promised is in most non-British countries not treated as a Bill of Exchange. (As to Austria see Order of the 29th October, 1852; and see Vidari, p. 82; Italian 252, Scandinavian 3, Hungary 3 (4), Swiss 722 (4). It appears that according to French law bills may be made payable by instalments (see Lyon-Caën, p. 57).

In the same way all non-British laws require the sum to be fixed once for all in some currency, which need not necessarily be the currency of the place of payment, whilst British law allows the rate of exchange to be determined subsequently to the issue of the Bill.

The Swiss (722 (2)) and Japanese (716 (2)) codes require the sum to be stated in words, but the other codes do not lay down any rules on this point. In most countries a bill is therefore complete if the sum is mentioned either in figures or in words. It is usual, however, to mention it in figures as well as in words.

In the case of any discrepancy between the amount in words and the amount in figures the B. E. Ä. (912), the German (5), Hungarian (4), Swiss (722 (2)), Japanese (716 (2)), Chilian (630), Argentine (615), and Portuguese (297) codes provide that the sum denoted by the words in the amount payable, but the German (5), Hungarian (4), Swiss (723), Portuguese (279 (2)), and Argentine (615 (2)) codes also contemplate the case of the sum being mentioned twice in figures or twice in words, and they prescribe that in such a case the smaller sum is to be paid. The Italian (291), and Scandinavian (6) codes declare the smaller amount to be payable in any case in which there is a discrepancy between the amounts mentioned in several parts of the Bill. The French code, and those immediately derived from it, do not deal with this matter at all, but the French writers are of opinion, that in the absence of special circumstances, the amount written in words would be payable (Lyon-Caën, p. 55).

The only statutes, as far as I know, in any country which declare a bill or note to be void if its amount does not reach a certain minimum, are a Scotch statute (8 & 9 Vict., c. 38, §. 17-20), prohibiting the issue of bills or notes, not being cheques, amounting to less than 208., and the English Promissory Note Act, 1863 (continued by the Expiring Laws Continuance Act, 1897), which continues the prohibition, imposed by former Acts, of promissory notes payable to bearer on demand for less than £5. The Japanese code, §. 718, prescribes a minimum amount (about 508.) for bills payable to bearer.

(d) Stamps on Bills of Exchange.

In most countries, Bills drawn within the country, must be drawn on paper having a printed or impressed stamp, whilst Bills drawn outside the country are stamped with adhesive stamps, which must be cancelled by the party affixing them, in accordance with the requirements of the stamp law of the country concerned, but in Germany adhesive stamps are used both for inland and foreign Bills.

D

In some countries Bills issued and payable out of the country do not require any stamp.

In the United Kingdom Bills payable on demand are sufficiently stamped with a penny whatever their amount may be, whilst Bills payable otherwise than on demand are subject to an ad valorem stamp. Promissory notes are subject to an ad valorem stamp, even if they are payable on demand. There are, however, some special rules with reference to Bank notes. (See Schedule to Stamp Act, 1891.)

In most non-British countries all Bills of Exchange, whether payable on demand or otherwise, are liable to an ad valorem stamp, but cheques are generally either exempt from duty, or subject to a small fixed stamp only.

In the United Kingdom, and in some other countries, a bill, which is not duly stamped, cannot be made available for any purpose whatever (B. E. A. 72 (1 a); as to Italy, see Vidari, p. 61), and in France the holder of a Bill, not being properly stamped, loses his rights against some of the parties, whilst he retains them against others, being exactly in the same position as a holder who has lost his right of recourse on the ground of non-compliance with the prescribed formalities as to presentment, etc. (see "Lyon Caën," p. 418.)

In Germany and Austria the non-compliance with the stamp law subjects the parties liable to pay the stamp to a fine, but does not deprive them of their rights against any of the parties liable in the bill (German Statute of 10th June, 1869, § 11; as to Austria, see Theumann, p. 67). I think that the United Kingdom is the only country in which Bankers may, subject to certain conditions, pay a 'composition in lieu of stamp duties on Bills of Exchange (see 9 Geo. 4, cap. 23; 16-7 Vict., cap. 63-7).

(e) Outward form.

As regards the outward form in which Bills of Exchange ought to be drawn no special rules are laid down by any code.

The oblong slips of paper which are generally used are no doubt convenient, but a document complying with the other requirements would be treated as a Bill of Exchange in all countries, if it was written on a sheet of notepaper or foolscap or on paper in any form; even paper is not essential, a Bill might be written or printed on parchment, or on wood or on any other material. Bill may also be part of another document, thus, for instance, the documents which are generally described as circular letters of credit, are letters of credit on one side, and Bills of Exchange on the other side.

(8) Capacity.

A

The general rule is, that capacity to incur liability as a party to a Bill, is co-extensive with capacity to contract (B. E. A. 22 (1) German 1, Hungarian 1, Swiss 720, Belgium 3, Spanish 443; as to

France see Lyon-Caën, p. 82; as to Italy, Vidari, p. 37). The rules as to the contractual capacity of corporations and individuals are too complicated to be discussed here; it may be sufficient to mention that infancy, lunacy, and bankruptcy, and in the case of women, marriage, are the most usual circumstances which may deprive a person of contractual capacity, but in some countries married women, though generally incapable, and also infants, who carry on an independent trade, are, subject to certain conditions, capable of incurring liabilities on Bills of Exchange. In the United Kingdom married women may, since 1883, enter into contracts, but they are not liable in the same way as other persons. As regards the contractual capacity of corporations there is considerable difference between British and Foreign law which, however, cannot be discussed in this place.

In England the Bank Charter Act (7 and 8 Vict. cap. 32) has imposed certain disabilities on bankers and banking companies. They are not entitled to draw, accept or negotiate in England or Wales bills or promissory notes to bearer, payable on demand, unless they belong to certain classes of banks which were in existence before 1844.

In Spain there was formerly a difference between bills drawn by traders and bills drawn by others, but the new code has abolished this distinction. In Switzerland the special procedure of which advantage may be taken in connection with Bills of Exchange is applicable against persons registered as traders but not against other persons (Swiss 720).

In all countries the fact, that one of the parties to a Bill of Exchange is incapable of incurring any liability as a party to a Bill of Exchange, does not affect the validity of the liabilities of the other parties arising on the same Bill (German 3, Ital. 327, Hung. 2, Swiss 721, French 637, Portug. 336).

(9) Distance of Place of Issue from Place of Payment.

There is one other requirement which in some countries affects the validity of Bills of Exchange but which has ceased to be of practical importance. It was at one time thought, that a Bill of Exchange ought always to be based on the transmission of goods or money from one place to another, and for this reason the French code in its original form declared that only such documents were to be treated as Bills of Exchange which were drawn from one place or another. This requirement still exists in Dutch (100), and Chilian (637) law, and in some of the other codes derived from the French law, but in France itself it was abolished by a statute, dated June 7th, 1894.

The rule in question may be easily evaded in various ways, and will probably cease to exist within a very short time.

Form illustrating the differences in the laws of different countries as to the essential parts of a Bill of Exchange.

£100.

Berlin, 1st January, 1897.

The underlined words are unnecessary according to the British system of law, and the systems of law derived from it.

Words in this type-Are unnecessary everywhere.

*Bills of Exchange to Bearer are forbidden by most foreign systems of law.

THE WORK OF THE LONDON CLEARING HOUSE

IN 1897.

THE following table gives the amounts presented through the Bankers' Clearing House in the year ending 31st December, 1897, and in all previous years of which any records exist :—

The total, though £83,572,000 less than that for the previous year, is still so close to that amount, as well as to the total of 1895, as to offer little opportunity for remark. The decrease of one hundred millions shown in comparing all three years is more than made up by the falling off in the amounts cleared on the Stock Exchange settling days, which are smaller by nearly twice as much. The last-named decrease, however, is less than might fairly have been expected from the known condition of Stock Exchange business during the last