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to the right of the printed £. She gave the cheque to her husband's clerk to get the money. He, before presenting it, inserted the words 'three hundred' before the word fifty, and the figure 3 between the printed £ and the figures 52: 2. It was paid by the bankers for £352 2s. Held, that the improper mode of filling up the cheque had invited the forgery, and, therefore, that the loss must fall on the customer and not on the banker.

A cheque is not a legal tender, and for that reason may be objected to; but having been accepted by a creditor, he cannot proceed for his debt until he has presented and been refused payment for the cheque.

It is usual where a cheque has been taken in payment of a bill of exchange not to part with the bill, but to attach it to the cheque, so that the drawer receives both together from his bankers.

The mere production of a cancelled cheque is not sufficient evidence of the discharge of a debt; it is necessary to prove that the cheque has actually passed through the creditor's hands.

A cheque is not evidence of the loan of money from the drawer to the payee; nor can a banker produce cheques paid by him to prove an advance to his customer.

It is the practice of London bankers to return the cheques and bills paid by them on behalf of their customers with the pass books in which the debits are entered. We believe that country bankers generally do not adopt this rule, but retain cheques, subject, of course, to inspection.

The law on the subject seems to be, that a paid cheque is the absolute property of the customer, by reason of his having paid for the stamp directly, and indirectly for the cheque, by the profit on his account. Now the law also says that a banker's books are not evidence in his favour, although they may be against him.

The paid cheque being returned, and the banker's books not evidence, the question may arise, how, in the event of a customer disputing the payment of a particular cheque, and alleging that all his paid vouchers had been destroyed, the banker would be able to rebut this statement, having already parted with both the order to pay and the receipt for the money?

CHAPTER V.

BILLS OF EXCHANGE.

The use of a Bill of Exchange-The form of drawing-Respecting alterations-Agreement of body with figures-Bills of Exchange drawn in sets-Presentation at maturity; before maturity; after maturity-Mode of proceeding with Dishonoured Bill-Notation of protest; necessity for, and security of-Acceptance; acceptance contrary to tenor-Stamps, inland and foreign-Indorsements Bankruptcy of acceptor-Statute of Limitations, as affecting Bills of Exchange-Payment-Cases in which a Banker is justified in refusing payment of a Bill or Note-Discounting Bills-Indications in case of need-The 'copy' of a Bill.

1. The Use of a Bill of Exchange.

A BILL of exchange was employed, in the first instance, simply as a letter of credit from one country to another, much more extensive in form than the document used in the present day, and containing an amount of matter which time has gradually reduced to its present more business-like dimensions. This mode of settling accounts between merchants in distant lands, was found to be of infinite use, as it obviated the great risk of

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carrying large amounts of specie, and told at a glance the value of the document, thereby considerably facilitating pecuniary transactions in commercial intercourse. These bills of exchange, after having done duty from one country to another, changed hands frequently before they were finally disposed of.

Bills of exchange, on being introduced into this country, were discovered to be of greater use than merely as the representatives of so much money, as they could be instrumental in effecting the assignment of a debt, and as such are now recognised by the common law. Not only was the debt transferred, but its value was enhanced, inasmuch as the debtor himself accepted to pay a certain amount, from which engagement he could not afterwards depart. These bills of exchange were allowed only among merchants at first; but, as commerce increased, they became common with all classes of traders. In the present day, the extent to which bills of exchange are used may be conceived from the fact of their being by far the most important documents employed in commerce, many hundreds of millions sterling being circulated annually in this country in the form of bills of exchange.

2. The Form of Drawing.

In drawing a bill or note the law does not compel the maker to use ink; the document would have the same effect if written in pencil; but the liability to obliteration would prevent the use of a pencil, except in cases where no other material was at hand. There are usually three parties to a bill of exchange: 1st, the drawer; 2nd, the drawee, who, on the completion of the document, becomes acceptor; and 3rd, the payee-the person to whom the amount specified in the bill or note is to be paid, to his order or to the bearer, as the case may be. Frequently, the drawer is also the payee. When the payee's name is followed by the word 'order'—which is the most customary method-an indorsement becomes necessary previous to the instrument changing hands. The word bearer' coming after the payee's name, renders any writing unnecessary in the event of transfer-bearer' simply implying anybody. It is very unusual to draw a bill of exchange payable to 'bearer,' although no legal objection can be raised against it.* It is scarcely necessary to

* In case Rex v. Randall, Eyre, C.B., ruled that a bill payable to blank or order was waste paper. In Minet v. Gibson, the majority of the judges held an opposite opinion.

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