fully issuing his own notes; nor any banker then lawfully issuing his own notes who has become bankrupt, or discontinued the issue of bank notes; nor any person since that date, may become a party to any obligation payable to bearer on demand, in any part of the United Kingdom

7 & 8 Vict. (1844), c. 32, ss. 10, 11, 12. 17 & 18. Vict. (1854), c. 83, s. 11

45. No banking partnership consisting of more than ten (a) persons in London, or within 65 miles thereof, may borrow, owe, or take up in England any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof (b)

(a) 20 & 21 Vict. (1857), c. 49, s. 13

(b) 3 & 4 Will. 4 (1833), c. 98, s. 3

46. A Bank Note is defined by Statute to be-" Any Bill, Draft, or Note (other than Notes of the Bank of England) which shall be issued by any banker, or the agent of any banker, for the payment of money to the bearer on demand, and any Bill, Draft, or Note so issued, which shall entitle, or be intended to entitle, the bearer or holder thereof, without indorsement, or without any further or other indorsement than may be thereon at the time of issuing it, to the payment of any sum of money on demand, whether the same shall be so expressed or not, in whatever form and by whomsoever such bill, draft, or note, shall be drawn or made "

17 & 18 Vict. (1854), c. 83, s. 11

47. The following establishments only may issue obligations payable to bearer on demand in England

1. The Bank of England

2. Private banking firms which were lawfully issuing their own notes on the 6th day of May, 1844, and which have not become bankrupt, or discontinued such issue since that date

3. Joint stock banks formed under Stat. 7 Geo. 4 (1826), issuing their own notes at a distance not less than 65 miles from London

48. The following provisions relating to the issue of Notes by the Bank of England are at present in force

1. The Bank is divided into the banking department and the issue department

7 & 8 Vict. (1844), s. 32, s. 1

2. The issue department creates and issues to the banking department Notes in exchange for £15,000,000 of public securities and any amount of gold and silver coin and bullion, of which the silver coin and buillion must not be more than one-fifth part

7 & 8 Vict. (1844), c. 32, ss. 2, 3, 5

3. The banking department may not issue notes to any person whatever except in exchange for other notes, or such as they have received from the issue department in terms of the Act

7 & 8 Vict. (1844), c. 32, s. 2

4. Any person may demand bank notes in exchange for standard gold bullion at the rate of £3 17s. 9d. per ounce 7 & 8 Vict. (1844), c. 32, s. 4

5. If any banker who was lawfully issuing his own notes on the 6th day of May, 1844, ceases to do so, the Crown in council may authorise the Bank to increase its issues on public securities to any amount not exceeding two-thirds of the amount of notes withdrawn from circulation

7 & 8 Vict. (1844), c. 32, s. 5

6. So long as the Bank pays its notes in legal coin on demand they are legal tender of payment for all sums above £5, by all persons, except by the Bank itself, or any of its branches

3 & 4 Will. 4 (1833), c. 98, s. 4

7. Notes issued at any branch of the Bank must be made payable in coin at that branch as well as in London (a): no branch may issue notes not made payable there (b): and no note not made specially payable at any branch is liable to be paid there (c) (a) 7 & 8 Geo. 4 (1826), c. 46, s. 15 (b) 3 & 4 Will. 4 (1833), c. 98, s. 4

(c) 3 & 4 Will. 4 (1833), c. 98, s. 6

8. Bank of England notes may circulate, and be offered in payment, but they are not legal tender in Scotland (a): or Ireland (b)

(a) 8 & 9 Vict. (1845), c. 35, s. 15

(b) 8 & 9 Vict. (1845), c. 37, s. 6

9. No person except bankers lawfully issuing their own notes may make, sign, issue, or re-issue, any promissory note payable to

bearer on demand in England, under a penalty of £20 for each offence

7 Geo. 4 (1826), c. 6, s. 3

10. No person may by any art, device, or means whatsoever, publish, utter, negotiate, or transfer, in any part of England, any promissory or other note, draft, engagement, or undertaking in writing made payable on demand to the bearer thereof, and being negotiable or transferable for the payment of any sum of money less than five pounds, or on which less than the sum of five pounds shall remain undischarged, which shall have been made or issued or shall purport to have been made in Scotland or Ireland, or elsewhere out of England, under a penalty of not less than five nor more than twenty pounds for each offence

9 Geo. 4 (1828), c. 68, s. 1

11. By Statute 7 Anne (1709), c. 7, s. 61, no banking partnership exceeding six persons, other than the Bank of England, might borrow, owe, or take up any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof

12. By Statute 7 Geo. 4 (1826), c. 49, partnerships consisting of an unlimited number of members might carry on the business of banking, and make and issue bills and notes payable on demand at any place in England, exceeding the distance of 65 miles from London, and not elsewhere, and borrow, owe, or take up any sum or sums of money on their bills or notes so made and issued

13. Such partnerships may not have any house of business or establishment as bankers in London, or at any place not exceeding 65 miles from London

7 Geo. 4 (1826), c. 46, s. 1

14. Every member of such partnership shall be liable for all money borrowed, from the time he became a member, and for all bills and notes which are due and unpaid, or which become payable after he has become a member

7 Geo. 4 (1826), c. 46, s. 1

15. No such banking company may issue or re-issue in London or at any place not exceeding 65 miles from London, any bill or note payable on demand, or any bank post bill, nor draw upon any partner nor agent, or other persons resident within these limits,

any bill of exchange payable on demand, or for a less amount than £50, under a penalty of £50 for each offence

7 Geo. 4 (1826), c. 46, s. 2

16. Such banking company may draw any bill for any sum of £50, or upwards, payable in London or elsewhere, at any period after date or after sight

7 Geo. 4 (1826), c. 46, s. 19

17. Such banking company may not borrow, owe, or take up in London or at any place not exceeding 65 miles from London, any sum of money on any bill or promissory note payable on demand, or at any less time than six months from the borrowing thereof, under a penalty of £50 for each offence; but they may discount in London or elsewhere any bills of exchange not drawn by or upon them, or by or upon any person on their behalf

7 Geo. 4 (1826), c. 46, ss. 3, 19

18. All banks in London or within 65 miles of it, may draw, accept, or indorse bills of exchange, not being payable to bearer on demand

7 & 8 Vict, (1844), c. 32, s. 11

19. All banks of issue existing on the 6th of May, 1844, may continue to issue an amount of notes not exceeding on an average of four weeks, such an average sum as they were issuing during the 12 weeks preceding the 27th April, 1844, certified by the Commissioners of Stamps and Taxes

7 & 8 Vict. (1844), c. 32, s. 13

20. If any two or more banks of issue become united, such united bank may continue to issue the aggregate average amount of notes circulated by the separate banks, provided the united bank does not exceed ten (1) persons

7 & 8 Vict. (1844), c. 32, s. 17

(1) 20 & 21 Vict. (1857), c. 49

21. If any banker in his monthly average exceeds his authorised issue, he is to forfeit the excess

7 & 8 Vict. (1844), c. 32, s. 17

22. Every bank of issue must send to the Commissioners of Stamps and Taxes, weekly, an account of its issues, shewing the amount of its notes in circulation on every day of the preceding week, and also the average during the week; and at the end of

every period of four weeks, a statement of the average amount of the said four weeks, along with the authorised amount, duly verified, in the case of a private banker, by the signature of the banker or his cashier; and in the case of a company or partnership, by the signature of the managing director, partner, or chief cashier. Any neglect or refusal to render such an account, or a false return, incurs a penalty of £100

7 & 8 Vict. (1844), c. 32, s. 18

23. All existing banking companies may register themselves under the Limited Liability Act, 1858, upon giving 30 days' notice to each of their customers

21 & 22 Vict. (1858), c. 91, s. 1

49. If there be several partners in a country bank of issue, the right of issue, on the death of the other partners, belongs exclusively to the surviving partner

Smith v. Everett, 27 Beav., 446

50. 1. Tender of payment in country bank notes is good, if not objected to on that account (a)

2. Even if a banker tender his own notes which are afterwards dishonoured (b)

(a) Vernon v. Bouverie, 2 Show., 296. Tassel v. Lewis, Ld. Raym., 743. Ward v. Evans, 2 Ld. Raym., 298. 89. Owenson v. Morse, 7 T. R., 64. Tiley v. Courtier, 2 C. & J., 6n. Shipton v. Casson, 8 D. & R., 130.

Polglass v. Oliver, 2 Tyr., Lockyer v. Jones, Peake, 239. Pickard v. Bankes, 13 East., 20. Clarke v. Shee, 1 Cowp., 197

(b) Guardians of Lichfield Union v. Green, 1 H. & N., 884

51. 1. If country bank notes be taken in payment of goods at the time of the sale, and as part of the contract, so that no debt is created, and without indorsement, the vendor takes them at his own risk, and has no remedy against the transferor, if the banker fails before he obtains payment of them

2. But if the transferor knew at the time he offered the notes in payment that the banker had failed, he is liable

3. But if the note be taken, not at the time of the exchange, but in payment of a pre-existing debt, however short a period has elapsed between the creation of the debt and the tender of the notes, if the transferee presents the notes within due time, and