Owner.

Question 71.— A Winnipeg bank negotiates a draft drawn by one of its customers on a house in Kingston, and sends it to a bank in Kingston for collection. At maturity, the Winnipeg bank wires the Kingston bank, " Hold free seven days if not paid." The Kingston bank has a running account with the Winnipeg bank, and if the bill were paid would simply credit the amount without advice. The Kingston bank holds the bill without protest for seven days after maturity, in accordance with telegraphic instructions, but without advising or acknowledging the telegram.

If the bill is still unpaid at the end of seven days ought it to be protested, and is the drawer entitled to the same notice of non-payment at the end of the seven days as he would have been at maturity?

Answer.—The bill could not be protested at the end of the seven days, the time for that being past. The duty of the Kingston bank is to return the bill to the Winnipeg bank at the expiration of the seven days, or to notify it then that the bill has not been paid. If it neglected to do this, and the Winnipeg bank was misled into believing thereby that the bill was paid, and allowed the drawer to act in the same belief, the Kingston bank would probably be bound to give the Winnipeg bank credit for the bill.