Corn advanced till July, but had a lower market later on. Meat followed a similar course, while sugar, coffee, and tea advanced towards the end of the year. Sugar, owing to a smaller crop, rose from 10s. 1d. per cwt. for beet to 12s. 4d., and the coffee standard of Santos went from 26s. 6d. per cwt. to 37s., but closed at 33s. Iron showed on the average very little change, but copper fell from £63 per ton, to £55, and rose again to £614. Tin was firmer and finished at £153 per ton, against £132 at the end of 1908. Lead was on a moderate level throughout the year, and realized about £13) per ton. Export coal was on the average cheaper; prices ruled higher from April to September, owing to labour questions, but were lower in October and November. Among textiles we had a very strong advance for cotton from 5d. per lb. to 81d., against 9d. in 1904 and 2d., the lowest in 1895. Wool rose from 10 to 30 per cent., according to quality. Flax was also dearer, but jute was cheaper than in the year before. Hemp and silk were on the average unchanged. In the group of "sundry materials," we have a higher market for hides, leather, and linseed oil, but not much change for other articles.

Silver, though lower in the course of 1902, had the lowest annual average on record, and the price movements were within moderate compass. Stocks accumulated in the Indian Treasury till October, but are now very much reduced. The prices and index numbers were as follows (60.84d. per ounce being the parity of 1 gold to 15 silver=100) :

The rate of discount advanced here and in Germany in the autumn. The average private rate for best bills in the three markets-London, Paris, and Berlin-was, however, lower-viz., 2 per cent., against 28 per cent. in 1908, 41% per cent. in 1907, 3% per cent. in 1906, and 24 per cent. in 1905.

The past year must still be considered as a rather unsatisfactory one in most branches of European trade. There are a few exceptions, particularly the wool trade, but also the linen, leather, and indiarubber trades, which were well occupied at rising prices. The iron industry was hardly any better than in the previous year, shipbuilding was still unsatisfactory, and the shipping trade was in a very unfavourable condition. The cotton industry suffered enormously under the manipulated rise of prices in view of considerable reduction in the American crop, and the coal miners were in fear of strikes during the greater part of the year. Some other unfavourable points were the state of politics in this country and the weather. The best that can be said was the tendency of prices and trade. We had poor crops in 1908, and prices were still greatly affected in the first half of the year by dear corn and also meat. They fell when it became evident that we should have to face an abundant crop, and trade generally showed signs of improvement in the second half of the year. Comparisons with its depressed predecessor became more and more favourable and the turnover of the whole external trade of this country was over 1,094 million pounds, against 1,050 million pounds in 1908 (bullion omitted). In America the prosperity continued and reacted on certain European trades.

The prospects are now much more promising. We have favourable harvests, particularly in Russia, Canada, the United States, and Australia, and moderate money rates, the Far East is improving, and there are plenty of indications that we are gradually recovering from the effects of the crisis at the end of

F

1907. The gold production remains exceedingly large, and its effect on prices will probably be maintained. The average index number of the ten years 1900-09 is 73 (against 72 from 1899-08, and 71 from 1898-07), and last year's average of 74 ought to be fairly safe, while the present figure of about 76 may be reduced with moderate prices for corn and lower rates for cotton.

Yours faithfully,

A. SAUERBECK.

TRANSVAAL GOLD PRODUCTION.

In continuation of the figures given in the Journal for February, 1909, the monthly output of gold in the Transvaal for the past four years, as published by the Transvaal Chamber of Mines, is appended:

QUESTIONS ON POINTS OF PRACTICAL INTEREST.

THE Council desire to express their readiness to receive at all times questions which are of general interest, and in regard to which it would appear desirable to assimilate the practice of bankers.

The Council wish, however, to point out that they cannot undertake to answer purely legal questions or to give any opinion on points of law.

The following questions have been received, and answers are appended, which, after careful deliberation, the Council have approved :

Bill drawn in London on Paris-Endorsed with rate of exchange -Accepted payable in London.

QUESTION 2178. - A bill of exchange at three months, drawn in London on Paris for a sterling amount is, before acceptance, endorsed by the drawer, to whose order it is payable, at a specified rate of exchange, as follows:

،،

Pay to the order of the St. Clement's Bank, London, at "the rate of exchange of 25.40 francs per & sterling.

"Α. Β."

On presentation in Paris for acceptance, the drawee accepts payable at his bankers in London.

(1) To what amount is a holder entitled at maturity?

(2) As it is the custom among foreign bankers in London to purchase such bills from their clients before acceptance, can the drawee, by accepting the bill payable in the country of origin, escape some of the obligations under the bill, i.e., the interest for the period the bill has to run and the collection charges, which are both included in the rate of exchange at which it is endorsed, and which he would pay were the bill accepted payable in his own country.

ANSWER: (1) To the sterling amount expressed in the bill.

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(2) Sec. 19 of the Bills of Exchange Act, 1882, states that "general acceptance assents without qualification to the order "of the drawer. A qualified acceptance in express terms varies "the effect of the bill as drawn." Sec. 44 further enacts that "the holder may refuse to take a qualified acceptance, and if "he does not obtain an unqualified acceptance, may treat the bill as dishonoured by non-acceptance."

If, therefore, the bill were on the face of it drawn payable "at the rate of exchange as per endorsement," the holder would be entitled to refuse an acceptance which domiciled the bill in London on the ground that it was a qualified acceptance.

If, however, the bill is so drawn that an acceptance payable in London would not vary the tenor of the bill, the holder could not refuse to take such an acceptance.

Purchase of Shares in Infant's Name.

QUESTION 2179.-A customer instructs his banker to purchase shares in the name of his daughter, who is ten years of age.

(1) Can the daughter, during her minority, give a valid discharge for the dividends?

(2) Can she re-transfer the shares in the event of a sale during her minority?

(3) Would a person witnessing the signature to a transfer deed of so young a person incur any liability by doing so?

ANSWER: (1) and (2). It is very doubtful whether the infant could at any time repudiate either her discharge to the dividend warrants, or the transfer deed executed on re-sale of the shares, but no company will knowingly insert the name of a minor in its register of shareholders, nor should a banker, with knowledge of the facts, accept such instructions as those mentioned in the question, as, in the case of a call on the shares being made, the infant could refuse to contribute and demand a rectification of the register, in which case the banker might be involved in liability to the transferor.

(3) It is very undesirable that anyone should, without strict enquiry, witness the signature to a deed of a person known to be an infant.

Cheque returned marked "Not sufficient"-Tender by Payee to drawer's credit.

QUESTION 2180.- An open cheque drawn by A for £100 is presented for payment, and, the balance to his credit at the time being only £80, is returned unpaid with the answer "not "sufficient."

The banker makes no disclosure, but the payee, having from other sources of information ascertained the state of the account, tenders the sum of £20 for the credit of A's account, and again presents the cheque for £100.

Is the banker bound to receive the amount tendered and to pay the cheque? If not, what course should he adopt?

ANSWER: The banker should accept the £20, and, providing he has no lien on A's credit balance, should pay the cheque for £100.