The following are the parties to a check: The person who makes the check is called the drawer. the payee. The bank upon which it is drawn is the drawee. When the payee writes his name upon the back of the check, he is called the indorser. 5. Commercial paper must be in writing. The writing may be in ink or in pencil. It may be written on paper or parchment. It may all be printed, except the signature. The signature is usually in the handwriting of the maker. If the maker be unable to write his name, it may be written by another person, at his request, and in his presence. This becomes the maker's signature. It may be made by his agent, duly authorized thereto in his absence. When the signature is made by a third person, at the request of the maker, and in his presence, a cross or mark is sometimes made by the maker, which cross or mark should be attested by the person who writes the maker's name. The signature made by mark is usually in the following form: $500. NEW YORK, June 8, 1865. One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. Witness: JOHN FOSTER. His WILLIAM X BLAKE. mark. 6. If John Foster be the agent of William Blake, authorized to sign for him and in his name, the signature should be written as in the following form: ceptor? Who are indorsers? Who is the drawer of a check? Who is the payee? Who is the drawee? Who are indorsers? 5. How must commercial paper be made? In what? Upon what? What part of it may be printed? In whose handwriting is the signa ture usually? If the maker be unable to write his name? Whose signature does this become? In what other way may it be made in the maker's absence? When the signature is made by a third person, in the presence of the maker, what is sometimes done by the maker? By whom should such cross or mark be attested? What is the form of the promissory note executed by mark? 6. If John Foster be the agent of William Blake, authorized to sign $500. NEW YORK, June 8, 1865. One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. WILLIAM BLAKE, By JOHN FOSTER. The signature, whether it be that of the maker, or indorser, or acceptor, may be made either by the person himself, or by another person in his presence, at his request, or by his agent, duly authorized. If commercial paper is made, or indorsed, or accepted by a firm, the signature is made by attaching the name of the firm, which each partner has authority to attach. A person or partnership may sign or indorse his name, or the name of the firm, in blank; and if the instrument is filled up by a person duly authorized, it will bind the person or firm in the same manner as if it had been filled up before it was signed. CHAPTER XCII. HISTORY OF COMMERCIAL PAPER. 1. Or the different classes of commercial paper, bills of exchange are of the most ancient origin. They were invented to supply the necessities of commerce. Their origin is involved in much obscurity. They were used in England in the thirteenth century. The advantage of bills of exchange may be illustrated as follows. If A. be about to make a voyage from New York to London, and he has in his possession ten thousand dollars in gold and silver which he wishes to use in London, he may deposit the ten thousand dollars with some banker in New York for him, and in his name, in what form is the signature made? How may the signature of the maker, indorser, or acceptor be made? If commercial paper is made, or indorsed, or accepted by a firm? What is the effect if a person or partnership sign or indorse in blank? 1. Which of the classes of commercial paper is of the most ancient origin? For what purpose were they invented? In what is their origin city, and receive from him a bill of exchange on some banker in London. When A. arrives in London, he may present the bill of exchange to the banker upon whom it is drawn, and receive the ten thousand dollars, thereby avoiding the expense and risk of transmitting the gold and silver from New York to London. 2. Bills of exchange were in their origin payable, absolutely and unconditionally, in gold and silver, at the time specified therein. They were divided into two classes, foreign and inland. Foreign bills of exchange are those drawn by a person in one State or country upon a person in another State or country. Inland bills of exchange are those drawn by a person in one State or country upon another person in the same State or country. 2. The par of exchange is measured by the intrinsic value of the coin. The intrinsic value of the coin depends upon the amount of pure gold or silver and the amount of alloy in any given weight. The rate of exchange between two countries, is the actual price at which a bill drawn by a person in one State or country upon a person in another State or country can be bought. The rate of exchange is made to differ, first, by the difference of weight or fineness of the coin; second, by the increase or diminution of the demand for such bills of exchange. 4. The general theory upon which bills of exchange rest is-1. That the drawer has funds in the hands of the drawee; 2. That the drawer sells or assigns to the payee so much of these funds as is named in the bill; 3. That when the drawee accepts the bill of exchange, it is an appropriation of so much of those funds for the use of the involved? When were they introduced into England? How may the advantage of bills of exchange be illustrated? 2. How were bills of exchange in their origin payable? Into what two classes were they divided? What are foreign bills of exchange? What are inland bills of exchange? 3. How is the par of exchange measured? Upon what does the intrinsic value of the coin depend? What is the rate of exchange between two countries? How is the rate of exchange made to differ? 4. What is the general theory upon which bills of exchange rest? payee, or other person holding under the payce; 4. That this amount ceases henceforth to be the money of the drawer; 5. That it becomes the money of the payee, and those holding under him, in the hands of the acceptor. After such acceptance, the acceptor becomes the primary debtor of the payee, or other holder. The drawer and indorsers are only collaterally liable to the holder upon default of payment by the acceptor. 5. Bills of exchange in familiar language are known as orders. A. calls upon B. for the payment of a debt. B. has a claim for an equal amount against C. B. instead of paying the money to A., gives A. an order on C. for the amount of his claim. This order is a bill of exchange. B. is the drawer. C. is the drawee, and A. is the payee. When A. presents the order to C., and C. accepts it, C. is called the acceptor. If A. write his name upon the back of the order, he becomes an indorser. The law by which bills of exchange are governed is known as the Law Merchant, or mercantile law. It is a system of customs ac-' knowledged by all commercial nations. Blackstone calls it the custom of merchants, and ranks it under the head of particular customs, which comprise the great body of the common law. Being a part of the law, their existence need not be proved by witnesses, but the judges are bound to take notice of them ex-officio. 6. The next class of commercial paper in the order of time, after bills of exchange, is promissory notes. The origin of promissory notes is quite as obscure as that of bills of exchange.. They were first used in England about the middle of the seventeenth century. They were regarded as choses in action, which could not be assigned so as to give a third party a right to commence an action thereon. In the year 1704, during the reign of Queen After acceptance, who is the primary debtor? How only are the drawer and indorsers liable? 5. By what term are bills of exchange in familiar language known? Give the illustration. By what law are bills of exchange governed? What is the Law Merchant? What does Blackstone call it? Under Anne, in England, Parliament passed an act entitled, "An act for giving like remedy upon promissory notes as is now used upon bills of exchange." The reasons for passing the act are set forth in the preamble, as follows: “WHEREAS, it has been held that notes in writing signed by the party who makes the same, whereby such party promises to pay unto any other person or his order, any sum of money therein mentioned, are not assignable or indorsable over within the custom of merchants to any other person, and that such person to whom the sum of money mentioned in such note is payable, cannot maintain an action by the custom of merchants against the person who first made and signed the same, and that any person to whom such note shall be assigned, indorsed, or made payable, could not within the custom of merchants maintain any action upon such note against the person who first drew and signed the same. Therefore, to the intent to encourage trade and commerce, which will be much advanced if such notes shall have the same effect as inland bills of exchange, and shall be negotiated in like manner. "Be it enacted, etc." 7. By this law, all promissory notes for the payment of any sum of money mentioned in such notes, are made assignable or indorsable in the manner that inland bills of exchange are, or may be assignable or indorsable according to the custom of merchants. Since the passage of this law, all promissory notes payable absolutely and unconditionally in money only, have been known and recognized as "promissory notes within the statute." All promissory notes payable in any other property but money, and all conditional promissory notes, have been known as promissory notes not within the statute, and they are entitled to what head does he rank it? Is it necessary to prove the existence of such customs by witnesses? What are the judges bound to do? 6. What is the next class of commercial paper in the order of time after bills of exchange? Is the origin of promissory notes well known? When were they first used in England? How were they regarded? In what year did Parliament pass an act in reference to promissory notes? During whose reign? What was the title of the act? In what were the reasons for passing the act set forth? Were promissory notes then assignable or indorsable within the custom of merchants? Could the assignee or indorsee maintain an action thereon? With what intent was this law passed? 7. What were made assignable or indorsable by this law? In what manner? Since the passage of this law, what promissory notes have been known and recognized as promissory notes within the statute? |