Question 208. - Brown & Co., of Montreal, make a draft on Jones, of Hamilton, through the "A" Bank. The latter send it to their agents, the "B" Bank in Hamilton, for collection, and it is accepted in the usual course. Through an oversight on the part of the "B" Bank the draft is not presented for payment until fifteen days after the due date. Five days after its maturity Jones absconds. The "A" Bank now apply to the "B" Bank for payment on behalf of their customers, Brown & Co. "B" Bank refuse, claiming that "A" Bank should have asked for the draft. Who is responsible?

Answer. - We do not think there is the slightest doubt that the collecting bank must bear the loss. If the item had been marked " no protest," the position would be otherwise. In the instance which is now submitted apparently the duty of the collecting bank was to give notice of dishonour in case of non-payment. As they failed to do so, the drawers of the draft are discharged, and the bank in Montreal has a right to look to the collecting bank for protection.