among bankers, and is of itself a business with some, who style themselves bill discounters.'* Firms trading largely on a small capital find discounting a great assistance, and in some cases are unable to do without it; but bankers are always cautious to ascertain that the paper is of a good class, or moderately so, before they discount to any great extent; as when the accommodation afforded is to a person of but limited capital, in the event of an adverse crisis the banker will probably suffer. Discounting, however, is not confined to trading firms solely, but is considerably resorted to by money-lenders, and all kinds of people who can lend their money at a higher rate of interest than they pay for it. It must be remembered, however, that a discounted bill should never be delivered to any one but the depositor of it until after maturity; as not only can a bona fide indorsee, holding it for value, sue on it for non-payment at maturity, but it affords an opportunity to any who may be so disposed, to use an eminent name for the purpose of obtaining a sum of money for a period, and

* The Athenians are said to have originated the method of discounting as at present practised,—that is, retaining the profits at the time of the advance.

then retiring the instrument before the signature of the acceptance could, by proper presentation, be verified, and the forgery detected. Also subordinates in banking-houses, or any who may be charged with the custody of bills for presentation at maturity, should be particular in taking written instructions respecting the non-presentment of a bill or note; as a case may occur in which the holder of a bill or note may know the acceptor, and even the other parties to the instrument, to be insolvent, and afterwards, by apparent neglect to present at maturity, endeavour to throw the loss on the bank. The qualifications, however, necessary to render a man capable of presiding over a discounting department are perhaps the most valuable he can possess, as it is frequently the principal source of profit to the bank. A man must possess keen observation, a ready memory, should have means of knowing when certain houses are trading beyond their capital, to be able to distinguish accommodation bills from boná fide documents; to use all of which in discounting operations, in a large commercial city, of necessity requires considerable experience, sound judgment, and discrimination.

18. Indications in case of need.

The indication in case of need' will usually appear in the margin of the bill or note, and signifies that the instrument is to be taken to the house of the person or persons mentioned, who will intervene for the honour of the drawer or indorsers, as the case may be. If there be several indications in case of need,' application should be made to all to ascertain for whom they interfere, and the preference given to that one who will accept for honour of the prior party to the bill, calculating from the drawer.

19. The Copy of a First' Bill.

The copy of a first bill of exchange may be negotiated in the same way as a 'second;' the 'second' of exchange, however, in the absence of the first,' is frequently accepted where the copy of a 'first' would not be by the drawee, as it does not bear the original name of the drawer. In case of delay of the arrival of a first of exchange, a copy might be accepted for the honour of the original indorsers, as they are still liable to the holder. It is the practice abroad to furnish the copy of a bill which has not been drawn in sets.

A protest may in some cases be made on the copy of a bill. The person making the copy should state distinctly 'copy,' the original with so and so, and transcribe the whole bill with all the indorsements, including his own.

CHAPTER VI.

BILLS OF LADING.

In one sense a bill of lading is at common law assignable, that is to say, its indorsement assigns the property, but does not transfer the contract. Now, however, by a recent statute, rights of action pass to the indorsee of a bill of lading (18 & 19 Vict. c. 111). Byles on Bills,' p. 2.

Bills of lading are so extensively employed in commerce, that a few words explanatory of their object may be found of service.

Upon a cargo being shipped, bills of lading— generally three, and sometimes four copies being made-are filled up with the name of the shipper; the name of the ship; her destination; the name of her captain; the particulars of the cargo, or such portion as these bills may apply to. The captain signs all the copies of the bills, retaining one himself, and handing over the remaining two or three to the shipper, who indorses them, either