La Question de l'Or. Par E. Levasseur. (Paris, 1858.) Bimetallism. By H. D. MacLeod. Second Edition. (1894.) Edition. (New York, 1892.) Money and Bimetallism. By H. A. Miller. (New York, 1898.) Joint-Metallism. By A. P. Stokes. Third Edition. (New York, 1895.) Popular Fallacies regarding Bimetallism. By Sir Robt. P. Edgcumbe. (1896.) Real Bimetallism. By Everett P. Wheeler. (New York, 1895.) Rapport de l'Administration des Monnaies et Médailles au Ministre des Finance, 1897-1899. Three Volumes. (Paris.) Money and Social Problems. By J. Wilson Harper. (Edin burgh, 1896.) Recent Economic Changes. By D. A. Wells. (New York, 1895.) The Rationale of Market Fluctuations. By Arthur Ellis. Fourth Edition. (1879.) The Origin of Metallic Currency and Weight Standards. By W. Ridgeway. (Cambridge, 1892.) The Problem of the Unemployed. By J. A. Hobson. (1896.) Leitsätze zur Beurtheilung der Währungsfrage. Von M. Biermer. (Berlin, 1896.) Transactions of the Political Economy Circle of the National Liberal Club. Vol. I. (1891.) TYPEWRITTEN BILLS OF EXCHANGE. THE Council of the Institute desire to draw the attention of all bankers to the following resolution which was unanimously passed at a meeting of the Association of Liverpool Clearing Bankers, held on December 10th last: "That the Association of Liverpool Clearing Bankers desires "to call attention to the dangerous and increasing practice of ،، ،، inserting particulars in Bills of Exchange by means of a typewriter, instead of pen and ink. A typewritten bill can be easily altered, and the difficulty of detecting an alteration "involves all concerned in serious risk. The Association believes "that risk need only be pointed out to ensure disuse of the practice." ،، It will be remembered that in May, 1908, the Central Association of Bankers issued a similar warning and Sir Felix Schuster, in his Presidential Address before the Institute, in November, 1908, spoke in strong terms upon the subject. The Council trust that if bankers throughout the country will bring to the notice of those of their customers who may use the typewriter in drawing either cheques or bills, the obvious risk to all parties of such a practice, the public will, in their own interests, discontinue this growing and dangerous habit. BANK AMALGAMATION. THE LONDON CITY AND MIDLAND BANK, LIMITED, and the BRADFORD BANKING COMPANY, LIMITED. Another country bank will disappear as a separate institution owing to the amalgamation between the above banks, for which a provisional agreement has been announced. Under the terms of the arrangement agreed to by the two boards one share and one-sixth of a share (each share £12 10s. paid) of the London City and Midland Bank will be given for ten shares of the Bradford Banking Company (each share £3 paid). The directors of the Bradford Banking Company will act for five years as a local advisory committee, and the general manager of the bank will accept office as manager in Bradford. The Bradford Banking Company is one of the oldest joint stock banks in the Kingdom, having been established in 1827, and on June 30th last it had a paid-up capital of £408,000, deposits and credit balances £1,651,593, advances £1,416,190, and notes in circulation £7,910, out of a total authorised issue of £49,292, which will now lapse. 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: Bank Amalgamation-Transfer of Mortgage-Stamp. QUESTION 2174.-Bank A absorbs Bank B. A mortgage to Bank B to secure an overdraft is stamped 5s. to cover a limit of £200. Upon the absorption of Bank B a deed of transfer of mortgage is executed, transferring the mortgage to Bank A. In this deed the sum of £100 is stated as the consideration money (the balance owing at the date of the absorption), and the document is stamped 6d. Subsequently the customer is allowed to overdraw up to the extent of £150 on the same account. Is this security valid for the whole indebtedness, or does the consideration money, £100, expressed in the transfer of mortgage limit the value of the security to that amount? If the latter, what steps should have been taken to render the mortgage a valid security for further advances by Bank A. INSTRUCTIONS TO COUNSEL. As the Council is doubtful whether the mortgage transferred by Bank B is valid as regards advances made by Bank A after the date of the execution of the transfer, unless the customer, the mortgagor, joins in the transfer and expressly mortgages the property to Bank A, Sir John Paget is asked to further advise whether the transfer of a continuing mortgage, in which transfer the mortgagor does not join, is a good security for subsequent advances by the transferee. OPINION OF SIR JOHN PAGET, BART., К.С. So far as stamping goes, this is a good security for a total amount up to £200. The "amount transferred, assigned or disponed" within Schedule 1, Mortgage (4) of the Stamp Act, 1891, is "substanti ally the debt and interest of the first mortgage," per Pollock, B., in "Wale v. Commissioners of Inland Revenue," 4 Ex. D., on page 278. In the case of a security for an amount limited only by the stamp, this must mean the amount within that limit outstanding at the date of transfer. The doctrine of assignability of contracts has been carried very far. Compare Tolhurst v. Associated Portland Cement Manufacturers (1903), A.C., 414. If the original mortgage by its terms clearly contemplated the contingency of assignment and advances made by the assignee, and proper notice was given to the mortgagor of the transfer, it might hold good for further advances. But I cannot in any case regard this as a good or satisfactory security. The proper course is for the mortgagor to join in the transfer, charge the property in favour of the absorbing bank both with existing and future advances and covenant with that bank for repayment of the same and interest. Temple, November 4th, 1909. Receipt Stamp-Exemption. J. R. PAGET. QUESTION 2175.-(1) The representative of the Anglo-Spanish Fruit Co., Ltd., at Manchester, pays in each week at the West Central Bank there, certain sums of money for the credit of his company at the Blankshire Bank, Ltd., Liverpool, and receives a receipt in the following form: Received of the Anglo-Spanish Fruit Co., Ltd., the sum For the West Central Bank, Ltd., Is this exempt from stamp duty? Joshua Davies, Cashier. (2) The circumstances being the same, would the receipt require stamping if it were given in the following form? For the Blankshire Bank, Ltd., The West Central Bank, Limited, Joshua Davies, Cashier, Acting as their agents. OPINION OF SIR JOHN PAGET, BART., К.С. (1) This document requires a penny receipt stamp. It is within the definition of a receipt in sec. 101 of the Stamp Act, 1891. It does not, in my opinion, come within exemption 1 under the head of Receipt in the Schedule to that Act. The words "to be "accounted for," used with reference to a banker, postulate a relation between the parties of the nature of banker and customer, in which the payment in and withdrawal of money is a natural element, the position in this case filled by the Blankshire Bank, not the West Central, which intervenes as a mere forwarding agent. Compare as to the meaning of "accountable" Horne v. Redfearn, 4 Bing. N.C., 433. (2) The form of receipt in (2) is, in my opinion, exempt from stamp duty. The money is in law at once credited to the AngloSpanish Fruit Company at the Blankshire Bank, and an undertaking by that Bank to account for it arises from the signature of their expressed agents as such. Compare "Mackersy v. Ramsays," 9 Clark and Finnelly, p. 814, per Lord Campbell at p. 845, 57 Revised Reports, p. 183. J. R. PAGET. Temple, December 1st, 1909. Authority to draw cheques-Lunacy of customer. QUESTION 2176.-X has a credit balance on his current account upon which he has given his son authority to draw cheques. Some time afterwards the bank learns that X is incapacitated by temporary mental derangement from managing his monetary affairs, and at intervals is in an asylum for lunatics. Has the son still power to operate on the account, or is the authority terminated by the customer's lunacy? ANSWER: It was decided in the case of "Drew v. Nunn" (4 Q.B.D. (1902), 661) that if a principal suffers from mental derangement sufficient to render him incompetent to contract, it puts an end to an authority previously given to his agent, but that the principal is nevertheless liable to anyone dealing with the agent in ignorance of the former's insanity. It is always assumed that detention in a lunatic asylum is sufficient evidence of incompetency to contract. In the circumstances mentioned in the question, therefore, the bank should no longer act upon the authority given to X's son. |