NOTES ON RECENT ADDITIONS TO THE LIBRARY.

The Economist, Vols. XIV.-XXXVI. (1856-1878).

THE Institute is under great obligation to the Directors of the Bank of South Australia, from whom has been received this most important addition to the Library. These volumes cover an interesting period in the financial history of the country, including the crises of 1857 and 1866, and as works of reference their value can hardly be over-estimated.

Tenth Census of the United States, 1880.

Through the kindness of the Hon. Jno. Jay Knox, late Comptroller of the Currency, the following four additional volumes have been received :

VOLS. V. & VI.-Report on the Cotton Production of the United States, embracing also the Agricultural and Physico-Geographical descriptions of the several Cotton States, and of California.

VOL. VII.-Report of the Valuation, Taxation, and Public Indebtedness of the United States, as returned at the Tenth Census (June 1st, 1880). VOL. VIII.-The Newspaper and Periodical Press.-Alaska, its Population, Industry, and Resources.-The Seal Islands of Alaska.—The Shipbuilding Industry in the United States.

The subjects therein contained are treated with the same elaborate care and minuteness which was observable in the four previous volumes, and the "History of the Newspaper and Periodical Press will be read with especial interest.

Encyclopædia Britannica (Ninth Edition).

Vols. I.-XVII. of this work, the value of which is too well known to need comment, have been purchased for the Library. The remaining volumes will be added from time to time, as soon as they are published.

OBITUARY.

SIR ROBERT RICHARD TORRENS, K.C.M.G.

THE late Sir Robert Torrens, a Fellow of the Institute, who died on 31st August, 1884, was, so long ago as the year 1841, and shortly after he emigrated to Australia, appointed Collector of Customs for South Australia and a non-clective member of the legislative Council there. In 1852 he was appointed Treasurer of the Colony, and was elected the first member for Adelaide under the new constitution. He was appointed Chief Secretary in 1862, and also RegistrarGeneral of the Colony, which latter office he held till 1865. After his return to England he was an unsuccessful candidate for Cambridge, but in 1868 was elected a member for that borough, which he represented until February, 1874. He was the author of a work entitled, "The First Effects of Gold Discoveries on the Currency and General Condition of South Australia," but his name will be more especially remembered in connection with the "Registration of Titles to Land Act," which was first enacted in South Australia, and subsequently adopted by the other Australian Colonies. The great and universally acknowledged benefits conferred by this Act will cause the name of Sir Robert Torrens to be long held in grateful remembrance.

Mr. EDWIN BRETT.

The death of Mr. Brett has also deprived the Institute of Bankers of a Fellow who took an active interest in its welfare.

Mr. Brett was for a considerable time in the service of the National Provincial Bank of England, and in 1857 was appointed Assistant Manager of the London Chartered Bank of Australia, in Melbourne, whence he was transferred to the post of Manager in Sydney. In 1860 he was appointed Manager of the London office of the Commercial Bank of Sydney, and in 1866 he rejoined the London Chartered Bank as Inspector and General Manager in the Colonies. This appointment he held till 1880, when, being in England, he retired, receiving a handsome acknowledgment for his long and faithful services. Shortly before his death he was connected with the Oriental Bank Corporation. In addition to the special work connected with these various appointments, Mr. Brett rendered great services to the Australian banking community in assisting to establish in Melbourne a Clearing House on the London model.

Mr. Brett has on several occasions contributed to the pages of this Journal, and few papers have excited more general interest than the one by him on "The History and Development of Banking in Australasia," " which will long be consulted as a leading authority on the subject with which it deals.

Mr. Brett died on 21st August, 1884.

*Journal of the Institute, Vol. IV., p. 1.

LEGAL DECISIONS AFFECTING BANKERS.

THE ATTORNEY GENERAL v. BIRKBECK AND OTHERS.

(Reported in full, see below.)

THE Bank Charter Act, 1844, prohibits bankers (other than those lawfully issuing notes on the 6th May, 1844) from issuing bank notes, and provides that if any banker, then having the right to issue notes," should cease to carry on the business of a banker, or discontinue the issue of bank notes," it should not be lawful at any time thereafter to issue notes.

Messrs. Birkbeck were bankers lawfully issuing notes on the 6th May, 1844, and they continued their issue down to 1880, when they transferred the whole of their business (with the exception of the right to issue notes) to a Limited Company.

In the agreement, however, carrying out the transfer, elaborate provisions were inserted as to the mode of issuing the notes, which the Court construed to amount to an assignment to the Limited Company of the whole benefit of the issue, in consideration of certain payments.

The Court held that Messrs. Birkbeck, after the execution of the agreement, had ceased to carry on the business of bankers, and had discontinued the issue of notes, and that neither they nor the Limited Company had the right of issue.

THE ATTORNEY GENERAL v. BIRKBECK AND OTHERS. Banker-Bank Notes, Issue of-Penalties-The Bank Charter Act, 1844 (7 & 8 Viet. c. 32), ss. 11, 12.

on

By s. 11 of the Bank Charter Act, 1844, it shall not be lawful for any banker to "issue" any note payable on demand, except that any banker carrying or business as such on the 6th of May, 1844, and then lawfully issuing his own notes, may continue to issue them under specified conditions; and, by s. 12, if any banker, entitled after the passing of the Act to issue bank notes," shall cease to carry on the business of a banker," it shall not be lawful for him to issue such notes at any time thereafter. In 1880 a firm of bankers, entitled to issue their own notes under the exception in s. 11, sold their business to a limited liability company upon the following terms :-The company took over the whole of the business as a going concern, and the goodwill, except and reserving to the firm the right to issue their own notes, but including in the sale and purchase such

benefit of the issue as was thereby agreed to be given to the company; the firm were to issue their notes in the same form as theretofore, but through the company's officers only, and might nominate those officers and make the returns required by statute through them: the company were to allow and pay the firm £2 per cent. interest on the amount of all notes from time to time in circulation: for the purposes of the issue only the firm might continue to use their accustomed name, but they were not to assign their rights, nor to take new partners for the purpose of continuing the issue without the consent of the company, nor to carry on the business of banking within a defined district without the like consent, except so far as related to the issue of their notes under the agreement: if the right of issue should at any time be taken away from the firm they were to pay any compensation they might receive to the company, unless the company should get an equal right of issue, in which case the firm might retain the compensation: if the company acquired a right to issue their own notes, the firm's right of issue was to cease. When the business was taken over by the company, a large number of the firm's notes being in circulation, the amount of them was deducted from the purchasemoney, and the notes, when presented for payment, were cashed by the company, and reissued by them. Notes in hand when the business was taken over were treated as cash lent by the firm to the company. Daily returns were made by the company showing the number of the firm's notes in circulation, and twice a year the company paid £2 per cent. interest to the firm on the amount so ascertained. On an information against the firm and the company for penalties in respect of their having issued the notes contrary to the provisions of the Act :

Held, that the company had "issued" the notes within the meaning of s. 11 of the Bank Charter Act, 1844; that the firm, in issuing the notes, were not protected by the exception in s. 11, because after the making of the agreement they had "ceased to carry on the business of bankers" within the meaning of s. 12; and therefore that all the defendants were liable.

INFORMATION by the Attorney General against J. Birkbeck and others, members of the firm of Birkbeck, Robinson, & Co., and against the Craven Bank, Limited, for penalties under s. 47 of the Stamp Act, 1870 (33 & 34 Vict. c. 97).

The facts and arguments are stated in the judgment.

Sir H. James, A. G., Sir F. Herschell, S. G., R. S. Wright, and W. O. Danckwerts, for the Crown.

R. E. Webster, Q.C., E. H. Pollard, and H. E. Stansfeld, for the defendants.

Cur, adv. vult.

Feb. 9, 1884, the judgment of the Court (Lord Coleridge, C.J., and Stephen, J.) was read by

LORD COLERIDGE, C.J.:-This was an information for penalties under the Stamp Act, 1870 (33 & 34 Vict. c. 97), s. 47 (1), filed against the defendants under the following circumstances:

The firm of Birkbeck and Co., otherwise known as the Craven Bank, carried on the business of bankers in Yorkshire for a great

(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 £50.

E

many years previous to 1880, and from the year 1791 they issued notes which, subsequently to 1844, were for £5 only. In 1880 the defendants, who then represented the firm, transferred their banking business to a limited liability company called the Craven Bank, Limited. This was effected by a written agreement of which the following provisions appear to us material to the decision of the present case—

By article 1 the vendors agreed to sell and the company to purchase and take over "the whole of the said business of the Craven Bank Company and of Birkbeck, Robinson, & Co., as a going concern, and the goodwill thereof, except and always reserving to the vendors their right to issue their own bank-notes, but including in the said sale and purchase such benefit of the said issue as is hereby agreed to be given to the company."

By article 7 it was agreed as follows:-" If circumstances permit, the vendors shall for a period not exceeding five years, and may for a longer period, continue to issue their own notes in the same form as heretofore, but through the officers of the company only; and the vendors for that purpose shall from time to time nominate such clerks or officers of the company as they the vendors shall think fit, and shall make the returns required by statute through such clerks or officers. The company shall allow the vendors interest at the rate of £2 per cent. per annum on the amount of all notes from time to time in circulation. The account between the vendors and the company in respect of the issue shall be stated, and a balance struck, on the 30th day of June and the 31st day of December in every year, and the amount found due shall be thereupon paid, after deducting therefrom all the expenses of the issue. For the purpose of the issue only the vendors may continue to use the names of their said firms, or such name as has been hitherto accustomed; but the rights of the vendors shall not be assigned, but shall pass only to the surviving or continuing partners or partner: Provided always that a new partner or new partners shall from time to time be admitted on like terms for the purpose of continuing the issue of notes, but not without the consent of the company."

Article 10 provided as follows:-"The vendors shall not, nor shall any of them, at any time hereafter as long as the company carry on business, unless with the consent of the company, carry on in the county of York or the county of Lancaster the business of banking, except so far as relates to the issue of their notes under this agreement."

Finally, article 11 is as follows:-" If at any time hereafter the vendors shall be restrained from issuing their notes, and no equal right of issue shall at the same time be given or allowed to the company, any composition or compensation which shall be made to the vendors or their successors in exercising their right to issue in respect of such right shall be paid over by them to the company: