—— — Part
II.
Constitution of Banks.
575
event of the bank faihng, or the note being dishonoured, the transferee, in order to preserve his right as against the transferor,
him notice and offer to return the note (q). Payment in forged or materially altered notes is in any case of no effect whatever, and the amount may be recovered (?'). And notes of a bank which, unknown to either party, had actually stopped payment, would stand on the same footing (s). give
1164. Interest is payable on a bank note, if payment is refused, from the date of demand, and in the case of a joint stock bank, which is being wound up, having stopped payment, a claim on the liquidator
is
demand
a sufficient
Sect.
generally.
interest,
(t).
Banks of Issue
3.
8-egt. 2.
must Bank Notes
in Scotland.
no
individual bank in Scotland possessing Note issue exclusive rights of issuing bank notes like the Bank of England Scotland, and Bank of Ireland. In 1845 all bankers claiming to issue notes in Scotland were required to give notice to the Commissioners of Stamps and Taxes in London of such claim. The Commissioners instituted inquiries whether such banker was lawfully issuing his own notes during the period from May 6, 1844, to May 1, 1845. If so, the Commissioners ascertained the average amount of notes of such bank in circulation during that period and certified that amount, and such banker was authorised to continue issuing to that amount plus the amount of gold and silver coin held at the head office or principal place of issue, subject to certain regulaIt was further enacted that after December 6, 1845, no tions {lb). banker should make or issue bank notes in Scotland except bankers who had obtained such certificate of their right to issue {a).
1165. There
1166. There
is
is
no statutory provision making Scotch bank notes
legal tender in that country, nor would a bank of issue appear to lose its right to issue notes by ceasing to exercise it for a time. The law as to licences is the same in Scotland as in England (&).
Sect. 4.
Bank
Points of difference,
of Ireland.
1167. The Bank of Ireland was established in 1781. The Act ^ote incorporating it prohibited the issue in Ireland of bank notes by any other company or partnership of more than six persons (c). In 1821 banking partnerships of any number of persons carrying on business not less than fifty miles from Dublin were authorised to issue bills or notes payable to bearer on demand {d). In 1825 the Guardians of Lichfield^ v. Greene (1857), 26 L. J. (ex.) 140. Jones v. Ryde (1814), 5 Taunt. 488, at p. 494. Compare Leeds and County Bank v. Walker (1883), 11 Q. B. D. 84, at p. 88. The Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 58, probably constitutes transfer a warranty that the note is genuine. (s) Compare Timmins v. Gibhins (1852), 18 Q. B. 722. {t) Re East of England Banking Go. (1868), 4 Ch. App. 14. {u) Bank Notes (Scotland) Act, 1845 (8 & 9 Vict. c. 38). (g) (r)
{a) Ibid.
55 Geo. 3, c. 184, s. 24 24 & 25 Vict. c. 91, s. 35. Statute 21 & 22 Geo. 3, c. 16 (Irish), s. 14. (d) Bank of Ireland Act, 1821 (1 & 2 Geo. 4, c. 72), s. (b)
in
(c)
6.
issue in
