The fact that returns by State banks and private banks are not compulsory or uniform, renders it always somewhat doubtful whether the variations in number reported on may be taken as fair indications of increase or decrease of the number in existence, but there is a growing tendency in the State Legislatures to require periodical reports to be made with regard to banking institutions of all kinds, though as yet they scarcely touch private banks. The present report states that the 759 private banks, whose reports are tabulated, constitute only about one-fifth of the number doing business.

As usual, in the Comptroller's report, a principal feature is made of the defects of the existing National Banking Laws, and provisions are suggested with the object of improving the position of the banks, especially with regard to the conditions under which circulation is, or might be, issued. Recent crises in the States and the appointment of a commission to deal with the currency, appear to afford an opportunity for pressing the claims of the National banks as offering the best machinery for the issue of a safe and elastic currency.

THE BRITISH AND FOREIGN LAW OF BILLS OF EXCHANGE.

EXAMINATION PAPER.-Monday, February 7th, 6.30-8.30.

[Do not attempt to answer more than eight questions.]

1. State, with reference to each of the following documents, whether it is a Bill of Exchange: (a) according to British law, (b) according to German law, (c) according to French law. Give

reasons.

I.

[Place of issue and date omitted.]

On the 15th February, 1898, pay against this Bill of Exchange to the order of B. Green the sum of One hundred pounds, value received in goods, which place to account as per or without advice.

To C. White, London.

II.

(Signed) A. Black.

London [Berlin] [Paris] 1st January, 1898. On the 15th February, 1898, pay to the order of B. Green the sum of One hundred pounds, value received in goods.

(Signed) A. Blank.

2. On the 1st January, 1898, A, residing in London, hands a cheque to B, also residing in London, drawn on A's London Banker, and dated 1st February, 1898. Is B entitled to receive the amount of the cheque (a) before the 1st February, 1898, (b) on or after the 1st February, 1898? Is the post-dating of a cheque prohibited : (a) by British law, (b) by any other law?

3. What is the difference between a Bill of Exchange and a Promissory Note? In what respect is the difference important according to French law?

4. Is ad valorem stamp duty payable, according to British law : (a) on a bill payable on demand, (b) on a promissory note payable on demand, (c) on a bill payable at a fixed date, (d) a promissory note payable at a fixed date?

Is the holder of a Bill of Exchange, liable to ad valorem stamp duty and not being duly stamped, entitled to recover thereon, or to make the same available for any purpose: (a) according to British law, (b) according to German law?

5. A bill indorsed in blank is stolen by A, who inserts his own name into the indorsement and indorses and delivers the bill to B, who, having no reason to doubt A's right to the bill, gives value for it. Can B recover from the acceptor: (I) if he took the bill from A before it was due, (II) if he took it after it was due? Give your answers with reference: (a) to British law, (b) to German law, (c) to French law.

6. In a recent book on English Banking Law the following statement occurs: "A cheque, payable to Mr. A. B. without the "words 'bearer' or 'order,' is only payable to the particular person named, and he must himself go to the banker to get it "cashed." Is this statement correct? Would it be correct with reference: (a) to German law, (b) to French law?

What is the effect of words expressly prohibiting transfer: (I) in the body of a bill, (II) in an indorsement, according to: (a) British law, (b) German law, (c) Italian law?

7. Would it be safe to give value for a bill, accepted by a bank of undoubted solvency, to a holder to whom the bill is indorsed with the addition of the words "for collection?" Give reasons. Reference to British law is sufficient.

8. Within what time must a bill, payable at a fixed period after sight, be presented for acceptance: (a) according to British law, (b) according to German law, (c) according to French law?

:

9. What is a qualified acceptance? Is there any kind of qualified acceptance which a holder is not entitled to refuse (a) according to British law, (b) according to any foreign law? Is a qualified acceptance binding on the acceptor: (a) according to British law, (b) according to any foreign law, and to what extent ?

10. What are the several due dates of bills drawn as follows according to British law :

(a) 3 months from the 28th November, 1897.
(b) 3 months from the 29th November, 1897.

(c) 3 months from the 30th November, 1897.

(d) 3 months after date, but the date of issue being omitted.
() No time for payment being mentioned in the bill.

11. How is the right of recourse exercised in case of non-acceptance: (a) according to British law, (b) according to foreign law?

12. A bill drawn to the order of A is stolen by B, who inserts an indorsement to himself, under which a forged representation of A's signature appears. B transfers the bill for value to C, who has no reason to doubt the genuine character of A's signature. If the drawee of the bill pays the amount to C, is he discharged: (a) according to English law, (b) according to German law? Assuming the bill to be accepted, is C entitled to recover from the acceptor: (a) according to English law, (b) according to German law?

REPORT OF THE EXAMINER.

Mr. Schuster, in his Report, says, "I have much pleasure in stating "that the result of the Examination has surpassed my most sanguine "expectations. Most of the papers show a thoroughly intelligent "and fairly complete knowledge of the subjects to which the ques"tions refer, and many of them may without exaggeration be "described as excellent in every respect."

p. 158. For the third paragraph (beginning with the words " According to British Law") substitute the following paragraph :

According to British Law the holder is not compelled to present the bill to the referees in case of need (B.E.A. 15), but if he omits to present it in due time to the acceptor for honour, any party who would have been discharged if he had paid the bill is probably discharged (see Chalmers, note to B.E.A. 67 [2]). If any person offers payment supra protest and such payment is refused, the holder loses his right of recourse against any party who would have been discharged by such payment. In case of competition between several persons offering payment the rule is the same as in other countries (B.E.A. 68).

p. 164. For the word "Benefit" in the third paragraph substitute the word "Conflict."