though abundantly solvent, deprived of the power of meeting his present engagements. He calls his creditors together, lays the situation of his business affairs all open, a majority agree to grant a respite, and he is saved from the ruin which an immediate judgment and execution would bring upon him. The merchant, too, finds his present means crippled by the loss of his richest ship, and the refusal of an insurance office to pay without a suit: he may bless the equity of that law which prevents the rigorous creditor from driving him into bankruptcy.

MERCANTILE LAW CASES.

[We are indebted to C. Bryan, Esq., of Akron, Ohio, for the following decisions in the Courts of that State, on points important to mercantile men.]

LETTER OF CREDIT.

When a letter of credit is addressed to a particular firm, no one else can rely on it as a guaranty.

The vender of a bill of goods, upon the faith of a letter of credit, must give notice at once to the guarantor, or he will not be liable.*

BILLS OF EXCHANGE.

The holder of a bill of exchange, drawn by a person living in one State, upon a citizen of another State, is relieved by the statute of Ohio from the necessity of procuring a notarial protest, except for the purpose of recovering the statutory damages.f

Such bills are so far foreign bills under our statute, that the notarial protest is received as evidence of the facts stated in it. The holder may treat them as foreign, by having them regularly protested,-which entitles him to 6 per cent damages, over and above principal and interest; or as inland, and make his proof of demand and notice.‡

A promissory note, payable to a person or bearer, is negotiable by delivery, without endorsement. But a sealed bill or note in the same form, is negotiable only by endorsement.{

The mere endorsement upon a note, of a stranger's name in blank, is prima facie evidence of guaranty.||

To charge such a person as maker, there must be proof that his endorsement was made at the time of execution by the other party; or, if afterwards, that it was in pursuance of an agreement or intention that he should become responsible from the date of the execution. Such agreement or intention may be proved by parol, and the rule is the same whether the instrument be negotiable or not.

COMMON CARRIERS.

Proprietors of stage coaches are common carriers, and their liabilities cannot be limited by actual notice to a traveller that his baggage is at his own risk.

A watch is part of a traveller's baggage, and his trunk is a proper place to carry it in. Whatever forms the necessary appendages of a traveller, may be legiti mately considered as baggage, and placed in his trunk for conveyance. However valuable an article of baggage may be, the owner is not bound to disclose such peculiar value to the carrier, unless inquiry be made. T

* Taylor et al. vs. Wetmores, 10 Ohio, 490.

† 10 Ohio, 496.

10 Ohio, 180, Case vs. Heffner.

§ 14 Ohio, 542.

13 Ohio, 239.

10 Ohio, 145, Jones vs. Voorhees.

COMMERCIAL COURT, MEMPHIS, TENN.-COMMERCIAL GUARANTEES.

A case of some interest to the mercantile community, was recently (December, 1846,) tried in the Commercial Court, at Memphis, Tennessee. The questions raised were upon the doctrines of commercial guarantees. A house at New Orleans shipped to this place goods for a merchant formerly in business here. The goods upon their arrival were detained by order of the sellers, until the purchaser should obtain a friend to guarantee payment of them. The guaranty was procured in writing. Its terms were substantially-"We understand Mr. H. J. proposes to do some business with you in the way of groceries, &c. We will be responsible with him for any contract he may make with you of this kind"—and it was addressed to the sellers. Testimony was given unnecessary here to detail. The questions chiefly discussed were, whether notice of the acceptance of the guaranty was given to the guarantor-whether such notice was necessary to fix his liability-and whether it was necessary before seeing the guarantor, to give him notice of the default of the principal debtor to pay.

For the plaintiff it was insisted-that this was an absolute guarantee, not a mere proposal or overture to become guarantor-that notice of acceptance is only necessary in the case of a proposal or overture, not in the case of an absolute undertaking that where the proposition or requisition of guaranty proceeds from the creditor to the guarantor, and thereupon the guaranty is given, notice of its acceptance is not necessary-that the omission of the creditor to give the guarantor notice of the default of the principal debtor to pay, is material only where such omission works an injury to the guarantor, and is not a pre-requisite to the right of action by the creditor against the guarantor. To sustain these positions of the plaintiff, were cited numerous British authorities and several recent decisions in the State of New York.

For the defendant it was argued that there was no proof of notice given to the guarantor, either of the acceptance of the guaranty or of the default of the principal debtor to pay-that in regard to the necessity of notice, the distinction taken for the plaintiff between absolute guarantees and overtures, was unsound -that in all cases of guarantees of debts to be subsequently contracted, notice of the acceptance of the guaranty must be given to the guarantor in reasonable time, otherwise he will not be fixed with liability-and that notice of the principal debtor's default to pay, must be given to the guarantor, as a pre-requisite to a right of action against him.

Several cases in the Supreme Court of the Union were cited on the part of the defendant, and it seemed to be agreed, that these cases hold in regard to guarantees of debts to be subsequently created, that notice to the guarantor of the acceptance of his guaranty, is indispensable to fix his liability.

Verdict went for the plaintiff, and mainly, it seemed, upon the ground that where the proposition for the guaranty proceeds from the creditor to the guaranty, therefore he gives the guaranty; notice of its acceptance from the creditor to the guarantor is unnecessary. Certainly it is prudent in the creditor, in all cases of guaranty, to give notice in reasonable time to the guarantor of its acceptance and of the extent to which it is acted on, and of the default of the principal debtor to pay.

H. G. Smith for the plaintiffs, Blume and Trezevant for the defendant.

FREIGHT DELIVERY OF MERCHANDISE.

In the Fourth District Court, (New Orleans,) Judge Strawbridge recently decided, (January, 1847,) in the case of Andrews & Dewey vs. Troisgros & Lampre, which was an action brought by the plaintiffs for the recovery of freight upon certain goods shipped from Havre, and consigned to the defendants-that a delivery of goods upon the levee, with notice to the consignee, was a sufficient delivery; and from the time of such discharge by the ship, the goods were at the risk of the consignee. Judgment accordingly.--Counsel for plaintiffs, Samuel C. Reed, Jr., Esq.; W. S. Upton, Esq., for the defence.

COMMERCIAL CHRONICLE AND REVIEW.

FEATURES OF COMMERCIAL AFFAIRS SINCE OUR LAST NUMBER-INFLUENCE OF RAILROAD SPECULATIONS IN ENGLAND-CONSUMPTION OF FOOD-BANK OF ENGLAND-BANK OF FRANCE CONDITION OF IRELAND-FOOD IMPORTED INTO ENGLAND FOR LAST THREE YEARS-EXPORTS OF BRITISH MANUFACTURES FOR LAST THREE YEARS-STATE OF COTTON TRADE OF GREAT BRITAIN FOR FIVE YEARS-BRITISH EXPORT OF CALICOES, PRINTS, AND YARN, FOR FIVE YEARS THE COTTON CROP-BULLION IN THE BANK OF ENGLAND-COMMERCIAL PROSPERITY OF THE UNITED STATES-INFLUENCE OF THE WAR ON FINANCIAL AFFAIRS-AFFAIRS OF THE UNITED STATES TREASURY-LOANS--IMPORT OF SPECIE-POPULARITY OF THE WAREHOUSING SYSTEM OF THE UNITED STATES-FORMS ADOPTED, ETC., ETC.

FINANCIAL and commercial affairs, since the date of our last, have evinced, in a more marked degree, the features which had been prominent for some previous months. Events in Europe are approaching a crisis, fraught with the most important consequences. In former numbers we have alluded to the great influence which the railroad mania of past years has exercised upon the condition of the people, and the results that influence has produced in extending employment, and enhancing the means of those whose share of the comforts and necessaries of life has hitherto been small. The modification of the English taxes, in 1842, and subsequently, was designed, according to the avowal of the government, to throw the burden of taxation upon property, and to relieve labor, by cheapening the prices of the articles it consumes, as food and other necessaries. This object has apparently been effected in England, as the large imports of foreign articles of food, besides grain, would show. Coming in aid of this, has been the large railroad expenditures, not only in Great Britain, but throughout Europe. The railroads, by their facility of intercourse, as well as through the direct payments made on their account, by governments and capitalists, to the laborers, have greatly improved the condition of the lower classes, and powerfully stimulated the consumption of food. In ordinary times, the effect of these measures would naturally be displayed in an increased demand for, and an advance in the prices of, food. It so happens, however, that simultaneous with this increased consumption, the crops of some of the coarser grains of the western states of Europe have been deficient, and in Ireland, a most awful visitation has overtaken the people, through the failure of the potato crop, on which millions of the wretched inhabitants depend alone for subsistence. The general effect of these circumstances has been, to compel very large purchases of food from eastern Europe and from America, and consequently, as is always the case in an unusual business, to disturb that financial repose which for so many years has been manifest, by causing important currents of the precious metals to set out of the customary channels for their employment. These events naturally would cause disquiet, but are aided by the enormous speculation in railroad shares. In the early fall a revulsion took place, which caused a great demand for money, and a rise in the rate of interest, in the cities of the north of Europe. In our January number we quoted the rates of interest on the continent, remarking that discrepancies so great could not continue long. As, for instance, when money is worth 5 to 6 per cent in Amsterdam and Antwerp, the Bank of France could not continue to discount at 4 per cent, without losing its specie; be

cause it afforded a profit of 1 to 13 per cent to German bankers to borrow money in Paris and reloan it in those cities; nevertheless the Bank continued to discount at that rate, until the low state of its bullion admonished it to raise the rate to 5 per cent-which was done in January. This would check the demand for re-discounts, but would not affect the export of silver for corn, the extent of which it is difficult to determine. The Count Darne estimated that the wants of France would be 44 days consumption, or 10,000,000 hectolitres, equal to 28,000,000 bushels, and worth $45,000,000. Of this, one-half was supposed to have been purchased, and consequently the remaining demand for corn would be at least $20,000,000. In this state of affairs, the whole of the bullion in the Bank of France would be absorbed. The amount held by it had fallen from 200,000,000 francs, in October, to 60,000,000 in January, when it obtained 20,000,000, in silver, from the Bank of England. If the estimates of the wants of France are correct, this whole sum will by no means suffice for the purchase of corn. Nevertheless the king, in his speech, stated that the public works would be continued by the government, an announcement that in some degree reassured the markets. In England, great fears of a revulsion were entertained, because of the difficulties in Ireland, and because of the wants of the continent, and attempts were made to run a parallel between the state of affairs now and that of the commencement of 1839. Independent of Ireland, the state of English affairs was never more sound. Its large imports of the necessaries of life grow out of the prosperity of the people, and do not arise from their distress, as in 1839. In January, 1839, the price of wheat in England was 79s. The highest point it has touched this year is 66s. 10d., or 17 per cent lower than in 1839. The consumption of foreign breadstuffs, in 1846, has not been greater than that of other necessaries. The quantity of food imported for eleven months, ending Dec. 5, has been as follows:

FOOD IMPORTED INTO ENGLAND, FOR CONSUMPTION, IN ELEVEN MONTHS.

This is an extraordinary result. The consumption of all these articles has increased prodigiously, and with that increase the amount of bullion in the Bank, large as it was, continued to swell in volume. It is observable that those articles which are luxuries were consumed in a greater degree than even necessary food. The exports of manufactures, in the same period, have been as follows, according to the declared value at the place of export :

These are the export values, and with this diminished export and enhanced import, exchanges were maintained to the close of the year, so as not to affect the export of coin. There is nothing in this state of affairs to lead to any great apprehensions for the coming year. The situation of Ireland is indeed awful, but if its inhabitants get food to eat, it must be at the expense of the British government, and purchased of the United States. The state of the exchanges between the United States and England is, and has been, such as to make the payment of large sums of specie necessary to the purchase of food. This is favorable to every interest of the United States, except cotton, which, in usual years, is found to be unfavorably influenced by the rise in food. The past six months is, however, an exception, inasmuch as that cotton has improved in common with food. It appears, nevertheless, that the consumption of cotton in England has declined. The following is a condensed statement of the cotton trade of Great Britain, for several years :

66

1842.

1843.

1844.

1845.

1846.

W't of yarn, spun, lbs. 345,751,444 437,589,441 445,577,480 484,766,487 495,033,109 66 exported.. 268,352,474 322,841,410 323,362,810 336,866,327 354,291,740 Consumed in G. Br'n, 77,398,970 114,748,031 122,214,670 157,900,160 140,741,360 These returns, which are from "Burns' Glance," indicate that the consumption, though less last year than in 1845, was double that of 1842! The particulars of the exports were as follows:

1842.

Plain calicoes, y'ds... 366,040,519 520,941,635 569,677,792 613,138,645 618,830,181 Prints... 236,012,641 257,287,304 313,111,445 310,850,697 267,084,797 Yarn,..... .lbs. 136,537,162 149,214,437 133,901,913 131,937,935 157,130,025 The consumption of cotton last year was near 500,000 bales in excess of the receipts, reducing the stock to that extent. Should the same degree of consumption take place this year, with a United States crop of 2,000,000 bales, the stock will be entirely exhausted before its close. Hence, to preserve the present stock, which is as small as is safe, a diminution of consumption, to the extent of 500,000 bales, must take place. How is this to be effected? At the close of the year 1838, the stocks of cotton in the ports had considerably increased, and, alarmed by the cry of short crops, spinners had laid in stocks ahead. One spinner laid in