Between the immediate parties a consideration is as necessary in the case of a bill or note as in the case of any other kind of contract.29 One who signs or indorses a note after it has been negotiated does not incur any liability, unless there is some other consideration.30 Bills and notes, however, are presumed to be given for a consideration, and the burden of proof is on the party alleging the contrary.31

A Circuit court of the United States said on this point in Lipsmeier vs. Vehslager32

'This suit is based on a promissory note negotiable in form. The plaintiff sues as indorsee of said note. The ordinary rule of law governing paper of this kind is that it imports on its face a consideration, in other words, that the party who gave the note entered into an obligation to pay the same, for pecuniary reasons, whereby the payee would be entitled to recover on the face of the paper. This note was transferred, as admitted, after maturity. If it had been transferred for value, to an innocent party, before maturity, the defenses that are submitted to you would not be considered. But it so happens, admittedly, that this note was transferred long after maturity; consequently you are to determine the respective rights of the parties as if Mr. Beckerman, the payee in the note, himself was suing here. In other words, the equities of the original transaction are open for inquiry.

26 Davis vs. Helm, 34 Mo. App., 332.

27 Am. & Eng. Ency. of Law, Vol.

IV, page 80. 28 34 Vt 402.

29 Boutell vs. Cowding, 9 Mass., 254;

Clement vs. Reppard, 15 Pa. St., I11.

30 Good vs. Martin, 95 U. S., 90;

Harwood vs. Kiersted, 20 I11., 367. 3l Bristol vs. Warner, 19 Conn., 7;

Whitney vs. Clary, 145 Mass., 159 32 29 Fed. Rep., 175.

"This note was given, it seems, February 1, 1878, negotiable by its terms - a note payable in one year, and transferred long thereafter to this plaintiff. Some very nice questions have been presented to the court, under the statute of the United States, as to the jurisdiction of this tribunal, concerning which, in the present aspect of the case, it is unnecessary to trouble you. The court decides that the party is rightfully in court, and consequently the matter is submitted to you, and the questions of fact are - "First, was there any consideration for this note? If not, you must find for the defendant. But the duty of showing that there was no consideration rests on the defendant. Notes of this character import consideration. In other words, the plaintiff is not bound to prove that the note was given for consideration, because, when a party signs paper of this kind, he admits, impliedly, that there was a good reason for so doing - a valid reason. Consequently the burden is cast upon the defendant to show that there was no consideration. Notes sometimes may be given for the accommodation of the payee, or for any other than valid reasons. If so, it being the nature of a gift, the mere voluntary act from one to another, there is no obligation in law, if he chooses not to pay the note, for him so to do, by judicial process."