APPENDIX.

SECT. I.

BILLS AND MERCHANTS' ACCOUNTS.

A

BILL is a written order for the payment of a sum of money at a specified time.

The form and use of bills will appear from the following

EXAMPLES.

1. James Finlay & Co., merchants in Glasgow, owe Walley & Co. in Manchester, £200 Sterling; for which they grant their acceptance, payable three months after date.

£200 Ster.

Manchester, 2d March, 1818. Three months after date, pay to us, or our order, Two

hundred pounds Sterling, value delivered you in muslins. Messrs. JAMES FINLAY & Co.

Merchants, Glasgow

WALLEY & Co.

JAM. FINLAY & Co.

Remark. When, as in the above bill, the place of payment is not mentioned, the bill is always understood to be payable where the accepter resides. 2. Winter & Co. London, owe Patrick Simpson, Edinburgh, £100 Sterling, for which they order him to value on them at three days sight. Patrick Simpson owes a like sum to James Morrice, and draws the note in his favour. James Morrice transmits the draft to Veres & Co. his agents in London, to be placed to the credit of his account.

£100.

Form of the Draft, with Indorsation.

Edinburgh, 20th May, 1818. Three days after sight, pay to the order of Mr. James Morrice, One hundred pounds Sterling, value received, and place it to the account of

Messrs. WINTER & Co.

66

Conway Street, London.

Indorsation.

PATRICK SIMPSON

Pay Messrs. Veres & Co. or order, value in account.

JAMES MORRICE."

Remark. The above is what is termed a special indorsation. Blank indorsation is when the name only is written on the back of the bill: thus, "James Morrice."

In remitting bills, special indorsation is preferable to blank, in point of secur. ity; because, should a bill so indorsed fall into improper hands, the person's name, to whom it is indorsed, must be forged before it can be negotiated.

3. William Johnston, merchant, Edinburgh, purchases from David Scott & Co., London, a quantity of teas, value £350; for which he sends them his promissory note, payable two months after date, at the British Linen Office.

£350.

Edinburgh, 12th October, 1818. Two months after date, I promise to pay to the order of Messrs. David Scott & Co., at the British Linen Office here, Three hundred and fifty pounds Sterling, value received in teas.

WILLIAM JOHNSTON.

4. James Grant borrows from John Young £115, and grants him a note for it on demand, but not payable to order.

£115.

Edinburgh, 10th June, 1818. On demand, I promise to pay Mr. John Young, One

hundred and fifteen pounds Sterling, value received.

JAMES GRANT.

Remark. Bills of this description are not transferable, like those payable to order.

5. Andrew Black lends Charles Duncan £90, for which he receives his note at six months date, bearing interest at 5 per cent., and payable to order.

£90.

Edinburgh, 6th August, 1818. Six months after date, I promise to pay Mr. Andrew Black, or order, Ninety pounds Sterling, with interest at 5 per cent. value received.

CHARLES DUNCAN. 6. John Cunningham having received from James Wood 64 bolls of meal, value £80, gives him his check on Sir William Forbes & Co. for the amount.

£80.

Edinburgh, 23d September, 1818. Pay to Mr. James Wood, or the bearer, Eighty pounds Sterling, and place it to the debit of my account. SIR WILLIAM FORBES & CO.

Bankers, Edinburgh.

}

JOHN CUNNINGHAM.

Remark. Checks of the above description are used by those who have a cash credit, or money lodged with a banking-house; and are exempted from the stamp duty, if not made payable to order, and if the drawer is not more than ten miles distant from his banker's; in these cases, the duty is charged. 7. John Watt and Walter Lundie, having purchased 100 bolls of wheat, value £180, from James Smith, grant him their joint promissory note, payable three months after date, at the office of Messrs. Scott, Smith, Stein & Co., Edinburgh, for the

amount.

£180.

Dundee, 17th December, 1818. Three months after date, we jointly and severally promise to pay to Mr. James Smith, or order, at the office of Messrs. Scott, Smith, Stein & Co., Edinburgh, One hundred and eighty pounds Sterling, value received in wheat.

JOHN WATT.

WALTER LUndie.

8. John Wilson, Kingston, Jamaica, receives from Robert Plenderleath, Edinburgh, a box of linen, value £50, for which he sends him Andrew Stewart's draft on Steele & Co. Glasgow, at 90 days sight,

£50.

Kingston, 13th June, 1818.

Ninety days after sight, pay this first of exchange, (second and third of same tenor and date not paid,) to the order of Mr. John Wilson, Fifty pounds Sterling, value received, and place it to account of

Messrs. STEELE & Co.
Merchants, Glasgow. S

Special Indorsation.

ANDREW STEWART.

"Pay Mr. Robert Plenderleath, or order, value received.

JOHN WILSON."

Remarks. As a security against accidents and delays, foreign bills are generally drawn in sets; that is, two or three bills are made out for the same sum, and of the same date, and sent by different conveyances, and when any one of these is paid, the others are of no force.

2. When a bill is drawn payable after sight, the accepter marks the date of his acceptance, in order to fix the time of payment.

Notes.

1. In a regular bill, these seven particulars are necessary: Imo. The place and date. 2do. The time of payment. 3tio. The person to whose order it is payable: 4to. The sum. 5to. The consideration for which the bill is given. 6to. The address. The subscription.

7 mo.

2. The person who draws a bill, is called the drawer; the person to whom it is adressed, the drawee, who is also called the accepter, when he engages to pay the bill, by writing his name under that of the drawer; the person to whose order it is payable, is called the payee; and the person to whom it is indorsed, or in whose possession it remains at the time of payment, is called the holder. In No. 2, page 136, P. Simpson is the drawer, J. Morrice the payee, and Winter & Co. the drawees. J. Morrice is also the indorser, and Veres & Co. the indorsees.

3. If a bill is refused acceptance when presented, or payment when due, it is usually protested. The protest is taken by a notarypublic, in presence of two witnesses; and contains a copy of the bill, a relation that acceptance or payment has been demanded and refused, and for what reason, if any be assigned; and a declaration, that all parties concerned shall be accountable to the holder for the value, with damages. If the holder neglect to protest the bill on

the last day of grace, he loses recourse against the drawer and indorsers, and can sue the accepter only for payment.

Foreign bills should be returned with protest, in course of post: inland bills may be kept 14 days, but not longer.

4. A bill continues in force six years, although not regularly protested; and forty years, when duly protested.

EXERCISES.

1. Francis Blaikie & Co. Glasgow, owe James Duncan, Dundee, £250, for which he values on them at three days sight, and procures his money at the office of Mr. William Roberts, 14th January, 1819. Write the draft.

2. James Ford, Montrose, owes Leys, Mason & Co., Aberdeen, £580, for which he grants them his acceptance, payable 3 months after date, at the office of James Thomson in Aberdeen, dated 17th March, 1819. Write the bill.

3. Leith, 8th April, 1819. William Inglis and James Knox, Vintners, purchase from Bell & Rennie 3 pipes port, value £220, for which they grant their joint acceptance, payable 4 months after date.

Write the bill.

4. Edinburgh, 7th May, 1819. John Stewart gives Charles White his check on Thomas Kinnear & Sons, for a debt of £50. Write the check.

5. Glasgow, 8th July, 1819. William Smith borrows from James Duncan £100, for which he grants him his promissory note, payable 20 days after date. Write the note.

6. Dundee, 11th Oct. 1819. James Watt borrows £80 from Edward Lesslie, and grants him a note for it on demand, but not payable to order. Write the note. 7. William Hutchison, Richmond, Virginia, receives from David Pitcairn, Leith, 100 bolls potatoes, value £70, for which he sends him James Gray's draft on John Watson & Co. Glasgow, at 60 days sight, dated 26th Nov. 1819. Write the draft, with the indorsation.

BILLS OF PARCELS.

A Bill of Parcels is a note of the quantity and value of goods sold, given by the seller to the buyer, along with the goods.

Remarks: When a bill of parcels is delivered along with the goods at the time of purchase, the place and date is written at the top of the bill, and the phrase "Bought of" is used. When a bill of parcels is to be made out for goods sold at a former period, we write " Mr. A. B. To C. D.;" or "Mr. A B. To C. D. Dr.;" and place the dates, when there are more than one, before the articles on the margin.

2. Partial payments are written under the account, and subtracted; if there are more than one, they are short extended, and their sum subtracted. When the account is settled, a receipt is granted at the bottom of it, in which the manner of settling it is narrated.

EXERCISES.

1. Edinburgh, 1st Jan. 1819. Miss Gray bought of Charles Green, 5 yards of Mechlin lace, at 10/; 20 yards Welsh flannel, at 2/; 5 yards black crape, at 6/; and 411 yards black satin, at 8/. Write the bill of parcels.

2. Edinburgh, 3d Feb. 1819. Mrs. Brown bought of Andrew Melrose & Co. 4 lbs. congou, at 7/6; lb. fine hyson green, at 11/6; 28 lbs. 1aw sugar, at 91/ per cwt.; 64 lbs. double refined sugar, at 1/54; 5 lbs. single do do. at 1/1; 27 lbs. soap, at 8d.; and 8 lbs 5 oz. starch, at 11d; which she paid. Write the bill of parcels at receipt.

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3. Edinburgh, 3d March, 1819. Miss Jamieson bought of Gilchrist & Co. 30 yards printed calico, at 2/3; 83 yards conet muslin, at 4/9; 43 yards cambric, at 8/9; 11 yards longlawn, at 4/; and 6 muslin handkerchiefs, at 3/. The account was paid, and 5 per cent. discount allowed. Write the bill of parcels.

4. Edinburgh, 1st April, 1819. Mr. George Thomson bought of George Millar, 6 pieces linen, No. 1. 25 yards, at 2/4; No. 2. 24 yards, at 2/64; No. 3. 251 yards, at 2/9; No. 4. 25 yards, at 3/1; No. 5. 26 yards, at 3/34; No. 6. 261⁄2 yards, at 3/5; and granted a promissory note at 6 months för the amount. Write the bill of parcels and promissory note. 5. Edinburgh, 21st Oct. 1819. George Stewart, Esq. bought of Morton & Milroy, a rich silver teapot and stand, with sugar basin and cream pot to match, at £42; 3 dozen silver 4 pronged forks, at £14:14; 2 pairs silver sauce spoons, at £4: 4; 2 pairs silver butter ladles, at 42/; 2 pairs silver sugar tongs, at 21. Write the bill of parcels. 6. Edinburgh, 5th May, 1819. Mrs. Hamilton bought of James Reid 7 lbs. gunpowder tea, at 12/; 14 lbs. bohea tea, at 5/4; 24 gallons gin, at 24/; 17 lbs. soda, at 74d.; 6 lbs. coffee, at 2/4; and 12 lbs. refined sugar, at 1/2. Write the bill of parcels. 7. Edinburgh, 1st June, 1819. Mr. Charles Gray bought of Duncan & Greig 14 yards superfine French black cloth, at 22/6;

yard black Genoa velvet, at 18/; yard milled black cassimere, at 10/6; yard black shalloon, at 2/; and 6 yards shirting flannel, at 2/2. The account was paid, and 5 per cent. discount allowed. Write the bill of parcels.