of the privileges of the bank, no banking company of more than six persons shall issue notes payable on demand within London, or sixty miles thereof. But any company or number of partners may carry on the business of banking within these limits, provided they do not borrow or take up money on their notes in England, payable on demand, or at any time less than six months. All notes of the bank payable on demand, issued out of London, to be made payable at the place where issued. So long as the bank pays in legal coin, its notes are made a legal tender, except at the bank and the branch banks, for all sums above £5; the branch banks only liable to pay the notes they respectively issue; but the Bank of England in London is compellable to pay both the notes issued by the branches and parent establishment. An account of the bullion, securities, notes in circulation, and deposits of the bank, to be weekly transmitted to the chancellor of the exchequer; such account to be consolidated at the end of every month, and an average state of the bank accounts of the three preceding months to be published every month in the Gazette.

Under 7 & 8 V. c. 32, it is enacted, that after the 31st of August, 1844, the issue of promissory notes of the bank shall be kept distinct from the general banking business of the company, and be carried on separately as "the Issue Department of the Bank of England." From the same date the company are to set apart and appropriate securities to the value of £14,000,000 to the issue department, of which the public debt to the company is to be deemed a part, and so much gold coin, and gold and silver bullion as shall not be required by the banking department; thereupon an equal amount of bank notes (including those in circulation) shall be transferred from the issue department to the banking department, and the whole amount shall be deemed to be issued on the credit of such securities, coin, and bullion. This amount may be diminished, but not increased, except in certain cases.

S. 3 declares, that the amount of silver bullion retained by the issue department shall not at any one time exceed a fourth part of the gold coin and bullion held at the same time. All persons may demand from the issue department notes for gold bullion at the rate of £3 178. 9d. per oz. of standard gold.

XII. BANKERS' NOTES AND CHEQUES.

Bankers' cash notes are promissory notes, payable to order, or bearer, on demand, and are transferable by delivery. They may, however, be negotiated by endorsement; in which case, the act of endorsing converts them into a bill of exchange. On account of being payable on demand, they are considered as money, but if presented in due time, and dishonoured, they will not amount to payment. At present, cash notes are seldom made, except by

country bankers, their use having been superseded by the introduction of cheques.

A cheque is a draft or order on a banker by a person who has money in the bank, directing him to pay a certain sum of money to the bearer, or to a person named in the cheque, which is signed by the drawer. It is the essential characteristic of a cheque that it should be payable to the "bearer," and not specifically to any one person. Cheques are immediately payable on presentment. They were, in 1858, by 21 V. c. 20, subject to a stamp duty of one penny, adhesive or impressed. To prevent their circulation as bills of exchange, they must be payable on demand to the bearer, and be drawn on a banker under fifteen miles of the place of issue. The place of issue, therefore, must be named, and they must bear date on the day of issue.

A crossed cheque is a cheque with the name of a particular banker written across the face of it, to whom for security it is payable, or it may be crossed simply & Co.," leaving the holder to insert the name of the banker; in this case it is only paid through that banker. If presented by any other person, it is not aid without further inquiry. The judges in banco, in Carlon v. Ireland (Q. B. Jan. 1856), agreed that a crossed cheque continues a negotiable instrument payable "to bearer," and, therefore, that a person receiving a cheque crossed to be paid by one bank may substitute the name of another: a person is not bound to be more circumspect in taking a crossed cheque than one not crossed; he can only be called upon to show that he took it bonâ fide, and gave proper value for it.

To amend and fix the law relating to crossed cheques, the 19 & 20 V. c. 25, enacts that in "every case where a draft on any banker made payable to bearer or to order on demand bears across its face an addition, in written or stamped letters, of the name of any banker, or of the words and Company,' in full or abbreviated, either of such additions shall have the force of a direction to the bankers upon whom such draft is made that the same is to be paid only to or through some banker, and the same shall be payable only to or through some banker." The word "banker" includes any person, corporation, or joint-stock company, acting as such, 8. 2.

The law was amended as to cheques in 1858, and by 21 and 22 V. c. 79, when a cheque on a banker payable to bearer or order on demand is issued crossed with the name of a banker, or with two transverse lines with the words "and Company," and any abbreviation thereof, such crossing shall be deemed a material part of the cheque, and shall not be obliterated, added to, or altered by any person (except as under) after the issuing thereof; and the banker upon whom drawn shall not pay such cheque to any other than the banker with whose name it is crossed, or if the same be crossed without banker's name, to any other than a banker. But by s. 2,

the lawful holder of a cheque uncrossed or crossed with "and Company," or its abbreviation, may cross the same with the name of a banker, and when the cheque is uncrossed, the lawful holder may cross with "Company" or "Co." with or without the name of a banker, and such crossing be deemed a material part of the cheque. Persons obliterating or altering a cheque with intent to defraud, guilty of felony. By s. 4, banker is not responsible for paying a cheque which does not plainly appear to have been crossed, or altered.

A cheque is negotiable like a bill of exchange, and vests in the assignee the same right of action against the assigner, in default of payment. A person having taken a cheque for a debt cannot sue for the debt till he has presented the cheque and payment of it has been refused. But a creditor is not bound to take a cheque on a banker transmitted to him as payment of his debt, and he may commence an action for his debt while the cheque is yet in his hands, Hough v. May, N. & M. 535.

There is no settled rule for the presentment of a cheque for payment, further than that it must be within a reasonable time, which, as observed by Lord Ellenborough, must be accommodated to other business and affairs of life, and the party is not bound to neglect every other transaction to present a cheque on the same day he receives it. But a banker, holding sufficient funds on account of his customer, is bound to pay his cheque within a reasonable time; and, if he fail so to do, he is liable to an action, 1 B. & Adol. 415.

The holder of a cheque on a banker is not bound to present it for payment till the day following that he receives it, 1 N. & M. 540; but it seems (9 Man. & Gr. 1061) that the time for presentment may be extended by the assent of the drawer, expressed or implied.

The drawer of a cheque continues liable, notwithstanding delay in the presentment of it, where things continue the same, and no damage has arisen from the delay, 3 Ad. & E. 52.

When the cheque is due on demand, and not payable at the place where received, it may be forwarded for payment by the next post.

Payment for a cheque before due is contrary to the usual course of business; and, therefore, when a banker paid a cheque a day before it bore date, which had been lost by the payee, he was liable to repay the amount to the loser, Chitty on Bills, 127.

ton

When payment on a bill is made by the drawee giving a draft on a banker, it is not advisable to give up the bill till the draft is paid. If the holder of a draft on a banker receive payment thereof in the banker's notes instead of cash, aud the banker fail, the drawer of the cheque will be discharged,

CHAPTER VIII.

Award or Arbitration.

AN award is the arbitration and judgment of one or more persons at the request of two parties, who are at variance, for ending the matter in dispute without the delay and expense of an action at law or a suit in equity. The act of reference is termed a submission; the party to whom the reference is made an arbitrator; when the reference is made to more than one arbitrator, with a proviso that, in case they shall disagree, another shall decide, that other is called an umpire.

In

Arbitrations are of two kinds; first when there is a cause pending in court; and secondly when there is no cause pending. The submission in the former case is either by rule of court or judge's order before the trial, or by the order of nisi prius at the trial. the second case, the submission is by agreement of the parties; which is either in writing or by parol, or by the positive direction of an act of parliament, as in the case of inclosure acts.

Experience having shown the utility of these references, especially in settling matters of account; in disputes between neighbours as to ancient lights and drains; cases between landlords and tenants upon dilapidations; matters of privacy arising between family connections; and executors' or trustees' accounts; all which are difficult and inconvenient to be adjusted in a court of law; it is enacted by 9 & 10 W. 3, c. 15, that those who desire to end any controversy, may agree that their submission of the suit to arbitration shall be made a rule of any court of record; and that, after such rule, the parties disobeying the award shall be liable to be punished for a contempt of the court, unless such award be set aside for corruption or misbehaviour, proved on oath to the court, within one term after the award is made.

By 3 & 4 W. 4, c. 42, s. 39, when submission to arbitration has been by rule of court, it is not revocable by either party without leave of the court. The court may also order the attendance of any witness, or the production of any document, and disobedience thereto is deemed a contempt of court. Arbitrators are empowered

to administer an oath, and witnesses giving false evidence are subject to the penalties of perjury.

The death of either of the parties submitting to an award, or of one of the arbitrators, vacates the submission, unless it contain a stipulation to the contrary.

When the submission fixes no time for the making of an award, it shall be understood to be within a convenient time; and if, in such case, the parties request the arbitrators to make an award,

and they do not, a revocation afterwards will be no breach of the submission.

If, upon the trial of any issue of fact under 17 & 18 V. c. 125, s. 6, it appear to the judge that the question arising involves matter of account which cannot be conveniently tried before him, he may order such matter of account to be referred to an arbitrator appointed by the parties, or to an officer of the court, or, in country causes, to a judge of any county court, upon such terms as to costs as the judge thinks reasonable. Application to set aside any award under reference must be made within seven days of the term next following the publication of the award to the parties, whether made in vacation or term, s. 11.

Every one whom the law supposes free, and capable of judging, may be an arbitrator or umpire; but an infant, a married woman, or a person attainted of treason or felony, is disqualified.

The nomination of the umpire is either made by the parties themselves, at the time of their submission, or left at the discretion of the arbitrators; but it is not unusual for the arbitrators to nominate the umpire before they proceed to consider the subject referred to them.

Time and place for investigating the matter being appointed, the parties must attend the arbitrators, either in person or by attorney, with their witnesses and documents. The arbitrators may also, if they think proper, examine the parties themselves, and call for any other information.

The arbitrators have a jurisdiction over the costs of the action, as well as over the matter in controversy; and in case of a reference at nisi prius, they may refer the costs to be taxed by the proper officer of the court, but by no one else.

As a reference to arbitration is in the nature of a trial, and as the award is the judgment, it ought to be final, certain, and conclusive, so as to leave nothing open to future dispute or litigation.

An award must be made in writing, signed and sealed by the arbitrators, and the execution properly witnessed; it may, however, be made by parol, if it is so expressly provided in the sub

mission.

An award, in writing, and under seal, need not have a deed stamp, unless delivered as a deed; but, being only delivered as an award, it is sufficient to have the award stamp.

CHAPTER IX.

Contracts.

MR. COMYN defines a contract an agreement or mutual bargain between two contracting parties entered into either verbally, that is, by word of mouth only, or in writing. When reduced into writing,