THE LAW OF THE LAND. VI.
NEGOTIABLE PAPER. By WM. ARCH. McCLEAN.
TT has come to be considered in the com•*- mercial world that a purchaser of nego tiable paper bona fide for value, before maturity, without notice, can collect the face value thereof, in spite of everything under the sun. Let us see how far right the world is in this opinion. An eminent jurist in reviewing the law of negotiable paper gave a history of it, from which is gleaned the following. The law of bills of exchange owes much of its scientific and liberal character to the wisdom of the great jurist, Lord Mansfield. Sixteen years before the American Revolu tion, he held that bank-notes, though stolen, become the property of the person to whom they are bona fide delivered for value with out knowledge of the larceny. This prin ciple is later affirmed again and again as necessary to the preservation of the circu lation of all the paper in the country, and with it all its commerce. Later there was a departure from this principle in the noted English case of Gill v. Cubitt, in which it was held that if the holder for. value took it under circumstances which ought to have excited the suspicion of a prudent and careful man, he could not re cover. This case annoyed courts and in nocent holders for years, until it was sat upon, kicked, cuffed, and overruled, and the old doctrine of 1760 re-established, which is now the undisputed and settled law of Eng land and this country. Fully expressed-, it is that the holder of negotiable paper bona fide for value, before maturity, without notice, can recover it, not withstanding what may be the antecedent equities of the original parties, — the maker and payee, — and notwithstanding the holder
took it under circumstances which ought to excite the suspicion of a prudent man. In order to destroy the holder's title, it must be shown that he took the note mala fide. Upon the strength of the many decisions establishing the above law, we will scatter broadcast some free advice. You can buy commercial paper that is stolen. You can buy it from the thief, but do be careful not to be so inquisitive as to learn that it is stolen before you buy and pay for it. The more inquiries you make about such paper, if you want it, the more you are hurting your subsequent title to it. The least you know about negotiable paper that comes into your hands, the better. Some court has said commercial paper may be stolen; yet it is good when it has come into the hands of bona fide holders, although received from the thief; the holder is not bound to inquire how and by what means the paper came into the possession of the party trans ferring it to him. This may be encour aging to thieves, but it cannot be helped. It is the fault of the holders of negotiable paper, letting it lie around where it may be stolen. You may buy any negotiable note made by an intoxicated man without the least danger of losing your money, provided, of course, you have no knowledge of that fact or of the character of the note or how given. The maker may have been made drunk by the payee, may have been filled with liquor for the very purpose of obtaining a note. The innocent holder for value will collect such a note. The maker had no business to get drunk and sign the paper. There may have been no consideration
