7. Mode of Proceeding with a Dishonoured Bill.

In case a bill should not be paid when presented, it is customary and necessary to leave a written notice, containing the particulars of the bill, so that at a later period of the day the acceptor may procure the funds necessary to meet the bill, and prevent its being protested. Notice of dishonour may be given by the holder's agent or attorney, and in his own name stands good. Notice of dishonour should be given to each indorser, each being entitled. The drawer of a bill, when payable to a third party, is entitled to notice. Neither the drawee nor acceptor of a bill, nor the maker of a promissory note, is entitled to notice. It is safest for the holder to give notice himself to all the indorsers; as, if he only give notice to his immediate indorser, and it is not regularly transmitted to the antecedent parties, they are discharged. It is also necessary that there be no laches in the circulation of the notices, no more than one day being allowed between each, as any neglect on the part of one indorser is not compensated for by extra diligence on the part of another. Laches committed by any indorser discharges all the antecedent parties. If the party be dead, notice must be given to his personal representatives. Where a firm or number of people are jointly liable on a bill, notice to one is sufficient. Notice of dishonour need not be given when a bill is drawn on an insufficient stamp, nor is it necessary to the indorser of a promissory note not negotiable. A promise of part payment, or an acknowledgment of liability, will be evidence of notice.

8. Notation of Protest-Necessity for, and Security of.

Noting bills of exchange and promissory notes as is customary among bankers and merchants at the present time, is a different operation from the ' notation of protest,' as regards foreign bills of exchange. The mere ' noting' is a minute made by the notary, an officer appointed by the Archbishop of Canterbury, and whose appointment is registered and subscribed by the Clerk of Her Majesty for Faculties in Chancery.* Noting is recognised by the law as the preliminary step to the protest, and is, strictly, a part of it. At the same time, bills are noted when no protest is intended. In a case of legal proceedings against parties to a dishonoured bill, the notary would be considered an essential witness of the presentment and dishonour. The minute of the notary, which is attached to the bill, is satisfactory evidence of the document having been duly presented, either for payment or acceptance. The notary is a person conversant with such transactions, and is considered a qualified person to direct the holder as to the course to be pursued. With respect to the charges, it appears that, according to the resolutions passed at a meeting of some of the notaries belonging to the city of London, which was held at the George and Vulture Tavern, on July 1st, 1797, the following charges were agreed to, which were approved by the Bank of England: - For bills payable or to be accepted by persons living within the old walls of London, 1s. 6d.; beyond the old walls, and not farther than certain boundaries known to the notaries, which it is scarcely needful to specify at length, 2s. 6d.; beyond such boundaries, and not off the pavement, 3s. 6d.; every mile after leaving the pavement, 1s. 6d. additional. Bills protested within the old walls of the city of London, inclusive of a 4s. stamp-duty, and exclusive of noting charge, 6s. 6d.; without the old city walls, under the same conditions, 8s.

* The first instance of a woman being appointed as a ' Notary public' occurred at Chicasaw County, Iowa.

For all acts of honour within the walls upon any one bill, 1s. 6d.; without the walls, according to the charges before mentioned for bills which will cause the notary to proceed beyond the boundary of the old walls of the city of London.

It was not allowed by the law to recover the notarial charges against the acceptor unless special damage was made in the declaration; but under an Act, 18 & 19 Vict., the expenses of noting may be recovered. The protest of a foreign bill is begun the day it falls due; but such custom does not exist everywhere, as in many countries no steps are taken at all until the evening of the second day, which is sufficient to protect the holder. All inland bills are not protested until the second day, or the day after the bill falls due. The protestation of foreign bills is customary among nations, as regulating international transactions. It affords undoubted proof of dishonour to the drawer, without which evidence he would have to rely upon the representation of the holder. The acts of a public functionary are credited by foreign courts, and a bill protested under the seal of a foreign notary will be received as evidence in our courts of the dishonour of a bill payable abroad.

A foreign promissory note need not be protested.

In the absence of a notary-public, a protest may be made by any inhabitant of the place in the presence of two witnesses.

The form of a protest is a solemn declaration made under a fair copy of the bill, stating that payment or acceptance has been refused; assigning the reasons, if any, and that it is therefore protested.

A bill also may be protested for better security. Where the acceptor becomes insolvent, and his credit is publicly impeached before the bill falls due, the holder may employ a notary to demand better security, and, on refusal, the bill may be protested, and notice may be sent to an antecedent party; but no proceedings can be taken until after the bill has fallen due. A second acceptance may appear upon a bill for honour, but not without the intervention of a protest. Her Majesty's consuls residing abroad are empowered to do all notarial acts; also attorneys residing more than ten miles from the Royal Exchange may be admitted to practice as notaries. On occasions when a bill is refused acceptance, or is protested for better security, any person may accept for honour 'supra protest,' the form of which is as follows: - The acceptor, 'supra protest,' must appear personally with a witness before a notary-public, and declare that he accepts the bill for the honour of drawer or indorser, and that he will meet it at the appointed time, when he has to accept the bill ' supra protest' in the usual way in favour of whoever the person may be. When the acceptance 'supra protest ' is made without mentioning the name, it is considered as made for the honour of the drawer.

9. Acceptance.

The literal meaning of the word acceptance, as applied to bills of exchange, signifies an engagement on the part of the drawee to meet the bill in money when it falls due; which engagement generally appears across the face of the instrument. But a bill of exchange may exist without an acceptance. An instrument drawn by A. upon B. directing him to pay C. a certain sum at a given time, without acceptance, is a bill of exchange. A bill must be accepted by the intended drawee, except for honour. A partner by accepting binds his co-partners. A retired partner is only liable on those bills signed while he remained a partner. If a bill be drawn on several persons not in partnership all must sign; if not, it may be treated as dishonoured; but acceptance will be binding on those who have accepted.

If any person be rash enough to accept on a blank form, he is liable for any amount which the stamp will cover. A written or oral promise to pay or accept an existing foreign bill, is considered at common law an acceptance. The holder of a bill must not agree to a qualified acceptance without giving notice to the previous parties; if such a proceeding takes place without their consent, they are discharged; but the holder must neither protest nor give notice of dishonour, as he thereby precludes himself from recovering against the acceptor.

Acceptances may be made conditionally; such, for instance, as an agreement to pay the bill when certain monies were realised. A bill accepted for a part of the sum for which it was drawn is held good, and may be sued on pro tanto. The acceptance of a bill by the drawee may be cancelled at any time, provided the bill has not been delivered or the fact of acceptance been made known to the holder. The cancellation of an acceptance by the acceptor's banker does not render the banker legally liable, if it can be proved that due care was taken. The cancellation of the acceptor's name by the holder is equivalent to a discharge. The acceptor of a bill, when it has once been delivered, is supposed to have satisfied himself that all is right, and cannot withdraw on the plea of the drawer's signature being forged; he also admits the capacity of the payee to indorse, and cannot set up the infancy of the payee, or the fact of the drawer being a married woman, as a plea.

Care should be taken also as regards a bill, being drawn by a married woman, as the husband can sue or indorse; the consequence of which may be that the acceptor will be compelled to pay the bill twice.

If an acceptor die before the maturity of a bill it must still be presented for payment; if necessary, demand must be made at the executor's place of abode, and, on refusal, must be protested.

10. Acceptance contrary to Tenor.

A bill may be protested for acceptance contrary to tenor; that is, if it be accepted for a longer date than is mentioned in the bill. Acceptance may, however, be taken, whichever way the drawee accepts, as a second protest may be made for non-payment at the expiration of the time mentioned in the bill. No one can discharge the acceptor of a bill except the holder or some one authorised by him.

11. Stamps-Inland and Foreign.

The following clauses are from "the Stamp Act of 1870" of 33 & 34 Vict., cap. 97, which came into operation on the 1st of January, 1871, and from 45 to 55 inclusive apply to Bank Notes, Bills of Exchange, and Promissory Notes.