SECT 3.-Statutory Restrictions.

Certain restrictions, in conformity with rules of old standing in England, have lately been introduced, chiefly with the view of regulating the currency, and preventing unauthorized parties from circulating documents capable of serving as Bank Notes. All bank notes, entitled to the privileges of that class of documents, must be expressed in pounds. sterling, and not in guineas or any other denomination expressive of fractional parts of a pound. Promissory notes, bills, or drafts, made in a shape in which they may be negotiated or transferred, and bearing to be for a less sum than twenty shillings, either in money, or in stated value of goods, are null, and cannot be enforced against any one. Any person connected with the uttering or circulating of such documents, is liable for each offence to a penalty of not more than £20, or less than £5, at the discretion of the Justice by whom he is tried. All such negotiable documents, when for a sum exceeding £1, but less than £5, not issued by banks under the banking privileges, must be drawn and negotiated in a peculiar form, viz., They must contain the name and address of the person to whom or whose order they are payable; they must bear date at or before, and not subsequent to the time of drawing or issuing; they must be payable within twenty-one days after date, and must not be transferable or negotiable after that period; every Indorsement must be before the expiration of that term, must bear date at or not before the time of making, and must contain the name and address of the Indorsee; the signing of each bill or note and each indorsement must be attested by a subscribing witness. Documents made or indorsed in contravention of these rules are null.3 Persons not acting under the banking privileges, who issue notes payable to bearer on demand for sums less than £5,4 or who utter or negotiate negotiable documents of £1 and under £5, are liable to a penalty of £20 for each offence. These rules are not to interfere with drafts on bankers.6

By the act for the regulation of railways, it was declared that certain railway companies had bond fide issued Loan Notes which were illegal and invalid. On this preamble existing loan notes were validated, but the issue of such documents in future was prohibited under penalties.7

18 & 9 Vict. c. 38, § 5.-2 Ibid. § 16.-3 Ibid. § 17.- Ibid. § 18.5 Ibid. §§ 18, 19.— Ibid. § 20.-7 7 & 8 Vict. c. 85, §§ 19, 20.

By the Joint Stock Bankers' Act, it is provided that the notes and bills of the banks to which it applies,* in the making or indorsing, must be signed by some Manager or Director, and be expressed by him to be signed on the part of the company.1

SECT. 4.-Stamp.

There are two scales of stamp duty applicable to bills and notes, according as they are made payable at what is technically termed "short date," or "long date." long date." The former includes bills payable on demand or at any period not exceeding two months after date, or sixty days after sight; the latter includes those payable after a period of time longer than any of these periods.2 The rule is strictly interpreted. Thus, a promissory note payable two months after sight, the two months happening to contain more days than sixty, was held liable to the larger stamp.3 Foreign bills, viz. those drawn in Great Britian and payable abroad, when drawn singly are liable to the same stamp duty with inland bills; when drawn in sets a separate scale applies, according to which each "part" or copy must be stamped. Bills drawn in the colonies must be stamped if the law of the place require it; as to bills drawn in other places abroad, it seems to be held that the law does not take cognizance of the revenue regulations of foreign countries. It will not protect a bill from the stamp law of this country that it bears to be made abroad, if it can be proved to have been made in Britain.6

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A bill cannot, like some other legal documents, be stamped after it is completed. But if a stamp of the proper or of a greater amount, though intended for a different species of document, be used, it will be sufficient, unless it bear on its face that it is so intended, as by the words "receipt stamp." It is presumed, however, that in such a case the commissioners are empowered to apply the proper stamp, on payment of the stamp duty, and a penalty of 40s. if the stamp is affixed before the term of payment, or if otherwise, of £10.8 The parties in a bill not duly stamped are liable to a penalty of £50.9 Making or issuing a bill or note postdated, for the purpose of making it appear such a document

* See above, p. 194.-17 & 8 Vict. c. 113, § 22. 9 & 10 Vict. c. 75.$55 Geo. III. c. 184, Schedule.-3 Bayley, 98.455 Geo. III. c. 184, Schedule. Ch. on St. 14.-6 Th. 30.-7 55 Geo. III. c. 184, § 10.37 Geo. III. c. 136, §§ 5, 6.-9 55 Geo. III. c. 184, § 11.

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as would require only the short date stamp, whereas it requires the long, involves a penalty of £100. An unstamped bill is totally useless for the purposes of a bill; and although it may serve as evidence for other purposes (such as a criminal prosecution for forgery), it cannot be evidence of a debt.2 Though the bill, however, is null, the debt (if any) on which it may have been founded may exist and be otherwise proved. If no obligation to pay has been incurred by any one, the document does not come within the act; and it has been decided that a mere request by one party to another, on whom he has no claim, to pay a certain sum to a third party, and place it to his account, is not liable to stamp duty as a bill; and the same decision has been given regarding a request to pay a certain party the balance due to him for building a chapel, for which their receipt is said to be a sufficient discharge."3*

Evasion. If a document is really intended for the purposes of a bill or note, it will not be saved from the effect of the stamp laws by being worded in a different manner from ordinary bills or notes. Thus, a document acknowledging receipt of £80, and promising to pay the same when required, was held to be a promissory note, and action was refused on it as it was unstamped; and so of a document which bore, "We acknowledge to have borrowed and received from you £100, which we will repay you at the term."5 Where a somewhat similar document specified that there was no stamp at hand, and obliged the granter to give a stamped bill when called for, the same was held.

Specialties as to Bills.-The following documents are specially ranked as bills requiring to be stamped. Orders for the payment of money by a bill or note, or for the delivery of a bill or note in payment or satisfaction of money, when the order requires the payment or delivery to be made to the bearer or to order, or when it is delivered to the payee or to some one for his behoof. Bankers' receipts for money received, which may entitle or are intended to entitle the person paying the money, or the bearer, to receive the like sum from any other person. Orders to pay money out of any particular fund which may or may not be available,

155 Geo. III. c. 184, § 12.- 31 Geo. III. c. 25, § 19.- Th. 28.See this general subject further discussed in the section applicable to the general operation of the Stamp Laws, p. 141.- Alexander v. Alexander, 26th February 1830.-5 Haddin v. M'Ewan, 17th January 1838.• Mackintosh v. Stewart, 13th May 1830.

or on a condition or contingency, when made payable to the bearer or to order, or delivered to the payee or to some one for his behoof. In a late case an order of payment out of a particular fund that might or might not be available, was found liable to a stamp. There are statutory exemptions from stamp, including generally bills or bank post bills of the Bank of England, bills drawn on persons in certain public employments, and for facilitating the payment of the naval and military forces, always provided the transactions be strictly gone through according to the statute, and bills for a less sum than 40s.3

Drafts on bankers are exempt, provided they be drawn within fifteen miles of the banking office, state the place where they are drawn, bear date on the day of issue, or the day before, and do not direct payment to be made in bills or notes.4 A draft in which the person to whom the money is payable is stated, as "pay to James Martin," is not within the exemption. It would appear, however, that if the name be followed by the word "or bearer," the draft is exempt, and it is decided that a memorandum of the payee's name in a corner does not subject the document to stamp.5 If a draft be post-dated, or otherwise deviate from the conditions of the exemption, and be not stamped, the maker is liable to a penalty of £100, the receiver to a penalty of £20, while a banker paying the draft in the knowledge of the circumstances forfeits £100, and is not allowed to debit the payment. A cautioner on a cash credit was found not liable for drafts drawn beyond the statutory distance, or wrong dated in time and place and known by the bank agent to be so. It may be inferred from this case, that when drafts correspond, on their face, with the statutory requisites, and there is no reason on the part of the bank for suspecting a divergence, they are to be held legal drafts so far as the bank is concerned.

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Specialties as to Notes.-Promissory notes are distinguished by the stamp act into four classes:-1st, Notes payable to the bearer on demand, and for a sum not exceeding £100. These may be re-issued without additional duty after having been paid, provided the person or banking company using the privilege take out an annual license for so doing,

155 Geo. III. c. 184, Schedule.- Taylor v. Hutchison, 13th February 1845.3 55 Geo. III. c. 184, Schedule.- Ibid. and 9 Geo. IV. c. 49, § 15.- Swan v. Bank of Scotland, 8th December 1841.-6 55 Geo. III. c. 184, § 13. Swan v. Bank of Scotland. App. 6th July 1835, 2 S. & M'L. 67.-7 Swan v. Bank of Scotland, 21st November 1839.

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under a penalty of £100. If a banking house has two, three, or four places of issue in Scotland, it requires a license for each; but four licenses will suffice for any number of places of issue. The date must not be printed on such notes under a penalty of £50.2 2d, Notes for any sum not exceeding £100 payable otherwise than to bearer on demand, but at a term not exceeding two months after date, or sixty days after sight. 3d, Notes for any sum exceeding £100, payable to bearer on demand, or in any other manner, at a term not exceeding two months after date, or sixty days after sight. 4th, Notes payable to the bearer, or otherwise, amounting to 40s. or upwards, at a term exceeding two months after date, or sixty days after sight. All these have respective scales of duties adapted to them. None but the first sort can be re-issued after being paid. The exemptions from stamp are, 1st, Notes payable out of any fund which may or may not be available, or on an uncertain contingency, not payable "to the bearer or to order," unless where the sum amounts to £20 or upwards, or is indefinite.4 2d, Notes which are in reality agreements, though in the form of promissory notes, they being liable to an agreement stamp. 3d, Notes for less than 40s. not payable to bearer on demand. Promissory notes to bearer on demand made, or purporting to be made, out of Great Britain (except those made and payable in Ireland), must not be negotiated in Britain, under penalty of £20 against every party to the negotiation. Bank of England, in respect of a composition, is entitled to issue all its notes unstamped. The Bank of Scotland, the Royal Bank of Scotland, and the British Linen Company, in consideration of certain duties, have exemption for their notes of one pound, and two pounds.

SECT. 5.-Sum.

The

The sum is generally marked in figures on the upper left hand margin; but it is a legal requisite that it should be in words in the body of the bill. The latter founds the obligation, the former can only make it more clear, and so if they differ the latter is the rule.8 The sum must be a distinct named sum, and in money, not in other property, even though it may be immediately convertible into money, as

155 Geo. III. c. 184, § 24-29.-2 Ibid. § 18.-3 55 Geo. III. c. 184, Schedule. Promissory Note.- Ibid.—5 Ibid.— Ibid. § 29.- Ibid. § 21-23.-8 Th. 69.