BILLS of Exchange

Hokitika Guardian, 19 July 1922, Page 4

BILLS of Exchange

Sir Robert Stout delivered a lecture bef-ire the Wellington Arenuiit'nlit Students. 1 Society hist week on "Bills of Exchange.” In giving a brief outline of the early history of hills of exchange. lie stated that all laws had t!j«-i i- origin in the customs of the pc. pie, and that hills of exchange

were in existence before there were any laws in relation to them. He stated that the ohlcst hill of exchange tlnU could lie traced at the present time was dated October 5, 1339, anil it was not until the seventeenth century, in 16113. that the first laws were passed in England dealing with hills of exchange The Chief Justice emphasised the fact that the law ill relation to hills of exchange was first included iu statute form in England in 1882, and that the law was the same throughout the British Empire. The law, with very minor exceptions, was practically the same in Great Britain, the United States, France and other European countries, and,‘like the uniform maritime laws of the world, was olio ol the greatest factors that worked Inwards universal peace. Bills of exchange were originally given for the purpose of transferring actual money

from one country to another, although tlie commercial customs of traders had now extended their usages for many varied anil indispensable services. Tie outlined the provisions in tlie fi-ills of Exchange Act ip regard to cheques, and emphasised the liability of bankers on forged cheques and other hills of exchange. He dealt at length with the liability of a drawer on badly-drawn cheques, and stated that a customer ol a bank uivcd a duly to the bank to ensure that a cheque was not carelessly or negligently drawn. The lecturer gave a lucid exposition of the law in regard to crossed cheques, endorsed cheques and hot-negotiable cheques. Jn regard to overdue bills, he stated i that a person accepting one look it subject to any defects in the bill, and could not get a better title than I lie person from whom lie received it. After referring to the necessity of protesting a hill drawn in another qoiiutiv on being dishonoured, he pointed mil ihat a dishonoured inland hill may not he protested, hut in any case it was imperative that the drawer should be notified at the first opportunity that the bill bad been dishonoured, other wise the bolder would lose bis right of action. The lecturer further stressed that a bill may be dishonoured by non-acceptance, and that in certain eases there was a waiver of notice ot dishonour, for instance, where the drawee was a fictitious person.