The time runs from the issue, as regards the drawer, and from the indorsement to charge the indorser; but, in either case, the nature of the bill, the usage of trade and the facts of the particular case are to be considered in deciding what is reasonable time.

(5). By section 49 (12) notice of dishonour must be given s. 49 (12). within a reasonable time. Here it is noticeable that an attempt is made to lay down a definite time for the majority of cases, but it is only "in the absence of special circumstances "that the rules are to apply.

In the absence of special circumstances notice of dishonour is not deemed in reasonable time unless :

(a) When the giver and the receiver of the notice live in the same place, the notice is given or sent in time to reach the receiver on the day after the dishonour of the bill.

(b) Where they reside in different places, the notice is sent off on the day after the dishonour, if there be a convenient post on that day, and, if there be no such post, then the next post after.

(6). Reasonable time is material, too, under the clause introduced by Lord Bramwell for distributing the loss fairly between the drawer and the holder of a cheque, when the cheque is not presented for payment within a reasonable time, and where the banker fails in the interval. The drawer is discharged, as before, if he is damaged by the delay, but the holder is now entitled to stand in the place of the drawer, and recover what he can in the Bankruptcy.

In this instance, and in determining what is reasonable time, regard must be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case. So here

it is a question of law and fact.

7. By section 86 (1), when a note payable on demand has been S. 86 (1). endorsed, it must be presented for payment within a reasonable time of the indorsement, or the indorser will be discharged,

And, 86 (2), regard must (in deciding on reasonable time) be s. 86 (2). had to the nature of the instrument, the usage of trade and the facts of the particular case. So that when a note on demand is endorsed, the same rule is applied to protect indorsers from having claims held over them indefinitely, as was applied to indorsers of bills.

But the rule as to the instrument being deemed overdue, for the purpose of affecting the holder with defects of title, is not the same, in the case of promissory notes, as with bills under section 36 (3), because in practice it is well known that bills are principally drawn for negotiation and to carry out payments, whereas a promissory note is very frequently given with the intention of being held as a continuing security. So that it is worth noticing, before leaving the question of reasonable time, that by section 86 (3) "Where a note payable on demand is

Different notes on demand overdue

rule as to

as to being

for defects

of title.

Summary of

Lecture.

66

66

'negotiated the person taking it is not affected with defects of title merely because it appears that a reasonable time for presenting it "has elapsed since its issue."

We have now looked into the origin and uses of bills and the favour with which they are regarded by the Legislature and by the Courts. This retrospect was not, I think, without value as a guide to the reasons for existing law. With regard to the law as it stands, we have, I trust, gained a substantial knowledge of those parts of the Codifying Act which relate to capacity and authority, consideration, and liabilities of parties. These are just the portions on which information might be less readily available to you in your banking houses, because, though necessary to a right understanding of the Act, they have little or no relation to the routine transactions on a bill. We have also seen how some of the duties of the holder, and some of the provisions as to discharge, both of bills and of parties, are rendered more intelligible by reference to the rules of Principal and Surety. And lastly, by passing in review, collectively, the presumptions as to bills, and the provisions as to reasonable time, we have now, I hope, established, at least, an acquaintance with numerous other points of the Act, preparatory to a more intimate knowledge of them hereafter in their respective places.

NOTE. This Lecture, as well as the three succeeding ones, were also delivered in the Memorial Hall, Albert Square, Manchester, on Fridays, November 23, 30, December 7 and 14, 1894. On the first and fourth of these occasions the chair was occupied by Mr. T. R. Wilkinson, of Williams Deacon and Manchester and Salford Bank, Limited; on the second occasion by Mr. William Tipping of the Manchester and Liverpool District Banking Company, Limited; and on the third by Mr. Thos. B. Moxon, of the Manchester and County Bank, Limited. Mr. C. T. Murdoch, of Messrs. Barclay and Co., was also present at the delivery of the first Lecture, in Manchester, and briefly addressed the Meeting.

THE WORK OF THE LONDON CLEARING HOUSE

FOR 1894.

THE following table gives the amounts presented through the Bankers' Clearing House in the year ending 31st December, 1894, and in all previous years of which the returns have been published :

The decline in amounts cleared that has been going on since 1890, is continued in the figures of the past year, the decrease from the returns of 1893 being £140,791,000-a difference considerably larger than that between the clearings of 1893 and 1892. Of this amount, forty millions is in the total of the twenty-four settling days, the remaining one hundred millions being spread over the ordinary days.

It might have been expected that the great demand for consols, that
has marked the past year, and their consequent rise in price, would
have had a larger effect upon the column devoted to consols settling
days than is evinced by an increase of one million.

The relative importance of the different classes of days will be more
clearly seen by the following table, which gives the daily averages of
the clearings for the whole period.

The following tables, giving the monthy totals for the last ten years, and the variations from the yearly average shown in each month, and in each half-year, are in continuation of returns previously prepared for this Journal by Mr. John B. Martin (Journal Vol. X, pp. 88 et seq., and Vol. XIV, pp. 94-95).

Table showing the totals paid each Month (millions of £.),

Total for

1st 6 mths. 2,787 2,863 3,075 3,461 3,844 3,908 3,562 3,300 3,370 3,246

August
September.. 410

433

473 465
457

October

.....

464

523

July...... 478 525 513 598 672 722 577 559 548 536 622 637 506 497 517 492 571 639 512 487 490 459 668 683 572 542 518 531 623 618 537 536 515 518

560 475 535 528 624 November... 453 504 488 576 December... 486 556 533 588 619 594 581 560 520 555

Total for

2nd 6 mths. 2,724 3,038 3,002 3,481 3,775 3,898 3,285 3,181 3,108 3,091

Total for Year 5,511 5,901 6,077 6,942 7,619 7,801 6,847 6,481 6,478 6,337