applied in buying back any of the stock, or (as the case may be) the amount, if any, which the borrowing Government reserves to itself the right to re-purchase and cancel.

"6. The funds out of which the interest is to be met during the next five years.

"Your Committee have been much impressed in the course of their inquiry with the great importance of the functions exercised by the agent or contractor for a foreign loan. Considering that in several of the cases which they have examined there has been something closely resembling repudiation, based upon the alleged misconduct of the agents in this country, they cannot escape the conviction that the proper discharge of these duties is a matter of importance, not only to the subscribers, but to the nation at large. They submit to the wisdom of Parliament whether it is proper that an office on the due exercise of which depends in no small degree our good understanding with the borrowing country, and our reputation for honesty and good faith, should be exercised by any person who may choose to undertake it, or, worse still, to whom the representative of some petty or insolvent State may choose to intrust it.

"In conclusion, your Committee feel bound to express their conviction that the best security against the recurrence of such evils as they have above described will be found not so much in legislative enactments as in the enlightenment of the public as to their real nature and origin. Your Committee hope that the history of the foreign loans embodied in this report will tend to enlighten the public and to render it more difficult for unscrupulous persons to carry out schemes such as those which, in the cases on which it has been the duty of your Committee to report, have ended in so much discredit and disaster."

Banking and Commercial Law.

THE assimilation of the laws affecting bills of exchange in the different countries of Europe is a subject of great practical utility, and one which has for years occupied the attention of jurists. In 1870 it was discussed in a meeting representing Hungary and the Sclavonic Provinces of Austria; and again, in 1872, at Copenhagen. Germany, indeed, after a labour of nearly fourteen years, has succeeded in reducing to one uniform code the laws on this subject of forty different states; and this fact is encouraging, although at the same time it must be borne in mind that the political affinity of the various German states would form no inconsiderable element in the success of the work. This important matter was largely discussed in the

recent conference at the Hague, and an international committee was nominated to draw up a projet de loi to be laid before the conference next year. The special committee appointed on the subject this year has issued its report, and there can be no doubt of the value of many of its suggestions, of which the following are the most prominent. First, as regards uniformity in the form of a bill of exchange, it does not advise the establishment of a given stereotyped form created by statute law, but it recommends that the distinctions observed in England between inland and foreign bills be abolished. The report then passes on to the subject of "endorsement," and advises the adoption of endorsements in blank, and that each endorsement should be accompanied by the postal address of the endorser. Usances and days of grace are totally condemned. In case of refusal of payment, notice of dishonour is recommended as of universal obligation, to be followed by protest before legal proceedings are commenced, such proceedings to be instituted within one year from date of protest. After proposing a general statute of limitation to the extent of three years as against the acceptor, and one year as against other parties to a bill, the report refers briefly to some minor matters, and concludes with suggesting the constitution of an International Committee (as mentioned above) to frame a report for the next ensuing conference, embodying a draft outline of an international code for bills of exchange and other negotiable securities.

The Fifth Annual Bankruptcy Report issued for the year 1874, in pursuance of section 115 of "The Bankruptcy Act, 1869," contains much which is interesting, as setting forth the working of that Act in respect of its composition and liquidation clauses. A comparison of the figures for 1874 with those of 1873, shows an increase of 15 in the number of bankruptcies, of 288 in the number of liquidations, and of 127 in the number of compositions. Of the increase in the number of compositions registered in 1874 (127), 75 are at rates not exceeding 1s. in the pound, the total increase being confined to rates not exceeding 7s. 6d. in the pound. The per centage of compositions exceeding 7s. 6d. in the pound has declined from 3477 per cent. of the total number in the year 1870, to 16:05 per cent. of the total number registered in the year 1874. Now it has been said that if an estate did not pay 10s. in the pound, the insolvent trader had either continued trading long after he was virtually insolvent or had kept back part of his assets; but the above figures would seem to show that these offences against commercial morality are very far from uncom mon, and also, that the Bankruptcy Act of 1869 is powerless

to prevent them. Moreover, from the large increase in the liquidations and compositions as compared with the bankruptcies, it is manifest that bankruptcy is avoided. This may arise from the fact that in the former case the proceedings are more expeditious and in the latter more expensive, but, whatever be the reason, it is clear that the abolition of the liquidation and composition clauses and the compulsory administration in bankruptcy of all insolvent estates would greatly tend to the increase of honour and rectitude amongst insolvent debtors.

1.

The Master of the Rolls has decided in Re The Globe New Patent Iron and Steel Company, that the dishonour of a bill of exchange accepted by a limited Company in part payment of goods sold and delivered to it, is proof to the satisfaction of the court, under section 80, subsection 4 of the Campanies' Act, 1862, of the Company being unable to pay its debts, although no demand of payment may have been made under sub-section The petition for compulsory winding-up was presented by trade creditors on the 9th June, and recited that in February they sold certain goods to the Company, and took in part payment a bill of exchange for £1,150, dated 19th February, 1875, and payable three months after date. Upon presentation at maturity the bill was dishonoured, and although the Company had since been repeatedly called upon to pay the amount it had neglected to do so, and was, at the time of presentation of the petition, wholly insolvent and unable to pay its debts. Under these circumstances it was just and equitable, and for the interest of the general body of creditors that the Company should be wound up. It was contended on behalf of the Company that there was no evidence of inability to pay, and that the petitioners had omitted to serve a demand for payment under sub-section 1 of section 80 of the Companies' Act, 1862. In Re The Catholic Publishing and Bookselling Company, the Master of the Rolls, in giving his judgment, showed that by section 80 of the above Act, a company shall be deemed to be unable to pay its debts in any of four cases. (1.) Where a creditor for £50 or upwards has served a demand for payment, and the company has for the space of three weeks or more succeeding the service omitted to pay the debt. (2.) Where execution issued on a judgment against the company has been returned unsatisfied. (3.) Whenever in Scotland the induciæ of a charge for payment on an extract decree, or an extract registered bond, or an extract registered protest have expired, without payment being made; and (4.) When it is proved to the satisfaction of the court that the company is unable to pay its debts. His lordship considered that the fourth case

covered the other three, and that the omission to serve a demand of payment, could not interfere with the granting of the usual winding-up order.

Railway Digest.

NORTH BRITISH RAILWAY.-Abstract of the directors' report for the half-year ending July 31st, 1875:

Capital Account.-The expenditure for the half-year has amounted to £122,640 (exclusive of the Devon Valley capital and the subscription to the Tay Bridge), against an estimated expenditure of £185,000. The expenditure for the current half-year is estimated at £189,827, and this estimate has been calculated with the view of providing only for such additional works as are essential to the due development of the traffic.

Revenue Account.-Comparative results of the receipts and expenditure on revenue account for the half-years ending July 31st, 1875, and July 31st, 1874:

The large increase in receipts has been earned concurrently with a liberal expenditure in the permanent way and locomotive departments, and this, taken in conjunction with the circumstance that the comparison in the accounts is with a period in which there was a deficiency of £44,000 in the amount required to pay the dividends on the preference stocks, renders the present condition of affairs all the more satisfactory.

Finance. The debenture loans falling due at Martinmas are being renewed at and below 4 per cent. The average interest payable on the entire mortgage debt of the company has been reduced to £4. Os. 2. per cent. Debenture bonds to the extent of £44,900 have been replaced during the half-year by the issue of the same amount of 4 per cent. debenture stock. In order to provide for the redemption of the A and B redeemable debenture stocks, the time for which is approaching, it is recommended that a 4 per cent. irredeemable preference stock be created, part of which shall be applied to the redemption and the balance to the general purposes of the company.

Dividend. The free revenue meets the fixed dividends on the preference and preference (ordinary) stocks, and further affords an additional per cent., or 5 per cent. in all, on the Edinburgh and Glasgow preference (ordinary), and 4 per cent. on the North British ordinary stock.

The following tabulated statement shows the position of the company in each of the six half-years to July 31st, 1875, viz. :—

LONDON, CHATHAM, AND DOVER RAILWAY.-At the half-yearly ordinary general meeting of this company, held in August, the usual report was presented, of which the following is an epitome:

Comparison of the result of the half-year's working with that of the corresponding

The following table gives the results of profit on the working of the railway for the last half-year, and for the corresponding period of the eight preceding