; and threepennies in 1861. The first large copper 
 coinage was made in 1640 to supersede the private leaden tokens 
 in circulation. The amount of current coin of the realm was, 
 in 1711, valued at ^12,000,000, and in 1853 at ^60,000,000. 
 From the year 1840 to 1878 inclusive, the respective amounts 
 of gold, silver and copper coined at the English Royal Mint 
 were:— Gold, ^£181,453,645; silver, ^15,216,770; and cop- 
 per, ^1,630,886; making a total of ^198,301,301, or an 
 annual average of ,£5,084,648. 
 
An Historical Sketch. 
 
 3i 
 
 IV. 
 
 EARL Y LONDON BANNERS . 
 
 FOR the early history of Banking in London, we are largely 
 indebted to the valuable researches of Mr Hilton Price, whose 
 most interesting work on the subject, the “ Handbook of 
 London Bankers,” has been our authority for many of the fob 
 lowing particulars. Mr. Price finds the precursor of the gold- 
 smiths, who developed into Bankers, in one Otto, a Goldsmith, 
 who is quoted in Doomsday Book as holding lands in Essex 
 and Suffolk, and whose lineal descendants continued in the 
 trade for over a century. In the reign of Henry I., Leofstan 
 was at the head of the profession, and a namesake and pre- 
 sumably a descendant, was a Goldsmith and Mayor of London 
 for twenty-four years, from 1189 to 1213, from which it may be 
 premised that the trade of Goldsmith was an honourable and 
 enriching pursuit. But these and their successors were not 
 Bankers in any sense of the word. The Bankers of the period 
 were Jews, descendants of those brought over by William the 
 Norman. These were not money changers only : they intro- 
 duced Bills of Exchange and lent out, at the customary usury, 
 large sums to the nobility on the security of landed estates. They 
 accumulated immense wealth by their conscientious adherence 
 to the law of Moses, to “ take usury from the stranger.” Their 
 wealth, real and reputed, made them conspicuous objects of 
 persecution. Every Sovereign ill-treated, imprisoned and 
 robbed them. They were massacred wholesale on the coron- 
 ation day of Richard I., at the instigation of the priests ; their 
 eyes were torn out and their teeth drawn, and they were cruelly 
 
32 
 
 Introduction . 
 
 butchered by King John — all in order to extract their treasures 
 from them. 
 
 But they were supreme extortioners. Stow tells us of a 
 Jew who had lent a Christian twenty shillings, and because 
 he enforced the payment of a higher interest than 2s. a week 
 thereupon — a modest 400 per cent. — he and seven hundred of 
 his race were slain in London. A Jew was disqualified from 
 enjoying a freehold, and every Jew who was a money-lender 
 at interest was compelled to wear a plate on his breast 
 announcing that he was a usurer ; and failing compliance 
 with this regulation he was to quit the Kingdom. The 
 
 Jews settled in Oxford and extorted 45 per cent, from 
 the students in the colleges, till their trade was repressed 
 by the King (Henry III) In 1278, two hundred and 
 sixty-seven Jews were hanged and quartered, having been ac- 
 cused of clipping the coin, and the persecution culminated in 
 the year 1290, when Edward I. robbed them of all their hoard- 
 ings, and banished them, to the number of 16,511 persons, out 
 of the Kingdom. The Lombards, who had been sent over by 
 Pope Gregory IX. some fifty years previously, then became 
 the only Bankers in England. They combined the three 
 lucrative trades of Banker, Pawnbroker, * and Goldsmith, 
 and they settled in Lombard Street. But they do not seem 
 to have been regarded with much favour, and in the reign of 
 Elizabeth their practices had become so detestable and perni- 
 cious that they were also banished the Kingdom. 
 
 The trade of Goldsmith gradually increased in importance 
 and respectability, so much so that Henry VIII. conde- 
 
 * Their sign was the Three Golden Balls, which is still used by modern 
 pawnbrokers. Our word “ lumber” is derived from their name. The 
 room where they kept the goods pledged or pawned with them was known 
 as the “ Lombard Room” — corrupted into lumber room. 
 
An Historical Sketch. 
 
 33 
 
 scended to borrow ^300 from Robert Amades — a remark- 
 ably constitutional course for Henry VIII. to pursue under 
 the circumstances. In Elizabeth’s reign there were 107 en- 
 rolled Goldsmiths, of whom 76 resided in “ the Chepe,” and 31 
 in “ Lumberde Street,” but these seem to have been no more 
 than dealers in bullion and money changers, traders whom we 
 would now term jewellers — and not to have any claim to be con- 
 sidered Bankers. They used to deposit their superfluous cash 
 and bullion in the Tower for safety, until the saintly Charles I. 
 in a moment of need, seized what was lying there, to the 
 amount of ^200,000, and having thus robbed them, com- 
 manded them by his Royal authority to consider him their 
 debtor. The creditors were, however, ultimately paid, but 
 they trusted the King no longer, and kept their cash in their 
 own houses. 
 
 Under Cromwell, Banking considerably developed. In 
 fact, Banking in England, as we regard the term, may be said 
 to have commenced under the Protectorate. Then the 
 system of deposits of money with the Goldsmiths arose, and for 
 those deposits, receipts, or “ cash notes,” which were also called 
 “ Goldsmith’s notes,” were issued. These were payable on de- 
 mand, bore interest, and were transferable. A London Gold- 
 smith-Banker, Mr. Samuel Lamb, recommended Cromwell, in 
 1656, to establish a national public Bank, and repeated his 
 recommendation in 1658, but his advice was not acted on. 
 
 Noblemen, country gentlemen, and merchants learned to 
 deposit their money with these Goldsmiths, and it was received 
 either payable at call or after a certain notice given. There 
 was no fixed rate of interest allowed, the interest being ruled 
 by the length of the period for which it would remain deposited, 
 and the rate and period were a matter of agreement between 
 banker and customer. The practice arose of the depositor draw 
 
34 
 
 Introduction. 
 
 ing portion of his money by a written order on demand and the 
 making of such orders constituted the account a “ running 
 account,” or, as we now term it, a current account, and the 
 orders were the forerunners of our cheques. Then it became a 
 recognised business of the Goldsmiths to lend out on security at 
 interest— usually at a high rate — the sums so deposited ; and 
 though the security was sometimes of a nature which made the 
 Goldsmith no more than a Pawnbroker, nevertheless, the 
 pawnbroking instances are the exception.* 
 
 Perhaps it was the unsettled state of the country and the 
 fact that the securites were rather unsatisfactory (as the tenure 
 of land was so unsteady during these periods of civil commo- 
 tion), or perhaps it was owing to Royal pressure to hold the 
 funds available for Royal use, but it seems that the profitable 
 private discounting by the Goldsmith-Bankers was curtailed. 
 For we find in Charles the Second's reign that they were in the 
 habit of making advances to the Exchequer, at such a low rate 
 as 5, or perhaps 6, per cent. Charles lived in a chronic state 
 of impecuniosity, and in 1671, the pressure for money for the 
 Royal pocket was peremptory. He hesitated to apply to the 
 faithful Commons, fearing that a further demand might be as a 
 last straw and break their patience and forbearance. So he 
 counselled with his ministers as to the best means of obtaining 
 one million and a-half sterling, without the humiliation of again 
 applying to Parliament, promising the Lord Treasurership — a 
 post of much honour and emolument — to the successful inventor 
 of a feasible scheme. At the time the Goldsmiths had money 
 deposited in the Exchequer to the amount of ^1,328,526, on 
 which they received some 5 or 6 per cent, interest, and the 
 
 * For a very interesting account of the doings. of money-lenders in Lon- 
 don at this period, see an article on “ Usurers of the Seventeenth Century,” 
 in Disraeli's Curiosities of Literature, 
 
An Historical Sketch . 
 
 35 
 
 device which was to supply the King’s needs was, plainly, to rob 
 the Exchequer of this amount. The scheme was the invention of 
 Lord Ashley, but alter tnlit honorem. He unguardedly confided 
 his patent plan to Sir Thomas Clifford, who unfolded it to the 
 King, who approved of it readily. “ Odd’s fish” he said, “ I will 
 be as good as my word to thee,” And accordingly the Ex- 
 chequer was closed, and payments out of it were suspended by 
 the Royal authority on the 2nd January 1672. Nearly all the 
 Bankers were beggared, their customers were ruined, and Sir 
 Thomas Clifford obtained a peerage and his Lord High 
 Treasurership. The following are the names of the Bankers 
 thus plundered and the amounts they lost : — 
 
 Banker-Goldsmiths 
 
 PLUNDERED BY CHARLES 
 
 ; II. 
 
 Sir Robert Vyner ... 
 
 ... ^416,724 
 
 13 
 
 
 Edmund Backwell ... 
 
 295,994 
 
 l6 
 
 6 
 
 Gilbert Whitehall ... 
 
 ... 248,866 
 
 3 
 
 5 
 
 Joseph Horneby ... 
 
 22,548 
 
 5 
 
 6 
 
 George Snell 
 
 ... 10,894 
 
 14 
 
 5 
 
 Bernard Turner 
 
 16,275 
 
 9 
 
 8 
 
 Jeremiah Snow 
 
 59,780 
 
 18 
 
 8 
 
 John Colville 
 
 85,832 
 
 17 
 
 2 
 
 Robert Welstead . . . 
 
 11,307 
 
 12 
 
 1 
 
 Thomas Rowe 
 
 17,615 
 
 i 7 
 
 8 
 
 John Portman 
 
 76,760 
 
 18 
 
 2 
 
 John Collier 
 
 1,784 
 
 6 
 
 4 
 
 Others ... 
 
 64,139 
 
 7 
 
 3 X 
 
 Total ;£i> 3 28 > 5 26 0 0 
 
 The King said he intended to re-open the Exchequer in a 
 year, but it was not re-opened, and no payment of principal or 
 interest was made to the Bankers, However, in 1677 , a Royal 
 
36 
 
 Introduction . 
 
 Covenant was made by letters patent to pay interest at the rate 
 of 6 per cent, to them, which covenant was fulfilled up to 1683, 
 when it ceased. 
 
 An Act was passed in 1699, reducing the aggregate claim of 
 the Bankers to ^664, 263, i.e., half the debt, and charging the 
 hereditary revenue of excise with interest at the rate of 3 per 
 cent, after 25th December, 1705. This Act was the outcome 
 of a suit against the Crown, wherein a verdict was given in 
 favour of the Bankers and against the Crown, but which verdict 
 was reversed by the Lord Chancellor Somers. 
 
 Sir Robert Vyner (or Viner) who heads the foregoing list, 
 has found a place in history. He was the son of a Goldsmith, 
 Sir Thomas Vyner, who was Lord Mayor of London in 1654, 
 was knighted by Cromwell and created a Baronet by King 
 Charles. He had his shop in Lombard Street, on the site of the 
 present Post Office. To Sir Thomas Viner, Robert Viner and 
 Daniel Bellingham, Esquires, Goldsmiths, King Charles in 1662 
 granted a patent for 2 1 years, to coin silver money for Ireland, 
 from a halfpenny to a fourpenny. This Daniel Bellingham 
 (who was afterwards created a Baronet, and was the ancestor of 
 the Castle Bellingham family), was the first Chief Magistrate of 
 Dublin who was honoured with the title of Lord Mayor. Sir 
 Robert, the son of Sir Thomas Vyner, was at the head of his pro- 
 fession ; he made the Crown for Charles II. at a cost of 
 ^2 1,000. Like his father, he was Lord Mayor, and the fol- 
 lowing well-known story related by Grammont, of an in- 
 cident of the banquet given by him to Charles, at the 
 Guildhall, has immortalized him. “ Sir Robert was a very 
 loyal man, and if you will allow the expression, very fond 
 of his Sovereign ; but what with the joy he felt at heart 
 for the honour done him by his Prince, and the warmth 
 he was in with continual toasting healths to the Royal 
 
An Historical Sketch . 
 
 37 
 
 Family, his Lordship grew a little too fond of his Majesty, and 
 entered into a familiarity, not altogether graceful in so public 
 a place. The King understood very well how to extricate him- 
 self in all such difficulties, and, with a hint to the company to 
 avoid ceremony, stole off and made towards his coach which 
 stood ready for him in Guildhall yard. But the Mayor liked 
 his company so well, and was grown so intimate, that he pursued 
 him hastily, and catching him fast by the hand, cried out, with 
 a vehement oath and accent, ‘ Sire, you shall stay and take 
 t’other bottle !’ 
 
 “ The airy monarch looked kindly at him over his shoulder, 
 and with a smile and a graceful air, repeated this line of the 
 old song— 
 
 ‘ He that’s drunk is as great as a King,’ 
 
 and immediately returned back and complied with his host’s 
 invitation.” 
 
 Pepys kept his account at Vyner’s, and from the Diary we 
 learn that Vyner allowed interest at the rate of 7 per cent., for 
 Pepys left “ clear in his hands to call for when I pleased,” two 
 thousand pounds, and he received at the end of three months 
 interest amounting to ^35. 
 
 Edward Backwell was an Alderman of the city, and had 
 carried on his business for some years at the Sign of the 
 Unicorn in Lombard Street. Mr. Hilton Price identifies the 
 locality as the present No. 69 in the Street, and informs us, from 
 an inspection of the Alderman’s books that the rates charged 
 varied between 2^ and 10 per cent., but that it was usually 6 per 
 cent. With Backwell Royalty banked. The King, the Queen’s 
 mother, the Duke of York, the Duke of Monmouth, the Countess 
 of Castlemaine and many of the nobility, kept their accounts 
 with him. In 1665, the rates of interest allowed by him were : 
 
38 
 
 Introduction . 
 
 at call, 3^ per cent. ; at io days’ notice, 4 per cent. ; at 14 
 days’ notice, 5 per cent. ; at 20 days’ notice, 6 per cent. In 
 the following year he raised his rates by 1 per cent. He is 
 described by Granger as “ a banker of great ability, industry, 
 integrity, and very extensive credit. With such qualifications 
 he, in a trading nation, would, in the natural event of things, 
 have made a fortune, except in the days of Charles II., when 
 the laws were overborne by perfidy, violence, and rapacity.” 
 Backwell was a Jeweller and Silversmith as well as Banker. He 
 manufactured Prince Rupert’s plate, which “ with fashion and 
 engraving” cost ^960 3s. 9d., and he made silver candlesticks 
 for Pepys. 
 
 Of Gilbert Whitehall we know little or nothing. 
 
 Joseph Horneby kept his place of business at the Sign of 
 the Star, in Lombard Street, and notwithstanding his heavy loss, 
 continued his establishment. 
 
 George SnelFs house was at the Sign of the Fox, in Lorm 
 bard Street, and Bernard Turner’s, at the Sign of the Fleece, 
 in the same street. 
 
 Jeremiah Snow was at the Golden Anchor in the Strand at 
 the time of the Royal robbery, but pieviously during the Com- 
 monwealth, he had lived in Lombard Street. The closing of 
 the Exchequer was not his first misfortune apparently. In the 
 London Gazette of 28th February, 1666, there is the following 
 curious advertisement : — “ Whereas, Jeremiah Snow, late of 
 Lumbard Street, Goldsmith, now living in Broad Street, did owe 
 divers persons, Anno 1652, eight thousand three hundred pounds 
 in full, and gave him discharges absolute, (which was occasioned 
 by the failing of two French merchants, who were, at the time, 
 indebted to him three thousand four hundred pounds, but never 
 paid him a fifth part, as by the Testimonials remaining with the 
 Publick notary it may appear), since which time it hath pleased 
 
An Historical Sketch . 
 
 39 
 
 God to bless his endeavours with some small Estate ; he, there- 
 fore, in gratitude and justice, invites them to receive the full 
 remainder of their principal money, excepting such as by his 
 Oath he shall affirm to have paid in part or in whole. And he 
 declares this Publication is not for vain glory, (retribution in this 
 kind being indispensable) nor to get more credit, but because 
 his friends have adjudged it conveniently necessary that his vin- 
 dication might be as Publick, as then was the Scandal.” 
 
 He surely deserved a better fate than that with which 
 Charles visited him. It is worthy of observation that this high 
 spirit of probity and integrity did not continue to his suc- 
 cessors. The bank founded by the upright Jeremiah Snow, 
 became in the progress of a century, the Bank of Strahan, 
 Paul and Bates, the notorious collapse of which, in 1856, 
 and the prosecution of Sir John Dean Paul and the other 
 partners, have not faded from the memory of the present 
 generation. 
 
 John Colville, or John Lyndsay, as we have seen the name 
 in some returns — (owing to the fact that Colville’s widow married 
 John Lyndsay) — was in Lombard Street also. He was also a 
 Silversmith, for Pepys got “ a dozen silver salts” from him, and 
 it is further recorded in the Diary, that his wife “ is indeed one 
 of the prettiest, modest black women that I ever saw ;” — and 
 Pepys saw many. 
 
 Of Robert Welstead, or Wealstead, we find no particulars. 
 
 Thomas Rowe was at the “ George,” in Lombard Street. 
 
 Of Portman and Collier, we have no information. 
 
 Remembering how the foregoing houses were plundered, we 
 are not surprised that none of them or their successors are to be 
 found amongst the London private Bankers of to-day. But 
 some of the existing Bankers were founded anterior to the Royal 
 
40 
 
 Introduction . 
 
 robbery. The present Banking House of Child and Co., 
 Fleet Street, had its origin in the Goldsmith’s establishment of 
 John Wheeler in “ Chepe” whose name is in the books of the 
 Goldsmiths’ Company, under the year 1559. His son John 
 moved to Fleet Street, and when he died in 1660 the business 
 was continued by William Wheeler and his son William at the 
 Sign of the “ Marygolde.” Thence it passed into the hands of 
 their apprentices, Blanchard & Child. Child became Sir Francis 
 Child — relinquished the Goldsmith’s business, became a true 
 Banker and “ the Father of the Profession,” and his descendants 
 own the Bank at present. The offices were for generations 
 beside and over Temple Bar, until its removal in 1877. The 
 earlier device of the marigold on the cheque-forms of Messrs. 
 Child, was succeeded by a view of Temple Bar, and now Temple 
 Bar like the marigold is amongst the things of the past. 
 
 Again, the existing Bank of Messrs. Goslings and Sharpe, 
 boasts a respectable antiquity. As early as the year 1650 
 Henry Pinckney was a Goldsmith in Fleet Street, at the Sign of 
 the Three Squirrels. He is described as “Major” Pinckney in a 
 conveyance of 1667, when his property was being marked out in 
 that year, after his house had been burned down in the great fire 
 of 1 666. Pinckney’s business was subsequently, in r693, carried 
 on by a Mr. Chambers, and about the year 1745 it passed into 
 the hands of Messrs. Gosling, who still conduct it, and on whose 
 cheques is still retained the device of the Three Squirrels. 
 Pinckney or Pinkney was an acquaintance of Pepys, for on the 
 1st December, 1660, Pepys called upon him and “ he took us 
 to the taverne and gave us a pint of wine. 1 ’ 
 
 The present Bank of Messrs. Hoare is unique in one 
 respect — the business is to-day carried on by the lineal male 
 descendants of James Hoare, or Hore, who in the year 1677. 
 kept “ running cashes” at the “ Golden Bottle” in Cheapside. 
 
An Historical Sketch . 
 
 4i 
 
 This Hoare was an eminent person ; he was Comptroller of the 
 Mint in 1661, Clerk of the Coins in 1665, and subsequently 
 Warden of the Mint. About 1690 he removed from Cheapside 
 to Fleet Street, where, ever since, the Bank has been conducted. 
 The early sign of the house is still retained on the cheques, and 
 in one place we read that it is a leathern bottle and not a golden 
 one, and that the meaning implied by a leathern bottle is 
 “ that it is not easily broken.” 
 
 The Bank of Messrs. Martin and Co. was originally that 
 of Charles Duncombe and Richard Kent, at the sign of the 
 Grasshopper (a device of which still adorns their cheques) in 
 Lombard Street. Kent had been established before Charles 
 plundered the Exchequer and Duncombe was an apprentice of 
 BackwelPs, and when the latter was ruined entered into partner- 
 ship with Kent, and carried a good many of BackwelPs custo- 
 mers to the new firm. The House evidently had a most suc- 
 cessful career. From Evelyn’s Diary we learn that in 1696 
 Duncombe, who a short time before had been but “a mean 
 goldsmith,” had recently purchased, for ^90,000, the Duke of 
 Buckingham’s estate of Helmsley, in Yorkshire. The present 
 Earl of Feversham and Viscount Helmsley is his descendant, 
 and the estate is now called Duncombe Park. When Dun- 
 combe relinquished the banking business it was carried on by 
 Richard Smyth, from whom it passed to Messrs. Stone and 
 Martin, and eventually to Messrs. Martin and Co. It is 
 claimed for this Bank that it actually originated with Sir 
 Richard Gresham, the “ King’s Exchanger” in the reign of 
 Henry VIII., whose son was the celebrated Sir Thomas 
 Gresham, of Elizabeth’s reign, and who undoubtedly carried on 
 his business of Goldsmith at the Grasshopper, in Lombard 
 Street, where Messrs. Martin are now located. 
 
 Messrs. Barnetts, Hoares, and Co., are the successors of 
 
 D 
 
42 
 
 Introduction . 
 
 Mr. Stokes or Stocks, who was Pepys’ “ own little Goldsmith,” 
 and who moved from Paternoster Row to the Black Horse in 
 Lombard Street, where Humphrey Stocks was established in 
 1677. The business descended to John Bland and Son, who 
 were the owners in 1740, and they were the immediate prede- 
 cessors of Messrs. Barnetts, Hoares, and Co. 
 
 Messrs. CouttS — who are now at the head of the private 
 Bankers — are the successors of George Middleton, who was a 
 Goldsmith at the Three Crowns, in St. Martin’s Lane, in 1690, 
 and whose business was subsequently moved to Durham Yard, 
 in the Strand, on the site of which the present Banking House 
 is built. The English Royal Family keep their accounts at 
 Coutts’, and during the French Monarchy, the French Kings 
 also patronised this establishment. 
 
 The foregoing are the private Bankers at present existing in 
 London, who can trace a descent from the firms whom we find 
 in the “ Little London Directory,” as Goldsmiths “ keeping- 
 running Cashes” in the year 1677. The following houses, which 
 are the principal private Banking firms at present doing business 
 in London, were subsequently established. 
 
 Glyn, Mills, and Co. — This house, which does the largest 
 business of any London private Bank, was established about 
 the year 1750, as Vere, Glyn and Hallifax, and a Glyn was 
 always a chief partner in it The present Lord Wolverton is the 
 representative of the family and a senior partner in the firm. 
 Barclay, Bevan, and Co., commenced business very early in 
 the 1 8th century, probably about 1710, at the sign of the Black 
 Spread Eagle in Lombard Street, in the names of Feame 
 and Gould, subsequently Feame and Barclay. Drummond’s 
 Bank was founded about 1712 by Andrew, a son of Sir John 
 Drummond. When George III. quarrelled with Mr. Coutts be- 
 
An Historical Sketch . 
 
 43 
 
 cause he advanced ;£ioo,ooo to Sir Francis Burdett for the ex- 
 penses of the celebrated Westminster Election, he removed his 
 account to Drummond’s ; but the Prince Regent returned to 
 Coutts’ (where the Royal Family has since banked) because 
 Drummond declined further advances to his Royal Highness. 
 All the partners are Drummonds. Fuller, Banbury, and 
 Co. date from about 1735, when the Bank was established as 
 Atkins, Honeywood and Fuller. Herries, Farquhar, and 
 Co. was founded in 1770 by Robert Herries, who seceded from 
 Coutts’ Firm, and to him the honour belongs of having invented 
 “ circular notes” for Continental travelling purposes. Sir Walter 
 Farquhar, Bart., is the present head of the Bank. Praeds’ 
 London Bank dates from 1803, the partners having previously 
 been Bankers at Truro for a considerable period. Mr Praed, 
 the poet, was a member of this Firm. Prescott, Grote, 
 and Co. was established in 1766 under that title. Mr. 
 George Grote, the historian, was one of the family whose name 
 is in the Firm. Ransom, Bouverie, and Co. was originally 
 founded in 1786 by Mr. Ransom and others. It absorbed 
 Bouverie’s Bank in 1856. Lord Byron kept his account at 
 Ransom’s, his friend Mr. Kinnaird being a part owner. Lord 
 Kinnaird is head of the house at present. Robarts, Lubbock, 
 and Co. was founded in 1772 by Sir William Lennon and 
 others, and the title of the firm has experienced many mutations. 
 Sir John Lubbock, Bart., M.P., whose name is identified with 
 banking, and who is as eminent in the scientific as in the bank- 
 ing world, is a chief partner. Sir Samuel Scott, Bart, and 
 Co. dates from 1825. Smith, Payne, and Smiths, was, 
 under the name Smith and Payne, carrying on business in 1759. 
 Mr. Smith had originally been established at Nottingham where 
 his grandfather founded, and his descendants still conduct, 
 a Banking House. Williams, Deacon, and Co., was 
 
44 
 
 Introduction. 
 
 originally Sir Charles Raymond, Bart., Williams and others, 
 and was established about 1770. Cocks, Biddulph, and 
 Co. dates from 1750. 
 
 Besides these there are several other private banking firms in 
 London, but we have made mention only of those more notable 
 ones, whose names are familiar to every bank official in this 
 country. The numerous houses, eminent and prosperous in 
 their day, which have been absorbed by, or merged in, other 
 establishments — which have ceased from choice, or stopped from 
 misfortune, we have not referred to, as it is beyond the scope 
 of this sketch. Those curious on these points should consult 
 Mr. Hilton Price’s admirable and trustworthy volume, where they 
 may read the histories of the Banks of Hankey; Jones, Loyd, 
 and Co. ; Strahan, Paul, and Bates ; Willis, Percival, and Co. ; 
 Price and Co. ; Olding’s and Co, (where Samuel Rogers the poet, 
 the friend of Byron and the society-father of Lord Beaconsfield, 
 was a partner) ; and many others dead and forgotten, or still 
 flourishing with various degrees of prosperity and various shares 
 of business. The London private banking firms stand out in 
 bright contrast with the Dublin ones. Of the former, several 
 now transacting business have been established over a century — 
 some over two centuries ; whereas in Dublin, the oldest of the 
 few private banks we have (Ball and Co.) can show no greater 
 antiquity than one of about 60 years. 
 
An Historical Sketch . 
 
 45 
 
 V. 
 
 THE BANK OF ENGLAND. 
 
 IN 1694 the Bank of England was established, having been 
 projected in 1691 by a Scotch merchant, William Paterson, 
 to relieve King William III. from the difficulties experienced 
 in raising supplies to prosecute the war against France. 
 The same year (1694) Paterson also promulgated his plan 
 for the colonization of Darien, for which end a company 
 was formed in 1695, and expeditions set sail. But this pro- 
 ject was attended with disastrous results ; the colony had 
 to surrender to the Spaniards, and Paterson narrowly es- 
 caped a death by famine and disease. His National Bank 
 project was more successful. He, in conjunction with one 
 Michael Godfrey, influenced forty London merchants to sub- 
 scribe half a million sterling towards the sum of ^1,200,000, 
 which was to be lent to the Government at 8 per cent, with a 
 further allowance of ^4,000 a year for management, in 
 consideration of the subscribers being incorporated into 
 a bank with certain monopoly privileges. The scheme 
 was violently opposed in Parliament, and also by the 
 private bankers, but the Bill received the Royal assent 
 on the 25th April, 1694, and the Bank obtained its 
 Charter of Incorporation on the 27th July following. The 
 Charter was first granted for eleven years, but it has since been 
 renewed from time to time down to 1844, when Peel’s Bank 
 Charter Act renewed it for the usual eleven years, and longer, 
 “if the debt due from the public to the Bank, ^11,015,100, 
 with interest, be not paid after due notice.” The Bank com* 
 
46 
 
 Introduction. 
 
 menced its business on ist January, 1695, at the GrocePs Hall 
 in the Poultry* — Sir John Houblon being the first Governor and 
 Michael Godfrey the first Deputy-Governor. At the time of its 
 founding, it issued notes for ^20 and up wards, f and discounted 
 bills at rates varying from 4^ to 6 percent. In 1696 there was 
 a run on the Bank which caused its temporary suspension, when 
 its notes were at 20 per cent, discount. The capital was then 
 increased by about a million, to ^2, 20 1,171 10s. In 1710 its 
 capital was further increased to ;£5, 559,995 10s. In 1734 it 
 moved from the Poultry to Threadneedle Street, the present 
 building, which stands in four parishes, and is reared on the site 
 of Sir John Houblon’s house and many other buildings, includ- 
 ing the Church of St. Christopher-le-Stocks, the burial ground^: of 
 which is now “ the Garden” of the Bank, and is known to every 
 visitor to London. In 1738, the Bank invented and issued Bank 
 
 * Dickens' Dictionary of London states that “the business of the Bank 
 “ was originally carried on in the Mercer’s Hall, thence it was removed to the 
 “ Grocer’s Hall ; and thence again to the buildings at the back of the pre- 
 “ sent Court towards Threadneedle Street, the existing not very satisfactory 
 “ pile being the work of Sir John Loane half a century later.” 
 
 + In the “Bankers’ Magazine” for March, 1845, “R. W. D.” writes as fol- 
 lows : — “A gentleman near Aylesbury, it is said, has in his possession a 
 Bank of England note for 6d. (sixpence) issued in the year 1700, of which 
 the following is an exact copy : — 
 
 No. 105. 
 
 I promise to pay T. Caddel or bearer, 
 on demand, the summe of sixpence. 
 
 London, 8th day of May, 1700, 
 
 — 6d. For the Governor and Company 
 
 of the Bank of England. 
 
 John Wage.” 
 
 4 In this burial ground was buried, in the last century, a clerk of the 
 Bank named Jenkins, who was six feet and a half in length, and was in- 
 terred here to save the corpse from the Resurrectionists, 
 
An Historical Sketch . 
 
 47 
 
 Post Bills; in 1759 it issued ^10 notes ; in 1793 £$ notes j in 
 1 797 £1 and A 2 notes; but it relinquished the issue of all 
 notes under A 5 in 1844. In 1826 and 1827, acting under 
 Government advice it opened its few country branches, and in 
 1856, its Burlington Gardens, W. Branch. In 1718 its notes 
 in circulation amounted to ^1,829,930 ; in 1800, to 
 ^i5»45°» 000 - 
 
 The Charter originally stipulated a payment by the Govern- 
 ment on the amount lent it, at the rate of 8 per cent., but at each 
 renewal the Government used the opportunity to reduce the 
 rate, or the Bank took advantage of the Government, and to 
 secure its Charter offered advances at a lower rate, and some- 
 times free of interest. In this way the debt, which was 
 ;£i, 200,000, increased : in 1708 it stood at ^3, 375,000 ; in 
 1781 at ^11,686,000; in 1816 at ^14,686,000. Upon the re- 
 newal of the Charter in 1833, the Act (3 & 4 William IV., c. 
 98) provided that the Government should repay one-fourth part 
 of the debt due to the Bank, and it now stands at ^11,015,000. 
 
 The Bank had certain privileges conferred upon it at the time 
 of its formation, some of which have since been rescinded and 
 some of which are still enjoyed. In 1708 an Act was passed 
 forbidding the formation in England or Wales of a Bank having 
 more than six partners, for the issue of notes payable on demand. 
 This was partially repealed in 1826, the restriction then being 
 made to apply only to Banks within a sixty-five mile radius of 
 London. 
 
 The Bank of England is prohibited from engaging in any 
 commercial undertaking — it must adhere rigidly to its legitimate 
 business of “ buying or selling coin, bullion, and bills of Ex- 
 change.” It keeps current accounts, but allows no over-drafts. 
 It receives money on deposit, but allows no interest. By the 
 first Charter it was permitted to issue notes to the extent of its 
 
48 
 
 Introduction . 
 
 then capital ;£i, 200,000, and by the Bank Act of 1844, the Issue 
 department — which is separate and distinct from the Banking de- 
 partment — could issue to the amount of ^14,000,000 against 
 certain securities of which the Government debt of jQi 1,015,000 
 is the chief ; and no notes can be issued over and above this 
 ;£i 4,000,000,* except against coin and bullion held by the Bank. 
 
 The Bank of England has sometimes been in difficulties. 
 It failed in 1696, and in its earlier years it was subjected to 
 many runs — some organized by the jealous private bankers ; 
 some the result of political causes. The Rebellion of 1745 
 caused a serious run, during which the Bank notes were redeemed 
 in silver. In 1797 the panic caused by the expectation of a 
 French invasion was so great that an Order in Council was issued 
 to protect the Bank. By this order the Bank was prohibited 
 from paying its notes in gold till Parliament had spoken on the 
 subject, and Parliament continued the protection till six months 
 after the signature of a definite treaty of peace between the 
 nations. In 1801, owing to over-issue, the notes of the Bank 
 were at a discount of 10 per cent. In 1810 they sunk to a dis- 
 count of 15 per cent., and in 1824 to 25 per cent, from the 
 same cause and sundry disturbing anticipations. In 1825 dur- 
 ing the great panic which brought down 770 Banks throughout 
 the Kingdom, the Bank found extrication from the difficulties 
 caused thereby, in the issue of some £1 notes, which were 
 found in an old chest, the existence of which had been 
 forgotten, but which was happily discovered at an appropriate 
 time. In 1847 during the panic which arose from the railway 
 mania, the restriction on the issue was suspended by Lord 
 John Russell, but the favour was not used. 
 
 In 1857, during the panic caused by the American failures, 
 
 Exclusive of a small addition subsequently referred to. 
 
An Historical Sketch . 
 
 49 
 
 Lord Palmerston sanctioned an addition to the authorised 
 issue, and ^200,000 over the limit were issued. In the panic 
 of 1866 also the Bank Act was suspended. 
 
 If any country Bank of issue should cease to issue notes, the 
 Bank of England may apply, and will be authorised on such 
 application, by an Order in Council, to increase its issue by 
 two-thirds of the authorised issue thus discontinued, but the 
 profits of the increased issue do not belong to the Bank but to 
 the Government. In this way the Bank’s issue was, in 1857, 
 increased by ^475,000, and now it can issue, against securities 
 allocated for the purpose, notes to the amount of ^£14,475,000; 
 but for any amount in excess of this, gold and silver must 
 be held in accordance with the Act of 1844. Bank of 
 England notes are a legal tender in England, except if 
 tendered by the Bank itself. The Issue Department in the 
 Bank is distinct from the Banking Department, and all the 
 notes issued by the Issue Department must necessarily be 
 either in the Banking Department or in the hands of the 
 public. The amount of those in the Banking Department is 
 known as the “ Reserve,” and the amount of those in the 
 hands of the public is known as the “ active circulation.” The 
 “ Reserve ” is the basis upon which the variations of the Bank 
 rate are regulated ; if it be low the rate is increased, and if 
 large the rate is lowered. It increases as the amount of circu- 
 lation from the Issue Department increases and diminishes in 
 sympathy with diminished or restricted out-put. 
 
 For the ^14,000,000 which the Bank issues by authority, 
 and which represents the sum lent to the Government, it re- 
 ceives interest at the rate of 3 per cent. But this is not clear 
 profit as it has to pay Government ;£i 80,000 a year as a set- 
 off for its privileges and exemption from stamp duty ; and the 
 cost of production and management of the circulation is esti- 
 
50 
 
 Introduction . 
 
 mated at about ;£i 15,000 a year. Thus the profit on the 
 issue is about ^125,000 a year only. An additional source of 
 profit is the purchase of gold bullion, upon which it clears i^d. 
 per ounce. As the Bank allows no interest on Deposit Re- 
 ceipts or on Current Accounts, and permits no over-draft, it 
 has also means of profit which other Banks do not possess. It 
 did not open any branches till 1826; at present it has a 
 dozen offices. There are twenty-four Directors who must each 
 hold ^2,000 of the stock of the Company; a Deputy-Governor 
 who must hold ^3 ? ooo ; and a Governor who must hold 
 ^4,000. Twelve Directors and the Governor or Deputy- 
 Governor are necessary to form a court, and they meet each 
 Thursday. The following, which is the account for the week 
 ending 4th February, 1880, will show the position of this great 
 concern : — 
 
 Issue Department. 
 
 Notes Issued 
 
 . ... £41,904,675 
 
 Government Debt . . . 
 
 £11,015,100 
 
 
 
 Other Securities 
 
 3,984,900 
 
 
 
 Gold Coin and Bullion 
 Silver Bullion 
 
 26,904,675 
 
 
 £41,904,675 
 
 
 £41,904,675 
 
 Banking Department. 
 
 Proprietors’ Capital ... ;£i 4 , 553 > 00 ° 
 
 Rest 3,349,402 
 
 Public Deposits (includ- 
 ing Exchequer, Sav- 
 ings Banks, Commis- 
 sioners of National 
 Debt, and Dividend 
 
 Accounts) 4,681,854 
 
 Other Deposits 27,832,640 
 
 Seven-day and other Bills 276,760 
 
 Government Securities ^16,804,788 
 
 Other Securities 18,061,381 
 
 Notes • 14,518,870 
 
 Gold and Silver Coin 1,308,617 
 
 ^50,693,656 
 
 ^50,693,656 
 
An Historical Sketch. 
 
 5i 
 
 There is one curious circumstance in the History of the 
 Bank of England of which mention has been made — its having- 
 stopped payment in 1696. This was owing chiefly to the 
 failure of the National Land Bank, which was established 
 by Act of Parliament in that year (1696), with the object of 
 advancing money on the security of unencumbered freehold 
 estates. This project, though supported by Lord Sunderland 
 and Harley and patronised by the King, who subscribed ^5,000 
 to it, never made any progress. Its capital was not subscribed 
 for, but its rivalry of the Bank of England was of such import, 
 that when it failed the Bank of England stopped payment and 
 the notes fell to a heavy discount. A complete and most in- 
 teresting “ History of the Bank of England” has been written 
 by Mr. John Francis, and a perusal of it will amply repay the 
 reader. 
 
52 
 
 Introduction . 
 
 VI. 
 
 ENGLISH PRIVA TE AND JOINT STOCK BANKS. 
 
 BEFORE the passing of the Act of 1826, England’s Banking 
 facilities were confined to the Bank of England, which had the 
 monopoly of issuing notes within a radius of 65 miles ; and to 
 the private Banks scattered extensively over the country. The 
 oldest country Bank is stated in some works to have been 
 Wood’s Bank in Gloucester, which was founded in 1716, but 
 the present Banking House of Samuel Smith and Co., of Not- 
 tingham, claims to have been established so far back as 1688. 
 The origin and history of this veteran establishment is plea- 
 santly told in Mr. F. Martin’s book— “ Stories of Banks and 
 Bankers” — and therein we learn that it was a grandson of the 
 founder who entered into partnership with Payne, of London, 
 in 1759, and established the eminent firm of Smith, Payne & 
 Co. The History of the English Country Private Banks of 
 the last century that have failed or disappeared, has yet to be 
 written ; but there are at present several establishments which 
 were formed over a century ago, now carrying on business and 
 enjoying valuable connections. Alexanders and Co., of 
 Ipswich and elsewhere, dates from 1744; Beckett and Co., 
 of Leeds, from 1750; Miles, Cave, Baillie and Co., of 
 Bristol, from 1750 also; Pease’s, of Hull, from 1754; Gar- 
 fit and Co., of Boston, from 1755; Wright and Co., of 
 Nottingham, from 1759. The majority of the English private 
 Banks at present existing were founded late in the eighteenth 
 and early in the present centuries. Few have been established 
 during the past fifty years, for the rapid spread of Joint Stock 
 Banks, founded in accordance with the Act of 1826, dis- 
 couraged, if it did not render impracticable, the formation of 
 
An Historical Sketch . 
 
 53 
 
 new private Banks, which could not, unless in exceptional 
 cases, succeed in creating a business, in seducing it from the 
 older private Banks, or in obtaining it in preference to the 
 Joint Stock Banks. 
 
 The old private Banks could not have more than six partners, 
 but the restriction does not seem to have been an obstacle to 
 the formation of such establishments. In 1792, it is said there 
 were over 350 private Banks in England, of which more than 
 half went under in the panic of 1792-3, consequent on the 
 French War; but subsequently they increased with amazing- 
 rapidity. In 1809 there were no fewer than 782; in 1814, 
 their number was 940 ; but the great panic which shook the 
 country in the winter of 1825 made great havoc amongst them. 
 At that time, 770 Banks of all kinds stopped payment, and the 
 following year (1826) the Joint Stock Act was passed. A 
 majority of the private Bankers issue their own Bank notes ; 
 and the Act of 1844 regulated the future issues of these Banks 
 as it did of the public Joint Stock Banks. At present (1880) the 
 number of private Banks in England and Wales is 241, of which 
 105 issue notes. The total amount of their authorised issue is 
 ^*3,576,703, and of their actual issue, about ^1,800,000. The 
 Bank of England monopoly privilege, whereby no bank of more 
 than six partners could issue notes within 65 miles of London, 
 was discussed publicly in 1833, and it was decided that, as the 
 restriction only applied to Banks of Issue, Banks on the Joint 
 Stock principle not being Issuing Banks, could carry on business 
 in and near London ; and thereupon the London and West- 
 minster (1834), the London Joint Stock (1836), the Union of 
 London, and London and County (1839), an d other Banks, were 
 established in the Metropolis. In an Appendix is a statement 
 of the present position of the English Joint Stock Banks.* 
 
 See Appendix I. 
 
54 
 
 Introduction . 
 
 VII. 
 
 BANKING IN SCOTLAND . 
 
 IN Scotland the system of Private Banking never attained the 
 same proportions that it reached in England and Ireland. This 
 is due chiefly, if not solely, to the earlier formation of Char- 
 tered and Joint Stock Banks, and the plentiful establishment of 
 branches throughout the country. In this respect Scotland has 
 had a very sensible advantage over the sister countries, and 
 especially over Ireland, where there was no Bank, except the 
 private ones, before 1783, when the Bank of Ireland was 
 founded, and, as will be seen, it did not deign to open a branch 
 till the year 1824. In Scotland* it was far different. The first 
 notice of Banking in that country which appears in the Statute 
 Book is in the Act passed in 1695, under which the Bank of 
 Scotland was chartered. To this establishment the exclusive 
 privilege of Banking “ within the Kingdom of Scotland” was 
 granted for a period of twenty-one years from the 17th July, 
 1695. The following year it commenced operations and 
 opened branches. Its original capital was ^1,200,000 Scots 
 in 1,200 shares of ;£ 1,000 Scots each, which was equivalent 
 in sterling money to ^100,000, in shares of ^83 6s. 8d. each. 
 Unlike the Bank of England and Bank of Ireland, the Bank 
 of Scotland was, by its Charter, prohibited from lending money 
 to the Crown. It commenced its issue of £1 notes in 1 704. At 
 present the subscribed capital is ;£ 1,500,000 sterling, of which 
 ^1,000,000 is paid up. It will be observed that the paid-up 
 capital of all the Scotch Banks is, in proportion to the subscribed 
 capital, greater than that of the English and Irish Banks. 
 
An Historical Sketch . 
 
 55 
 
 The Bank of Scotland continued to be the only Bank in 
 Scotland till 1727, in which year a Charter of Incorporation 
 was granted to the Royal Bank of Scotland. It was 
 formed with a capital equal to 15 1,000 sterling, but now it 
 stands at ^2,000,000 of which all is paid-up. The British 
 Linen Company was incorporated in 1746 for the purpose 
 of manufacturing and trading in Linen, but the project, as 
 such, was almost immediately abandoned, and the Company 
 entered upon Banking business solely. The foregoing are the 
 three Chartered Banks of Scotland and in these the liability 
 of the Shareholders is in effect limited to the amount of their 
 shares. In 1765 an Act of Parliament was passed whereby 
 it was rendered compulsory on the issuing Banks to make 
 their notes payable on demand ; hitherto they seem to have 
 retained to themselves the option of paying their notes six 
 months after presentation, allowing legal interest from the Date 
 of demand to the Date of payment. 
 
 Notwithstanding the spread of Banking facilities as afforded 
 by these institutions of unquestionable solvency, nevertheless, 
 Private Banking firms were established and enjoyed a fair 
 share of prosperity. Those of them which were still in ex- 
 istence half a century ago were : — 
 
 Sir Wm. Forbes Bart., and Co., of Edinburgh, established in 1802 
 
 Carrick and Co. 
 
 Hunters and Co. 
 
 Ramsay, Bonar and Co. 
 Kinnear and Sons. 
 Donald Smith and Co. 
 Robert Allen and Co. 
 Alexander Allan and Co. 
 
 „ Glasgow 
 „ Ayr 
 
 „ Edinburgh 
 „ do. 
 
 „ do. 
 
 „ do. 
 
 „ do. 
 
 1749 
 
 1773 
 
 1738 
 
 1748 
 1 7 73 
 1773 
 1776 
 
 Of these the most eminent was Forbes’s Bank. 
 
 It merged 
 
56 
 
 Introduction. 
 
 in the Glasgow Union Bank which subsequently became the 
 Union Bank of Scotland ; Carrick’s and Hunter’s Banks were 
 also absorbed by the Union Bank ; Ramsay’s was wound up ; 
 Kinnear’s and Allen’s failed. 
 
 There were sundry other establishments dignified by the 
 title of Banking “ Companies,” quasi Joint Stock concerns, 
 the business of some of which, having commenced during the 
 last century, continued for many years. These, however, 
 were generally in effect private Banks. They had few 
 partners ; their capital was unknown to the public ; and their 
 constitution and the methods and extent of their businesses 
 were only imparted to the members of the partnership. They 
 have mostly failed or been absorbed by the later-established 
 Joint Stock Banks. Of these, the Dundee Bank (1763); 
 the Fife Bank (1802) ; the Leith Bank (1792) ; the Renfrew- 
 shire Bank (1802); the Montrose Bank (1814); the Perth 
 Bank (1766); the Shetland Bank (1802); and the Stirling 
 Bank (1777) failed ; and of the Joint Stock establishments 
 the most notorious failures of recent years have been those 
 of the Western Bank of Scotland, the Edinburgh and Glasgow 
 Bank, and the City of Glasgow Bank. The Western Bank, 
 which was established in 1832, had a capital of ^1,500,000, 
 and an authorised circulation of ^337,938, stopped pay- 
 ment under circumstances £>f grave reprehension in 1857. 
 The Edinburgh and Glasgow Bank likewise suspended 
 in 1857. Its authorised issue (^136,657) went, by arrange- 
 ment, to increase the issue of the Clydesdale Bank. The 
 City of Glasgow Bank was established in 1839, and failed 
 in 1878. The cause of stoppage in all these instances was 
 culpable recklessness of management. The Royal British 
 Bank, though not strictly a Scotch Bank, was promoted by 
 Scotch gentlemen with the object of transplanting to English 
 
An Historical Sketch . 
 
 57 
 
 soil the peculiar system of Scottish Banking. It was estab- 
 lished in 1849, an d stopped payment in 1856, under such 
 management that entailed (as in the case of the City of 
 Glasgow Bank failure also), the prosecution and imprisonment 
 of the directors. 
 
 Banking, as practised in Scotland, differs in some marked 
 respects from that of England and Ireland. The Banks are all 
 chartered or joint stock companies ; they all issue notes, they 
 all have numerous branches. Banking is better understood by 
 the rural population of Scotland than in the sister countries. 
 The smallest town in Scotland has one, and frequently more 
 than one, bank, and the system of “ cash credits ” which obtains 
 there is in accordance with the habits of the people, and is a 
 great impulse to industry and an incentive to thrift. A “ cash 
 credit ” is simply an advance by way of a debit balance in 
 current account, which advance is secured to the bank by a 
 bond entered into by a couple of solvent parties who are 
 guarantors for the borrower. It is in fact an open credit to be 
 availed of as the party requires, and to be reduced at his 
 convenience. The advance enables the person obtaining it to 
 start or to develop a trade or business — be he shopkeeper or 
 farmer. Thus the industrious poor are supplied with capital 
 and enabled to commence life under favourable conditions, and 
 the profits realised, or surplus monies received, are lodged, 
 in the bank towards the reduction of the debit balance. It is 
 obviously the policy of the borrower to conduct his business 
 and himself to the satisfaction of his sureties ; and it is his 
 interest to cultivate habits of industry and frugality in order to 
 clear off his debt and save the interest paid thereon. It is 
 unanimously acknowledged that the practice has been of 
 immense advantage to the country materially and morally. 
 Capital is more extensively employed for the benefit of the 
 
58 
 
 Introduction . 
 
 poorer classes, and labour, thrift, and foresight are encouraged. 
 The enterprise of the nation is exemplified by the fact that 
 the chief offices or headquarters of the Banks are not confined 
 to the metropolis, but various local institutions have their 
 directors and chief management in their own districts. The 
 laws affecting the circulation and note issues are similar in 
 effect to those which apply to Ireland, and, like them, are the 
 result of Sir Robert Peeks legislation. The Scotch and Irish 
 Banks of issue have an advantage over the English, in that the 
 latter cannot, under any circumstances, exceed their authorized 
 issue, while the Banks in Scotland and Ireland can issue to an 
 unlimited extent, on the condition that the amount in excess of 
 the authorized issue is covered by coin held ; and of this the 
 amount of silver cannot exceed one-fourth the amount of gold. 
 
 The following table shows the existing Scotch Banks ; their 
 date of establishment ; their head offices ; their capital 
 subscribed and paid up ; number of branches ; their authorized 
 circulation; and their average circulation on 22nd November, 
 1879 : 
 
 
 
 No, of 
 
 
 Capital 
 
 Circulation 
 
 NAME 
 
 Date 
 
 Bran- 
 
 ches. 
 
 Head 
 
 Office. 
 
 Sub- 
 
 scribed. 
 
 Paid-up. 
 
 Autho- 
 
 rized. 
 
 Aver- 
 
 age 
 
 B ank of Scotland 
 
 1695 
 
 105 
 
 Edinboro’ 
 
 £ 
 
 1,875,000 
 
 £ 
 
 1,250,000 
 
 £ 
 
 343,418 
 
 £ 
 
 890,130 
 
 Royal Bank of Scotland 
 
 1727 
 
 121 
 
 Do. 
 
 2,000,000 
 
 2,000,000 
 
 216,451 
 
 831,035 
 
 British Linen Company 
 
 1746 
 
 99 
 
 Do. 
 
 1,000,000 
 
 1,000,000 
 
 438,024 
 
 696,506 
 
 Commercial Bank 
 
 1810 
 
 105 
 
 Do. 
 
 1,000,000 
 
 1,000,000 
 
 374,880 
 
 846,182 
 
 Aberdeen Town and County . . 
 
 1825 
 
 54 
 
 Aberdeen 
 
 720,000 
 
 252,000 
 
 70,133 
 
 237,674 
 
 National Bank of Scotland .. 
 
 1825 
 
 96 
 
 Edinboro’ 
 
 1,000,000 
 
 1,000,000 
 
 297,024 
 
 697,763 
 
 Union Bank of Scotland 
 
 1830 
 
 129 
 
 Glasgow 
 
 1,000,000 
 
 1,000,000 
 
 454,346 
 
 818,217 
 
 North of Scotland Banking Co. 
 
 1836 
 
 59 
 
 Aberdeen 
 
 1.968,000 
 
 394 , 5 °° 
 
 154,319 
 
 371,514 
 
 Caledonian Banking Company 
 
 1838 
 
 *9 
 
 Inverness 
 
 600,000 
 
 150,000 
 
 53,434 
 
 49,237 
 
 Clydesdale Banking Company 
 
 1838 
 
 95 
 
 Glasgow 
 
 1,000,000 
 
 1,000,000 
 
 274,321 
 
 555,462 
 
 The total paid up capital of the Scotch Banks is '^9,046,500 ; 
 while of the Irish Banks the total is ^6,984,230. The total 
 number of branch Banks in Scotland is 882 to a population in 
 round numbers of 3,500,000, whereas in Ireland the total 
 number, including sub-offices, is less than 500 to a population 
 of 5,500,000. 
 
An Historical Sketch . 
 
 59 
 
 VIII. 
 
 EARLY IRISH COINAGE. 
 
 GOLD was known from immemorial times in Ireland, not as an 
 import, but as a native product. In Keating’s History of Ire- 
 land we are informed that the first golden mine in Ireland was 
 discovered near the “ Liffee,” in the reign of Tighermhas, who 
 is said to have begun to reign in the Kingdom in the year 
 1 1 88 b.c., — from which statement it appears rational to con- 
 clude that the County Wicklow gold mines ought to have been 
 exhausted, if they were not, when mining ceased there some 
 50 years ago. At all events gold was a standard of value and 
 a circulating medium in Ireland considerably over 1,000 years 
 ago. It was shapen into rings and circulated in this form, as- 
 it did in many countries at a primitive period. 
 
 The same veracious historian who chronicles the discovery 
 of the “ Liffee” gold mine, informs us that St. Patrick erected 
 mints at Ardmagh and Cashel and “ coined money for the ser- 
 vice of the State,” about the year 450 a.d. If ^ this were so, 
 the art of coinage fell into disuse, for in subsequent years 
 we find gold for ransoms, religious offerings, &c., mentioned as 
 being weighed by ounces and not specified as coins ; and the 
 first reliable record of a coinage in Dublin that we possess 
 is under the year 1210, when King John, who was then in 
 Dublin, ordered a coinage of pence and farthings. Pope 
 Adrian’s Bull to Henry II. in 1155, authorising him to 
 invade Ireland, contained a condition that the King should 
 compel every Irish family to pay a carolus to the Holy 
 See, but this stipulation was not fulfilled at the invasion 
 
6o 
 
 Introduction. 
 
 in 1172, for the simple reasons that the Irish families had 
 not got caroluses, and if they had it would have been 
 beyond Henry’s power to levy the tax. Silver Marks, 
 value for 13s. 4d., appear to have been coined also about this 
 time, and in 1251 a new coinage was stamped in Dublin, bear- 
 ing on it the King’s Head in a triangle with the inscription 
 “ Henricus Rex III.,” and the name of the Mint-master, 
 “ Richard on Dive.” 
 
 In 1279, Edward I. commanded the coinage to be made in 
 accordance with fixed standards, and in his reign there were 
 four mints in Dublin. Base coin was also manufactured largely 
 and circulated widely, and in 1300 a King’s proclamation was 
 issued, whereby the “ base coins called ‘ pollards and crocards’ ” 
 were cried down. But though there were the Royal mints, 
 there were also, as in England, other coiners ; but whereas in 
 England these others coined under authority, in Ireland there 
 was apparently no restriction exercised, or, if it were, it was 
 disregarded. The trade of these coiners was “ a great hurte 
 and destruction” to the country, and in 1447 an Act was passed 
 against clipped money, unlawful money, and O’Reyley’s money. 
 Who this “ O’Reyley,” or “ Reyley,” was, or where he minted 
 his money, we are not aware ; but from this and subsequent 
 enactments, it appears that the “ King’s money” did not enjoy 
 as large a circulation as clipped money and O’Reyley’s coinage. 
 
 In 1459 brass money was coined at a mint in the Castle, and 
 in 1462, groats, twopennies, pennies, half-pennies, and farthings 
 were issued from the Dublin mint. The public estimate of 
 these coins may be inferred from the fact that the English 
 money was at a premium at this time. In 1540 the Dublin 
 mint coined silver testoons (testers, or sixpennies), twopennies, 
 and pennies, and in 1548 a new mint was established, “ which 
 soon failed for want of bullion.” In 1552, a year of great 
 
An Historical Sketch . 
 
 61 
 
 famine, the mint testoon was ordered to pass for two shillings — 
 four times its value. In 1662, King Charles II. granted, as 
 we have seen, a patent for coining money for Ireland to the 
 Viners and Daniel Bellingham, and this is the first time money 
 for Ireland was coined in England. The Irish mints, previous 
 to this period, were mere temporary institutions, and the trade 
 of the country was facilitated by frequent issues of “ tokens” 
 by the traders. These were either brass or copper, and were 
 a kind of transferable promissory note. They bore the maker’s 
 name and the value, and were supposed to be redeemable by 
 him on demand. The issue of tokens was, however, prohibited 
 in 1661 by Charles, and an improvement was effected by the 
 coinage which was minted under the patent granted to Viner 
 and Bellingham. 
 
 When James the II. arrived in Ireland he improved his finan- 
 cial position by a proclamation that all English Guineas — the 
 coin he brought with him — should be current for £ 1 4s. in Ire- 
 land, and he granted a patent for coining to Sir J ohn Knox. But 
 when his circumstances grew more shattered he annulled the 
 grant, confiscated Knox’s engines and stock of metal, and set 
 up a mint in Capel Street and coined the most worthless and 
 debased Imperial coinage ever issued to a people. Old bells, 
 old cannon — even pots and pans and kitchen utensils — were 
 molten down, and struck into half-crowns, shillings, and six- 
 pennies. The people were compelled to surrender their gold 
 and their plate, and to take in exchange this wretched dross, 
 the value of which may be estimated from the circumstance that 
 the half-crowns were ordered to circulate as pennies by William 
 the III. when he had established his power in Ireland. The 
 value of the old metals melted down is stated at ^6,500, 
 while the nominal value of the coinage is alleged to have 
 been .£1,496,799. 
 
6 2 Introfacction. 
 
 The grant, or purchase, of the patent for coining ^180,000 
 in half-pence and farthings for Ireland, which was obtained by 
 William Wood, of Wolverhampton, from the Duchess of 
 Kendal, is remarkable, because of the violent and successful 
 opposition to the coinage, which was conducted by Dean 
 Swift, and which made him the most powerful and popular 
 man at the time in Ireland. The proposed coinage was 
 stated by the Dean to be “ of such base metal and false 
 weight as to be six parts in seven below the real value.” 
 But an assay by Sir Isaac Newton in 1724 reported that it 
 exceeded the conditions of the patent in weight and fineness. 
 But the conditions of the patent provided for a very de- 
 preciated coin. Some of Swift’s denunciations under the 
 signature of “The Drapier,” are of extraordinary violence. 
 For example, in one of those manifestoes he writes : — “ For 
 my own part, who am but a man of obscure condition, I 
 do solemnly declare in the presence of Almighty God, that 
 I will suffer the most ignominious and torturing death rather 
 than submit to receive this accursed coin.” The outcry 
 against it was so great, and the opposition so overwhelming, 
 that Wood’s half-pence never circulated as current coin in 
 Ireland. After this period, the Irish coins were always struck 
 in England. There was a difference in value of the coins 
 of the respective countries, £1 Irish being equivalent to 
 1 8s. 5^d English. In 1826, however, the values were as- 
 similated, and at present the same coinage is common to 
 the two countries in every respect. 
 
An Historical Sketch . 
 
 63 
 
 IX. 
 
 BANKING IN IRELAND.— EARLY DUBLIN BANKERS. 
 
 IN Ireland, as in England, the Joint Stock Banks were pre- 
 ceded by the Private Bankers, and the latter by Goldsmiths, 
 who super-added to their legitimate trade, the pursuits of 
 money-changing and money-lending. But apparently before 
 usury was carried on by the Goldsmiths, there was a system 
 of money-lending existent in Ireland, the curious character- 
 istic of which was that there was an intermediary, or touter, 
 who plied a recognised trade, and whose business consisted in 
 introducing the needy borrower to the usurer, and in drawing 
 up and witnessing the bonds given in connection with the 
 loan. As early as 1634 the Irish Parliament passed an Act 
 to restrain usury, and one of its provisions is that no “ driver 
 of bargains for contracts” — i.e., no person who induced one 
 man to borrow from another — was to charge more than five 
 shillings for procuring a loan of ^100 for one year, or more 
 than twelve pence for making the bond in reference to 
 the loan. This Act restricted the Rate of legal interest to 
 10 per cent. It was reduced to 8 per cent, in 1704, to 7 
 per cent, in 1721, and to 6 per cent, in 1737. 
 
 Private Bankers were established in Dublin in the latter 
 part of the 17th Century. Previous to this time Gold- 
 smiths carried on a deposit business, and issued “ notes” — as 
 they were called — in acknowledgment of such deposits. But 
 it seems that these notes were not transferable, and were 
 merely acknowledgments for deposits, which deposits were 
 to be returned to the depositor only, on application, and were 
 
64 Introduction . 
 
 to be returned in the state and form in which they were 
 lodged. The Goldsmiths were no more than safe custodians, 
 and they possessed no power to utilise or convert the deposits 
 with which they were entrusted. In process of time, these 
 notes were passed from hand to hand, and were treated as 
 negotiable, till some question was raised as to their trans- 
 ferability, and in 1709 an Act of Parliament enacted that 
 notes issued by any “ Banker,* Goldsmith, Merchant, or 
 Trader,” whether made payable to bearer or order, should be 
 assignable and transferable by delivery or endorsement, and 
 an endorsee could sustain an action on them. Bankers’ notes 
 thus became instruments recognized by the Irish Laws, and 
 many subsequent enactments were passed in regard to them. 
 Thus, in 1721, it was enacted that Goldsmiths’ or Bankers’ 
 notes not paid on demand, should carry legal interest from 
 the day of demand ; and further, that a Banker’s real estate 
 should be liable at his death for his notes current. 
 
 The more regular Bankers naturally superseded the 
 Goldsmiths. In 1721, a preamble to an Act states that “the 
 “ trade of this Kingdom was partly carried on by the means 
 “ of cash notes given by Bankers, and that the trade or calling 
 “ of a Banker was followed by the keeping of a public shop, 
 “ house, or office, for the receipt of the money of such persons 
 “ as were willing to deposit the same in their custody.” 
 Forgery of Bankers’ notes was made a felony in 1729, punish- 
 able by burning in the hand and transportation of the 
 convicted party. 
 
 The most noted of those early Bankers was one John 
 Demar or Damer. He had been a captain of a troop of horse 
 
 * This is the first mention of the word Banker in an Irish Act of Parlia- 
 
 ment* 
 
An Historical Sketch . 
 
 65 
 
 under Cromwell in the Civil War, and at the Restoration 
 of Charles II., he sold his estates in Somerset and Dorset, 
 and settled in Ireland. He plied his trade of usury for many 
 years at a noted tavern in Dublin called “ The London, ” 
 where “ he touched the pence while others touched the pot,” 
 and he died on 6th July, 1720, at the age of ninety-one. At 
 his death Dean Swift wrote a punning elegy upon him, wherein 
 are described his threadbare cloak and his miserable ap- 
 pearance in public. He was altogether such a dilapidated 
 sight that he seemed as if he were asking alms, reminding 
 us of the Furfidius of whom Horace wrote. The following, 
 which constitute the epitaph, are the concluding lines of the 
 Dean’s elegy on him : — 
 
 “ The sexton shall green sods on thee bestow ; 
 
 Alas ! the sexton is thy banker now ! 
 
 A dismal banker must that banker be, 
 
 Who gives no bills , but of mortality!” 
 
 But he amassed great wealth, and, being childless and un- 
 married, he left it to his nephew, John Darner, from whom the 
 present Earls of Portarlington are descended. Another of the 
 same class as Darner, who flourished at this time was James 
 Southwell, who left a large sum for charitable purposes 
 connected with the parish of St. Werburgh’s, where he had 
 been born in 1641. There was a temporary run upon the 
 Dublin Bankers in 1720, possibly occasioned by Darner’s 
 death, and in the panic some succumbed. 
 
 The so-called Bankers of this period were, generally speak- 
 ing, not men of wealth or property, but the exigencies of 
 exchange and trade helped to circulate their notes, and thus 
 put them in credit ; and as there was no restriction on the 
 amount they were allowed to issue, their notes became almost 
 the only circulating medium, and silver and gold became 
 
66 
 
 Introduction . 
 
 quite scarce in the country. There were no qualifications 
 or licence or authorization required in any Banker. Any 
 person so disposed could set up in the business, and the 
 condition of the country was such that he was sure to get his 
 cash-notes into circulation, and having issued beyond his 
 powers of redemption, they were frequently not redeemed 
 in full, or not redeemed at all. 
 
 These unrestricted note-issues, by men without capital, 
 became such a scandal and serious injury to the trade and 
 commerce of the country, that an endeavour to arrest the 
 business carried on by the Bankers was made in 1720. The 
 Bank of England had been established in London, and 
 maintained an honourable position, and a public establishment 
 in Ireland was deemed advisable. But it was projected on 
 a very different basis. The Earl of Abercorn, Viscount 
 Boyne, Sir Ralph Gore, and others, petitioned the Crown 
 in that year (1720) for a charter for the institution of a Joint 
 Stock Bank of Issue, the capital of which (^500,000) was 
 to be invested in land, and the rental of these lands was 
 to form a fund, which fund was to be issued against in notes. 
 The main design was to establish a reliable and solvent 
 currency to supersede the variable, and sometimes worthless, 
 issues of the private Bankers. The project was favourably 
 entertained and leave given in Parliament to introduce the 
 Bill. But it was met by a counter petition from Lord Forbes* 
 and others, for a charter to establish a Bank with a capital of 
 ^1,000,000. This would almost certainly have been granted 
 in preference to Lord Abercorn’s project, but it was stated 
 that one of the provisions of the Bill would be to obtain for 
 the Bank a monopoly of Banking in the country ; and to 
 
 Son of the Earl of Granard. 
 
An Historical Sketch . 
 
 67 
 
 ensure the passing of this part of the measure a bribe of 
 £50,000 was said to have been offered to the Members 
 to influence their votes in favour of it. Unfortunately the 
 Bill was rejected, not on its merits, but through jobbery and 
 scheming, and the business of the Bankers’ was not interfered 
 with. 
 
 Some of the early Bankers were very respectable, and 
 apparently did a large business, but the early history of Irish 
 Banking is a record of failures, windings-up, and runs. And 
 of all the multitudinous Private Banks establised about this 
 period, but one — that of LaTouche and Co. — survived to 
 the latter half of the 19th century, an honourable exception 
 to its ephemeral contemporaries. 
 
 In 1731 the Bank of Meade and Curtis failed. Another 
 Bank which had been established previous to 1700 as Burton 
 and Falkener’s Bank, in Castle Street, and which at the time 
 of its failure, in 1733, was Burton and Harrison’s, failed 
 ignominiously, and the landed estates of the partners were sold in 
 satisfaction of the claims of the creditors, and after the realiza- 
 tion, the liabilities were yet ,£65,000 in excess of the assets. 
 This Bank had a great reputation — “ as safe as Ben Burton” was 
 a proverb. Burton was Lord Mayor in 1704, and four times 
 M.P. for the City, and Falkener had been Sheriff in 1720. 
 The present Marquess of Conyngham is descended from 
 Burton. 
 
 Two years after the failure of Burton’s Bank, that is to say in 
 1 735, there were five private Banking Firms in Dublin — James 
 Swift and Company of Eustace Street ; Hugh Henry, Esq., of 
 Upper Ormond Quay; Nuttall and M‘Guire, of Lower Ormond 
 Quay; LaTouche and Kane, of Castle Street; and Joseph Fade 
 and Co., of Thomas Street. Of these, the firm of LaTouche 
 and Kane was the most eminent. The Bank had been 
 
Introduction . 
 
 6 $ 
 
 established in 1725, and in this )ear (1735) it was removed to 
 the edifice, still existing, where the business was carried on till 
 1871, when the Bank merged in the Munster Bank. This 
 house was built by David LaTouche, jun., son of the founder 
 of the firm. Nathaniel Kane, the partner, was Lord Mayor in 
 1734, and had been accused by Doctor Lucas, M.P., of 
 appropriating some of the city funds, but successfully vindicated 
 himself. LaTouche w r as returned as Member of Parliament 
 for the City, but was unseated on petition. At the termination 
 of Kane’s partnership, the firm became David LaTouche and 
 Sons, which was its style and title till its absorption. 
 
 LaTouche’s was one of the three Banks pronounced 
 by a committee of the House of Commons, which sat in 1760 
 to enquire into the state of credit in the country, to 
 have much more than enough funds to suffice for all claims 
 upon them. In 1778, we find it advancing ^20,000 to the 
 Lord Lieutenant, the Marquess of Buckingham, for state 
 emergencies, and declining to make a further advance as the 
 security offered was unsatisfactory. LaTouche’s Bank never 
 issued a paper currency, but adhered to the legitimate and 
 simple business of receiving money on deposit and current 
 account, and making advances. Five members of the family 
 had seats in Parliament in 1800, and of them, only one voted 
 for the Union. 
 
 The Union, which terminated the Irish Houses of Lords 
 and Commons, and transferred the Irish Peers and the 
 Parliamentary representatives across the channel, reduced 
 Dublin from a metropolis to a mere provincial city. The 
 Irish Lords and members of Parliament became chronic 
 absentees, spending their time and their money in London, 
 and their absenteeism of course wrought detrimentally 
 on LaTouche’s Bank where chiefly they did their banking 
 
An Historical Sketch . 
 
 69 
 
 business. However, previous to the Union, no single 
 private bank, in our opinion, transacted the same kind and 
 extent of business that LaTouche’s did. It is no exaggeration 
 to say that the entire Irish Peerage and Landed Gentry kept 
 their accounts with substantial balances there.* Names which 
 
 * The following list, which is taken from the Current -account Legers 
 of 1765-1790, and which does not include any of the opulent Com- 
 moners who were customers of LaTouche’s, will give an idea of the 
 magnitude and respectability of the business done : — 
 
 Duke of Leinster. 
 
 Earl of Upper Ossory. 
 
 99 
 
 Rutland. 
 
 >> 
 
 Aldborough. 
 
 Marquess of Buckingham. 
 
 99 
 
 Altamont. 
 
 
 ,, Headford. 
 
 99 
 
 Bellamont. 
 
 
 ,, Cornwallis. 
 
 99 
 
 Brandon. 
 
 
 ,, Lansdowne. 
 
 99 
 
 Carysfort. 
 
 
 ,, Westmeath. 
 
 99 
 
 Courtown. 
 
 
 ,, Hertford. 
 
 9 9 
 
 Castlestewart. 
 
 Earl of Clanricarde. 
 
 9 9 
 
 Clanbrassil. 
 
 99 
 
 Carhampton. 
 
 9 9 
 
 Carrick. 
 
 99 
 
 Drogheda. 
 
 9 9 
 
 Donoughmore. 
 
 9 9 
 
 Kerry. 
 
 Lord 
 
 Eyre. 
 
 99 
 
 Athlone. 
 
 99 
 
 Knapton. 
 
 99 
 
 Antrim. 
 
 99 
 
 St. George. 
 
 99 
 
 Camden. 
 
 9 9 
 
 Louth. 
 
 99 
 
 Desart. 
 
 99 
 
 Kilmaine. 
 
 99 
 
 Granard. 
 
 99 
 
 Cloncurry. 
 
 9 9 
 
 Inchiquin. 
 
 99 
 
 Dungannon. 
 
 99 
 
 Kenmare. 
 
 9 9 
 
 Bective. 
 
 99 
 
 Leitrim. 
 
 99 
 
 Carbery. 
 
 99 
 
 Longford. 
 
 99 
 
 Callan. 
 
 99 
 
 Lanesborough. 
 
 
 Glentworth. 
 
 99 
 
 Meath. 
 
 99 
 
 Hawarden. 
 
 99 
 
 Nugent. 
 
 99 
 
 Clifden. 
 
 99 
 
 Wicklow. 
 
 
 Clonbrock. 
 
 99 
 
 Belmore. 
 
 99 
 
 Macartney. 
 
 99 
 
 Belvidere, 
 
 99 
 
 Cremorne. 
 
 9 9 
 
 Cork. 
 
 99 
 
 Mulgrave. 
 
 9 9 
 
 Egremont. 
 
 99 
 
 Blayney. 
 
7o 
 
 Introduction . 
 
 have become historical and famous are to be found in their 
 books. Lord Edward Fitzgerald ; Lord Castlereagh ; Flood ; 
 Grattan; Curran; Lord Clare the Chancellor; Foster, the last 
 speaker pf the Irish House of Commons ; Lord Norbury, when 
 he was plain John Toler; Barry Yelverton; Sir Boyle Roche; 
 the Countess of Mornington, the Duke of Wellington’s mother ; 
 were account-holders in LaTouche’s in its years of greatest 
 prosperity. LaTouches was also agent for the London firms 
 of Coutts ; Ransom ; Pybus, Call & Co. ; and Puget ; and 
 for the Provincial Irish Bankers, Newenham ; Pike; and 
 Hewitt of Cork; Newport, of Waterford; &c. In fact, for 
 the space of a century, it was the bank of this country. 
 
 Swift’s Bank, originally in Eustace Street, moved in 1741 
 to Castle Street, to “ two houses opposite the Castle gate.” 
 It ceased to exist in 1746, and was succeeded by the Bank of 
 Thomas Gleadowe and Co. William Gleadowe, the head 
 of the firm about 1770, married a Miss Newcomen, and as- 
 sumed that name in addition to his own. His Bank moved 
 to 19. Mary’s Abbey, in 1777, but returned to Castle Street in 
 1781, to the edifice now occupied by the Hibernian Bank. 
 In the same year he was created a baronet, and in 1800, as a 
 
 Lord Doneraile. 
 
 ,, Farnham. 
 
 ,, Grandison. 
 
 ,, Gormanston. 
 ,, Glandore. 
 
 ,, Lifford. 
 
 ,, Loftus. 
 
 , , Lismore. 
 
 ,, Massareene. 
 
 ,, Maxwell. 
 
 , , Muskerry. 
 
 ,, Mountmorres. 
 ,, Portsmouth, 
 
 Lord Percy. 
 
 ,, Ranelagh. 
 
 ,, Southwell. 
 
 ,, Sherborne. 
 
 ,, Sunderlin. 
 
 ,, Templeton. 
 
 ,, Dillon. 
 
 „ Crosbie. 
 
 ,, Chas. Fitzgerald. 
 ,, Henry Fitzgerald. 
 ,, Robert Fitzgerald. 
 &c., &c. 
 
 &c., &c. 
 
An Historical Sketch . 
 
 7 1 
 
 reward for his vote in Parliament in favour of the Union, he 
 received ^20,000, and his wife was raised to the peerage as 
 Baroness Newcomen, and in 1803 she was advanced to the 
 further dignity of a Viscountess. In 1799 the partners in the 
 bank were registered as Sir William Gleadowe-Newcomen, 
 baronet, Arthur Dawson, and Thomas Gleadowe-Newcomen. 
 
 Joseph Fade and Co., of Thomas-street, took into 
 partnership, in 1738, Isaac or Isacher Willcox and John 
 Willcox, and subsequently John Dawson, and failed on 3rd 
 March, 1755, principally through the dishonesty of Richard 
 Brewer, the cashier. The principal partner in Nuttall and 
 McGuire's Bank, (Nuttall,) was Lord Mayor in 1732. Of 
 Hugh Henry we know nothing beyond that he was the 
 ancestor of an existing Kildare family of wealth and position. 
 
 A Bank was established, in 1739, on Ormond-quay, by 
 William Lennox. He took George French into partnership 
 in 1751, and the Bank ceased in 1755, when both the partners 
 absconded. The creditors were both numerous and respectable, 
 from which we gather that the firm enjoyed a good business. 
 
 The Bank of Malone and Clements — which, in respect to 
 the brevity of its existence, is unique in the history of banking 
 — was established on the 3rd July, 1758. Its partners were the 
 Right Hon. Anthony Malone, the Right Hon. Nathaniel 
 Clements, and John Gore. It granted receipts payable seven 
 days after demand, with interest at the rate of 10 pence per 
 week for each ^100 — a little over 2 per cent, per annum — the 
 interest to commence three days after the date of issue. But 
 neither great names nor terms, meant to be alluring, could 
 endow it with solvency or permanency. It died in the first 
 November of its life, aged 4 months. Clements, undeterred, 
 seems to have started on his own account, for a Bank kept by 
 a person of that name failed in 1760. Malone was a celebrated 
 
72 
 
 Introduction . 
 
 man.* He was Prime Serjeant, and was leading counsel for 
 the Earl of Anglesey, in 1743, in the celebrated Annesley 
 Peerage case — a case which has furnished two novelists — -Sir 
 Walter Scott and Charles Reade — with the groundwork for two 
 romances. 
 
 In 1748, in addition to the houses already mentioned, we 
 find : — 
 
 Richard and Thomas Dawson, of Jervis Street. Henry 
 Mitchell and J. Macarell f of Ormond-quay, both of which 
 failed in 1760, not, we read, from want of means, but from 
 want of money in the country, wherewith to pay the demands 
 on them. This year (1760) drew down all the Dublin Private 
 Banks, with the exception of LaTouche’s and Gleadowe’s ; 
 these alone surmounted the crisis and survived the panic, and 
 these were the only firms which did not issue notes. 
 
 And in 1751 — Theobald Dillon and Sons ; afterwards 
 Thomas Dillon, Richard Farrell (or Ferrall) and Co., of Inns 
 Quay. This firm failed in 1754. 
 
 And in 1760— Thomas Finlay and Co,, of Jervis Quay. 
 
 The public feeling which culminated in the panic of 1760 
 was not of sudden or intemperate growth. The power to issue 
 notes by the private Bankers had been grossly and preposter- 
 ously abused, and the disasters consequent on the reckless 
 
 * Malone, who was son of Richard Malone, of Baronston, a celebrated 
 lawyer and orator, was M.P. for Westmeath. He was appointed Prime 
 Serjeant in 1740, dismissed in 1754, and was appointed Chancellor of the 
 Exchequer in 1757. He was uncle to Edmond Malone, the well known 
 Shakesperian commentator. Clements (son of the Right Hon. Theophilus 
 Clements, M.P. for the Borough of Cavan, and Teller of the Exchequer 
 in Ireland) was also one of the Tellers of the Exchequer, and was Deputy 
 Vice-Treasurer of Ireland. He was father of the first and ancestor of the 
 present Earl of Leitrim. 
 
 f Lord Mayor, 1739. 
 
An Historical Sketch . 
 
 73 
 
 creation of liabilities that could never be paid, came inevitably. 
 In 1753, a Committee of the House of Commons which en- 
 quired into the condition of Banking, reported that the paper 
 in circulation was largely in excess of the assets of the issuing 
 Bankers ; and the following evidence in respect to the state of 
 Banking in Ireland in this year (1753) was given by Mr. 
 William Colvill, a Director of the Bank of Ireland, before a 
 Parliamentary Committee which sat in 1804 
 
 “ I remember perfectly well that in 1753 the circulation of paper in 
 “ Dublin from the private Bankers was so general and extensive that in 
 “ receiving ^1,000 there was not ^10 in gold at that time. I remember 
 “ that exchange was near three per cent, above par ; the consequence of 
 “ which was that the Bankers of Dublin, of whom there were as many as 
 “ there are at present (1804) if not more, were in competition with one 
 “ another to send their specie over to London and to get Bank bills at four 
 “ per cent, above par, bringing a clear profit to that extent. The con- 
 “ sequence of this showed itself in the succeeding year; all the Banks 
 “ failed except Messrs. LaTouche’s and Sir William Newcomen’s (under 
 “ the name at that time of Gleadowe and Co.) ; and these two Banks paid 
 “ off their entire paper.* There followed a total annihilation of bank 
 “ paper in Ireland at that time, and I remember it was said with triumph 
 “ that Ulster, the great seat of our linen manufactory, was safe, because 
 “ she had no such thing as Bank-paper in that province. The conse- 
 “ quences were that exchange fell two or three per cent, under par, and 
 “ the whole circulation of Ireland was turned from paper into gold ; but 
 ** the result was that multitudes of people were ruined. The convulsion 
 “ was exceedingly severe, — many tenants threw up their lands, and there 
 “ was no person connected with the three southern provinces of Ireland, 
 “ that did not suffer either immediately or remotely.” 
 
 In addition, the commercial morality of the Bankers was at a 
 low ebb. In those days there were few channels for the in- 
 vestment of monies, and lending it on Discounts was an un- 
 satisfactory trade in a poor and unsettled country. Therefore, 
 we find that the Bankers were addicted to investing all surplus 
 cash they held — that is, all their deposits and all received on 
 
 These were not issuing Bankers. 
 
 F 
 
74 
 
 Introduction. 
 
 account of their note issues which was not lent nor used for 
 every day purposes — in land. They purchased estates — and 
 landed estates were not always an immediately realisable asset ; 
 it was an almost useless asset as far as meeting a run was con- 
 cerned. This practice of sinking their funds in realty was 
 recognized as an evil that should be counteracted ; and to this 
 end the Bankers’ Act (33 Geo. III., c. 14), which was the 
 principal enactment for the regulation of Bankers in Ireland, 
 was passed in 1759. The object of the statute was to endea- 
 vour to protect the public against the frauds of Bankers, who 
 used to thus acquire, and then alienate, estates, to the detriment 
 of their creditors ; and to fix the manner of winding up insolvent 
 or bankrupt Bankers. By it all deeds of conveyance executed 
 by Bankers are declared void unless registered within one 
 month after execution, or within three months if executed out 
 of Ireland— except leases not exceeding three lives or 31 years, 
 made at the full improved rent without fine. All grants of real 
 estate or leasehold interest made by Bankers to their children 
 or grandchildren, although made for a good consideration, are 
 void against creditors, and although such creditors were not 
 creditors at the time of the making of such grants ; the receipt 
 of a Banker given after he has stopped payment is no discharge ; 
 and the conveyances of Bankers who have absconded are void, 
 and their estates and effects are subject to their debts, without 
 regard to priority (except in case of debts incurred before they 
 became Bankers, or of those duly registered) ; and the persons 
 of such absconding defaulters are only protected in case they 
 are Peers or Members of Parliament. Within three months 
 after stopping payment a Banker may invest his estates in 
 trustees to be approved by the majority of the creditors or by 
 the Lord Chancellor. No person entrusted with the public 
 money was allowed to become a Banker. No Banker was 
 
An Historical Sketch . 
 
 75 
 
 allowed to issue notes bearing interest ; but if the issued notes 
 were not paid on demand, the holder could claim interest until 
 the date of payment. All demands upon Bankers must be 
 made within three years after they have stopped payment or 
 ceased to transact business, and if the creditor fails in making 
 his demand within the said three years, he shall be barred 
 from suing in law or equity ; and the Banker, in the event of 
 his being sued by any creditor after the expiration of the said 
 three years, can plead payment and discharge of liability, and 
 give this Act in evidence. 
 
 But notwithstanding the attempts of the legislature, failures 
 were not prevented. In 1764 we find the Bank of Sir George 
 Colebrooke, Bart., and Co., was doing business in Mary’s- 
 abbey. This was a branch of a London Bank of the same 
 name, which, established about 1720 as James Colebrooke and 
 Co., behind the Royal Exchange, was Sir George Colebrooke, 
 Burns, and others, about this period. The Dublin house sus- 
 pended payment in 1770, and the panic engendered thereby 
 grew to such dimensions that the Lord Lieutenant and a 
 number of the nobility, gentry, and merchants issued a mani- 
 festo wherein the solvency of some of the other Bankers was 
 vouched, and a declaration made of their willingness to receive 
 the notes of these houses in lieu of cash payments. The 
 Banks whose credit was thus guaranteed, and which alone out- 
 lived this panic, were — LaTouche’s, Gleadowe’s, Finlay’s, and 
 Dawson’s. 
 
 In 1797 there were altogether but nine private Bankers in 
 Ireland, of which three were in Dublin — LaTouche’s, 
 Gleadowe’s and Finlay’s. Over-issuing had wrought panics ; and 
 panics, and the Rebellion, and the scarcity of coin in the country 
 had swept the majority of the private Banking Firms into the 
 limbo of bankruptcy. But unhappily, after the Rebellion, new 
 
Introduction. 
 
 76 
 
 establishments called Banks sprung up throughout the country. 
 In Dublin John Claudius Beresford and Co. were, in 
 1798, established at Beresford-place. This Bank is notable 
 for the circumstance that the populace, to wreak their vengeance 
 on the unpopular Beresford, collected all his notes and burned 
 them in order to ruin him . Sir Thomas Lighton, Bart., 
 Thomas Needham, and Robert Shaw, was also estab- 
 lished in the same year in Foster-place. This firm became Sir 
 Robert Shaw. Bart., and Co., and was ultimately merged in the 
 Royal Bank. In 1804 William Williams and Robert 
 Finn, which had been established in Kilkenny in 1800, moved 
 to Dublin and had its offices in Dame-street. This establish- 
 ment failed in 1820 for ^300,000 ; and Sir John Newport, in 
 evidence before the Lords in 1826, positively swore it was 
 never worth a shilling and had commenced on no capital 
 whatsoever. Lord Ffrench’s Bank, and Alexander’s 
 Bank — two other Dublin concerns which enjoyed a 
 great business and a great circulation — also failed in 1-820, 
 Alexander’s owing half a million. The panic of 1820 made 
 havoc of the private bankers throughout Ireland, and a few 
 years later saw Joint Stock Banks established, and the progress 
 of Joint Stock Banking was fortunately a prevention of the 
 birth of new private firms. 
 
 In 1826, LaTouche’s, Finlay’s, Shaw’s, and the newly-estab- 
 lished Ball and Co. of Henry-street were the private Dublin 
 Banks. Finlays, which flourished for many years in the office 
 which is now the counting house of Messrs. Todd and Burns, 
 went under in the panic of 1835-6. Shaw’s, as has been said, 
 was purchased in 1836 by the Royal Bank, and LaTouche’s by 
 the Munster Bank in 1870. Ball and Co. is now the premier 
 private bank in Dublin. Boyle and Co., who are Stock 
 Brokers and Notaries as well as Bankers, and Guinness, 
 
An Historical Sketch . 
 
 77 
 
 Mahon and Co., who are also land agents, were established 
 about 1832 ; and these three firms are now the sole surviving 
 representatives of private banking in Ireland. 
 
 Private banking firms were numerous throughout the country 
 during the latter portion of the last and early in the present 
 century. Many of them were extremely respectable — many no 
 better than peddlers in money ; some of them were disreputable 
 — nearly all were extremely insolvent. A history of the Rise 
 and Fall of Irish Country Banks at this period would be a 
 continuous record of note-issues, panics, failures, and bank- 
 ruptcies. It is a matter for amazement that the people can 
 have been so credulous as to place any trust in these banks, 
 their failures were so frequent, their note issues so often 
 proven to be worthless. In 1799 there were seven banks in 
 Wexford ; four in New Ross ; four in Galway — all issuing their 
 notes in careless profusion. Panics were, of course, of fre- 
 quent occurrence. In 1804, 1810, and 1814 numbers of those 
 bankers failed ; and in 1820 the crowning panic occurred 
 which effectually stopped this reckless and dishonest establish- 
 ment of firms of note-issuers. 
 
 In 1784 a Bank was established in Belfast, the operative 
 principle of which was to have a very restricted paper currency, 
 and to make its payments in gold almost exclusively. It was 
 suspended in 1798. In 1793 a Banking Company, called the 
 Belfast Discount Company, was founded in the Northern 
 Capital, the partners being Messrs. Thompson, Bradshaw, 
 and MTlwaine, trading under the title of Robert Shaw and 
 Company. The firm changed to the style of Gilbert MTlwaine 
 and Company in 1800. Besides these there were three other 
 Banks in Belfast— the Commercial Bank, the Northern, 
 and the Belfast. The joint circulation of thesethree Companies 
 was estimated at ,£225,000, when, owing to the scarcity of 
 
7 8 Introduction . 
 
 gold in the country, they failed in 1797. Among the more 
 respectable provincial bankers were Simon Newport and Co., 
 of Waterford, which was established about 1775, and existed 
 till 1820. 
 
 In Cork, in 1775, Travers, Sheares, and Travers was 
 
 flourishing, and is now remembered because the Sheares of 
 the firm was father of John and Henry Sheares, who were 
 executed during 1798. In 1799 Sir James Cotter, Bart., 
 and Co. and Sir Thomas Roberts, Bart, and Co., were 
 the chief Cork firms. Maunseirs in Limerick (which failed 
 in 1820), and Redmond’s in Wexford were also respectable 
 concerns. In 1800 three more Banks were registered 
 in Cork, Newenham’s, Roche’s, and Pike’s ; and in 
 Fermoy, John Anderson’s. In 1801 Delacour’s in Mallow 
 was registered ; it was the last private provincial Bank ; it 
 failed in 1835. In 1803 Scully’s in Tipperary was estab- 
 lished. In Tuam, Lord French’s Bank flourished, and 
 subsequently moved to Dublin. 
 
 But besides these there were scores of others, the careers of 
 which were briefer, the positions of less importance, and 
 the memories even more unfortunate. Banking was a pursuit 
 open to all, and not confined to persons of social distinction, 
 personal worth, or financial strength. Humble folks, seeing 
 that a Banker required no capital when he started, and that 
 when he collapsed he was generally wealthier than when he 
 began, adopted the business, and — in addition to the registered 
 banks, which were mainly kept by respectable members of 
 society — most of the little shopkeepers and publicans — more 
 especially in the South — could, and did, issue their I. O. U.’s, 
 call them, with a cunning ignorance of the paradox, “ silver 
 money,” and call themselves Bankers, and their little shop a 
 Bank. The records of the “ Barking” of some of these im- 
 
An Historical Sketch . 
 
 79 
 
 postors would be ludicrous were it not a thinly veiled system 
 of robbery and swindling. They issued 44 notes” for sums as 
 low as 3d., and, with too much success, deluded the ignorant 
 country folk. But the chiefest evil to the country was wrought by 
 the regularly constituted registered Banks. One fact will convey 
 much of the condition of the paper issues of Ireland’s Bankers 
 in 1803. The total stamp duties paid for the notes and post 
 bills issued that year by 41 firms of private Bankers were 
 as follows : — 
 
 Three halfpence. Three pence. Four pence. 
 
 1,110,217. 256,801. 90,265. 
 
 The three halfpenny duty was on all notes 
 under three guineas ; if we average the 
 amount at two guineas, the duty repre- 
 sents an issue of 
 
 Those under £\o required a threepenny 
 duty. An average of per note would 
 be... 
 
 Those under ^50 required a fourpenny 
 duty. An average of £20 would repre- 
 sent 
 
 ^2,220,434 
 
 1,284,005 
 
 1,805,300 
 
 Or a total note and bill issue by private firms 
 
 in 41 places of business of ... ... ^5,309,739 
 
 The present (January. 1880) issue of all the 
 Irish joint stock banks with 396 places of 
 issue is .... ... ... ... ^6,031,550 
 
 A contrast of the two statements is, perhaps, the most 
 effective commentary on Irish private Banking eighty years 
 ago. 
 
8o 
 
 Introduction. 
 
 X. 
 
 IRISH JOINT STOCK BANKS. 
 
 THE BANK OF IRELAND was established by the 21 and 22 
 George III., cap. 16, an Act passed in 1782, on principles 
 somewhat similar to those upon which the Bank of England 
 was founded. The capital was to be ;£6oo,ooo, which was 
 to be lent to Government at 4 per cent. The Bank was 
 not to charge more than 5 per cent, for money lenr, nor was 
 it to undertake or engage in any business other than Banking 
 as defined in its Charter. The Charter was granted on 15th 
 May, 1783, and by it the Bank obtained a monopoly of 
 Joint Stock Banking, as it restricted the constitution of all 
 other Banks of issue to six partners each. The individual 
 Stockholders, though not burdened with unlimited liability, 
 are nevertheless, under the Act, answerable to the extent of 
 their means to the creditors, in case of the downfall of the 
 establishment, in proportion to their subscriptions. The Subscribers 
 were to constitute a Corporation, of which there should be a 
 Governor, whose qualification was a holding of ^4,000 Stock ; 
 a Deputy Governor, with a holding of ^3,000 ; and fifteen 
 Directors, with an individual holding of ^2,000. 
 
 The Bank commenced business in Mary's Abbey, on 25th 
 June, 1783. The first Governor was David LaTouche, 
 junior, and amongst the Directors were Messrs. John and Peter 
 LaTouche, Colvill, D’Olier, Jaffray, Hoffman, &c. In 
 1791 the capital was increased to ^1,000,000, the additional 
 ^400,000 being also lent to Government. In 1797 it was 
 
An Historical Sketch . 
 
 81 
 
 further increased to ;£i, 500,000, and in the same year the 
 Bank was allowed to suspend payment of its notes, the 
 circulation at the time being ^622,000. In 1799 it obtained 
 the monopoly to issue notes of amounts from 20s. to jQ 5. 
 In 1800 the Union was accomplished and the Houses of 
 Parliament were left derelict till 1802, when the buildings 
 were sold to the Bank for ^40,000 Irish currency. In 1808 
 the capital was increased to ^2,500,000, and by the same 
 Act (48 Geo. III., cap. 103) the management of the public 
 debt was given to the Bank, and it was to pay the Dividends 
 thereon without expense to the Government. In 1821 the 
 Capital was further increased to ^3,000, 000, * its present figure, 
 and the set-off for the advantage of the augmentation to the 
 Capital was the abandonment of the monopoly whereby more 
 than six persons were precluded from forming themselves 
 into a Banking Company. 
 
 But the ostensible abandonment of this monopoly was 
 accompanied by certain provisions in respect to the partners 
 of any new Banking Company that might be established, 
 of such a character that the concession it appeared to make 
 operated as a confirmation, rather than a reversal, of its 
 monopoly privileges ; and when the legal effect of the proceeding 
 was understood, the Bank was vigorously denounced for having 
 “ broken faith with Parliament and the Public. ” 
 
 The Bank had not at this period any Country Branches. 
 For over forty years it enjoyed its monopoly entirely for its 
 own advantage and not in the interests of the country, and 
 when it did open Branches its design was not to benefit the 
 people but to try to discourage a rival. We have never seen 
 any defence of the Bank’s position during the first forty years 
 
 Irish currency — equivalent to ^2,769,230 sterling. 
 
82 
 
 Introduction . 
 
 of its career. It saw the country ruined with the corrupt and 
 valueless issues of the private Bankers, but it never made any 
 move to protect the people in the provinces from the depreda- 
 tions of these firms. The losses to the people of Ireland 
 from about 1770 to 1820, through the paper money of the 
 private Banks, has been estimated at ^20,000,000, and the 
 Bank of Ireland, during the greater part of this period, had 
 the monopoly of that description of Banking which offered 
 some security to the public. But it did not open any 
 Branches and resented so strongly the opening of Country 
 Offices by another Bank that it put in motion all its powers 
 of oppression and suppression to prevent an interference 
 with its privileges. It was the Provincial Bank that fought 
 the Bank of Ireland on the occasion, and therefore, to the 
 Provincial Bank we are in a measure indebted for the present 
 position and extent of Banking in Ireland. 
 
 The circulation of the Bank, which in 1797 amounted to 
 ^621,919, rapidly increased, owing to the failures of the 
 private Bankers and the withdrawal of their notes from 
 circulation. In 1808 it reached ^£2, 827,000 ; in 1813, 
 ^4,212,600 ; in 1821, .£5,182,600; in 1825, ,£6,309,300. 
 The establishment of Joint Stock Banks of Issue throughout 
 the Country, diminished its circulation considerably. In 1848 
 it had dwindled down to ^3, 100,000, and at present, with 
 an authorized issue under the Act of 1844, of ^3,738,428, 
 the actual amount of notes in circulation is about ^2,750,000 
 only. From 1784 to 1799 the dividend paid oscillated 
 between 5 and 6 per cent. In 1800 it was 7 per cent. From 
 1809 to 1814, 7^ per cent. In 1829, on its capital of 
 ^3,000,000, it paid 10 per cent., and from 1829 to 1835 ^ 
 distributed 9 per cent. In 1872 the dividend rose to 13^ 
 per cent. ; ot late years it has been at the rate of 12 per cent., 
 
An Historical Sketch . 
 
 83 
 
 and in 1S79 it was n per cent. Over and above the divi- 
 dends, bonuses to the amount of ^800,000 have been 
 distributed amongst the proprietors. The Bank publishes no 
 Statement of Accounts. 
 
 The Provincial Bank. — By the 6 George IV., c. 42, 
 the enactment which prevented the formation of Banks with 
 more than six partners to carry on business within fifty miles 
 of Dublin, was repealed. Previous to this, however, in 1824, 
 the Provincial Bank was established. It was mainly an 
 English Company, the Board being chiefly residents in London. 
 Its subscribed Capital was ^.2,000,000, in shares of ^100. 
 In May, 1826, it had opened the following Branches, all 
 beyond the fifty mile radius from Dublin— Cork, Limerick, 
 Clonmel, Londonderry, Sligo, Wexford, Belfast, Waterford, 
 and Galway. It issued notes; and in these early days of 
 antagonism the Bank of Ireland required gold from the 
 Provincial Bank in payment of its Bank notes, but refused 
 to redeem its own notes in gold to the Provincial Bank. 
 Whereupon the Provincial Bank, on 17th August, 1825, 
 in Clonmel, protested a Bank of Ireland note for ^100, 
 with the ulterior object of a civil action. These proceed- 
 ings seem to us now to be childish and petulant on 
 both sides, but undoubtedly the course of oppression 
 pursued by the Bank of Ireland towards the Provincial Bank 
 warranted and necessitated the action of the latter. The 
 Provincial Bank notes were payable in Dublin at LaTouche’s 
 Bank, and the Bank of Ireland construed this agency for 
 note paying as a violation of its privileges, and on 5th December, 
 1823, it brought a vexatious action against the Provincial Bank 
 therefor and obtained a verdict with sixpence damages 
 Through the action of the Provincial Bank, the Act which 
 abolished notes under £5 in England was not extended to 
 Ireland. 
 
8 4 
 
 Introduction. 
 
 In its earlier years the Provincial Bank paid a dividend 
 of 4 per cent. In 1831 it was increased to 5 per cent. ; in 
 1833 to 6 per cent. ; in 1834 to 7 per cent. ; in 1835 to 
 8. In 1836 it had thirty-three Branches in operation, and 
 its business was extending so surely that the paid-up Capital, 
 which had hitherto been ^500,000, was increased to 
 ^540,000 (its present amount) by the creation of 4,000 new 
 shares of ^£io each, which were fully paid up. From 1859 to 
 1874 a dividend of 20 per cent, was paid ; in 1875 one of 18 
 per cent. ; and since, 1 5 per cent, per annum has been dis- 
 tributed. The Provincial Bank does not publish its accounts. 
 
 The Hibernian Bank was projected in 1824, under 
 the title “ The Hibernian Joint Stock Loan and Annuity 
 Company,” by prominent Catholic Dublin gentlemen, 
 and its object was to provide a Catholic Bank for 
 Catholic customers, and thereby to maintain on their 
 behalf the exclusiveness into which the laws and narrow 
 prejudices of the day drove them. The Capital was and is 
 ^^000,000, in ^100 shares, of which ^25 is paid up. It 
 has never issued notes. It did not originally grant interest 
 on money deposited, and it charged discount at the rate of 
 5 per cent, per annum. It issued no post Bills, nor did it 
 allow interest on cash balances. It paid a dividend of 4 per 
 cent, from its establishment to 1839, when it increased it 
 to 5 per cent., which was paid down to 1848. Twelve per 
 cent, was paid from 1872 to 1876 ; n in 1878 ; 9 in 1879. 
 The Bank narrowly escaped being wound up in 1827, but 
 surmounted its difficulties and enjoyed a very good business 
 in its sole office (Dublin) for many subsequent years. It 
 had the entire of the Catholic business of the city, and had 
 no rivals there, except the Bank of Ireland and the private 
 Bankers, till the establishment of the National Bank in Dublin 
 
An Historical Sketch . 85 
 
 in 1843, for the Royal Bank, which was established in 1836, 
 did not interfere much with its exclusive business. The Hi- 
 bernian purchased the Dublin and some other offices of 
 the Union Bank of Ireland in 1867. 
 
 The National Bank. — The National Bank was formed 
 in 1834 under the title of “ The National Bank of Ireland,” by 
 Daniel O’Connell and others, with the object of being a Bank 
 for the People, and an engine to assist the movement for 
 Repeal of the Union. With the exceptions of O’Connell, his 
 son Maurice, and Mr. C. Fitzsimon, the Directors were English- 
 men. The conditions of the establishment were notably 
 that a Branch should be formed in each suitable town in 
 Ireland, and that the profits of each Branch should be divided 
 amongst the local shareholders; and until the year 1850 the 
 Carrick-on-Suir and Clonmel Branches were separate establish- 
 ments in almost every particular. There were to be local 
 Directors to each office. The capital was to be ^1,000,000 in 
 shares of ^50 each. The first Branch opened was at Carrick- 
 on-Suir on 28th January, 1835. The Dublin office was opened 
 in 1843, and the Bank commenced to issue notes in Dublin 
 in 1845. 
 
 In 1848 it absorbed the business of the London and Dublin 
 Bank, a Bank established in 1842 by a Mr. Medley. In 1856 
 it commenced to transact Banking business in London (the 
 office there having hitherto been a mere place of meeting for 
 the Directors, and a Head Office for receiving and checking the 
 accounts of the Branches), and it further opened seven Metro- 
 politan Branches. The title was then changed to “ The 
 National Bank ” and the Paid up Capital increased to 
 ^1,500,000. In the earlier years of its career the return to 
 the shareholders was about 5 per cent. The Dividends paid 
 from 1859 to 1867 were at the rate of 13^ per cent. For 
 
86 
 
 Introduction . 
 
 causes unnecessary to recapitulate, under a new management 
 they fell to 7 per cent, in 1869, and increased to 8 per cent, 
 in 1871, to 9 in 1872, to 10 in 1873, to 11 in 1874, to 12 in 
 1876. In 1879 11 per cent, was paid. 
 
 The Royal Bank. — The deed of settlement of the Royal 
 Bank is dated 1st September, 1836, and on the 26th September 
 the newly established concern took over the Private Bank of 
 Sir Robert Shaw, Bart., & Co., which had carried on business 
 in Foster Place since 1799. The Royal Bank was a Bank 
 of Deposit and Discount only. It had no note issue, and 
 originally had no branches, though at present it has four city 
 ones and one in Kingstown. The capital was and is ^1,500,000 
 in 30,000 shares of ^50 each, upon which ^10 per share has 
 been paid up. The Bank rapidly developed a good and 
 prosperous business. In its third year of existence it had over 
 
 1, 500, 000 in discounts, and paid a Dividend at the rate of 
 5 per cent, per annum 011^208,850, the amount of the capital 
 paid up at the time. In 1848 the paid-up capital stood at 
 ^209,175; the Reserve Fund at ^45, 475; the year’s net 
 profit was ^19,877, of which ^10,458 was appropriated to 
 a dividend of 5 per cent, per annum. The Dividends of late 
 years have been as follows: — 12 per cent, in 1870; 13 in 
 1872; 15 in 1873; *4 i n 1875; l 5 * n 1876 ; 14 in 1879. 
 The first Manager of the Bank was Mr. Charles Copland, 
 who is at the present day the Managing Director. 
 
 The Munster Bank (Limited) was originally projected 
 as The National Investment Company (Limited), in Cork, but 
 was established as a Bank in 1864 with its Head Office in 
 Cork, and its Directors were exclusively Cork gentlemen. Its 
 Branches were at first confined to the Southern Province 
 but subsequently were spread over Leinster. It took over 
 
An Historical Sketch. 
 
 87 
 
 the business of the European Bank* in Dublin in 1865, and 
 it purchased some of the country branches of the Union 
 Bank of Ireland in 1867. In 1870 it obtained by purchase 
 the business of LaTouche’s Bank. The capital was 
 ^1,000,000, in 100,000 shares of jQ 10 each, upon which 
 ^3 10s. has been paid up, but during the present year (1880) it 
 has been increased by ^500,000 by the issue of 50,000 New 
 Shares. In December, 1865, it paid a Dividend of 6 percent. ; 
 in 1870, 8 per cent.; in 1871, 10 percent.; in 1872, 12 per 
 cent., which rate it continued till 1879, when it relapsed to 
 10 per cent. The Bank has no note issue. 
 
 The Northern Bank is the oldest Irish Joint Stock 
 Bank. It was originally a Private Bank under the same name, 
 and was incorporated as a Joint Stock concern in 1825. Its 
 early years seem to have been very prosperous, as a bonus of 
 £$ per share was added to the capital in 1839 ; a bonus of 
 £2 per share was distributed amongst the shareholders in 
 1853; one of jQ 1 per share in 1861 ; one of £ 2 in 1864, 
 1865, and 1866; one of jQi 4s. 6d. in 1867, and smaller ones 
 in subsequent years. The Dividend has been as high as 1&V2 
 per cent, in 1871, and latterly it has been at the rate of 1 5 per 
 cent. 
 
 The Belfast Bank, like the Northern, was formed on 
 a private Bank of the same name. It was founded in 1827, 
 and incorporated in 1865. Its paid-up capital is but ^250,000 
 in old and new shares, and a uniform Dividend of 20 per 
 cent, has been paid on the old shares for some years. The 
 Belfast Bank issues no public Balance Sheet. • 
 
 The Ulster Bank was established in Belfast in 1836, 
 
 * A Bank called the English and Irish Bank, which had purchased the 
 business of Gray & Son, private Bankers in College Green, was merged in 
 the European Bank. 
 
88 
 
 Introduction . 
 
 and a branch was opened in Dublin in 1862. The Dividend 
 and bonus paid to shareholders in 1864 was 16 per cent. ; in 
 1865, 18; in 1866, 1867, 1868, 1869, and 1870, 20 per cent. ; 
 in 1871, 18 per cent.; in 1872 and 1873, 22 per cent.; and 
 since then 20 per cent, has been divided. The Ulster Bank 
 publishes its Balance Sheet. 
 
 The following is a table of the Irish Joint Stock Banks ; 
 their number of Branches ; Capital — subscribed and paid-up ; 
 note circulations as authorised by the Act of 1844; and the 
 average circulation during the four weeks ending 17th January, 
 1880. 
 
 NAME. 
 
 
 No. of 
 Branches 
 
 Capital. 
 
 Circulation. 
 
 Date 
 
 and Sub- 
 
 
 
 
 
 
 
 Branches 
 
 Subscribed 
 
 Paid-up 
 
 Authorised 
 
 Average 
 
 Bank of Ireland 
 
 1783 
 
 59 
 
 2,769,230 
 
 2,769,230 
 
 3,738,428 
 
 2 , 703,975 
 
 * Hibernian 
 
 1824 
 
 52 
 
 2,000,000 
 
 500,000 
 
 — 
 
 — 
 
 Provincial 
 
 1824 
 
 47 
 
 2,040,000 
 
 540,000 
 
 927,677 
 
 727,887 
 
 Northern 
 
 1824 
 
 69 
 
 961,538 
 
 300,000 
 
 243,440 
 
 443,525 
 
 Belfast 
 
 1827 
 
 57 
 
 1,000,000 
 
 250,000 
 
 28l,6ll 
 
 407,719 
 
 National 
 
 1835 
 
 116 
 
 2,500,000 
 
 1,500,000 
 
 852,269 
 
 1,138,054 
 
 Ulster 
 
 1836 
 
 48 
 
 1,200,000 
 
 300,000 
 
 311,079 
 
 610,390 
 
 * Royal 
 
 1836 
 
 5 
 
 1,500,000 
 
 300,000 
 
 — 
 
 — 
 
 *Munster 
 
 1864 
 
 44 
 
 1,500,000 
 
 525,000 
 
 ~ 
 
 — 
 
 The foregoing are the Joint Stock Banks at present estab- 
 lished in Ireland. There have, however, been others founded, 
 which have disappeared. Some have merged in other banks ; 
 some of them have hardly left a memory, they had such a 
 transient existence ; while some can never be forgotten, their 
 collapses were so destructive and disgraceful. Want of 
 support ruined some; folly and ignorance, more; fraud, 
 others. 
 
 The London and Dublin Bank was founded in 1842 
 by a Mr. Medley, who was connected with the Provincial 
 
 These are not Banks of Issue. 
 
An Historical Sketch . 
 
 89 
 
 Bank. It had a nominal capital of about ^1,000,000. It had 
 branches in Athy, Carrickmacross, Dundalk, Kells, Mullingar, 
 Parsonstown, and Wicklow ; and in 1848 it merged in the 
 National Bank of Ireland. The Union Bank of Ireland, 
 after an unsuccessful career of a few years, was purchased in 
 1867— the Southern Branches by the Munster Bank, the Dublin 
 and some of the Leinster branches by the Hibernian. 
 
 The following establishments failed 
 
 The Agricultural Bank.— This concern was projected 
 in 1834 by Mr. Thomas Mooney, a baker in Dublin, Mr. John 
 Chambers, and Mr. James Dwyer. The Paid up capital was 
 ^1,000,000, in 1,000,000 shares of £> l each. Before the 
 end of 1835 it had twenty-two Branches in operation. The 
 general manager was Mr. Wm. Mitchell, who was subsequently 
 connected with the ill-fated Western Bank of Scotland. The 
 Reports were of a gaudy description and superlatively optimist. 
 Mismanagement, incompetence, and fraud ruined the concern, 
 and it stopped payment in 1836, hopelessly insolvent. 
 
 The Southern Bank of Ireland was established in Cork 
 upon the failure of the Agricultural Bank. It commenced 
 operations in July, 1837, and stopped payment two months 
 after. It was a Bank of Issue. 
 
 The Provident Bank was a creation of Mr. Thomas 
 Mooney, the same gentleman who projected the Agricultural 
 Bank, and a Mr. W. H. Holbrooke. It was established in 1840, 
 and stopped payment after a few months. 
 
 The Tipperary Bank. — The Tipperary Bank, better known 
 as Sadlier’s Bank, was established upon the foundation of 
 Scully’s private Bank, in the year 1839, by Mr. John Sadlier, 
 a young man then aged twenty-seven. His family was respect- 
 able and wealthy, and was related by marriage to the Scullys 
 
 G 
 
go 
 
 Introduction . 
 
 John Sadlier was a solicitor, and practised as such in Dublin, 
 and afterwards in London as a Parliamentary agent. 
 
 The Tipperary Joint Stock Bank was an immediate success. 
 Under the auspices of the family connection it obtained a great 
 amount of the Deposits of the rich farming classes of the county 
 Tipperary, but the discounting was principally in sums of great 
 magnitude to land owners who could mortgage their property. 
 Mr. John Sadlier, his brother James, and Mr. Wilson Kennedy 
 were the three Directors. What the capital was we have not 
 ascertained, but in 1848 a dividend at the rate of 6 per cent, 
 was declared, and ^2,513 added to the doubtful debt fund. 
 
 Mr. John Sadlier was M.P. for Carlow, and subsequently for 
 Sligo, and James was M.P. for Tipperary. John, in the 
 financial world of London, played a prominent part, and oc- 
 cupied a conspicuous position. He became Chairman of the 
 Royal Swedish Railway Company, Director of the East Kent 
 Railway and of several other enterprises, and Chairman of the 
 London and County Bank. He was appointed a Junior Lord 
 of the Treasury, and was the cynosure of the Irish Brigade in 
 Parliament. The business done by the bank was large, 
 respectable, and remunerative ; but the amount it held from the 
 public was at the disposal of, and disposed by, John Sadlier in 
 his London projects and enterprises, and the available resources 
 were yearly diminishing, until in 1856 they ran dry. 
 
 In February, 1856, the Tipperary Bank Drafts were dis- 
 honoured by Messrs. Glyn & Co., the London agents, and a few 
 days after, bn the 17th February, John Sadlier’s body was found 
 on Hampstead Heath, dead from poison self-administered. The 
 Bank had smashed ; and it was discovered that Sadlier had been 
 engaged for years in a career of robbery, forgery, and fraud. 
 The defalcations under these frauds were estimated at 
 ^*1,250,000, and the deficiency in the assets of the Bank was 
 
An Historical Sketch , 
 
 9i 
 
 considerable. It has never been satisfactorily ascertained 
 what became of these vast sums, for John Sadlier lived 
 frugally and unostentatiously. The dividends paid to the cre- 
 ditors (the last of which was paid in 1879) have already reached 
 7s. 1 id. in the £1. The Bank had many Branches, and the 
 excitement occasioned a panic which was the greatest that ever 
 occurred in Ireland. An article of the London Times published 
 shortly after his death referred to him and his transactions in 
 the following terms — “John Sadlier was a national calamity. 
 It is not often that an individual rises to a position of such 
 infamous notoriety ; but the truth' is, now that the whole story 
 of his frauds is beginning to assume shape and form, that the 
 prosperity of a province has received a severe shock from his 
 proceedings. He has forged title-deeds of estates, he has forged 
 private acceptances and securities, and by his connexion with 
 the Tipperary Bank he has contrived to swindle the population 
 of the South of Ireland to an amount which is already stated at 
 ^400,000, and which will probably reach the full proportion of 
 the half million.” 
 
92 
 
 Introduction . 
 
 XL 
 
 CONCLUSION. 
 
 THE existing well-developed system of Banking is the natural 
 amplification and expansion of those primitive practices which 
 were the necessary creation of commerce and money-dealing. 
 A strong and secure place where valuable property could be 
 deposited with safety, where risk and apprehension of plunder 
 and loss were minimised, and where the person depositing 
 remunerated the custodian for the care-taking, has been 
 succeeded by an establishment where the depositor is paid 
 for having his money taken care of, and from which ideas 
 of risk and apprehension are almost eliminated. The Gold- 
 smith and Money-Changing businesses have been relinquished 
 and left to traders and brokers. A Bank is something higher 
 than a mere strong room and a barter house, and usury is 
 replaced by a Bank of England rate. Banking has become 
 a science. 
 
 The word “ Bank” is popularly supposed to be derived 
 from the Italian Banco , a bench. The root of the word, how- 
 ever, appears in Anglo-Saxon and in all the Latin languages, 
 and the Italian word is said to be derived from the German, 
 and the German from the Low Latin. The original meaning 
 of the word banc in the Anglo-Saxon and Dutch languages was 
 a hillock , a heap. It was transferred to mean any elevated or 
 eminent place for sitting, and was applied to express a bank 
 of oars, and a bench of rowers. It thus came to be applied 
 generally to the seats of the moneychangers in the later Roman 
 
An Historical Sketch . 
 
 93 
 
 market-places, as those persons occupied more elevated seats 
 than the common traders. The word was next applied specifi- 
 cally to the tables at which they sat and to their occupation, 
 as Mensarii was the designation of the Bankers in classic 
 Rome, from mensa , a table . The word Bankrupt is usually 
 deduced from the French banque route , which is derived from the 
 Italian banco and rotto — a broken Bank. But the old French 
 idiom conveying the expression of bankruptcy is qui font banqae 
 route — translated literally in the first English Bankruptcy Law 
 (34 Hen. VIII., c. 4) as “ such persons as do make bankrupt,” 
 This French word route is, however, rendered by vestigium, , a 
 track or mark ; and as cart route is the mark which the cart 
 wheel has left, so banque route is the mark which the banque or 
 bench has left. The explanation offered for this derivation is 
 in the circumstance that when in Rome the Banker failed or 
 absconded he took his bench with him, or else that it was 
 removed by the authorities and nothing left but the route or 
 sign and mark where it had been. Others say that the ab- 
 sconding or failing Banker had his table broken ( ruptus ) by the 
 exasperated populace. At all events it seems allowed on all 
 sides that banque or banc or banco , meant a bench or table,* 
 and that our modern word Bank is derived therefrom, 
 
 The functions of a Bank at the present day are not only 
 manifold and of paramount importance, but are of vast benefit 
 to the community individually and to the country at large. A 
 Banker is the intermediary of capital. He borrows money 
 from those who have it — to their advantage, — and lends it to 
 those who legitimately require it — to their advantage. By his 
 means the numberless sums, large and small, which would be 
 unproductive and unused in the possession of individuals are 
 
 * “Overthrew the tables of the money-changers,” — Matt. xxi. 12 * 
 
94 
 
 Introduction . 
 
 amassed together, and the Banker employs the amount in 
 lending it at interest, thereby increasing the capital of manu- 
 facturers, traders, and farmers, who utilise it for the purposes of 
 advancing commerce and developing trade. Thus these monies, 
 which without his intervention would be unused, are gathered 
 together and made to increase the productive capital of the 
 Kingdom. The country if it is not positively so much richer, is 
 negatively so — for it is saved from being so much poorer. He 
 lends out the money deposited with him, at a greater rate than 
 he allows to those from whom he receives it, and the margin 
 constitutes his main profit. It is thus apparent that the com- 
 mon phrase of statisticians— “ so many millions in Banks” — is 
 not correct, for the millions are not in the Banks but lent out 
 over the country. Therefore the amount that Banks apparently 
 hold on Deposit Receipt is an unreliable index, or no index at 
 all, of “the wealth of the country.” Indirectly, however, it is 
 a criterion, for, presumably, if the country was not solvent and 
 prosperous the Banks would not lend out the millions it has 
 on deposit. These sums must be either lent or not lent. If 
 lent, the country is prima facie prospering, for the classes re- 
 quiring temporary use of capital are solvent; if not lent, prima 
 facie those classes are not solvent, and thus it is possible that 
 the amount of deposits in Bank may be greater when the wealth 
 of the country is less. To cite a possible case, and not an 
 extreme one : A. has possessed a certain business, which a few 
 years ago, as a going business, was valued at ^30,000 — his then 
 profits being the basis of the estimate. This year, after a few 
 depressed and unsuccessful seasons of trading, he discontinues 
 his business— sells the interest of it for ^5,000, or say ^10,000, 
 which amount he places with his Bankers on Deposit Receipt. 
 Statistically, then, the “ wealth of the country” has increased 
 ^10,000. In reality, it has decreased considerably. Again, 
 
An Historical Sketch . 
 
 95 
 
 a more usual case : A., a wealthy person, overdraws his account 
 and lends to B., who places the amount on deposit. Again 
 the “wealth of the country’’ from a statistician’s view-point 
 has increased, though in reality there is no increase. Thus 
 such statistics cannot be deemed to be conclusive on the 
 subject of the national wealth. 
 
 Besides the amount he has received on Deposit Receipt 
 and Current Accounts, the Banker has the capital of his Bank 
 to trade on. Though the money he holds from the public is 
 repayable always at the call or disposal of the depositor, 
 nevertheless, except in special cases (such as during a panic) 
 which are specially provided for, there is but a limited portion 
 daily called for ; and for this portion which he has to surrender 
 each day it is necessary that he should maintain a floating 
 balance of cash and available resources on hands. 
 
 Banks of Issue possess a source of revenue which is 
 denied to non-issuing establishments. As will be explained in 
 the subsequent pages, these Banks are legally enabled to issue 
 and keep in circulation a greater value in Bank Notes than 
 that of the coin they hold. If they were compelled to hold 
 gold or bullion equivalent to the value of their notes in circula- 
 tion, a note-issue would be a loss ; but as the actual circu- 
 lation is, of course, always largely in excess of the gold and silver 
 coin held, it is manifest that this excess is a source of profit ; 
 the interest upon this super-issue, less the cost of manufacture and 
 maintenance, is net profit to the Bank, The benefits also to 
 the State and the country conferred by paper issues of solvent 
 Banks are not inconsiderable — by reason of the saving of wear 
 and tear, of the attrition and waste of the coinage. The amount 
 of Bank Notes at present in circulation in the United Kingdom 
 is about fifty millions sterling. 
 
 A further function of a Bank, and one which is also a source 
 
96 
 
 Introduction. 
 
 of profit, is to afford a rapid and secure transfer of money from 
 one part of the Kingdom or the world to the other, by means 
 of Letter of Credit, Circular Note, or Credit-advice. This por- 
 tion of a Bank’s business is usually profitable, rather because 
 of the commission paid on such transactions than that they 
 add to a Bank’s productive capital. A consideration of the 
 scientific aspect of Banking is not suited to these pages. 
 
 A banker, accordingly, is burdened with a grave and serious 
 responsibility, and clothed with a great trust. To his ability, 
 skill, discretion, and honesty, is consigned the duty of advancing 
 the prosperity of the country, by assisting legitimate industry, 
 encouraging diligence, and aiding the worthy. In the use he 
 makes of the money entrusted to him he proves whether he is 
 fulfilling his duty and benefiting society. Gilbart, in speaking 
 of a Banker’s position and authority says : “ He holds out in- 
 “ ducements to uprightness, which are not disregarded by even 
 “ the most abandoned. There is many a man who would be 
 “ deterred from dishonesty by the frown of a Banker, though he 
 “ might care but little for the admonitions of a Bishop.” 
 Whether the frown of a Banker is as omnipotent now as in the 
 days when Mr. Gilbart wrote thus, is a question that need not 
 now be discussed. But there is no doubt that a Banker’s 
 powers for good or evil are superlative, and not easily overrated. 
 The "advantages bestowed by Banks are now extended to 
 almost every town in the Kingdom, and are appreciated by the 
 public, who regard them in a proper light and manifest their 
 appreciation by extending to them the fullest confidence. It is 
 a long step from Egibi and Son to the National Provincial 
 Bank and from Pasion to Coutts and Co., but it is a pleasant 
 and assuring circumstance that in all ages and countries 
 Bankers have as a rule enjoyed a good reputation and borne 
 themselves so as to deserve and maintain the confidence of the 
 public. 
 
A n Historial * Sketch . 
 
 97 
 
 It is true that, from time to time, public confidence in our 
 Banking system has been shaken. Such scandalous failures as 
 those of the Western Bank of Scotland, of the Tipperary Bank, 
 and, in later years, of the City of Glasgow Bank — events that 
 occurred not because of outward panic but because of internal 
 mismanagement and fraud, — were calculated to permanently 
 weaken public reliance on, and trust in, a Banking system under 
 which such occurrences were possible. The effects, however, of 
 such collapses have been of ultimate benefit to Banking, and, 
 notably, the City of Glasgow Bank failure occasioned the 
 passing of a protective Act of Parliament, which, whatever its 
 defects in detail may be, must be regarded as one of large and 
 wide benefit to Shareholders in Banks. It is a frequent 
 complaint that Bank Shareholders are too apathetic in regard 
 to their own position and interests, and exercise too little 
 supervision over the management ; but it must be allowed that 
 if interference of this nature were allowable, it would probably 
 degenerate into inquisitiveness and obstruction, and serve no 
 really good end — and, moreover, the Directors of our Banks 
 are, as a rule, chosen from those classes to whom suspicion 
 cannot readily attach. In the selection of proper Directors 
 greater protection lies than in holding the Board under control 
 and supervision. 
 
PART 11. 
 
 THE LAW AND PRACTICE 
 
 OF 
 
 BANKING IN IRELAND 
 
THE LAW AND PRACTICE 
 
 OF 
 
 BANKING IN IRELAND, 
 
 i. 
 
 7 HE RELATIONS BETWEEN THE BANNER AND HIS 
 CUSTOMER , 
 
 A BANKER is a medium between those who have money and 
 those who require it ; he receives money for temporary keep- 
 ing from the one class to advance it temporarily to the other. 
 
 The relations are simply those of debtor and creditor. 
 The Banker does not occupy the position of a trustee. If 
 he did, the remedy, for instance, against him in case of his 
 wrongfully dishonouring A’s. cheque to B. would be a suit 
 in Equity by B., whereas the remedy is a Common Law suit 
 by A. The drawer only of a cheque can proceed against 
 a Banker for wrongful dishonour, because there is no privity 
 or contract, actual or implied, between any parties to a cheque, 
 except the drawer and drawee ; the debtor is liable only to 
 his creditor, and the Banker cannot be the debtor to the 
 bearer or holder of a cheque, being other than the drawer. 
 Neither does the Banker occupy the position of a bailee. 
 If he did, he would be bound to re-deliver to the drawer of a 
 cheque, A., the identical monies which A. had lodged. Nor 
 is the Banker the agent of his customer ; for if he were, 
 he would be bound to apply the actual money lodged with 
 
1 02 
 
 The Law and Practice of 
 
 him only in the manner the person so lodging might direct 
 The relations, therefore, are, at law, simply those of debtor 
 and creditor, or borrower and lender. 
 
 Under some circumstances the Banker pays the depositor 
 for the use of his money, and in almost all cases he charges 
 those who borrow from him a certain rate of interest for the 
 amounts so lent. There is, however, the general distinction 
 between those who deposit with the Banker— />., those who 
 lend to him,— and those who borrow from him. The Banker 
 is practically obliged to repay, or account to, the depositor 
 on demand or notice, whereas the borrower does not repay the 
 Banker till the term of the contract between them has been 
 fulfilled. Thus the Banker holds himself liable to an im- 
 mediate call on him to return the funds of others which he 
 holds, while he cannot obtain on demand the sums he has 
 lent for a stated term. Primarily, the extent and nature of 
 a Banker’s business are regulated by his capital and the extent 
 and nature of the sums he receives from the community ; 
 secondarily, the extent and method of his business are 
 regulated by the circumstance that the sums so received are 
 not generally repayable at any certain and stated time, but 
 may be demanded on any day. The ordinary experience of 
 the Banker in Ireland is, however, that the aggregate amount 
 held from the public varies with circumstances within 
 his knowledge, diminishing in the Spring and increasing in 
 the Autumn season, but, as a rule, seldom declining below 
 a certain line. He thus calculates on retaining a gross 
 permanent amount, estimated by previous experience and 
 a foreknowledge of the consequences of any exceptional 
 occurrences. 
 
 There are two descriptions of lodgment with a Banker : one, 
 where the amount shall bear interest and be repayable on 
 
Banking in Ireland, 
 
 103 
 
 call, upon returning the Banker the receipt he has given for 
 such lodgment ; the other, where the amount shall not 
 bear interest, and shall be repayable on demand from time 
 to time, on written orders from the lodger. The former de- 
 scription is known as on Deposit Receipt , the latter as on Current 
 Account, It has been observed that the relations of the Banker 
 to his customer are not fiduciary ; neither is he a legal agent 
 to the customer, nor does the customer occupy the position 
 of a principal. “ Money paid into a Bank ceases altogether 
 to be the money of the person paying it in ; it is the money 
 of the Banker, who is bound to return an equivalent by paying 
 a similar sum to that deposited with him, when he is asked for 
 it. To all intents, it is the money of the Banker to do as he 
 may please with it ; though it is true that, in a popular sense, it 
 is spoken of as 4 my money at my Banker's’ and 4 my balance 
 at my Banker’s’ ; and though no one can doubt that in ordinary 
 language the term 4 ready money’ includes the speaker’s balance 
 at his banker’s.” * 
 
 A Banker is arbiter of his own business, and can decline to 
 open an account for, or to receive lodgments from, any indivi- 
 dual. But if an account be opened, the Banker thereby im- 
 pliedly undertakes to transact the party’s Banking business 
 (but not necessarily to discount bills or make advances), 
 and to obey the orders of his customer which are within the 
 scope of a Banker’s business as understood in the country and 
 neighbourhood. Failing obedience in these respects on the 
 Banker’s part, he is liable to his customer, should the customer 
 be in any way damnified by reason of the neglect or dis- 
 obedience, notwithstanding that he derives no profit or benefit 
 from the business. Negligence in transacting the customers 
 
 Grant. 
 
104 
 
 The Law and Practice of 
 
 business entails liability, as disobedience does. “A Banker 
 may fairly be considered,” says Grant, “ to be in a situation or 
 position in which skill is implied, and therefore an omission 
 to use due skill, even on an occasion of a gratuitous employ- 
 ment, is taken as gross negligence.” 
 
Banking in Ireland . 
 
 105 
 
 II. 
 
 DEPOSIT RECEIPTS . 
 
 UNLESS a Banker expressly stipulates to allow interest- on 
 money lodged with him he is under no obligation to do so, 
 nor can he be compelled to do so. Such express stipulation, 
 subject to certain conditions, exists in the case of Deposit 
 Receipts, the usual form for which is as follows : — 
 
 Deposit Receipt . 
 Received from 
 
 The Anglo- Hibernian Bank, 
 
 Dublin . 1880. 
 
 of 
 
 the sum of 
 
 Acct. 
 
 to be accounted for at our Office here . 
 For the Anglo- Hibernian Bank . 
 
 Manager . 
 
 
 
 On the back of each such Receipt there is a printed memoran- 
 dum of the conditions on which Deposits are received by the 
 Bank, generally to this effect : “ Sums deposited for one month 
 or longer, bear interest at the rate allowed by the directors on 
 such deposits. Notices of the rate allowed, and of any variation 
 thereof, are posted from time to time in the public offices of 
 the Bank, and no other notice of such variation will he given 
 to any depositor. When payment of either Principal or Interest 
 is required, the Deposit Receipt must be produced, and en- 
 dorsed by the depositor, and delivered up to the Bank. Ten 
 
 H 
 
io6 
 
 The Law and Practice of 
 
 days’ notice previous to withdrawal is required to be given by 
 the depositor.” 
 
 The Rate of Interest varies in accordance with the varia- 
 tions in the Bank of England rate, and the interest accrues on 
 the deposit at the varied rates. The ten days’ notice of with- 
 drawal is not required by the Bank under ordinary circum- 
 stances. It can be claimed, however, and has been, in times of 
 panic should there be a “run” on the Bank; but even in this 
 extreme case it is but seldom demanded, as the tendency of a 
 regulation to defer payments at such a time would be to 
 increase the panic. The rule now operates entirely as a 
 protective one. It dates from the ante-steam and ante-telegraph 
 days, when the transit of coin to meet such emergencies was a 
 matter of days. At the present time, it is not to be supposed 
 that any solvent Bank, even in the extremest case, would 
 require a ten days’ notice of withdrawal. 
 
 A Deposit Receipt can be issued in two or several names, 
 in which case the endorsement of each is required on repayment. 
 But if the receipt is surrendered by one of the parties, bearing 
 his endorsement only, for the purpose of adding to the amount 
 and obtaining a fresh receipt in the same joint names, the 
 discharge of one will, with the evidence of such an additional 
 deposit, protect the Banker. It can be issued in joint names 
 payable to either or any of them, and as a rule a joint deposit 
 is made accountable to “ the survivor.” This course is sup- 
 posed to obviate, in the case of the death of one of the parties, 
 the necessity to take out Letters of Administration, a certificate 
 of death being deemed sufficient. But as a matter of law such 
 a precaution is unnecessary, as the parties whose names are 
 joined in a Deposit Receipt are tenants in common, and not 
 joint tenants, and, consequently, on the death of one his 
 property in the amount is absorbed by the survivor. If a 
 
Banking in Ireland. 
 
 107 
 
 Deposit Receipt is lodged by another party in the name of an 
 infant — that is, a minor — it cannot be repaid or withdrawn 
 until he or she attains majority. A Banker is not competent 
 to bind himself by a Deposit Receipt issued to an infant. A 
 Deposit Receipt is a contract between the Banker and 
 depositor ; and not alone is an infant incapable of entering into 
 a legal contract, but should he be a party to a contract, he 
 cannot now make it valid by ratification when he is of age, 
 as all infant contracts are absolutely void by the Infant Relief 
 Act, 37 & 38 Vic., c. 62. A Deposit issued in the name of a 
 spinster who subsequently marries, requires her husband’s 
 endorsement supplementing her own before repayment can 
 be made. A deposit can be received from a married 
 woman, but unless she alleges at the time of depositing 
 that it is her separate estate, and for her own separate use 
 and enjoyment, and that it is so stated on the receipt ; or 
 that the receipt is issued under the husband’s knowledge and 
 consent ; it is necessary that the receipt should bear the 
 husband’s endorsement on repayment. The amount of a 
 Deposit Receipt in a married woman’s name which is her 
 separate estate, vests at her death, not in her husband, but 
 in her executor or administrator. 
 
 A Deposit Receipt, though by the American law it is held 
 capable of transfer, is not, in this country intended to be 
 a transferable document ; and where it is not presented for 
 payment by the depositor, but by a second party, payment is 
 not made until the Banker is satisfied that the discharge is 
 bona fide that of the depositor, and that it has been his inten- 
 tion to transfer the amount. As the Banker is in all cases 
 accountable to the depositor, he must satisfy himself as to the 
 identity and bona fides of the person to whom he repays the 
 amount. In the case of payment to a wrongful holder the 
 
io8 The Law and Practice of 
 
 Banker is liable to the depositor, unless he can prove that the 
 latter has been guilty of fraud or of such negligence that the 
 responsibility for the mispayment attaches thereto. 
 
 It has happened that a Deposit Receipt has been issued in 
 such a way and under such circumstances and conditions as to 
 cause a double liability of the Bank, as will be seen from the 
 following case of Cochrane v. O’Brien : — “ John O’Brien, 
 father of Daniel O’Brien and Catherine Callaghan, lodged 
 ^150 in Bank, upon a Deposit Receipt, in his own name. 
 Upon Daniel’s producing the receipt some time afterwards, 
 and demanding the interest, he was refused, the Bank paying 
 only to the depositor in person; John, upon this, used, for 
 some time, to come along with Daniel, and receive the 
 interest, taking the fresh receipt in his (John’s) name, on each 
 occasion ; afterwards he obtained permission that Daniel should 
 receive payments upon producing the receipt endorsed by John. 
 Then Daniel, by his directions, paid an additional sum of 
 into the Bank, and obtained a new Deposit Receipt for the 
 whole amount then in the hands of the Bank, being ^*155, but 
 in the name of Catherine O’Brien (afterwards Callaghan), 
 Daniel telling the Manager that his father intended ^155 to be 
 the portion of his daughter Catherine, but desired to retain 
 control over it during his life , and that he wished the Deposit 
 Receipt should be drawn in her name. In a few days after- 
 wards John O’Brien died, Daniel took out administration 
 testamento annexo , and, as administrator, claimed the ^155. 
 Shortly after, Catherine married, and she and her husband 
 demanded payment of this money. Both Daniel and Catherine, 
 with her husband, commenced actions against the Bankers, who 
 filed a bill of interpleader against both ; but the bill was dis- 
 missed, this not being the case of a double demand for one 
 duty, but a case in which there may be two liabilities : and a 
 
Banking in Ireland . 
 
 109 
 
 mere pretext of conflicting claims will not support a bill of 
 interpleader; and the court is bound to see that there is a 
 question to be tried. Here the transaction created a debt from 
 the Bank to Catherine, in consequence of the mode of dealing 
 adopted by the Bankers ; they were not at liberty to resist her 
 demand, or to treat the case as one of interpleader, because 
 John’s representative, who made the last deposit and took the 
 new receipt, chose to rescind the whole transaction. It is quite 
 consistent with this view that John’? representative might still 
 be able to recover against the Bankers ; but it was their own 
 fault if they created a new liability in themselves without 
 obtaining a sufficient discharge from the original title to the 
 money in their hands. The Bank in this case applied for the 
 bill of interpleader ; but it was pointed out by the Court that 
 in so doing they asked it to destroy their own mode of dealing, 
 for if the cancellation of the old receipt and the issuing of the 
 new receipt did not create a liability to the person named in 
 the new receipt, the Bankers’ system of Deposit Receipts was 
 defective.” * 
 
 It frequently happens, especially in country districts, that a 
 Depositor becomes security for a person who is obtaining 
 accommodation from the Bank. In such a case the Banker usually 
 obtains from the guaranteeing depositor his deposit receipt duly 
 discharged ; he then has a lien upon it, and is entitled to hold 
 an equivalent to the amount guaranteed. If the Banker has not 
 possession of the receipt, there is nothing to prevent the 
 depositor obtaining payment of the amount of his deposit 
 while the Bill he has secured is running and before it has 
 matured. A Banker’s action, however, in this as in many such 
 
 Grant. 
 
I IO 
 
 The Law and Practice of 
 
 cases, is to be governed by the character, &c., of the 
 guaranteeing-depositor. 
 
 A Banker’s Deposit Receipt is exempt from stamp duty ; but 
 as it is necessary that the Banker should obtain from the 
 depositor, on repayment, a receipt for the amount repaid, and 
 as there is no corresponding exemption on behalf of the 
 depositor, the receipts issued by the Banks generally bear an 
 impressed receipt stamp. This impost legally falls on the 
 depositor, and on this account the practice obtains in some 
 Banking establishments of deducting the price of the stamp 
 from the amount of interest payable — a practice not in favour 
 with the public, who are not aware of the reason of the 
 deduction, or of the right of the Bank to enforce it. 
 
Banking in Ireland . 
 
 1 1 1 
 
 III. 
 
 CURRENT ACCOUNT — CHEQUES. 
 
 A CURRENT ACCOUNT differs from a Deposit in that, as 
 the term conveys, it does not consist of a fixed balance but varies 
 from day to day, being increased by lodgments and diminished 
 by cheques ; and that (except under agreement, and in case of 
 charitable accounts) interest is not allowed on the balance. 
 The customer lodges with the Banker sums consisting of money, 
 cheques, drafts, bills, and other negotiable documents, and 
 the Banker makes repayment upon written orders from the 
 customer. These written orders are called Cheques. The 
 fact of the Banker receiving lodgments on Current Account for 
 his customer creates a contract and engagement on the 
 Banker’s part to honour the customer’s Cheques to the extent 
 of those lodgments. 
 
 A Cheque on a Banker is, according to its legal definition, 
 an Inland Bill of Exchange payable on demand. It is an order 
 in writing by the person who has deposited the monies, or in 
 whose name they have been deposited, for the payment on 
 demand, without interest, to a person named therein, or to his 
 order, or to the bearer, of a specified sum. The person 
 making such order is the Drawer ; the person to whom the 
 order is made payable is the Payee ; the Banker on whom it 
 
1 1 2 The Law and Practice of 
 
 is drawn is the Drawee, 
 is as follows : — 
 
 The usual form of an unfilled Cheque 
 
 No. 
 
 Dublin . 188 
 
 THE A NGL O-HIBERNIA N BANK. 
 
 Pay 
 
 or bearer 
 
 the su?n of 
 
 sterling. 
 
 £ 
 
 
 
 
 But it is not requisite that any precise form should be employed. 
 It is not even absolutely necessary that the Drawer's signature 
 must be subscribed at the foot of an order to pay. One 
 couched, for instance, in the following terms, in the customer's 
 handwriting, is equally a valid Cheque, if fulfilling all the legal 
 requirements as to dating, stamping, &c. : — “ Mr . Henry 
 Wilkinson requires the Anglo-Hibernicin Bank to pay bearer 
 fifty pounds It seems, however, that the terms of the order 
 must be such that payment of the amount is not asked as a 
 favour but required as a right, that is, that it must be so framed 
 that payment is not at the option of the Drawee, but that it is 
 compulsory on him. 
 
 The Essential Constituents of a Cheque are (i) that 
 
 the Drawee's name be set forth on it ; (2) that it be dated ; (3) 
 that it be stamped ; (4) that the amount to be paid be expressed ; 
 (5) that it be payable to the bearer, or to some person or 
 persons, or his or their order ; (6) that it be payable on demand 
 unconditionally ; (7) that it be signed by the Drawer, or by an 
 authorised person for him. 
 
 (I.) The Drawee's Name. — The name of the company 
 firm, individual, or establishment upon whom the Cheque is 
 drawn, together with the locality where the Cheque is to be 
 
Banking in Ireland ’ 1 1 3 
 
 presented, are necessary. A Cheque addressed to the “ National 
 Bank” is not sufficient — the office or branch of the Bank 
 must be stated. 
 
 (II.) The Date. — A Cheque may be dated on any day of 
 the week, Sunday not excepted. If a cheque is undated it is an 
 imperfect instrument, and therefore inoperative ; and the Drawee 
 can decline to honour it on that ground. Further it is 
 possible that an undated cheque may have been issued such a 
 length of time before its presentation as would raise a pre- 
 sumption of mala fides if the date of issue was known to 
 the Banker ; and he is entitled to such an adverse presumption 
 in case the Cheque is undated. It is said to be “ post dated” 
 if it bears a date subsequent to the day upon which payment is 
 demanded. A post dated cheque is not an illegal document, 
 nor does any penalty attach to the maker of it. “ It is,” says 
 Grant, “ a legal, valid, and unimpeachable instrument.” If a 
 Banker, however cash such a Cheque before the day of its date, 
 and that the Cheque has been lost or stolen, or fraudulently 
 obtained, the Banker will be liable to the rightful owner. It is 
 doubtful if liability in any shape would attach to a Banker who 
 paid such a Cheque to a bona fide holder, or direct to the Payee, 
 because it is an inherent quality of a Cheque that it is payable 
 on demand, and unconditionally. It is the opinion of some 
 persons that a Cheque, being post dated, is transformed into a 
 Bill, and requires an ad valorem stamp duty ; but this is an 
 erroneous idea. 
 
 (III.) The Stamp. — A stamp duty of one penny is 
 imposed on each Cheque, irrespective of its amount. This duty 
 is denoted either by an impressed stamp (which of late years 
 has been reduced from a large unsightly roughness to a neat 
 shape and size), or by an adhesive stamp, affixed and cancelled 
 by the Drawer, or, failing him, by the Drawee. If the affixing 
 
1 14 The Law and Practice of 
 
 and cancellation of the stamp is the act of the Drawee, it 
 operates to make the instrument valid and to protect himself, 
 but not to relieve the Drawer or negociator. The consequences 
 of negociating an unstamped cheque, are liability to a penalty 
 of ;£io, and inability to sue upon it. The Stamp Act of 
 1870 fixed the stamp duty on Cheques payable on demand 
 at one penny; but by it any Draft or Order drawn by one 
 Banker upon another in payment of any differences, for the 
 purpose of settling or balancing or clearing any account 
 between such Bankers, is exempt from the duty. A sub- 
 sequent Act extends the exemption to Drafts or Orders drawn 
 by the Paymaster-General. Cheques drawn by Benefit Building 
 Societies and the like are not exempt. 
 
 (IV.) — The Amount. — The sum payable must be set forth 
 in words or figures, or both. It must be denoted in English 
 money. A Cheque may be written for any sum. There is now 
 no restriction of the amount for which it may be drawn. The 
 supposition that cheques for a less sum than fi are illegal, is 
 erroneous, as the Act making such a Cheque void and illegal 
 has long since been repealed. If a Cheque has the amount in 
 figures or in writing only, it is yet a valid instrument. If the 
 amount as expressed in words differs from that as expressed 
 in figures, the amount in words is the sum the Bank should 
 pay, irrespective of the circumstance that the figures may be 
 the lesser amount ; but it is open to the Bank to decline pay- 
 ment until the Drawer has indicated which of the two amounts 
 is the correct one. It is not essential to a Cheque’s validity 
 that the amount should be fully designated as pounds, 
 shillings, and pence. Thus an order to pay “ ten, eleven, 
 seven,” has been held to mean ten pounds, eleven shillings, 
 and seven pence ; and where an amount so stated is supple- 
 mented by confirmatory figures, no hesitation to pay on the 
 Banker’s part is necessary. 
 
Banking in Ireland . 
 
 ”5 
 
 Altered Amount— Forgery. — The law on the subject of 
 a forged or altered Cheque is that the loss occasioned by the 
 payment of such an instrument falls on the Banker and not on 
 the Drawer whose signature has been forged or whose Cheque 
 has been altered. A Banker is bound to know his customer’s 
 signature and his handwriting ; and therefore, he is bound to 
 know what is not his customer’s handwriting. If a Cheque is 
 a forgery in toto, it is manifest it is not the customer’s order, 
 and that therefore his account cannot be charged with it. If 
 a cheque is altered fraudulently, and that the alteration is the 
 result of the Drawer’s gross negligence, the loss would probably 
 fall on the Drawer; but the question of the negligence is one 
 for the jury. In a case where a Cheque was filled for fifty 
 pounds, but in such a manner as to admit of the words “ three 
 hundred” and the figure “ 3” being inserted in the body and 
 margin respectively, it was held that the loss should fall on the 
 Drawer, as it was his own negligence induced the fraud. But 
 Bankers should not rely too strongly on this case, as the 
 judgment may have depended on the fact that the body of the 
 Cheque was in the handwriting, not of the Drawer, but of his 
 wife. Haditbeen apparently in the Drawer’s penmanship, it might 
 have been ruled that it was the Banker’s duty to know his custo- 
 mer’s handwriting, and that he should have discovered that the 
 added words were not written by him. But, of course, if such 
 fraudulently added words or figures were manifestly in a hand- 
 writing different from the other words and figures, the Banker 
 would prima facie be guilty of negligence, and would therefore 
 be undoubtedly liable. The rule of law is, that in a case of 
 this kind, where a loss must fall on either of two innocent 
 parties, it falls on him whose conduct opened the door and 
 created the opportunity for the fraud, and in case the Drawer 
 cannot be made liable for this, the loss falls on the Banker. 
 
1 1 6 The Law and Practice of 
 
 In case of a forged endorsement of the Payee’s name, the 
 Banker is protected where he has paid the holder without 
 knowledge of the forgery, as will subsequently be shown. 
 
 Any alteration whatsoever in any material portion of a 
 Cheque requires the confirmation of the Drawer in order to 
 constitute the Cheque valid and negociable ; in fact it 
 may be laid down as a general rule that no alteration can be 
 made in a Cheque, except by the Drawer, or by his authority, 
 save in so far as regards altering the tenor of the 
 Cheque from bearer to order, as subsequently stated. The words 
 “ pounds,” “ shillings,” “ pence,” are not material words, and 
 an alteration, for instance, from a misspelling to a correct 
 spelling of them, or vice versa , is not a material alteration. 
 But such alterations in the number of pounds, shillings, or 
 pence, or in the name of the Payee, or in the date, are material 
 alterations and require the confirmation of the Drawer. An 
 alteration from “ bearer” to “ order,” though a material altera- 
 tion, does not require the Drawer’s initials in confirmation, 
 because its effect is to restrict the negotiability of the Cheque, 
 and being a restriction, the presumption is that it is authentic ; 
 and, besides, it operates also as a protection to the Drawer. 
 Moreover, it is a received opinion that a Payee of a Cheque 
 drawn to “ bearer,” can, for his own protection and security, 
 change it, and make it drawn to “ order.” But where a 
 cheque drawn to “ order” is altered to “ bearer,” such alteration 
 requires the Drawer’s confirmation, for it operates to enlarge the 
 negociability of the Cheque, and the presumption is against such 
 an act. Therefore, where a restriction is removed by an 
 alteration it must be authenticated by the maker ot the instru- 
 ment. 
 
 (VI.) The Payee. — “ Bearer.” — A Cheque is called an 
 open Cheque, when it is not crossed. The nature and effect of 
 
Banking in Ireland. 
 
 ii 7 
 
 “crossing” is treated subsequently; at present we deal with 
 uncrossed instruments. A Cheque must be payable to some one. 
 An order filled thus, “ Pay twenty pounds” and signed, is not 
 a Cheque, as the Payee is not specified. The Payee may be 
 denominated as the “ bearer,” or the Cheque may be payable to 
 initials “ or bearer,” or a number “ or bearer,” and may be 
 payable to a specified party “ or bearer.” In all such cases the 
 amount is payable by the Drawee to the presenter of the Cheque, 
 it being an open Cheque and not crossed. The presenter is the 
 bearer and it is not incumbent on him to endorse the Cheque. 
 By its nature, as we have seen, a Cheque is payable on demand 
 and unconditionally, and being payable to bearer and not crossed 
 or its negotiability otherwise restricted, the holder is entitled to 
 immediate payment, if the Banker has funds of the Drawer in 
 his possession. The Payee of a Cheque payable to bearer can 
 make it payable to order by altering the word “ bearer” to 
 “ order.” But a Cheque payable on the face of it, “ to bearer,” 
 cannot be made by endorsement , payable to a further party’s 
 order. 
 
 “ Order.” — Cheques payable to “ order” were introduced 
 into the Statute Law by 16 & 17 Vic., c. 59, s. 19. When a 
 cheque is made payable to an individual, or order , it is necessary 
 that it should be endorsed, or purport to be endorsed, by him, 
 before it becomes negociable. The Payee is empowered to en- 
 dorse it making it payable to the order of a third party, the third 
 to a fourth, and so on ; and it must bear, or purport to bear, the 
 endorsement of each subsequent Payee, the same as if he had 
 been the original Payee. If a Cheque payable to “ order” is 
 duly endorsed, or purports to be endorsed, by the Payee, in 
 blank — that is, that he does not limit the negociability of it by 
 making it payable to another party — it then becomes a 
 cheque payable to bearer, and, as such, is negociable without 
 further endorsement. 
 
1 18 
 
 The Law and Practice of 
 
 “ Specially Payable.” — A Cheque is said to be specially 
 payable when it is an order, the payment of which is restricted to 
 the Payee alone : this is effected by writing it payable to a party 
 without either of the alternative words “ bearer” or “ order.” In 
 this case the Banker on whom it is drawn is empowered to pay it 
 to the Payee only. Consequently its negociability is limited to 
 the Payee and it ceases to be transferable. The Banker, 
 therefore, must be satisfied that the presenter is the Payee ; and 
 in cases where such Cheques are presented to the Drawee by 
 another Bank, the amount is not paid to the presenting Bank 
 unless the endorsement is guaranteed. 
 
 (VI.) On Demand and Unconditionally.— A Cheque, 
 in pursuance of the Stamp Act, 1870, must be payable on 
 demand, and payable unconditionally. If an instrument be 
 not payable on demand but at a future time, no matter how 
 soon, it is not a Cheque. At sight, is now equivalent to on 
 demand . It is not essential that the actual words “on de- 
 
 mand” should be expressed. For instance, a Cheque drawn 
 “ Pay Bearer Fifty Pounds” is, in law, a Cheque payable on 
 demand, and any expression equivalent to “on demand” is 
 valid. A Cheque must also be payable unconditionally. If 
 there is any condition attached to the payment of the amount 
 the Banker can refuse to negociate the Cheque, as it is no part 
 of his business to observe the fulfilment of any duty imposed 
 by the Drawer on the Payee as a condition precedent of 
 payment. 
 
 (VII.) Drawer's Signature. — The signature of the Drawer 
 is the authority to the Banker, and is therefore essential. As 
 we have seen, it is not absolutely necessary that the signature 
 should be subscribed at foot of the order, but the instrument 
 must bear the Drawer’s name in his own handwriting somewhere 
 on the face of it, and be his order to pay. A marksman, if the 
 
Banking in Ireland, 
 
 ii9 
 
 mark be duly attested, may draw a Cheque. A Banker is not 
 bound to honour his customer’s signature if it should be signed 
 in a manner different from his usual or specimen signature, no 
 matter how clear the evidence is that it is the writing of the 
 customer. For example, if a person who has given his Banker 
 a specimen signature “ J. Smith” should sign his Cheque “ John 
 Smith,” the Banker is not bound to pay it, as the signature 
 differs from that which his customer has instructed him to 
 honour. But if a Banker has evidence that it is, bona fide % his 
 customer’s signature, and is satisfied therewith, he may pay it 
 on his own responsibility. Should he not pay it, he should be 
 careful to supply the proper motive of refusal, i.e., that the 
 Drawer’s subscription differs from his usual signature. 
 
 An Infant — that is a person under 21 years of age — cannot 
 keep a Bank account, or draw valid Cheques. A Banker who 
 cashes an Infant’s Cheque is not thereby discharged, that is to 
 say, an infant can make him account for the funds paid away 
 on such document. A married woman can keep a Current 
 Account, (1) of her separate monies (which are defined 
 below) ; (2) by the permission and authority of her husband, 
 which may be implied as well as written ; and (3) as her 
 husband’s agent. A married woman’s separate estate is defined 
 in the Married Woman’s Property Act thus : — “ The wages and 
 earnings of any married woman acquired or gained by her after 
 the passing of this Act in any employment, occupation, or trade, 
 in which she is engaged or which she carries on separately from 
 her husband, and also any money or property so acquired by 
 her through the exercise of any literary, artistic, or scientific 
 skill, and all investments of such wages, earnings, money, or 
 property, shall be deemed and taken to be property held and 
 settled to her separate use, independent of any husband to 
 whom she may be married, and her receipts alone shall be a good 
 
120 
 
 The Law and Practice of 
 
 discharge for such wages, earnings, money, and property.” A 
 Banker, who is the Drawee, is not entitled to dishonour the 
 Cheque of an idiot or lunatic because the Drawer is believed 
 by him to be an idiot or lunatic. 
 
 Cheques drawn on a Current Account which stands in the 
 Banker’s books in joint and several names (such as “John 
 Smith, Thomas Brown”), be they Trustees or otherwise, must be 
 signed by both, or all, parties individually. If an account be 
 held in joint names of trustees, and that one of the parties 
 absconds, the Court of Chancery must be applied to to appoint 
 another in his place, or to authorise and make valid the 
 Cheques of the remaining Trustee. In a joint account in the 
 names of A. and B., the Drawer’s signature“for self and A. — -.B.” 
 will not discharge the Banker unless he has A’s. authority for 
 such a signature. In a partnership account, the signature or 
 act of one of the known and authorised partners will bind all. 
 In the case of an executors’ account, it has been held that the 
 signature of one of the executors will be a sufficient authority 
 to the Banker, but this is not so in the case of an account in the 
 names of administrators or assignees in bankruptcy. The 
 Cheques of a Company are signed by one or more officers of 
 the company, under the written authority of a quorum of the 
 directors. The Cheques of a Corporation are usually signed 
 by some of the members and officials of the Corporation ; but 
 the authority to the Banker to honour Cheques so signed 
 must be under the Corporate Seal. The Cheques of a Firm are 
 signed in the name of the Firm by any one of the authorised 
 partners or members, and such signature is binding on the 
 other partners. The Bankers of a duly constituted Joint 
 Stock Company, where the Cheques on the Company’s account 
 purport to be signed by the Directors, or any of them, are 
 not bound to ascertain that such purporting Directors have 
 
Banking in Ireland . 
 
 I 2 I 
 
 been legally appointed as Directors, or legally authorised to 
 draw Cheques, provided there is nothing on the face of the 
 Cheques in violation of, or inconsistent with, the Articles of 
 Association of the Company, or nothing to excite suspicion. 
 This was laid down in an action by the East Holyford Mining 
 Company against the National Bank= 
 
 Endorsement. — A Cheque payable to a person “ or order ” 
 must bear his endorsement. Endorsement signifies literally 
 a signing on the back, but as applied to Cheques it has the 
 wider signification of discharge or receipt, for the signature of 
 a Payee of a Cheque drawn to order, may be on the face of the 
 cheque, or anywhere upon it, as long as it operates as a dis- 
 charge to the Banker. A Cheque payable to “ bearer or order ” 
 requires the endorsement of the Presenter. It has been pointed 
 out that a Cheque made payable by the Drawer to the bearer, and 
 remaining so, cannot be efficaciously or validly endorsed payable 
 to the order of a further party by the Payee, or any subsequent 
 holder. A Cheque drawn payable to “ order,” must be endorsed, 
 or purport to be endorsed, by the person in whose favour it is 
 drawn ; and he, in his turn, can make it payable to the order of 
 a third party, and so on.* It is obvious that if the spelling of 
 the surname in the endorsement differs from that of the Payee 
 
 * The 16 & 17 Vic., c. 59, says : — Provided always that any Draft or 
 Order drawn upon a Banker for a sum of money payable to order on 
 demand, which shall, when presented for payment, purport to be endorsed 
 by the person to whom the same shall be drawn payable, shall be a sufficient 
 authority to such Banker to pay the amount of such Draft or Order to the 
 bearer thereof ; and it shall not be incumbent on such Banker to prove that 
 such endorsement, or any subsequent endorsement, was made by, or under 
 the direction or authority of, the person to whom the said Draft or Order 
 was or is made payable, either by the drawer or any endorser thereof. 
 
122 
 
 The Lazv and Practice of 
 
 the Cheque is not endorsed by the party to whom it is payable. 
 For instance, John Smith , an endorser, is not the same person 
 as John Smyth, the payee. Therefore any variation in the 
 spelling of the surname constitutes an irregularity, and the 
 Banker is not discharged in paying such an irregularly-endorsed 
 order upon him. A variation in the spelling of a common 
 Christian name does not constitute an irregularity. A Cheque 
 drawn by an illiterate party, and payable to “ Gorge Smith,” and 
 endorsed “ George Smith” is correctly and regularly discharged. 
 As long as the necessary endorsement is regular, the Banker is 
 not bound to ascertain that it is bona fide. The Banker is dis- 
 charged if the cheque purports to be endorsed by the Payee. If 
 Thomas Brown fraudulently writes “John Smith” on a Cheque 
 payable to “John Smith or order,” the Banker is not liable for 
 the mispayment, as the Cheque purports to be endorsed by John 
 Smith, and it is no part of a Banker’s business to ascertain 
 the genuineness of the endorsement. Even should he surmise 
 from a knowledge of the Payee’s signature that the endorse- 
 ment is a forgery, he is protected in paying it, because there 
 may be more John Smiths (or any other name) than one. 
 Where, however, the Payee is a person of whom, at the time, 
 there could be no other person of the same name, and that 
 his signature is known to the Banker, and that the endorse- 
 ment is manifestly a forgery, the Banker would be deemed 
 guilty of negligence if he paid the amount, and, presumably, 
 would not be held discharged. For example, if a Cheque 
 is payable to the Duke of St. Albans, and the Banker is 
 acquainted with the Duke’s signature, and that the endorse- 
 ment is not, to the Banker’s knowledge, in the Duke’s 
 handwriting, and does not purport to be done by his authority, 
 therefore, as there is only one Duke of St. Albans, and only 
 one endorsement possible, the Banker is entitled to decline 
 
Ranking in Ireland ’ 
 
 123 
 
 payment of the Cheque, as the endorsement is to his 
 knowledge not the endorsement of the Payee ; and if he does 
 pay it he will be held guilty of negligence. An endorsement 
 in pencil is a sufficient discharge. Bankers, as a rule, on the 
 ground of the impermanency of such writing, require that the 
 Payee should endorse his name in ink, and of course he 
 complies with such a rational request. But in the case of 
 a Payee endorsing in pencil, and transferring the Cheque to 
 a third party, the Banker cannot dishonour the Cheque 
 because the first Payee has given his order in a perishable 
 writing. As has been said by a great authority, the law does 
 not prescribe the material with which a Payee is to write his 
 name, and it is his order equally in perishable pencil-writing 
 as in imperishable ink. If a Payee write Mr. or Mrs. before 
 his or her name, it is an irregular endorsement, for such an 
 addition changes the endorsement from a signature to a mere 
 address. The same rule applies to a title written before 
 the name. A Payee, however, can write Esquire after his 
 name, as it is but a description of himself sub-added to his 
 signature. The same applies to titles such as Knight, Baronet, 
 &c., and Academical Degrees, &c., &c. An endorsement 
 per procuration (pp. John Smith, Henry Brown) is regular 
 in law, as it has been laid down* that it purports to be 
 endorsed by the Payee. Some Bankers require per-procuration 
 endorsements to be guaranteed by the presenter, but such 
 guarantee is not necessary, as the Banker is fully and legally 
 discharged by a per-procuration endorsement. However, such 
 an endorsement as “For John Brown, John Smith,” is not 
 regular, as in this case John Smith is not empowered, and 
 
 * In Cookson v. Bank of England, in Hare v . Copland (the Royal 
 Bank), and in Charles v. Blackwell, 
 
124 
 
 1 he Law and Practice of 
 
 does not purport to be empowered, to give a discharge for 
 John Brown, whereas in the former he alleges a procuration 
 power, which has been held sufficient for the Banker. In 
 1868, after the judicial decision as to the validity of per- 
 procuration endorsements, the London Banks agreed amongst 
 themselves to accept such endorsements without a guaranty 
 from the presenting Bank. It is highly desirable that the 
 Irish Banks would come to the same understanding. A Cheque 
 payable to “ John Smith, Senior,” is correctly discharged 
 “ John Smith,” for Senior is a superfluous designation. But 
 one to “John Smith, Junior,” must be endorsed “John 
 Smith, Junior.” A Payee does not invalidate his endorsement 
 by writing the word “ Lodge” over his name ; but the words 
 “ Lodged to Account of ” will invalidate the discharge, for then 
 the endorsement in toto is but a memorandum, and does not 
 per se purport to be a discharge by the Payee. A Cheque 
 payable to Messrs. Smith is correctly endorsed “ A. and B. 
 Smith,” but not correctly if endorsed “ Smith and Co.” A 
 Cheque payable to “ Messrs. Smith and Co.” is not incorrect 
 when endorsed “John Smith and Co.,” or “John and James 
 Smith and Co.,” for these are both “ Messrs. Smith and Co.,” 
 and the Cheque purports, therefore, to bear the Payee's 
 endorsement.* A Cheque endorsed by an alleged executor 
 or administrator of the Payee is a sufficient discharge to 
 
 * It is proper to point out that the Council of the Institute of Bankers 
 (London), and the Editor of the Bankers' Magazine , are of a different 
 opinion on this point, on the ground that the endorsers John Smith and 
 Co., may not be the Payees, Messrs. Smith and Co . There is no legal 
 decision to guide us, and we can rely alone on common sense, and the 
 custom of Bankers. It seems, however, that if this argument were to 
 rule the practice of Bankers, it would invalidate an endorsement J. Brown , 
 on a Cheque payable to John Brozvn, as the endorser might be James, or 
 
Banking in Ireland. 
 
 125 
 
 the Banker ; but it is the usual, but totally needless, custom 
 amongst Irish Banks to require a guarantee to such an 
 endorsement. The Banker, however, is apparently protected 
 by the same rule of law as applies in a per-procuration case, 
 A Cheque drawn payable to two or more several individuals 
 must be endorsed severally by each of the parties. The 
 endorsements of Companies and Corporations must 
 purport to be by some authorised officer ; but it is not the 
 Banker’s duty, when such Cheques are presented by a Banker, 
 to acquaint himself with the genuineness of the purported 
 authority. For example, in case of a Cheque payable to a 
 Bank, and endorsed for the Bank “John Brown, pro Mgr.,” 
 it does not devolve on the Banker to ascertain that John Brown, 
 or any other signatory, whose name, perhaps, he never heard, is a 
 person legally authorized to sign for the Bank. But it would be his 
 duty to satisfy himself as to the endorser’s powers in a case 
 where a Cheque is presented for payment through a channel 
 that he is unacquainted with, or under circumstances reasonably 
 to excite suspicion. This does not apply where a Cheque 
 payable to a Company, purports to be endorsed by a quorum 
 of Directors, or in the case of a Corporation, by a member or 
 members under the Corporate Seal. An endorsement purport- 
 ing to be by an Agent of the Payee has been held to be a 
 sufficient discharge. An endorsement, merely by way 
 of acknowledgment to the Drawee, of the receipt of the 
 
 Joseph, or Jeremiah, and not John, the Payee. The broad test in these 
 matters, however, — seeing that Bankers should act amongst themselves, so 
 as to facilitate and not obstruct every day business — is whether the Drawee 
 is himself protected and his customers’ interests guarded by law in paying 
 on such endorsements. Amongst some Irish Banks the practice appears to 
 be to require guaranties to endorsements which are legally correct and 
 sufficient. 
 
126 
 
 The Law and Practice of 
 
 amount in no way creates a liability on the part of such 
 endorser. But where a Cheque is endorsed by the Payee and 
 transferred for value, and endorsed by the transferee, and 
 dishonoured, the transferee’s recourse is against the previous 
 endorser. A Cheque to “ bearer ” passes by delivery, as one 
 to “ order ” does by the endorsement of the Payee. 
 
127 
 
 Banking in Ireland . 
 
 IV. 
 
 CROSSED CHEQUES . 
 
 A CHEQUE is said to be crossed when it bears on the face 
 two parallel transverse lines. When it bears the parallel lines 
 only, or the lines with the words “ and Company,” or some 
 legible contraction of those words between them, it is said to 
 be crossed generally. When within the lines it bears the 
 name of a Bank, it is said to be crossed specially. If a 
 Cheque is an open Cheque a crossing can be added by any 
 bona fide holder. Crossing operates as a direction to the 
 Banker on whom the Cheque is drawn, to pay the amount in 
 case of a Cheque crossed generally to a Banker only, and in 
 the case of a Cheque crossed specially to the Banker designated 
 in the crossing only. The development of the system and 
 principles of Crossed Cheques will be readily understood 
 from a brief history of the legislation on the question. 
 
 The Origin of Crossed Cheques is to be found in the 
 custom which obtained amongst those Bankers who were 
 members of the London Clearing House of writing or stamping 
 the name of their Bank across the face of the Cheque for 
 purposes of identification and reference. The custom came to 
 be regarded as a safeguard, as it operated as a notice to the 
 Bank on whom the Cheque was drawn that it was the property 
 of the Bank whose name was across the face of it ; and it thus 
 came to be recognised as the Drawee-Bank’s duty to negotiate 
 it for that Bank and for no other. After a while the" London 
 
128 
 
 The Law and Practice of 
 
 merchants and large firms adopted the plan, and crossed the 
 Cheques they sent for lodgment with the name of the Bank 
 where the lodgment was made. 
 
 The next development was the introduction by the merchants, 
 when Cheques became a more general mode of payment, 
 of the practice of crossing the Cheques which they remitted to 
 their friends and creditors with the name of that creditor’s or 
 friend’s Banker, and where the name was not known, of crossing 
 it with two parallel transverse lines, with the words “ and 
 Company ” between them, to enable the parties to whom the 
 Cheque was remitted to adopt the safeguard of putting their 
 Banker’s name between the lines. The words “ and Company ” 
 were used, presumably, because the generality of country 
 Banks were, at the period referred to, private firms or com- 
 panies. If the person in whose favour the Cheque was drawn 
 inserted his Banker’s name in the crossing it was an indication 
 to the Bank on whom the Cheque was drawn that the amount 
 was to be paid only to such Banker whose name was therein, 
 and if no Banker’s name was inserted, and that merely the 
 words “and Company,” ora contraction of them, were between 
 the lines, it was regarded as an indication to the Drawee to pay 
 the amount to a Banker only, as it was evident that such was 
 the intention of the Drawer. The object and effect of this 
 safeguard are evident. However, where the Drawer had 
 inserted the Payee’s Banker’s name in the crossing it was found 
 that such Payee could not transfer the Cheque to a party 
 having a different Banker, and hence it became competent for 
 a subsequent holder to erase the Banker’s name with which it 
 was originally crossed, provided he substituted the name of 
 another. This course was, however, found to be inconvenient, 
 and it led to the general crossing “and Company” being 
 adopted more usually, as ihus, without obliteration or erasion 
 
Banking in Ireland \ 
 
 1 29 
 
 the Cheque’s transferability was not destroyed, and the Payee 
 was apparently protected. 
 
 It is to be understood that this custom of crossing, at this 
 period, found no recognition in the Statute Law. On the 
 contrary when the Courts came to deal with the subject it was 
 decided (in the case of Bellamy v. Majoribanks ,) that the 
 crossing of a Cheque payable to bearer , with a Banker’s name, 
 did not restrict its negotiability to that Banker — that in fact it 
 did not restrain its negotiability at all, as it was no more than a 
 mere memorandum to the holder that he was to present it 
 through that Banker; and to the Drawee it was but a mere 
 direction to pay it to such Banker, but a direction which it was 
 not legally incumbent on him to follow, and which his not 
 following was no more than a proof of negligence to which no 
 penalty attached, and for which, even in case of fraud, the 
 Banker on whom it was drawn could not be held liable. To 
 make the Drawee liable in such a case, a specific agreement 
 between him and the Drawer of the cheque to the effect that 
 such crossing with a Banker’s name would be regarded as a 
 direction to pay only to that Banker, was necessary. 
 
 The effect of this judgment was the passing of the 19 and 
 20 Victoria , c . 25, which briefly enacted that the crossing of a 
 Cheque, whether payable to bearer or order, should be a 
 direction to the Banker on whom it was drawn to pay it to a 
 Banker only. When the enactment came to be considered by 
 the Courts, it was held that it affected the Drawee-Banker only 
 where the crossing appeared on the face of the Cheque when 
 it was presented for paynnent, and that he was not liable for 
 mispayment when the crossing had been obliterated ; and 
 there was no law to prevent any person, whether a fraudulent 
 holder or not, erasing or obliterating any cross-writing on 
 a Cheque, This judgment, which was pronounced by the 
 
130 The Law and Practice of 
 
 Common Pleas, and confirmed by the Court of Exchequer 
 amounted to a ruling that the crossing was not a material or 
 integral portion of the Cheque, but a mere addition, which 
 any person so disposed could remove with impunity. 
 
 In consequence of this case it was enacted (21 and 22 
 Victoria , c. jg, s . /), in 1858 that the crossing was to be 
 deemed a material part of the Cheque, and the Banker on 
 whom it was drawn should not pay it to other than the 
 Banker whose name was so crossed, and any person obliter- 
 ating, altering, or adding to, a crossing on a Cheque or Draft, 
 with intent to defraud, shall be guilty of felony. A bona fide 
 holder of a Cheque crossed with the words “ and Company,” 
 or any abbreviation thereof, could, however, add the name of 
 a Banker ; or a holder of an uncrossed Cheque or Draft might 
 cross it, either specially or generally. But (by the 4th 
 Section) it is provided that a Banker (unless he has acted 
 mala fide or been guilty of negligence) shall not be in any way 
 responsible, or incur any liability, in paying to other than a 
 Banker a Cheque bearing an altered or obliterated or added- 
 to crossing, if the Cheque does not at the time when it is 
 presented for payment plainly appear to be or to have been, 
 crossed, or to have been obliterated, added-to, or altered. 
 
 It was imagined that the law on the subject was set at rest 
 and permanently defined in these Statutes and judgments of 
 the Courts, and, consequently, the public were somewhat 
 astonished by the further definition of the law, which the 
 celebrated case of Smith v. Union Bank of London occasioned. 
 The facts of this case were as follows : “A firm named Mills 
 and Co., being indebted to Smith (the Plaintiff), gave him a 
 Cheque on the Union Bank of London (the Defendants) in 
 his favour, and payable to his order. Smith duly received it, 
 and endorsed it, and crossed it with the name of his Bankers, 
 
Banking in Ireland. 131 
 
 the London and County Bank. The Cheque was stolen from 
 Smith, but it ultimately came into the possession, bona JideaxiA. for 
 value received, of a person who was a customer of the London 
 and Westminster Bank, He, in the ordinary course, paid it 
 into his Bankers, the London and Westminster Bank, who 
 presented it duly to the Drawees, the Union Bank of London 
 —the Defendants. The Union Bank of London paid it, 
 although, being crossed to the London and County Bank, it was 
 presented by the London and Westminster Bank. Smith, the 
 original Payee, from whom it was stolen, then brought this 
 action against the Union Bank of London, treating himself as 
 the rightful owner of the Cheque, and charging the defendants 
 with having wrongfully converted it, and claiming the amount 
 on the ground that the defendants had infringed the 21 and 22 
 Vic., c, 79, above quoted, which enacted that the Banker upon 
 whom a Crossed Cheque is drawn shall not pay it to any other 
 than the Banker named in the crossing ; and that by their 
 infringement of the Act he (Smith) had suffered loss. The 
 action was tried in the Court of Queen’s Bench, in April, 1875, 
 and judgment was given in favour of the defendants. It came 
 on for appeal subsequently and the decision of the Court 
 below was confirmed-Lord Cairns pronouncing the judgment 
 of the Court, The judgment rested chiefly on the ground that 
 the right of action lay not in Smith but in the Drawers of the 
 Cheque, to whom alone the Union Bank was answerable. 
 Smith had endorsed in blank the Cheque — a very material point 
 — and thereby had made it a negotiable instrument payable 
 to bearer, and it does not appear he took the precaution of 
 acquainting the Drawers — Mills & Co. — that it had left his 
 possession fraudulently, and requiring them to stop payment of 
 it at the Drawees and give him a duplicate. The right of 
 action against the Union Bank lay only with the Drawers of the 
 
13 2 The Law and Practice of 
 
 Cheque. They could refuse to have their account debited 
 with the amount of a document which was irregularly paid 
 through the oversight or negligence of the Drawee. But again, 
 the mere fact alone of the payment of the Cheque could not in 
 itself damnify or cause a loss to Smith, because the holder 
 could have easily devised means to have it passed through the 
 crossees, the London and County Bank, to the Drawees, who would 
 be bound to pay it, or stand the liability of an action by the 
 Drawers for dishonouring their draft. The crossing operated 
 
 only as a caution to the Drawees to be circumspect in the 
 
 * 
 
 paying of it; they paid it to the London and Westminster 
 Bank through oversight, no doubt, but their doing so, did not, 
 in itself, necessarily inflict a direct loss on Smith. 
 
 This judgment caused the passing of a further enactment on 
 the subject of Crossed Cheques — 39 & 40 Vic., c. Si, known as 
 “ The Crossed Cheques’ Act, 1876,” — and it is supposed to have 
 settled the law on the question, — as it doubtless has, until 
 some other unforeseen decision or unexpected exposition of the 
 existing Acts. This Act defines a general crossing and 
 a special crossing, and creates a new species of crossing which 
 is to be effected by the addition to either a general or a special 
 crossing of the words “not negotiable.” The 4th section 
 explains general and special crossings. It enacts : “ Where a 
 “ Cheque bears across its face an addition of the words ‘and 
 “ Company,’ or any abbreviation thereof, between two parallel 
 “ transverse lines, or of two parallel transverse lines simply, 
 “ and either with or without the words ‘not negotiable,’ that 
 “ addition shall be deemed a crossing, and the Cheque shall be 
 “deemed to be crossed generally. Where a Cheque bears 
 “ across its face an addition of the name of a Banker, either 
 “ with or without the words ‘ not negotiable,’ that addition shall 
 “ be deemed a crossing, and the Cheque shall be deemed to be 
 
Banking in Ireland. 
 
 t n 'y 
 
 1 JO 
 
 44 crossed specially, and to be crossed to that Banker.” The 
 1 2th section enacts: 44 A person taking a Cheque crossed 
 44 generally or specially, bearing in either case the words 4 not 
 44 negotiable/ shall not have, and shall not be capable of giving, 
 44 a better title to the Cheque than that which the person from 
 44 whom he took it had. But a Banker who has in good faith 
 44 and without negligence received payment for a customer of a 
 44 Cheque crossed generally or specially to himself, shall not, in 
 44 case the title to the Cheque proves defective, incur any liability 
 44 to the true owner of the Cheque by reason only of having 
 44 received such payment.* 
 
 *The construction of sect. 12 was brought before the Court of Common 
 Pleas Division in the case Matthiessen and Buck v. The Londoyi and 
 County Banking Company (41 L. T. Rep. N. S. 35) upon a demurrer to 
 the statement of defence. It was an action by the Payee of three Crossed 
 Cheques against the defendants for a conversion by receiving the proceeds of 
 three Crossed Cheques which had come into their hands with forged endorse- 
 ments. The statement of claim alleged that the Cheques in question were 
 given to one of their travellers by certain customers of the plaintiffs for goods ; 
 that they were drawn payable to plaintiffs or their order ; that two of them 
 were crossed with the words “and Co. ” ; that they were stolen by their travel- 
 ler, who forged their name on the back of each of them, and were then paid 
 into defendants’ bank ; that defendants received payment of them from the 
 bankers on whom they were drawn, and that by so receiving and dealing 
 with the said Cheques the defendants converted them to their own use, and 
 wrongfully deprived the plaintiffs of the possession of the same, and 
 that by the Act they could not have a better title to them than the person 
 from whom they were received, i.e., the traveller who forged the endorse- 
 ments, and obtained the amount by fraud. The defendants relied for pro- 
 tection on sect. 12 of the Crossed Cheques Act, 1876, above set out. 
 In the course of the argument the plaintiffs contended that the protection 
 given to Bankers by sect. 12 is only given with respect to Cheques 
 bearing on them the words “not negotiable,” and that the section had 
 therefore no application to the case before the court. “ It is true,” they 
 said, “ that this condition is not expressly mentioned in the latter part of 
 the section on which the defendants rely, but the first part of the same 
 
134 
 
 The Law and Practice of 
 
 The development in the legal aspect of Crossed Cheques 
 has thus been very gradual, and each successive enactment has 
 been the result of a legal judgment which showed that the Law 
 was not in accord with the views accepted by the general 
 public. The habit of crossing was in vogue for many years 
 before it obtained legal recognition. The first Act was 
 passed in 1856, and it was to the effect that a Cheque or Draft 
 crossed with a Banker’s name was payable only to, or through 
 such Banker. This act was the result of the judgment in the case 
 of Carlin v. Ireland , delivered on 12th December, 1855, which 
 
 section deals with Cheques crossed generally or specially, bearing in either 
 case the words ‘not negotiable.’ Then comes the word ‘ but’ introducing 
 the provision which was intended to afford a protection to Bankers. This 
 word ‘ but’ shows that the two clauses of the section deal with the same 
 subject matter. The second clause is in the nature of a provision, and 
 must be confined to those Cheques only with which the first clause deals.” 
 The plaintiffs contended this construction would violate the plain language 
 of the Act, and this was the opinion of the court. In giving judgment for 
 the defendant, Mr. Justice Grove said — “ Taking these two clauses as they 
 appear, by the plain reading and grammatical construction, they apply to 
 different states of things. The first clause applies to Cheques limited by 
 the words ‘ not negotiable’ ; the second clause, omitting these words, gives 
 protection to Bankers with regard to Cheques crossed generally or specially. 
 The second clause says nothing about the words ‘ not negotiable. ’ ” 
 With regard to the effect sought to be put on the word “but,” he observed 
 that to adopt the construction of the defendants “would be forcing the 
 words of the Statute, and virtually making a new section by interpolating 
 words into the second clause which do not occur there, and which he could 
 not suppose to have been otherwise than intentionally omitted. 
 
 It is not irrational to suppose that the Legislature wished to give to collect- 
 ing Bankers that protection which it was supposed that a previous Statute 
 (16 & 17 Viet., 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. ” 
 Mr. Justice Lindley’s judgment was to the same effect. He thought that 
 “ but ” is far too loose a word to control the plain meaning of a section 
 of an Act of Parliament. 
 
Banking in Ireland. 
 
 135 
 
 declared the law to be, that a general crossing did not affect 
 the negotiability of a cheque, and that any person taking such 
 crossed Cheque, bona fide , for value, was entitled to payment 
 by the Drawees. The next enactment on the subject was 
 with a view to remedy the defect which the case of Simmonds 
 v. Taylor discovered. In this case the crossing had been 
 obliterated, and there was no remedy against the offender, and 
 consequently, in 1858, it was enacted that the crossing, was a 
 material part of the Cheque, and a fraudulent alteration or 
 obliteration was constituted a felony. And finally, owing to the 
 decision in Smith v. Union Bank of London , the Act of 1876 
 was passed, defining the two forms of crossing in existence : 
 a general crossing (which consists of two parallel lines alone, or 
 with the words “ and Company ” or any abbreviation thereof, 
 between them), and a special crossing (which consists of a name 
 of a Bank between the lines) ; and creating the new species, “not 
 negotiable.” The words “ not negotiable ” do not signify 
 that the Cheque cannot be negotiated or transferred ; they 
 operate merely as a warning or direction to any person who 
 receives it, that he, even though he should have received it for 
 value and bona fide , has yet not any better title to it than 
 any previous holder, negotiator, or transferee. Thus, if a 
 Cheque so crossed be stolen by A., it is obvious that the wrong 
 doer has no bona fide title to it, and should he negotiate the 
 Cheque with a further party B., that further party B., even 
 though he receives it for value, bona fide , and without any 
 notice or suspicion that it has been wrongfully obtained, can 
 yet have no better title to it — no truer ownership in it, than A. 
 who obtained it fraudulently, and who has therefore no title at 
 all to it. 
 
 It is always to be borne in mind, however, that a Banker, 
 although he may have made payment of a “ not negotiable ” 
 
136 
 
 The Law and Practice of 
 
 Cheque upon him, which some previous transferror has 
 wrongfully obtained, is, nevertheless, protected, unless fraud, 
 complicity, or negligence, can be brought home to him. The 
 remedy against the Banker is, in all cases, in the hands of the 
 Drawer of the Cheque, and not of the Payee or any holder ; 
 for as has been said, the Banker has no privity except with the 
 Drawer. There is, however, an exception to this rule, that the 
 Drawer only can have a right of action against the Drawee. A 
 Cheque is an order payable on demand z vithout acceptance , but 
 if the Banker on whom it is drawn, initial it for future payment, 
 such an initialling is held to amount to an acceptance, and the 
 holder has a remedy against the Banker in case of dishonour or 
 want of funds of the Cheque so initialled when presented at the 
 appointed time. 
 
Banking in Ireland . 
 
 137 
 
 V 
 
 PRESENTATION, PAYMENT , AND DISHONOUR , OF 
 CHEQUES, 
 
 Time of Presentation. 
 
 THE STRICT LEGAL rule as to the time of presentation of a 
 Cheque is, that it must be presented as soon as possible after 
 it has been issued. The ordinary rule is that it must be presented 
 within a reasonable time, and as circumstances contribute to 
 define what this is, the question, whether the presentation 
 has been effected within a reasonable time, is, in a law suit, one 
 for the jury. The holder of a Cheque defers its presentation 
 for payment at his own risk. This does not convey that the 
 Drawer’s liability is voided by any such delay, for unless 
 presentation is delayed for six years or more (when the Statute 
 of Limitations terminates the liability), there is remedy against 
 the Drawer by the Payee or any lawful holder, by an action 
 at law for the amount. It means that in the event of the 
 Drawer’s death or bankruptcy, the holder may not be allowed 
 to claim under the estate, as he had been negligent in 
 obtaining payment during the lifetime or solvency of the 
 Drawer. Again, in case of the insolvency of the Banker 
 on whom the Cheque is drawn, where the Holder of a Cheque 
 did not present it within a reasonable time, the Drawer would 
 be discharged and the Holder would have no recourse to him, 
 or to any previous Endorser, for the amount. By the Law 
 Merchant and the custom of Bankers, a Cheque becomes stale 
 after six months from the date of issue, and payment is refused 
 by the Drawee, on the grounds that it is a Stale Cheque. The 
 
138 
 
 The Law and Practice of 
 
 reason of non-payment of a Stale Cheque is, that the delay in 
 presentation raises a presumption of defect or infirmity of the 
 Presentor’s title, and the Banker is entitled to act on the 
 doubt this presumption creates. If, however, it is proven to a 
 Banker that a stale Cheque is bona fide , e.g, that it is presented 
 by the Payee in person, who explains the delay satisfactorily, 
 and that there are sufficient funds to pay it, the Banker is 
 empowered to honour it, and protected in so doing. 
 
 A Banker (A.) is not entitled to delay presentation of a 
 Chequeon another Bank(B.) lodged by aCustomer. The custom 
 of Bankers decides what would or would not be a delay ; and in 
 case the Banker (A.) has been guilty of negligence in presenting 
 the Cheque, and that the Drawer die, or be in default ; or that 
 the Drawee fail, and the Customer who lodged it is damnified 
 by such default or failure, the Banker (A.) is liable. Presenta- 
 tion by post, or through one’s own Banker is a good 
 presentation. Where the holder is a third party he must not 
 fail to present the Cheque within reasonable ti,me in order to 
 maintain an action against the primary Payee in case of 
 dishonour. Likewise, failure on the part of the last holder to 
 make due presentation, will absolve the previous endorsers from 
 liability. The legal rules of presentation have regard chiefly 
 to the failure of the Drawees, and most of the cases are on this 
 point. In all instances a Cheque must be presented on 
 business days — (not holidays * ) — and during business hours, 
 in order to be a valid presentation. 
 
 *The Bank Holidays Act (25th May 1871), created the following holidays 
 for English and Irish Banks : — Easter Monday, the Monday in Whitsun 
 week, the first Monday in August, and the 26th day of December if a 
 week day. Christmas Day and Good Friday have always been holidays. 
 The Queen’s Birthday (24th May), was observed as a Bank holiday in 
 Ireland and England, before the passing of the above Act. 
 
Banking in Ireland . 
 
 139 
 
 Payment of Cheques. 
 
 In practice, a Banker generally extends to the Presentor of a 
 Cheque the courtesy of consulting his wishes as to the manner 
 in which he desires to receive payment, and acceding to these 
 wishes if practicable. But such a course is entirely a courtesy 
 on the part of the Banker, because his legal duty is discharged 
 if he makes or offers payment in what is known as Legal 
 Tender. Legal Tender is defined by the Coinage Act, 1870 
 (33 Vic. 9 c. 10 , s. 4). It consists (in Ireland) of Bronze to the 
 limit of one shilling, Silver Coins to the limit of forty shillings, 
 and Gold to any extent. In England payment of sums over 
 can be legally tendered in Bank of England Notes, except 
 by the Bank of England itself ( 3 4 William. 4th , c. 98, s. 6). 
 
 But special Acts declare that Bank of England Notes are not 
 to be deemed legal tender in Scotland or Ireland. If a Banker 
 pays a Cheque in forged or worthless Notes, or in 
 spurious or counterfeit Coin, and that the person to whom 
 the payment is made, accepts such Notes or Coin and makes no 
 objection at the time of the payment, he has, upon discovery 
 of the worthless nature of the Notes or Coin, no recourse 
 against the Banker, except he can prove fraud on the Banker's 
 part, or prove that he (the Banker) was cognisant of the fact 
 that the Notes or Coin he disbursed were worthless. 
 
 If a Payee consents to accept payment in«?certain Bank 
 Notes, ether than the issue of the paying Bank, and that the 
 Bank whose notes he has thus accepted stop payment, 
 even on the following day, he cannot hold the Banker 
 from whom he received and accepted the notes liable; 
 nor can he compel him to change them for other 
 notes of full value, as he took them voluntarily, and at 
 his own risk. As in Ireland, the only Legal Tender for 
 
140 
 
 The Law and Practice of 
 
 sums beyond ^2 in silver and is. in bronze, is gold, and a Payee 
 is entitled to legal tender ; therefore, if he dispenses with the 
 legal tender and elects to accept payment in Bank Notes of 
 any establishment, he does so entirely at his own peril and 
 must abide the consequences. If he receives gold in payment, 
 he is bound to satisfy himself of its currency and genuineness 
 immediately on payment, and if he neglects so to do, the 
 Banker is free from any liability under a subsequent discovery 
 of a spurious coin. 
 
 Once a payment is tendered by a Banker, and accepted by the 
 Presentor of the Cheque, the money when paid becomes 
 the Presenter's property and ceases to belong to the Banker. 
 So that should a Banker pay a Cheque drawn by A., and 
 immediately after payment discover that A. had not sufficient 
 funds, or that the Cheque had been stopped, or that it was 
 specially crossed, or some such circumstance, — nevertheless the 
 money paid has entered into the possession of the Payee and 
 cannot be recalled by the Banker, even though the party 
 receiving the payment had not moved from the Bank counter ; 
 but if the Banker should discover that he had overpaid the 
 Presentor of the Cheque, he could recall the money to the 
 extent of the overpayment. But if a Banker receives from his 
 Customer in lodgment, without observation, a Cheque drawn 
 on him by another Customer, for which Cheque there are not 
 sufficient funas, the non-refusal by the Banker of the Cheque 
 is not a guaranty to pay the amount, and he can return it 
 unpaid on the following day to the Customer who lodged it, 
 provided he (the Banker) did not receive funds from the 
 Drawer before it was returned dishonoured and apply them in 
 payment of subsequently presented Cheques. If it is a 
 Banker’s regulation to require his Customer to draw Cheques 
 exclusively on the engraved or printed form of Cheque 
 
Banking in Ireland. 141 
 
 which he supplies, and that the Customer is made aware either 
 expressly or constructively of the regulation, the Banker is 
 justified in refusing to pay orders drawn otherwise than on the 
 form. The Bank of England, for example, will not honour any 
 Cheques which are not drawn on the form supplied by the 
 Bank, and the restriction, being of a protective nature, should 
 be enforced by all Bankers. If payment be refused on this 
 ground, the reason should be explicitly stated. If a Banker, 
 or any authorised official of a Bank, or any official purporting 
 to be authorised, should initial a Cheque for subsequent 
 payment, — that is to say, where another Banker presents a 
 Cheque avowedly to be marked for payment upon the following 
 day, the Drawee is bound by the initials. Such marking or 
 initialing, though it does not amount to a legal acceptance, 
 nevertheless, by the custom of Bankers, which is a portion of 
 the Law Merchant, yet operates to bind the Banker who so 
 marks to pay the amount on the following day. But if the 
 holder neglect to present the Cheque so marked on the ensuing 
 day, he is guilty of unreasonable delay, and the Banker’s 
 engagement to pay is rescinded by such delay. Even should 
 the Drawer die after the initialing, and before presentation for 
 payment, though death under ordinary circumstances invalidates 
 a Cheque, yet the Banker who has initialed it is bound to pay 
 it, and protected in so doing. 
 
 A Cheque is transferable by delivery, and bona fide delivery 
 of it passes the rights and equities in it. A Cheque is not 
 money; but the amount of unnegotiated Cheques, if in order, 
 may be admitted as money to Probate or Letters of Administra- 
 tion of the effects of a bona fide holder. As a Cheque is not 
 money, a Banker is not bound to surrender, or justified in 
 surrendering, a Bill entrusted to him for collection, unless the 
 Cheque is drawn on himself and he has funds of the Drawer 
 
142 
 
 The Law and Practice of 
 
 to pay it. If a Banker surrender a Bill or documents upon a 
 Cheque, he does so at his own risk ; and if the Cheque is 
 received from a person other than the Drawer, it is questionable 
 whether he would have recourse except to the Drawer, in the 
 event of dishonour. 
 
 Stopping Payment of Cheques. 
 
 As a Cheque is an order to a Banker to pay, the maker of that 
 order, i.e., the Drawer, can of course rescind it, and instruct the 
 Banker not to pay a certain Cheque which has been issued by 
 him. This act of countermanding is called stopping the 
 payment. The order to stop payment is an executory order. 
 It should be in writing and signed, and it is as binding on a 
 Banker as the order to pay, so that if a Banker pay a Cheque 
 drawn on him, after the payment thereof has been stopped, he 
 is not discharged, and the Drawer’s account cannot be debited 
 with the amount. A Drawer is entitled to stop his Cheque if 
 he wishes, and he is not bound to give the Banker his reasons 
 for so doing. The ordinary motives for stopping payment of a 
 Cheque are, that the Cheque has been lost, or stolen ; or 
 fraudulently obtained ; or obtained on certain conditions which 
 are unfulfilled or violated. If payment of a Cheque is refused 
 to the Payee on the ground that it has been stopped, the 
 Payee’s remedy is solely against the Drawer who can remove 
 the stop and withdraw his countermanding order. 
 
 Dishonour. 
 
 As a Banker is said to honour a Cheque when he obeys the 
 order or command of the Drawer to pay the amount specified 
 on demand, he is said to dishonour it when he refuses to obey. 
 The motive for refusal may be some irregularity in the Cheque 
 itself, such, for instance, as an unconfirmed alteration, a 
 
Banking in Ireland . 
 
 143 
 
 variance in the Drawer’s signature, or a post-dating ; or it may 
 be because the Cheque is incomplete, by not being dated for 
 instance, or it may have been mutilated ; or the Banker may 
 refuse payment because the Cheque is crossed. But what is 
 generally understood by the expression dishonouring a 
 Cheque is the refusal to pay the amount, because the Banker 
 has not sufficient funds of the Drawer in his possession to 
 enable him to pay it in full. A Banker is not empowered to 
 make a part payment on a Cheque : for instance, if A. draws 
 a Cheque for ^50, and his balance at the Drawee’s is but ^30, 
 the Drawee is not entitled to pay the ^30 on account. 
 
 It has been argued, that a Banker who did so pay 
 on account the Drawer’s balance in his hands, that 
 balance being insufficient for the full discharge of the amount 
 of the Cheque, would be protected in any action by the Drawer 
 on the payment ; but it appears to be the better opinion that, 
 in adopting such a course, the Banker was not complying with 
 the Drawer’s order, which was to pay ^50; and there is no 
 middle course between compliance and non-compliance. 
 Neither is a Banker empowered to disclose to the Presenter the 
 balance of the Drawer’s in his hands, thereby to enable the 
 Presenter to lodge to the Drawer s credit the amount deficient, 
 and so provide sufficient funds to meet the Cheque and obtain 
 payment. Making a part payment on a Cheque, as above, would 
 be a disclosure of the Customer’s account, and, on no occasion 
 or under no circumstances — except as a witness in some of 
 Her Majesty’s Courts of Law or Equity — can a Banker disclose 
 the state of his Customer’s account. If he should do so, and 
 that the Customer is thereby damnified, an action lies against 
 the Banker by the Customer. 
 
 A Banker is bound to give verbally a reason for dishonouring 
 his Customer’s Cheque. Merely saying he cannot pay it, is 
 
144 
 
 The Law and Practice of 
 
 not a sufficient answer to a Presenter. Nor is the answer “ pre- 
 sent again” (which some Banks are in the habit of making), 
 a sufficient answer, unless the reason for requiring the future 
 presentation is given, as for instance, that the Banker has not 
 had time to realize the funds the Drawer had lodged, which is 
 a justifiable reason for refusing to pay. The usual words of dis- 
 honour are “ Refer to Drawer.” These generally mean that, 
 as the Banker has not sufficient money of the Drawer to pay the 
 amount, the holder must present it to the Drawer for redemption. 
 “ Refer to Drawer ” is usually equivalent to saying there are not 
 enough funds to meet the Cheque, though this is sometimes 
 more plainly expressed by “not Sufficient Funds”; or 
 shortly, “ N. S.,” which is also a general dishonour. This 
 implies that the Drawer has some funds at the Bankers ; whereas 
 “no funds” and “no account” are unequivocal forms. 
 “ Refer to Drawer ” is a comprehensive answer of dishonour, 
 and may mean merely that there is an irregularity in the 
 Cheque, or that the payment has been stopped; it does not 
 necessarily convey or imply that there are insufficient funds, 
 though it is the answer usually given in case of absence of 
 funds or of credit. 
 
 If a Banker wrongfully dishonour his Customer’s Cheque, 
 and refuse to pay it while there are sufficient realized monies 
 of the Drawer in his hands — no matter if such refusal arise 
 through some error in the Bank Books, whereby the Drawer’s 
 balance is erroneously stated — an action by the Drawer will lie 
 against the Banker, and damages be obtainable. Dishonour is, 
 per se, a wrong to the Drawer, and, in case of its being wrongful, 
 entitles him to damages in an action against the Banker. The 
 extent of these damages is generally gauged by the injury done 
 to the Plaintiff’s credit and commercial and financial reputation 
 A Banker is not bound to give notice to the Drawer of a Cheque 
 
Banking in Ireland. 
 
 145 
 
 upon him that the Cheque has been refused payment, for non-com- 
 pliance with the order to pay is sufficient notice. If a Cheque 
 is imperfect, i.e., that a material portion is mutilated — even 
 though the pieces be fastened together — the Banker is bound to 
 refuse to negotiate it, because the presumption is that the fact 
 of its having been torn is prima facie evidence that the Drawer 
 intended to cancel it. If a Banker pay such a mutilated Cheque 
 on him, and that the Drawer or rightful owner is damnified by 
 such payment (even assuming the mutilation to be unintentional), 
 an action will lie against the Banker for the amount. A Banker, 
 however, is justified in refusing payment of a Customer's 
 Cheque, even though he have funds to pay it, if he have positive 
 knowledge that it is for an illegal and fraudulent purpose, 
 such as the corrupt procurement of a government appointment. 
 Bankers should in all cases keep a record of the Cheques they 
 dishonour, in order to be in a position to refute a false allegation 
 by the Drawers of such Cheques, that they were wrongfully 
 dishonoured. The death of a Drawer is reason for non-pay- 
 ment of his Cheque. A Banker cannot pay the Cheque of a 
 Customer who has since died, if he has knowledge of the death, 
 unless, as has been stated, he has previously initialed it for pay- 
 ment. In this case the initialing amounts at the time to a 
 withdrawal from the Drawer’s account of funds to the amount 
 of the Cheque so initialed. Upon the death of an in- 
 dividual, his personalty immediately vests in his executors, 
 or administrators, and the Banker is accountable to them 
 for the monies of the deceased. But the death of an Endorser 
 does not affect the negotiability of a Cheque, for the Banker 
 has privity only with the Drawer. The Bankruptcy of the 
 Drawer is also reason sufficient for non-payment of his Cheque ; 
 because on a person’s Bankruptcy all his property vests, in 
 the first instance, in his creditors, and subsequently in 
 
146 
 
 The Law and Practice of 
 
 trustees or assignees, and his Cheque, if paid, would be paid to 
 the detriment of creditors. The Banker, however, must 
 have knowledge of the Death or Bankruptcy of his customer. 
 The knowledge may be by formal notice, in which case it is an 
 actual knowledge ; or, by general report, as in a case such as that of 
 the death of a notable individual, in which case the knowledge 
 would be assumed against him, and it would rest with him to 
 prove that he was not aware of what was a common topic of 
 news. An announcement of death in the newspapers is suffi- 
 cient notice to the Banker ; and if such announcement is untrue , 
 the Banker is protected if he acted upon it bona fide in belief 
 of its truth. 
 
 Lost Cheque. — If a Cheque be lost, the Drawer can be 
 compelled to give a duplicate, under proper and sufficient 
 indemnity. 
 
 Knowledge of Fraud on part of Customers.— If a 
 
 Banker has actual knowledge, that his Customer has drawn a 
 Cheque for a fraudulent purpose, he is not only entitled to 
 refuse to honour it, but also liable if he does honour it, because 
 in honouring it he would be abetting a fraud. But the 
 knowledge must not be of a speculative kind, it must be such 
 as does not necessitate any enquiry into the action of the 
 Customer, for a Banker is not entitled to enquire ; and if he 
 is without such positive knowledge, he is bound to perform his 
 obligations to the Drawer and cannot refuse to pay his Cheque. 
 A Banker cannot, knowingly, hold money to be disposed of for 
 illegal or immoral purposes. If he assent to so hold 
 money, which he knows to be illegally applied, he can be 
 indicted for conspiracy. 
 
Banking in Ireland. 
 
 147 
 
 Criminal Offences. — If a person draw a Cheque on a 
 Bank where he has no account and obtain money or goods for 
 such Cheque, and that the reason given for the dishonour be 
 “ no account the Drawer of it can be indicted by the Holder 
 for obtaining money (or goods) under false pretences — the false 
 pretence being, that he had an account at the Bank. It is not a 
 false pretence, however, if the Drawer really have an account 
 but not sufficient funds, because he can plead that he expected 
 to have funds, &c. To obtain money on a forged Cheque 
 knowing it to be forged, is to obtain it under a false pretence. 
 To write the endorsement of a Payee to whose order a Cheque 
 is made payable, with the intent to defraud, is forgery. By 
 Statute, it is forgery to alter the crossing as it is to alter 
 fraudulently any material part of a Cheque. 
 
 Paid Cheques. 
 
 A Cheque when paid must be cancelled by the Drawee 
 (by the Stamp Act, 1870). It is the property of the Drawer, 
 though it remains in the possession of the Banker on whom it 
 is drawn, until it is delivered to the Drawer. As the Cheque 
 is to the Banker the proof that he has paid the money, and is 
 both his authority to debit the Drawer’s account and evidence 
 of his having done so, he is not bound to surrender it to the 
 Drawer without a written acknowledgment. Some Banks 
 return to the Customer his paid Cheques at the termination of 
 each half year when the Bank’s accounts are made up and the 
 Books closed, obtaining a receipt acknowledging the correctness 
 of the balance as stated in the Customer’s pass book, and also 
 acknowledging the receipt of the paid Cheques. Others 
 pursue the course of surrendering the paid Cheques at those 
 intervals during the progress of the Customer’s account when 
 he obtains his pass book, written up to date, and of requiring 
 
148 The Law and Practice of 
 
 his initials by way of a receipt for the Cheques paid during the 
 time embraced in this periodical writing up. If on this 
 periodical delivery the Bank obtained from the Customer a 
 written acknowledgment that the Cheques surrendered were 
 correctly debited to his account, it would be a safe and 
 serviceable proceeding, for thereby the Bank would not only 
 obtain a concurrent ratification of its bookkeeping, but it 
 would get rid of those vouchers, the accumulation of which is 
 so undesirable. But, when the Customer’s initials in the 
 pass book are only by way of acknowledgment of the receipt 
 of such a number of paid vouchers, it cannot be considered 
 a perfect system. 
 
 The Cheques when paid, are to the Drawer prima facie 
 proof of payment to his Creditor, the Payee, if endorsed by 
 him. But it is only a proof of payment , and not a sufficient or 
 final proof of a debt . 
 
Banking in Ireland ’ 
 
 149 
 
 VI. 
 
 PASS BOOK— OVERDRAWN CURRENT ACCOUNT— RIGHT 
 TO SUE ON CHEQUES . 
 
 Pass Book. 
 
 THE part occupied by a Pass Book in Banking practice 
 is thus exhaustively defined by Grant : — “ A book called a 
 pass book , is delivered by the Bankers to the Customer, in 
 which at the head of the first page and there only, the Bankers 
 by the name of their firm are described as the Debtors, and the 
 Customer as the Creditor in the account ; on the Debtor side 
 are entered all sums paid to or received by the Bankers on 
 account of the Customer, and on the Credit side all sums paid 
 to him or on his account ; and these entries being summed up at 
 the bottom of each page, the amount of each, or the balance 
 between them is carried over to the next folio without further 
 mention of the names of the parties, until the book being full, 
 it becomes necessary to deliver a fresh one to the Customer. 
 For the purpose of having the book made-up by the Bankers 
 from their own books of account, the Customer returns it to 
 them from time to time ; and the proper entries being made by 
 them up to the day on which it is left for that purpose, they 
 hand it again to the Customer, who thereupon may examine it, 
 and if there appears any error or omission, it is his business to 
 send it back to be rectified ; if he does not, his silence is 
 regarded as an admission that the entries are correct : but no 
 other settlement, statement or delivery of accounts, or any 
 other transaction which can be regarded as the closing of an 
 
150 The Law and Practice of 
 
 old, or the opening of a new, account, or as varying, renewing or 
 confirming (in respect of the persons or the parties mutually 
 dealing) the credit given on either side, takes place in the 
 ordinary course of business, unless when the name or firm of 
 one of the parties is altered, and a new account thereupon 
 opened in the new name or firm.” 
 
 An entry in a Pass Book of an amount to the credit of the 
 Customer, is evidence, prima facie , of such a lodgment having 
 been made, and the entry binds the Banker unless he can 
 prove that it was made in error. The burden of proof will 
 generally lie on the Banker, and the question at issue is one to 
 be decided by the jury. The difficulty of disproving such an 
 entry is apparent, and a verdict may depend on the relative 
 credibility of the plaintiff and defendant. Making a false entry 
 in a Pass Book with the intention to defraud, is forgery, and 
 punishable as such. 
 
 Interest on Current Account. 
 
 The Irish Banks, do not as a rule, allow interest on the 
 credit balances of their Customers. Generally speaking, 
 however, it is a recognised rule that all accounts of a charitable 
 or benevolent nature, and those of bodies or societies whose 
 object is to benefit — intellectually, morally, or socially — their 
 members or the public, are accorded the privilege of receiving 
 interest on their balances, usually at Deposit rates. Some public 
 accounts, and private accounts which show a continuous very 
 large credit balance, are also favoured, but in these cases it is 
 a matter of arrangement with the Bank and not a recognised 
 right as in the case of charities. 
 
 Overdrawn Current Account. 
 
 An Account is said to be overdrawn when the Account- 
 holder has drawn more than the amount of his balance. The 
 
Banking in Ireland. 
 
 I 5 I 
 
 rerations between the Banker and his Customer are then 
 reversed, for the Banker becomes the Creditor, and the 
 Customer the Debtor. The remedy for recovery of the 
 amount is simply a common-law action for debt. A Banker, 
 in his own protection, generally requires a deposit of securities 
 or a guarantee sufficient to cover the amount he allows his 
 Customer to overdraw, and he charges interest on the actual 
 daily balance owed. An agreement, express or implied, on 
 the Banker’s part, to allow his customer a stated overdraft, 
 is considered as binding on the Banker, unless there is a 
 failure of the conditions under which such agreement was 
 made, or that the aspect of the position and business of the 
 Customer has altered. 
 
 An agent cannot overdraw his principal’s account so as to 
 render the principal liable to the Banker, unless knowledge 
 of such overdrawing can be traced to the principal, for 
 knowledge implies consent. 
 
 If a Banker, holding securities for an overdraft, realise such 
 securities, he is only entitled to the amount due with reason- 
 able simple interest thereon, and any surplus after payment 
 of the amount due to himself, must be held by him for the 
 benefit of the Debtor. 
 
 The Paid Cheques of an Account-holder who maintains a 
 Credit Balance at his Banker’s, belong to the Account-holder, 
 and though he may allow them to be retained by the Banker 
 nevertheless they are in his (the Customer’s) constructive 
 possession, as he can claim and obtain them at any time ; but 
 it is doubtful if, in the case of an overdrawn account, the 
 Banker need restore the Paid Cheques as long as the Drawer 
 is his Debtor, as they are his vouchers of the payments, and 
 his evidence of the Drawer’s indebtedness ; and, in an action for 
 the balance due, are his proof of the debt. 
 
152 
 
 The Law and Practice of 
 
 Lodgment for Special Purpose. 
 
 If one who is a Debtor on foot of an overdrawn account, 
 give money to the Banker with instructions to apply the 
 amount in payment of specified acceptances falling due, or to 
 obtain a Bank Order, or for any purpose other than the 
 credit of his overdraft, the Banker is bound to apply the 
 money as directed, and he cannot apply it in reduction of the 
 Debtors overdraft. 
 
 Two Accounts. 
 
 It has been laid down and can be accepted as law, that 
 where a person has accounts at two branches of the 
 same Bank, one of which accounts is Debtor and the other 
 Creditor, the Manager of the Branch where the Credit 
 Balance is held can refuse to pay a Cheque on such Credit 
 Balance as long as the Customer is indebted to another 
 branch to the amount of the Credit Balance or more. For 
 this purpose branches of a Bank are considered as the same 
 Bank. Further, by law, the Credit Balance at one branch 
 can be applied in reduction or discharge of the Debit Balance 
 at another branch, even without notice to the Customer. 
 
 Right to Sue on a Cheque. 
 
 The right to sue on a Cheque is in the Holder of the Cheque. 
 His remedy is against the person from whom he received it ; 
 against the previous endorser, if there be such; and if the 
 Holder be the first Payee, against the Drawer. In the case of a 
 free gift of a Cheque, however, the Payee, in case of its dis- 
 honour, has no action against the Drawer, and cannot enforce 
 the payment of the amount. No right of action against the 
 Banker is in any holder, unless the Banker have actually or 
 constructively promised the Holder to pay the amount to him. 
 
Banking in Ireland . 
 
 153 
 
 If a Cheque is wrongfully dishonoured, the Payee has recourse 
 to the Drawer, and the Drawer only can recover damages from 
 the Banker. The reason of this is, that there is no privity 
 except between the Drawer and Drawee, and the Banker owes 
 no duty to the Payee. 
 
 The principle of privity is well defined in the legal decisions. 
 In a case where A. lodges a sum of money at a Banker’s to 
 be paid in specified portions to B., C., and D., in case the 
 Banker refuse to honour the Cheque of B., C., or D., for 
 payment of the amounts, they have no action against him — 
 the right of action is in A. But if the Banker had informed 
 B., C., and D., that he held, at their disposal, the amount lodged 
 by A., this would create a privity, and give them a right of 
 action against him in case of dishonour. Assent by a Banker 
 to perform certain duties, although those duties be outside his 
 ordinary business as a Banker, binds him, and in case of 
 failure in the performance he is liable to his Customer. Assent 
 may be either actual or constructive. If a Banker undertake 
 to make investments, or to collect the coupons or interest due 
 on securities deposited with him for safe custody, he is bound 
 to do so, and can be made liable if he neglect and loss ensue. 
 
 L 
 
i54 
 
 The Law and Practice of 
 
 VII. 
 
 BILLS OF EXCHANGE AND PROMISSORY NOTES. 
 THE CHIEF BUSINESS in Banking is lending out a 
 certain proportion of the monies held on Deposit Receipt 
 and on Current Account. These loans are mostly by way 
 of Bills of Exchange and Promissory Notes, and are called 
 Discounts. 
 
 Bills of Exchange are believed to have been introduced 
 into Commercial dealings by the Italian Merchants. They 
 were known and in use in the 14th Century, and the first case 
 relating to them in the English Law Courts was that of Martin 
 v. Boure , decided in the reign of James the First. 
 
 The importance and utility of Bills of Exchange in Com- 
 mercial transactions are paramount. Blackstone’s illustration 
 of the practical advantage of the system is as follows : — Let us 
 suppose that B., residing in Liverpool, wishes to receive 
 ^1,000, which awaits his orders in the hands of F. at New 
 York. He applies to D., going from Liverpool to New York, 
 to pay him the above amount, less the usual rate of Discount, 
 and to take his Draft or Bill on F. for the ;£ 1,000, payable at 
 sight. Now, this arrangement may, in truth, accommodate 
 both B. and D., for B. receives the amount of his debt on 
 transferring it to D., and D. carries his money across the 
 Atlantic in the shape of a Bill ot Exchange, without danger 
 or risk in the transportation, and, on arriving at New York, he 
 presents his Bill to F. and is paid. The Bill of Exchange 
 operates then in this way, that, if accepted , it effects a transfer 
 of the right of action, as against F. (the party originally indebted), 
 from B. to D. 
 
Banking in Ireland, 
 
 155 
 
 A Bill of Exchange is a negotiable unconditional written 
 order from A. who is called the Drawer, to B. who is called 
 the Drawee, to pay him, or a third party C. who is called the 
 Payee, a stated sum of money specified therein, “ absolutely 
 and at all events.” A Cheque is legally and technically an 
 inland Bill of Exchange payable on demand ; but the Bills of 
 Exchange we now deal with are those which are drawn payable at 
 a future stated time. They differ from Cheques in many respects. 
 A Cheque is due whenever it is presented to the Drawee — a 
 Bill is due on a certain day. The Drawer of a Cheque must 
 have money or credit with the Drawee — the Drawer of a Bill 
 need not. The death of a Drawer of a Cheque rescinds the 
 order to the Drawee to pay — not so with a Bill. The Drawer 
 of a Cheque is not discharged to the Payee by want of 
 presentment of the Cheque to the Drawee — the Drawer of a 
 Bill is discharged. The Drawee of a Bill usually gives an 
 undertaking to pay the Bill when it becomes due, — this is 
 effected by his writing his name upon it, and when this is 
 done- he is called the Acceptor and his act an Acceptance ; 
 — the Drawee of a Cheque does not accept or undertake to 
 pay the amount drawn on him. A Cheque is due when 
 demanded from the Drawee, but the Drawee of a Bill is 
 allowed three days in addition to the date upon which the 
 Drawer orders him to pay (unless it be stated on the Bill 
 that it is drawn “without grace”) ; these days are called the days 
 of grace, and though originally allowed to the Drawee as a 
 favour, they are now settled as his legal right. 
 
 A Bill, like a Cheque, must be dated and located ; must have 
 a Drawee ; must have the amount of money set out in writing ; 
 must be stamped as directed by the Statute. And further, it 
 must be payable “ absolutely and at all events,” without 
 conditions, and independent of contingencies. It must be 
 
The Law and Practice of 
 
 156 
 
 payable at a certain time which must inevitably come to pass. 
 For instance, a Bill drawn “ three months after the death of 
 A. B.” is a good Bill, because its term is one that must be 
 fulfilled. But a Bill drawn “ three months after the realization 
 of ” certain goods, is not a good Bill, for the realization is but 
 a contingency, and by no means an inevitable occurrence. 
 
 A Bill passes by delivery if payable to bearer , and by 
 endorsement and delivery if payable to order ; but whereas 
 the right of action against the Drawee for non-payment 
 in the case of a Cheque lies solely in the Drawer — in 
 the case of a Bill the right of action is alone in the holder — but 
 he must be a bona fide holder. A Cheque by being crossed “ not 
 negotiable/’ as has been shown, can be so drawn as to destroy 
 the title of a holder for value, where a previous holder’s title 
 has been fraudulent or infirm. But there is no similar pro- 
 vision in respect to the negotiators of Bills of Exchange. A 
 bona fide holder of a Bill can compel payment, no matter what 
 the infirmities in an antecedent holder’s title may be. A Bill 
 of Exchange further differs from a Cheque on a Banker, in 
 that if the Drawee, being the Acceptor, pay the amount on an 
 endorsement forged by the Holder, he is not discharged or 
 exonerated, as the Drawee of a Cheque is. 
 
 Endorsement. — A Bill is endorsable similarly as a Cheque 
 — in blank or specially, — and, as in the case of a Cheque, in 
 the first instance it becomes payable to the bearer — if a bona 
 fide holder ; and in the second, only to the special Payee, or to 
 his further order ; and it can be endorsed in blank by any 
 further endorsee. The essence of a Bill is that it is assignable 
 — it is a Bill of Exchange — and the assignability is unlimited, 
 just as the assignability of a Cheque is. 
 
 A Bill of Exchange is a simple contract ; but it differs from 
 all other simple contracts in that it is assignable, and does not 
 
Banking in Ireland . 
 
 157 
 
 require a consideration, as a consideration prima facie exists, 
 and is therefore presumed by law until such a presumption is 
 disproved. But if the acceptance is proved to have been for 
 an immoral or illegal consideration, the instrument is void as 
 against the Acceptor. An acceptance for a gambling debt, 
 for instance, is for an illegal consideration, and though an 
 innocent Endorsee can recover from the Drawer, he cannot 
 from the Acceptor ; and if the Acceptor pay the Bill to the 
 Transferee, he can recover the amount from the Drawer, 
 Stock-jobbing is a species of gambling, and an acceptance 
 to a Broker for a debt contracted by gambling in Stocks, is for 
 an illegal consideration. But except in cases of an acceptance 
 for an illegal or immoral consideration, the Acceptor cannot 
 plead in defence to an action by an Endorsee that there was 
 no consideration — that is, that he got no value for the accep- 
 tance, and the onus lies on him to prove that the acceptance 
 was actually and absolutely given for an illegal or immoral 
 consideration. 
 
 Promissory Notes seem to have had their origin in 
 the “ Goldsmiths’ Notes,” of which mention is made in 
 the Introduction.* They are not as ancient an instrument 
 as Bills of Exchange, and do not seem to have been regarded 
 as a negotiable security until about the middle of the 17th 
 century. And though at that period they were so recognised 
 by the merchants, the Statute Law did not place them on 
 the same footing as Bills of Exchange till Queen Anne’s 
 reign (3 and 4 Ann ., c. 9) ; and not till the time of Lord 
 Kenyon was it judicially fixed that Promissory Notes, like 
 Bills, should be entitled to the 3 days’ grace. 
 
 * Lord Holt says they were “an invention of the Goldsmiths in Lombard 
 Street,” 
 
i 5 8 
 
 The Law and Practice of 
 
 A Promissory Note, or note of hand, is a writing, wherein 
 the maker (/.<?., the person who signs it) promises to pay a 
 certain person, or his order, or the bearer, a certain stated sum 
 of money, at a certain time, absolutely and at all events. 
 That time may be upon demand, or at sight (which is equiva- 
 lent to on demand), or upon a specified date, or a specified 
 number of days or months after sight. There are no fixed 
 forms of words in which either a Bill of Exchange or a Promis- 
 sory Note must be drawn. The usual form of a Promissory 
 Note is as follows : — 
 
 [£50. \ Dublin , 1st November , 1880. 
 
 [Three\ months (or on demand , or days after sight) 
 
 I (or we, or we jointly and severally ), promise to pay A. B., 
 or his order , [Fifty\ Pounds Sterling , value received . 
 
 The promissor or promissors sign at the foot. But any 
 writing that contains a promise as above stated is valid in law, 
 and is a legal instrument if duly stamped. In a Promissory 
 Note the Maker or Promissor, occupies the same position 
 in contemplation of law as does the Acceptor in a Bill of 
 Exchange — that is to say, he is the primary Debtor, and all 
 the other parties are but collatterly liable — that is, liable in the 
 event of the Promissor’s default. A Note drawn, “ we promise 
 to pay,” is called a Joint Note, in which the promissors are 
 liable jointly ; one drawn, “we jointly and severally promise to 
 pay,” is a Joint and Several Note, in which the promissors 
 are liable jointly and individually. 
 
Banking in Ireland, 
 
 159 
 
 A Bank Note is a Promissory Note, unstamped by Statute, 
 but it differs from an ordinary Promissory Note in that it is 
 considered in law as actual money ; whereas an ordinary 
 personal Promissory Note is deemed a security for money only. 
 A person cannot make a Promissory Note to himself, or 
 to himself and another person ; but he can make one to himself 
 or his order and it becomes a negotiable instrument when 
 endorsed by him. A note signed by two or more, and drawn 
 “ I promise,” is a joint and several note : and in a joint and 
 several note, as has been said, all the promissors are principals, 
 and individually liable. If one of the promissors to a joint or 
 to a joint and several note, pay the entire amount, he may 
 maintain an action against his fellow promissors for their 
 individual contributory share. A Promissory Note can be 
 drawn payable by instalments, but it must bear the stamp 
 duty of the gross amount, and although a Cheque payable 
 “on demand” must be presented for payment without any 
 unreasonable delay, nevertheless, a Promissory Note so drawn 
 may lie out unpresented for any length of time — even for 
 years, as it is an instrument intended only as a continuing 
 security. A Promissory Note, however, is presumed at law 
 to have been discharged if not presented or renewed during 
 twenty years after the making or maturing of it. 
 
 An Accommodation Bill is one which has been signed 
 by a party, without a consideration, and merely as an act of 
 accommodation to enable the person accommodated to obtain 
 money on the Bill. The peculiarity of it is that it is accepted 
 under an express or implied undertaking that the Acceptor will 
 be indemnified by the Drawer against any claim under it. 
 The latter is understood to be primarily liable, but the 
 accommodating party, whether Acceptor or not, cannot divest 
 himself of his liability to a bona fide holder. Even a person 
 
i6o 
 
 The Law and Practice of 
 
 who has been induced to accept through fraud, is liable to an 
 innocent holder. 
 
 The usual form of words used in a Bill of Exchange is as 
 follows 
 
 [£50. ] Dublin , 1st November , 1880. 
 
 [Three) months [or days] after date* [or after sight ] pay to my 
 order [or to bearer , or to a third party] the sum of [Fifty] Poimds 
 Sterling , value received. 
 
 To Mr. William Smith , 
 
 ,o, Tipton Street, B rown\ 
 
 Liverpool. 
 
 The Bill must bear the Statutory Stamp Duty detailed subse- 
 quently. Mr. William Smith, in this case, would accept the Bill, 
 by writing upon it his name, which is generally written across 
 the face of the Bill, but not necessarily, as a Bill can be accepted 
 on the back or at the foot. He probably makes it payable at his 
 Bankers, by writing over or under his name “ Payable at the 
 [Anglo-Hibernian Bank],” and such an acceptance amounts to 
 a direction to these Bankers to pay it when it matures or 
 becomes due, which in the above case would be on the 4th of 
 February, 1881, being three months — calendar months — 
 after the date, the 1st November, 1880, together with three days 
 of grace added. A Bill can be drawn “ after demand ” or 
 “ after notice.” 
 
 Acceptance.— There are three forms of acceptance — (1) 
 general acceptance, which is an undertaking to pay the 
 
 * If such an instrument is drawn “on demand,” or “at sight,” it is 
 known as a cash order, and is payable without acceptance on presenta* 
 tion. 
 
Banking in Ireland . 
 
 1 6 1 
 
 amount, not at any Bank, or elsewhere than at the Acceptor’s 
 address as named on the Bill and when presented to himself or 
 his representative there; (2) a special acceptance, which is 
 where the Acceptor makes it payable at a Banker’s or some 
 specified place, in which case it is incumbent on the Holder 
 — in order to maintain his recourse against previous Endorsers, 
 but not absolutely incumbent, in order to maintain recourse 
 against the Acceptor — to present it at the Banker’s, or the place 
 specified, and not to the Acceptor, or at his address ; and (3) 
 a particular acceptance, which is in this form,— e.g., 
 “ accepted payable at the Anglo-Hibernian Bank only,” or — 
 “ and not elsewhere at otherwise,” in which case the Holder is 
 limited in his powers of presentation and is bound to present 
 it at the Bank named, and that within Banking hours on the 
 day the Bill matures. In suing an Acceptor who has accepted 
 in the first or second forms, it is not necessary to prove presen- 
 tation either to the Acceptor or at the Bank named, for an 
 Acceptor is bound to discover where his acceptance is, and to 
 pay it. But in suing the Drawer or an Endorser , presentation 
 at the place specified must be proved. But in the case of 
 a particular acceptance (3), in order to sue the Acceptor for 
 non-payment, it is necessary to prove that the Bill of Exchange 
 was presented where only payable, that is, in this case, at the 
 Anglo-Hibernian Bank. 
 
 If an Acceptor make a Bill payable at his Bankers, 
 
 and they have sufficient fun'ds of his in their hands to pay it 
 when it is presented at its maturity, such acceptance is 
 sufficient authority to them to charge it to his account, and no 
 direction or authorization beyond the terms of the acceptance 
 is necessary ; and if the Banker having funds neglect to pay 
 it, he is liable to an action by the Acceptor for dishonour. 
 
162 
 
 The Law and Practice of 
 
 But if the Banker pay on a forged endorsement,* he cannot 
 charge the Acceptor’s account, and, obviously, if he pay 
 an acceptance which is a forgery, he cannot debit the party 
 whose acceptance it purports to be. Should he pay a Bill 
 bearing a forged endorsement, or a forged acceptance, his 
 remedy is against the party to whom he has made the payment. 
 
 If an Acceptor make a Bill payable at a Bank where 
 he has no account he cannot compel the Banker to receive 
 money to pay the acceptance ; nor, if at the maturity of the 
 Bill he remit the amount to the Banker, in the absence of 
 assent by the Banker to receive and hold the money and to 
 pay the Bill, the Acceptor cannot make the Banker liable in 
 case of dishonour. Assent, however, may be constructive as 
 well as express. For instance, if the Banker has been in the 
 habit of receiving money from the Acceptor for such a 
 purpose and applying it as directed, that will be deemed 
 a constructive assent on his part, in the absence of notice 
 to the contrary, to do so again. 
 
 A differing acceptance is where the Acceptor accepts 
 for an amount, or for a term, differing from the amount or 
 term as directed by the Drawer, and the holder can only 
 charge the Acceptor with the amount he has accepted for, 
 and the maturity to bind the Acceptor is the maturity named in 
 the acceptance. However, in a case where a Bill was dated 
 September the 8th, and drawn at four months, and the 
 Acceptors wrote over the acceptance, “due nth Dec.,” it was 
 held that these words did not qualify the acceptance, but were 
 
 * When there are several Endorsers on a Bill payable to beater , a bona 
 fide Holder is not affected by an intermediate fraud of which he has no 
 cognisance ; nor is he bound to make enquiry as to the validity or bona 
 fides of any preceding endorsements. 
 
Banking in Ireland . 
 
 163 
 
 at most an inaccurate description of the date of the Bill ; but 
 if the Acceptors had written, “ due nth Feb.,” and thereby 
 extended the time, it is probable that such date would be a 
 material part of the Bill. An acceptance must be by the 
 Drawee, and the Drawer himself may be the Drawee. 
 
 If there are several Drawees, the Bill must be accepted 
 by all \ but the fact of its not being accepted by all, does not 
 relieve those who do accept. If a person write his name by 
 way of acceptance upon a blank or unfilled Stamp, and 
 deliver it , he is bound by such acceptance ; but if a blank 
 stamp so accepted be stolen or obtained fraudulently, he 
 would not be bound, for liability attaches only on delivery. 
 The Statute Law before the 41 Viet., c. 75(1878), declared 
 that an acceptance should be “ in writing and signed by the 
 Acceptor,” which necessitated some words of acceptance 
 in writing. But by that Statute the signature alone of the 
 Drawee was declared to be sufficient. If an unaccepted Bill 
 be left with the Drawee for acceptance and that he consent to 
 accept it, and that subsequently he destroy the Bill or lose it 
 of malice, it is probable he could be made liable to a Holder 
 for value. But if he had, ab initio, refused to accept, then 
 in the event of the loss or destruction of the instrument he 
 could not be liable. 
 
 Qualified or Conditional Acceptance.— If a Drawee 
 accept a Bill qualifiedly and that the Holder agree to such 
 acceptance, he can only charge the Acceptor upon non- 
 payment after the fulfilment of those qualifying conditions ; 
 but to charge the Drawer and previous Endorsers, he is bound 
 to notice them of the nature of the acceptance, and if they 
 object to the qualified terms of it they can refuse to be charged 
 in the event of dishonour. An acceptance is said to be 
 conditional when it is an engagement to pay upon the 
 
164 
 
 The Law and Practice of 
 
 fulfilment of conditions named therein. For example : — 
 “ accepted payable on surrender of Bill of Lading ” — 
 “ accepted payable when goods now consigned to me are 
 sold ” — and such like, are conditional accceptances, and if 
 the Drawer or Holder consent to such an acceptance, he can 
 only institute an action for the amount when the conditions of 
 the acceptances are exhausted. Though an acceptance can 
 be conditional, an endorsement cannot, or rather, a con- 
 ditional endorsement is not usual in practice, as it tends to 
 restrict the negotiability of the Bill, and an endorsement 
 cannot be restrictive. As a Bill drawn after sight begins to 
 run from the time it is sighted or confirmed by the Acceptor, 
 it is therefore necessary that the date of the acceptance should 
 be set forth on the Bill. A Bill “at sight” is payable on 
 demand, whether accepted or not, but the Drawee is bound 
 only in case of acceptance. 
 
 What Acceptance Admits. — The Acceptor is the 
 primary Debtor to the Holder ; but the other parties to 
 it are regarded as securities, — to one or any of whom the 
 Holder has recourse. By his act of acceptance the Drawee 
 admits that he is indebted to the Drawer, and he cannot 
 subsequently plead that the Drawer or Payee was a person 
 incapacitated, or that the Drawer’s signature is a forgery. 
 But acceptance is no admission in respect to the endorsers, 
 and if an endorsement is known to him to be a forgery he 
 can refuse payment. Where the Drawer’s name is signed 
 “ per-procuration,” acceptance is an admission of debt to 
 the principal, and consequently the principal’s endorsement is 
 necessary, and the Acceptor can refuse to pay on the agent’s 
 endorsement “ per-procuration,” even though it be so endorsed 
 at the time of acceptance. Therefore, in a Bill drawn payable 
 to the Drawer’s order, where his signature, as Drawer, is “ per- 
 
Banking in Ireland ’ 
 
 165 
 
 procuration,” Bankers should see that it is endorsed by the 
 Drawer himself and not by the agent who signed as Drawer. 
 
 Bills of Exchange or Promissory Notes need not 
 be on paper ; they are valid on any substitutionary 
 substance except metal. Nor need they be written in 
 ink, as a bill drawn and signed in pencil is legal and 
 valid. Nor need they be in any precise form of words 
 as long as the intention to promise or to accept is apparent on 
 the face of the instrument. The constituent features 
 of a Bill of Exchange are — (1) the Date, (2) the Amount, (3) 
 the Time when Payable, (4) the Payee, (5) the Drawer’s 
 Signature, (6) the Drawee, (7) the Place where Payable. 
 
 The Date. — Though the place where drawn and the date 
 when drawn, are usual and proper in a Bill of Exchange, they 
 are not necessary or essential to its validity. Evidence as 
 to the time of making will fix the date. A Bill, like a Cheque, 
 may be post dated, but if a Banker issue a Bill under the 
 provisions of p Geo . 4 , c . and post-date it, he is liable to 
 
 a penalty of 
 
 The Amount.— It is necessary that the amount should 
 be specifically stated. The remarks as to the amount as in 
 Cheques apply equally to Bills. 
 
 The Time when Payable. — If no time is stated, the 
 Bill is payable on demand. “ At sight ” and cognate 
 expressions are equivalent to “ on demand .” # After sight on 
 a Bill of Exchange means after acceptance by the Drawee, and 
 not merely after he has seen it ; but the same expression on 
 a Promissory Note necessitates no more than exhibition or 
 presentation to the maker. A Bill or Note may be payable 
 
 * Formerly, “at sight” was considered a term entitled to three days’ 
 grace after acceptance. 
 
1 66 The Law and Practice of 
 
 at any time, no matter how distant, provided that it is a 
 definite and inevitable time ; but it must be payable at some 
 time or other, and that time must be specified. 
 
 The Payee. — A Payee must be particularised. It may 
 be the bearer or some person specially ; or a person or his 
 order ; or persons jointly; or a Company or a Corporation. 
 The Payee can be the Drawer himself. But there must be 
 
 a Payee. A Bill payable to “ or order,” and so 
 
 negotiated, was held not to be a Bill of Exchange, as there 
 was no Payee. But if a space is left for the Payee’s name, 
 it can be filled in by a lawful Holder with his own name, but 
 he must prove authority from the Drawer so to do. If a 
 Bill is payable specially , that is, to a Payee without the 
 alternative words “ or order ” or “ or bearer,” it is not 
 negotiable to other parties, but, like a Cheque, must be paid 
 by the Drawee to the Payee alone. A Bill, like a Cheque, 
 is transferable. If payable to order it passes by endorsement 
 and delivery ; if to bearer, by delivery. 
 
 The Drawer’s Signature.— The signature of the Drawer 
 of a Bill or maker of a Note is usually at the foot, but not 
 necessarily, for a note drawn : “ I, William Jones, promise to 
 pay, &c.,” is a good note. A marksman can be a Drawer. 
 
 The Drawee. —The Drawee must be particularized. His 
 surname must be spelt correctly, for if there is a divergence 
 between the spelling of the names of the Drawee and Acceptor, 
 it may be pleaded that they are not the same person, and 
 therefore that the Bill is invalid. 
 
 The Place where Payable. — The Acceptor has the 
 power of locating or domiciling a Bill, but if the place is 
 stated in the body of the instrument, and it be accepted 
 generally, it is a part of the contract. It has been the opinion 
 of some Judges, that if a Drawer make a Bill payable at his 
 
Banking in Ireland ’ 
 
 167 
 
 own place, such an act is evidence that the Bill was an 
 accommodation Bill. 
 
 “ Value Received.”— These words are not necessary in a 
 Bill. They are either superfluous as between Drawer and 
 Drawee, or ambiguous where the Payee is a third party. 
 
1 68 
 
 The Law and Practice of 
 
 VIII. 
 
 PERSONS INCAPACITATED TO BE PARTIES TO A BILL 
 OF EXCHANGE. 
 
 AN AGENT cannot endorse or accept Bills so as to bind his 
 principal unless with the special authority of the principal. 
 Ratification by the principal of the agent’s acts, or of similar 
 acts in the past, will bind the principal. The words “ per 
 procuration,” are an express declaration of a specialty authority, 
 and a person who takes a Bill so accepted, drawn, or endorsed, 
 is bound to inform himself of the truth and extent of the 
 declared authority. An agent so appointed incurs no personal 
 responsibility in connection with the instruments he so signs 
 under his authority. But if an agent implies an authority which 
 does not exist, he is personally liable. 
 
 Partners. — “ Partners not in trade cannot bind each other 
 by Bills. Therefore, an attorney who is partner with another, 
 has not from that relation alone , power to bind his co-partner, 
 by a Bill or Note. No more have partners carrying on business 
 as brokers by getting orders on commission and dividing the 
 expenses.” # If a partner act outside his partnership powers, to 
 the knowledge of the other contracting parties, they cannot hold 
 his co-partners liable for the deeds of the one who exceeded 
 his authority. Or where a party takes a Bill with notice that it 
 was accepted in a firm’s name, by one partner, but without the 
 sanction or knowledge or authority of the other partners, he 
 
 Byles 
 
Banking in Ireland. 
 
 169 
 
 cannot charge the other partners, although it be for value 
 received. But the other partners would be liable to an 
 innocent bona fide holder for value. If a person be a sleeping 
 or secret partner and unknown to a creditor, he is yet liable 
 to that creditor on the partnership transactions ; and on the 
 other hand, if a person be an ostensible partner, i.e., that his 
 name appears publicly as a partner, though he derive no 
 benefit from the partnership, he is also liable to a creditor who 
 believed him to be, and treated him as, an active partner, even 
 although a deed of dissolution which had not been pub- 
 lished or notified, may have been executed. If dissolution is 
 effected by the death of one of the partners no notification 
 is necessary. 
 
 Infants. — By the Infants’ Relief Act (37 38 Viet ., c . 62 ) 
 
 all contracts by Infants (i.e., persons under the age of twenty- 
 one), to repay money lent, or to be lent, or for goods supplied, 
 or to be supplied, other than contracts for necessaries , are made 
 absolutely void, and, being absolutely void, no action can be 
 brought upon a ratification made after full age of any promise 
 or contract made during infancy ; a contract that is void 
 cannot be ratified, though a voidable one may. An Infant’s 
 promise by way of note of hand, or otherwise, to pay for 
 necessaries can be enforced, the jury answering whether the 
 articles were necessaries or not ; but such a note of hand, to be 
 recoverable upon, must be for the exact sum due for the neces- 
 saries, and not a note bearing interest or a penalty. Though 
 he should represent himself as of full age, an Infant is not liable 
 on a Bill of Exchange ; still he can endorse a Bill, and give a 
 good title to the Transferee, but the Transferee or Endorser 
 has no right of action against the Infant. An Infant may sue 
 and recover payment through his guardian. The following 
 case, though not strictly dealing with Infants’ Contracts, may yet 
 
i 70 The Law and Practice of 
 
 well be included under this head. It was one where a 
 Banker discounted a Promissory Note to the Bank, signed by A., 
 who had just ceased to be an Infant, and gave the proceeds 
 unreservedly to B., who represented that it was given in pay- 
 ment of necessaries supplied to A., and though the Bank had 
 such knowledge of the relative position of the parties that it 
 warranted their belief in these representations, yet — B., having 
 misappropriated the money — the Bank was restrained from suing 
 on the note, and the note was declared to be invalid.* It is, 
 however, to be remembered that Infants, though incapable to 
 contract on their own account, may be agents of others who 
 are capable, and as such can bind those others. 
 
 Lunatics, Idiots, and a Person non compos mentis. 
 — Contracts by a Lunatic, an Idiot, or a person non compos 
 through infirmity or age, are absolutely void. But if the 
 contract be a fair contract, whereby the Lunatic or infirm 
 person has derived benefit, and one where the other contracting 
 party had no notice or knowledge of the incapacity, the contract 
 could not be voided by the Lunatic on the ground of his 
 lunacy. 
 
 Married Women. — The contracts of a married woman 
 are void, unless she contracts under the Married Women’s 
 Property Act (33 34 Vict, y c. 93). Without her husband’s 
 
 authority (express or implied) she cannot render either him or 
 herself liable, not even though she represent herself as un- 
 married. In the latter case an action would lie, not on the 
 contract, but for obtaining under a false pretence. She is liable 
 if she have a separate estate ; or if her husband be transported ; 
 or unheard of for seven years ; or if he be an alien who never 
 resided in the Kingdom. A Bill drawn payable to a single 
 
 Dettmar v . Metropolitan and Provincial Bank. 
 
Banking in Ireland . 
 
 171 
 
 woman vests in her husband on her marriage, and his endorse- 
 ment alone is a discharge. But since the passing of the 
 Married Women’s Property Act, the husband is not liable on a 
 Bill or Note given by the wife during her spinsterhood. 
 
 Undue Influence. — If a person give a Bill or Note under 
 the exercise of undue influence, he cannot repudiate the 
 liability to an innocent bona fide holder. His remedy is in a 
 Court of Equity. 
 
 Drunkenness. — Total Drunkenness , amounting to a perver- 
 sion or deprivation of mental power, incapacitates a man from 
 contracting, and it is a good defence to an action on a Bill of 
 Exchange, or Promissory Note. “It is just the same,” said 
 Baron Alderson, “ as if the defendant had written his name on 
 the Bill in his sleep in a state of somnambulism.” But if an act 
 done during total drunkenness is ratified at a subsequent sober 
 and lucid period, the ratification makes the contract valid. 
 
 Partial Drunkenness. — It may also be a defence on an 
 action that the defendant signed the Bill or Note while partially 
 drunk. But a defence of this nature differs from the preceding 
 case, inasmuch as it should be proved that the drunken- 
 ness was the result of an intentional act or contrivance on the 
 part of him who obtained the signature to the Bill ; or else that 
 the defendant was induced to sign by a person who had 
 knowledge, and took advantage of, his drunken condition. 
 
 Convicted Felons. — A convicted Felon during the period 
 of his sentence cannot be a contracting party to, or bring an 
 action on, a Bill of Exchange. But he can, through an interim 
 administrator, receive as Endorser the benefit of a Bill maturing 
 during his term of sentence, or take action on one dishonoured. 
 A contract also in favour of an alien enemy, and against a 
 British subject in the British Isles, is void as against the subject. 
 Corporations and Companies. — “ Without a special 
 
172 The Law and Practice of 
 
 authority, express or implied, a Corporation has no power to 
 make, endorse, or accept Bills or Notes;”* and it was decided 
 in a case of Overend, Gurney and Co., against the Mid Wales 
 Railway Company, that a Railway Company can neither 
 accept, draw, or endorse a Bill of Exchange. A Joint Stock 
 Company, however, can accept by the hands of the Directors, 
 or a quorum of them, and each individual member of the 
 Company will be bound by their act. But if they accept 
 personally in their own names, and not as Directors of the Joint 
 Stock Company, the liability will not extend beyond them 
 personally. Directors of a Joint Stock Company cannot bind 
 the Company as Drawers , unless there is a special authority to 
 that effect. A joint and several Note signed by Directors will 
 bind only the Directors signing. By the 23 6 ° 26 Viet., c. <?, 
 s. 47, and the 30 31 Viet., c. 131 , if any person on behalf of 
 
 a Limited Company registered under these (“ the Companies ”) 
 Acts, signs or endorses a Bill, Cheque, or Note on which the 
 name of the Company is not duly mentioned, he is not only 
 made personally responsible to the holder, but liable to a 
 penalty of £$o. 
 
 Societies. — The contracting powers of Societies, such as 
 Loan and Building and Co-operative Societies and the like, 
 are generally defined in the deeds incorporating them. 
 
 Byles. 
 
i73 
 
 Banking in Ireland. 
 
 IX. 
 
 THE STAMP DUTIES. 
 
 THE STAMP ACT of 1870 now regulates the mode of 
 writing and stamping, and the duties on, Bills of Exchange. 
 
 The following are the provisions contained in the Act and 
 Schedule thereto, which relate to Bills of Exchange and 
 Promissory Notes : — 
 
 By sect. 7(1), Every instrument written upon stamped material is to 
 be written in such manner, and every instrument partly or wholly written 
 before being stamped is to be so stamped, that the stamp must 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. 
 
 By sect. 8, Except where express opinion to the contrary is made by 
 this or any other act — 
 
 (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 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-named consideration or considerations 
 as if it were a separate instrument made for consideration or considerations 
 only. 
 
 By sect. 9 (1), A stamp which by any word or words on the face of 
 it is appropriated to any particular description of 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 description 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. 
 
 By sect. 11, Where an instrument is chargeable with ad valorem duty 
 in respect of any money in any foreign or colonial currency, such duty 
 
174 
 
 The Law and Practice of 
 
 shall be calculated on the value of such money in British currency ac- 
 cording to the current rate of exchange on the day of the date of the 
 instrument. 
 
 By sect. 12, Where an instrument is chargeable with ad valorem duty 
 in respect of any stock or of any marketable security, such duty shall be 
 calculated on the value of such stock or security according to the average 
 price thereof on the day of the date of the instrument. 
 
 By sect. 13, Where an instrument contains a statement of current rate 
 of exchange, or average price, as the case may require, and it is stamped 
 in accordance with such statement, so far as regards the subject-matter 
 of such statement, to be deemed duly stamped, unless or until it is shown 
 that such statement is untrue, and that the instrument is in fact insuf- 
 ficiently stamped. 
 
 By sect. 15 (1), Except where express provision to the contrary is made 
 by this or any other act, any unstamped or insufficiently-stamped instrument 
 may be stamped after the execution thereof, on payment of the unpaid 
 duty and a penalty of ten pounds, and also, by way of further penalty 
 when 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 : 
 
 (a) Any unstamped or insufficiently-stamped instrument, 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 time within 
 twelve months after the first execution of any instrument, remit 
 the penalty or penalties, or any part thereof. 
 
 By sect. 17, Save and except as aforesaid, no instrument executed in 
 any part of the United Kingdom or relating, wheresoever executed, to 
 any property situate, or to any matter or thing done or to be ‘done, in 
 any part of the United Kingdom, shall, except in criminal proceedings , 
 be pleaded or given in evidence, or admitted to be good, useful or available 
 in law or equity, unless it is duly stamped in accordance with the law 
 in force at the time when it was first executed. 
 
 By sect. 23, Except where express provision is made to the contrary, 
 all duties are to be denoted by impressed stamps only. 
 
 By sect. 24 (1), An instrument, the duty upon which is required, or 
 
Banking in Ireland. 
 
 175 
 
 permitted by law, to be denoted by an adhesive stamp is not to be 
 deemed duly stamped with an adhesive stamp unless the person re- 
 quired by law to cancel such adhesive stamp cancels the same by writing 
 on or across the stamp his name or initials, or the name or initials of his 
 firm, together with the true date of his so writing, so that the stamp may 
 be effectually cancelled, and rendered incapable of being used for any other 
 instrument, or unless it is otherwise proved that the stamp appearing on the 
 instrument was affixed thereto at the proper time. 
 
 (2) Every person who, being required by law to cancel an adhesive stamp, 
 wilfully neglects or refuses duly and effectually to do so in the manner 
 aforesaid, shall forfeit the sum of ten pounds. 
 
 By sect. 36, The duty of sixpence upon an agreement may be denoted 
 by an adhesive stamp, which is to be cancelled by the person by whom 
 the agreement is first executed. 
 
 By sect. 45, The term “banker” means and includes any corporation, 
 society, partnership, and persons, and every individual person carrying on 
 the business of banking in the United Kingdom. 
 
 The term “ bank note” means and includes — 
 
 (1) Any bill of exchange or promissory note issued by any banker, 
 other than the Governor and Company of the Bank of England, 
 for the payment of money not exceeding one hundred pounds to 
 the bearer on demand : 
 
 (2) Any bill of exchange or promissory note so issued which entitles 
 
 or is intended to entitle the bearer or holder thereof, without 
 indorsement, or without any further or other indorsement than 
 may be thereon at the time of the issuing thereof, to the payment 
 of money not exceeding one hundred pounds on demand, whether 
 the same be so expressed or not, and in whatever form, and by 
 whomsoever such bill or note is drawn or made. 
 
 By sect. 46, A bank note issued duly stamped, or issued unstamped by 
 a banker duly licensed or otherwise authorized to issue unstamped bank 
 notes, may be from time to time re-issued without being liable to any 
 stamp duty by reason of such re-issuing. 
 
 By sect. 47 (1), If any banker, not being duly licensed or otherwise 
 authorized to issue unstamped bank notes, issues, or causes or permits to 
 be issued, any bank note not being duly stamped, he shall forfeit the sum 
 of fifty pounds. 
 
 (2) 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 twenty pounds. 
 
 By sect. 48 (1), The term “ bill of exchange” for the purpose of this 
 
176 
 
 The Law and Practice of 
 
 act indicates also draft, order, cheque, and letter of credit, and any docu- 
 ment or writing (except a bank note) entitling or purporting to entitle any 
 person, whether named therein or not, to payment by any other person of, 
 or to draw upon any other person for, any sum of money therein mentioned. 
 
 (2) An order for the payment of any sum of money by a bill of exchange 
 or promissory note, or for the delivery of any bill of exchange or promissory 
 note in satisfaction of any sum of money, or for the payment of any sum of 
 money out of any particular fund which may or may not be available, 
 or upon any condition or contingency which may or may not be performed 
 or happen, is to be deemed for the purposes of this act a bill of exchange 
 for the payment of money on demand. 
 
 (3) An order for the payment of any sum of money weekly, monthly, or 
 at any other stated periods, and also any order for the payment by any 
 person at the time after the date thereof of any sum of money, and sent 
 or delivered by the person making the same to the person by whom the 
 payment is to be made, and not to the person to whom the payment is to 
 be made, or to any person on his behalf, is to be deemed for the purposes 
 of this act a bill of exchange for the payment of money on demand. 
 
 By sect. 49 (1), The term “promissory note ” means and includes any 
 document or writing (except a bank note) containing a promise to pay any 
 sum of money. 
 
 (2) A note promising the payment of any sum of money out of any 
 particular fund which may or may not be available, or upon any condition 
 or contingency which may or may not be performed or happen, is to be 
 deemed for the purposes of this act a promissory note for the said sum 
 of money. 
 
 By sect. 50, The fixed duty of one penny on a bill of exchange for the 
 payment of money on demand may be denoted by an adhesive stamp, 
 which is to be cancelled by the person by whom the bill is signed before he 
 delivers it out of his hands, custody, or power. 
 
 By sect. 51 (1), The ad valorem duties upon bills of exchange and 
 promissory notes drawn or made out of the United Kingdom are to be 
 denoted by adhesive stamps. 
 
 (2) Every person into whose hands any such bill or note comes in the 
 United Kingdom before it is stamped shall, before he presents for payment, 
 or indorses, transfers, or in any manner negotiates, or pays such bill or 
 note, affix thereto a proper adhesive stamp or proper adhesive stamps of 
 sufficient amount, and cancel every stamp so affixed thereto. 
 
 (3) Provided as follows : 
 
 (a) If at the time when any such bill or note comes into the hands of 
 any bona fide holder thereof there is affixed thereto an adhesive 
 
Banking in Ireland. 
 
 177 
 
 stamp effectually obliterated, and purporting and appearing to be 
 duly cancelled, such stamp shall, so far as relates to such holder, 
 be deemed to be duly cancelled, although it may not appear to 
 have been so affixed or cancelled by the proper person. 
 
 (b) If at the time when any such bill or note comes into the hands of 
 any bona fide holder thereof there is affixed thereto an adhesive 
 stamp not duly cancelled, it shall be competent for such holder 
 to cancel such stamp, as if he were the person by whom it was 
 affixed, and upon his so doing such bill or note shall be deemed 
 duly stamped, and as valid and available as if the stamp had been 
 duly cancelled by the person by whom it was affixed. 
 
 (4) But neither of the foregoing provisoes is to relieve any person from 
 any penalty incurred by him for not cancelling any adhesive stamp. 
 
 By sect. 52, A bill of exchange or promissory note purporting to be 
 drawn or made out of the United Kingdom is, for the purpose of this act 
 to be deemed to have been so drawn or made, although it may in fact have 
 been drawn or made within the United Kingdom. 
 
 By sect. 53 (1), Where a bill of exchange or promissory note has been 
 written on material bearing an impressed stamp of sufficient amount but of 
 improper denomination, it may be stamped with the proper stamp on pay- 
 ment of the duty, and a penalty of forty shillings if the bill or note be not 
 then payable according to its tenor, and of ten pounds if the same be so 
 payable. 
 
 (2) Except as aforesaid, no bill of exchange or promissory note shall be 
 stamped with an impressed stamp after the execution thereof. 
 
 By sect. 54 (1), Every person who issues, indorses, transfers, negotiates, 
 presents for payment, or pays any bill of exchange or promissory note 
 liable to duty and not being duly stamped shall forfeit the sum of ten 
 pounds, and the person who takes or receives from any other person any 
 such bill or note not being duly stamped, either in payment or as a security, 
 or by purchase or otherwise, shall not be entitled to recover thereon, or to 
 make the same available for any purpose whatever. 
 
 (2) Provided that if any bill of exchange for the payment of money on 
 demand, liable only to the duty of one penny, is presented for payment 
 unstamped, the person to whom it is so presented may affix thereto a 
 proper adhesive stamp, and cancel the same, as if he had been the drawer 
 of the bill, and may, upon so doing, pay the sum in the said bill mentioned, 
 and charge the duty in account against the person by whom the bill was 
 drawn, or deduct such duty from the said sum, and such bill is, so far 
 as respects the duty, to be deemed good and valid. 
 
 (3) But the foregoing proviso is not to relieve any person from any 
 penalty he may have incurred in relation to such bill. 
 
i ;8 
 
 The Law and Practice of 
 
 By sect. 55, When a bill of exchange is drawn in a set according to 
 the custom of merchants, and one of the set is duly stamped, the other or 
 others of the set shall, unless issued or in some manner negotiated apart 
 from such duly stamped bill, be exempt from duty ; and upon proof of the 
 loss or destruction of a duly stamped bill forming one of a set, any other 
 bill of the set which has not been issued or in any manner negotiated apart 
 from such lost or destroyed bill may, although unstamped, be admitted in 
 evidence to prove the contents of such lost or destroyed bill. 
 
 By sect. 69 (1), The duty on a contract note may be denoted by an 
 adhesive stamp, which is to be cancelled by the person by whom the note 
 is first executed. 
 
 (2) Every person who makes or executes any contract note chargeable 
 with duty, and not being duly stamped, shall forfeit the sum of twenty 
 pounds. 
 
 (3) 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 five pounds 
 or upwards mentioned or referred to in any contract note, unless such note 
 is duly stamped. 
 
 By sect. 2 of 34 Viet., c. 4, 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 ; 
 
 (2) Which, the interest thereon being payable in the United Kingdom, 
 
 is assigned, transferred, or in any manner negotiated in the United 
 Kingdom. 
 
 By sect. 3 of the same act, Every person who in the United Kingdom 
 makes, issues, assigns, transfers, or negotiates, or pays any interest upon 
 any foreign security not being duly stamped, shall forfeit the sum of twenty 
 pounds. 
 
 By sect. 115, The commissioners may at any time, without reference to 
 the date thereof, allow any foreign security to be stamped without the pay- 
 ment 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 negotiated within the United Kingdom, and that no interest has 
 been paid thereon within the United Kingdom. 
 
 By sect. 116, The duty upon a notarial act, and upon the protest by a 
 notary public of a bill of exchange or promissory note, may be denoted by 
 an adhesive stamp, which is to be cancelled by the notary. 
 
179 
 
 Banking in Ireland. 
 
 By sect. 120, The term “ receipt ” means and includes any note, memo- 
 randum, 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. 
 
 By sect. 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. 
 
 By sect. 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. 
 
 By sect. 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 a 
 
 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. 
 
 Schedule to the above Act. 
 
 £ s - d- 
 
 Agreement, or any Memorandum of an Agreement, made in 
 England or Ireland under hand only, or made in Scotland 
 without any clause of registration, and not otherwise specifically 
 charged with any duty, whether the same be only evidence 
 of a contract, or obligatory upon the parties from its being 
 a written instrument ... ... ... ... ... ...006 
 
 Exemptions. 
 
 (1.) Agreement or memorandum the matter whereof is not 
 of the value of 5/. 
 
 (2.) Agreement or memorandum for the hire of any labourer, 
 artificer, manufacturer, or menial servant. 
 
 ( 3 *) Agreement, letter, or memorandum made for or re- 
 lating to the sale of any goods, wares, or mer- 
 chandise, 
 
i 8 o 
 
 The Law and Practice of 
 
 (4.) Agreement or memorandum made between the master 
 and mariners of any ship or vessel for wages on 
 any voyage coastwise from port to port in the United 
 Kingdom. 
 
 Banknote — 
 
 For money not exceeding 1 /. 
 
 Exceeding 1/. and not exceeding 2/. 
 
 , 2/. „ 5/. 
 
 » 5 ?- > 10/. 
 
 ,10/. , 20/. 
 
 , 20/. ,, 30/. 
 
 , 30^ > ) 50^ 
 
 , 50/. ,, 100/. 
 
 Bill of Exchange — 
 
 Payable on demand 
 
 Bill of Exchange of any other kind whatsoever (except a 
 bank note) and Promissory Note of any kind whatsoever 
 (except a bank note) — drawn, or expressed to be payable, 
 or actually paid, or endorsed or in any manner negotiated in 
 the United Kingdom : 
 
 Where the amount or value of the money for which the bill 
 or note is drawn or made does not exceed 5/. 
 
 Exceeds 5/. and does not exceed 10/. 
 
 „ 10/. ,, 25/. 
 
 ,,25/. ,, 50/. 
 
 „ 50/. „ 75 ^- 
 
 9 1 75 t- 99 100/. 
 
 ,, 100/. — 
 
 for every 100/. and also for any fractional part of 100 L 
 of such amount or value 
 
 £ s. d. 
 0 0 5 
 o o 10 
 o i 3 
 o i 9 
 020 
 030 
 050 
 086 
 
 O O I 
 
 OOI 
 0 0 2 
 0 0 3 
 0 0 6 
 0 0 9 
 O I o 
 
 010 
 
 Exemptions . 
 
 (1.) Bill or note issued by the Governor and Company of 
 the Bank of England or Bank of Ireland. 
 
 (2.) Draft or order drawn by any banker in the United 
 Kingdom, upon any other banker in the United 
 Kingdom, not payable to bearer or to order, and 
 used solely for the purpose of settling or clearing 
 any account between such bankers. 
 
 (3.) Letter written by a banker in the United Kingdom to 
 any other banker in the United Kingdom directing 
 the payment of any sum of money, the same not 
 being payable to bearer or to order, and such letter 
 not being sent or delivered to the person to whom 
 payment is to be made, or to any person on his 
 behalf. 
 
 (4.) Letter of credit granted in the United Kingdom 
 authorizing drafts to be drawn out of the United 
 Kingdom payable in the United Kingdom. 
 
 (5.) Draft or order drawn by the Accountant General of 
 the Court of Chancery in England or Ireland. 
 
 (6.) Warrant or order for the payment of any annuity 
 
Banking in Ireland. 
 
 181 
 
 granted by the Commissioners for the Reduction of 
 the National Debt, or for the payment of any divi- 
 dend or interest on any share in the Government or 
 Parliamentary stock or funds. 
 
 (7.) Bill drawn by the Lords Commissioners of the Ad- 
 miralty, or by any person under their authority, 
 under the authority of any act of parliament upon 
 and payable by the Accountant General of the 
 Navy. 
 
 (8.) Bill drawn (according to a form prescribed by her 
 Majesty’s orders by any person duly authorized to 
 draw the same) upon and payable out of any public 
 account for any pay or allowance of the army or 
 other expenditure connected therewith. 
 
 (9.) Coupon or warrant for interest attached to and issued 
 with any security. 
 
 Protest of any bill of exchange or promissory note : — £ s. d . 
 
 Where the duty on the bill or note does not exceed is, the 
 same duty as the Bill or Note ... 
 
 In any other case ... ... .. 010 
 
 Receipt given for, or upon the payment of, money amounting 
 
 to 2/. or upwards ... ... ... ... ... o o 1 
 
 Exemptions . 
 
 (1.) Receipt given for money deposited in any bank, or 
 with any banker, to be accounted for or 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 parlia- 
 mentary 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 representatives, for or on account of any wages, 
 pay or pension, due from the Admiralty or Army Pay 
 Office. 
 
 (7.) Receipts given for the consideration money for the 
 purchase of any share in any of the Government or 
 Parliamentary stocks or funds, or in the stock of the 
 East Indian Company, or in the stocks or 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. 
 
1 82 The Law and Practice of 
 
 (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 endorsed or otherwise written upon or contained 
 in any instrument liable to stamp duty, and duly 
 stamped, acknowledging the receipt of the consider- 
 ation 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 ex- 
 portation 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 endorsed upon any bill drawn by the Lords Com- 
 missioners 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. 
 
 “ It appears,” says Byles, “ that the following instruments 
 are free from duty tinder this and previous Statutes : — 
 
 (a) Bills and Notes of the Bank of England and Bank of 
 Ireland. 
 
 (< b ) Notes for one pound, one guinea, two pounds or two 
 guineas, payable to bearer on demand issued by 
 the Bank of Scotland, Royal Bank of Scotland, and 
 British Linen Company. 
 
 (<:) Bills or Notes issued by Bankers paying a composition 
 in lieu of stamps. 
 
 (d) Bills drawn for the expenses of the Navy and Army. 
 
 (e) Notes of Loan, Friendly and Building Societies. 
 
 A Bill or Note which is unstamped or stamped im- 
 perfectly or improperly cannot be recovered upon; nor 
 can it be admitted in evidence, except in criminal cases. A 
 Bill “ drawn or made” out of the United Kingdom, requires 
 an ad valorem Foreign Bill Stamp ; but an Inland Bill which has 
 been negotiated abroad does not require a Foreign Bill Stamp. 
 
Banking in Ireland . 
 
 183 
 
 Thus, a Bill drawn in Manchester on a London Bank or Firm 
 is an Inland Bill, and if it be sent to New York, for instance, 
 and bears evidence of having been negotiated abroad, it does 
 not require a Foreign Bill Stamp in addition to the impressed 
 stamp duty it of necessity bears. A Bill Stamp cannot be 
 used except for the one transaction ; therefore, having been 
 filled on one side and negotiated as a Bill or Note, it cannot 
 be filled for the same purpose on the reverse side, as the 
 stamp duty is exhausted by the one transaction. Nor can a 
 Bill be re-issued and circulated after it has been paid at 
 maturity. 
 
184 
 
 The Law and Practice of 
 
 X. 
 
 THE TRANSFER OF BILLS . 
 
 BILLS OF EXCHANGE are transferable and assignable as 
 Cheques are. One payable to “ order ” passes by endorse- 
 ment and delivery ; one payable to “ bearer ” by delivery 
 alone ; mere endorsement without delivery does not pass a 
 Bill drawn to “ order.” But one drawn payable specially , i.e., 
 “ to A. B.” and not to “ A, B. or order,” or “ A. B. or bearer ” is 
 not assignable as against the Drawee, that is to say, that the 
 Drawee is not bound to pay the amount to a Transferee. If a 
 Bill, thus specially payable, be transferred by the Payee, he 
 (the Payee), is liable to all subsequent Endorsers, even 
 though they took it with notice of its un-assignable nature. 
 But in the case of a promissory note thus specially payable 
 the endorsement on it by one to whom it has not been 
 transferred, and who has not transferred it, will not make him 
 liable on the note. There is no limit to the transferability 
 of a Bill of Exchange. Any Holder can transfer it by 
 endorsement, and each Endorser stands in the position of a 
 new maker. But in a promissory note this is not so, as there is 
 no relation between the positions of the Maker and the 
 Endorsers. If there be not space on the Document itself for 
 the endorsements, a slip of paper can be attached to it to 
 bear them. This slip of added paper is then part of the 
 Bill, and it requires no additional Stamp Duty. It is 
 technically called an allonge — (from the French). Every 
 Endorser on a Bill of Exchange is as a new Drawer, and he is 
 
Banking in Ireland. 
 
 185 
 
 liable to the subsequent Endorsers in case of dishonour by the 
 Drawee, but (as will be shown hereafter), due notice of the 
 dishonour is necessary to the Endorsers. 
 
 There are, however, some ways in which an Endorser, 
 without forfeiting his title, can transfer a Bill of Exchange, and 
 yet divest himself of liability to subsequent Holders and 
 Endorsers : — 
 
 ( 1 . ) By writing over his endorsement the words sans recours , 
 or “ without recourse to me.” For in this case, subsequent 
 Transferees take the Bill with notice that that Endorser has 
 declined to guarantee the validity or value of the Bill, and 
 that they must take it at their own risk for what it is worth. 
 
 (2.) By means of a special agreement of immunity entered 
 into with the Transferee. But such a special agreement, while 
 valid as against the party to it, will not avail him or protect 
 him against subsequent Holders who are innocent of the 
 agreement. 
 
 (3.) Where a Transferee B., writes over an endorsement in 
 blank of a former payee A., words transferring it to a subse- 
 quent Holder D. In this case the intermediate Endorser 
 avoids incurring a liability to D., as the endorsement by its 
 nature effaces, as it were, those interposing between A. and his 
 direct Transferee D. 
 
 (4.) Where a Bill is transferred, and re-endorsed to a previous 
 Endorser, the intermediate Endorsers are not liable. 
 
 A Bill of Exchange can also bear a restrictive endorse- 
 ment which will not bind the persons making it. For instance, 
 if a Payee endorse a Bill “ Pay A. B. for my use , C. D.,” or 
 some equivalent expression, the endorsement by A. B. does 
 not bind him in regard to subsequent holders, for by the terms 
 of the writing they have notice that he is but a channel and not 
 
 N 
 
1 86 The Law and Practice of 
 
 a Holder for value. But of course A. B. in case of his default, 
 or fraud, or breach of trust, is liable to the Transferor C. D. 
 
 If a Holder transfer, without his endorsement, a Bill of 
 Exchange he cannot be made a party to an action on the Bill 
 by a Subsequent Holder ; and the un-endorsing Transferor- 
 in the event of the Bill proving worthless — being, for example, a 
 forged or a fraudulent instrument — cannot be held liable, 
 except it be proved that he had knowledge of the worthless 
 nature of the Bill — for the Transferee receives it at his own 
 risk. If such knowledge be proven, he, in suppressing the 
 truth, is guilty of a fraud, and so liable. Non-endorsement 
 amounts to a refusal to guarantee the value of the instrument, 
 that is, to guarantee that the parties to it are solvent. But the 
 mere act of delivery , though without endorsement, amounts to 
 a guarantee that the Bill or note is genuine — that is, that it is 
 what it purports to be. A Bill or note once duly paid is 
 extinguished, and no longer a transferable Document. But 
 if it be paid before its maturity by a Drawer or Endorser, 
 or even by the Acceptor, it is not an illegal act to put it again 
 into circulation, or assign it before it becomes due. A Bill or 
 Note partly paid can be assigned for the residue. A Bill or 
 Note can now be taken in execution, and to steal or embezzle 
 one is a felony. As with Cheques, so with Bills, an endorse- 
 ment in blank by a Payee makes the Bill payable to Bearer. 
 But a bona fide holder can convert a blank endorsement into a 
 special one. by writing words of transfer to himself or to a third 
 party over the endorsement in blank. The omission of the 
 words “ or order” in a transferring endorsement does not restrict 
 the transferability of a Bill of Exchange because negotiability is 
 its essence, and a subsequent holder cannot thus destroy the 
 essence of a Bill. 
 
Banking in Ireland 
 
 187 
 
 XI. 
 
 PRESENTATION OF BILLS . 
 
 For Acceptance. 
 
 AS A RULE it is unusual for a Banker to discount a Bill which 
 is unaccepted, unless it be one which has been drawn on some 
 Bank by a foreign agent which is also a Bank. Bankers’ Bills 
 drawn “ after date ” are usually paid when due without accept- 
 ance, and Bank of England Post Bills drawn u after sight ” are 
 accepted when issued, and thus the term runs from the day of 
 issue. If, however, he do discount an unaccepted business 
 Bill, it is his duty to present it for acceptance without delay, 
 not only for his own security but for his Customer’s protection. 
 If it be drawn payable many days “ after sight ” it is manifest 
 that no matter how undoubted the Bill is, it is his interest to have 
 it accepted as soon as possible, for the term will only run from 
 the date of acceptance. 
 
 A Banker is justified in leaving a Bill for acceptance with the 
 Drawee for a day, to give him time to examine the document 
 and, as has been said, “ to deliberate whether he will accept or 
 not.” If, having been discounted unaccepted, the Drawee refuse 
 to accept, or if he retain it in his possession for a longer period 
 than twenty-four hours, the Banker should notice the parties to 
 the Bill that it is unaccepted. If the Drawee has moved from 
 the address stated on the Bill it is incumbent on the Holder to 
 use “ due diligence ” to ascertain his whereabouts. A Holder’s 
 duty in case of a conditional acceptance has been already 
 stated. It is a usual practice of Banks to send Bills of Lading 
 
1 88 
 
 The Law and Practice of 
 
 accompanying Bills sent for acceptance. The party accepting 
 is entitled to an examination of the documents, and to posses- 
 sion of them unless there are instructions to the contrary given to 
 the presenting Banker. Possession of the Bill of Lading is, of 
 course, a title to possession of the cargo, and if the Drawer of 
 the Bill permits a surrender of it to the Drawee upon ac- 
 ceptance, he is satisfied with the solvency of the Acceptor, and 
 content with the acceptance as payment. Frequently, however, 
 the Bill of Lading is to be surrendered only upon payment of 
 the Draft. The following case quoted by Grant is on the 
 subject of surrender upon acceptance : — “ A Bill of Exchange 
 was sent by a Bank in the United States to a Bank in Toronto 
 for collection and remittance, accompanying which was a Bill of 
 Lading for 10,000 bushels of wheat, which, on the Bill of Ex 
 change being accepted by the Drawees, was delivered over to 
 them, they being the consignees named in the Bill of Lading ; 
 and it was held that it was not the duty of the Bank in Canada, 
 as the agent of the American Bank, in the absence of special in- 
 structions, to retain the Bill of Lading until the Bill of Exchange 
 was paid.” And this was the decision of the highest Court of 
 Appeal in the Dominion and would presumably rule a judgment 
 under similar circumstances in this country. 
 
 For Payment. 
 
 In calculating the maturity of a Bill, “ months ” are counted as 
 calendar months, and in all cases whether drawn “ after date” 
 or “ after sight ” three days of grace are added. Thus a Bill 
 drawn on the 4th January, at one month after date, matures on 
 the 7th February. So, a Bill drawn on the 31st January, at 
 one month after date, becomes due on the 3rd March. 
 The custom of allowing days of grace exists in almost all 
 mercantile countries, but the number of days varies in 
 
Banking in Ireland . 
 
 189 
 
 different States. When a Bill is due, and not specially or 
 particularly domiciled, it must be presented at the Acceptor’s 
 address as on the Bill ; or if he has left that address, at the 
 place which is his address at the time of maturity, and to 
 discover this, “ due diligence ” is expected from the Holder. 
 If the Acceptor be dead it must be presented to his repre- 
 sentatives. It is not necessary to present the Bill to the 
 Acceptor in person . Presentment to any person at the address 
 is deemed sufficient, as it is the Acceptor’s duty to take care 
 of his Bill, and leave provision for it when it shall have 
 been presented where payable. But to charge the Endorsers 
 and Drawer, the Bill must be presented. The Bankruptcy 
 or Insolvency of the Drawee does not absolve the Holder from 
 his duty to present ; neither is an intimation or declaration 
 by the Drawee to the effect that he won’t pay, any excuse for 
 non-presentation. A Bill or Note must generally, but not 
 necessarily, be presented during the Drawee’s or Promissor’s 
 business hours. If it be presented at a reasonable time (and 
 7 or 8 o’clock in the evening has been ruled to be a reasonable 
 time), it is sufficient to bind the parties. 
 
 The Presentor is bound to accept money in payment. If 
 he accept a Cheque and surrender the Bill he does so at his 
 own risk, and his doing so discharges the Endorsers and the 
 Drawer. Money lodged in a Bank by an Acceptor for the ex- 
 pressed object of taking up his acceptance, is money paid to the 
 use of the Holder of the Bill, and cannot be otherwise employed 
 than in payment of that Bill. Even if the person so lodging 
 should be indebted to the Bank where he made such 
 lodgment, the Bank is not empowered to appropriate the 
 money so paid in reduction or payment of the indebtedness 
 of the party lodging it. 
 
 When it is said a Bill must be presented to the Acceptor, it 
 
190 
 
 The Law and Practice of 
 
 is not to be understood that failure to present will discharge 
 the Acceptor. It is an Acceptor’s duty to find out where his 
 acceptance is and to pay it, and non-presentation to him does 
 not discharge his liability — except the Bill be particularly 
 domiciled, that is payable at a certain place “ and there only.” 
 But non-presentation on the Holder’s part will discharge the 
 Endorsers and the Drawer, and in order to charge them in an 
 action on the Bill, presentation at the place where payable 
 must be proved, provided that place is specified in the 
 Acceptance , and not merely in the body of the Bill, or as a 
 memorandum on it. A Promissory Note, however, must be 
 presented at the place mentioned in the body of the Note. 
 The neglect to duly present a Bill of Exchange or Promissory 
 Note operates to discharge all the antecedent parties , but the 
 Acceptor is, and continues, liable notwithstanding non-pre- 
 sentation. 
 
 If a Bill is payable generally in a certain town, presentation 
 at all the Banking houses in the town is sufficient, in order to 
 charge the Endorser and Drawer. A Bill can be paid at any 
 time on the day it is due, and thus a refusal to pay when pre- 
 sented does not disentitle the Acceptor to make payment sub- 
 sequently on the day of maturity ; and a Bill is not therefore 
 strictly a dishonoured Bill until the termination of the day on 
 which it is due. 
 
 Part Payment by Drawer— If a Banker hold a Bill on 
 which a part payment has been made by the Drawer , he can 
 proceed against the Acceptor for the full amount of the Bill, 
 and if he recover the entire amount, he is bound to hold the 
 previous payment in trust for the Drawer who made it. 
 
 The Order of Liability. — As has been said, the Acceptor 
 is the primary, and therefore the principal, Debtor on a Bill 
 of Exchange, and the Drawer and the previous Endorsers 
 
Banking in Ireland. 191 
 
 are, in one sense, sureties for the Acceptor. The effect of 
 this is that they are secondarily liable, that is liable in case 
 of default by the Acceptor. Each Endorser is liable to a 
 subsequent Endorser, and the Drawer is liable to the first 
 Endorser or the Payee.. An Endorser may be a surety 
 merely, and not a Transferor or a Debtor for value, but 
 the extent of his liability to subsequent Endorsers is the 
 same as if he were an Endorser for value. In a Promissory 
 Note the maker or promissor is the Debtor-in-chief, and the 
 position and liabilities of the Endorsers on a Note are the same 
 as those of the Endorsers on a Bill. The Acceptor’s liability 
 does not lapse except by operation of the Statute of Limitations, 
 and therefore the holder can take his own time in suing him 
 on the Bill, but the Drawer and Endorser, in order to maintain 
 a remedy against them, must have been duly noticed of the dis- 
 honour or non-payment by the Acceptor. What constitutes a 
 due notice of a dishonour will be explained subsequently. There 
 are cases where a Bank cannot enforce duly made and executed 
 Promissory Notes. A person gave a Promissory Note to a Bank 
 to satisfy a claim for a liability, for which he had been liable 
 but was discharged at law, but in ignorance of the facts consti- 
 tuting such discharge, and the Bank could not enforce the note 
 although the maker had means of becoming acquainted with 
 the facts.* 
 
 Bell v. Gardiner. 
 
192 
 
 The Law and Practice of 
 
 XII. 
 
 NOTING AND PROTESTING. 
 
 NOTING on an inland Bill of Exchange is a mere 
 memorandum on the Bill by a notary-public, consisting of 
 the date, his initials, and his charges ; and its object seems 
 to be to afford satisfactory evidence to the parties to the 
 Bill, that the Bill is unaccepted, or dishonoured, as the case 
 may be. A protest is superfluous on an Inland Bill and 
 is unknown to the Common Law. A Foreign Bill, how- 
 ever, requires, by the custom of Bankers, to be protested 
 for non-acceptance or non-payment, in order to retain the right 
 to charge the Drawer and Endorsers. The protest is made 
 by a Notary. It is, in form, “ a solemn declaration written by 
 “ the Notary, under a fair copy of the Bill, stating that 
 “ payment (or acceptance) has been demanded and refused, 
 “ and the reason, if any, assigned ; and, that the Bill is, 
 “ therefore, protested.” 
 
 In addition to a protest for non-acceptance or non-payment, 
 there is a further form known as “ protest for better 
 security.” It is not practised in this country, and its advantages 
 are problematical. The words “ sans frais ” (without charges) 
 or “ sans protet ” (without protest), on a Bill of Exchange, are 
 sufficient authority from the Drawer or Endorsers, to the Holder, 
 to dispense with a protest in case of non-payment or non- 
 acceptance. If there be no Notary in the locality where a Bill 
 is payable, a protest can be made by an inhabitant, in the 
 presence of two competent witnesses. 
 
Banking in Ireland . 
 
 193 
 
 There is a species of acceptance which, though known to 
 the Law, is not practised in Ireland, called an acceptance 
 “ supra protest,” or an acceptance by some person not a 
 party to the Bill, who accepts for what is called “ the honour ” 
 of the Drawee, or perhaps of the Drawer. It is an undertaking 
 to pay if the Drawee do not honour the Bill, and consequently 
 at maturity the amount is first demanded from the Drawee 
 Payment “ supra protest ” is a proceeding also known to the 
 Law, though unpractised here. 
 
 Notice of Dishonour. — The duty to give notice of dis- 
 honour of a Bill of Exchange is a most important one, as the 
 neglect to do so operates as a dispensation or discharge of 
 liability as far as those legally entitled to such notice are 
 concerned. Notice of dishonour to the previous Endorser is 
 essential. But it is the usual and more proper course for a 
 Holder for value of a Bill to give notice of dishonour to all the 
 antecedent parties, as the proper sending of such notice will 
 prevent their liability being discharged. There is no par- 
 ticular form of words necessary in such a notice, and Bankers 
 have usually a printed form for the purpose ; but it must 
 be an unequivocal notice of dishonour, and it must contain 
 a demand for payment, and convey that the Holder looks 
 to the party so noticed for payment. It must be explicit 
 and describe the dishonoured Bill in such terms that the 
 person receiving it may not be misinformed or misled. 
 
 The following examples of notices of dishonour — valid and 
 invalid — are quoted from Mr. Justice Byles’ work on “ Bills of 
 Exchange,” and will exemplify the legal requirements of this 
 important department of Banking. 
 
 The following have been held insufficient : — 
 
 (1.) “ The note for 200/., drawn by H. H., dated 1 8th July last, payable 
 three months after date, and endorsed by you, became due yesterday, 
 
194 
 
 The Law and Practice of 
 
 and is returned to me unpaid. I therefore request you will let me have 
 the amount forthwith.” “ These facts,” says Tindall, C. J., “ are com- 
 patible with an entire omission to present the note to the maker. ” Boulton 
 v. Welsh , 3 Bing, N. C. 688 ; 4 Scott, 425, S. C. 
 
 (2.) “ Sir, A bill for 30/., dated the 1 8th August, 1837, at three months, 
 drawn and endorsed by R. Everett upon and accepted by W. Tuck, and 
 indorsed by you, lies at my office due and unpaid. I am, &c., S. J. 
 Sydney.” Phillips v. Gould , 8 C. & P. 355. 
 
 (3.) “Messrs. Strange & Co. inform Mr. James Price that Mr. John 
 Betterton’s acceptance for 87/. 5s. is not paid. As endorser, Mr. Price 
 is called upon to pay the money, which will be expected immediately. 
 Swindon, Dec., 1836.” Strange v. Price, 10 Ad. & El. 125 ; 2 Per. 
 & Dav. 278, S. C. 
 
 (4.) “ Sir, This is to inform you that the bill I took of you, ill. 2s. 6d., 
 is not took up, and 4 s. 6 d. expenses ; and the money I must pay 
 immediately. My son will be in London on Friday morning. Wm. 
 Messenger.” Messenger v. Southey, 1 Man. & Gr. 76 ; 1 Scott, N. 
 R. 180, S. C. 
 
 The following notices of non-payment of six Bills of 
 Exchange were also held insufficient : — 
 
 1. “ Sir, A Bill for 29/. 17^. 3^., drawn by Ward on Hunt, due yester- 
 day, is unpaid, and I am sorry to say the person at whose house it is made 
 payable don’t speak very favourably of the acceptor’s punctuality. I 
 should like to see you upon it to-day. 
 
 2. “ Mr. Maine, — Sir, This is to give you notice that a bill drawn 
 by you and accepted by Josias Bateman for 47/. 1 6 s. 9 d., due July 19th, 
 
 1 835, is unpaid, and lies due at Mr. J. Furze’s, 65, Fleet-street.” 
 
 3. “Sir, Mr. Howard’s acceptance for 21/. 4^. 4 d. due on Saturday, is 
 unpaid. He has promised to pay it in a week or ten days. I shall be 
 glad to see you upon it as early as possible.” 
 
 4. “ Sir, This is to give you notice that a bill for 176/. 15s. 6 d., drawn 
 by Samuel Maine, accepted by G. Clisby, dated May 7th, 1835, at four 
 months, lies due and unpaid at my house. ” 
 
 5. “ P. Johnson Esq.,— -Sir, This is to give you notice that a bill, 
 20/. 1 ys. 7 d., drawn by Samuel Maine, accepted by Richard Jones, dated 
 May 2 1st, 1835, f° ur months, lies due and unpaid at my house.” 
 
 6. “ P. Johnson, Esq., — Sir, This is to give you notice that a bill for 
 148/. ioj., drawn by Samuel Maine, and accepted by G. Parker, dated 
 May 22nd, 1835, lies due and unpaid at my house.” Furze v. Sharwood 
 and Others , 11 L. J., Q. B. 19 ; 2 Q. B. 388, S. C. 
 
Banking in Ireland. 
 
 !95 
 
 But the following have been held to be sufficient notices of 
 dishonour : — 
 
 (i.) “ Sir, A bill drawn by you upon and accepted by Mr. Joshua Watson 
 for 31/. 3s., due yesterday, is dishonoured and unpaid ; and I am desired 
 to give you notice thereof to request that the same may be immediately 
 paid. I am, &c., H. D. Rushbury. ” Woodthorpe v. Lawes , 2 M. & W. 
 
 109. 
 
 (2.) “ Sir, The bill for £ , drawn by you, is this day returned with 
 
 charges , to which your immediate attention is requested.” (Signed by 
 endorsee.) Grugeon v. Smith, 6 Ad. & Ell. 499 ; 2 Nev. & P. 303, S. C. 
 
 (3. ) “ Sir, I am desired by Mr. Hedger to give you notice that a promissory 
 note for 99/. 18^. , payable to your order two months after the date thereof, 
 became due yesterday, and has been returned unpaid, and I have to request 
 you will please remit the amount thereof with is. 6 d. noting, free of 
 postage, by return of post. I am, &c., Jones Spyer. ” Hedger v. Steavenson, 
 
 2 M. & W. 799 ; 5 Dowl. 771, S. C. 
 
 (4.) “ Your bill is unpaid “ noting 5^.” Armstrong v. Christiani, 5 
 
 C. B. 687 ; 17 L. J., C. P. 181. 
 
 (5.) “Your note has been returned dishonoured,” is sufficient, without 
 the words “ your note has been presented for payment.” Edmonds v. 
 Cates, 2 Jurist, 183. 
 
 (6.) “ Messrs. Houlditch are surprised that Mr. Cauty has not taken up 
 Chaplin’s bill according to his promise ; are also surprised to hear that 
 Mrs. Gib’s bill was returned to the holder unpaid.” 
 
 This notice was followed by a visit from the endorser to the holder on 
 the same day, in which he promised to write to the other parties, by whom, 
 or by himself, the bill shall be paid. Houlditch v. Cauty, 4 Bing, N. C. 
 441 ; 2 Scott, 209, S. C. 
 
 (7.) “ Mr. Gompertz, — Sir, The Bill of exchange for 250/., drawn byS. 
 Rendall, and accepted by Charles Stretton, and bearing your indorsement, 
 has been presented for payment to the acceptor thereof, and returned dis- 
 honoured, and now lies overdue and unpaid with me, as above, of which I 
 hereby give you notice. I am, &c., C. Lewis.” Lewis v, Gompertz, 6 M. 
 & W. 400. 
 
 (8.) “I beg to inform you that Mr. D. ’s acceptance for 200/., drawn and 
 indorsed by you, due 31st July, has been presented for payment and 
 returned, and now remains unpaid. ” Cooke v. French , 10 Ad. Ell. 131 ; 
 
 3 Per. & D. 596, S. C. 
 
 (9.) “ Dear Sir, To my surprise I have received an intimation from the 
 Birmingham and Midland Counties Bank that your draft on A. B. is 
 dishonoured, and I have requested them to proceed on the same.” Shelton 
 v. Braithwaite, 7 M. & W. 436. 
 
196 The Law and Practice of 
 
 (10.) “ Sir, I am instructed by Mr. Molineaux to give you notice that a 
 bill (describing it) has been dishonoured,” &c. Stocken v. Collin , 9 C. & P. 
 653; 7 M. & W. 515, S. C. 
 
 (ir.) A party sent by the holder of a dishonoured bill of exchange, called 
 at the drawer’s house the day after it became due, and there saw his wife, 
 and told her that he had brought back the bill that had been dishonoured. 
 She said that she knew nothing about it, but would tell her husband of it 
 when he came home. The party then went away, not leaving any written 
 notice : held sufficient notice of dishonour. Housego v. Cowne , 2 M. & W. 
 348 . 
 
 (12.) “ James Court’s acceptance, due this day is unpaid, and I request your 
 immediate attention to it,” was held sufficient. Bailey v. Porter , 14 M, & 
 W. 44. See the observations on this case in Allen v. Edmunds on, 17 L. 
 J., Exch. 293 ; 2 Exch. 819, S. C. ; and see Paul v. Joel, 3 H. & N. 
 455 ; 28 L. J., Exch. 143 ; H. & N. 355, affirmed in error. 
 
 (13.) “ Y our draft upon C . for 50/. due 3rd March, is returned to us unpaid, 
 and if not taken up this day, proceedings will be taken against you for the 
 recovery thereof,” was held sufficient. Robson v. Ciirlewis, 2 Q. B. 421. 
 
 ( 14. ) Where theholder, when the bill became due, said to the executor of the 
 acceptor, who was also indorser, “ I have brought a bill from the plaintiffs, 
 you know what it is and the defendant said, “ I am executor of the 
 drawee, you must persuade the plaintiff to let the bill stand over a few days, 
 because the acceptor has been dead only a few days. I shall see the bill 
 paid.” Notice of dishonour was held to be proved. Caunt x . Thompson , 
 18 L. J., C. P. 125 ; 7 C. B. 400, S. C. 
 
 (15.) “ We beg to acquaint you with the non-payment of William Miles’s 
 acceptance to James Wright’s draft of 29th December last, at four months, 
 50/., amounting, with expenses, to 50/. 5.5-. id., which remit us in course 
 of post without fail, to pay to Messrs. Everards & Co., Lynn,” was held 
 sufficient. Everardx. Watson, iE. &B. 801. In this case Lord Campbell 
 expressed his regret at the decision of Solarte v. Palmer ; and see Paul 
 v. Joel. 
 
 It is conceived, continues Justice Byles, that the following 
 is the full Form of Notice to be given by the Holder to an 
 Indorser. It may be easily altered and adapted to circum- 
 stances : — 
 
 “ No . I, Fleet-street, London, 26 th Sept. 1842. — Sir, I hereby give you 
 
 notice that the bill of exchange, dated 22nd ult ., drawn by A. B. of , on 
 
 C. D.X)f , for 100 1 . payable one month after date to A. B. or his order 
 
 and indorsed by you , has been duly presented for payment, but was dis- 
 
Banking in Ireland. 
 
 197 
 
 honoured , and is unpaid. I request you to pay me the amount thereof. 
 
 / am , Sir , your obedient servant , G. H. — To Mr. E. F., of , 
 
 ( Merchant ). ” 
 
 The notice must be sent to the places of business 
 or residences of the parties, within a reasonable time after 
 dishonour, which, in the case of Bankers, means the day after. 
 Sundays and Bank Holidays are dies non. 
 
 It is general and most satisfactory, though not necessary, 
 to post the notice of dishonour, for though the posting must be 
 proved in an action on the Bill, it is not incumbent to prove 
 the receipt by the noticed party of the letter containing the 
 notice. A notice need not absolutely be in writing ; an oral 
 notification will be sufficient, if it be capable of being proved 
 to have been given. 
 
 An Acceptor is not entitled to any notice — that is to say, he 
 is not discharged by reason of not having been noticed. In the 
 event of the Bankruptcy of a party to whom notice was 
 necessary, a notice to his Assignees is sufficient ; and, if dead, 
 a notice to the representatives of the deceased. A party 
 who has signed a Bill as a mere guarantor is not discharged 
 by reason of not having received a notice of dishonour, unless 
 he can prove that he has been damnified thereby. If the 
 residence of a party requiring notice, be unknown, and cannot 
 be discovered by the exercise of due diligence, the necessity 
 of notice is dispensed with ; but in the event of the address 
 subsequently becoming known, notice must be sent without 
 delay. A promise to pay made by a Drawer or Endorser after 
 a Bill has arrived at maturity is presumed to be an acknowledg- 
 ment on his part that he has received the notice legally 
 requisite, even though such notice may not have been sent, 
 — for the promise acts by way of condonation of the omission. 
 
 Remedy for Dishonour. — The remedy for dishonour by 
 the Acceptor is by an action on the Bill. The Holder, or the 
 
198 
 
 The Law and Practice of 
 
 person lawfully entitled to the amount, is the only person who 
 can sue. If several parties, as Drawer and Acceptor and 
 previous Endorser for example, are liable, the Holder can 
 select the person against whom he will proceed ; or he can 
 sue all the parties individually in separate actions ; but pay- 
 ment or discharge by any one will discharge all and terminate 
 the suits. If the Holder obtain judgment against all the 
 parties, he can elect which he will execute upon, but he can 
 only execute against one of the parties. The legal procedure 
 on a Bill is defined by the recent Judicature Act, and the 
 writ of summons is to be in a form which is prescribed by 
 the Act. 
 
 Bankruptcy. — Upon an Act of Bankruptcy by a party, all 
 Bills of Exchange current, though not yet matured, as well 
 as those overdue — in fact all debts, can be proved against his 
 estate. But only the one proof on the one debt is admitted ; 
 thus a Bill which has been proved-on against an Acceptor 
 by a Holder, cannot be again proved-on by an Endorser who 
 may have paid it to the Holder. If a Bill which has been 
 proved-on against a Bankrupt Acceptor, be nevertheless paid 
 at maturity by the Drawer, the dividend on the Acceptor’s 
 estate received by the Holder, is in trust with him for the 
 payer of the Bill. If more than one of the parties to a Bill, 
 or all of them, be Bankrupt, the Holder can prove under all 
 who are Bankrupt and receive a dividend out of the estates 
 of all. In case of the Holder of a Bill becoming Bankrupt 
 the Bill vests in his Trustees or Assignees, and he must 
 Endorse it to them as portion of his assets. 
 
Banking in Ireland. 
 
 199 
 
 XIII. 
 
 DISCOUNT.— BILLS FOR COLLECTION.— FOREIGN 
 BILLS , &°c. 
 
 DISCOUNT is, as the word implies, an amount deducted or 
 counted off a sum advanced. It is defined to be a “ deduction 
 made for interest', in advancing money upon a Bill or Note 
 not due ; payment in advance of interest upon money loaned. 
 It is equal to the interest which would be acquired at the 
 given rate for the given time, either by the whole sum specified 
 to be paid, or by that sum after it is itself deducted ; in the 
 former case it is called bank discount 
 
 The rate charged is regulated by the Bank of England rate, 
 and is computed for the number of days the Bill has to run. 
 It is dependent on the nature and class of the Bill discounted, 
 Accommodation Bills being charged a higher rate than true 
 business Bills, and those for a long term higher than those for 
 a short one. The usual course adopted by a Banker in 
 discounting approved Bills for his Customer is either to place 
 the entire amount of the Bills to the credit of his account, 
 debiting him with the discount, or else to place the proceeds 
 to his credit. In either case it is manifest that the 
 apparent rate charged is below the real rate, because the 
 customer is charged a percentage on the full amount of the 
 Bill, as if the full amount had been advanced, whereas it is 
 the amount less the discount that the Customer receives, and 
 upon which, therefore, he pays interest. Thus, for example, 
 in the case of a Bill drawn at 12 months, for ^1,000, and 
 discounted at 5 per cent., the Customer is paid ^950, and 
 
2 00 
 
 The Law and Practice of 
 
 the Banker, therefore, receives ^50 on an advance of ^95 o 
 for 12 months, and this in reality represents somewhat over 
 5X per cent. The Banker charges not on the amount actually 
 advanced, but on the amount repayable, and the Banker is 
 by custom, entitled to the advantage of the transaction. 
 
 A Banker who discounts a Bill, becomes, as it were, the 
 purchaser of the Bill, but the rule caveat emptor does not apply 
 to him, as he has recourse against the Endorser, i.e., the seller 
 of it. But when a Bill is discounted and the proceeds held 
 as cash at the disposal of the Customer, the Bill is purchased 
 to this extent by the Banker, that it becomes his entire and 
 absolute property and he can dispose of it as he wishes. 
 
 There is, however, a difference between giving a Loan on 
 Bills and discounting them. In the former case the Bills are 
 not discounted, they are held as security for the loan made, and 
 only become negotiable by the Banker, and his property, in 
 case of default by the borrower. The Banker has thus a 
 qualified property in such Bills ; he shall not surrender them 
 until the loan be satisfied, and if they mature in his hands and 
 be paid, he holds the proceeds for the benefit of his Customer, 
 though he is entitled to apply the amount in payment of the 
 loan should the Customer be in default. But the Banker 
 cannot transfer Bills deposited against a loan in this manner, 
 as his title to them is not absolute. They remain in the 
 constructive possession of the Customer. 
 
 Bills for Collection. — A Banker generally receives from 
 his customers Bills which he undertakes to collect in the usual 
 course, and to account to the customer for the amount, if the 
 Bills be paid. The Banker has at no time a property in the 
 Bills, as they are not transferred to him ; though if he has made 
 an advance upon the Bills or allowed an overdraft upon the 
 security of them, he has a lien on them. In case a Bill left for 
 
Banking in Ireland . 201 
 
 collection be unpaid, the Banker in his customer’s interest can 
 note or protest it unless he is instructed to the contrary, and it 
 is his duty to return it without delay to the party who lodged 
 it for collection, provided he — the Banker — has no lien upon it. 
 It has been decided that should such Bills, which, though in 
 the Banker’s hands are nevertheless not his but his Customer’s, 
 be destroyed or lost by accident, and through no negligence on 
 the Banker’s part, the loss will fall on the Customer alone. In 
 case of the bankruptcy of the Banker, Bills deposited for collec- 
 tion revert to the Customer and do not pass to the Banker’s 
 assignees. 
 
 “ Short Bills.”— The custom of receiving undue Bills, and, 
 as it is technically called, “ entering them short ” whereby they 
 are known by the term “ Short Bills” (and by means of which 
 the Depositor of them obtains a quasi credit on account of 
 them,) is not practised in this country. 
 
 Interest on overdue Bills. — There is no limit in law to 
 the rate of interest which can be charged on a Bill, since the 
 repeal and entire abolition of the Usury Laws by 77 6° 18 
 Viet ., c. go . But Equity would restrain an usurious rate. A 
 Bill can be drawn, with the words “ bearing interest ” at such a 
 rate, upon the face of it, and that interest, unless it be contrari- 
 wise expressed, begins to run from the maturity of the Bill. 
 
 Usury. — Statutes against usury were enacted in the reign of 
 Henry VIII., who restricted the legal rate of interest to 10 per 
 cent, and made it a penal offence to take more. Under 
 Edward VI. the taking of any interest whatsoever was prohibited. 
 In Elizabeth’s reign a contract for the payment of more than 
 10 per cent, was voided as usurious ; and under successive 
 kings the legal rate was reduced gradually until it reached 5 per 
 cent, in Queen Anne’s reign. The latter Statute enacted that 
 any person taking a larger percentage should forfeit treble the 
 
 o 
 
202 
 
 The Law and Practice of 
 
 money lent, one-half of which penalty enured to the Crown, and 
 the other to “ him that will sue for the same and further, 
 that all bonds or contracts whereby a rate above 5 per cent, 
 shall be reserved or taken, shall be utterly void. The repealing 
 enactments are of a later date. In 1834, Bills and Notes not 
 having more than three months to run were exempted from the 
 operation of the laws against usury. In 1837, those not having 
 more than 12 months to run were exempted. The 2 6 ° 3 Viet., 
 c. 37, exempted also all contracts for the loan of money above 
 ten pounds, but this act did not extend to loans on landed 
 security. And the Statute now in operation is the 17 6° 18 
 Viet., c. go , which made a clean sweep of the usury laws 
 altogether. 
 
 Alteration in Bill. — An alteration in a material part of a 
 Bill or Note vitiates the instrument. But if the alteration be 
 made to correct an obvious mistake ; or if it be made in 
 consonance with, or furtherance of, the wishes of the parties, 
 and before the bill be negotiated — and that such alteration be 
 confirmed by all the parties, the bill is not thereby voided. 
 
 Compulsory Signing. — To compel a person by threats or 
 violence to sign a Bill or Note is a felony. To obtain a signature 
 to a Bill or Note by false pretences or fraudulent representations 
 is a misdemeanour. 
 
 The Statute of Limitations. — The Statute of Limita- 
 tions, which was enacted in the reign of James I. (2/ Jac. 1 , c. 
 16) enacts that “ all actions of debt granted on any lending or 
 contract without specialty, must be brought within six years 
 of the cause of such action, and not after.” A cause of action on 
 a Bill or Note arises at its maturity, and not at its making. If 
 drawn “on demand” the Statute runs from the date of the 
 instrument. The Statute of Limitations is a sufficient plea in 
 a defence to an action for debt. Its effect, in the words of an 
 
203 
 
 Banking in Ireland. 
 
 eminent judge, “ is not to destroy the debt, but only to take away 
 the remedy.” A Bill or Note can be taken out of the Statute 
 by part payment, but such part payment must include an 
 admission that more is due. Payment of interest will also 
 prevent a debt lapsing, but by a Statute no part payment 
 endorsed on a Bill by or on behalf of the party to whom such 
 part pay?nent is made shall be deemed sufficient to take the 
 debt out of the Statute of Limitations. It is, therefore, neces- 
 sary that a part payment or a payment of interest should be 
 signed by the debtor, or recorded in his handwriting. Renewal 
 of a Bill will take the debt out of the Statute, as will also an 
 acknowledgment made to the plaintiff of the indebtedness. In 
 these cases the Statute will run from the renewal, the acknow- 
 ledgment, the part payment, or the payment of interest. 
 
 Lost Bill. — Formerly no action lay at Common Law on 
 a lost Bill or Note, except perhaps on one that was particularly 
 payable, and, therefore, not negotiable ; and, when a Bill or Note, 
 being lost, had become due, application for payment should 
 have been made to the Drawee, and in case of non-payment, 
 the usual notice of dishonour should have been given to the 
 other parties to the Bill. But an Act of Parliament (p 10 
 
 Wm. ///., cap. 77, sec j) provided that the Drawer can be 
 compelled by a lawful Holder, to give, under proper and 
 satisfactory indemnity, a Duplicate of the lost Bill. Now, 
 however, by 17 18 Vic., cap. 125 , sec. 87 , the loss of a Bill 
 
 or Note cannot be set up as a defence to an action on the 
 Bill, provided a sufficient indemnity has been offered to the 
 Acceptor or Maker. The finder of a lost Bill, has, of course, 
 no title against the true owner. 
 
 Foreign Bills. — A Foreign Bill is, briefly, one that is drawn 
 or payable, or purporting to be drawn or payable, abroad — 
 i.e., outside the British Isles. It is frequently drawn in what 
 
204 
 
 The Law and Practice of 
 
 are called “ sets.” The definition given by Mr. Justice 
 Byles of “ sets ” is,“ exemplars or parts of the Bill, which are 
 “ made on separate pieces of paper, each part referring to the 
 “ other parts, and containing a condition that it shall continue 
 “ payable only so long as the others remain unpaid.” These 
 sets generally circulate together, and constitute but one Bill, one 
 only needing to be accepted or endorsed or stamped. On one 
 class of Foreign Bills — i.e., Bills drawn or negotiated in a 
 Foreign Independent State — the Stampof the country where they 
 have been made or negotiated is not required to make them 
 valid in this country. If such a Stamp were legally considered 
 requisite, it would entail a necessity of a knowledge of the Stamp 
 Laws and Stamp Duties of these countries, and this necessity 
 would operate as a restriction to the negotiability of Foreign 
 Bills, because no one would receive them if he knew his title 
 could be defeated and the amount lost to him because of an 
 irregular and insufficient Foreign Stamp. But this does not 
 apply to another class of Foreign Bills — i.e., ones drawn 
 or negotiated in some of the Colonies, where the Stamp Duties 
 which obtain in those Colonies are the same as those of 
 the British Isles. The Stamp Duties on Foreign Bills 
 negotiated in this Kingdom, are denoted by adhesive stamps, 
 and are the same as those on Bills of Exchange, as set forth 
 in the Stamp Act ante. 
 
Banking in Ireland . * 205 
 
 XIV. 
 
 BANKERS' DRAFTS AND POST BILLS— LIEN— 
 CONFIDENTIAL REPORTS, &c. 
 
 BANKERS’ DRAFTS.— This is the term that distinguishes 
 Drafts which are drawn by a Bank or one of its branches, 
 upon another of its branches or upon its agents, and which 
 are payable on demand, without acceptance, to a specified 
 party or his order. They are a means of remitting money 
 from one place to another, and have all the incidents of 
 Cheques. 
 
 Bank Post Bills. — Irish Banks issue Post Bills on London, 
 which are Bills of Exchange payable at a given period after date 
 or sight. If drawn after date they are payable when due, with or 
 without acceptance. They also issue Irish Post Bills, which are 
 promissory notes, generally payable at seven days after date. 
 These are, in the majority of instances, redeemed on 
 demand without acceptance. Neither of these instruments bear 
 stamps, as the Stamp Duty is paid by composition in accordance 
 with certain Acts of Parliament. But as the provisions of the 
 Acts of Parliament are in respect to “ Bank Post Bills of ^5 and 
 upwards,” it seems that Post Bills for less than ^5, issued 
 unstamped, would not be embraced in the Composition Duty, 
 and would, therefore, not be legal instruments. The power "to 
 pay a Composition Duty was established for Irish Banks by the 
 27 6° 28 Vict. 9 cap . 86, which permitted the composition, but 
 limited it to “a period of three years from the passing of the 
 act.” But the power was made perpetual by 30 6° 31 Viet , 
 cap . 89 (The Stamp Duty Composition Act of 1867). 
 
206 
 
 The Law and Practice oj 
 
 Bankers in Ireland were (by 9 Geo . IV, c. 49, s. 2) prohibited 
 issuing Bank Post Bills unless the same were made payable at the 
 place they were issued ; but they might have been made also 
 payable at several places. Bank Post Bills are an old form of 
 remittance, having been issued by the Bank of England as long 
 ago as 1738. 
 
 Letters of Credit. — A Letter of Credit is an instrument — 
 not a Banker’s Draft or Bill of Exchange — whereby a person is 
 enabled to draw money lodged elsewhere for his use. It is, to 
 use Grant’s words, “an authority from the Banker who signs it 
 to the Banker or person to whom it is addressed, upon advice to 
 honour the Drafts of the person named in it, and who produces 
 the letter ; and, consequently, he alone is entitled to draw the 
 Draft or to receive payment.” It is adapted for persons who 
 are travelling in continental and foreign countries, and possesses 
 elements of security which an ordinary Banker’s Draft does not 
 possess. It is a written direction by a Banker to several correspon- 
 dents to pay the Drafts on him of the person named in the letter, 
 to a certain extent, within a given period. Each payment is 
 entered on the Letter of Credit, and the correspondents are 
 thus informed if the credit is exhausted before the expiration of 
 the period named. The letter bears the signature of the party 
 in whose favour it is issued, thus providing the identification 
 requisite. But if the Banker on whom the Drafts in connec- 
 tion with the Letter of Credit are drawn, pay any Drafts on a 
 forged signature, he, as in the case of a Cheque, is not dis- 
 charged to the party whose signature it purports to be. Letters 
 of Credit, granted in the United Kingdom, authorizing Drafts 
 to be drawn out of the United Kingdom, payable in the United 
 Kingdom, are, as has been seen, exempt from Stamp Duty 
 by the Stamp Act ; but the Drafts drawn under it are not. 
 
 Circular Notes are instruments similar to Letters of Credit 
 
Banking in Ireland . 
 
 207 
 
 i. e., are issued for a similar purpose. They are Bills of 
 Exchange of a certain amount, drawn in French, and accom- 
 panied by a letter called a Letter of Indication, also in French 
 (as the most general language), which is addressed to the 
 foreign correspondents of the issuing Banker, and which con- 
 tains the signature (for identification) of the party for whose 
 favour the notes are issued. The Drawees of these notes are 
 the correspondents specified in the letter and the notes are 
 payable without acceptance to the party named in the letter. 
 
 Marginal Letters of Credit— This is another form of 
 instrument of a somewhat similar nature as the foregoing, but 
 they are not issued by Irish Banks, as far as we are aware. 
 
 A Lien is defined to be “ a right in one to hold and retain 
 the property of another until some claim of the former is paid 
 or satisfied.” In a Lien, though the Holder of the securities 
 has actual possession, he is not absolutely possessed of them, 
 and his title to the actual possession is qualified, and lapses 
 altogether upon the satisfaction of his claim against the real 
 owner. A General Lien is where securities are deposited 
 generally to cover an indebtedness which may fluctuate from 
 time to time, no matter how that indebtedness may be created. 
 
 A specific Lien is where securities are deposited to cover a 
 specific indebtedness created in a specified manner. Thus a 
 Lien “ to cover the balance due on foot of A.’s current 
 account, to the extent of ^500,” is specific. A Banker has a 
 general Lien upon all securities he may have in his possession 
 belonging to the indebted Customer, which have been lodged 
 with him as securities, actually or constructively. But a Lien 
 does not attach to securities which have been lodged for a 
 special purpose. For instance, a Banker ha,s no Lien for a 
 
208 
 
 The Law and Practice of 
 
 balance against a Customer, on (e.g.) Exchequer Bills lodged 
 in order that the interest on them may be drawn, or fresh 
 Bills obtained. So a Banker has no Lien on plate deposited 
 with him for. safe custody. Nor has he a Lien on securities 
 left at the Bank, casually or by mistake, by his Customer. 
 If a Customer when depositing securities with a Banker, 
 acknowledge that they do not belong to him, the Banker can 
 have no Lien on them ; and if the Banker have made advances 
 upon the securities without any such knowledge, but that 
 subsequently he is informed of the fact, that information is 
 a notice to the Banker not to make further advances, for his 
 Lien may be altogether disputed ; but it cannot be made to 
 cover the advances made after he has had notice that the 
 securities belong wholly, or in part, to a third person ; for that 
 is notice that the Customer had no authority to pledge the 
 securities, or saddle them with a Lien. 
 
 As a Lien is a power of detention, supported by a power to 
 realize in case of default of the Customer, and to appropriate 
 the proceeds of the realization to the extent due by the Cus- 
 tomer and interest thereupon, the duty is imposed on 
 Bankers not to realize prematurely, or to the detriment of the 
 Customer ; and further, to hold any surplus from the realiza- 
 tion, after the satisfaction of the debt, for the benefit of the 
 Customer. If a Banker, having a Lien on securities for a debt, 
 nevertheless takes a distinct security, payable at a distant day, 
 for the same debt, he destroys his rights of a Lien. 
 
 Liability of Bankers for the conduct of their Cor- 
 respondents. — If a Banker undertake to perform for his 
 Customer a Banking duty in a place where there is a branch of 
 his Bank, and that the Branch Office is guilty of negligence 
 
Banking in Ireland. 
 
 209 
 
 which damnifies the Customer, the Banker is liable, because 
 his Branch Bank is, as it were, himself. And also, if a Banker 
 A., engage to perform a duty in a place where he has no 
 Branch of his own Bank, and employs another Banker B., 
 as his agent to discharge that duty, and this Agent-Banker 
 by his conduct, directly or indirectly, entail a loss, and the 
 question arises upon whom this loss shall fall, the Banker A. is 
 liable to his Customer, and in all such cases must suffer the loss 
 occasioned by the act of B., the agent he employed. But he, 
 A., will have, of course, a right of recourse to B., by whose 
 laches he has suffered the loss. 
 
 Confidential Reports on Customers.— The custom of 
 one Banker giving another a report in confidence of the posi- 
 tion, means, and character of his customer, has grown from 
 being a matter of courtesy to be a recognized and established 
 duty. So much has it become part of a Banker’s business that 
 Banks have usually printed forms for the purposes of asking and 
 answering such enquiries. The form asking for the information 
 alleges the private nature of the enquiry ; and that affording the 
 information sought, bears the avowal that it is given without 
 responsibility on the part either of the Bank or the manager 
 personally. Banks make these enquiries, either for their own 
 information, or on behalf of their Customers, and the informa- 
 tion they elicit must be taken for what it is worth. Notwith- 
 standing the printed notice on the reply-forms, to the effect that 
 the information is given on the understanding that no responsi- 
 bility is entailed by the giver, nevertheless, if it be proved that 
 misleading information was given by malicious design, and in 
 consequence of such information credit was given to the party 
 reported on, which entailed a loss, the Banker giving such 
 
210 
 
 The Law and Practice of 
 
 deliberately wrong information will be held liable. But it 
 would be extremely difficult to prove malice in such a case. 
 Except in undoubted and unquestionable cases, Bankers gene- 
 rally reply to these queries in a somewhat ambiguous fashion ; 
 for instance, “ A. is believed to be respectable, and is considered 
 good in a business transaction for ;£ioo.” This is done, 
 perhaps, with a view of shirking a possible responsibility — 
 though all responsibility is patently disclaimed ; but it cannot 
 be considered a satisfactory method of answering business 
 enquiries. 
 
Banking in Ireland . 
 
 21 1 
 
 XV. 
 
 SECURITIES DEPOSITED AGAINST ADVANCES, &c. 
 
 Policies — Shares — Title Deeds — Goods — &c. 
 
 THE OBJECT of deposits of securities with a Banker 
 is to protect the Banker against advances made to his 
 Customer. Where the security deposited is one wherein the 
 property will not pass by mere delivery, but by assignment, 
 the property will remain in the Depositor. The Banker 
 will have no more than a lien upon it, unless it be duly 
 assigned, and proper notice given of such assignment. Thus, 
 in the case of a Policy of Assurance, an assignment to 
 the Bank must be made, and the company noticed thereof 
 in order to vest the property in the Banker ; and notice to an 
 agent of the Assurance Company is not deemed notice to the 
 company, except in special cases where the agent is employed 
 to receive such notices. This assignment, with notice of it, is 
 chiefly of importance in the case of the Bankruptcy of the Debtor 
 who has deposited the Policy. In ordinary cases, the mere 
 deposit of the Policy will give the Banker a lien upon it, 
 because the possession of it under the circumstances will 
 constitute him an equitable mortgagee : but it is the most 
 approved and satisfactory course to obtain an assignment in 
 all cases. It is to be observed that a Policy which becomes 
 void if the assured commit suicide, is, nevertheless, valid 
 in the hands of an assignee, if it be assigned a reasonable 
 time before the act of suicide. 
 
 Shares and stock. — In the same way, in order that the 
 Tanker should obtain a property in Shares or Stock lodged by 
 
212 
 
 The Law and Practice of 
 
 his Customer, it is usual to have the Shares or Stock transferred 
 into the name of the Bank, or some of its joint officers ; but 
 such transfers must be in accordance with the constitution of 
 the Bank. A mere deposit of the certificates of Shares or 
 Stock should he accompanied by a letter from the Depositor to 
 the effect that they are lodged as security for advances. 
 
 Bills of Lading and Dock Warrants.— As these 
 documents, when duly endorsed, give the holder of them the 
 right to the goods named therein, the property passes without 
 further assignment, and they are good securities in the hands of 
 the Banker. 
 
 Title Deeds.— A mere deposit of Title Deeds constitutes 
 the Banker an equitable mortgagee ; nevertheless, a letter 
 of deposit is advisable, and such letter does not require to 
 be stamped. A deposit of a Lease conveys an equitable 
 mortgage on all fixtures and improvements in the premises, 
 though they be added or effected subsequently to the deposit, 
 except they are improvements or fixtures which are the property 
 of a Sub-Lessee. But the deposit of a Lease of a house does 
 not carry a charge on the furniture, & c., therein ; but if it be a 
 Licensed house, the Mortgagee has a charge on the goodwill of 
 the License. A Banker holding a Lease as a mere equitable 
 Mortgagee is not liable for the covenants of the Lease. 
 “Where Bankers take a mortgage as security, the principal 
 point to be considered,” says Grant, “is that the lands, &c., 
 meant to be charged, shall be precisely specified or designated.” 
 It is true that the intent to give a general charge upon all the 
 property of the Mortgagor may be explained aliunde, but the 
 shortest, safest, and the least troublesome and expensive mode 
 of effecting an arrangement of this kind is, to have care taken 
 that the mortgage deed is made as complete as possible within 
 itself, so as to require no subsequent propping up ; and he 
 
Banking in Ireland. ' 213 
 
 quotes the following case to show how needful is attention to 
 this point : — A Customer being indebted to his Bankers, 
 sent to them certain Title Deeds, with a letter in which he 
 stated that he thereby pledged his grant of coal under an 
 estate, which he - specified, as a security for the money 
 advanced, and also as a general cover for his Banking 
 Account with them. There were other estates belonging to 
 the Customer comprised in the Deed sent, but the Court held 
 that the Bankers could only claim a Lien in respect to the 
 estate particularised in the letter. 
 
 Goods Deposited. — It is not usual in Ireland for a 
 Banker in ordinary transactions to accept a deposit of goods as 
 security for advances, for not alone would such a practice be 
 inconvenient and troublesome, but, further, it would degrade 
 Banking to the low level of Pawnbroking. But in a case of 
 necessity, where no other security is obtainable, it is possible 
 a Banker would be bound, in order to protect himself, to take 
 a deposit of goods as security, in preference to having no 
 security whatsoever. In such a case, his chief care is to assure 
 himself that the goods so deposited are really the disposable 
 property of the Debtor or the Guarantor, otherwise the Banker 
 can, perhaps, be compelled to surrender them to the lawful 
 owner, for it is apparent that if the depositor had no title in 
 them he could give no title to the Banker. And, having 
 satisfied himself on this point, he should obtain a letter of 
 deposit, with a power of sale if the security should be goods 
 which are not deposited ; the Deposit should be accompanied 
 by a Bill of Sale, duly executed and registered in compliance 
 with the Law. 
 
 A Security deposited to secure a specific amount, or a specific 
 debt, cannot be otherwise applied ; and securities must be 
 surrendered to the Debtor or Guarantor on the quittance of the 
 
214 
 
 . The Law and Practice of 
 
 debt, and if realized, the surplus, if any, must be given over to 
 the Depositor, or to his representatives if he be dead ; or to his 
 Assignees if he be a Bankrupt. 
 
 “ Safe Custody.” — Where a Customer of a Bank gives 
 the Banker boxes containing, or said to contain, plate, 
 jewellery, deeds, or valuables or securities of any description, 
 not by way of security, but in order that they should be safely 
 kept, and the Banker consents to receive them, the act is said 
 to be a deposit for safe custody. The Banker is bound to 
 surrender such articles on the application of the Depositor. 
 As a rule, Bankers make no charge for thus accommodating 
 their Customers ; and though an opinion seems to prevail 
 that the Banker should not thus give the use of his strong 
 rooms and safes to his Customers gratuitously , it must be 
 remembered that if he should undertake the custody for hire 
 ae would clothe himself with a liability not attaching to him as 
 a gratuitous custodian. The acceptance by the Banker for 
 safe custody of his Customer’s Box being for the Customer’s 
 convenience and accommodation, and not being done for 
 reward, the Banker is not liable for any loss occasioned by 
 robbery, fire, destruction, &c., as long as he has taken ordinary 
 care of the articles so deposited, because he is but a gratuitous 
 bailee. Ordinary Care is described in a judgment by the 
 Privy Council (England) in a safe-custody suit, as “that 
 ordinary diligence which a reasonably prudent man takes of 
 Ms own property of the like description.” Further, if the 
 valuables deposited should be stolen, or converted bv a clerk 
 or servant in the Bank, the Banker will not be liable, unless 
 he has been guilty of gross and culpable negligence, or that 
 he has retained the clerk in the service of the Bank with a 
 knowledge that he is a dishonest servant. 
 
 Nevertheless, Byles gives it as his opinion, that in cases ot 
 
Banking in Ireland ’ 
 
 215 
 
 deposits for safe custody, accepted by the Banker without 
 reward, “ the Banker can hardly be regarded as acting 
 gratuitously for his Customer, such custody being an 
 inducement held out to attract Customers . by the use of whose 
 balances the Banker is paid.” But this reasoning could hardly 
 be made applicable to Banks who do not invite such deposits. 
 A Banker’s liability for deposits for safe custody does not 
 lapse by time, and in case of the death of the Depositor, the 
 Banker becomes the Trustee (to the extent of the deposit) 
 for the representatives of the deceased. 
 
 If a Banker, entrusted with securities, deposited for safe 
 custody, shall, in violation of good faith, and contrary to the 
 purpose for which such deposit was made, “ sell, negotiate, 
 transfer, pledge, or in any way convert to his own use or 
 benefit, or the use or benefit of any person other than the 
 person by whom he shall have been so entrusted,” such 
 property or security, or any part thereof, he shall be guilty of a 
 misdemeanor, and on conviction is liable to penal servitude 
 for a term not less than five years, and not more than seven 
 years ; or to imprisonment, with or without hard labour, for 
 any term not exceeding two years. 
 
216 
 
 The Law and Practice of 
 
 XVI. 
 
 BANK NOTES.— I. O. U. 
 
 A BANK NOTE is a promissory note issued by a Banker and 
 made payable to the bearer on demand, which circulates as, and 
 is equivalent to, money. It differs from other promissory notes 
 in that it can be re-issued, and the mere possession gives a 
 property in it. It further entitles the Holder to the amount 
 without endorsement. Bank Notes are the descendants of the 
 old Deposit Notes, called “ Goldsmiths’ Notes,” issued by the 
 early Goldsmiths who were the precursors of Bankers in 
 London. A Bank which issues such notes is called a Bank of 
 Issue, and “ circulation ” is the term applied to the aggregate 
 notes of a Bank in the hands of the public. 
 
 The privilege of issuing Bank Notes is not possessed by all 
 the Irish Banks, and it cannot now be obtained by those that do 
 not possess it, nor by any new establishment. The rights and 
 extent of the note issues of those Banks who are entitled to 
 make and issue Bank Notes are now defined and regulated by 
 the Statute Law. In the early days of Irish Banking, every 
 private firm calling itself a Bank could, and did, issue notes 
 unrestrainedly, to an almost incredible extent, sometimes with- 
 out any security or even possibility of redeeming them, and the 
 evils wrought to the country by this unlimited issue of worthless 
 notes by Bankrupt Firms, were such, that the Legislature 
 interfered, though tardily, to protect the public and ensure them 
 some security that the notes which should circulate as money 
 from hand to hand should not prove worthless. 
 
Banking in Ireland . 
 
 217 
 
 By the p Geo . /K, < 5 to. (an Act passed on 25th July, 1828), 
 
 it was provided that Bankers in Ireland, duly constituted and 
 licensed, might issue and re-issue certain promissory notes, 
 payable to bearer on demand, for any sum not exceeding ^100, 
 on unstamped paper. The license was granted by the Com- 
 missioner of Stamps, and was charged with a Stamp Duty 
 of ^30, and though a separate license was required for every 
 place where notes were issued, yet no more than four licenses 
 were needed, as the fourth embraced, as one place, all the 
 towns over and above the three for which the three preceding 
 licenses were issued. The license lapsed in a year, so that the 
 duty of ^30 was an annual charge. One of the conditions 
 precedent to the obtainment of the License, was the execution 
 of a bond by the Banker, to keep a true record of the notes 
 issued and cancelled, and a true account of the amount of the 
 notes in circulation. On the average amount in circulation 
 each six months, a duty of is. 6d. per ^100 was payable as 
 composition, in lieu of the duty on each note hitherto charge- 
 able. The p Geo. IV . , c. 81 (passed on the same day) enacted 
 that no Banker in Ireland shall issue notes which shall not 
 express them to be payable at the place where issued, though 
 they might be also made payable at several other places. 
 
 But the Statute which now regulates the issue of Bank Notes 
 in Ireland is the 8 or p Vic., c. 37, commonly known as the 
 “ Bank Act of 1845,” having been passed on the 21st July of 
 that year. We give this Statute in full in the Appendix, as it is, 
 in its recitals alone, a document of great value and interest to 
 all Bankers, and one that they should be fully acquainted with. 
 The 8th sec. places Irish Note Issues on the basis on which they 
 now stand. It is as follows : — That every Banker claiming to 
 be entitled to issue Bank Notes in Ireland shall, within one 
 month next after the passing of this Act, give notice in writing 
 
 p 
 
2l8 
 
 The Lazv and Pi'actzce of 
 
 to the Commissioners of Stamps and Taxes, at their head office 
 in London, of such claim, and of the place and name and 
 firm at and under which such Banker has issued such notes in 
 Ireland during the year next preceding the ist day of May, 
 1845, and thereupon the said Commissioners shall ascertain if 
 such Banker was, on the 6th day of May, 1 844, and from thence 
 up to the first day of May, 1845, carrying on the business of a 
 Banker, and lawfully issuing his own Bank Notes in Ireland, 
 and if it shall so appear, then the said Commissioners shall 
 proceed to ascertain the average amount of the Bank Notes of 
 such Banker, which were in circulatian during the said period 
 of one year preceding the ist day of May, 1845, according to 
 the returns made by such Banker, in pursuance of the Act 
 passed in the 4th and 5 th years of the reign of her present 
 Majesty, intituled ‘an Act to make further provisions relative 
 to the returns to be made by Banks of the amount of their notes 
 in circulation,’ and the said Commissioners, or any two of them 
 shall certify under their hands to such Banker the average 
 amount, when so ascertained as aforesaid, omitting the fractions 
 of a pound, if any ; and it shall be lawful for every such Banker 
 to continue to issue his own Bank Notes after the 6th day of 
 December, 1845, to the extent of the amount so certified, 
 and of the amount of the gold and silver coin held by such 
 Banker, in the proportion and manner hereinafter mentioned, 
 but not to any further extent ; and from and after the 6th day 
 of December, 1845, it shall not be lawful for any Banker 
 to make or issue Bank Notes in Ireland, save and except 
 only such Bankers as shall have obtained such certificate 
 from the Commissioners of Stamps and Taxes. 
 
 This Statute was effectually prohibitory, and no person 
 other than a Banker, who, on the 6th day of May, 1844, was 
 lawfully issuing his own Bank Notes, could thereafter — unless 
 
Banking in Ireland, 
 
 219 
 
 the Law was repealed — make or issue Bank Notes in any part 
 of the United Kingdom. It is evident the Banks then issuing 
 notes had a prescriptive right to their issue — a vested interest 
 of which they could not be deprived without a proper compen- 
 sation. 
 
 The Banks entitled to issue notes under this act were 
 empowered to relinquish the same in favour of the Bank of 
 Ireland, but having once relinquished, they couid not resume 
 it. The 14th section enacts : — That from and after the 6th 
 day of December, 1845, it shall not be lawful for any Banker 
 in Ireland to have in circulation, upon the average of a period 
 of four weeks to be ascertained as hereinafter mentioned, a 
 greater amount of notes than an amount composed of the sums 
 certified by the Commissioners of Stamps and Taxes, as 
 aforesaid, and the monthly average amount of gold and silver 
 coin held by such Banker during the same period of four 
 weeks, to be ascertained in the manner hereinafter mentioned. 
 
 These averages were to be obtained as averages usually are 
 — on the amounts returned weekly ; and a monthly return of 
 the monthly averages was to. be supplied to, and published by, 
 the Commissioners of Stamps. The “ gold and silver coin 
 held,” was, by the 20th section, to include only the gold and 
 silver coin held at the four principal offices or depots, and not 
 that held at all the Branches ; and, further, if the silver coin 
 should exceed the proportion of one-fourth the amount of 
 gold coin, the surplus was not to be taken into account, and 
 not to be issued against. Bank notes under £1 were, by the 
 24th section abolished, and declared null and void. 
 
 The Composition Duty now payable is 3s. 6d. (three shil- 
 lings and sixpence) for every ^100, and also for the fractional 
 part of ^,100, of the average amount and value of the notes 
 in circulation during every half year. 
 
220 
 
 The Law and Practice of 
 
 At the passing of the Act of 1845, the following Banks, 
 which are now existing, were issuers of notes : — 
 
 1. The Bank of Ireland. 
 
 2. The Provincial Bank of Ireland. 
 
 3. The Belfast Banking Company. 
 
 4. The Northern Banking Company. 
 
 5. The Ulster Banking Company, and 
 
 6. The National Bank. 
 
 There were other Banks then issuing notes, which have 
 since collapsed~the Agricultural Bank of Ireland and the 
 Provident Bank. And the Hibernian Bank and Royal Bank, 
 though then established, were, nevertheless, non-issuers, and 
 have had to remain so since. The Munster Bank was estab- 
 lished in 1864, and, consequently, could not issue notes. 
 
 The average circulation at the time of the passing of this 
 Act, ot the above-named six Banks, was, respectively : — 
 
 1. The Bank of Ireland, ... ... ^£3, 738, 428 
 
 2. The Provincial Bank of Ireland, ... 927,667 
 
 3. The Belfast Banking Company, ... 281,611 
 
 4. The Northern Banking Company, ... 243,440 
 
 5. The Ulster Banking Company, ... 311,079 
 
 6. The National Bank, ... ... 852,269 
 
 That circulation was accordingly made the basis ol the 
 future powers of issue — whether reasonably or unreasonably, 
 it is not our present province to discuss. For every note 
 issued in excess of this amount, gold and silver coin must be 
 held at the depots of the Banks, and the silver must not exceed 
 one-fourth part of the gold. The returns of the Bank Issues 
 
Banking in Ireland. 
 
 221 
 
 for the four weeks preceding the 20th December, 1879, showed 
 
 the following average circulations : — 
 
 1. The Bank of Ireland, ... ... ^2,769,900 
 
 2. The Provincial Bank of Ireland, ... 766,596 
 
 3. The Belfast Banking Company, ... 422,272 
 
 4. The Northern Banking Company, ... 453,457 
 
 5. The Ulster Banking Company, ... 633,516 
 
 6. The National Bank, ... ... ... 1,238,593 
 
 And the average amount of coin held in accordance with the 
 
 Statute during the same period 
 
 1. The Bank of Ireland, ... ... ^571,458 
 
 2. The Provincial Bank of Ireland, ... 405,999 
 
 3. The Belfast Banking Company, ... 278,072 
 
 4. The Northern Banking Company^ ... 352,484 
 
 5. The Ulster Banking Company, ... 458,458 
 
 6. The National Bank, ... ... ... 762,501 
 
 One pound notes are now unknown in England, as the issue 
 of all notes for sums under ^5 was by Law prohibited there, 
 after the 5th April, 1829. In Ireland, Scotland, and the Isle 
 of Man, notes for jQi are legal and current, but no note can 
 be issued for a less sum than jQ 1 . Notes for 30s. were issued 
 years ago by some of the Banks, but the practice has been 
 discontinued. In Ireland the Provincial Bank is the only 
 establishment which circulates notes for £2. Up to the 
 passing of the Banking Act of 1879, it was the law (by a 
 section of “ The Companies Act, 1862 ”), that a Banking 
 Company which claimed to issue notes in the United Kingdom 
 was not entitled to become a bank with limited liability. As 
 we shall subsequently see, this part of the Statute is repealed 
 by the Act of 1879, 
 
222 
 
 The Law and Practice of 
 
 It has been pointed out that Irish Banks are entitled to 
 issue a certain amount of Notes, without holding an equiva- 
 lent in Coin, and that the amount of Notes issued over and 
 above this authorized circulation, may be issued only against 
 Gold and Silver Coin held, as directed by the Statute. From 
 this circumstance, the opinion has been entertained, that in 
 case of stoppage of the Bank, the Notes outstanding constitute 
 a first charge on the Gold and Silver Coin, and that the Holders 
 of the notes are preferential Creditors. But this is not a 
 correct view of the Law, as the Coin forms portion of the 
 general Assets, and the Note-holders rank but as general 
 Creditors. The objects of the Act were to restrict the reckless 
 and inflated note issues which characterized the early periods 
 of Banking, and to compel the holding in the country of a 
 certain amount ot specie, for reasons which will be understood 
 by Students of Political Economy. 
 
 It is to be remembered that the Banks of Issue hold actual 
 value from the public for the amount represented by the Notes 
 in circulation, and for this value they give in exchange a piece 
 of engraved paper, intrinsically worthless. Now, a Gold Coin 
 is intrinsically value for what it represents, and, though a Bank 
 Note is redeemable by gold, it is still no more than a token, 
 and its value is dependent on the credit the issuing Bank 
 enjoys. If that credit be injured, the value of the Notes is 
 depreciated, and as it would be a great injury to the commerce 
 of the country to have Notes of a fluctuating and depreciating 
 value in circulation, the State interposed to prevent this, and 
 passed the above Act, which, by compelling a proportionate 
 holding of Gold and Silver, compels a Bank of Issue to main- 
 tain its credit, and thus, in effect, almost ensures that the 
 represented value of a Bank Note shall be its actual value. 
 The coin, however, which issuing Banks are bound to hold 
 
Banking in Ireland . 223 
 
 against their circulation is entirely unproductive ; it is received 
 from the public in lieu of the notes issued ; it is the real money 
 which is represented, to its extent, by the mock money — the 
 promises on paper — the notes. But, as has been seen, the 
 amount of these notes, the representatives of real money, in 
 the hands of the public, exceeds the amount of unproductive 
 gold and silver the Banks hold, and, therefore, the Banks have 
 the use of the surpluses, without paying the public anything 
 for the loans, so to speak, of the amounts thus used pro- 
 ductively. From the following tables it will be seen that the 
 amounts actually held by the Banks of Issue from the public 
 (as represented by the difference between the Notes in 
 circulation and the Coin held), on which the Banks paid no 
 interest were on 20th Dec., 1879, respectively — 
 
 1. The Bank of Ireland, 
 
 ,£2,198,442 
 
 2. The Provincial Bank of Ireland, 
 
 360,597 
 
 3. The Belfast Banking Company, 
 
 144,200 
 
 4. The Northern Banking Company, 
 
 100,973 
 
 5. The Ulster Banking Company, 
 
 I 75 >° 5 8 
 
 6. The National Bank, 
 
 476,092 
 
 These amounts would represent at 3 
 
 per cent, an annual 
 
 come of, respectively — 
 
 
 1. The Bank of Ireland, 
 
 .£65,953 
 
 2. The Provincial Bank of Ireland, 
 
 10,818 
 
 3. The Belfast Banking Company, 
 
 4,326 
 
 4. The Northern Banking Company, 
 
 3,029 
 
 5. The Ulster Banking Company, 
 
 5.25 1 
 
 6. The National Bank, 
 
 14,383 
 
 But the expenses attendant on the issue of Notes is some- 
 
224 
 
 The Law and Practice of 
 
 thing considerable. The cost of producing them is not 
 much, but special officers have to be employed to cancel the 
 old Notes, to keep all the records attendant on the circulation, 
 to deal with lost, mutilated, and halves of notes. Nevertheless, 
 an issue is a source of material profit to a Bank. 
 
 The Bank of Ireland is the only Irish Bank which manufac- 
 tures its Bank Note paper and prints and numbers its Notes 
 in Ireland, and in this sense it deserves to be called, what it 
 in reality is, the National Bank of Ireland. All the other 
 Banks obtain their Notes from London engravers. The Bank 
 of Ireland is the only Irish Bank authorized in Ireland to have 
 its Notes signed by machinery— as the Bank of England is in 
 England. 
 
 Though Bank Notes are only representatives of money, 
 nevertheless, if they have been accepted as cash by a party, 
 they are regarded as money by the Law, and they pass under 
 a will as money, and are included in “ goods and chattels,” 
 and can be taken in execution under a writ of fieri facias. 
 A Banker must pay his Notes in legal tender if required, and 
 if he refuse to pay the bearer on demand in accordance with 
 the promise contained in the note, the bearer or holder can 
 note or protest the Bank Note so refused. This was actually 
 done on one occasion to the Bank of Ireland, when it declined 
 to pay one of its Notes in gold to the Provincial Bank. 
 Refusal is an act of insolvency, and the party so refused can 
 file a petition in Bankruptcy against the Bank, on the strength 
 of its having dishonoured its Promissory Note. It is evident, 
 therefore, that a Bank cannot “ stop payment ” of any of its 
 Notes, with impunity ; should it adopt this course it should get 
 an indemnity from the party at whose instance it stops the pay- 
 ment — for stopping payment is a dishonouring. A bona fide 
 Holder of a note, is entitled to payment of the amount of it 
 
Banking in Ireland. 
 
 225 
 
 by the Bank that made it, notwithstanding fraud on the part of 
 any previous Holder, and a Banker must pay it, unless he 
 have actual k?iowledge that the Presentor is in the fraud, or 
 privy to it. 
 
 A Bank Note being payable to Bearer, passes by delivery, 
 and the person transferring it is under no liability on it, as it 
 does not bear or require his endorsement, and the Transferee 
 takes it at his own option and risk, it not being a legal tender. 
 Further, a transfer of a Note for a consideration, not a debt 
 already due, amounts to a sale of the Note, and such sale does 
 not convey or imply a guarantee of the solvency of the Banker 
 that issued it. The result, however, would be different if 
 fraud, or knowledge of the insolvency of the Bank can be 
 proved against the Transferor. 
 
 But in an ordinary case, where A. gives change to B. for a 
 Note which proves worthless, A. can recover the amount from 
 B., unless he is proved guilty of delay, negligence, or laches in 
 acquainting B. of the fact that it is a worthless Note, If a 
 Bank give a Customer a receipt for money lodged, which 
 lodgment is composed of, or includes, forged or worthless 
 Notes, it can debit the Customer’s account with the amount of 
 such worthless Notes, if it is in a position to prove the receipt 
 from the Customer, Forged Notes are not money, and though 
 the Banker give a receipt for money, if he can prove that the 
 receipt is given under the supposition that the Notes were 
 genuine, and on the Customer’s implied representation that 
 they were genuine, he can recover the amount from the 
 Customer. But if the Customer pay into his Banker Bank 
 Notes issued by a Bank which fails soon after such paying in, 
 and that the Banker has allowed a reasonable time to elapse 
 without presenting them to the Issuing Bank, and that when 
 presented they are found not to be value, he cannot then 
 
226 
 
 The Law and Practice of 
 
 recover from his Customer, for due diligence in presenting 
 them had not been exercised. 
 
 Half-Notes. — Lost Notes. — For convenience and secu- 
 rity in making remittances, Notes are frequently cut in halves, 
 the parts being remitted at different times, or by different 
 channels. The practice of cutting is not illegal, though in 
 Scotland it is not usual and is discountenanced by the Scotch 
 Banks. Where one half of a Note has been lost, the Bank 
 will pay the full amount on the production of the other half 
 upon affidavit and indemnity, provided the amount has not 
 already been paid to a previous applicant. A Bank can also 
 be compelled now to pay the amount of a lost Note upon a 
 satisfactory indemnity being given. Thus, if a Note be totally 
 destroyed, the lawful owner of it, knowing its number, &c., can 
 obtain payment from the Bank, provided he tenders a satis- 
 factory indemnity ; and in an action against the Banker for the 
 amount of such loss, he, the Banker, cannot plead the loss and 
 non-production as a defence. 
 
 Bank Notes do not lapse, nor does the Statute of Limitations 
 apply to them. It is specially enacted that all Bank Notes 
 shall be deemed to be in circulation from the time they shall 
 have been issued until they be returned to the Issuing Bank, 
 and, therefore, as long as they are outstanding, they are 
 current and negotiable. In Morse’s “ Treatise on Banks and 
 Banking,” it is said on this subject : — “ Every time a Note is 
 re-issued by the Bank, the promise is renewed, and it must 
 usually be impossible in the case of any particular Bill to say 
 how often it has passed into, and again has been paid out by, 
 the Bank, or when it was last so paid out. But even if in any 
 individual case it could be shown that the last issue was at a time 
 so long past that the period of the Statute has since elapsed, yet 
 another objection, which goes to the root of the matter, still 
 
Banking in Ireland . 
 
 227 
 
 remains behind. For lapse of time, in the case of these 
 instruments, affords no presumption of their having been paid. 
 On the contrary, their existence in other hands than those of 
 the Bank, is at least prima facie evidence of non-payment, 
 since they are never paid, and, generally speaking, payment 
 can never be enforced upon them at Law, unless they are 
 surrendered to the Promissor. Further, as already shown, a 
 new cause of action is created by each transfer, so that the 
 Statute could begin to run only from the time when the last 
 Holder came into possession.” In an article in the Money 
 Market Review for November 9, 1867, page 482, the following 
 remarks occur with reference to this subject : — “ Country Bank 
 Notes, as well as the Notes of the Bank of England, are 
 promissory Notes, payable to the bearer on demand , and as to 
 them, the promise to pay may be regarded as a promise which 
 is renewed from time to time , and every time the note changes 
 hands , and may thus be subsisting for any number of years, 
 until the Note is either cancelled or paid. The Statute of 
 Limitations must be specially pleaded, and the Banker or 
 maker of the Note, in pleading the Statute, would have to 
 plead that he had not made the promise at any time within the 
 six years, and he could not prove that plea against the evidence 
 of a Note in the hands of the Bearer, which became a new and 
 distinct promise to him the moment he became the Holder or 
 Bearer of it.” 
 
 Forgery of Bank Notes. — By the 24 & 25 Viet., c. 98, 
 s. 12 , it is enacted that to forge or alter ; or offer, utter, or 
 dispose of ; or put off, knowing the same to be forged or altered, 
 any Note or Bill of Exchange of any Banker, commonly 
 called a Bank Note ; or a Bank Bill of Exchange, or a Bank 
 Post Bill, or any endorsement or assignment of such, with 
 intent to defraud, is a felony, and it is punishable on conviction 
 
228 
 
 The Law and Practice of 
 
 by penal servitude for life, or for a term not exceeding five 
 years, or imprisonment not exceeding two years with or with- 
 out hard labour. 
 
 Purchasing or receiving forged Bank Notes, with knowledge 
 that they are forgeries, is a felony equal with uttering. It is 
 also a felony to fraudulently engrave plates of Bank Notes, or 
 to fraudulently, or without authority, manufacture Bank Note 
 paper, on which the watermark or other distinguishing 
 characteristics are imitated. 
 
 An I.O.U. (a contraction for the words “ I owe you 7 ’) is a 
 mere acknowledgment of a debt, without a promise expressed to 
 pay at any specified time. If such promise be expressed, the 
 instrument is a Promissory Note requiring the Statuteable 
 ad valorem stamp. An I.O.U. is generally made in the well- 
 known form — 
 
 John Smith , Esq . , 
 
 Dublin , ist June , 1880. 
 
 I.O.U. Twenty Pounds. 
 
 £20 
 
 John Brown . 
 
 Usually an I.O.U. expresses the date, the Creditor’s name, 
 the acknowledgment of indebtedness, the amount, and the 
 signature. A date is not absolutely necessary, as evidence is 
 admissible to prove the time the I.O.U. was made. Neither 
 is the Creditor’s name now absolutely necessary, as the 
 possession and production of the I.O.U. is prima facie evidence 
 that the Possessor is the Creditor. The words (or letters) 
 expressing indebtedness are necessary, as is also the amount ; 
 and initials may be sufficient for the Debtor’s signature. As 
 long as the instrument is no more than an acknowledgment of 
 indebtedness, it is legally an I.O.U. 
 
 An I.O.U., therefore, being a mere memorandum, and no 
 
Banking in Ireland. 229 
 
 more than an evidence of a debt, and, not coming within the 
 scope of a Bill of Exchange or Promissory Note, or an 
 agreement to pay, does not require any stamp. An I.O.U., 
 though evidence of a debt, is not evidence of money lent, and 
 if it be given for an illegal or an immoral purpose, the debt of 
 which it is evidence cannot be recovered at law. An I.O.U 
 cannot be transferred, or circulated and negotiated as a 
 Promissory Note. 
 
230 
 
 The Law and Practice of 
 
 * XVII. 
 
 SHARES AND SHAREHOLDERS . 
 
 ALL THE IRISH BANKS are Joint Stock Establishments. 
 A Joint Stock Company is a certain kind of partnership 
 entered into by a number of persons for the purpose of 
 carrying 6n some trade or business for individual profit. It 
 differs from an ordinary partnership in many respects. The 
 Members, individually, take no part in the business ; they are 
 merely those who contribute to the capital of the Company, or 
 who purchase the contributions of others. The capital is divided 
 into a number of equal portions, which are called Stock in the 
 case of the Bank of Ireland, and Shares in every other Irish 
 Bank. One or more of these Shares are held by each Member, 
 and he is entitled to a division of the profits in proportion to 
 his holding, but he can take no direct part in the management. 
 The management of the Bank is vested in a limited number of 
 Members, who are delegates of the Shareholders, and who are 
 called Directors. These are subject to the control of the 
 general body of Shareholders, or a certain majority of them, 
 exercised at proper meetings. The Directors only can bind 
 the Company, and the Directors only are liable, should the 
 Company engage in fraudulent transactions. Beyond the acts 
 and resolutions passed at duly convened meetings of the body 
 of Members in prescribed order, the Shareholders have no 
 power to bind the Company, or even to interfere in its 
 management. The capital of a mercantile firm generally 
 means the accumulated sum with which the business is 
 
Ranking in I reland. 
 
 231 
 
 commenced. But in a Bank, or other Joint Stock Companies, 
 this is usually but a portion of the amount that the Members 
 have subscribed to pay, and that they may be called on to pay. 
 The entire capital available for the business is called the 
 Subscribed Capital. Of this a portion only generally is 
 called for, in order to commence operations ; this is called the 
 Paid-up Capital, and on this amount only a dividend or 
 division of profits is paid to the Members. 
 
 In the Banks and Companies called Limited, that is, estab- 
 lished under the Limited Companies Act, the Shareholder is in 
 no event liable to be called on for more than the amount unpaid 
 or uncalled on each Share. Thus, if the Capital be ^1,000,000, 
 and it be divided into 100,000 parts, or Shares of ^10 each, 
 and if, of this ^10, half or jQ 5 only be paid up on each Share, 
 in the event of the failure or Bankruptcy of the Bank, or 
 of a further call to develope the business of the concern, the 
 Shareholder can only be called on for the balance unpaid, that is, 
 ^5 on each Share he holds, and no more, whether the amounts 
 so called should be enough to satisfy the claims against the 
 Bank or not. But in an Unlimited Bank the case is different ; 
 a Shareholder in an Unlimited Bank is primarily liable for the 
 amount remaining uncalled on his Shares, and secondarily for 
 the unsatisfied debts of the Bank, and this being so, he may 
 possibly be delivered of every atom of property he possesses. 
 But under the Banking Act of 1879, an Unlimited Company 
 can be registered as Limited, and the liability attaching to each 
 Share can be divided — a portion of it constituted an immediate 
 or primary liability, and the balance a deferred or secondary 
 liability. Thus, e.g. if the Share be ^100, and ^20 be paid- 
 up, the Company registering under the Act of 1879, limits 
 the liability to the uncalled balance of £&o per Share. 
 The constitution of the Company can then be altered so that 
 
232 
 
 The Law and Practice of 
 
 of that fS o per Share liability, ^30 only (e. g.) per Share can 
 be available for further call ; except in case of the Bankruptcy or 
 winding-up of the Establishment when the remaining ^50 per 
 Share is available for the benefit of the Creditors. The liability 
 however, in respect to Notes in circulation , does not become 
 limited by registration under this Act. 
 
 The Shares are transferable, and if the Bank be successful, 
 the Shares become of more value than the amount originally 
 paid on them. This extra value is called a premium , and is 
 regulated by the public estimate of the Shares. The Shares 
 are purchaseable on the Stock Exchange, and being freely 
 transferable, any person who can purchase can become a 
 Shareholder. The Company's assent or permission is not 
 required, nor can a Company refuse to transfer Shares to any 
 person who has purchased them. 
 
 The formation of Joint Stock Companies is regulated by Acts 
 of Parliament, — The Joint Stock Companies Acts of 1856 and 
 1857. By these it is provided that any seven or more persons 
 associated for any lawful purpose, may, by subscribing their 
 names to a memorandum of association, and registering in the 
 terms of the Act, form themselves into an incorporated company. 
 A List of the Shareholders in each Company formed under these 
 Acts, or under the Companies Act of 1862, must be furnished 
 annually to the Registrar of Joint Stock Companies, and it is 
 open to public inspection. The liability respectively of a 
 Shareholder in a Limited and an Unlimited Company has been 
 pointed out ; and in case of sale or transfer of Shares, in a 
 Limited Company, the Transferor can, in case of default or 
 failure of the Bank without actual or callable Assets, be held 
 liable for one year after he has transferred his Shares ; and 
 in case of an Unlimited Company — for three years after he has 
 transferred them ; but the liability does not extend to debts 
 
Banking in Ireland. 
 
 contracted since the transfer. The object of this law is to 
 prevent a Member divesting himself of liability, in the presence 
 and with the knowledge of a collapse, and transferring that 
 liability thus knowingly to, perhaps, indigent persons, from 
 whom, to the detriment of the Creditors, nothing could be 
 recovered. 
 
 If a company of more than twenty persons unite for trade 
 purposes, and do not register under the Acts of Parliament, 
 each Member can be sued individually for the debts of the 
 Company. 
 
 Shares in a Bank are personal property. In a Company 
 formed under the Companies Act of 1862, they are expressly 
 declared by the Act to be so ; and in Banking Companies 
 formed otherwise they are so at the Common Law. Subscribers 
 to, or Members of, a Company, obtain a Certificate of the 
 number of Shares they hold and of their name as Holder or 
 Proprietor, which is called the Scrip, and the Transferor of 
 Shares must produce and surrender this Scrip to the Company 
 upon the transfer of the Shares from his name to another. 
 Thus the possession of the Scrip is evidence of proprietorship. 
 Such Certificate or Scrip can be pledged for advances, and no 
 notice of such pledging is necessary in order to give an equitable 
 lien to the holder of it, i.e., the person with whom it has been 
 lodged as a pledge or security. 
 
 But in case of the Bankruptcy of a Shareholder who is 
 indebted to the Bank wherein he is a Proprietor, the Bank has 
 a lien on his Shares for his indebtedness, and this lien is not 
 destroyed or alienated by the fact that the Certificate is 
 deposited with another Creditor, whether that Creditor be a 
 Banker or not. But a Stockbroker entrusted with Scrip for 
 the purposes of sale of the Stock and Shares cannot pledge it 
 with his Banker for his own private debt : this would amount 
 
 Q 
 
2 34 
 
 The Law and Practice oj 
 
 to a fraudulent conversion, and on discovery of the fraud the 
 real owner of the Shares can recover them from the Bank, 
 joint Stock Banks are obliged to exhibit to a Proprietor, who 
 applies for it during business hours, the list of Shareholders, 
 and to supply him with a copy thereof, upon his paying a 
 prescribed fee. The Bank of England and Bank of Ireland, 
 however, are exempt from this provision. 
 
 By the Act known as Leeman’s Act, a contract for the 
 sale of Bank Shares will be null and void, unless the contract 
 shall set forth the numbers of the Shares, as registered in the 
 Bank Books, and if there be no such register, the name of the 
 Proprietor who is the seller ; and to insert false numbers or a 
 false name is a misdemeanor. But the act is comparatively a 
 dead letter. Its provisions are never complied with, as com- 
 pliance with them would obstruct the free sale of the Shares. 
 But any Stockbroker purchasing Bank Shares can demand 
 from the seller the numbers of the Shares and the name of the 
 Proprietor. All contracts for the sale or purchase of Shares, 
 when the value is ^5 or upwards, require a penny stamp 
 duty. Once a Purchaser has accepted a transfer, he cannot 
 repudiate the transaction, or divest himself of his liability 
 as a Shareholder, unless he has been induced to become a 
 Proprietor by false or fraudulent representations, by Directors 
 or others, as to the position, financially, of the Bank. Upon 
 a discovery that such representations are false or fraudulent, 
 he can recover the amount paid by him, from the parties 
 deceiving him. 
 
 If the name of a lawful Holder has been forged to a transfer 
 deed, and the transfer duly registered in the Books of the 
 Bank, he can compel the Purchaser, though he be a bona fide 
 Purchaser, to redeliver the shares to him, and the Bank to 
 cancel the transfer. 
 
Banking in Ireland . 
 
 235 
 
 Bank Directors are sometimes empowered by the Deed of 
 Settlement to refuse to transfer shares to a person who is not 
 of means sufficient to pay any calls unpaid, which may yet be 
 callable ; but the power is not exercised, as the exercise of it 
 would possibly involve the Bank in a suit which they could 
 not successfully maintain, so that practically and legally there 
 is no limit to the assignability of shares. Transfers are 
 effected by a Deed, in a prescribed form, the signatures of 
 Transferor and Transferee being duly witnessed. The 
 registered list of Proprietors is prima facie evidence of 
 proprietorship. 
 
 Shares can be held jointly in two or more names, but no 
 trusts are recognized, nor are Bankers compelled to regard 
 them. A Deed of Transfer to A. and B. as Trustees for C. 
 makes A. and B. the legal shareholders, with the rights and 
 liabilities attaching thereto ; and being joint Holders, survivor- 
 ship operates ; that is to say, if A. dies, B. becomes the 
 shareholder, without any act except proof of death of A. This 
 is the case if A. and B. were wife and husband. 
 
 A Married Woman can purchase shares in her own 
 name, if out of her separate estate, but she and her separate 
 estate are alone liable in case of Bankruptcy of the Bank* 
 Clergymen, though they may be shareholders, cannot be 
 Directors or Managers in a Banking Company, nor can they 
 be Partners in a private Bank. 
 
 It has been pointed out that a Bank has a lien on the 
 shares of a Member who is indebted to the Company, and 
 this doctrine is so well defined that it has been ruled that it 
 has a Lien on the Dividends on such shares also ; and further, 
 that where a Shareholder was a party to a Bill, and before the 
 maturity thereof, a transfer of his shares was presented to the 
 Bank for registration, it was held that the Bank was justified 
 
236 
 
 The Law and Practice of 
 
 in refusing to register it, the Master of the Rolls (England) 
 saying that there was a debt existing, though the remedy for 
 its recovery was suspended until the Bill had matured, and 
 was dishonoured. 
 
 Directors are Delegates chosen from the Contributors or 
 Shareholders, for the purpose of directing or managing the 
 acts or transactions of the Company, or, as it is frequently 
 expressed, “ to superintend, order, conduct, regulate, and 
 manage all the affairs and business of the Company.” 
 A certain holding of shares in the Company, which holding is 
 designated in the Articles of the Company, are the usual 
 qualifications for a seat on the Board, but a capacity to take 
 part in the management and an attentive superintendence 
 are requisite attributes of a Director. Directors can, at 
 discretion, restrict the business of a Company, but they cannot 
 extend it into paths not contemplated by, or provided in, the 
 Deed of Incorporation. A Banking Company, though a 
 Corporation, can contract otherwise than under its Seal. 
 The Companies Act of 1867 provides that a Contract to bind 
 a Company can be signed by any person acting under the 
 authority of the Company. 
 
 A Banking Company cannot purchase its own shares, nor 
 can it supply the Bank's Funds to parties for the purchase of 
 them, especially if the Bank is in a critical position ; because 
 such an action would, by creating a demand for the shares, 
 augment their market price, and thus, the act would be one to 
 deceive the Shareholders and the public; and “ no circum- 
 “ stances of embarrassment, no difficulty, can excuse portraying 
 “ in false and delusive colours, the condition of the affairs of 
 “the Bank entrusted to the charge of the Directors.”* And 
 
 In re Grant. 
 
Banking in Ireland. 
 
 237 
 
 it has been distinctly ruled that “ Directors representing, with 
 “ the intent to raise the shares of the Company in price, in 
 “ their reports, and by their Agents, that the affairs of the 
 “ Company are in a very prosperous state, and declaring large 
 “ Dividends at a time when those affairs are greatly embarrassed, 
 “ and thereby inducing a person to purchase shares, may be 
 “ made criminally responsible for their conduct ” (Grant). 
 
 Again, it is by law, a gross fraud for Directors to pay 
 a Dividend derived from other sources except the bona fide 
 profits of the Company. The declaration of a Dividend is a 
 declaration that the Company has made profits to pay it, and, 
 therefore, if a Dividend is paid which does not come out of 
 the profits,, it is a fraud, and the Directors can be punished. 
 And if a person buys shares on the strength of such represen- 
 tations, or rather misrepresentations, he has an action against 
 the Directors, and even if he have not legally suffered any 
 injury, he can, nevertheless, indict them for conspiracy. But 
 the wilful offence must be proven at the time, and a person 
 cannot avoid his purchsae or contract on such grounds because 
 subsequently a Bank stops payment, and it is discovered that 
 the previous Report was a misrepresentation; otherwise it 
 would be in the power of all purchasers to repudiate liability 
 at the time of the Company’s Bankruptcy, to the injury of the 
 Creditors. 
 
 The 24 & 25 Viet., cap. 69 deals with criminal offences 
 by Directors. To fraudulently use or appropriate the Bank’s 
 Funds to his own use ; to make or cause to be made false 
 entries ; to falsify Accounts or destroy Documents ; to publish 
 Balance Sheets, false to his knowledge in a material particular, 
 with intent to deceive ; are, if fraudulently done, misdemeanors, 
 and punishable as such. 
 
 It is further to be observed that any Bank Director who 
 
238 The Law and Practice of 
 
 traffics in the Shares of his Bank, and makes a profit thereby, 
 cannot lawfully obtain that profit, but can be compelled to 
 apply it to the uses of the Shareholders. He is in the position 
 of a Trustee, and profits made in this manner belong to the 
 cestui qite trust . Thus, if a Director, acting on special infor- 
 mation, acquired at a meeting of his Board or otherwise, buys 
 Shares in his Bank with the knowledge that, owing to a coming 
 action by the Board, these Shares will increase in value ; and 
 that he sells Shares so bought, at the enhanced price, the profit 
 he thus makes belongs lawfully not to him, but to the 
 Shareholders, and it can be recovered from him by an Equity 
 Suit. 
 
2 39 
 
 Banking in Ireland, 
 
 XV III, 
 
 GUARANTIES BY THIRD PARTIES. 
 
 BY THE celebrated Statute of Frauds passed in the reign of 
 Charles II., it is enacted by the 4 Sec. : That no action shall 
 be brought whereby to charge the defendant upon any special 
 promise to answer for the debt, default, or mis-carriage of 
 another person, unless the agreement upon which such action 
 shall be brought, or some memorandum or note thereof, shall 
 be in writing and signed by the party to be charged therewith, 
 or by some other person thereunto by him lawfully authorised. 
 
 A Guarantie is a special promise to answer for the payment 
 of another’s debt, and therefore must be in writing to sustain 
 an action upon it. Formerly, to constitute a valid Guarantie, a 
 good consideration to the Guarantor should have existed, but 
 by the 19 and 20 Vic. c. 97, sec. j, the absence of a consider- 
 ation in writing “ shall not be deemed invalid to support an 
 action.” It is evident, therefore, that a mere verbal Guar- 
 antie, agreement, or undertaking, to be liable for the debt or 
 default of another person is legally valueless. In addition 
 to being in writing it is necessary also that a Guarantie should 
 bear the statutory stamp duty requisite for an agreement. 
 
 Guaranties may be general or specific. In the latter case, 
 the terms, amount, and duration of the Guarantie are specified, 
 and any violation of the terms without the guarantor’s know- 
 ledge and consent, and which may be to his prejudice, or 
 which may amount to constituting a new agreement, will discharge 
 him. A Guarantie for a stated time, lapses, of course, on the 
 
240 
 
 The Law and Practice of 
 
 expiration of the time specified. If a Guarantie (e.g., for ^5,000) 
 be given to a Banker by A., for advances made to B., “ provided 
 they don't exceed ^5,000,” and that the Banker exceeds that 
 figure, and makes advances to the extent of ^10,000 to B., the 
 Guarantie-Bond is not vacated, but is valid to its extent, that is, 
 to ^5, 000. The reason of this is, seemingly, that it is not in a 
 Guarantor’s power to restrict the power of a Banker to make 
 advances, and if a Banker do exceed the Guarantor’s limit, he 
 does so on some security and responsibility other than the 
 Guarantie by A. A general Guarantie is of the nature of a 
 collateral and continuing security for fluctuating liabilities. 
 
 A Guarantie may be withdrawn or determined at any time 
 by the Guarantor, provided that, at the time, the withdrawal is 
 not to the prejudice of the Banker, or injurious to his interests. 
 Giving time to a Debtor who is guarantied, without the 
 assent of the Guarantor, is done at the risk of the Banker- 
 Creditor. “ Giving time” means giving indulgence more than 
 the law and the custom of Bankers prescribes, and such undue 
 indulgence, in the absence of an express stipulation, or of the 
 consent of the Guarantor, will discharge him. Taking a fresh 
 and distinct Guarantie does not absolve or discharge the old 
 surety, unless it be made and given with that intent. 
 
 A Guarantor is released if the Banker is guilty of negligence 
 or laches, which are detrimental to him, the Guarantor. 
 Guaranties should be as simple, and general, and absolute as 
 possible. Bankers should be careful to have no provisos or 
 trusts in a Guarantie, and they should remember that, in 
 obtaining a Guarantie from a party, any suppression or misre- 
 presentation on the part of the Banker of the real state of the 
 affairs of the party being guaranteed — or any concealment with 
 the intent to mislead, will render the Guarantie vitiate and 
 invalid against the Guarantor. 
 
Banking in Ireland . 241 
 
 In Guaranties made before the 29th July, 1856, it was legally 
 requisite that a good consideration should appear on the face 
 of the instrument ; but since that date (by 19 6° 20 Viet., c. 97, 
 s. 3), that necessity no- longer exists, provided that all such 
 undertakings “ be in writing, and signed by the party to be 
 “ charged therewith, or some other person by him thereunto 
 “ lawfully authorized.” 
 
242 
 
 The Law and Practice of 
 
 XIX. 
 
 THE BANKING ACT OF 1879.— CONCLUSION . 
 
 THE MOST NOTABLE event in Banking Legislation since 
 the passing of the Peel Acts, was the enactment of the statute 
 know as 44 The Banking Act of 1879,” the text °f which will be 
 found in the Appendix. It permitted a mild revolution in the 
 constitution of Joint Stock Banks, and inaugurated a method 
 whereby in Banks and all Joint Stock Companies, Shareholders 
 with unlimited liability attached to their Shareholdings could 
 limit their liability; and those in Limited Companies could 
 qualify their liability. The Act is due to the failure of the 
 City of Glasgow Bank, to the startling revelations of its 
 management, and to the ruin occasioned by its collapse, — 
 occurrences too fresh in the public mind to require a recapitu- 
 lation of the history of the wreck of that Establishment. From 
 a personal point of view the ruin which overwhelmed the mass 
 of the Shareholders convinced the public that a Share pro- 
 prietorship, to which possible beggary was linked, was not 
 desirable ; even a good dividend in the present was no 
 compensation for contingent ruin in the future ; and therefore 
 wealthy Shareholders — those who had something to lose 
 beyond their Shares — got outside the pale of a prospective 
 calamity by selling their Shares. Their places on the register 
 as Proprietors were filled by less wealthy classes ; and thus the 
 fact of a Bank being a company of unlimited liability, instead of 
 making its position stronger and its solvency more impregnable 
 
Banking in Ireland . 243 
 
 operated in the opposite direction. From a public point of 
 view then, unlimited liability did not mean unlimited security, 
 and thus, in a period of panic or financial uneasiness, the public 
 and Shareholders alike were inclined to turn away from an 
 unlimited concern. Though panics and the causes and con- 
 sequences of panics pass quickly from the public mind, yet 
 investors will not lose sight of their own responsibilities, when 
 these* responsibilities mean a possible penury. Putting aside 
 the social aspect of the failure of an unlimited Bank it would 
 become a public, — indeed, a national, — calamity, if the monied 
 classes should exclude themselves from a Shareholding- 
 connection with Banking Institutions. When the Proprietary 
 deteriorates the security to the public and the customers of the 
 Bank deteriorates also. The Act of 1879 was designed to 
 remedy the evils attached to unlimited liability, and it has 
 already been adopted by many important Establishments. 
 The effect of its operations can be adjudged to be advantageous 
 to both the Banks themselves and to their Customers. By it an 
 unlimited Company may register itself as a limited one, and 
 may increase its nominal capital ; — or may provide that a portion 
 of the uncalled capital shall be set apart, and the liability to pay 
 it be reserved — but no part of the increased capital or of the 
 reserved capital can be called up, except in the event of the 
 winding-up of the Company ; and the Company being thus 
 limited, the Shareholders have no liability beyond the nominal 
 capital. Before this Act Shareholders in an unlimited Company 
 were liable as far as their last penny. A Company already 
 limited under previous Acts of Parliament can likewise set 
 apart a portion of its uncalled capital, to be callable only in 
 the event of the Company being wound up. The limitation of 
 the liability under this Act does not extend to the liability to 
 the public on account of the Company’s Bank Notes in circu 
 
2 44 
 
 The Law and Practice of 
 
 lation. The Act ( q . v.) has further provisions for Audit, 
 intended to be a protection to the public, but of little real 
 value. It will be seen then that under this Act the Shareholders 
 can divorce themselves from unlimited liability, while the 
 security offered to' the public is not materially diminished. 
 
 The objections urged against the new Act were principally 
 that it was Panic Legislation ; that the security it offered to the 
 public was more apparent than real, while a change in the 
 constitution of the Bank, and the publication of the word 
 “ Limited, 75 as a portion of the Bank’s title, would disturb the 
 public mind, that might not fully comprehend its effect : that 
 it was impolitic to legislate for such a nervous system as the 
 Banking public because one Bank had been proven to be 
 fraudulently and incompetently managed. These arguments 
 have had but little effect, and the strongest proof of the value 
 of the Act, and of its appreciation by both Banks and public, 
 is to be found in the number of Establishments which have 
 already adopted it. On the following page is a table of the 
 Banks which have availed themselves of the Act up to the 
 present (June, 1880). 
 
 The Act, which was an improved edition of one projected 
 previously but withdrawn, though modest in aim and title, 
 contained the germs of a complete revolution. It was not 
 compulsory in its principal clauses, but merely provided that 
 unlimited Banks might re-register themselves as limited, and it 
 insisted on an audit of accounts of such as did register. The 
 change to limited liability has been thus effected in a way to 
 retain all the confidence of depositors, since in every instance 
 already adopted a very 'large reserve liability, only to be called 
 up under the terms of the Act in the event of liquidation, 
 remains. That the movement will become general may now 
 perhaps be taken for granted. 
 
Banking in Ireland. 
 
 245 
 
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 W MhmKO^'-'h M HCO 
 
 1 5,418,201 
 
 Paid-up 
 
 Capital. 
 
 £ 
 
 300.000 
 
 350.000 
 
 100.000 
 
 600.000 
 
 200.000 
 
 300.000 
 1,500,000 
 2,000,000 
 1,687,500 
 
 1 59.000 
 293,160 
 
 250.000 
 
 500.000 
 
 350.000 
 1,500,000 
 
 0 
 
 1 05 
 
 ; 00 
 1 £ 
 ! 
 
 1 2 
 
 Subscribed 
 
 Capital. 
 
 £~ 
 
 300.000 
 
 1.750.000 
 
 400.000 
 
 1.200.000 
 
 500.000 
 
 750.000 
 
 3.750.000 
 10,000,000 
 
 3, 1 12,500 
 662, 500 
 418,800 
 
 500.000 
 500,000 
 
 1,000,000 
 
 1.500.000 
 
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246 
 
 The Law and Practice of 
 
 Powerful and useful, however, as legislation of this character 
 may be, yet the best safeguard to both Shareholders and 
 Depositors in Banks lies in the appointment as Directors of men 
 of undoubted financial ability, high character, and good position. 
 Respectability without capacity is of little value, and capacity 
 without character is dangerous in the extreme. The essential 
 knowledge of Finance is not acquired in a moment, nor 
 mastered at a glance. The responsibilities of Directorship are 
 very grave. A Director is entrusted with the lending and 
 disposition of other people’s money, and as he can select those 
 to whom he lends he is under the serious duty of knowing 
 how to estimate the borrowers’ characters — which enter largely 
 into the consideration of loaning— -and of being able to judge 
 not alone of the present, but of the prospective solvency of 
 the borrower. There is also the moral duty, of which mention 
 has been made already, of employing the great sums at the 
 command of the Board in such a manner that the industrious 
 and honest will be encouraged and assisted, and the trade and 
 interests of the country developed and fostered — a duty that the 
 unwise or incompetent cannot adequately discharge. If the 
 position of Bank Director is lightly undertaken and without a 
 full sense of the necessary attributes and qualifications for 
 the post, it is possible the difficult and delicate duties may 
 be lightly discharged. The effect of the exposures of the 
 management of the City of Glasgow Bank, and of others, has 
 been to teach Shareholders that these duties are sometimes 
 neglected, and the obligations of a Directorship forgotten 
 completely. Audits and Acts of Parliament are effective as 
 far as they go, but they do not and cannot go far enough to 
 ensure perfect management ; nor yet to secure men of perfect 
 integrity and perfect ability as Directors. To effect this latter, 
 Shareholders must look to themselves rather than to 
 Parliament. 
 
APPENDIX. 
 
APPENDIX I 
 
 Joint Stock Banks of Great Britain, Number of their Branches, 
 Subscribed Capital, Paid-up Capital, and Authorised Issue. 
 
 
 
 , c/5 
 
 
 
 Author- 
 
 Bank and Year Established. 
 
 O G 
 
 Amount Sub- 
 
 Amount 
 
 ised 
 
 
 
 £ 2 
 PQ 
 
 scribed. 
 
 Paid-up. 
 
 Issue. 
 
 London Banks. 
 
 
 
 £ 
 
 £ 
 
 £ 
 
 Alliance Bank 
 
 1862 
 
 3 
 
 2,000,000 
 
 800,000 
 
 
 Bank of England ... 
 
 1694 
 
 1 1 
 
 14 , 553,000 
 
 r 4 , 553 , 000 
 
 15,000,000 
 
 C entral of London 
 
 
 5 
 
 200,000 
 
 100,000 
 
 600,000 
 
 
 City Bank {by Royal Charter ) 
 
 1855 
 
 7 
 
 1,200,000 
 
 
 Consolidated Bank {Limited) 
 
 1863 
 
 4 
 
 2,000,000 
 
 800,000 
 
 
 Imperial Bank {Limited) ... 
 
 1862 
 
 2 
 
 2,250,000 
 
 675,000 
 
 
 London and Co. Banking Co. 
 
 1836 
 
 155 
 
 3 , 750,000 
 
 1,500,000 
 
 
 London Joint Stock Bank 
 
 1836 
 
 5 
 
 4,000,000 
 
 1,200,000 
 
 
 London and Provincial . . , 
 
 1864 
 
 76 
 
 450,88c 
 
 225,440 
 
 
 London and South-Western 
 
 1862 
 
 37 
 
 1,000,000 
 
 200,000 
 
 
 London & Westminster Bank 1834 
 
 7 
 
 10,000,000 
 
 2,000,000 
 
 
 London and Yorkshire {Lim.) 
 
 13 
 
 551,000 
 
 144,739 
 
 
 Merchant Bk. Co. of London 
 
 1863 
 
 — 
 
 1,500,000 
 
 375 ,ooo 
 
 
 Midland Banking Co. (Z.) 
 
 1863 
 
 40 
 
 1,500,000 
 
 300,000 
 
 
 Natl. Provincial B. of England 1833 
 
 147 
 
 
 
 
 Do. (New, 1870) 
 
 Do. (New, 1874) 
 
 
 
 
 1 3.112,500 
 
 1,687,500 
 
 
 Union Bank of London ... 
 
 1839 
 
 4 
 
 4,500,000 
 
 1, 395 , 000 
 
 
 English Country Banks. 
 
 
 
 
 
 Adelphi Bkg. Company (Z.) 
 
 1861 
 
 1 
 
 260,220 
 
 130,110 
 
 
 Ashton, Stalybridge, Hyde & 
 
 
 
 
 
 Glossop Bank ... 
 
 1836 
 
 — 
 
 125,000 
 
 50,000 
 
 
 Bank of Bolton 
 
 1836 
 
 4 
 
 990,000 
 
 308,000 
 
 
 Bank of Liverpool 
 
 1831 
 
 
 5,000,000 
 
 625,000 
 
 
 Bank of W’moreland {Kendal) 1833 
 
 1 
 
 214,000 
 
 25,680 
 
 12,225 
 
 Bank of Whitehaven {Lim.) 
 
 1837 
 
 5 
 
 295,590 
 
 98,530 
 
 32,681 
 
 Barnsley Banking Co. 
 
 1832 
 
 1 
 
 294,800 
 
 4 7, 168 
 
 9.563 
 
 Birmingham and Midland B. 
 
 1836 
 
 3 
 
 300,000 
 
 300,000 
 
 
 Birmingham Bank ( Limited) 
 
 1866 
 
 1 
 
 1,600,000 
 
 160,000 
 
 
 a 
 
11 . 
 
 Appendix I. 
 
 Bank and Year Established. 
 
 
 No. of 
 Branches. 
 
 Amount Sub- 
 scribed. 
 
 Amount 
 
 Paid-up. 
 
 Author- 
 
 ised 
 
 Issue. 
 
 English Country Banks — Contin , 
 
 
 £ 
 
 £ 
 
 £ 
 
 Birmingham Joint Stock B. (Z.) 
 Birmingham, Dudley & District 
 
 1861 
 
 2 
 
 3,000,000 
 
 300,000 
 
 
 Banking Co. 
 
 1836 
 
 7 ( 
 
 500,000 
 
 200,000 
 
 28,160 
 
 
 Do. do. do. ,, 
 
 
 7 ( 
 
 70,400 
 
 
 Bradford Banking Co. 
 
 1827 
 
 
 680,000 
 
 408,000 
 
 49,292 
 
 Bradford Commercial Bkg. Co. 
 
 1833 
 
 — 
 
 985,000 
 
 246,250 
 
 20,084 
 
 Bradford District Bank {Limited) 
 
 1862 
 
 I 
 
 851,100 
 
 297,885 
 
 
 Bradford Old Bank {Limited) 
 Bucks & Oxon Union B. (Lim.) 
 
 1864 
 
 IO 
 
 1,061,400 
 
 424, 560 
 
 
 (Aylesbury) ... 
 
 Burton, Uttoxeter & Ashbourne 
 
 1866 
 
 8 
 
 600,000 
 
 8o ; ooo 
 
 
 Union Bank ... 
 
 1839 
 
 2 
 
 260,000 
 
 130,000 
 
 60,701 
 
 Bury Banking Co. 
 
 1836 
 
 — 
 
 200,000 
 
 120,000 
 
 
 Capital and Counties ... 
 
 1837 
 
 53 
 
 1,750,000 
 
 350,000 
 
 ... 
 
 Carlisle City and District Bank 
 
 5 
 
 200,000 
 
 100,000 
 
 19.972 
 
 Carlisle & Cumberland Bkg. Co. 
 
 1836 
 
 6 
 
 400,000 
 
 100,000 
 
 25,610 
 
 Commercial B. of Liverpool (Z.) 
 
 1832 
 
 — 
 
 700,000 
 
 350,000 
 
 County of Gloucester Bkg. Co. 
 
 1836 
 
 11 
 
 800,000 
 
 181,000 
 
 144,352 
 
 County of Stafford 
 
 
 — 
 
 120,000 
 
 60,000 
 
 9,418 
 
 Coventry Union Banking Co. 
 
 1836 
 
 1 
 
 179,200 
 
 56,000 
 
 28,734 
 
 Crompton & Evans Union (Lim, 
 Cumberland Union Banking Co. 
 
 > 
 
 7 
 
 1,000,000 
 
 200,000 
 
 
 ( Workington) 
 
 1829 
 
 21 
 
 600,000 
 
 250,000 
 
 35,395 
 
 Darlington District Banking Co. 
 
 1831 
 
 7 
 
 400,000 
 
 68,000 
 
 26,134 
 
 Derby and Derbyshire Bkg. Co. 
 Devon and Cornwall Bankg. Co. 
 
 1833 
 
 4 
 
 250,000 
 
 62, 500 
 
 20,093 
 
 (Plymouth) ... 
 
 Exchange and Discount (Leeds), 
 
 1832 
 
 22 
 
 400,000 
 
 152,000 
 
 
 (Limited) 
 
 Glamorganshire Banking Co. 
 
 1836 
 
 1 
 
 200,000 
 
 100,000 
 
 
 (Swansea) 
 
 Gloucestershire Banking Co. 
 
 6 
 
 350,650 
 
 300,000 
 
 ... 
 
 (Gloucester) ... 
 
 1831 
 
 36 
 
 1,000,000 
 
 450,000 
 
 155,920 
 
 Halifax Commercial B. Co. (Z.) 
 
 1836 
 
 3 
 
 300,000 
 
 150,000 
 
 13,733 
 
 Halifax Joint Stock Banking Co. 
 Halifax and Huddersfield Union 
 
 1829 
 
 2 
 
 500,000 
 
 200,000 
 
 > 8,534 
 
 Banking Co. 
 
 1836 
 
 1 
 
 500,000 
 
 414,525 
 
 44,137 
 
 Huddersfield Banking Co. 
 
 1827 
 
 4 
 
 1,700,000 
 
 425,500 
 
 37,354 
 
 Hull Banking Co. 
 
 1833 
 
 3 
 
 — 
 
 121,275 
 
 29,333 
 
 Knaresborough and Claro B. Co. 
 
 1831 
 
 6 
 
 230,000 
 
 42,740 
 
 28,059 
 
 Lancashire and Yorkshire (Lim,) 
 
 16 
 
 600,000 
 
 300,000 
 
 Lancaster Banking Co. 
 Leamington Priors & Warwick- 
 
 1826 
 
 21 
 
 275,000 
 
 275,000 
 
 64 , 3 H 
 
 shire Bank ... 
 
 1835 
 
 3 
 
 64,000 
 
 32,000 
 
 13,875 
 
Appendix I. 
 
 in. 
 
 Bank and Year Established. 
 
 No. of 
 Branches. 
 
 Amount 
 
 Subscribed. 
 
 Amount 
 
 Paid-up. 
 
 Author- 
 
 ised 
 
 Issue. 
 
 English Country Banks — Contin. 
 
 
 £ 
 
 £ 
 
 £ 
 
 Leeds & County Bank [Limited) 1862 
 
 5 
 
 920,000 
 
 230,000 
 
 
 Leicestershire Bg. Co. [Leicester) 1829 
 
 13 
 
 500,000 
 
 200,000 
 
 86,060 
 
 Do. Do. New Shares, 
 
 
 250,000 
 
 100,000 
 
 ... 
 
 Lincoln and Lindsey Bank ... 1833 
 
 12 
 
 326,900 
 
 114,400 
 
 51,620 
 
 Lloyds’ Banking Co. [Limited) 
 [Birmingham) ... ... 1865 
 
 43 
 
 3,000,000 
 
 480,000 
 
 
 Manchester & County Bank [L.) 1862 
 
 34 
 
 4,400,000 
 
 650,000 
 
 
 Manchester and Salford Bank 1836 
 
 16 
 
 1,750,000 
 
 700,000 
 
 
 Manchester & Liverpool District 
 Banking Co. .. . ... ... 1829 
 
 54 
 
 1,810,000 
 
 905,000 
 
 
 Manchester Joint Stock [Limited) 
 
 1 
 
 341,000 
 
 102,300 
 
 
 Moore and Robinson’s Notting- 
 hamshire Banking Co. [Lim.) 1836 
 
 
 600,000 
 
 203,800 
 
 35.813 
 
 National B. of Liverpool [Lim.) 1863 
 
 4 
 
 600,000 
 
 300,000 
 
 
 North Eastern [Limited) 
 
 26 
 
 786,500 
 
 255,950 
 
 
 Northamptonshire Banking Co. 1836 
 
 4 
 
 37 L 5 2 ° 
 
 92,880 
 
 26,401 
 
 Northamptonshire Union B. Co. 1836 
 
 4 
 
 662, 500 
 
 159,000 
 
 84, 35 6 
 
 North and South Wales Bank 
 [Liverpool) ... ... ... 1836 
 
 50 
 
 500,000 
 
 500,000 
 
 63 . 95 > 
 
 North-Western Bank [Limited) 
 [Liverpool) ... ... ... 1864 
 
 
 1,080,000 
 
 405,000 
 
 
 Nottingham Joint Stock B. (Z.) 1865 
 
 6 
 
 500 000 
 
 100,000 
 
 
 Nottingham and Notts Bkg. Co. 1834 
 Pares’ Leicestershire Bkg. Co. 1836 
 
 8 
 
 500,000 
 
 203,500 
 
 29,477 
 
 5 
 
 250,000 
 
 250,000 
 
 59 , 3 oo 
 
 Do. Do. Do. New 
 
 
 150,000 
 
 60,000 
 
 
 Parr’s Banking Co. [Limited) 1865 
 
 21 
 
 2,461,500 
 
 492,300 
 
 
 Preston Banking Co. ... ... 1844 
 
 10 
 
 100,000 
 
 100.000 
 
 180.000 
 
 
 Sheffield Union Banking Co. 1843 
 
 6 
 
 300,000 
 
 
 Sheffield & Rotherham Bkg. Co. 1836 
 
 5 
 
 502, 200 
 
 160,704 
 
 52,496 
 
 Sheffield Banking Co. ... 1831 
 
 3 
 
 418,800 
 
 293, 160 
 
 35,843 
 
 Sheffield and Hallamshire Bank 1836 
 
 
 840,000 
 
 210,000 
 
 23,524 
 
 Southport & West Lancashire (Z.) 
 
 3 
 
 500,000 
 
 150,216 
 
 Staffordshire Joint Stock Bk. (Z.) 1864 
 
 11 
 
 875,000 
 
 175,000 
 
 
 Stamford, Spalding and Boston 
 Banking Co. 1832 
 
 19 
 
 275, ooo 
 
 275,00c 
 
 55 , 72 i 
 
 Stourbridge and Kidderminster 
 Banking Co. ... ... 1834 
 
 Stuckeys’ Bkg. Co. ... ... 1826 
 
 13 
 
 250,000 
 
 100,000 
 
 56,830 
 
 39 
 
 603,800 
 
 301,900 
 
 356,976 
 
 Swaledale & Wensleydale B. Co. 
 [Richmond) ... ... ... 1836 
 
 4 
 
 400,000 
 
 63,000 
 
 54,372 
 
 Swansea [Limited) 
 
 3 
 
 574,960 
 
 201,236 
 
 Three Towns Banking Co. [Lim.) 
 
 1 
 
 100,000 
 
 50,000 
 
 
 Union B. of Birmingham [Lim.) 
 
 — 
 
 424,300 
 
 104,625 
 
 
 Union Bank of Liverpool ... 1835 
 
 1 
 
 600,000 
 
 600,000 
 
 
Appendix I. 
 
 iv. 
 
 Bank and Year Established. 
 
 
 | No. of 
 | Branches. 
 
 Amount Sub- 
 scribed. 
 
 Amount 
 
 Paid-up. 
 
 Author- 
 
 ised 
 
 Issue. 
 
 English Country Banks— Contin. 
 
 
 £ 
 
 £ 
 
 £ 
 
 Union Bank of Manchester (Z.) 
 
 1836 
 
 29 
 
 1,000,000 
 
 440,000 
 
 
 Wakefield & Barnsley Union B. 
 
 1832 
 
 2 
 
 400,000 
 
 104,000 
 
 14,604 
 
 West Riding Union Banking Co. 
 (. Huddersfield ) 
 
 1832 
 
 2 
 
 3,160,600 
 
 316,060 
 
 34,029 
 
 Whitehaven Joint Stock Bank 
 
 1829 
 
 5 
 
 300,000 
 
 45,000 
 
 31.916 
 
 Wilts and Dorset Banking Co. 
 (Salisbury) ... 
 
 1835 
 
 64 
 
 450,000 
 
 300,000 
 
 76,162 
 
 Wolverhampton & Staffordshire 
 Banking Co. ... 
 
 1832 
 
 
 
 500,000 
 
 100,000 
 
 35.378 
 
 Worcester City & County B. (Z. ) 
 
 1840 
 
 20 
 
 1,000,000 
 
 698,000 
 
 250,000 
 
 6,848 
 
 York City and County Bank ... 
 
 1830 
 
 23 
 
 174,500 
 
 94,695 
 
 Yorkshire Banking Co. (Leeds) 
 
 1843 
 
 24 
 
 500,000 
 
 250,000 
 
 122,532 
 
 York Union Banking Co. 
 
 1833 
 
 II 
 
 660,000 
 
 165,000 
 
 71,240 
 
APPENDIX II. 
 
 Statutes. 
 
 THE BANKING COPARTNERSHIPS REGVLA 
 TION ACT \ 1826. 7 Geo. 4, c. 46. 
 
 (The Act Authorising Joint Stock Banks. 
 
 An Act for the better regulating Copartnerships of certain 
 Bankers in England , and for amendmg so much of an Act 
 of the Thirty -ninth and Fortieth Years of the Reign of His 
 late Majesty King George the Third , intiHiled “ An Act for 
 establishing an Agreement with the Governor and Company 
 of the Bank of England , for advancing the Sum of Three 
 Millions towards the Supply for the Service of the Year 
 i8oof as relates to the same. [26th May, 1826.] 
 
 Whereas an act was passed in the 39th and 40th years of 
 the reign of his late Majesty King George the Third, intituled 
 ‘ * An Act for establishing an agreement with the Governor 39 & 40 Geo. 3, 
 and Company of the Bank of England, for advancing the c * 28 
 sum of three millions towards the supply for the service of 
 the year 1800;” and whereas it was, to prevent doubts as to 
 the privilege of the said governor and company, enacted and 
 declared in the said recited act, that no other bank should be 
 erected, established or allowed by parliament ; and that it 
 should not be lawful for any body politic or corporate what- 
 soever, erected or to be erected, or for any other persons 
 united or to be united in covenants or partnership, exceeding 
 the number of six persons, in that part of Great Britain called 
 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, during 
 the continuance of the said privilege to the said governor and 
 company, who were thereby declared to be and remain a 
 corporation, with the privilege of exclusive banking, as before 
 recited ; but subject nevertheless to redemption on the terms 
 and conditions in the said act specified ; and whereas the 
 Governor and Company of the Bank of England have con- 
 sented to relinquish so much of their exclusive privilege as 
 
VI, 
 
 Appendix II. 
 
 Copartnerships 
 of more than six 
 in number may 
 carry on business 
 as bankers in 
 England, 65 
 miles from 
 London, 
 provided they 
 have no 
 
 establishment as 
 bankers in 
 London, and 
 that every 
 member shall 
 be liable for the 
 payment of all 
 bills, &c. 
 
 prohibits any body politic or corporate, or any number of 
 persons exceeding six, in England, acting in copartnership, 
 from borrowing, owing or taking up any sum or sums ot 
 money on their bills or notes payable on demand, or at any 
 less time than six months from. the borrowing thereof ; pro- 
 vided that such body politic or corporate, or persons united 
 in covenants or partnerships, exceeding the number of six 
 persons in each copartnership, shall have the whole of their 
 banking establishments and carry on their business as 
 bankers at any place or places in England exceeding the dis- 
 tance of 65 miles from London, and that all the individuals 
 composing such corporations or copartnerships, carrying on 
 such business, shall be liable to and responsible for the due 
 payment of all bills and notes issued by such corporations or 
 copartnerships respectively : be it therefore enacted, &c., 
 that from and after the passing of this act it shall and may be 
 lawful for any bodies politic or corporate erected for the pur- 
 poses of banking, or for any number of persons united in 
 covenants or copartnership, although such persons so united 
 or carrying on business together shall consist of more than six 
 in number, to carry on the trade or business of bankers in 
 England, in like manner as copartnerships of bankers con- 
 sisting of not more than six persons in number may lawfully 
 do ; and for such bodies politic or corporate, or such persons 
 so united as aforesaid, to make and issue their bills or notes 
 at any place or places in England exceeding the distance of 
 65 miles from London, payable on demand, or otherwise at 
 some place or places specified upon such bills or notes, ex- 
 ceeding the distance of 65 miles from London, and not else- 
 where, and to borrow, owe or take up any sum or sums of 
 money on their bills or notes so made and issued at any such 
 place or places as aforesaid : provided always, that such cor- 
 porations or persons carrying on such trade or business of 
 bankers in copartnership shall not have any house of business 
 or establishment as bankers in London, or at any place or 
 places not exceeding the distance of 65 miles from London ; 
 and that every member of any such corporation or copartner- 
 ship shall be liable to and responsible for the due payment of 
 all bills and notes which shall be issued, and for all sums of 
 money which shall be borrowed, owed or taken up by the 
 corporation or copartnership of which such person shall be a 
 member, such person being a member at the period of the 
 date of the bills or notes, or becoming or being a member 
 before or at the time of the bills or notes being payable, or 
 
Appendix II. 
 
 V1L 
 
 being such member at the time of the borrowing, owing or 
 taking up of any sum or sums of money upon any bills or 
 notes by the corporation or copartnership, or while any sum 
 of money on any bills or notes is owing or unpaid, or at the 
 time the same became due from the corporation or copartner- 
 ship ; any agreement, covenant or contract to the contrary 
 notwithstanding. 
 
 2. Provided always, that nothing in this act contained J l ^ 0 riz e rot to 
 shall extend or be construed to extend to enable or authorize copartnerships to 
 any such corporation, or copartnership exceeding the number ji^its mentioned 6 
 of six persons, so carrying on the trade or business of bankers any bills payable 
 as aforesaid, either by any member of or person belonging to to draw^ms^ 
 any such corporation or copartnership, or by any agent or upon any 
 agents, or any other person or persons on behalf of any such resident "for’ less 
 corporation or copartnership, to issue or re-issue in London, than £50 ; 
 
 or at any place or places not exceeding the distance of 65 
 miles from London, any bill or note of such corporation or 
 copartnership, which shall be payable to bearer or demand, 
 or any bank post bill ; nor to draw upon any partner or 
 agent, or other person or persons who may be resident in 
 London, or at any place or places not exceeding the distance 
 of 65 miles from London, any bill of exchange which shall be 
 payable on demand, or which shall be for a less amount than 
 ^50 : provided also, that it shall be lawful, notwithstanding 
 anything herein or in the said recited act contained, for any 
 such corporation or copartnership to draw any bill of ex- 
 change for any sum of money amounting to the sum of £ 50 
 or upwards, payable either in London or elsewhere, at any 
 period after date or after sight. 
 
 3. Provided also, that nothing in this act contained shall b °* r °^ e 
 extend or be construed to extend to enable or authorize any U^or^issue bibs 
 such corporation, or copartnership exceeding the number of of exchange, 
 six persons, so carrying on the trade or business of bankers provisions of the 
 in England as aforesaid, or any member, agent or agents of ^ited 
 
 any such corporation or copartnership, to borrow, owe or take provided, 
 up in London, or at any place or places not exceeding the 
 distance of 65 miles from London, any sum or sums of money 
 on any bill or promissory note of any such corporation or 
 copartnership payable on demand, or at any less time than 
 six months from the borrowing thereof, nor to make or issue 
 any bill or bills of exchange or promissory note or notes of 
 such corporation or copartnership contrary to the provisions 
 of the said recited act of the 39th and 40th years of King 
 George the Third, save as provided by this act in that be- 
 
Appendix II. 
 
 viii. 
 
 Such copartner- 
 ships shall, _ 
 before issuing 
 any notes, &c., 
 deliver at the 
 stamp office in 
 London an 
 account contain- 
 ing the name of 
 the firm, &c. 
 
 half : provided also, that nothing herein contained shall ex- 
 tend, or be construed to extend, to prevent any such corpo- 
 ration or copartnership, by any agent or person authorized 
 by them, from discounting in London or elsewhere any bill 
 or bills of exchange not drawn by or upon such corporation or 
 copartnership, or by or upon any person on their behalf. 
 
 4. That before any such corporation, or copartnership 
 exceeding the number of six persons, in England, shall begin 
 to issue any bills or notes, or borrow, owe or take up any 
 money on their bills or notes, an account or return shall be 
 made out, according to the form contained in the Schedule 
 marked (A.) to this act annexed (a), wherein shall be set 
 forth the true -names, title or firm of such intended or existing 
 corporation or copartnership, and also the names and places 
 of abode of all the members of such corporation, or of all 
 the partners concerned or engaged in such copartnership, as 
 the same respectively shall appear on the books of such 
 corporation or copartnership, and the name or firm of every 
 bank or banks established or to be established by such corpo- 
 ration or copartnership, and also the names and places of abode 
 of two or more persons being members of such corporation or 
 copartnership, and being resident in England, who shall 
 have been appointed public officers of such corporation or 
 copartnership, together with the title of office or other de- 
 scription of every such public officer respectively, in the name 
 of any one of whom such corporation shall sue and be sued as 
 hereinafter provided, and also the name of every town and 
 
 (a) SCHEDULE referred to by this Act. 
 
 Schedule (A.) 
 
 Return or account to be entered at the Stamp Office 
 in London, in pursuance of an Act passed in the seventh 
 year of the reign of King George the Fourth, intituled 
 [here insert the title of this act], viz. : 
 
 Firm or name of the banking corporation or copartnership, 
 viz. [set forth the firm or name.] 
 
 Names and places of abode of all the partners concerned or 
 engaged in such corporation or copartnership, viz. [set forth 
 all the names and places of abode.] 
 
 Names and places of the bank or banks established by such 
 corporation or copartnership, viz. [set forth all the names 
 and places.] 
 
 Names and descriptions of the public officers of the said 
 banking corporation or copartnership, viz. [set forth all the 
 names and descriptions .] 
 
Appendix II ' 
 
 IX, 
 
 place where any of the bills or notes of such corporation or 
 copartnership shall be issued by any such corporation, or by 
 their agent or agents ; and every such amount or return shall 
 be delivered to the commissioners of stamps, at the stamp 
 office in London, who shall cause the same to be filed and 
 kept in the said stamp office, and an entry and registry thereof 
 to be made in a book or books to be there kept for that 
 purpose by some person or persons to be appointed by the 
 said commissioners in that behalf, and which book or books 
 any person or persons shall from time to time have liberty to 
 search and inspect on payment of the sum of i/- for every 
 search. 
 
 5. That such account or return shall be made out by the 
 secretary or other person, being one of the public officers 
 appointed as aforesaid, and shall be verified by the oath of 
 such secretary or other public officer, taken before any justice 
 of the peace, and which oath any justice of the peace is hereby 
 authorised and empowered to administer ; and that such 
 account or return shall, between the 28th day of February 
 and the 25th day of March in every year, after such corpo- 
 ration or copartnership shall be formed, be in like manner 
 delivered by such secretary or other public officer as aforesaid 
 to the commissioners of stamps, to be filed and kept in the 
 manner and for the purposes as hereinbefore mentioned. 
 
 N ames of the several towns and places where the bills or notes 
 of the said banking corporation or copartnership are to be 
 issued by the said corporation or copartnership, or their 
 agent or agents, viz. [set forth the names of all the towns 
 and places . ] 
 
 A. B. of secretary [or other officer, describing the 
 
 office ] of the above corporation or copartnership, maketh 
 oath and saith, that the above doth contain the name, 
 style, and firm of the above corporation or copartner- 
 ship, and the names and places of the abode of the 
 several members thereof, and of the banks established 
 by the said corporation or copartnership, and the 
 names, titles, and descriptions of the public officers of 
 the said corporation or copartnership, and the names 
 of the towns and places where the notes of the said 
 corporation or copartnership are to be issued, as the 
 same respectively appear in the books of the said 
 corporation or copartnership, and to the best of the 
 information, knowledge and belief of this deponent. 
 
 Sworn before me, the day of at 
 
 in the county of 
 
 C. D. justice of the peace in 
 and for the said county. 
 
 Account to be 
 verified by 
 secretary. 
 
X. 
 
 Appendix II, 
 
 Certified copies 
 of returns to be 
 evidence of the 
 appointment of 
 the public 
 officers, <fcc. 
 
 Commissioners 
 of stamps to give 
 certified copies of 
 affidavits, on 
 payment of ios. 
 
 Account of new 
 officers or mem- 
 bers in the course 
 of any year to be 
 made. 
 
 6. That a copy of any such account or return so filed or 
 kept and registered at the stamp office, as by this act is 
 directed, and which copy shall be certified to be a true copy 
 under the hand or hands of one or more of the commissioners 
 of stamps for the time being, upon proof made that such 
 certificate has been signed with the handwriting of the person 
 or persons making the same, and whom it shall not be 
 necessary to prove to be a commissioner or commissioners, 
 shall in all proceedings, civil or criminal, and in all cases 
 whatsoever, be received in evidence as proof of the appoint- 
 ment and authority of the public officers named in such 
 account or return, and also of the fact that all persons named 
 therein as members of such corporation or copartnership were 
 members thereof at the date of such account or return. 
 
 7. That the said commissioners of stamps for the time 
 being shall, and they are hereby required, upon application 
 made to them by any person or persons requiring a copy 
 certified according to this act, of any such account or return 
 as aforesaid, in order that the same may be produced in 
 evidence or for any other purpose, to deliver to the person 
 or persons so applying for the same such certified copy, he, 
 she, or they paying for the same the sum of 10/- and no 
 more. 
 
 8. Provided also, that the secretary or other officer of every 
 such corporation or copartnership shall, and he is hereby 
 required, from time to time, as often as occasion shall render 
 it necessary, make out upon oath, in manner hereinbefore 
 directed, and cause to be delivered to the commissioners of 
 stamps as aforesaid, a further account or return according to 
 the form contained in the schedule marked (B.) to this act 
 annexed (a), of the name or names of any person or persons 
 
 (a) SCHEDULE referred to by this act. 
 
 Schedule (B.) 
 
 Return or account to be entered at the Stamp Office in 
 London, on behalf of [name the corporation or copart- 
 nerships in pursuance of an act passed in the seventh 
 year of the reign of King George the Fourth, intituled 
 [insert the title of this act], viz. : 
 
 Names of any and every new or additional public officer of 
 the said corporation or copartnership, viz. 
 
 A. B. in the room of C. D. deceased or removed [as the 
 case may be] [set forth every name.] 
 
 Names of any and every person who may have ceased to be a 
 member of such corporation or copartnership, viz., [set 
 forth every name.] 
 
Appendix If. 
 
 xi. 
 
 who shall have been nominated or appointed a new or addi- 
 tional public officer or public officers of such corporation or 
 copartnership, and also of the name or names of any person 
 or persons who shall have ceased to be members of such 
 corporation or copartnership, and also of the name or names 
 of any person or persons who shall have become a member 
 or members of such corporation or copartnership, either in 
 addition to or in the place or stead of any former member or 
 members thereof, and of the name or names of any new or 
 additional town or towns, place or places, where such bills 
 or notes are or are intended to be issued, and where the same 
 are to be made payable ; and such further accounts or returns 
 shall from time to time be filed and kept, and entered and 
 registered at the stamp office in London, in like manner as is 
 hereinbefore required with respect to the original or annual 
 account or return hereinbefore directed to be made. 
 
 9. That all actions and suits, and also all petitions to found Copartnerships 
 . . . . L shall sue and be 
 
 any commission of bankruptcy against any person or persons sued in the name 
 
 who may be at any time indebted to any such copartnership °^^! s r publlc 
 carrying on business under the provisions of this act, and all 
 proceedings at law or in equity under any commission of 
 bankruptcy, and all other proceedings at law or in equity to 
 
 Names of any and every person who may bave become a new 
 member of such corporation or copartnership [set forth every 
 name.\ 
 
 Names of any additional towns or places where bills or notes 
 are to be issued, and where the same are to be made 
 payable. 
 
 A. B. of secretary [or other officer] of the above- 
 
 named corporation or copartnership, maketh oath and 
 saith, that the above doth contain the name and place 
 of abode of any and every person who hath become or 
 been appointed a public officer of the above corpora- 
 tion or copartnership, and also the name and place of 
 abode of any and every person who hath ceased to be 
 a member of the said corporation or copartnership, 
 and of any and every person who hath become a 
 member of the said copartnership since the registry of 
 the said corporation or copartnership on the day of 
 last, as the same respectively appear on the books 
 of the said corporation or copartnership, and to the 
 best of the information, knowledge, and belief of this 
 deponent. 
 
 Sworn before me, the day of at 
 
 in the county of 
 
 C. D. justice of the peace in 
 and for the said county. 
 
xn. 
 
 Appendix II. 
 
 be commenced or instituted for or on behalf of any such 
 copartnership against any person or persons, bodies politic 
 or corporate, or others, whether members of such copartner- 
 ship or otherwise, for recovering any debts or enforcing any 
 claims or demands due to such copartnership, or for any other 
 matter relating to the concerns of such copartnership, shall, 
 and lawfully may, from and after the passing of this act, be 
 commenced or instituted and prosecuted in the name of any 
 one of the public officers nominated as aforesaid for the time 
 being of such copartnership, as the nominal plaintiff or 
 petitioner for and on behalf of such copartnership ; and that 
 all actions or suits, and proceedings at law or in equity, to be 
 commenced or instituted by any person or persons, bodies 
 or corporate, or others, whether members of such copartner- 
 ship or otherwise, against such copartnership, shall and 
 lawfully may be commenced, instituted and prosecuted against 
 any one or more of the public officers nominated as aforesaid 
 for the time being of such copartnership, as the nominal 
 defendant for and on behalf of such copartnership ; and that 
 all indictments, informations and prosecutions by or on behalf 
 of such copartnership, for any stealing or embezzlement of 
 any money, goods, effects, bills, notes, securities, or other 
 property of or belonging to such copartnership, or for any 
 fraud, forgery, crime, or offence committed against or with 
 intent to injure or defraud such copartnership, shall and 
 lawfully may be had, preferred and carried on in the name 
 of any one of the public officers nominated as aforesaid for 
 the time being of such copartnership ; and that in all indict- 
 ments and informations to be had or preferred by or on behalf 
 of such copartnership against any person or persons whom- 
 soever, notwithstanding such person or persons may happen 
 to be a member or members of such copartnership, it shall be 
 lawful and sufficient to state the money, goods, effects, bills, 
 notes, securities, or other property of such copartnership, to 
 be the money, goods, effects, bills, notes, securities, or other 
 property of any one of the public officers nominated as afore- 
 said for the time being of such copartnership ; and that any 
 forgery, fraud, crime, or other offence committed against or 
 with intent to injure or defraud any such copartnership, shall 
 and lawfully may in such indictment or indictments, notwith- 
 standing as aforesaid, be laid or stated to have been 
 committed against or with intent to injure or defraud any one 
 of the public officers nominated as aforesaid for the time 
 being of such copartnership ; and any offender or offenders 
 
Appendix //. xiii. 
 
 may thereupon be lawfully convicted for any such forgery, 
 fraud, crime or offence ; and that in all other allegations, 
 indictments, informations, or other proceedings of any kind 
 whatsoever, in which it otherwise might or would have been 
 necessary to state the names of the persons composing such 
 copartnership, it shall and may be lawful and sufficient to 
 state the name of any one of the public officers nominated as 
 aforesaid for the time being of such copartnership ; and the 
 death, resignation, removal, or any act of such public officer, 
 shall not abate or prejudice any such action, suit, indictment, 
 information, prosecution or other proceeding commenced 
 against or by or on behalf of such copartnership, but the same 
 may be continued, prosecuted and carried on in the name of 
 any other of the public officers of such copartnership for the 
 time being. 
 
 10. That no person or persons, or body or bodies politic Not more than 
 or corporate, having or claiming to have any demand upon rec overy of one 
 or against any such corporation or copartnership, shall bring demand, 
 more than one action or suit, in case the merits shall have 
 
 been tried in such action or suit, in respect of such demand ; 
 and the proceedings in any action or suit, by or against any 
 one of the public officers nominated as aforesaid for the time 
 being of any such copartnership, may be pleaded in bar of 
 any other action or actions, suit or suits, for the same demand, 
 by or against any other of the public officers of such 
 copartnership. 
 
 11. That all and every decree or decrees, order or orders, Decrees of a 
 
 made or pronounced in any suit or proceeding in any court agaiL° f the Ulty 
 of equity against any public officer of any such copartner- public officer to 
 ship carrying on business under the provisions of this act, the 
 
 shall have the like effect and operation upon and against the copartnership, 
 property and funds of such copartnership, and upon and 
 
 against the persons and property of every or any member or 
 members thereof, as if every or any such members of such 
 copartnership were parties members before the court to and 
 in any such suit or proceeding ; and that it shall and may be 
 lawful for any court in which such order or decree shall have 
 been made, to cause such order and decree to be enforced 
 against every or any member of such copartnership, in like 
 manner as if every member of such copartnership were parties 
 before such court to and in such suit or proceeding, and 
 although all such members are not before the court. 
 
 12 That all and every judgment and judgments, decree or judgments 
 decrees, which shall at any time after the passing of this act a s ainst such 
 
xiv. 
 
 Appendix II. 
 
 public officer 
 shall operate 
 against the 
 copartnership. 
 
 Execution upon 
 judgment may be 
 issued against 
 any membe 
 of the 
 
 copartnership 
 
 be had or recovered or entered up as aforesaid, in any action, 
 suit, or proceedings in law or equity against any public 
 officer of any such copartnership, shall have the like effect 
 and operation upon and against the property of such co- 
 partnership, and upon and against the property of every such 
 member therereof as aforesaid, as if such judgment or 
 judgments had been recovered or obtained against such 
 copartnership ; and that the bankruptcy, insolvency, or 
 stopping payment of any such public officer for the time 
 being of such copartnership, in his individual character or 
 capacity shall not be nor be construed to be the bankruptcy, 
 insolvency, or stopping payment, of such copartnership ; and 
 that such copartnership, and every member thereof, and 
 the capital stock and effects of such copartnership, and the 
 effects of every member of such copartnership, shall in all 
 cases, notwithstanding the bankruptcy, insolvency, or stop- 
 ping payment of any such public officer, be attached and 
 attachable, and be in all respects liable to the lawful claims 
 and demands of the creditor and creditors of such copartner- 
 ship, or of any member or members thereof, as if no 
 such bankruptcy, insolvency, or stopping payment of such 
 public officer of such copartnership had happened or taken 
 place. 
 
 13. That execution upon any judgment in any action 
 obtained against any public officer for the time being of any 
 such corporation or copartnership carrying on the business of 
 banking under the provisions of this act, whether as plaintiff 
 or defendant, may be issued against any member or members 
 for the time being of such corporation or copartnership ; and 
 that in case any such execution against any member or 
 members for the time being of any such corporation or 
 copartnership shall be ineffectual for obtaining payment and 
 satisfaction of the amount of such judgment, it shall be lawful 
 for the party or parties so having obtained judgment against 
 such public officer for the time being, to issue execution 
 against any person or persons who was or were a member or 
 members of such corporation or copartnership at the time 
 when the contract or contracts or engagement or engagements 
 in which such judgment may have been obtained was or were 
 entered into, or became a member at any time before such 
 contracts or engagements were executed, or was a member 
 at the time of the judgment obtained : provided always, that 
 no such execution as last mentioned shall be issued without 
 leave first granted, on motion in open court, by the court in 
 
Appendix II. 
 
 xv. 
 
 which such judgment shall have been obtained, and when 
 motion shall be made on notice to the person or persons 
 sought to be charged, nor after the expiration of three years 
 next after any such person or persons shall have ceased to be 
 a member or members of such corporation or copartnership. 
 
 14. Provided always, that every such public officer in whose 
 name any such suit or action shall have been commenced, 
 prosecuted, or defended, and every person or persons against 
 whom execution upon any judgment obtained or entered up 
 as aforesaid in any such action shall be issued as aforesaid, 
 shall always be reimbursed and fully indemnified for all loss, 
 damages, costs, and charges, without deduction, which any 
 such officer or person may have incurred by reason of such 
 execution, out of the funds of such copartnership, or in 
 failure thereof, by contribution from the other members of 
 such copartnership, as in the ordinary cases of copartnership. 
 
 15. And to prevent any doubts that might arise whether the 
 said governor and company, under and by virtue of their 
 charter, and the several acts of parliament which have been 
 made and passed in relation to the affairs of the said governor 
 and company, can lawfully carry on the trade or business of 
 banking, otherwise than under the immediate order, manage- 
 ment and direction of the court of directors of the said 
 governor and company ; be it therefore enacted, that it shall 
 and may be lawful for the said governor and company to 
 authorize and empower any committee or committees, agent 
 or agents, to carry on the trade and business of banking, for 
 and on behalf of the said governor and company, at any place 
 or places in that part of the united kingdom called England, 
 and for that purpose to invest such committee or committees, 
 agent or agents, with such powers of management and super- 
 intendence, and such authority to appoint cashiers and other 
 officers and servants as may be necessary or convenient for 
 carrying on such trade and business as aforesaid ; and for the 
 same purpose to issue to such committee or committees, 
 agent or agents, cashier or cashiers, or other officer or officers, 
 servant or servants, cash, bills of exchange, bank post bills, 
 bank notes, promissory notes, and other securities for pay- 
 ment of money ; provided always, that all such acts of the 
 said governor and company shall be done and exercised in 
 such manner as may be appointed by any bye-laws, constitu- 
 tions, orders, rules, and directions from time to time hereafter 
 to be made by the general court of the said governor and 
 company in that behalf, such bye-laws not being repugnant 
 
 Officer, &c., in 
 such cases 
 indemnified. 
 
 Governor and 
 Company of the 
 Bank of England 
 may empower 
 agents to carry 
 on banking 
 business at any 
 place in 
 England. 
 
XVI. 
 
 Appendix ll. 
 
 to the laws of that part of the united kingdom called 
 England ; and in all cases where such bye-laws, constitutions, 
 orders, rules, or directions of the said general court shall be 
 wanting, in such manner as the governor, deputy-governor, 
 and directors, or the major part of them assembled, whereof 
 the said governor or deputy-governor is always to be one, 
 shall or may direct, such directions not being repugnant 
 to the laws of that part of the united kingdom called 
 England ; anything in the said charter or acts of parliament, 
 or other law, usage, matter, or thing to the contrary thereof 
 notwithstanding : provided always, that in any place where 
 the trade and business of banking shall be carried on for and 
 on behalf of the said governor and company of the Bank of 
 England, any promissory note issued on their account in such 
 place shall be made payable in coin in such place as well as 
 in London. 
 
 Copartnerships 16. That if any corporation or copartnership carrying on 
 unstamped notes, trade or business of bankers under the authority of this 
 
 on giving bond, act shall be desirous of issuing and re-issuing notes in the 
 nature of bank notes, payable to the bearer on demand, 
 without the same being stamped as by law is required, it shall 
 be lawful for them so to do on giving security by bond to his 
 Majesty, his heirs and successors, in which bond two of the 
 directors, members, or partners of such corporation or 
 copartnership, shall be the obligors, together with the cashier 
 or cashiers, or accountant or accountants employed by such 
 corporation or copartnership, as the said commissioners of 
 stamps shall require ; and such bonds shall be taken in such 
 reasonable sums as the duties may amount unto during the 
 period of one year, with condition to deliver to the said 
 commissioners of stamps, within 14 days after the 5th day of 
 January, the 5th day of April, the 5th day of July, and the 
 10th day of October, in every year, whilst the present stamp 
 duties shall remain in force, a just and true account, verified 
 upon the oaths or affirmations of two directors, members, or 
 partners of such corporation or copartnership, and of the 
 said cashier or cashiers, accountant or accountants, or such 
 of them as the said commissioners of stamps shall require, 
 such oaths or affirmations to be taken before any justice of 
 the peace, and which oaths or affirmations any justice of 
 the peace is hereby authorized and empowered to administer, 
 of the amount or value of all their promissory notes in circu- 
 lation on some given day in every week, for the space of one 
 quarter of a year prior to the quarter day immediately 
 
Appendix II, 
 
 XVII. 
 
 preceding the delivery of such account, together with the 
 average amount of value thereof according to such account ; 
 and also to pay or cause to be paid into the hands of the 
 receivers general of stamp duties in Great Britain, as a 
 composition for the duties which would otherwise have been 
 payable for such promissory notes issued within the space of 
 one year, the sum of 7s. for every ^100, and also for the 
 fractional part of ^100 of the said average amount or value 
 of such notes in circulation, according to the true intent and 
 meaning of this act ; and on due performance thereof such 
 bond shall be void ; and it shall be lawful for the said com- 
 missioners to fix the time or times of making such payment, 
 and to specify the same in the condition to every such bond ; 
 and every such bond may be required to be renewed from 
 time to time, at the discretion of the said commissioners or 
 the major part of them, and as often as the same shall be 
 forfeited, or the party or parties to the same, or any of them, 
 shall die, become bankrupt or insolvent, or reside in parts 
 beyond the seas. 
 
 17. Provided always, that no such corporation or co- No corporat i on 
 partnership shall be obliged to take out more than four compelled to 
 licences for the issuing of any promissory notes for money [hanfour™ 1 ^ 
 payable to the bearer on demand, allowed by law to be licences, 
 re-issued in all for any number of towns or places in England ; 
 
 and in case any such corporation or copartnership shall issue 
 such promissory notes as aloresaid, by themselves or their 
 agents, at more than four different towns or places in 
 England, then after taking out three distinct licences for three 
 of such towns or places, such corporation or copartnership, 
 shall be entitled to have all the rest of such towns or places 
 included in a fourth licence. 
 
 18. That if any such corporation or copartnership exceed- Penalty on 
 ing the number of six persons in England, shall begin to negSting^to 
 issue any bills or notes, or to borrow, owe, or take up any send returns, 
 money on their bills or notes, without having caused such ^ 500 ’ 
 account or return as aforesaid to be made out and deliver in 
 
 the manner and form directed by this act, or shall neglect or 
 
 omit to cause such account or return to be renewed yearly 
 
 and every year between the days or times hereinbefore 
 
 appointed for that purpose, such corporation or copartnership 
 
 so offending shall, for each and every week they shall so 
 
 neglect to make such account and return, forfeit ^500 ; and Penalties for 
 
 if any secretary or other officer of such corporation or faIse 
 
 copartnership shall make out or sign any false account 
 
 b 
 
xviii. 
 
 False oath per- 
 jury. 
 
 Penalty on co- 
 partnership for 
 issuing bills 
 payable on 
 demand ; 
 
 or drawing bills 
 of exchange pay- 
 able on demand, 
 or lor less than 
 
 £50 ; 
 
 or borrowing 
 money on bills, 
 except as herein 
 provided. 
 
 Appendix II. 
 
 or return or any account or return which shall not truly set 
 forth all the several particulars by this act required to be 
 contained or inserted in such account or return, the corpora- 
 tion or copartnership to which such secretary or other 
 officer so offending shall belong shall for every such offence 
 forfeit the sum of ^500, and the said secretary or other 
 officer so offending shall also for every such offence forfeit 
 the sum of ^"ioo; and if any such secretary or other officer 
 making out or signing any such account or return as afore- 
 said, shall knowingly or wilfully make a false oath of or 
 concerning any of the matters to be therein specified and 
 set forth, every such secretary or other officer so offending 
 and being thereof lawfully convicted, shall be subject and 
 liable to such pains and penalties as by any law now in 
 force persons convicted of wilful and corrupt perjury are 
 subject and liable to. 
 
 19. That if any such corporation or copartnership exceed- 
 ing the number or six persons, so carrying on the trade or 
 business of bankers as aforesaid, shall, either by any member 
 of or person belonging to any such corporation or copartner- 
 ship, or by any agent or agents, or any other person or 
 persons on behalf of any such corporation or copartnership, 
 issue or re-issue in London, or at any place or places not 
 exceeding the distance of 65 miles from London, any bill 
 or note of such corporation or copartnership which shall be 
 payable on demand ; or shall draw upon any partner or 
 agent or other person or persons who may be resident in 
 London, or at any place or places not exceeding the distance 
 of 65 miles from London, any bill of exchange which shall 
 be payable on demand, or which shall be for a less amount 
 than fifty pounds ; or if any such corporation or copartner- 
 ship exceeding the number of six persons, so carrying on the 
 trade or business of bankers in England as aforesaid, or any 
 member, agent or agents of any such corporation or co- 
 partnership, shall borrow, owe, or take up in London, or at 
 any place or places not exceeding the distance of 65 miles 
 from London, any sum or sums of money on any bill or 
 promissory note of any such corporation or copartnership 
 payable on demand, or at any less time than six months from 
 the borrowing thereof, or shall make or issue any bill or 
 bills of exchange or promissory note or notes of such corpora- 
 tion or copartnership contrary to the provisions of the said 
 recited act of the 39th and 40th years of King George the 
 Third, save as provided by this act, such corporation or 
 
Appendix II. 
 
 xix. 
 
 copartnership so offending or on whose account or behalf 
 any such offence as aforesaid shall be committed, shall for 
 every such offence forfeit the sum of £$o. 
 
 20. Provided also, that nothing in this act contained shall 
 extend or be construed to extend to prejudice, alter, or affect 
 any of the rights, powers, or privileges of the said Governor 
 and Company of the Bank of England ; except as the said 
 exclusive privilege of the said governor and company is by 
 this act specially altered and varied. 
 
 21. That all pecuniary penalties and forfeitures imposed by 
 this act shall and may be sued for and recovered in his 
 Majesty's Court of Exchequer at Westminster , in the same 
 manner as penalties incurred under any act or acts relating 
 to stamp duties may be sued for and recovered in such court. 
 (Repealed by 36 & 37 Viet. c. 91). 
 
 THE COMPANIES ACT , , 1862 , SO PAP AS APPLE 
 CABLE TO BANNS. 25 & 26 Vict., c. 89. 
 
 An Act for the Incorporation , Regulation and Winding-up 
 of Trading Companies and their Associations. 
 
 [7th August, 1862.] 
 
 1. This act may be cited for all purposes as “ The Com- 
 panies Act, 1862.” 
 
 2. This act . shall not come into operation until 
 
 the 2nd day of November, 1862, and the time at which it 
 comes into operation is referred to as the commencement of 
 this act. 
 
 4. No company, association or partnership consisting of 
 more than 10 persons shall be formed, after the commence- 
 ’ ment of this act, 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 parlia- 
 ment, or of letters-patent. 
 
 44. Every limited banking company . . . shall, 
 
 before it commences business, and also on the first Monday 
 in February and 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 ( a) y or as near thereto 
 
 [a) Form (D.) is as follows : — 
 
 The capital of the company is divided into 
 each. 
 
 Not to affect the 
 rights of Bank 
 of England, 
 except as herein 
 specially altered. 
 
 Penalties, how 
 recovered. 
 
 Short title. 
 
 Commencement 
 of act. 
 
 Prohibition of 
 partnerships 
 exceeding 
 certain number. 
 
 Certain com- 
 panies to publish 
 statement 
 entered in 
 schedule. 
 
 shares of 
 
XX. 
 
 Appendix II. 
 
 as circumstances 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 in this section, the 
 company shall be liable to a penalty not exceeding £$ for 
 every day during which such default continues, and every 
 director and manager of the company who shall knowingly 
 and wilfully authorize or permit such default shall incur the 
 Repeal of acts. like penalty. Every member, and every creditor of the 
 company, shall be entitled to a copy of the above-mentioned 
 statement on payment of a sum not exceeding 6d. 
 
 205. After the commencement of this act there shall be re- 
 pealed the several acts specified in the first part of the third *> 
 schedule hereto, with this qualification, that so much of the 
 said acts as is set forth in the second part of the said third 
 schedule shall be hereby re-enacted and continued in force 
 as if unrepealed. 
 
 SALE AND PURCHASE OF SHAPES IN JOINT 
 STOCK BANKING COMPANIES . 30 Vict. c. 29. 
 
 (Leeman’s Act.) 
 
 An Act to amend the Law in respect of the Sale and Purchase 
 of Shares in Joint Stock Banking Co?npanies. 
 
 [17th June, 1867.] 
 
 Whereas it is expedient to make provision for the 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 : be it enacted, 
 
 &c. 
 
 The number of shares issued is 
 
 Calls to the amount of pounds per share have been made, 
 under which the sum of pounds has been received. 
 
 The liabilities of the company on the first day of January (or 
 July) 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, £ 
 
Appendix II. 
 
 XXL 
 
 I. That all contracts, agreements, and tokens of sale and Contracts for 
 
 Sell 6, &C of* 
 
 purchase which shall, from and after the ist day of July, shares to’ be void 
 1867, be made or entered into for the sale or transfer, or JJ^^the 
 purporting to be for the sale or transfer, of any share or which such 
 
 shares, or of any stock or other interest, in any joint stock shares are dis- 
 11- . , TT . , Tr . , r U _ . . tinguished are 
 
 banking company in the United Kingdom of Great Britain set forth in con- 
 
 and Ireland constituted under or regulated by the provisions tract - 
 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 purposes 
 whatsoever, unless such contract, agreement, or other token 
 shall set forth and designate in writing such shares, stock, or 
 interest by the respective numbers by which the same are 
 distinguished at the making of such contract, agreement, or 
 token on the register or books of such banking company as 
 aforesaid, or where there is no such register of shares or 
 stock by distinguishing numbers, 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 accord- 
 ingly, and, if in Scotland, shall be guilty of an offence 
 punishable by fine or imprisonment. 
 
 2 . Joint stock banking companies shall be bound to show Registered shar - 
 
 their list of shareholders to any registered shareholder during may see 
 
 business hours, from ten of the clock to four of the clock. 
 
 3. This act shall not extend to shares or stock in the Bank Extent of act 
 
 of England or the Bank of Ireland. limited. 
 
 COMPANIES ACTS AMENDMENT. 40 & 41 Vict. 
 c. 26. 
 
 (Reduction of Capital.) 
 
 An Act to amend the Companies Act of 1862 and 1867. 
 
 [23rd July, 1877.] 
 
 Whereas doubts have been entertained whether the power 
 given by the Companies Act, 1867, to a company of reducing 3o an( j 
 its capital extends to paid-up capital, and it is expedient to c. 131. 
 remove such doubts : 
 
Appendix II. 
 
 XXII. 
 
 Short title. 
 
 Construction of 
 Act. 
 
 25 and 26 Vic. 
 c. 89. 
 
 30 and 31 Vic. 
 c. 131. 
 
 Construction 
 of ‘ ‘ capital ” 
 and powers to 
 reduce capital 
 contained in 
 30 and 31 Vic. 
 c. 131. 
 
 Application 
 of provisions of 
 30 and 31 Vic. 
 c. 131. 
 
 30 and 31 Vic. 
 c. 131. 
 
 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 as- 
 sembled, and by the authority of the same, as follows : 
 
 1. This Act may be cited for all purposes as the Com- 
 panies Act, 1867. 
 
 2. This Act shall, so far as is consistent with the tenor 
 thereof, be construed as one with the Companies Acts, 1862 
 and 1867, and the said Acts and this Act may be referred to 
 as “ The Companies Acts, 1862, 1867, and 1877.” 
 
 3. The word “capital” as used in the Companies Act, 
 1867, shall include paid-up capital ; and the power to reduce 
 capital conferred by that Act shall include a power to cancel 
 any lost capital, or any capital unrepresented by available 
 assets, or to pay off any capital which may be in excess of 
 the wants of the company ; and paid-up capital may be 
 reduced either with or without extinguishing or reducing the 
 liability (if any) remaining on the shares of the company, 
 and to the extent to which such liability is not extinguished 
 or reduced it shall be deemed to be preserved, notwith- 
 standing anything contained in the Companies Act, 1867. 
 
 4. The provisions of the Companies Act, 1867, as amended 
 by this Act, shall apply to any company reducing its capital 
 in pursuance of this Act and of the Companies Act, 1867, 
 as amended by this Act : 
 
 Provided that where the reduction of the capital of a com- 
 pany does not involve either the diminution of any liability 
 in respect of unpaid capital or the payment to any share- 
 holder of any paid-up capital. 
 
 (1.) ’The creditors of the company shall not, unless the 
 Court otherwise direct, be entitled to object or 
 required to consent to the reduction ; and 
 
 (2.) It shall not be necessary before the presentation of 
 the petition for confirming the reduction to add, 
 and the Court may, if it thinks it expedient so to 
 do, dispense altogether with the addition of, the 
 words “ and reduced,” as mentioned in the Com- 
 panies Act; 1867. 
 
 In any case that the Court thinks fit so to do, it may 
 require the company to publish in such manner as it thinks 
 fit the reasons for the reduction of its capital or such other 
 information in regard to the reduction of its capital as the 
 Court may think expedient with a view to give proper infor- 
 mation to the public in relation to the reduction of its capital 
 
Appendix II. xxiii. 
 
 by a company, and, if the Court thinks fit, the causes which 
 led to such reduction. 
 
 The minute required to be registered in the case of reduc- 
 tion of capital shall show, in addition to the other particulars 
 required by law, the amount (if any) at the date of the 
 registration of the minute proposed to be deemed to have 
 been paid up on each share. 
 
 5. Any company limited by shares may so far modify the p ower to 
 conditions contained in its memorandum of association, if reduce capital 
 authorized so to do by its regulations as originally framed or i^io^crf unissued 
 as altered by special resolution, as to reduce its capital by shares, 
 cancelling any shares which, at the date of the passing of 
 
 such resolution, have not been taken or agreed to be taken 
 by any person ; and the provisions of “ The Companies Act, 
 
 1867,” shall not apply to any reduction of capital made in 
 pursuance of this section. 
 
 6. And whereas it is expedient to make provision for the Reception of 
 
 reception as legal evidence of certificates of incorporation certified copies 
 
 . . ... . r . . ..... r ot documents as 
 
 other than the original certificates, and 01 certified copies of legal evidence. 
 
 or extracts from any documents filed and registered under ^ ^ 26 Vlct - 
 the Companies Acts, 1862 to 1877 '• Be it enacted, that any 30& 31 Viet, 
 certificate of the incorporation of any company given by the y lct 
 
 registrar or by any assistant registrar for the time being c. 26. 
 shall be received in evidence as if it were the original 
 certificate ; and any copy of or extract from any of 
 the documents or part of the documents kept and 
 registered at any of the offices for the registration of joint 
 stock companies in England, Scotland, or Ireland, if duly 
 certified to be a true copy under the hand of the registrar or 
 one of the assistant registrars for the time being, and whom 
 it shall not be necessary to prove to be the registrar or assis- 
 tant registrar, shall, in all legal proceedings, civil or criminal, 
 and in all cases whatsoever, be received in evidence as of 
 equal validity with the original document. 
 
 BANKING AND JOINT STOCK COMPANIES 
 BILL (1879). 
 
 A Bill intituled an Act to amend the Law with respect to 
 the Liability of Members of Banking and other Joint Stock 
 Companies ; and for other purposes : — 
 
 Be it enacted by the Queen’s most excellent Majesty, by 
 and with the advice and consent of the Lords Spiritual and 
 
xxiv. 
 
 Appendix II. 
 
 Short title. 
 
 Construction 
 of Act. 
 
 Registration 
 anewofunlimi- 
 ted company as 
 limited company. 
 
 Capital of un- 
 limited company 
 assenting to 
 register as a 
 limited company. 
 
 Temporal, and Commons, in this present Parliament as- 
 sembled, and by the authority of the same as follows : — 
 
 1. This Act may be cited as the Companies Act, 1879. 
 
 2. This Act shall not apply to the Bank of England. 
 
 3. This Act shall, so far as is consistent with the tenor 
 thereof, be construed as one with the Companies Acts, 1862, 
 1867, and 1877, and those Acts together with this Act may 
 be referred to as the Companies Acts, 1862 to 1879. 
 
 4. Subject as in this Act mentioned, any company regis- 
 tered before or after the passing of this Act as an unlimited 
 company may register under the Companies Acts, 1862 to 
 1879, as a limited company, or any company already 
 registered as a limited company, may re-register under the 
 provisions of this Act. 
 
 The registration of an unlimited company as a limited 
 company in pursuance of this Act shall not affect or prejudice 
 any debts, liabilities, obligations, or contracts incurred or 
 entered into by, to, with, or on behalf of such company prior 
 to registration, and such debts, liabilities, contracts, and 
 obligations may be enforced in manner provided by Part 
 VII. of the Companies Act, 1862, in the case of a company 
 registering in pursuance of that Part. 
 
 5. An unlimited company may, by the resolution passed by 
 the members when assenting to registration as a limited 
 company under the Companies Acts, 1862 to 1879, a nd for 
 the purpose of such registration or otherwise, increase the 
 nominal amount of its capital by increasing the nominal 
 amount of each of its shares. 
 
 Provided always, that no part of such increased capital 
 shall be capable of being called up, except in the event of 
 and for the purpose of the company being wound up. 
 
 And, in cases where no such increase of nominal capital 
 may be resolved upon, an unlimited company may, by such 
 resolution as aforesaid, provide that a portion of its uncalled 
 capital shall not be capable of being called up, except in the 
 event of and for the purpose of the company being wound 
 
 up. 
 
 A limited company may by a special resolution declare 
 that any portion of its capital which has not been already 
 called up shall not be capable of being called up, except in 
 the event of and for the purpose of the company being wound 
 up ; and thereupon such portion of capital shall not be 
 capable of being called up, except in the event of, and for 
 the purposes of the company being wound up. 
 
Appendix IT. 
 
 XXV. 
 
 6. §ection one hundred and eighty-two of the Companies 
 Act, 1862, is hereby repealed, and in place thereof it is 
 enacted as follows : — A bank of issue registered as a limited 
 company, either before or after the passing of this Act, shall 
 not be entitled to limited liability in respect of its notes ; and 
 the members thereof shall continue liable in respect of its 
 notes in the same manner as if it had been registered as an 
 unlimited company ; but in case the general assets of the 
 company are, in the event of the company being wound up, 
 insufficient to satisfy the claims of both the noteholders and 
 the general creditors, then the members, after satisfying the 
 remaining demands of the noteholders, shall be liable to 
 contribute towards payment of the debts of the general 
 creditors, a sum equal to the amount received by the note- 
 holders out of the general assets of the company. 
 
 For the purposes of this section the expression “the 
 general assets of the company” means the funds available for 
 payment of the general creditor as well as the noteholder. 
 
 It shall be lawful for any bank of issue registered as a limited 
 company, to make a statement on its notes to the effect that 
 the limited liability does not extend to its notes, and that the 
 members of the company continue liable in respect of its notes 
 in the same manner as if it had been registered as an unlimited 
 company. 
 
 7. (1.) Once at the least in every year the accounts of every 
 banking company registered after the passing of this Act as a 
 limited company, shall be examined by the auditor or auditors 
 who shall be elected annually by the company in general 
 meeting. 
 
 (2. ) A director or officer of the company shall not be capable 
 of being elected auditor of such company. 
 
 (3.) An auditor on quitting office shall be re-eligible. 
 
 (4.) If any casual vacancy occurs in the office of any auditor 
 the surviving auditor or auditors (if any) may act, but if there 
 is no surviving auditor, the directors shall forthwith call an 
 extraordinary general meeting for the purpose of supplying 
 the vacancy or vacancies in the auditorship. 
 
 (5.) Every auditor shall have a list delivered to him of all 
 books kept by the company, and shall at all reasonable times 
 have access to the books and accounts of the company; and 
 any auditor may, in relation to such books and accounts, ex* 
 amine the directors or any other officer of the company, pro- 
 vided that if a banking company has branch banks beyond the 
 limits of Europe, it shall be sufficient if the auditor is allowed 
 
 Unlimited 
 liability of Bank 
 of Issue in re- 
 spect of notes. 
 
 Audit of accounts 
 of banking com- 
 panies. 
 
XXVI. 
 
 Appendix II. 
 
 Signature of 
 balance sheet 
 
 Privileges of 
 available not- 
 withstanding 
 constitution c 
 company. 
 
 access to such copies of and extracts from the books and 
 accounts of any such branch as may have been transmitted to 
 the head office of the banking company in the United Kingdom. 
 
 (6.) The auditor or auditors shall make a report to the 
 members on the accounts examined by him or them, and on 
 every balance sheet laid before the company in general meeting 
 during his or their tenure of office; and in every such report 
 shall state whether, in his or their opinion, the balance sheet 
 referred to in the report is a full and fair balance sheet pro- 
 perly drawn up, so as to exhibit a true and correct view of 
 the state of the company’s affairs, as shown by the books of 
 of the company ; and such report shall be read before the 
 company in general meeting. 
 
 (7.) The remuneration of the auditor or auditors shall be 
 fixed by the general meeting appointing such auditor or 
 auditors, and shall be paid by the company. 
 
 8. Every balance sheet submitted to the annual or other 
 meeting of the members of every banking company registered 
 after the passing of this Act as a limited company shall be 
 signed by the auditor or auditors, and by the secretary or 
 manager (if any), and by the directors of the company, or 
 three of such directors at least. 
 
 9. On the registration, in pursuance of this Act, of a company 
 which has been already registered the .registrar shall make 
 provision for closing the former registration of the company 
 and may dispense with the delivery to him of copies of any 
 documents with copies of which he was furnished on the 
 occasion of the original registration of the company ; but, save, 
 as aforesaid, the registration of such a company shall take 
 place in the same manner and have the same effect as if it 
 were the first registration of that company under the Com- 
 panies Acts, 1862 to 1879, and as if the provisions of the 
 Acts under which the company was previously registered and 
 regulated had been contained in different Acts of Parliament 
 from those under which the company is registered as a limited 
 company. 
 
 10. A company authorised to register under this Act may 
 register thereunder and avail itself of the privileges conferred 
 by this Act, notwithstanding any provisions contained in any 
 Act of Parliament, Royal charter, deed of settlement, contract 
 of co-partnery, cost book, regulations, letters patent, or other 
 instrument constituting or regulating the company. 
 
Appendix //. 
 
 XXVll. 
 
 CROSS-WRITTEN DRAFTS OR CHEQUES . 
 19 & 20 Vict. c. 25. 
 
 An Act to amend the Law relating to Drafts on Bankers . 
 
 * [23rd June, 1856.] 
 
 Whereas doubts have arisen as to the obligations of bankers 
 with respect to cross-written drafts ; and whereas it would 
 conduce to the ease of commerce, the security of property, 
 and the prevention of crime, if drawers or holders of drafts on 
 bankers payable to bearer or to order on demand were en- 
 abled effectually to direct the payment of the same to be 
 made only to or through some banker : be it therefore en- 
 acted, &c. 
 
 1 . In every case where a draft on any banker, made pay- D .n*ft crossed 
 
 , , , 1 , 1 , .. with bankers 
 
 able to bearer or to order on demand, bears across its face name, &c., to be 
 
 an addition, in written or stamped letters, of the name of any P a y able only to 
 banker or of the words “ and company, ' in full or abbreviated banker, 
 either of such additions shall have the force of a direction to 
 the bankers upon whom such draft is made, that the same 
 is to be paid only to or through some banker, and the same 
 shall be payable only to or through some banker. 
 
 2. In the construction of this Act the word “banker ’’shall Construction, 
 include any person or persons, or corporation, or joint stock 
 
 or other company acting as a banker or bankers. 
 
 CROSSING CHEQUES OR DRAFTS ON BANNERS, 
 
 21 & 22 Vict. c. 79. 
 
 An Act to amend the Law relating to Cheques or Drafts on 
 Bankers . 
 
 [2nd August, 1858.] 
 
 Whereas it is expedient to amend the law relating to cheques 
 on bankers, be it therefore enacted as follows : — 
 
 1. Whenever a cheque or draft on any banker, payable to The crossing to 
 1 1 1 ’ r j- be deemed a 
 
 bearer or to order on demand, shall be issued, crossed with material part of 
 
 the name of a banker, or with two transverse lines with the draft q &c ° f 
 words “and company,” or any abbreviation thereof, such 
 crossing shall be deemed a material part of the cheque or 
 draft, and except as hereafter mentioned, shall not be ob- 
 literated or added to or altered by any person whomsoever after 
 the issuing thereof ; and the banker upon whom such cheque 
 or draft shall be drawn shall not pay such cheque or draft to 
 any other than the banker with whose name such cheque or 
 
xxviii. 
 
 Appendix II. 
 
 The lawful 
 holder of a 
 cheque un- 
 crossed, or 
 crossed “and 
 company,” may 
 cross the same 
 with the name of 
 banker. 
 
 Banker not to be 
 responsible for 
 paying a cheque 
 which does not 
 plainly appear to 
 have been 
 crossed or 
 altered. 
 
 Interpretation of 
 the word 
 “banker.” 
 
 draft shall be so crossed or if the same be crossed as aforesaid 
 without a banker’s name, to any other than a banker. 
 
 2. Whenever any such cheque or draft has been issued un- 
 crossed, or shall be crossed with the words “and company,” 
 or any abbreviation thereof, and without the name of any 
 banker, any lawful holder of such cheque or draft, while the 
 same remains so uncrossed, or crossed with the words “and 
 company, ” or any abbreviation thereof, without the name of 
 any banker, may cross the same with the name of a banker ; 
 and whenever any such cheque or draft shall be uncrossed, 
 any such lawful holder may cross the same with the words 
 “and company,” or any abbreviation thereof, with or with- 
 out the name of a banker ; and any such crossing as in this 
 section mentioned shall be deemed a material part of the 
 cheque or draft, and shall not be obliterated or added to or 
 altered by any person whomsoever after the making thereof, 
 and the banker upon whom such cheque or draft shall be 
 drawn shall not pay such cheque or draft to any other than 
 the banker with whose name such cheque or draft shall be so 
 crossed as last aforesaid. 
 
 3 - («)• 
 
 4. Provided always, that a banker paying a cheque or draft 
 which does not, at the time when it is presented for payment, 
 plainly appear to be or to have been crossed as aforesaid, or 
 to have been obliterated, added to or altered as aforesaid, 
 shall not be in any way responsible or incur liability, nor shall 
 such payment be questioned by reason of such cheque having 
 been so crossed as aforesaid, or having been obliterated, 
 added to or altered as aforesaid, and of his having paid the 
 same to a person other than a banker, or than the banker 
 with whose name such cheque or draft shall have been 
 so crossed, unless the banker shall have acted mala fide, or 
 been guilty of negligence in so paying such cheque. 
 
 5. In the construction of this Act the word “ banker” 
 shall include any person or persons, or corporation, or joint 
 stock company, acting as a banker or bankers. 
 
 Obliterating 
 crossings on 
 cheques. 
 
 {a.) Section 3 is repealed by 24 & 25 Viet. c. 95, and the 
 following section is substituted by 24 & 25 Viet. c. 98 : — 
 
 25. Whenever any cheque or draft on any banker shall be 
 crossed with the name of a banker, or with two transverse 
 lines with the words “and company,” or any abbreviation 
 thereof, whosoever shall obliterate, add to, or alter any 
 such crossing, or shall offer, utter, dispose of, or put off any 
 
Appendix II. 
 
 XXIX. 
 
 THE CROSSED CHEQUES ACT. 
 
 A n Act for amending the Law relating to Crossed Cheques. 
 
 [15th August, 1876.] 
 
 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 as- 
 sembled, and by the authority of the same, as follows : 
 
 1. This Act may be cited as The Crossed Cheques Act, Short title. 
 1876. 
 
 2. The Acts described in the schedule to this Act are Repeal of Acts 
 hereby repealed, but this repeal shall not affect any right, in sc e u e * 
 interest or liability acquired or accrued before the passing of 
 
 this Act. 
 
 3. In this Act — 
 
 “ Cheque ” means a draft or order on a banker payable Interpretation, 
 to bearer or to order on demand, and includes a 
 warrant for payment of dividend on stock sent by 
 post by the Governor and Company of the Bank of 
 England or of Ireland, under the authority of any Act 
 of Parliament for the time being in force : 
 
 “ Banker ” includes persons or corporation or company 
 acting as bankers. 
 
 4. Where a cheque bears across its face an addition of General and 
 the words “and company,” or any abbreviation thereof, speua crossin £ 
 between two parallel transverse lines, or of two parallel 
 transverse lines simply, and either with or without the words 
 
 “not negotiable, ” that addition shall be deemed a crossing, 
 and the cheque shall be deemed to be crossed generally. 
 
 Where a cheque bears across its face an addition of the 
 name of a banker, either with or without the words “ not 
 negotiable,” that addition shall be deemed a crossing, and 
 the cheque shall be deemed to be crossed specially, and to 
 be crossed to that banker. 
 
 5. Where a cheque is uncrossed, a lawful holder may cross Crossing after 
 it generally or specially. 
 
 cheque or draft whereon any such obliteration, addition or 
 alteration has been made, knowing the same to have been 
 made, with the intent, in any of the cases aforesaid, to 
 defraud, shall be guilty of felony, and being convicted thereof 
 shall be liable at the discretion of the court, to be kept in 
 penal servitude for life, or for any term not less than five 
 years (27 & 28 Viet. c. 47, s. 2), or to be imprisoned for any 
 term nor exceeding two years, with or without hard labour, 
 and with or without solitary confinement. 
 
XXX. 
 
 Crossing 
 material part of 
 cheque . 
 
 Payment to 
 banker only. 
 
 Cheque crossed 
 specially more 
 than once not to 
 be paid. 
 
 Protection of 
 banker and 
 drawer where 
 cheque crossed 
 specially. 
 
 Banker paying 
 cheque contrary 
 to provisions of 
 Act to be liabie 
 to lawful owner. 
 
 Relief of banker 
 from responsi- 
 bility in some 
 cases. 
 
 Appendix II. 
 
 Where a cheque is crossed generally, a lawful holder may 
 cross it specially. 
 
 Where a cheque is crossed generally or specially, a lawful 
 holder may add the words “ not negotiable. ” 
 
 Where a cheque is crossed specially, the banker to whom 
 it is crossed may again cross it specially to another banker, 
 his agent for collection. 
 
 6. A crossing authorised by this Act shall be deemed a 
 material part of the cheque, and it shall not be lawful for any 
 person to obliterate or, except as authorised by this Act, to 
 add to or alter the crossing. 
 
 7. Where a cheque is crossed generally, the banker on 
 whom it is drawn shall not pay it otherwise than to a banker. 
 
 Where a cheque is crossed specially, the banker on whom 
 it is drawn shall not pay it otherwise than to the banker to 
 whom it is crossed, or to his agent for collection. 
 
 8. Where a cheque is crossed specially to more than one 
 banker, except when crossed to an agent for the purpose of 
 collection, the banker on whom it is drawn shall refuse pay- 
 ment thereof. 
 
 9. Where the banker on whom a crossed cheque is drawn 
 has in good faith and without negligence paid such cheque, 
 if crossed generally to a banker, and if crossed specially to 
 the banker to whom it is crossed, or his agent for collection 
 being a banker, the banker paying the cheque and (in case 
 such cheque has come to the hands of the payee) the drawer 
 thereof shall respectively be entitled to the same rights, and 
 be placed in the same position in all respects, as they would 
 respectively have been entitled to and have been placed in if 
 the amount of the cheque had been paid to and received by 
 the true owner thereof. 
 
 10. Any banker paying a cheque crossed generally other- 
 wise than to a banker, or a cheque crossed specially otherwise 
 than to the banker to whom the same shall be crossed, or 
 his agent for collection, being a banker, shall be liable to 
 the true owner of the cheque for any loss he may sustain 
 owing to the cheque having been so paid. 
 
 11. Where a cheque is presented for payment, which 
 does not at the time of presentation appear to be crossed, or 
 to have had a crossing which has been obliterated, or to have 
 been added to or altered otherwise than authorised by this Act, 
 a banker paying the cheque, in good faith and without negli- 
 gence, shall not be responsible or incur any liability, nor 
 shall the payment be questioned, by reason of the cheque 
 
Appendix II. 
 
 XXXI. 
 
 having been crossed, or of the crossing having been obliterated 
 or having been added to or altered otherwise than as author- 
 ised by this Act, and of payment being made otherwise than 
 to a banker or the banker to whom the cheque is or was 
 crossed, or to his agent for collection being a banker (as the 
 case may be). 
 
 12. A person taking a cheque crossed generally or specially, 
 bearing in either case the words “not negotiable,” shall not specially, 
 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. 
 
 But a banker who has in good faith and without negligence 
 received payment for a customer of a cheque crossed gene- 
 rally or specially to himself shall not, in case the title to the 
 cheque proves defective, incur any liability to the true owner 
 of the cheque by reason only of having received such pay- 
 ment. 
 
 BANK NO TES AND BILLS COMPOSITION STAMP 
 DUTIES. 
 
 9 Geo. 4, c. 23. 
 
 An Act to enable Bankers in England to issue certain itn 
 stamped Promissory Notes and Bills of Exchange , upon 
 Payment of a Composition in lieu of the Stamp Duties 
 thereon (a). 
 
 [19th June, 1828.] 
 
 Whereas it is expedient to permit all persons carrying on 
 the business of bankers in England (except within the city of 
 London or within three miles thereof), to issue their promis- 
 sory notes payable to bearer on demand, or to order within 
 a limited period after sight, and to draw bills of exchange 
 payable to order on demand, or within a limited period after 
 sight or date, on unstamped paper, upon payment of a 
 composition in lieu of the stamp duties which would otherwise 
 be payable upon such notes and bills respectively, and subject 
 to the regulations hereinafter mentioned ; be it therefore Certain bankers 
 enacted, &c., that from and after the 1st day of July, 1828, Samped^promis- 
 it shall be lawful for any person or persons carrying on the ^ory ^f°exc]^arige 
 business of a banker or bankers in England (except within subject to the * 
 the city of London, or within three miles thereof), having j^ein^ 00 * 
 first duly obtained a licence for that purpose, and given mentioned. 
 
 ( a) By the Statute Law Revision Act, 1873, 36 & 37 Viet, 
 c. 91, ss. 16 and 17 are repealed. 
 
XXX11. 
 
 Appc?idix II. 
 
 security by bond in manner hereinafter mentioned, to issue, 
 on unstamped paper, promissory notes for any sum of money 
 amounting to £$ or upwards, expressed to be payable to the 
 bearer on demand, or to order, at any period not exceeding 
 seven days after sight ; and also to draw and issue, on 
 unstamped paper, 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 the date thereof ; 
 provided such bills of exchange be drawn upon a person or 
 persons carrying on the business of a banker or bankers in 
 London, Westminster, or the borough of Southwark, or 
 provided such bills of exchange be drawn by any banker or 
 bankers at a town or place where he or they shall be duly 
 licensed to issue unstamped notes and bills under the authority 
 of this act, upon himself or themselves, or his or their 
 co-partner or co-partners, payable at any other town or place 
 where such banker or bankers shall also be duly licensed to 
 issue such notes and bills as aforesaid. 
 
 Commissioners 
 of stamps may- 
 grant licenses to 
 issue unstamped 
 notes and bills. 
 
 A separate 
 license to be 
 for every place 
 where such notes 
 or bills shall be 
 issued, but not 
 to exceed four 
 licenses for any 
 number of such 
 places. 
 
 2. That it shall be lawful for any two or more of the 
 commissioners of stamps to grant to all persons carrying on 
 the business of bankers in England (except as aforesaid), 
 who shall require the same licences authorizing such persons 
 to issue such promissory notes and to draw and issue such 
 bills of exchange as aforesaid, on unstamped paper ; which 
 said licences shall be and are hereby respectively charged 
 with a stamp duty of ^30 for every such licence. 
 
 3. That a separate licence shall be taken out in respect of 
 every town or place where any such unstamped promissory 
 notes or bills of exchange as aforesaid shall be issued or 
 drawn ; provided always, that no person or persons shall be 
 obliged to take out more than four licences in all for any 
 number of towns or places in England ; and in case any 
 person or persons shall issue or draw such unstamped notes 
 or bills as aforesaid, at more than four different towns or 
 
 places, then, after taking out three distinct licences for three 
 of such towns or places, such person or persons shall be 
 entitled to have all the rest of such towns or places included 
 in a fourth licence. 
 
 Regulations re- 4* That every licence granted under the authority of this 
 specting licences, act shall specify all the particulars required by law to be 
 specified in licences to be taken out by persons issuing 
 promissory notes payable to bearer on demand, and allowed 
 to be re-issued ; and every such licence which shall be 
 granted between the 10th day of October and the nth day 
 
Appendix II. 
 
 xxxiii. 
 
 of November in any year shall be dated on the nth day of 
 October, and every such licence which shall be granted at 
 any other time shall be dated on the day on which the same 
 shall be granted ; and every such licence shall (notwith- 
 standing any alteration which may take place in any 
 copartnership of persons to whom the same shall be granted) 
 have effect and continue in force from the day of the date 
 thereof until the ioth day of October then next following, 
 both inclusive, and no longer. 
 
 5. Provided always, that where any banker or bankers Commissioners 
 shall have obtained the licence required by law for issuing n^nces^fready 
 promissory notes payable to bearer on demand, at any town taken out, and 
 or place in England, and during the continuance of such under this act in 
 licence shall be desirous of taking out a licence to issue at the lieu thereof, 
 same town or place unstamped promissory notes and bills of 
 
 exchange under the provisions of this act, it shall be lawful 
 for the commissioners of stamps to cancel and allow as 
 spoiled the stamp upon the said first-mentioned licence, and 
 in lieu thereof to grant to such banker or bankers a licence 
 under the authority of this act ; and every such last- 
 mentioned licence shall also authorize the issuing and re- 
 issuing of all promissory notes payable to the bearer on 
 demand, which such banker or bankers may by law continue 
 to issue or re-issued at the same town or place, on paper duly 
 stamped. 
 
 6. Provided always, that if any banker or bankers, who Bankers while 
 
 shall take out a licence under the authority of this act, shall ^half not 
 
 issue, under the authority of either this or any other act, any issue, for the first 
 unstamped promissory notes for payment of money to the sumped^aper 
 bearer on demand, such banker or bankers shall, so long as 
 
 he or they shall continue licensed as aforesaid, make and 
 issue on unstamped paper all his or their promissory notes 
 for payment of money to the bearer on demand, of whatever 
 amount such notes may be ; and it shall not be lawful for 
 such banker or bankers, during the period aforesaid, to issue 
 for the first time any such promissory note as aforesaid, on 
 stamped paper. 
 
 7. That before any licence shall be granted to any person Bankers licence 
 or persons to issue or draw any unstamped promissory notes stam S ped U notes or 
 or bills of exchange under the authority of this act, such bills shall give 
 person or persons shall give security, by bond, to his Majesty, for tfie^due per- d> 
 his heirs and successors, with a condition, that if such person formance of the 
 or persons do and shall from time to time enter or cause to comained S . herem 
 be entered in a book or books to be kept for that purpose, an 
 
XXXIV. 
 
 Appendix II. 
 
 account of all such unstamped promissory notes and bills of 
 exchange as he or they shall so as aforesaid issue or draw, 
 specifying the amount or value thereof respectively, and the 
 several dates of the issuing thereof ; and in like manner also, 
 a similar account of all such promissory notes as having been 
 issued as aforesaid, shall have been cancelled, and the dates 
 of the cancelling thereof, and all such bills of exchange as, 
 having been drawn or issued as aforesaid, shall have been 
 paid, and the dates of the payment thereof ; and do and shall 
 from time to time, when thereunto requested, produce and 
 show such accounts to, and permit the same to be examined 
 and inspected by, the said commissioners of stamps, or any 
 officer of stamps appointed under the hands and seals of the 
 said commissioners for that purpose ; and also do and shall 
 deliver to the said commissioners of stamps half-yearly, (that 
 is to say,) within fourteen days after the 1st day of January 
 and the 1st day of July in every year, a just and true account 
 in writing, verified upon the oaths or affirmations, (which 
 any justice of the peace is hereby empowered to administer,) 
 to the best of the knowledge and belief of such person or 
 persons, and of his or their cashier, accountant, or chief 
 clerk (a), or of such of them as the said commissioners shall 
 require, of the amount or value of all unstamped promissory 
 notes and bills of exchange, issued under the provisions of 
 this or any former act, in circulation within the meaning of 
 this act on a given day, (that is to say, ) on Saturday in every 
 week, for the space of half a year prior to the half-yearly day 
 immediately preceding the delivery of such account, together 
 with the average amount or value of such notes and bills so 
 in circulation, according to such account ; and also do and 
 shall pay or cause to be paid to the receiver-general of stamp 
 duties in Great Britain, or some other person duly authorized 
 by the commissioners of stamps to receive the same, as a 
 composition for the duties which would otherwise have been 
 payable for such promissory notes and bills of exchange 
 issued or in circulation during the past half year, the sum of 
 three shillings and sixpence for every one hundred pounds, 
 and also for the fractional part of one hundred pounds, of 
 the said average amount or value of such notes and bills in 
 circulation, according to the true intent and meaning of this 
 
 (a) The manager of the bank may make the affidavit. 
 Reg . v. Greenland , i L. R., C. C. 65 ; 36 L. J., M. C 37. 
 
Appendix II. 
 
 XXXV. 
 
 act ; and on due performance thereof such bonds shall be 
 void, but otherwise the same shall be and remain in full force 
 and virtue. 
 
 8. That every such unstamped promissory note payable to For what period 
 the bearer on demand, issued under the provisions of this are?o^ d deemed 
 act, shall, for the purpose of payment of duty, be deemed to in circulation, 
 be in circulation from the day of the issuing to the day of the 
 cancelling thereof, both days inclusive, excepting neverthe- 
 less the period during which such note shall be in the hands 
 of the banker or bankers who first issued the same, or by 
 whom the same shall be expressed to be payable ; and that 
 every unstamped promissory note payable to order, and 
 every unstamped bill of exchange so as aforesaid issued, shall 
 for the purpose aforesaid be deemed to be in circulation 
 from the day of the issuing to the day of the payment thereof, 
 both days inclusive : provided always, that every such 
 promissory note payable to order, and bill of exchange as 
 aforesaid, which shall be paid in less than seven days from 
 the issuing thereof, shall, for the purpose aforesaid be 
 included in the account of notes and bills in circulation on 
 the Saturday next after the day of the issuing thereof as if the 
 same were then actually in circulation. 
 
 Q. That in every bond to be given pursuant to the direc- Regulations re- 
 r • , , , • , , • specting the 
 
 tions of this act the person or persons intending to issue or bonds to be given 
 
 draw any such unstamped promissory notes and bills of pursuant to this 
 
 exchange as aforesaid, or such and so many of the said 
 
 persons as the commissioners of stamps shall require, shall 
 
 be the obligors ; and every such bond shall be taken in the 
 
 sum of one hundred pounds, or in such larger sum as the 
 
 said commissioners of stamps may judge to be the probable 
 
 amount of the composition or duties that will be payable 
 
 from such person or persons, under or by virtue of this act, 
 
 during the period of one year ; and it shall be lawful for the 
 
 said commissioners to fix the time or times of payment of the 
 
 said composition or duties, and to specify the same in the 
 
 condition of every such bond ; and every such bond may be 
 
 required to be renewed from time to time, at the discretion 
 
 of the said commissioners, and as often as the same shall be 
 
 forfeited, or the parties to the same, or any of them, shall 
 
 die, become bankrupt or insolvent, or reside in the parts 
 
 beyond the seas. 
 
 io. That if any alteration shall be made in any copartner- Fresh bonds to 
 ship of persons who shall have given any such security by £ lve . n on 
 
 , , : , . . . , , . . alterations of 
 
 bond as by this act is directed, whether such alteration shall copartnershi . 
 
XXXVI. 
 
 Appendix II. 
 
 Penalty on 
 bankers neglect- 
 ing to renew 
 their bonds. 
 
 Penalty for post- 
 dating un- 
 stamped notes 
 or bills. 
 
 This act not to 
 exempt from 
 penalties any 
 persons issuing 
 unstamped notes 
 or bills not in ac- 
 cordance here- 
 with. 
 
 be caused by the death or retirement of one or more of the 
 partners of the firm, or by the accession of any additional or 
 new partner or partners, a fresh bond shall be given by the 
 remaining partner or partners, or the persons composing the 
 new copartnership, as the case may be, which bond shall be 
 taken as a security for the duties which may be due and 
 owing, or may become due and owing, in respect of the 
 unstamped notes and bills which shall have been issued by 
 the persons composing the old copartnership, and which shall 
 be in circulation at the time of such alteration, as well as for 
 duties which shall or may be or become due or owing in 
 respect of the unstamped notes and bills issued or to be issued 
 by the persons composing the new copartnership ; provided 
 that no such fresh bond shall be rendered necessary by any 
 such alteration as aforesaid in any copartnership of persons 
 exceeding six in number, but that the bonds to be given by 
 such lastmentioned copartnerships shall be taken as securities 
 for all the duties they may incur so long as they shall exist, 
 or the persons composing the same, or any of them, shall 
 carry on business in copartnership together, or with any 
 other person or persons, notwithstanding any alteration in 
 such copartnership ; saving always the power of the said 
 commissioners of stamps to require a new bond in any case 
 where they shall deem it necessary for better securing the 
 payment of the said duties. 
 
 11. That if any person or persons who shall have given 
 security, by bond, to his Majesty, in the manner hereinbe- 
 fore directed, shall refuse or neglect to renew such bond 
 when forfeited, and as often as the same is by this act re- 
 quired to be renewed, such person or persons so offending 
 shall for every such offence forfeit and pay the sum of ^ioo. 
 
 12. That if any person or persons who shall be licensed 
 under the provisions of this act shall draw or issue, or cause 
 to be drawn or issued, upon unstamped paper, any promis- 
 sory note payable to order, or any bill of exchange which 
 shall bear date subsequent to the day on which it shall be 
 issued, the person or persons so offending shall, for every 
 such note or bill so drawn or issued, forfeit the sum of ^ioo. 
 
 13. That nothing in this act contained shall extend or be 
 construed to extend to exempt or relieve from the forfeitures 
 or penalties imposed by any act or acts now in force, upon 
 persons issuing promissory notes or bills of exchange not duly 
 stamped as the law requires, any person or persons who 
 under any colour or pretence whatsoever shall issue any un- 
 
Appendix II. 
 
 XXXVll. 
 
 stamped promissory note or bill of exchange, unless such 
 person or persons shall be duly licensed to issue such note or 
 bill under the provisions of this act ; and such note or bill 
 shall be drawn and issued in strict accordance with the re- 
 gulations and restrictions herein contained. 
 
 14. That all pecuniary forfeitures and penalties which may Recovery of 
 be incurred under any of the provisions of this act shall be P enaIties * 
 recovered for the use of his Majesty, his heirs and successors, 
 
 in his Majesty’s Court of Exchequer at Westminster, by 
 action of debt, bill, plaint or information, in the name of 
 his Majesty’s attorney or solicitor-general in England. 
 
 15. Provided always, that nothing in this act contained Not to affect the 
 shall extend or be construed to extend to prejudice, alter or Bank 6 ^ °* the 
 affect any of the rights, powers or privileges of the Governor England. 
 
 and Company of the Bank of England. 
 
 16. [Where any bankers taking out licences under this act 
 shall have stamps in their possession which will become use- 
 less, the commissioners may cancel such stamps, and make 
 allowance for the same, if application be made within six 
 calendar months next after the passing of the act.] 
 
 STAMP DUTIES ON BILLS, NOTES , CHEQUES , 
 PROTESTS AND RECELPTS, AND THE CAN- 
 CELL A TION OF ADHESLVE S TAMPS. 
 
 33 & 34 Vict. c. 97. 
 
 An Act for granting certain Stamp Duties in lieu of Duties of 
 the same kind now payable under various Acts , and con- 
 solidating and amending Provisions relating thereto. 
 
 (For provisions relating to Bills of Exchange, see ante , 
 page 173). 
 
 [10th August, 1870.] 
 
 1. This Act may be cited as “The Stamp Act, 1870,” 
 and shall come into operation on the 1st day of January, 1871, 
 which date is hereinafter referred to as at the commencement 
 of this Act. 
 
 6. (1.) All stamp duties which may from time to time be 
 chargeable by law upon any instruments are to be paid and 
 denoted according to the general and special regulations in 
 this Act contained. 
 
 (2) The said schedule, and everything therein contained, 
 is to be read and construed as part of this Act. 
 
 Short title, and 
 commencement 
 of act. 
 
 All duties to be 
 paid according to 
 the regulations of 
 this act, and the 
 schedule to be 
 read as part of 
 this act. 
 
xxxviii. 
 
 Terms upon 
 which unstamped 
 or insufficiently 
 stamped instru- 
 ments may be 
 received in evi- 
 dence in any 
 court. 
 
 Penalty for 
 frauds in relation 
 to adhesive 
 stamps, or to any 
 duty, £ 50 . 
 
 As to defacement 
 of adhesive 
 stamps. 
 
 Appendix II. 
 
 1 6. (1.) Upon the production of an instrument chargeable 
 with any duty as evidence in any court of civil judicature in 
 any part of the United Kingdom, the officer whose duty it is 
 to read the instrument shall call the attention of the judge to 
 any omission or insufficiency of the stamp thereon, and if the 
 instrument is one which may legally be stamped after the 
 execution thereof, it may, on payment to the officer of the 
 amount of the unpaid duty, and the penalty payable by law 
 on stamping the same as aforsaid, and of a further sum of 1 /., 
 be received in evidence, saving all just exceptions on other 
 grounds. 
 
 25. Any person who — 
 
 (1.) Fraudulently removes or causes to be removed from 
 any instrument any adhesive stamp, or affixes any 
 adhesive stamp which has been so removed to any 
 other instrument with intent that such stamp may 
 be used again. 
 
 (2.) Sells or offers for sale, or utters, any adhesive stamp 
 which has been so removed, or utters any instrument 
 having thereon any adhesive stamp which has to his 
 knowledge been so removed as aforesaid ; 
 
 (3.) Practises or is concerned in any fraudulent act, con- 
 trivance, or device not specially provided for, with 
 intent to defraud her Majesty, her heirs or suc- 
 cessors of any duty, 
 
 shall forfeit, over and above any other penalty to which he 
 may be liable, the sum of £$o. 
 
 [An unauthorised defacement of adhesive stamps subjects a 
 person to a penalty of ^5. By the Stamp Duties Management 
 Act, 1870, 33 & 34 Viet. c. 98, s. 25, every person who by 
 any writing in any manner defaces any adhesive stamp before 
 it is used shall forfeit the sum of £$ : provided that any per- 
 son may, with the express sanction of the commissioners, 
 and in the manner and in conformity with the conditions 
 which they may prescribe, write upon an adhesive stamp 
 before it is used for the purpose of identification thereof.] 
 
 PA YMENT OF BILLS AND NOTES PA YABLE A T 
 SIGHT i AND STAMP DUTY. 
 
 34 & 35 Vict. c. 74. 
 
 An Act to abolish Days of Grace in the case of Bills of Ex - 
 
Appendix II xxxix. 
 
 change and Promissory Notes payable at Sight or on 
 Presentation. 
 
 [14th August, 1871.] 
 
 Whereas doubts have arisen whether by the custom of 
 merchants a bill of exchange or promissory note purporting 
 to be payable at sight or on presentation is payable until the 
 expiration of a certain number of 44 days of grace 
 
 And whereas it is expedient that such bills of exchange 
 and promissory notes should bear the same stamp and 
 should be payable in the same manner as bills of exchange 
 and promissory notes purporting to be payable on demand : 
 
 Be it enacted, &c. , as follows : 
 
 1. This act may be cited as “ The Bills of Exchange, Act, Short title. 
 
 1871.” 
 
 2. Every bill of exchange or promissory note, drawn after Bills payable at 
 this act comes into operation and purporting to be payable sLn^Lkm to P be" 
 at sight or on presentation, should bear the same stamp and payable on 
 shall, for all purposes, whatsoever, be deemed to be a bill of demand - 
 exchange or promissory note payable on demand, any law 
 
 or custom to the contrary notwithstanding. 
 
 3. For the purposes of this act, the terms “bill of exchange” Definition of 
 
 i << • . j, , 11 u 4-u S terms. 
 
 and promissory note shall have the same meanings as 
 
 are given to them in 4 4 The Stamp Act, 1870.” 
 
 4. A bill of exchange purporting to be payable at sight Admissibility in 
 and drawn at any time between the 1st day of January, 1871, btti s . enCe ° past 
 and the day of the passing of this act, both inclusive, and 
 
 stamped as a bill of exchange payable on demand, shall be 
 admissible in evidence on payment of the difference between 
 the amount of stamp duty paid on such bill and the amount 
 which would have been payable if this act had not passed. 
 
 COMPOSITIONS FOR STAMP DUTY ON BANK 
 POST BILLS OF £5 AND UPWARDS. 
 
 27 & 28 Vict. c. 86. 
 
 An Act to permit for a Limited Period Compositions for Stamp 
 Duty on Bank Post Bills of £5 and upwards in Ireland. 
 
 [29th July, 1864.] 
 
 Whereas by an act passed in the 16th and 17th years of her 16 & 17 Vict. c. 
 
 Majesty’s reign, chapter 63, the commissioners of her Majesty’s 63 
 
 treasury are authorized and empowered to compound and 
 
 agree with all or any bankers in Scotland or elsewhere 
 
 for a composition in lieu of the stamp duties payable on the 
 
 bills of exchange [of such bankers : and whereas it is ex- 
 
xl. 
 
 Appendix II. 
 
 Power to 
 treasury to 
 compound with 
 bankers in 
 Ireland for the 
 stamp duty on 
 bank post bills 
 for a period of 
 three years. 
 
 27 & 28 Viet. c. 
 86 . 
 
 pedient to permit bankers in Ireland for a limited period to 
 compound for the stamp duties payable on their bank post 
 bills as well as on their bills of exchange : be it enacted, &c., 
 as follows : 
 
 1. It shall be lawful for the commissioners of her Majesty’s 
 treasury and they are hereby authorized and empowered to 
 compound and agree with any banker in Ireland for a com- 
 position 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 ^5 or upwards, and such com- 
 position 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 composi- 
 tion 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 con- 
 tained to the contrary notwithstanding. 
 
 COMPOSITIONS FOR STAMP DUTY ON BANK 
 POST BILLS OP £5 AND UPWARDS. 
 
 30 & 31 Vict. c. 89. 
 
 An Act to render perpetual an Act passed in the Session liolden 
 in the 2jth and 28th Years of her present Majesty , inti- 
 tuled An Act to permit for a limited Period Compositions 
 for Stamp Duty on Bank Post Bills of £5 and upwards in 
 Ireland 
 
 [12th August, 1867.] 
 
 Whereas by an act passed in the session holden in the 27th 
 and 28th years of the reign of her present Majesty, chapter 
 86, intituled “ An Act to permit for a limited period com- 
 positions for stamp duty on bank post bills of £$ and 
 upwards in Ireland,” the commissioners of her Majesty’s 
 treasury are empowered to compound and agree, in manner 
 therein mentioned, with any banker in Ireland for a compo- 
 sition 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 the said act for 
 any sum of money amounting to £5 and upwards : and 
 
Appendix //. 
 
 xli. 
 
 whereas it is expedient to make perpetual the powers con- 
 ferred by the said act : be it enacted, &c., as follows : 
 
 1. The powers conferred by the said act of the session of Powers of 27 & 
 the 27th and 28th years of the reign of her present Majesty madeperpetual. 
 shall be perpetual, and the said act shall be construed as if 
 
 the words 44 during the period of three years from the 
 passing of this act ” had been omitted therefrom. 
 
 2. This act may be cited for all purposes as 4 4 The Stamp Short title. 
 Duty Commission (Ireland) Act, 1867.” 
 
 VALIDITY OF CHEQUES OR DRAFTS FOR 
 LESS THAN 20s. 
 
 23 & 24 VlCT. C. III. 
 
 An Act f 07 ' granting to her Majesty certain Duties on Stamps , 
 and to a?nend the Laws relating to the Sta 7 np Duties (a). 
 
 [28th August, i860.] 
 
 19. Whereas by s. 18 of the 55 Geo. 3, c. 184, the issuing Section 18 of 55 
 of promissory notes payable to bearer on demand with p r ohibibng 8 the 
 printed dates therein is prohibited, and such prohibition is issuing of 
 an unnecessary restriction ; he it enacted , that the said section printed^ 
 shall be and is hereby repealed : provided always, that, not- dates, repealed, 
 withstanding anything in any act of parliament contained to 
 the contrary, it shall be lawful for any person to draw upon 
 
 his banker, who shall bona fide hold money to or for his use, Drafts on 
 
 , c . , . . / 1 hankers for less 
 
 any draft or order for the payment to the bearer or to order than 20s. to be 
 
 on demand, of any sum of money less than 20s. lawful. 
 
 SPIRITUAL PERSONS PROHIBITED BEING 
 MEMBERS OF JOINT STOCK BANKS . 
 
 4 Vict. c. 14. 
 
 An Act to make good certain Contracts which have been or 
 may be entered into by ce 7 'tam Banking and other Co- 
 partnerships ( b ). 
 
 [18th May, 1841.] 
 
 Whereas divers associations and copartnerships, consisting 
 
 (a) 3 3 & 34 Vict. c. 99, repeals sects. 1 to 18, both inclusive, 
 and the schedule. 
 
 (b.J This statue is a re-enactment of 1 Vict. c. 10, originally 
 temporary and limited in operation, and repealed by the 
 Statute Law Revision Act, 1861, 24 & 25 Vict. c. 101. 
 
xlii. 
 
 Appendix II. 
 
 No association 
 or copartnership, 
 or contract 
 entered into by 
 any of them to 
 to be illegal or 
 void by reason 
 only of spiritual 
 persons being 
 members thereof. 
 
 No spiritual 
 person beneficed 
 or performing 
 ecclesiastical 
 duty to act as 
 director. 
 
 of more than six members or shareholders, have from time to 
 time been formed for the purpose of being engaged in and 
 carrying on the business of banking and divers other trades 
 and dealings for gain and profit, and have accordingly for 
 some time past been and are now engaged in carrying on 
 the same by means of boards of directors or managers, com- 
 mittees or other officers, acting on behalf of all the members 
 or shareholders of or persons otherwise interested in such 
 associations or copartnerships : and whereas divers spiritual 
 persons, having or holding dignities, prebends, canonries, 
 benefices, stipendiary curacies, or lectureships, have been 
 and are members or shareholders of or otherwise interested 
 in divers of such associations and copartnerships : and 
 whereas it is expedient to render legal and valid all contracts 
 entered into by such associations or copartnerships, although 
 the same may now be void by reason of such spiritual per- 
 sons being or having been such members or shareholders or 
 otherwise interested as aforesaid ; be it therefore enacted, 
 &c., that no such association or copartnership already 
 formed or which may be hereafter formed, nor any contract 
 either as between the members, partners, or shareholders 
 composing such association or copartnership for the purpose 
 thereof, or as between such association or copartnership and 
 other persons, heretofore entered into, or which shall be 
 entered into by any such association or copartnership already 
 formed or hereafter to be formed, shall be deemed or taken 
 to be illegal or void, or to occasion any forfeiture what- 
 soever, by reason only of any such spiritual person as afore- 
 said being or having been a member, partner, or shareholder 
 of or otherwise interested in the same, but all such associ- 
 ations and copartnerships shall have the same validity and 
 all such contracts shall and may be enforced in the same 
 manner to all intents and purposes as if no such spiritual 
 person had been or was a member, partner, shareholder of 
 or interested in such association or copartnership ; provided 
 always, that it shall not be lawful for any spiritual person 
 holding any cathedral preferment, benefice, curacy, or 
 lectureship, or who shall be licensed or allowed to perform 
 the duties of any ecclesiastical office, to act as a director or 
 managing partner, or to carry on such trade or dealing as 
 aforesaid in person. 
 
Appendix II. 
 
 xliii. 
 
 BANK HOLIDA YS. 
 
 34 Vict. c. 17. 
 
 An Act to make provision for Bank Holidays , and respecting 
 Obligatio7is to make Payments and do other Acts on such 
 Ba 7 ik Holidays . 
 
 [25th May, 1871.] 
 
 Whereas it is expedient to make provision for rendering 
 the day after Christmas Day, and also certain other days, 
 bank holidays, and for enabling bank holidays to be ap- 
 pointed by royal proclamation : 
 
 Be it enacted, &c., as follows : 
 
 1. After the passing of this act, the several days in the Bills due on 
 schedule to this act mentioned (a) and which days are in t * £ e due on the 
 this act hereinafter referred to as bank holidays, shall be following day. 
 kept as close holidays in all banks in England and Ireland 
 
 and Scotland respectively, and all bills of exchange and pro- 
 missory notes which are due and payable on any such bank 
 holiday shall be payable, and in case of non-payment may be 
 noted and protested, on the next following day, and not on 
 such bank holiday ; and any such noting or protest shall be 
 as valid as if made on the day on which the bill or note was 
 made due and payable ; and for all the purposes of this act 
 the day next following a bank holiday shall mean the next 
 following day on which a bill of exchange may be lawfully 
 noted or protested. 
 
 2. When the day on which any notice of dishonour of an Provision as to 
 unpaid bill of exchange or promissory note should be given, honour°and S pre- 
 or when the day on which a bill of exchange or promissory sentation for 
 note should be presented or received for acceptance, or accepted 
 
 or forwarded to any referee or referees, is a bank holiday, 
 
 (a) Schedule. 
 
 Bank Holidays hi England a 7 id Ireland . 
 
 Easter Monday. 
 
 The Monday in Whitsun week. 
 
 The first Monday in August. 
 
 The 26th day of December, if a week day. 
 
 Bank Holidays in Scotland. 
 
 New Year’s Day. 
 
 Christmas Day. 
 
 If either of the above days fall on a Sunday the next 
 following Monday shall be a bank holiday. 
 
 Good Friday. 
 
 The first Monday of May. 
 
 The first Monday of August. 
 
xliv. 
 
 Appendix II. 
 
 As to any pay- 
 ments on bank 
 holidays. 
 
 Appointment of 
 special bank 
 holidays by royal 
 proclamation. 
 
 Day appointed 
 for bank holiday 
 may be altered 
 by order in 
 council. 
 
 Exercise of 
 powers conferred 
 by sections 4 and 
 5 in Ireland by 
 Lord Lieutenant 
 (a). 
 
 Short title 
 
 such notice of dishonour shall be given and such bill of ex- 
 change or promissory note shall be presented or forwarded 
 on the day next following such bank holiday. 
 
 3. No person shall be compellable to make any payment 
 or to do any act upon such bank holidays which he would not be 
 compellable to do or make on Christmas Day or Good 
 Friday ; and the obligation to make such payment and do 
 such act shall apply to the day following such bank holiday ; 
 and the making of such payment and doing such act on such 
 following day shall be equivalent to payment of the money or 
 performance of the act on the holiday. 
 
 4. It shall be lawful for her Majesty, from time to time, 
 as to her Majesty may seem fit, by proclamation, in the man- 
 ner in which solemn fasts or days of public thanksgiving may 
 be appointed, to appoint a special day to be observed as a 
 bank holiday, either throughout the United Kingdom or in 
 any part thereof, or in any county, city, borough or district 
 therein, and any day so appointed shall be kept # as a close 
 holiday in all banks within the locality mentioned in such 
 proclamation, and shall, as regards bills of exchange and 
 promissory notes payable in such locality, be deemed to be a 
 bank holiday for all the purposes of this act. 
 
 5. It shall be lawful for her Majesty in like manner, from time 
 to time, when it is made to appear to her Majesty in council 
 in any special case that in any year it is inexpedient that a day 
 by this act appointed for a bank holiday should be a bank 
 holiday, to declare that such day shall not in such year be abank 
 holiday, and to appoint such other day as to her Majesty in 
 council may seem fit to be a bank holiday instead of such day, 
 and thereupon the day so appointed shall in such year be 
 substituted for the day so appointed by this act. 
 
 6. The powers conferred by sections 3 and 4 of this act on 
 her Majesty may be exercised in Ireland, so far as relates to 
 that part of the United Kingdom, by the Lord Lieutenant of 
 Ireland in Council. 
 
 7. This act may be cited for all purposes as “ The Bank 
 Holidays Act, 1871.” 
 
 (a ) The exercise of the powers conferred by sects. 4 and 5 
 will render unnecessary the passing of a special act of parlia- 
 ment, as in the case of the public funeral of the Duke of 
 Wellington, 16 & 17 Viet., c. 1, and on the occasion of the 
 entry of the Princess Alexandria of Denmark into London, 
 26 & 27 Viet., c. 2. 
 
Appendix II. 
 
 xlv. 
 
 REGULATION OF ISSUE OF BANK NOTES. 
 
 8 & 9 Vict. c. 37. 
 
 An Act to regulate the Issue of Bank Notes in Ireland, and 
 to regulate the Repayment op certain Sums advanced by the 
 Governor aud Company op the Bank of Ireland for the 
 Public Service. 
 
 [21st July, 1845.] 
 
 Whereas by an act passed in the parliament of Ireland in 
 the 2 1st and 22nd years of the reign of his Majesty King 
 George the Third, intituled “ An Act for establishing a bank 
 by the name of the Governors and Company of the Bank of 
 Ireland,” it was amongst other things enacted, that from and 
 after the passing of that act it should not be lawful for any 
 body politic or corporate erected or to be erected, other than 
 the corporation thereby intended to be created and erected 
 into a national bank, or for any other persons whatsoever 
 united or to be united in covenants or partnership exceeding 
 the number of six persons, to borrow, owe, or take up any 
 sum or sums of money on their bills or notes payable at de- 
 mand, or at any less time than six months from the bor- 
 rowing thereof, under a penalty or forfeiture by such persons, 
 bodies politic or corporate, of treble the sum or sums so to 
 be borrowed or taken upon such bill or bills, note or notes, 
 one moiety thereof to be paid to the informer, and the other 
 to the use of his Majesty, his heirs and successors, to be re- 
 covered by action of debt, bill, plaint, or information in any 
 of his Majesty’s courts of record at Dublin : whereas, in pur- 
 suance of the powers in the said act of parliament contained, a 
 charter of incorporation was granted to certain persons, by 
 the name of the Governor and Company of the Bank of Ire- 
 land : and whereas by an act passed in the 1st and 2nd 
 years of the reign of his Majesty King George the Fourth, 
 intituled 4 ‘An Act to establish an agreement with the 
 Governor and Company of the Bank of Ireland for 
 advancing the sum of ^500,000 Irish currency, and to 
 empower the said governor and company to enlarge the 
 capital stock or fund of the said bank to three million pounds, 
 it was enacted, that it might be lawful for any number of 
 persons in Ireland united or to be united in society or part- 
 nership, and residing and having their establishments in 
 houses of business at any place not less than 50 miles distant 
 from Dublin, to borrow, owe, or take up any sum or sums of 
 money on their bills or notes payable on demand, and to 
 make and issue such notes or bills accordingly, payable on 
 
xlvi. 
 
 Appendix II. 
 
 demand at any place in Ireland exceeding the distance of 50 
 miles from Dublin, all the individuals composing such socie- 
 ties or partnerships being liable and responsible for the due 
 payment of such bills or notes ; but nothing therein con- 
 tained was to extend or be construed to extend to authorize 
 any persons exceeding six in number, or any bodies politic or 
 corporate, residing or having their establishment or house of 
 business within the distance of 50 miles from Dublin, to make 
 or issue any bill or bills of exchange, or any promissory note 
 or notes, contrary to the provisions of the said in part recited 
 act of the 21st and 22nd years of the reign of King George 
 the Third : and whereas by # another act passed in the 6th 
 year of the reign of his Majesty King George the Fourth, in- 
 tituled “ An Act for the better regulation of copartnerships 
 of certain bankers in Ireland,” and by another act passed in 
 the 1st year of the reign of his late Majesty King William 
 the Fourth, intituled “An Act to explain two acts of his 
 present Majesty, for establishing an agreement with the 
 Governor and Company of the Bank of Ireland ; or advancing 
 the sum of ^500,000 Irish currency, and for the better re- 
 gulation of copartnerships of certain bankers 'in Ireland,” 
 such copartnerships of bankers established at places beyond 
 the distance of 50 miles from Dublin were authorized to 
 transact certain matters of business by agents in Dublin or 
 within the distance of 50 miles thereof : and whereas the said 
 governor and company at different times advanced, for the 
 public service, to his Majesty King George the Third, the 
 several sums of ^600,000, ,£500,000, and ^1,250, 000, late 
 Irish currency, and in respect thereof the said governor and 
 company were entitled to certain annuities payable at the 
 receipt of the exchequer in Dublin : and whereas by an act 
 passed in the 48th year of the reign of his said Majesty King 
 George the Third, intitultd “ An Act for further extending 
 the provisions of several acts for establishing the Bank of 
 Ireland, and for empowering the governor and company of 
 the said bank to advance the sum of £ 1 , 500,000 Irish cur- 
 rency towards the service of the year 1808,” it was among 
 other things enacted, that at any time after the 1st day of 
 January, in the year of our Lord, 1837, upon 12 months’ 
 notice, to be published in the Dublin Gazette by order of the 
 Lord Lieutenant or other chief governor or governors of Ire- 
 land, the said corporation of the bank was to be dissolved ; 
 and upon repayment by parliament to the said Governor 
 and Company of the Bank of Ireland, or their successors, of 
 
Appendix II. 
 
 xlvii 
 
 the said several sums of £600,000, £500,000, and £1,200,000, 
 and also of all arrears of the several annuities payable in 
 respect of the said three several capital sums, if any such 
 arrear should then be due, or at any time previous to the 
 said 1st day of January, 1837, upon like repayment by and 
 with the desire and consent of the said governor, and com- 
 pany, to be signified by them by their petition in writing, 
 sealed with their common seal, and addressed to the lord 
 lieutenant or other chief governor or governors of Ireland for 
 the time being, then and in such case the said several annui- 
 ties should from and after the expiration of 12 months after 
 such notice published, cease and determine, and the said 
 corporation should be dissolved : and whereas in pursuance 
 of the said recited act passed in the 1st and 2nd years of the 
 reign of his Majesty King George the Fourth, intituled “ An 
 Act to establish an agreement with the Governor and Com- 
 pany of the Bank of Ireland for advancing £500,000 Irish 
 currency, and to empower the said governor and company 
 to enlarge the capital stock or fund of the said bank to 
 ■£3,000,000,” the said Governor and Company of the Bank 
 of Ireland advanced for the public service, to his Majesty 
 King George the Fourth, £"500,000 late Irish currency, at 
 interest, making, with the said three several sums of 
 £600,000, £500,000, and £1,250,000, late Irish currency, 
 previously advanced, the sum of £2,850,000, equal to 
 £2,630,769 4s. 8d. sterling money of the United Kingdom 
 of Great Britain and Ireland : and whereas by an act passed 
 in the 3rd and 4th years of the reign of her present Majesty, 
 intituled “An Act to regulate the repayment of certain 
 sums advanced by the Governor and Company of the Bank 
 of Ireland for the public service, ” it was amongst other things 
 enacted, that from and after the passing of the said act there 
 should be paid and payable, but subject to the condition of 
 redemption thereinafter contained, at the receipt of her 
 Majesty’s exchequer in Dublin, to the Governor and Com- 
 pany of the said Bank of Ireland, out of the Consolidated 
 Fund of the United Kingdom of Great Britain and Ireland, 
 an interest or annuity of £115,384 12s. 4d., money of the 
 United Kingdom, being a sum equal to the several annuities 
 and interest theretofore payable in respect of the principal 
 money due to the said governor and company as aforesaid, 
 by two equal half-yearly payments, without any defalcation 
 or abatement, on the 5th day of January and the 5th day of 
 July in each year, the first payment of the said interest or 
 
xlviii. 
 
 Appendix II. 
 
 anuuity to be made on the 5th day of January in the year 
 1841 ; and it was by the last-mentioned act further provided, 
 that the said last-mentioned annuity should be redeemable 
 at any time after the 1st day of January, 1841, on six months’ 
 notice to the said governor and company, and on repayment 
 to them of the said several sums of ^600,000, £500,000, 
 £1,250,000, late Irish currency, together with all arrears of 
 the said annuity of £115,384 12s. 4d. : and whereas the last- 
 mentioned annuity has, by consent of the said governor and 
 company, been reduced to an annuity of £92,076 18s. 5d. of 
 British currency : and whereas it is expedient that the exclu- 
 sive privilege of banking granted to the said governor and 
 company by the said recited act of the parliament of Ireland, 
 or by any other act or acts of parliament now in force, should 
 cease, but that the said governor and company should con- 
 tinue a corporation, with full power and authority to carry on 
 the business of bankers, subject to the regulations hereinafter 
 contained ; and the said Governor and Company of the Bank 
 of Ireland have agreed to continue the management in Ire- 
 land of so much of the public debt of the United Kingdom as 
 shall for the time being require to be transacted in Ireland, 
 and of all loans and other creations of stock which shall at 
 any time be made in Ireland, and of any public annuities for 
 lives or for years which may be payable in Ireland, free of all 
 charge and expense whatever for such management, or for 
 their trouble in the payment of the interest of the said public 
 debt or annuities from time to time during the continuance 
 of the said corporation under the provisions of this act ; and 
 it hath been further agreed that the said governor and com- 
 pany shall continue to receive the said annuity of ,£92,076 
 1 8s. 5d., being an annual interest at and after the rate of 
 three and a half per centum per annum, for and in respect of 
 the said capital sum of ,£2,630,769 4s. 8d., and that the re- 
 payment of the last-mentioned surh shall be postponed till the 
 expiration of six months after notice to be given by the 
 commissioners of her Majesty’s Treasury of the United 
 Kingdom of Great Britain and Ireland to the said governor 
 and company of their intention to pay off the same, or by the 
 said governor and company to the said commissioners of her 
 Majesty’s Treasury requiring payment thereof, such notice 
 not to be given by either party before the 1st day of January, 
 1855 : and whereas by an act passed in the 7th and 8th years 
 of the reign of her Majesty, intituled “An Act to regulate 
 the issue of bank notes, and for giving to the Governor and 
 
Appendix //. 
 
 xlix. 
 
 Company of the Bank of England certain privileges for a 
 limited period,” it was enacted, that from and after the 
 passing of that act no person, other than a banker who on the 
 6th day of May, 1844, was lawfully issuing his own bank 
 notes, should make or issue bank notes in any part of the 
 United Kingdom : and whereas it is expedient to regulate the 
 issue of bank notes by the said Governor and Company of the 
 Bank of Ireland, and by such other bankers as are now by 
 law authorized to issue bank notes in Ireland : be it therefore 
 enacted, &c., that from and after the 6th day of December, 
 
 1845, so much of the said recited act of the parliament o* 
 
 Ireland of the 21st and 22nd years of the reign of his 
 Majesty King George the Third as prohibits any body politic 
 or corporate erected or to be erected, other than the Governor 
 and Company of the Bank of Ireland, or for any other persons 
 whatsoever united or to be united in covenants or partnership 
 exceeding the number of six persons, to borrow, owe, or take 
 up any sum or sums of money on their bills or notes payable 
 at demand, or at any less time than six months from the 
 borrowing thereof, shall be and the same is hereby repealed ; 
 and that from and after the said 6th day of December, 1845, 
 it shall and may be lawful for any persons exceeding six in 
 number united or to be united in societies or partnerships, 
 or for any bodies politic or corporate, to transact or carry on 
 the business of bankers in Ireland at Dublin, and at every 
 place within 50 miles thereof, as freely as persons exceeding 
 six in number united as aforesaid may lawfully carry on the 
 same business at any place in Ireland beyond the distance of 
 50 miles from Dublin : provided always, that every member 
 of any such society, partnership, bodies politic or corporate, 
 shall be liable and responsible for the due payment of all the 
 debts and liabilities of the corporation or copartnership of 
 which such person shall be a member, any agreement, cove- 
 nant, or contract to the contrary notwithstanding. 
 
 6. And whereas by an act passed in the 3rd and 4th years Bank of England 
 of the reign of his late Majesty King William the Fourth, ^Jderi^Ireland 1 
 intituled “An Act for giving to the corporation of the 
 Governor and Company of the Bank of England certain pri- 
 vileges for a limited period, under certain conditions, ” it was 
 enacted, that from and after the 1st day of August, 1834, un- 
 less and until parliament should otherwise direct, a tender of 
 a note or notes of the Governor and Company of the Bank 
 of England expressed to be payable to bearer on demand 
 should be a legal tender to the amount expressed in such note 
 
 d 
 
1 . 
 
 Appendix //. 
 
 3 & 4 Will. 4, 
 c. 98. 
 
 Proviso. 
 
 Bankers claiming 
 to be entitled to 
 issue bank notes 
 to give notice to 
 commissioners of 
 stamps and 
 taxes. 
 
 Commissioners 
 to certify existing 
 banks of issue 
 and limitation of 
 issue. 
 
 4 & 5 Viet. c. 50. 
 
 Prohibiting issue 
 by uncertified 
 bankers. 
 
 or notes, and should be taken to be valid as a tender to such 
 amount for all sums above £$, on all occasions on which 
 any tender of money may be legally made, so long as the 
 Bank of England should continue to pay on demand their 
 said notes in legal coin ; provided always, that no such note 
 or notes should be deemed a legal tender of payment by the 
 Governor and Company of the Bank of England, or any 
 branch bank of the said governor and company : and where- 
 as doubts have arisen as to the extent of the said enactment ; 
 for removal whereof, be it enacted and declared, that no- 
 thing in the said last-recited act contained shall extend or 
 be construed to extend to make the tender of a note or notes 
 of the Governor and Company of the Bank of England a 
 legal tender in Ireland : provided also, that nothing in this 
 act shall be construed to prohibit the circulation in Ireland 
 of the notes of the Governor and Company of the Bank of 
 England as heretofore. 
 
 8. That every banker claiming to be entitled to issue bank 
 notes in Ireland shall, W'ithin one month next after the pas- 
 sing of this act, give notice in writing to the commissioners 
 of stamps and taxes, at their head office in London, of such 
 claim, and of the place and name and firm at and under 
 which such banker has issued such notes in Ireland during 
 the year next preceding the 1st May, 1845, an d thereupon 
 the said commissioners shall ascertain if such banker was on 
 the 6th day of May, 1844, and from thence up to the 1st day 
 of May, 1845, carrying on ‘the business of a banker, and law- 
 fullyissuinghisownbanknotesinlreland, and if it shall soap- 
 pear, then the said commissioners shall so proceed to ascertain 
 the average amount of the bank notes of such banker which 
 were in circulation during the said period of one year preceding 
 the 1st day of May, 1845, according to the returns made by 
 such banker in pursuance of the act passed in the 4th and 5 th 
 years of the reign of her present Majesty, intituled “An Act 
 to make further provisions relative to the returns to be made 
 by banks of the amount of their notes in circulation, ” and the 
 said commissioners, or any two of them, shall certify under 
 their hands to such banker the average amount, when so 
 ascertained as aforesaid, omitting the fractions of a pound, if 
 any ; and it shall be lawful for every such banker to continue 
 to issue his own bank notes after the 6th day of December, 
 1845, to the extent of the amount so certified, and of the 
 amount of the gold and silver coin held by such banker, in 
 the proportion and manner hereinafter mentioned, but not to 
 
Appendix II. 
 
 li. 
 
 any further extent ; and from and after the 6th day of 
 December, 1845, it shall not be lawful for any banker to 
 make or issue bank notes in Ireland, save and except only 
 such bankers as shall have obtained such certificate from the 
 commissioners of stamps and taxes. 
 
 10. That the commissioners of stamps and taxes shall, at Duplicate of . 
 the time of certifying to any banker such particulars as they in the 
 
 are hereinbefore required to certify, also publish a duplicate Gazette, 
 of their certificate thereof in the next succeeding Dublin 
 Gazette in which the same may be conveniently inserted ; 
 and the gazette in which such publication shall be made shall Gazette to be 
 be conclusive evidence in all courts whatsoever of the amount evldence - 
 of bank notes which the banker named in such certificate or 
 duplicate is by law authorized to issue and to have in 
 circulation as aforesaid, exclusive of an amount equal to the 
 monthly average amount of the gold and silver coin held by 
 such banker as herein provided. * 
 
 12. That it shall be lawful for any banker in Ireland who Banks entitled to 
 under the provisions of this act is entitled to issue bank notes issumg V notes ° f 
 to contract and agree with the Governor and Company of may relinquish 
 the Bank of Ireland, by an agreement in writing, for the 
 relinquishment of the privilege of issuing such notes in favour 
 
 of the said governor and company, and in each such case a 
 copy of such agreement shall be transmitted to the commis- 
 sioners of stamps and taxes ; and the said commissioners shall 
 thereupon certify, in manner hereinbefore mentioned, the 
 aggregate of the amount of bank notes which the Bank of 
 Ireland and the banker with whom such agreement shall 
 have been made were previously authorized to issue under 
 the separate certi ficates previously delivered to them ; and 
 every such certificate shall be published in manner herein- 
 before directed ; and from and after such publication the 
 amount therein stat ed shall be the limit of the amount of 
 bank notes which the Governor and Company of the Bank 
 of Ireland may have in circulation, exclusive of an amount 
 equal to the amount of the gold and silver coin held by the 
 Bank of Ireland as herein provided. 
 
 13. That it shall not be lawful for any banker who shall but not resume 
 have so agreed to relinquish the privilege of issuing bank the lssue> 
 notes at any time thereafter to issue any such notes. 
 
 14. That from and after the 6th day of December, 1845, it Limitation of 
 shall not be lawful for any banker in Ireland to have in chculadon! m 
 circulation, upon the average of a period of four weeks, to be 
 ascertained as hereinafter mentioned, a greater amount of 
 
lii. 
 
 Appendix II. 
 
 Issue of notes 
 for fractional 
 parts of a pound 
 prohibited. 
 
 Issuing banks to 
 render accounts 
 weekly. 
 
 notes than an amount composed of the sums certified by the 
 commissioners of stamps and taxes as aforesaid, and the 
 monthly average amount of gold and silver coin held by such 
 banker during the same period of four weeks, to be ascer- 
 tained in manner hereinafter mentioned. 
 
 15. That all bank notes to be issued or re-issued in 
 Ireland after the 6th day of December, 1845, shall be 
 expressed to be for payment of a sum in pounds sterling, 
 without any fractional parts of a pound ; and if any banker 
 in Ireland shall from and after that day make, sign, issue, or 
 re-issue any bank note for the fractional part of a pound 
 sterling, or for any sum together with the fractional part of a 
 pound sterling, every such banker so making, signing, 
 issuing, or re-issuing, any such note as aforesaid shall for 
 each note so made, signed, issued, or re-issued forfeit or pay 
 the sum of £ 20 . 
 
 16. That every banker who after the 6th day of December, 
 1845, shall issue bank notes in Ireland shall, on some one 
 day in every week after the 13th day of December, 1845 
 (such day to be fixed by the commissioners of stamps and 
 taxes), transmit to the said commissioners a just and true 
 account of the amount of bank notes of such banker in 
 circulation at the close of the business on the next preceding 
 Saturday, distinguishing the notes of ^5 and upwards, and 
 the notes below £$, and also an account of the total amount 
 of gold and silver coin held by such banker at each of the 
 head offices or principal places of issue in Ireland of such 
 banker at the close of business on each day of the week 
 ending on that Saturday, and also an account of the total 
 amount of gold and silver coin in Ireland held by such 
 banker at the close of business on that day ; and on com- 
 pleting the first period of four weeks, and so on completing 
 each successive 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, distinguishing the bank notes of £5 and upwards, 
 and the notes below £ 5 , and the average amount of gold and 
 silver coin respectively held by such banker at each of the 
 head offices or principal places of issue in Ireland of such 
 banker during the said four weeks, and also the amount of 
 bank notes which such banker is, by the certificate published 
 as aforesaid, authorized to issue under the provisions of this 
 act ; and every such account shall be verified by the signa- 
 nature of such banker or his chief cashier, or in the case of a 
 
Appendix II. 
 
 liii. 
 
 company or partne rship by the signature of the chief cashier 
 or other officer duly authorized by the directors of such 
 company or partnership, and shall be made in the form to 
 this act annexed marked (A.) : 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 ;£ioo for every such offence. 
 
 17. That all bank notes shall be deemed to be in circula- 
 tion from the time the same shall have been issued by any 
 banker, or any servant or agent of such banker, until the 
 same shall have been actually returned to such banker, or 
 some servant or agent of such banker. 
 
 18. That from the returns so made by each banker to the 
 commissioners of stamps and taxes the said commissioners 
 shall at the end of the first period of four weeks after the said 
 6th day of December, 1845, an( ^ so at the end of each suc- 
 cessive period of four weeks, make out a general return in 
 the form to this act annexed marked (B.) of the monthly 
 average amount of bank notes in circulation of each banker 
 in Ireland during the last preceding four weeks, and of the 
 average amount of all the gold and silver coin held by such 
 banker during the same period, and certifying, under the 
 hand of any officer of the said commissioners duly authorized 
 for that purpose in the case of each such banker, whether 
 such banker has held the amount of coin required by law 
 during the period to which the said return shall apply, and 
 shall publish the same in the next succeeding Dublin Gazette 
 in which the same can be conveniently inserted. 
 
 19. That for the purpose of ascertaining the monthly 
 average amount of bank notes of each banker in circulation, 
 the aggregate of the amount of bank notes of each such ban- 
 ker in circulation at the close of the business on the Saturday 
 in each w 7 eek during the first complete period of four weeks 
 next after the 6th day of December, 1845, shall be divided 
 by the number of weeks, and the average so ascertained shall 
 be deemed to be the average of bank notes of each such ban- 
 ker in circulation during such period of four weeks, and so 
 in each successive period of four weeks ; and the monthly 
 average amount of gold and silver coin respectively held as 
 aforesaid by such banker shall be ascertained in like manner 
 from the amount of gold and silver coin held by such banker 
 at the head offices or principal places of issue of such banker 
 in Ireland, as after mentioned, at the close of business on 
 
 What shall be 
 deemed to be 
 bank notes in 
 circulation. 
 
 Commissioners 
 of stamps to 
 make a monthly 
 return. 
 
 Mode of ascer- 
 taining the 
 average amount 
 of bank notes of 
 each banker in 
 circulation, and 
 gold coin, during 
 the first four 
 weeks after the 
 6th day of 
 December, 1845. 
 
liv. 
 
 What shall be 
 taken in the ac- 
 count of coin 
 held by any 
 banker. 
 
 Silver coin not 
 to exceed the 
 proportion of 
 one quarter of 
 gold. 
 
 All bankers to 
 return their 
 names once a 
 year to the 
 stamp office. 
 
 Appendix II. 
 
 such day in each week ; and the monthly average amount of 
 bank notes of each such banker in circulation during any 
 such period of four weeks is not to exceed a sum made up by 
 adding the amount certified by the commissioners of stamps 
 and taxes as aforesaid and the monthly average amount of 
 gold and silver coin held by such banker as aforesaid during 
 the same period. 
 
 20. That in taking account of the coin held by any banker 
 in Ireland with respect to which bank notes to a further ex- 
 tent than the sum certified as aforesaid by the commissioners 
 of stamps and taxes may, under the provisions of this act, be 
 made and issued, there shall be included only the gold and 
 silver coin held by such banker at the several head offices or 
 principal places of issue in Ireland of such banker, such head 
 offices or principal places of issue not exceeding four in num- 
 ber, of which not more than two shall be situated in the same 
 province ; and every banker shall give notice in writing to 
 the said commissioners, on or before the 6th day of Decem- 
 ber next, of such head offices or principal places of issue at 
 which the account of gold and silver coin held by him is to 
 be taken as aforesaid ; and no amount of silver coin exceed- 
 ing one fourth part of the gold coin held by such banker as 
 aforesaid shall be taken into account, nor shall any banker 
 be authorized to make and issue bank notes in Ireland on 
 any amount of silver coin held by such banker exceeding the 
 proportion of one fourth part of the gold coin held by such 
 banker as aforesaid. 
 
 22. That every banker in Ireland, other than the Bank of 
 Ireland, who is now carrying on or shall hereafter carry on 
 business as such, shall, on the 1st day of January in each 
 year, or within 15 days thereafter, make a return to the com- 
 missioners of stamps and taxes, at their office in Dublin, of 
 his name, residence, and occupation, or, in the case of a 
 company or partnership, of the name, residence, and occu- 
 pation 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 shall omit or refuse to 
 make such return within 15 days after the said 1st day of 
 January, or shall wilfully make other than a true return of 
 the persons as herein required ; every banker so offending 
 shall forfeit or pay the sum of ^50 ; and the said commis- 
 sioners of stamps and taxes shall on or before the 1st day of 
 
Appendix IL 
 
 lv. 
 
 March in every year publish in the Dublin Gazette a copy of 
 the return so made by every banker. % 
 
 23. That if the monthly average circulation of bank notes Penalty on banks 
 of any banker, taken in the manner herein directed, shall at lssumg m excess, 
 any time exceed the amount which such banker is authorized 
 
 to issue and to have in circulation under the provisions of 
 this act, such banker shall in every case forfeit a sum equal 
 to the amount by which the average monthly circulation, 
 taken as aforesaid, shall have exceeded the amount which 
 such banker was authorized to issue and to have in circulation 
 as aforesaid. 
 
 24. That all promissory or other notes, bills of exchange, Notes for less 
 or drafts, or undertakings in writing, being negotiable or ^gotiabifTbi 
 transferable, for the payment of any sum or sums of money, Ireland. 
 
 or any orders, notes, or undertakings in writing, being 
 negotiable or transferable, for the delivery of any goods, 
 specifying their value in money less than the sum of 20s. in 
 the whole', heretofore made or issued, or which shall here- 
 after be made or issued in Ireland, shall, from and after the 
 1st day of January, 1846, be and the same are hereby 
 declared to be absolutely void and of no effect, any law, 
 statute, usage, or custom to the contrary thereof in anywise 
 notwithstanding ; and that if any person or persons shall, 
 after the 1st day of January, 1846, by any art, device, or 
 means whatsoever, publish or utter in Ireland any such notes, 
 bills, drafts, or engagements as aforesaid, for a less sum than 
 20s., or on wdiich less than the .sum of 20s. shall be due, and 
 which shall be anywise negotiable or transferable, or shall 
 negotiate or transfer the same in Ireland, every such person 
 shall forfeit and pay for every such offence any sum not , 
 exceeding £20 nor less than ^5, at the discretion of the 
 justice of the peace who shall hear and determine such offence. 
 
 31. And whereas a certain joint stock banking company, Provision in 
 
 called and known as “The Tipperary Joint Stock Bank,” a?bn°of d existTng 
 
 refrained from issuing its own bank notes, under a certain agreement be- 
 . . . ® „ r . _ . _ tween Bank of 
 
 agreement with the Governor and Company of the Bank of Ireland and 
 
 Ireland for the issue of the bank notes of the said governor Tipperary Joint 
 
 and company, which agreement is determinable by either 
 
 party upon certain notice to the other party, and it is just 
 
 that in case such agreement should at any time hereafter 
 
 during the continuance of this act be determined and put an 
 
 end to by the Governor and Company of the Bank of 
 
 Ireland, that the said Tipperary Joint Stock Bank should 
 
 receive by way of compensation such composition as here- 
 
lvi. 
 
 Appendix IT. 
 
 after mentioned • be it therefore enacted, that if the said 
 agreement shall be at any time hereafter during the con- 
 tinuance of this act determined or put an end to by the 
 Governor and Company of the Bank of Ireland, then and in 
 such case the said governor and company shall from the 
 termination of the said agreement pay and allow to the said 
 Tipperary Joint Stock Bank, so long as the latter shall 
 continue to carry on the business of a bank and to issue 
 exclusively the notes of the Governor and Company of the 
 Bank of Ireland, a composition at and after the rate of one 
 per centum per annum on the average annual amount of the 
 Bank of Ireland notes issued by the said Tipperary Joint 
 Stock Bank, and kept in circulation, such average annual 
 amount to be ascertained by the Bank of Ireland in the 
 manner provided for regulating the compensation to be made 
 to certain bankers by the Bank of England in and by the act 
 passed in the 7th and 8th years of the reign of her present 
 
 7 & 8 Viet. c. 32. Majesty, intituled “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 ;” 
 provided always, that the total sum payable to the Tipperary 
 Joint Stock Bank by way of composition as aforesaid in any 
 one year shall not exceed one per cent, on an amount that 
 hath been agreed on by and between the Bank of Ireland and 
 the Tipperary Joint Stock Bank, and certified by both 
 banks to the commissioners of stamps and taxes ; and such 
 composition shall cease to be payable from and after the 1st 
 day of January, 1856. 
 
 Interpretation 3 2. That the term “bank note” used in this act shall 
 
 ofac1, extend and apply to all bills or notes for the payment of 
 
 money to the bearer on demand ; and that the term “ banker” 
 shall, when the Bank of Ireland be not specially excepted, 
 extend and apply to the Governor and Company of the Bank 
 of Ireland, and to all other corporations, societies, partner- 
 ships, and persons, and every individual person carrying on 
 the business of banking, whether by the issue of bank notes 
 or otherwise ; and that the word “coin” shall be construed to 
 mean the coin of this realm ; and that the word “person” 
 used in this act shall include corporations ; and that the 
 singular number used in this act shall include the plural 
 number, and the plural number the singular, except where 
 there is anything in the context repugnant to such construc- 
 tion ; and that the masculine gender in this act shall include 
 the feminine, except where there is anything in the context 
 repugnant to such construction. 
 
INDEX, 
 
INDEX, 
 
 
 
 Page. 
 
 Abercorn, The Earl of : His project for ; 
 
 an Irish Bank . 66 
 
 Acceptance — .... 
 
 . 
 
 • * 55 . *6o 
 
 4 4 Differing ” . 
 
 
 162 
 
 For gambling debt 
 
 
 157 
 
 For illegal or immoral purposes 
 
 
 157 
 
 For stock-jobbing debt 
 
 
 157 
 
 “ For honour ” of drawee 
 
 
 193 
 
 “ General ” . 
 
 
 160 
 
 Must be by drawee 
 
 
 162 
 
 On blank stamp 
 
 
 163 
 
 “ Particular ” 
 
 
 . l6l, 190 
 
 Presentation for 
 
 
 187 
 
 “ Qualified ” or 4 ‘conditional ” 
 
 
 I63 
 
 “ Special ” . 
 
 
 * . l6l 
 
 Suing on 
 
 
 l6l 
 
 “ Supra protest ” 
 
 
 193 
 
 What it admits 
 
 
 . . I64 
 
 Acceptor — When his liability is discharged 
 
 
 191 
 
 Not entitled to notice of dishonour 
 
 
 197 
 
 Accommodation Bill . 
 
 
 159, 166, 199 
 
 Administrator’s current account 
 
 
 120 
 
 Endorsement . 
 
 
 I24 
 
 “ After Sight ”... 
 
 
 . . 164, 165 
 
 Agent — Cannot bind his principal in bill 
 
 
 168 
 
 Cannot overdraw principal’s current account 
 
 151 
 
 Endorsement by 
 
 
 125 
 
 Agricultural Bank, The 
 
 
 89 
 
 Alexander the Great, Coinage of . 
 
 
 19 
 
 Alexander’s Bank (Dublin) . 
 
 
 76 
 
lx. 
 
 Index. 
 
 Alexanders & Co. (Ipswich) . 
 
 
 
 Page. 
 
 52 
 
 Alien Enemy as party to a bill . 
 
 
 
 171 
 
 Allan, Alexander & Co. 
 
 
 
 55 
 
 Allen, Robert & Co. (Scotland) 
 
 
 
 55 
 
 Allonge .... 
 
 
 
 184 
 
 Alteration in bill 
 
 
 
 202 
 
 in cheque . 
 
 
 
 115 
 
 Amount necessary in cheque 
 
 
 
 114 
 
 in Bill 
 
 
 
 165 
 
 Amtserdam, Bank of 
 
 
 
 25 
 
 “ And Company ” Crossing, Origin of 
 
 
 
 128 
 
 Anderson’s Bank 
 
 
 
 78 
 
 Argentarii, Ancient Roman Bankers . 
 
 
 
 19 
 
 Aryandis, The Satrap of Egypt, First who struck coins 
 
 14 
 
 Ashley, Lord — H is plan to close the Exchequer 
 
 
 35 
 
 Assent by a Banker, Consequences of 
 
 
 
 153, 162 
 
 Assignee’s Current Account 
 
 
 
 120 
 
 Assignment of Policy 
 
 
 
 21 1 
 
 Assyria, Ancient Banking in 
 
 
 
 14 
 
 “At Sight” .... 
 
 
 118, 
 
 164, 165 
 
 Attorney Partnership in Respect to Bills 
 
 . 
 
 168 
 
 Ba bylonia, Ancient Banking in 
 
 . 
 
 
 14 
 
 Backwell, Edward — A London Goldsmith . 
 
 
 37 
 
 Balance Sheets, False 
 
 
 
 237 
 
 Ball & Co. 
 
 
 
 76 
 
 Bank, Derivation of the word 
 
 
 
 92 
 
 Functions of a 
 
 
 
 93 
 
 Holidays . 
 
 
 
 138 
 
 Bank Notes 
 
 
 
 159, 216, 224 
 
 Antiquity of . 
 
 
 
 12 
 
 Do not lapse . 
 
 
 
 . 226 
 
 Invented in Europe . 
 
 
 
 . 26 
 
 Forged or worthless . 
 
 
 
 . 225, 227 
 
 For 30s. and £2 
 
 
 
 . 221 
 
Index. 
 
 lxi. 
 
 
 
 
 Page. 
 
 Bank Notes ( Continued ). 
 
 
 
 
 Halved .... 
 
 
 
 226 
 
 Lost ..... 
 
 
 
 226 
 
 Protested .... 
 
 
 
 224 
 
 Under £i, abolished in Ireland 
 
 
 
 219 
 
 Bank of Amsterdam .... 
 
 
 
 25 
 
 Bank of Barcelona .... 
 
 
 
 25 
 
 Bank of Berlin .... 
 
 
 
 26 
 
 Bank of Copenhagen .... 
 
 
 
 26 
 
 Bank of England .... 
 
 
 
 45 
 
 Authorised issue of . 
 
 
 
 48, 49 
 
 Banking department of 
 
 
 
 49 
 
 s Business practice of . 
 
 
 
 47 
 
 Dates when various notes were issued 
 
 
 47 
 
 Directors of, qualifications 
 
 
 
 50 
 
 Founded 
 
 
 
 45 
 
 Garden of 
 
 
 
 46 
 
 Government debt to . 
 
 
 
 47 
 
 Issue Department 
 
 
 
 49 
 
 Issues Post Bills 
 
 
 
 46 
 
 Notes not legal tender in Ireland 
 
 
 
 139 
 
 Opens branches 
 
 
 
 46 
 
 Panics affecting 
 
 
 
 48 
 
 Post Bills 
 
 
 
 187 
 
 “Reserve” . 
 
 
 
 49 
 
 .Suspends payment 
 
 
 
 46 
 
 Bank of France .... 
 
 
 
 27 
 
 Bank of Geneva .... 
 
 
 
 25 
 
 Bank of Genoa .... 
 
 
 
 25 
 
 Bank of Hamburg .... 
 
 
 
 26 
 
 Bank of Ireland .... 
 
 
 
 80 
 
 Bonuses distributed by 
 
 
 
 82 
 
 Capital increased to present amount 
 
 
 
 81 
 
 Charter of . 
 
 
 
 80 
 
 Circulation in 1797 
 
 
 
 81 
 
 Circulation, fluctuations in 
 
 
 
 82 
 
 Circulation, present . 
 
 
 
 220 
 
 Commenced business 
 
 
 
 80 
 
 Country Branches opened 
 
 
 
 82 
 
lxii. 
 
 Index . 
 
 Bank of Ireland ( Continued ). 
 
 Dividends paid by 
 First Directors 
 Founded 
 
 Liability of Stockholders in 
 Only Irish Bank which manufactures its note 
 Qualifications of Directors 
 Removed from Mary’s Abbey to Houses of 
 Parliament 
 
 Suspends payment of 
 Note protested 
 
 notes 
 
 Bank of the Netherlands 
 Bank of Rotterdam . 
 Bank of Scotland 
 Bank of St. George 
 Bank of St. Petersburg 
 
 Bank of Stockholm 
 
 PacxE. 
 
 82 
 
 80 
 
 80 
 
 80 
 
 224 
 
 80 
 
 81 
 
 8l 
 
 83, 224 
 
 26 
 26 
 54 
 
 25 
 
 27 
 
 26 
 
 Bank of Venice ...... 24 
 
 Bank Post Bills . . . . . . 205 
 
 Bank Post Bills under £5 • . . . . 205 
 
 Bankers’ Act (33 Geo. III. c. 14.) . . . . 74 
 
 Bankers’ Bills ...... 187 
 
 Bankers’ Drafts ...... 205 
 
 Bankers’ License . . . . . . 217 
 
 Bankers Plundered by Charles II. . . . 35 
 
 Bankers, Early Dublin ..... 64 
 
 Banking, Antiquity of ..... 9 
 
 in Ireland ...... 63 
 
 in Scotland . . . . . . 54, 57 
 
 Reference to in New Testament . . . 12 
 
 Banking Act of 1879 • • • ■ ^ 242 
 
 Bankruptcy, derivation of the word .... 93 
 
 Bankruptcy of Acceptor of Bill . . . 189, 197, 198 
 
 of Drawer of cheque . . . . 145 
 
 of Party to Bill . . . . . 198 
 
 Banks of Issue . . . . . 95> 2I ^ 
 
 Banks which have Registered under Act of 1879 . 245 
 
Index. 
 
 Ixiii. 
 
 1 
 
 Barcelona, Bank of 
 
 
 
 
 Page. 
 
 25 
 
 Barclay, Bevan & Co. 
 
 
 
 
 42 
 
 Barnetts, Hoares & Co. 
 
 
 
 
 41 
 
 “ Bearer,” cheques payable to . 
 
 
 
 
 Il6 
 
 Beckett & Co. (Leeds) 
 
 
 
 
 52 
 
 Bellingham, Daniel 
 
 
 
 
 36 
 
 Belfast Bank 
 
 
 
 
 77, 87 
 
 Belfast Discount Co. 
 
 
 
 
 77 
 
 Bellamy v. Majoribanks, what it decided 
 
 
 
 
 129 
 
 Beresford, John Claudius & Co. 
 
 
 
 
 76 
 
 Berlin, Bank of 
 
 
 
 
 26 
 
 Bills of Exchange (see also Acceptance) 
 
 
 
 
 i 54 
 
 Accommodation Bills 
 
 
 
 
 i 59 
 
 Advantages of 
 
 
 
 
 154 
 
 Alteration in 
 
 
 
 
 202 
 
 Amount in . 
 
 
 
 
 165 
 
 Can be taken out of Statute of Limitations 
 
 203 
 
 Compulsory signing of 
 
 
 
 
 202 
 
 Constituent features of 
 
 
 
 
 165 
 
 Date on 
 
 
 
 
 165 
 
 Definition of 
 
 
 
 
 i55 
 
 Differing acceptance 
 
 
 
 
 162 
 
 Differ from Cheques 
 
 
 
 
 155 
 
 Discount 
 
 
 
 
 199 
 
 Dishonour of 
 
 
 
 
 190 
 
 Do not require a consideration 
 
 
 
 i57 
 
 Drawee 
 
 
 
 
 166 
 
 Drawer 
 
 
 
 
 166 
 
 Drawn in sets 
 
 
 
 
 204 
 
 Foreign 
 
 
 
 
 203 
 
 Introduced into commerce . 
 
 
 
 i 54 
 
 Introduced into England 
 
 
 
 
 31 
 
 Left for acceptance 
 
 
 
 
 163 
 
 Loan on 
 
 
 
 
 200 
 
 Lodged for collection 
 
 
 
 
 200 
 
 Lost Bill . 
 
 
 
 
 203 
 
 Need not be on paper 
 
 
 
 
 165 
 
 Need not be written in ink 
 
 
 
 165 
 
 Notice of Dishonour of 
 
 
 
 
 193 
 
lxiv. 
 
 Index . 
 
 Bills of Exchange (Continued). 
 
 Payable at Acceptor’s Bankers 
 
 
 Page. 
 
 l6l 
 
 Payable at Bank where acceptor has \ 
 
 no 
 
 
 account . 
 
 
 162 
 
 Payee .... 
 
 
 166 
 
 Persons incapacitated to be parties to 
 
 
 168 
 
 Place where payable 
 
 
 166 
 
 Post Bills .... 
 
 
 205 
 
 Presentation for acceptance 
 
 
 187 
 
 payment . 
 
 
 188 
 
 Re-issue of . 
 
 
 183 
 
 Several Drawees on 
 
 
 163 
 
 Specially payable . 
 
 
 184 
 
 Stamp duties on 
 
 
 179 
 
 Suing on . 
 
 
 l6l 
 
 Time when payable 
 
 
 165 
 
 Transfer of. 
 
 
 184 
 
 Usual form of 
 
 
 160 
 
 “Value received the words, 
 
 
 166 
 
 When dishonoured 
 
 
 190 
 
 Bills of Lading ..... 
 
 
 187 
 
 As security .... 
 
 
 212 
 
 Bills of Sale ..... 
 
 
 213 
 
 Bill Stamp, exhausted by one transaction 
 
 
 183 
 
 Blackstone’s Illustration of utility of Bills of Exchange 
 
 
 154 
 
 Boyle, Low, Murray & Co. 
 
 
 76 
 
 Brass Money, coined in Dublin 
 
 
 60 
 
 England 
 
 
 28 
 
 Rome (Ancient) 
 
 
 18 
 
 British Linen Company’s Bank 
 
 
 55 
 
 Britons, Coinage of Ancient .... 
 
 
 28 
 
 Brokers (partners), position of in respect to Bills 
 
 
 168 
 
 Brutus, reference to 
 
 
 21 
 
 Burton and Falkener’s Bank 
 
 
 67 
 
 Caisse D’Escompte (France) . 
 
 “ Cannot Pay,” Insufficient answer of dishonour 
 
 26 
 
 143 
 
Index . 
 
 lxv. 
 
 Capital 
 
 
 
 
 
 Page. 
 
 230 
 
 Paid up 
 
 
 
 
 
 231 
 
 Subscribed 
 
 
 
 
 
 231 
 
 Carlin v. Ireland 
 
 
 
 
 
 134 
 
 Carrick & Co 
 
 
 
 
 
 55 
 
 “ Cash Credit ” 
 
 
 
 
 
 57 
 
 “ Cash Notes ” 
 
 
 
 
 
 33 
 
 Cash Order 
 
 
 
 
 
 160 
 
 Castlereagh, Lord, referred to 
 
 
 
 
 
 70 
 
 Cato, referred to 
 
 
 
 
 
 21 
 
 Certificate of Shares 
 
 
 
 
 
 233 
 
 Pledging 
 
 
 
 
 
 233 
 
 Do. by Stockbroker 
 
 
 
 233? 235 
 
 Charles I. seizes the Goldsmiths’ Monies 
 
 
 
 
 33 
 
 Charles II. robs the Exchequer 
 
 
 
 
 
 34 
 
 Tin coined by . 
 
 
 
 
 
 28 
 
 Cheques 
 
 
 
 
 
 hi 
 
 Alteration in 
 
 
 
 
 
 ii5 
 
 Amount in 
 
 
 
 
 
 114 
 
 Are not money 
 
 
 
 
 
 141 
 
 Criminal offences by means 
 
 of 
 
 
 
 
 147 
 
 Crossed 
 
 
 
 
 
 127 
 
 Date on 
 
 
 
 
 
 1 13 
 
 Dishonour of . 
 
 
 
 
 
 142 
 
 Drawee 
 
 
 
 
 
 112 
 
 Drawer’s signature 
 
 
 
 
 
 1 18 
 
 Drawn by Administrator 
 
 
 
 
 
 120 
 
 Assignees 
 
 
 
 
 
 120 
 
 Company 
 
 
 
 
 
 120 
 
 Corporation 
 
 
 
 
 
 120 
 
 Directors 
 
 
 
 
 
 120 
 
 Executors 
 
 
 
 
 
 120 
 
 Firm 
 
 
 
 
 
 120 
 
 Idiot 
 
 
 
 
 
 120 
 
 Infant 
 
 
 
 
 
 119 
 
 Joint account holders 
 
 
 
 
 120 
 
 Lunatic 
 
 
 
 
 
 120 
 
 Marksman 
 
 
 
 
 
 118 
 
lxvi. 
 
 Index. 
 
 Page. 
 
 Cheques (Continued). 
 
 Drawn by Married woman . . . . 119 
 
 Partners . . . . . 120 
 
 Trustees . . . . . 120 
 
 Essential constituents of . . . . 112 
 
 Form of . . . . . . 112 
 
 Free gift of . . . . . . 152 
 
 For illegal or immoral purposes . * . . 145 
 
 Known by ancient Grecian bankers . . . 18 
 
 Roman bankers ... 20 
 
 In lodgment . . . . . 140 
 
 In payment of Bill of Exchange . . . 142, 189 
 
 Initialing for payment . . . . 136, 141 
 
 Lost . . ... . 146 
 
 Mutilated ...... 145 
 
 On engraved forms . . . . 140 
 
 Originate in England .... 34 
 
 Payee ...... 116 
 
 Right to sue on . . . . . 132 
 
 Specially payable . . . . . u8 
 
 Stamp on . . . . . . 31 1 
 
 Stopping payment of . . . . 142 
 
 Under £ 1 . . . . . . n 4 
 
 When paid ..... 147, 151 
 
 Chichester, Mint at ..... 27 
 
 Child & Co. ....... 49 
 
 China, Ancient banking in .... 10 
 
 City of Glasgow Bank ..... 56 
 
 Failure of . . . 242 
 
 Circular Notes ...... 206 
 
 Circulation ....... 216 
 
 Of Irish banks ..... 220 
 
 Profits of . . . . . . 223 
 
 Clergymen, Cannot be Directors of Bank . . . 235 
 
 Clifford, Sir Thomas, referred to ... 35 
 
 Clipping Coin ...... 29 
 
 Cochrane v. O’Brien ...... 108 
 
 Cocks, Biddulph & Co. ..... 44 
 
Index. 
 
 Ixvii. 
 
 Coin, Current and manufactured 
 Made sterling 
 
 To be held against note issues 
 Coinage, Ancient Chinese 
 • ,, Grecian 
 
 ,, Jewish 
 ,, Lydian 
 ,, Roman 
 Early English 
 ,, Irish 
 
 Collateral Securities 
 Colebrooke, Sir George & Co . 
 
 Collier, John .... 
 Colville, John .... 
 Colchester, Roman Mint at 
 Commercial Bank (Belfast) 
 
 Company, Cheques drawn by 
 Endorsement by 
 As party to a Bill of Exchange 
 Composition Duties on Notes 
 Condition of Banking in Ireland in 1753 
 Conditional Acceptance 
 Conditional Endorsement 
 Confidential Reports by Bankers . 
 
 Consideration, not necessary to Bill of Exchang 
 not requisite in Guarantie 
 Contract by Banking Company 
 Convicted Felons, as parties to Bill of Exchange 
 Conyngham, reference to Marquess of 
 
 Copenhagen, Bank of 
 Copper Coined by Servius Tullius 
 in England 
 
 Corporations, Cheques drawn by 
 Endorsement by . 
 
 As parties to Bill of Exchange • 
 Cotter & Co., Sir James 
 
 Page. 
 
 30 
 
 29 
 
 219 
 
 12 
 
 17 
 
 IO 
 
 l6 
 
 18 
 
 28 
 59 
 21 1 
 
 75 
 
 35 
 
 39 
 
 28 
 
 77 
 
 120 
 
 125 
 
 171 
 
 219 
 
 73 
 
 163 
 
 164 
 209 
 
 157 
 
 241 
 
 236 
 
 171 
 
 67 
 
 26 
 
 18 
 
 30 
 
 120 
 
 I2 5 
 
 171 
 
 78 
 
Ixviii. 
 
 Index . 
 
 Page. 
 
 Counterfeit Coin, payment in 
 
 
 
 139 
 
 Coutts & Co. ..... 
 
 
 
 42 
 
 Credit, Letters of .... 
 
 
 
 206 
 
 Marginal 
 
 
 
 207 
 
 Criminal Offences, by means of Cheques 
 
 
 
 147 
 
 Criminal Offences by Directors 
 
 
 
 237 
 
 “ Crockards,” a base Irish coih 
 
 
 
 60 
 
 Cromwell, Banking under 
 
 
 
 33 
 
 Crowns and Half-Crowns Coined . 
 
 
 
 30 
 
 Crossed Cheques .... 
 
 
 
 127 
 
 Origin of 
 
 
 
 127 
 
 “ Generally ” . 
 
 
 
 127 
 
 “Specially” . 
 
 
 
 127 
 
 Curran, reference to .... 
 
 
 
 70 
 
 Current Account .... 
 
 
 
 103, hi 
 
 Differs from deposit account . 
 
 
 
 hi 
 
 Interest on 
 
 
 - 
 
 150 
 
 Overdrawn 
 
 
 
 150 
 
 Date on Cheque .... 
 
 
 
 113 
 
 on bill .... 
 
 
 
 165 
 
 Dawson’s Bank .... 
 
 
 
 72 
 
 Days of Grace .... 
 
 
 
 155. 157, 188 
 
 Death of Acceptor 
 
 
 
 197 
 
 of Drawer 
 
 
 
 hi, 145, 146 
 
 of Endorser 
 
 
 
 145 
 
 Deed of Transfer 
 
 
 
 235 
 
 Deeds as Securities 
 
 
 
 - . 212 
 
 Delacour’s Bank 
 
 
 
 78 
 
 Delay in Presentation of Cheque . 
 
 
 
 • 137, 138 
 
 Demar or Damer, The Dublin usurer . 
 
 
 
 64 
 
 Deposit for safe custody 
 
 
 
 214 
 
 Letter of . 
 
 
 
 212 
 
 of goods .... 
 
 
 
 213 
 
 of securities 
 
 
 
 , 211 
 
Index. 
 
 lxix. 
 
 Depositor, as guarantor or security 
 
 Page. 
 
 109 
 
 Deposit Receipt ..... 
 
 • 103, 105 
 
 Double liability of bank under a, 
 
 * 108 
 
 Exempt from stamp duty 
 
 IIO 
 
 In joint names .... 
 
 106 
 
 In name of Infant 
 
 107 
 
 Married woman 
 
 107 
 
 Spinster . 
 
 107 
 
 In several names 
 
 106 
 
 Not transferable 
 
 . 107 
 
 Deposits of Money, originate in England 
 
 33 
 
 Dillon’s Bank ...... 
 
 72 
 
 Directors of joint stock companies 
 
 230 
 
 Acceptance by .... 
 
 172 
 
 Bill drawn by . 
 
 172 
 
 Cheque drawn by ... 
 
 120 
 
 Traffic in Shares by 
 
 233 
 
 Clergymen cannot be ... 
 
 235 
 
 Criminal offences by ... 
 
 2 37 
 
 Duties and qualifications of . 
 
 . 236, 246 
 
 False or fraudulent representations by 
 
 • 234, 237 
 
 Misrepresentations by 
 
 22 
 
 Disclosure of Customer’s Account , 
 
 H 3 
 
 Discount . 
 
 199 
 
 Principle of, known in Ancient Greece 
 
 18 
 
 „ „ >i Rome 
 
 21 
 
 " Discounts ” 
 
 154 
 
 Dishonest Custodian ..... 
 
 215 
 
 Dishonour of acceptance .... 
 
 . l6l, 162 
 
 of cheque ..... 
 
 . I42 
 
 “ Cannot pay ” . 
 
 143 
 
 “ No account ” 
 
 I44 
 
 “No funds”. 
 
 144 
 
 “ N. S.,” or “ not sufficient funds ” 
 
 I44 
 
 “ Present again ” . 
 
 I44 
 
 “ Refer to Drawer ” 
 
 144 
 
 Notice of . 
 
 I44 
 
 Remedy for 
 
 197 
 
lxx. 
 
 Index . 
 
 Page. 
 
 Dishonour of Cheque ( Continued), Wrongful . . 144 
 
 Dividend, Payment of un-earned .... 237 
 
 Dock Warrants as Security . . . . . 212 
 
 Drafts, Bankers' ...... 205 
 
 Known by ancient Babylonian Bankers . 15 
 
 ,, Grecian Bankers . . 18 
 
 Drawee of Bill, when dead or bankrupt . . . 189 
 
 Drawee’s Name on Bill of Exchange .... 66 
 
 on Cheque . . . . 112 
 
 Drawer of Cheque, who can be . . . . 119 
 
 Drawer’s Signature on Bill of Exchange . . . 166 
 
 on Cheque . . . . 119 
 
 Drummond’s Bank ...... 42 
 
 Drunkenness of party to bill of exchange . . . 17 1 
 
 Dublin Bankers, Early ..... 63 
 
 Dublin Mints, Old . . .... 59 
 
 Dundee Bank ....... 56 
 
 Edinburgh and Glasgow Bank .... 56 
 
 Edward I. Banishes Jews from England . . . 31 
 
 Egibi & Co., the great Babylonian Bankers . . . 14 
 
 Egypt, Ancient banking in . . . . . 13 
 
 Endorsement, What it is . . . . . 121 
 
 By administrator . . . . . 124 
 
 By agent ...... 125 
 
 By companies and corporations . . . 125 
 
 By executor . . . . . 124 
 
 By two or more payees . . . . 125 
 
 By way of acknowledgment . . . 125 
 
 For the payee . . . . . 123 
 
 In pencil ...... 123 
 
 44 Lodge,” or 4 4 lodged to account,” in an . 124 
 
 On cheque payable to Messrs. . . . 124 
 
 44 Mr.” or 44 Mrs. ” . 123 
 
 44 Senior ” or 44 Junior ” . 142 
 
 156, 186 
 
 On bill 
 
index. lxxi. 
 
 Page. 
 
 Endorsement (Continued). 
 
 Per procuration . . . . . 123 
 
 Restrictive . . . . . 185 
 
 When irregular . . . . . 122 
 
 When regular . . . . . 122 
 
 Endorser, On bill of exchange, liability of . 185, 191 
 
 As surety ...... 191 
 
 England, Bank of 
 
 (See Bank of England) 
 
 English and Irish Bank, The .... 87 
 
 Enquiries, Confidential ...... 209 
 
 Entry in Bank Pass Book . . , . . 150 
 
 False . . . . 150 
 
 Erasure of Crossing on Cheque 129 
 
 European Bank (Dublin) . 87 
 
 Exchange, Bill of 
 
 (See Bills of Exchange) 
 
 Exchequer closed by Charles II. . , . . 35 
 
 Executors’ Current Account . 120 
 
 Executors, Endorsement by . . . . 124 
 
 Fade & Co.’s Bank ...... 71 
 
 Failure to Present Bill of Exchange ... 190 
 
 False Entries 
 
 Accounts ..... 227 
 
 Balance Sheet .... 237 
 
 Farthings, First coined in Dublin .... 59 
 
 Felons as parties to bill of exchange . . . . 171 
 
 Feversham, Earl of, referred to ... 41 
 
 French’s Bank . . ... . . 76, 78 
 
 Fife Bank ....... 56 
 
 Finlay’s Bank . . . . • * . 72, 76 
 
 Firm, Cheques drawn by . . • • • • 120 
 
 Fitzgerald, Lord Edward, reference to . 70 
 
lxxii. 
 
 Index. 
 
 Page. 
 
 Flood, Reference to Mr. . . . . . ■ 70 
 
 Florence, Banks of ..... 23 
 
 Florins . . . . . . . 29, 30 
 
 Forbes’ (Lord), Bank project ..... 66 
 
 Sir William & Co. ..... 55 
 
 Foreign Bills ....... 203 
 
 Stamp on . . . . . 182 
 
 Protest of . . . . . . 192 
 
 Foreign Letters of Credit in Ancient Rome . . 22 
 
 Forged Bank Notes ...... 225, 227 
 
 Passed to banker . . . . 225 
 
 Forged Endorsement ..... 122, 147, 162 
 
 Forgery of Cheque . . . . . . 114, 147 
 
 of letter of credit ..... 206 
 
 of name to Transfer of Shares .... 235 
 
 Foster (Mr. Speaker), Reference to ... 70 
 
 Fourjpenny Pieces first coined .... 30 
 
 France, Bank of ...... 27 
 
 Fraudulent Bank Note Plates, .... 228 
 
 Fraudulent Purpose, Cheque for .... 146 
 
 Fuller, Banbury & Co. . . . . . 43 
 
 Furfidius, A Roman Money Lender .... 21 
 
 Gambling Debt, Acceptance for . < . 157 
 
 Garfit & Co. (Boston) ...... 52 
 
 4 4 General Acceptance ” ..... 161 
 
 Geneva, Bank of . . . . . . 25 
 
 Genoa, Bank of ...... 25 
 
 Gift of Cheque ...... 152 
 
 44 Giving Time ” • . . . . . 240 
 
 Glasgow Bank, City of ..... 56 
 
 Gleadowe & Co.’s Bank . . . . . 70 
 
 Glyn, Mills & Co. ...... 42 
 
 Godfrey, Michael, A founder of Bank of England . . 45 
 
Index. 
 
 Ixxiii. 
 
 Gold and Silver Coin held against note issues 
 Gold Coins, First English 
 Gold in Ancient Ireland . 
 
 Goldsmiths, Early Dublin 
 Early London 
 
 London, in Elizabeth’s reign 
 Plundered by Charles II. . 
 Goldsmths’ Notes 
 Goods, As securities 
 Goslings and Sharpe . 
 
 Grace, Days of 
 
 Grattan, reference to 
 
 Gray’s Bank .... 
 
 Greece, Banking in Ancient 
 
 Gresham, Sir Thomas 
 
 Guaranties to Endorsements on Cheques 
 
 * 
 
 Guaranties by third parties 
 Guarantie, Definition of 
 General 
 
 Giving time under . 
 
 Limit of by Guarantor 
 
 Specific 
 
 Verbal 
 
 When invalidated . 
 
 Withdrawal of 
 Guarantor of Bill 
 Guineas first coined 
 Guinness, Mahon & Co. 
 
 Page. 
 
 219 
 
 29 
 
 59 
 
 64 
 
 3i 
 
 33 
 
 35 
 
 33, 63, 157, 216 
 213 
 
 40 
 
 155, 157, 188 
 70 
 87 
 17 
 
 41 
 123 
 239 
 239 
 
 239 
 
 240 
 240 
 239 
 
 239 
 
 240 
 240 
 197 
 
 30 
 
 76 
 
 Half Notes . . . . . . . 226 
 
 Hamburgh, Bank of . . . . 26 
 
 Henry’s (Hugh), Bank . . . . . . 71 
 
 Henry VIII. a borrower from a goldsmith ... 33 
 
 Herries, Farquhar & Co. , 43 
 
 / 
 
Index . 
 
 lxxiv. 
 
 ' Page. 
 
 Hibernian Bank ...... 84 
 
 Part purchase of Union Bank by, . . 85 
 
 Hoare’s Bank ....... 40 
 
 Holidays, Bank . . . . . . . 138 
 
 Holder of Cheque has no action against Drawee . . 152 
 
 Horace, His character ot Furfidius the money lender . . 21 
 
 Horneby, Joseph ...... 38 
 
 Houblon, Sir John, First governor of Bank of England . 46 
 
 Hunters & Co. ....... 55 
 
 I. O. U . . 216, 228 
 
 Does not require stamp duty .... 229 
 
 Is not transferable ..... 229 
 
 Idiot, Cheque drawn by . . . . . . 120 
 
 As party to a Bill of Exchange . . . . 170 
 
 Illegal or Fraudulent Purpose, Acceptance for " . . 157 
 
 Cheque for . . 145, 146 
 
 Improperly Stamped Bill ..... 182 
 
 Infant, As Depositor . . . . . . 107 
 
 As Drawer of Cheque . . . . . 119 
 
 As Endorser on Bill of Exchange . . . 169 
 
 As party to Bills of Exchange . . . . 169 
 
 As agent . . . . . . 170 
 
 Initialing Cheque for future payment . . 136,141,145 
 
 Instalments, Promissory Note payable by , . . 159 
 
 Interest allowed on Current Accounts . . . . 150 
 
 Deposit Receipts .... 106 
 
 Charged on overdue Bills . . . . 201 
 
 Irish Banks, Early . . . ... 63 
 
 Irish Banks of Issue, Law regulating . . . . 216 
 
 Irish Coinage, Early ...... 59 
 
 Irish Joint Stock Banks . . . . .80,88 
 
 Failed .... 88 
 
 Irish Money assimilated to English . . . . 30, 62 
 
 ] ames II., his Brass Money , 61 
 
Index. 
 
 lxxv. 
 
 Page. 
 
 Jews, Banished by Edward I. ..... 32 
 
 Banished by Elizabeth ..... 23 
 
 Banking amongst the Ancient . . . . 10 
 
 Established Banking Houses in Europe ... 22 
 
 Examples of usurious practices of ... 32 
 
 Lombard . . . . v . . . 22, 32 
 
 Only Bankers in England . . . . 31 
 
 Persecution and plundering of . . . 31 
 
 Sent to England by Pope Gregory IX. . . 32 
 
 Joint and Several Promissory Note . . 158, 159, 172 
 
 Joint Current Account, Cheques drawn on . . 120 
 
 Joint Names in Deposit Receipt .... 120 
 
 Joint Promissory Note . . . . .158,159 
 
 Joint Stock Banks in Ireland ... 80, 88, 230 
 
 Joint Stock Company, as party to Bill . . . 172 
 
 Definition of . . . 230 
 
 John, Jews massacred by King ..... 32 
 
 Julius Caesar’s Coinage ..... 19 
 
 “ Junior ” in an Endorsement ..... 124 
 
 Kane, Nathaniel ...... 68 
 
 Kinnear & Sons ....... 55 
 
 Lamb, Samuel — A London Banker .... 33 
 
 Land Investments by Irish private Bankers ... 74 
 
 LaTouche’s Bank . . • . . 67, 87 
 
 Law Regulating Irish Note Issues . . . 216 
 
 Laws to regulate Banking in Ancient Rome . . . 20, 21 
 
 Leases as Securities . . . . . . 212 
 
 Leather Money in Ancient China .... 12 
 
 Leeman’s Act ...... 234 
 
 Legal Tender . . . . . . . 139 
 
 Leith Bank 56 
 
Jxxvi. 
 
 Index . 
 
 Leitrim (Earl of), Descent referred to 
 
 
 Page. 
 
 72 
 
 Lennox’s Bank ...... 
 
 
 71 
 
 Leofstan, a London Goldsmith 
 
 
 31 
 
 Letters of Credit ..... 
 
 
 206 
 
 Kn.wn in Ancient Greece . 
 
 
 18 
 
 ,, „ Rome . 
 
 
 21 
 
 Liability, Endorser can divest himself of 
 
 
 185 
 
 on Promissory Notes when destroyed 
 
 
 191 
 
 order of, on Bill of Exchange 
 
 
 190 
 
 of Bank Shareholders 
 
 
 231, 232 
 
 of Bankers for conduct of Agents and Correspondents 
 
 208 
 
 for false reports on customers 
 
 
 209 
 
 for goods deposited for safe custody 
 
 
 214 
 
 under forged or worthless Bank Notes 
 
 
 225 
 
 License, Banker’s * 
 
 
 217 
 
 Licensed Houses, Lease of, as security 
 
 
 212 
 
 Lien, what it is 
 
 
 207 
 
 General ...... 
 
 
 207 
 
 How extinguished .... 
 
 
 268 
 
 On Bills lodged for collection 
 
 
 200 
 
 On policy of Assurance .... 
 
 
 2 1 1 
 
 Specific ...... 
 
 
 20 7 
 
 Where a Banker has no lien 
 
 
 208 
 
 On Shares ..... 
 
 
 235 
 
 On Dividends ..... 
 
 
 233, 235 
 
 Lighton (Sir Thomas), Needham & Shaw’s Bank 
 
 
 76 
 
 Limitations, Statute of .... 
 
 
 202 
 
 Limited Companies ..... 
 
 
 231 
 
 As parties to Bills of Exchange 
 
 
 172 
 
 Limited Liability ..... 
 
 
 242 
 
 List of Shareholders, must be exhibited 
 
 
 234 
 
 Loan on Bills of Exchange .... 
 
 
 200 
 
 “ Lodge” and “ Lodged to Account” in an Endorsement 
 
 
 124 
 
 Lodgment with Banker, two descriptions of 
 
 
 102 
 
 for special purpose 
 
 
 152 
 
 Lombard Jews sent to England 
 
 
 22, 32 
 
 Lombard Street, Why so called 
 
 
 22 
 
Index . 
 
 lxxvii. 
 
 Page. 
 
 London and Dublin Bank . . . . 85, 88 
 
 London Bankers, Early . . . . . 31 
 
 Loss or Destruction of Bills lodged for collection . . 201 
 
 of goods deposited for safe custody . 214 
 
 Losses in Ireland occasioned by old note issues , . 82 
 
 Lost Bank Notes ...... 226 
 
 Lost Bill of Exchange ..... 203 
 
 Lost Cheque ....... 146 
 
 Lunatic, as party to a Bill . . . » , 170 
 
 Cheque drawn by . , . , , 120 
 
 Lydians, The inventors of coinage . . , , 16 
 
 Malone & Clements 5 Bank ..... 71 
 
 Marginal Letters of Credit .... 207 
 
 Marks coined in Dublin ..... 60 
 
 Marksman as drawer of Cheque . . , , 1 1 8 
 
 Married Woman as Depositor .... 107 
 
 as drawer of Cheque . . . . 119 
 
 as party to a Bill , , . . 170 
 
 as Shareholders .... 235 
 
 Martin and Co. (London) . , . . . 41 
 
 Martin v. Boure . . . . . . 154 
 
 Matthiesson and Another v. London and County Bank . 133 
 
 Maturity of a Bill of Exchange, How computed . 188 
 
 Maunsell’s Bank ...... 78 
 
 Meade and Curtis’s Bank ..... 67 
 
 Medley, Mr. (founder of London and Dublin Bank) . . 85, 88 
 
 Mensarii, Ancient Roman Bankers .... 20 
 
 “ Messrs.,” Endorsement of Cheque payable to . . . 124 
 
 Miles, Cave, Baillie & Co. (Bristol) . . . 52 
 
 Mints, Dublin ....... 59 
 
 Roman, in England ..... 28 
 
 Royal and other . . . . . 29 
 
 Saxon .... 29 
 
Ixxviii. 
 
 Index . 
 
 Misrepresentations by Directors 
 
 
 Page. 
 
 237 
 
 by Banker to Guarantor 
 
 
 240 
 
 Mitchell and Macarell’s Bank 
 
 
 72 
 
 Moneyers ” ...... 
 
 
 29 
 
 Money in payment of Bill .... 
 
 
 189 
 
 Money-Lending amongst the Jews 
 
 
 II 
 
 Montrose Bank ..... 
 
 
 56 
 
 Mornington, Countess of, referred to. 
 
 
 70 
 
 Moses, Laws of, against usury .... 
 
 
 1 1 
 
 “ Mr.” or “ Mrs.” in an Endorsement . 
 
 
 123 
 
 Munster Bank . ..... 
 
 
 86 
 
 Absorbs European Bank 
 
 
 87 
 
 Absorbs LaTouche’s Bank 
 
 
 87 
 
 Absorbs (partly) Union Bank of Ireland 
 
 
 87 
 
 Capital increased 
 
 
 87 
 
 Dividends paid by 
 
 
 87 
 
 Mutilated Cheque ..... 
 
 
 •45 
 
 N ational Bank (of Ireland) Absorbs London and Dublin Bank 
 
 85 
 
 Changes its title. 
 
 
 85 
 
 Dividends paid by. 
 
 
 85 
 
 Increases capital. 
 
 
 85 
 
 Opens London Branches. 
 
 
 85 
 
 National Debt, First European 
 
 
 24 
 
 National Land Bank of England 
 
 
 5i 
 
 Necessaries, Infant’s acceptance for 
 
 
 l 6 g 
 
 Negociatores, Ancient Roman Bankers 
 
 
 •9 
 
 Netherlands, Bank of the 
 
 
 26 
 
 Newenham’s Bank ..... 
 
 
 78 
 
 Newport & Co.’s (Simon) Bank 
 
 
 78 
 
 “No Account” ...... 
 
 
 144, 147 
 
 “No Funds” ....•• 
 
 
 • 44 
 
 Nobles Coined ..*••• 
 
 
 29 
 
 Non-acceptance, Notice of ... 
 
 
 • 87 
 
 Non Compos mentis, Party to a Bill ol Exchange 
 
 
 170 
 
Index . 
 
 Ixxix. 
 
 Page. 
 
 Non-endorsement, by Transferor .... 1 86 
 
 Non-presentation, When it relieves Acceptor . . 190 
 
 Norbury, Lord, referred to .... 70 
 
 Northern Bank . . . . . 77, 87 
 
 “ Not Negotiable,” Crossing ..... 132 
 
 What it means . . . . 135 
 
 “ Not Sufficient Funds” ..... 144,147 
 
 Note, Promissory (see Promissory Note) . . . 154 
 
 Note (Bank), Definition of . . . . . 216 
 
 Note-issue, A source of profit . , . . 95, 223 
 
 Relinquishment of . . . . . 219 
 
 Note-issues of Irish Banks ..... 216 
 
 Note of Hand (see Promissory Note) , , . . 158 
 
 44 Notes, ’’ for threepence ..... 79 
 
 Notes burned by populace ..... 76 
 
 Notice of Dishonour of Bill of Exchange . . . 193 
 
 Examples of sufficient . . . 195 
 
 ,, insufficient , . . 193 
 
 of non-acceptance , - . . . . 187 
 
 of withdrawal of Deposits . . . . 106 
 
 to Drawer and Endorsers . . . . 163 
 
 Noting ........ 192 
 
 Nummularii, Ancient Roman Bankers .... 20 
 
 Nuttall & McGuire’s Bank ..... 71 
 
 Obligations of Banker to his Customer . . . 103 
 
 Obliteration of crossing on Cheque . . . • 129 
 
 O’Connell (Daniel), Founder of National Bank of Ireland . 85 
 
 44 Order,” Cheque payable to ..... 117, 121 
 
 44 Ordinary Care” ...... 214 
 
 O’Reilly’s Money ...... 60 
 
 Origin of Crossed Cheques . . . . 127 
 
 Ostensible Partners . . . . . . 169 
 
 Otto, The first English Goldsmith . . ♦ « 31 
 
I XXX. 
 
 Index. 
 
 Page. 
 
 Overdrawn Current Account . . . . 150 
 
 Over-payment by Banker ..... 140 
 
 Paid Bill of Exchange . . . . . 186 
 
 Paid Cheques ....... 147 
 
 Surrender of . . . . . 147, 151 
 
 Paid-up Capital . . . . , . 231 
 
 Panic of 1820 . . . . . . 76, 77 
 
 Paper Money, in Ancient China . . . . . 12 
 
 Modern . . . . 159, 216, 224 
 
 Part Payment of Bill of Exchange . . . ,186, 190 
 
 of cheque . 143 
 
 Particular Acceptance ..... 161 
 
 Partly Paid Bill of Exchange . . . 186, 190 
 
 Partners, Ostensible ..... 169 
 
 Powers of, in respect to Bills of Exchange . . 168 
 
 Secret ...... 169 
 
 Partnership Current Account ... 120 
 
 Pasion, The great Grecian Banker . . . . 17 
 
 Pass Book ....... 149 
 
 Effect of Entry in . . . . 150 
 
 Past Due Bills, Interest upon ..... 201 
 
 Patent for Irish Coinage, Granted by Charles II. . , 61 
 
 Granted to Wood . . 62 
 
 Paterson, William — F ounder of Bank of England . . 45 
 
 Payee of Bill ....... 166 
 
 of Cheque . . . . . . . 116 
 
 Payment of Cheques . . . . . 139 
 
 Cannot be recalled . . . 140 
 
 Stopping . . . . . 142 
 
 Payment in Bank Notes ..... 139 
 
 in forged or worthless notes . . . . 139 
 
 in gold ...... 140 
 
 in spurious coin . . . . . 139 
 
 Pease’s Bank (Hull) ...... 52 
 
Index. lxxxi. 
 
 Page 
 
 Pecunia, Derivation of . . . . . . 18 
 
 Pence, first coined in Ireland ..... 59 
 
 Pencil, Bill of Exchange written in . . . 165 
 
 Endorsement in . . . . . . 123 
 
 Pepys (Samuel), quoted . v . . . 37^ 3 s 
 
 “ Per Procuration,” Bills drawn .... 164,168 
 
 Cheques endorsed . . . 123 
 
 Persons incapacitated to be parties to Bills of Ex- 
 change . . . , , . 168 
 
 Perth Bank . . . . , . 56 
 
 “Pieces of Silver,” Jewish .... 10 
 
 Pike’s Bank ....... 78 
 
 Place where payable, on Bill of Exchange . . . 166 
 
 Policy of Assurance as Collateral Security . . . 211 
 
 Pollards — a base Irish coin ..... 60 
 
 Pompey — an usurer . . . . . . 21 
 
 Portarlington, Earl of, referred to . . , . 65 
 
 Portman, John ...... 35 
 
 Post Bills ....... 205 
 
 Post Dated Bill of Exchange . . . . . 165 
 
 Drawn by Banker . . 165 
 
 Post Dated Cheque . . . . . . 1 1 3 
 
 Power of Sale over goods . . . . . 213 
 
 Praed’s Bank ...... 43 
 
 Premium on shares . . . . . . 232 
 
 Presentation of Bills of Exchange : — 
 
 For acceptance . 187 
 
 For payment . 188 
 
 Presentation of Cheques 
 
 Delay in . . . 138 
 
 Time of . . . . 137 
 
 “ Present Again ” ...... 144 
 
 Prescott, Grote & Co. ..... 43 
 
 Price’s (Mr. Hilton) Book oir London Bankers . . 31 
 
 Private Bankers 
 
 Dublin (early) . . • . 63 
 
Ixxxii. 
 
 Index . 
 
 Page. 
 
 Private Bankers (Continued). 
 
 Dublin (present) .... 76 
 
 English ..... 52 
 
 Do., issues of . . . 53 
 
 London (early) . . . . 31 
 
 Do. (present) .* . . . 42 
 
 in Scotland .... 55 
 
 Private Enquiries ...... 209 
 
 “Privity” . . . . . . . 153 
 
 Profits from note circulation ..... 223 
 
 Project to establish a National Irish Bank ... 66 
 
 Promissory Notes . . . . . . 154 
 
 Definition of . , . . 158 
 
 Drawn after sight . . . . 165 
 
 Joint ..... 158, 159 
 
 Joint and several . . . . 158, 159 
 
 Order of liability on . . , 191 
 
 Origin of ..... 157 
 
 Payable by instalments . , . 159 
 
 Presentation of . . . 190 
 
 Toone’sself .... 159 
 
 Specially payable . . . . 184 
 
 When not enforceable . 19 1 
 
 Protesting .... 192 
 
 “ for better security ” .... 192 
 
 Provident Bank of Ireland .... 89 
 
 Provincial Bank ...... 83 
 
 Capital increased .... 84 
 
 Dividends paid by ... 84 
 
 Qualified or Conditional Acceptance ... 163 
 
 Railway Company as party to a Bill of Exchange . . 172 
 
 Ramsay, Bonar u Co . . . . . . 55 
 
 Ransom, Bouverie & Co. .... . 43 
 
Index. 
 
 Ixxxiii. 
 
 * Page. 
 
 Rate of Discount ...... 199 
 
 Actual rale charged is in excess of apparent 
 
 rate . . . . 199 
 
 Rate of Interest Charged in Ancient Greece . . 17 
 
 in Ancient Rome . . 21 
 
 by London Goldsmiths . . 33 
 
 Ratification by Principal of Agent’s Act . . . 168 
 
 of acts done while drunk . , . 17 1 
 
 of Infants’ contracts .... 169 
 
 Reasonable Time of presentation of Bill of Exchange . . 189 
 
 Redmond’s Bank ...... 78 
 
 “ Refer to Drawer ” ..... 144 
 
 Refusal to Accept ...... 163 
 
 Refusal to Transfer Shares .... 235 
 
 Relations Between Banker and Customer . . 101 
 
 1 
 
 Release of Guarantor ..... 240 
 
 Remedy for Dishonour of Bill of Exchange . . . 197 
 
 of Cheque . . . . 152 
 
 Renfrewshire Bank. ...... 36 
 
 Reports on Customers, Banker’s .... 209 
 
 Restrictive Endorsement on Bill of Exchange . . 185 
 
 Richard I . massacres J ews . . . . . 31 
 
 Right to Sue on Bill of Exchange . . . . 136 
 
 on Cheque . . . , . 152 
 
 Robarts, Lubbock & Co. ..... 43 
 
 Roberts & Co. Sir Thomas ..... 78 
 
 Roche’s Bank ...... 78 
 
 Roche, Sir Boyle, referred to .... 70 
 
 Rome, Bankers in Ancient . . . . . 18 
 
 Rotterdam, Bank of ..... 26 
 
 Royal Bank of Ireland ..... 86 
 
 Absorbs Shaw’s Bank . . 86 
 
 Dividends paid by . . 86 
 
 Royal British Bank ..... 56 
 
 Rowe, Thomas ...... 39 
 
lxxxiv. 
 
 Index. 
 
 Page. 
 
 Sadlier, John, M.P. . . . . . . 89 
 
 Suicide of . . . . 90 
 
 Sadlier’s Bank ...... 89 
 
 “ Safe Custody 55 ...... 214 
 
 Sans Frais . . . . . . . 192 
 
 Sans Protet . . . . . . . 192 
 
 Sans Recours . . , . . , 185 
 
 Scotch Banks, Table of existing .... 58 
 
 Scotland, Banking in . . . . . . 54 
 
 Bank of ..... 54 
 
 Royal Bank of . ... . 55 
 
 Scott, Sir Samuel & Co. ..... 43 
 
 Scrip ........ 233 
 
 Scully’s Bank ' . . . . . 78, 89 
 
 Secret Partners . . . . . 169 
 
 Securities, Deposits of . . . . , 211 
 
 Realization of by Banker . . . . 1 5 1 
 
 “ Senior,” in an Endorsement .... 124 
 
 Separate Estate, a married woman’s . . . 119 
 
 Sets, Bills of Exchange drawn in ... . 204 
 
 Several Drawees on Bill of Exchange . . .163 
 
 Shares and Shareholders ..... 230 
 
 and Stock, Deposit of . . . . . 2 1 1 
 
 Transfer of ..... 232 
 
 Shares (Bank) Forgery of transfer . • . . . 235 
 
 Held by married woman . . . . 235 
 
 Held jointly ..... 235 
 
 Lien on . . . . 235 
 
 Purchase of by Bank itself . . . 236 
 
 Refusal to Transfer .... 235 
 
 Traffic in by Directors .... 238 
 
 Are personal property .... 233 
 
 Brokers contract for purchase of. . . 234 
 
 Shareholders, Bankruptcy of .... 233 
 
 When they can be tried individually . 233 
 
 Shaw, Sir Robert Sc Co. ... 76 
 
Index . 
 
 lxxxv. 
 
 Page. 
 
 Shekel, Jewish . . . . . . . io 
 
 Shetland Bank ...... 56 
 
 Shillings first coined ...... 30 
 
 “ Short Bills” . . . „ . . . . 201 
 
 Sight, at . . . . . . .118, 164 
 
 After ....... 164 
 
 Signature of Drawer of Bill .... 166 
 
 of Cheque . . . 1 1 2, 1 18 
 
 Signing on Compulsion ..... 220 
 
 Silver coined by Fabius . . . . . 18 
 
 Simmonds v. Taylor . . . . . . 135 
 
 Skill, Want of, in transacting customer’s business . . 104 
 
 Smith and Co. (Samuel), Nottingham ... 52 
 
 Smith, Donald & Co. ...... 55 
 
 Smith, Payne and Smiths ..... 43 
 
 Smith v. Union Bank of London . . . . 130 
 
 Snell, George ....... 38 
 
 Snow, Jeremiah . ...... 38 
 
 Societies, as parties to Bills of Exchange . . . 172 
 
 Southern Bank of Ireland ..... 89 
 
 Southwell, James— A Dublin usurer 
 Sovereigns first coined . 
 
 Special Acceptance 
 Special Lodgment 
 “ Specially Payable” 
 
 Specific Lien 
 
 Securities 
 
 Spinster as a Depositor . 
 
 Spurious Coinage by Ancient Britons .... 28 
 
 Spurious Notes, payment in . . . . 139 
 
 St. George, Bank of . . . . 25 
 
 St. Patrick coins money ..... 59 
 
 St. Petersburg, Bank of .... 27 
 
 “ Stale Cheque” ...... 137 
 
 Reason of non-payment of . , , 138 
 
 30 
 161 
 152 
 1 iS 
 207 
 
 213 
 
 107 
 
Ixxxvi. 
 
 Index. 
 
 Page. 
 
 Stamp Act, 1870 ...... 173 
 
 Stamp Duties ...... 179 
 
 Instruments exempt from . . . 182 
 
 On Bank Iftotes . . . . . 217 
 
 On Foreign Bills .... 204 
 
 paid by early Irish Private Bankers . . 79 
 
 Statute of Limitations ..... 202 
 
 Sterling, coins first styled ..... 29 
 
 Stirling Bank ...... 56 
 
 Stockholm, Bank of ..... 26 
 
 Stockjobbing Debt, acceptance for . . 157 
 
 Stopping Payment — of Bank Notes .... 224 
 
 of Cheques . . . . 142 
 
 Strahan, Paul & Bates ..... 39 
 
 Subscribed Capital ...... 231 
 
 Sue on a Bill, right to . . . .156, 161, 191 
 
 Cheque, right to . 152 
 
 Surrender of Bills of Lading . . . . 18S 
 
 Swift & Co., Bank of ..... 7 ° 
 
 Swift, Dean, his attacks on Wood’s halfpence ... 62 
 
 Elegy on John Darner . . . , 65 
 
 I estoons coined in Dublin . . . . • bo 
 
 Threepenny Pieces first coined .... 30 
 
 Tin, coinages of ...... 28 
 
 Tipperary Joint Stock Bank .... 89 
 
 Time when payable, of Bill of Exchange . . .15b. *65 
 
 Title Deeds as securities .... . 212 
 
 Tokens” ....... 61 
 
 Transfer of Bank Shares ..... 232 
 
 Transferor, Liability of an endorsing ... 18b 
 
 Trapezitae — The Bankers of Ancient Greece . . 18 
 
 Travers, Sheares and Travers (Cork) . . 79 
 
 Trusts not recognized in shareholdings . , , * 2 35 
 
Index. 
 
 lxxxvii. 
 
 Page. 
 
 Trustees, Cheques drawn by . . . . 120 
 
 Turner, Bernard ...... 38 
 
 Tuscany, Banking in the Middle Ages in . . 23 
 
 Two Current Accounts kept by one person % . . 152 
 
 Ulster Bank .... 
 Unaccepted Bill of Exchange 
 Undated Cheque 
 
 Undue Influence, Bill or note given under 
 Union Bank of Irei.and 
 Unfilled Stamp, Acceptance on 
 Unlimited Companies 
 Unlimited Liability . 
 
 Unstamped Bill of Exchange 
 Usury Laws Abolished 
 Usury, Laws Against : — 
 
 English 
 
 Irish 
 
 Mosaic 
 
 Roman 
 
 87 
 187 
 1 13 
 171 
 
 89 
 
 163 
 
 231 
 
 242 
 
 182 
 
 202 
 
 201 
 63 
 1 1 
 
 20 , 21 
 
 “ Value Received ” . 
 Venice, Bank of 
 Vyner, Sir Robert 
 S ir Thomas 
 
 167 
 
 24 
 
 3b 
 
 37 
 
 Welstead, Robert, a London Goldsmith^ 
 
 Western Bank of Scotland ..... 56 
 
 Whitehall, Gilbert, a London Goldsmith . . . 38 
 
 Wicklow Goldmines ..... 59 
 
 Williams and Finn, Dublin Bankers .... 76 
 
 Williams, Deacon and Co , . , 43 
 
lxxxviii. 
 
 / ndex . . 
 
 Page. 
 
 Winchester, Mint at ..... 29 
 
 Wood’s Bank, (Gloucester) ..... 52 
 
 Wood’s Halfpence ...... 62 
 
 Words of Acceptance on Bill of Exchange ... 163 
 
 Worthless Bank Notes, Liability under . . . 225 
 
 Wright & Co. (Nottingham) ..... 52 
 
 Wrongful Dishonour of Bill 193 
 
 of Cheque .... 144, 153 
 
 Yelverton, Barry, referred to .... 70 
 
 STATUT E S . 
 
 The Banking Copartnerships Regulation Act (1826) . . v. 
 
 (The Act Authorising Joint Stock Banks) 
 
 The Companies Act (3862) ..... xix. 
 
 Sale and Purchase of Shares in Joint Stock Banking Companies 
 
 (“Leeman’s Act”) . . . . . xx. 
 
 The Companies Acts Amendment Act (1877) . . . xxi. 
 
 The Banking Act of 1879 ‘ . . . . xxiii. 
 
 Acts relating to Crossed Cheques (1856) .... xxvii. 
 
 Do. (1858) .... xxvii. 
 
 Do. (1876) .... xxix. 
 
 Bank Notes and Bills Composition Duties (1828) . . xxxi. 
 
 Stamp Duties (1870) • • xxxvii. 
 
 An Act to abolish “ Days of Grace ” (1871) . . xxxix. 
 
 Composition for Stamp Duty on Bank Post Bills (1864) . . xxxix. 
 
 Do. (1867) . . xl. 
 
 Validity of Cheques or Drafts for less than £1 (i860) . . xli. 
 
 Clergymen as Members of Joint Stock Banks (1841) . . xli. 
 
 Bank Holidays Act (1871) . . . . xliii. 
 
 Act Regulating Irish Bank Note Issu s (1S45) . , , xlv, 
 
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